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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

           Tuesday, August 7, 2018, Vol. 19, No. 155


                            Headlines


G R E E C E

OPAP SA: S&P Raises Issuer Credit Rating to 'BB-', Outlook Stable


I R E L A N D

ACCUNIA EUROPEAN III: Moody's Assigns B2 Rating to Class F Notes
ACCUNIA EUROPEAN III: Fitch Assigns 'B-sf' Rating to Cl. F Notes


L U X E M B O U R G

INTELSAT CONNECT: Moody's Assigns Ca Rating to New $1-Bil. Notes
INTELSAT CONNECT: S&P Rates New $1BB Sr. Unsec. Notes 'CCC-'
LSF10 IMPALA: S&P Raises First-Lien Term Loan Rating to 'B+'
TELENET INTERNATIONAL: Moody's Assigns Ba3 Term Loan Rating


N E T H E R L A N D S

KMG INT'L: Fitch Affirms B+ Long-Term Issuer Default Rating
STEINHOFF INT'L: Relocates Two Units to UK, Board Reshuffled


P O R T U G A L

BANCO COMMERCIAL: Fitch Hikes Preference Shares Rating to 'B-'


R U S S I A

FIRST COLLECTION: S&P Alters Outlook to Pos. & Affirms 'B-' ICR
RUSSIAN STANDARD: Moody's Alters Caa2 Ratings Outlook to Stable


S L O V A K   R E P U B L I C

ONE FASHION: Files for Bankruptcy, Operations to Continue


S P A I N

BANCO POPULAR: SRB Says Won't Compensate Investor Losses
FTPYME TDA CAM 4: S&P Affirms 'D (sf)' Rating on Class D Notes
LIBERBANK: Moody's Hikes LT Deposit Ratings to Ba3, Outlook Pos.
SANTANDER EMPRESAS 2: S&P Affirms D (sf) Rating on Class F Notes


T U R K E Y

GLOBAL LIMAN: Moody's Lowers CFR to B2, Outlook Stable


U N I T E D   K I N G D O M

AULDS: Puts Shops Into Liquidation as Part of Turnaround
DEBENHAMS PLC: S&P Cuts Issuer Credit Rating to 'B', Outlook Neg.
HOUSE OF FRASER: Settles Legal Dispute with Landlords
TRITON UK: S&P Assigns Preliminary 'B' ICR, Outlook Negative


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G R E E C E
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OPAP SA: S&P Raises Issuer Credit Rating to 'BB-', Outlook Stable
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S&P Global Ratings said that it raised to 'BB-' from 'B+' its
long-term issuer credit rating on Greece-based gaming company
OPAP S.A. The outlook is stable.

S&P said, "Our upgrade of OPAP stems primarily from our recent
improved country risk assessment of Greece (see "Country Risk
Assessments Update: July 2018," published on July 26, 2018). This
was due to recent actions taken to ease capital controls, in
place since May 2015, ahead of Greece's expected exit from the
European Stability Mechanism program in August 2018. As a result
of this revision, the Greece country risk assessment no longer
caps our business assessment and issuer credit rating on OPAP.

"Although our assessment of OPAP's stand-alone credit profile
(SACP) has improved to 'bb' from 'b+', we cap the rating on OPAP
at our assessment of the group credit profile of its main
shareholder (33% of ownership), Czech Republic-based Sazka Group,
which, in our view, has a weaker credit profile owing to its more
leveraged capital structure. Despite its sizable free float, we
believe that OPAP is not insulated from Sazka Group given that no
other shareholder owns more than 5%, Sazka relies significantly
on OPAP's cash flows, and it has nine out of 13 seats on OPAP's
board. This constrains our long-term rating by one notch at
'BB-'.

"OPAP's strong brand awareness and its exclusive licenses to
distribute its gaming products in Greece continue to support our
assessment of the company's business. OPAP currently has licenses
to operate video lottery terminals (VLTs) until 2035; numerical
lotteries, sports betting, and online gaming until 2030; and
instant lotteries until 2026. The exclusivity and long-term
nature of these contracts strengthen our assessment of OPAP's
business. In the fourth quarter (Q4) of 2017, the Greek
government introduced an updated VLT framework in order to reduce
the number of VLTs allowed in Greece from 35,000 to 25,000 by
end-2019, while increasing the license duration from 10 to 18
years. Under the initial framework, OPAP would have only directly
operated 16,500 machines while sub-concessioners would have
operated 18,500. However, under the new framework, OPAP will
directly operate all 25,000 machines. Overall, we see this change
as positive for OPAP because it secures its exclusive rights for
an additional period and enhances long-term visibility. OPAP aims
to operate more than 20,000 of these VLT machines by end-2018.

"We also acknowledge OPAP's substantial EBITDA of more than
EUR300 million, compared with other Europe-based rated gaming
companies such as Intralot, Gamenet, and SnaiTech, and its
ability to generate high operating margins thanks to ongoing cost
controls across different business lines."

OPAP is highly concentrated geographically, with about 95% of
EBITDA coming from Greece, compared with Intralot (another rated
Greek-based gaming company, which derives almost all its revenues
from outside of Greece). S&P sees this as a substantial
constraint on OPAP's business assessment, given the high exposure
to one single regulatory economic and political framework, which
has historically been very unstable.

Greece currently has one of the highest gaming taxations in
Europe (35% over gross gaming revenue), which increased in 2016
from 29%. Although we do not view any further tax increase as
likely in the near future, S&P sees potential tax increases in
the longer term as a significant risk that could negatively
impact OPAP's EBITDA margin, if the government decides to pursue
such an opportunity.

At end-2017, OPAP reported about 4% revenue growth while the
EBITDA margin decreased to 21% from 22% due to higher IT and
marketing expenses related to the VLT rollout. As a result of the
issuance of a EUR200 million retail bond and other new bank
loans, the gross debt increased by approximately EUR300 million
during 2017, leading to a debt-to-EBITDA ratio of 2.2x and free
operating cash flow (FOCF) to debt of 22%. Revenues in first
quarter (Q1) 2018 grew 5.1% from Q1 2017, while the EBITDA margin
increased to about 23% thanks to implemented cost controls. In
addition to the increased EBITDA, OPAP recently repaid EUR75
million of bank loans, leading to an expected leverage of 1.7x by
end-2018.

S&P said, "In our assessment of OPAP's credit quality, we
incorporate our view of the company's aggressive financial
policy, since the company uses the entirety of its free cash flow
for dividend distribution, leading to a negative discretionary
cash flow (DCF)-to-debt ratio on a weighted-average basis. We
also factor into our assessment OPAP's ability to be rated above
the sovereign, to which it has material exposure (~95% of total
EBITDA)."

S&P's base case assumes:

-- Greece's GDP growth of 2% in 2018 and 2.7% in 2019 and
    unemployment reduction to below 22%. These recovery prospects
    in Greece should contribute positively to OPAP's revenue
    growth over the following two to three years.

-- Revenue growth of about 10% in 2018 and 7%-8% in 2019, mainly
    from the deployment of the 25,000 VLTs, which we expect will
    be operational by the end of 2019.

-- Adjusted EBITDA margin to increase in 2018 to about 23%
    thanks to cost controls implemented across different business
    divisions.

-- Working capital changes to be fairly neutral over the next
    two years.

-- Capital expenditure (capex) of about EUR60 million in 2018
    mainly related to the VLT rollout, while we expect this
    figure will normalize at about EUR20 million in 2019.

-- Dividends of about EUR160 million for 2018 and EUR320
    million-EUR340 million in 2019 considering the company's
    historical dividend distribution and our expectation that it
    will continue the same high dividend payout.

-- No further debt repayment in addition to EUR75 million repaid
    in the first half of 2018.

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

-- Adjusted debt to EBITDA of 1.7x in 2018, decreasing to about
    1.4x in 2019 and onward.

-- Adjusted FOCF to debt of 31%-33% in 2018, increasing to above
    45% by 2019.

-- Adjusted DCF to debt of 5%-7% in 2018, but slightly negative
    in 2019 and onward.

S&P said, "The stable outlook reflects our expectation that OPAP
will continue to show good operating performance over the next 12
months, with revenues growing by about 10% and EBITDA margin
increasing to approximately 23%. This will be mainly driven by
the progressive roll-out of VLTs, which should lead to an
adjusted debt-to-EBITDA ratio of 1.6x-1.8x. Our base case also
foresees that the creditworthiness of the parent entity, Sazka
Group, will remain unchanged over the same period and that
Greece's economic conditions will be positive for OPAP.

"We could raise the rating on OPAP if our assessment of the
parent entity's credit quality improved. This would need to be
accompanied by OPAP's strong operating performance in line with
our base case, leading to an adjusted debt-to-EBITDA ratio below
2.0x and adequate liquidity in line with our base case.

"We could consider a negative rating action if we perceived a
deterioration of the parent entity's creditworthiness due to
operational setbacks or increased leverage. We could also lower
our rating on OPAP if the likelihood of Greece leaving the EU
increased again to above one-in-three, if materially weaker
economic conditions in Greece significantly impaired OPAP's
liquidity from our base case, or if OPAP incurred a sizable debt-
financed merger or acquisition, leading to an adjusted debt-to-
EBITDA ratio above 3.0x."


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I R E L A N D
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ACCUNIA EUROPEAN III: Moody's Assigns B2 Rating to Class F Notes
----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by Accunia European
CLO III Designated Activity Company:

EUR216,000,000 Class A Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aaa (sf)

EUR20,000,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aa2 (sf)

EUR12,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2031,
Definitive Rating Assigned Aa2 (sf)

EUR25,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned A2 (sf)

EUR19,500,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned Baa2 (sf)

EUR21,750,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned Ba2 (sf)

EUR10,200,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

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

The Issuer is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured loans and senior secured
bonds and up to 10% of the portfolio may consist of unsecured
loans, second-lien loans, mezzanine obligations and high yield
bonds. The portfolio is expected to be approximately 82% ramped
up as of the closing date and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe. The
remaining of the portfolio will be acquired during the six months
expected ramp-up period.

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

In addition to the seven classes of notes rated by Moody's, the
Issuer will issue EUR37,300,000 of subordinated notes, which will
not be rated.

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

Methodology Underlying the Rating Action:

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

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

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

Loss and Cash Flow Analysis:

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

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

Par amount: EUR 350,000,000

Diversity Score: 45

Weighted Average Rating Factor (WARF): 2760

Weighted Average Spread (WAS): 3.40%

Weighted Average Recovery Rate (WARR): 42.75%

Weighted Average Life (WAL): 8.5 years

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

Stress Scenarios:

Together with the set of modelling assumptions, Moody's conducted
additional sensitivity analysis, which was an important 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 each of the rated notes (shown in terms of the
number of notch difference versus the current model output,
whereby a negative difference corresponds to higher expected
losses), holding all other factors equal:

Percentage Change in WARF: WARF + 15% (to 3174 from 2760)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: 0

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

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

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: -1

Percentage Change in WARF: WARF +30% (to 3588 from 2760)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: -1

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

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

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -3

Class E Senior Secured Deferrable Floating Rate Notes: -2

Class F Senior Secured Deferrable Floating Rate Notes: -3


ACCUNIA EUROPEAN III: Fitch Assigns 'B-sf' Rating to Cl. F Notes
----------------------------------------------------------------
Fitch Ratings has assigned Accunia European CLO III DAC final
ratings, as follows:

EUR216 million Class A: 'AAAsf'; Outlook Stable

EUR20 million Class B-1: 'AAsf'; Outlook Stable

EUR12 million Class B-2: 'AAsf'; Outlook Stable

EUR25 million Class C: 'Asf'; Outlook Stable

EUR19.5 million Class D: 'BBBsf'; Outlook Stable

EUR21.75 million Class E: 'BB-sf'; Outlook Stable

EUR10.2 million Class F: 'B-sf'; Outlook Stable

EUR37.3 million subordinated notes: not rated

Accunia European CLO III DAC (the issuer) is a securitisation of
mainly senior secured loans and bonds (at least 90%) with a
component of senior unsecured, mezzanine, and second-lien assets.
A total note issuance of EUR361.75 million is being used to fund
a portfolio with a target par of EUR350 million. The portfolio is
managed by Accunia Fondsmaeglerselskab A/S. The CLO envisages a
four-year reinvestment period and an 8.5-year weighted average
life (WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch considers the average credit quality of obligors to be in
the 'B' range. The Fitch weighted average rating factor (WARF) of
the identified portfolio is 32.6.

High Recovery Expectations

At least 90% of the portfolio comprises senior secured
obligations. Recovery prospects for these assets are typically
more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch weighted average recovery rating (WARR) of the
identified portfolio is 66%.

Diversified Asset Portfolio

The transaction features different Fitch test matrices with
different allowances for exposure to the 10 largest obligors
(maximum 16% and 26.5%). The manager can then interpolate between
these matrices. The transaction also includes limits on maximum
industry exposure based on Fitch industry definitions. The
maximum exposure to the three largest (Fitch-defined) industries
in the portfolio is covenanted at 40%. These covenants ensure
that the asset portfolio will not be exposed to excessive
concentration.

Portfolio Management

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

Cash Flow Analysis

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

RATING SENSITIVITIES

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

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

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

DATA ADEQUACY

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

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

SOURCES OF INFORMATION

The information here was used in the analysis.

  - Current portfolio asset-by-asset data provided by Citigroup
Global Markets Limited as at July 17, 2018

  - Offering circular provided by Citigroup Global Markets
Limited as at August 2, 2018

REPRESENTATIONS AND WARRANTIES

A description of the transaction's representations, warranties
and enforcement mechanisms (RW&Es) that are disclosed in the
offering document and which relate to the underlying asset pool
was not prepared for this transaction. Offering documents for
EMEA CLO transactions do not typically include RW&Es that are
available to investors and that relate to the asset pool
underlying the security. Therefore, Fitch credit reports for EMEA
CLO transactions will not typically include descriptions of
RW&Es. For further information, see Fitch's Special Report titled
"Representations, Warranties and Enforcement Mechanisms in Global
Structured Finance Transactions," dated May 31, 2016.


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L U X E M B O U R G
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INTELSAT CONNECT: Moody's Assigns Ca Rating to New $1-Bil. Notes
----------------------------------------------------------------
Moody's Investors Service assigned a Ca rating to Intelsat
Connect Finance S.A. new $1 billion senior unsecured notes issue.
Since proceeds will be used for refinance purposes, the
transaction is credit metric neutral and the new notes are rated
at the same Ca level as the notes they refinance. Ratings for
notes that are refinanced in their entirety will be withdrawn in
due course. The ratings are contingent upon Moody's review of
final documentation and no material change in previously advised
terms and conditions.

Intelsat Connect Finance S.A. is a subsidiary of Intelsat
(Luxembourg) S.A. Consistent with Moody's general practice of
locating corporate-level ratings at the senior most legal entity
in the corporate structure for which Moody's maintains debt
instrument ratings, Intelsat's corporate family rating (CFR),
probability of default rating (PDR), speculative grade liquidity
rating (SGL) and ratings outlook, are maintained at Intelsat
(Luxembourg) S.A.

Intelsat S.A. (Intelsat) is the senior-most entity in the
Intelsat group of companies and is the only company in the family
issuing financial statements. Since Intelsat guarantees debts at
its subsidiary, Intelsat (Luxembourg) S.A. and there is a
sequential flow of guarantees via the various other holding
companies through to Intelsat Jackson Holdings S.A. (Jackson),
Moody's relies on Intelsat S.A.'s financial statements.

The following summarizes Moody's ratings and the rating actions
for Intelsat:

Issuer: Intelsat Connect Finance S.A.

Assignments:

Gtd Senior Unsecured Regular Bond/Debenture, assigned Ca (LGD4)

Issuer: Intelsat (Luxembourg) S.A.

Corporate Family Rating, Unchanged at Caa2

Probability of Default Rating, Unchanged at Caa3-PD

Speculative Grade Liquidity Rating, Unchanged at SGL-3

Outlook, Unchanged at Stable

GTD Senior Unsecured Regular Bond/Debenture, Unchanged at Ca
(LGD5)

Issuer: Intelsat Connect Finance S.A.

GTD Senior Unsecured Regular Bond/Debenture, Unchanged at Ca
(LGD4)

Issuer: Intelsat Jackson Holdings S.A.

GTD Senior Secured Bank Credit Facilities, Unchanged at B1 (LGD1)

GTD Senior Secured Regular Bond/Debenture, Unchanged at B1 (LGD1)

GTD Senior Unsecured Regular Bond/Debenture, Unchanged at Caa2
(LGD3)

RATINGS RATIONALE

Intelsat's (Luxembourg) S.A.'s Caa2 CFR is based primarily on
Moody's assessment that the company's capital structure is not
sustainable, with elevated leverage and the potential of excess
supply and sustained cash flow pressure stemming from evolving
industry fundamentals combining to increase the potential of debt
restructurings, that may be assessed as constituting distressed
exchanges and limited defaults. Moody's-adjusted debt/EBITDA
exceeds 9x, and evolving fundamentals cause cash flow visibility
beyond the next year or so to be poor. Intelsat's rating benefits
from the company's good scale, large revenue backlog, and
sufficient liquidity to navigate through the next year.

Rating Outlook

The stable outlook is based on Moody's assessment that there is a
limited potential of near term material liability management
transactions which could be assessed as limited defaults.

What Could Change the Rating - Up

The rating could be considered for upgrade if, along with
expectations of solid industry fundamentals, good liquidity, and
clarity on capital structure planning, Moody's anticipated:

  - Leverage of debt/EBITDA normalizing below 6x on a sustained
basis;

  - Cash flow self-sustainability over the life cycle of the
company's satellite fleet.

What Could Change the Rating - Down

The rating could be considered for downgrade if, Moody's
expected:

  -- Near-term defaults; or

  -- Substantial and sustained free cash flow deficits; or

  -- Less than adequate liquidity arrangements.

The principal methodology used in this rating was Communications
Infrastructure Industry published in September 2017.

Headquartered in Luxembourg, and with administrative offices in
McLean, VA, Intelsat S.A. (Intelsat) is one of the three largest
fixed satellite services operators in the world. Annual revenues
are expected to be approximately $2.2 billion with EBITDA of
approximately $1.6 billion.


INTELSAT CONNECT: S&P Rates New $1BB Sr. Unsec. Notes 'CCC-'
------------------------------------------------------------
S&P Global Ratings assigned its 'CCC-' issue-level rating and '6'
recovery rating to Luxembourg-based fixed satellite service
provider Intelsat S.A. subsidiary Intelsat Connect Finance S.A.'s
(ICF's) proposed $1 billion senior unsecured notes due in 2023.
The '6' recovery rating indicates S&P's expectation for
negligible (0%-10%; rounded estimate: 0%) recovery for lenders in
the event of a payment default. The company plans to use the
proceeds from the proposed notes to repurchase its existing ICF
12.5% senior notes due 2022 ($732 million outstanding) and to
repay a portion of Intelsat Jackson S.A.'s indebtedness.

S&P said, "The 'CCC+' issuer credit rating and negative outlook
on Intelsat S.A. remain unchanged, reflecting our view that
Intelsat's capital structure appears unsustainable over the long
term since the company depends on favorable business and
financial conditions to meet its financial commitments. Despite
the proposed transaction, the company will continue to have
sizable upcoming debt maturities, with $2.2 billion of notes due
in 2020 and $1.6 billion of notes due in 2021. We expect
Intelsat's leverage will remain elevated in the mid-8x area on
modest EBITDA growth over the next few years, with minimal free
operating cash flow relative to its heavy debt burden of about
$14 billion."


LSF10 IMPALA: S&P Raises First-Lien Term Loan Rating to 'B+'
------------------------------------------------------------
S&P Global Ratings said that it has raised its issue rating on
LSF10 Impala Investments S.a.r.l.'s first-lien term loan to 'B+'
from 'B' and revised upward its recovery rating to '2' (recovery
expectation: 70%) from '3' (55% recovery). At the same time, S&P
Global Ratings assigned its 'CCC+' issue rating and '6' recovery
rating to the EUR100 million second-lien term loan to be issued
by LSF10 Impala Investments.

The rating actions follow a change in the debt structure. The
first-lien term loan B, initially intended to be EUR580 million,
has been revised downward to EUR480 million, with a EUR100
million second-lien term loan tranche added instead.

Private equity firm Lone Star Funds has acquired Imerys Roofing
and is refinancing its debt. As part of the refinancing, LSF10
Impala Investments will issue a new EUR90 million revolving
credit facility (RCF), a EUR480 million first-lien term loan, and
a EUR100 million second-lien term loan.

KEY ANALYTICAL FACTORS

S&P said, "We rate LSF10 Impala Investments' EUR480 million
senior secured first-lien term loan at 'B+' with a recovery
rating of '2'. The upgrade is supported by the lower amount of
first-lien debt to be repaid in the event of a default. That
said, we note that the recovery prospects are now at the lower
end of the '2' recovery rating category, at 70%.

"At the same time, we rate the proposed EUR100 million second-
lien debt at 'CCC+'. The recovery rating is '6', reflecting the
subordinated nature of the instrument."

The loan will be guaranteed by group companies generating at
least 80% of EBITDA. These companies will also pledge their
shares to secure the loan.

The loan includes customary incurrence covenants and exceptions,
but no maintenance covenants.

S&P said, "We value LSF10 Impala Investments as a going concern.
We base this on its leading position in the French clay roof
tiles market, and on a rationalized marketplace following the
extensive operational restructuring of some competitors during
the last recession.

"Our default scenario assumes similar market conditions and
operating impact to those during the last recession and
management's own stress case. Our default scenario also takes
into account financial restructurings in the building materials
sector, including LSF10 Impala Investments' two main competitors,
Terreal and Braas Monier."

SIMULATED DEFAULT ASSUMPTIONS

-- Year of default: 2021
-- Minimum capital expenditure (capex) (% of average sales over
    past three years): 6.0%
-- Cyclicality adjustment factor: +10% (standard sector
    assumption for building material sector)
-- Operational adjustment: +10% (to reflect overall capex)
-- Emergence EBITDA after recovery adjustments: about EUR87
    million
-- Implied enterprise value multiple: 5.5x
-- Jurisdiction: France

SIMPLIFIED WATERFALL

-- Gross enterprise value at default: about EUR478 million
-- Administrative costs: 5%
-- Net value available to debtors: EUR454 million
-- Priority claims: about EUR34 million
-- First-lien claims (1): EUR577 million
-- Recovery expectation (2): 70% (recovery rating: '2')
-- Second-lien debt claims: EUR105.1 million
-- Recovery expectation: 0%-10% (recovery rating: '6')

(1) Assumes a EUR90 million RCF will be 85% drawn at the time of
default/restructuring. All debt amounts include six months of
prepetition interest.
(2) Rounded down to the nearest 5%.


TELENET INTERNATIONAL: Moody's Assigns Ba3 Term Loan Rating
------------------------------------------------------------
Moody's Investors Service assigned Ba3 ratings to the Term Loan
AO2 being issued by Telenet International Finance S.a r.l. and
term loan AN2 being issued by Telenet Financing USD LLC, the
subsidiaries of Telenet Group Holding NV. The aggregated loan
amount for these term loans is EUR610 million. Telenet's
corporate family rating of Ba3, probability of default rating of
Ba3-PD, and all the existing debt instrument ratings of Ba3 at
Telenet's rated subsidiaries remain unchanged. The outlook on all
ratings is stable.

This debt issuance will increase Moody's adjusted gross debt/
EBITDA for Telenet to around 4.6x (pro-forma), based on the last
twelve months of EBITDA as of June 30, 2018, compared to around
4.1x prior to the transaction. The proceeds from the issuance
will be used to fund extraordinary dividends of EUR600 million
announced by Telenet at its half year results for 2018.

"We expect Moody's adjusted leverage for Telenet to remain around
4.5x-5.0x on a sustained basis. While the company's moderate
leverage as of H12018 has provided it with reasonable headroom to
execute discretionary shareholder returns comprising of EUR600
million of special dividends in addition to the EUR300 million of
share buyback program, we do not expect significant debt-financed
acquisitions over at least the next 12 months," says Gunjan
Dixit, a Moody's Vice President -- Senior Credit Officer and lead
analyst for Telenet.

RATINGS RATIONALE

The Ba3 ratings for the new term loan add-on tranches, AO2 and
AN2, are in line with the existing Ba3 rated senior secured bank
debt as the tranches benefit from the same security and guarantee
as the existing rated senior secured debt. Telenet' s Ba3 CFR
reflects Moody's expectation that the company will continue to
manage its leverage within its own defined leverage framework of
a net total leverage of 3.5x-4.5x. This ratio stood at 3.8x as of
June 30, 2018 compared with the company's Moody's-adjusted gross
debt/EBITDA of 4.0x.

On June 25, 2018, Telenet announced the initiation of a EUR300
million share buyback program under which Telenet may repurchase
from time to time up to 7.5 million shares until June 2019. For
the period between April to June 2019, the execution of any
remaining share buyback program will be subject to further
authorization at the shareholders' meeting. Telenet will fund
this program with its cash as well as drawings under its
revolving credit facilities. Additionally, the board of Directors
of Telenet have announced on August 1, 2018 that the company will
execute EUR600 million of extraordinary dividend payments. These
dividend payments will be funded by the additional bank debt
being raised.

Pro-forma for the debt raise, Moody's adjusted gross leverage for
Telenet will increase from around 4.1x to 4.6x. If the share
buybacks are majority funded via drawings under the revolving
lines, it may also add slightly to the company's leverage.
Despite these shareholder returns, Moody's expects the company's
leverage to remain well within the parameters for its Ba3 rating.

Given the potential for strong EBITDA growth in 2018 (7%-8% on a
rebased basis), the company would have build significant capacity
under its leverage ratio, in the absence of shareholder returns
or M&A. Telenet's board of directors recent decision to return
money to shareholders will use a meaningful portion of this
headroom. However, the company's CEO has from time to time
expressed the company's interest in acquiring VOO, a Belgian
cable operator owned by Nethys. Moody's does not expect this to
materialize in the near term. However, should this occur, the
agency would expect Telenet to structure funding for it such that
its leverage falls within its financial policy leverage ratio
range.

Telenet's rating is constrained by its weak revenue growth
prospects (revenues declined by year-on-year -1% in H12018 on a
rebased basis) affected by the lower mobile and handset revenue
as well as the intense competition in the residential market. Its
performance is also negatively affected by the regulation imposed
on cable operators in Belgium to give wholesale access to their
TV and broadband services to alternative providers (such as
Orange [Baa1 stable], Belgian business, previously Mobistar).

RATIONALE FOR STABLE OUTLOOK

The stable rating outlook reflects Moody's expectation that
Telenet's operating performance will continue to develop broadly
in line with the company's guidance, supported by an increase in
multiple play, premium entertainment and B2B penetration and over
time by the successful integration of BASE and SFR BeLux.

WHAT COULD CHANGE THE RATING - UP/DOWN

Upward rating pressure could develop if (1) the company's
operating performance is solid; (2) it demonstrates clear
commitment to maintaining its gross debt to EBITDA ratio below
4.25x (as calculated by Moody's) and its Moody's adjusted CFO/
Debt ratio sustainably trends towards 20%; and (3) its Moody's
adjusted free cash flow ("FCF")/ Gross Debt ratio improves
towards 10%. However, upward rating pressure is constrained by
the fact that Telenet is majority owned by Liberty Global, which
has a more aggressive financial policy.

Downward ratings pressure could arise if: (1) Moody's adjusted
Gross Debt/ EBITDA exceeds 5.25x on a sustained basis; (2) the
company experiences a marked deterioration in operating
performance; and (3) Moody's adjusted CFO/ Debt falls to below
12% and/or it begins to generate negative free cash flow (after
capex and dividends) on a sustained basis.

The principal methodology used in these ratings was Global Pay
Television - Cable and Direct-to-Home Satellite Operators
published in January 2017.

Headquartered in Mechelen, Belgium, Telenet Group Holding NV is
the largest provider of cable communications services in Belgium.
In FY 2017, the company generated EUR2.5 billion of revenues and
EUR1.2 billion of EBITDA.


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


KMG INT'L: Fitch Affirms B+ Long-Term Issuer Default Rating
-----------------------------------------------------------
Fitch Ratings has affirmed KMG International NV's (KMGI) Long-
Term Issuer Default Rating (IDR) at 'B+'. The Outlook on the
rating is Stable. The IDR has been removed from Rating Watch
Negative (RWN).

The affirmation follows the announcement by JSC National Company
KazMunayGas (NC KMG, BBB-/Stable) that the deal to sell a 51%
stake in KMGI to CEFC China Energy (CEFC) will not be finalised
and KMGI will remain fully owned by NC KMG. KMGI's 'B+' rating
remains unchanged due to improvement in its standalone credit
profile, but weakening strategic and legal ties between the
company and NC KMG.

The rating captures risks stemming from litigation brought
forward in May 2016 by Romania's Directorate for Combating
Organised Crime and Terrorism (DIICOT), where KMGI, Rompetrol
Rafinare SA (RRC) and Oilfield Exploration Business Solutions
were summoned as civil liability parties in a case under
investigation by DIICOT. The investigation may have significant
negative contingent financial consequences for KMGI, but the
timing of the investigation resolution is highly uncertain. The
presence of DIICOT case, double seizure of RRC's assets and high
share of short-term credit lines in the debt structure adversely
affect the company's rating.

KEY RATING DRIVERS

Sale to CEFC Cancelled: In July 2018, NC KMG announced that the
agreement to sell 51% of KMGI to CEFC had expired and the deal
will not be extended. KMGI will remain a wholly owned subsidiary
of NC KMG.

'B-' Standalone Profile: Fitch considers KMGI's credit profile
excluding NC KMG's support to have improved to 'B-' from 'CCC'.
The company's profile is negatively affected by the dominant
share of short-term credit facilities in its debt portfolio (59%
of total debt at end-June 2018), most of which need to be rolled
over annually, contingent risk from the DIICOT investigation,
double seizure on RRC, and the lowest refining margins and
throughput volumes among rated European peers. Through-the-cycle
net leverage below 3x, some diversification into fuel marketing
and the high white products yield of KMGI's Petromidia refinery
are positive for the rating.

Weakening Ties with Parent: Fitch reduced its uplift to KMGI's
standalone rating to two notches from three. Fitch takes a
bottom-up approach due to the presence of moderate legal,
operational and strategic ties between KMGI and its parent, NC
KMG, which has a stronger credit profile. In Fitch's view, the
links between KMGI and NC KMG have softened, as shown by NC KMG's
intention to sell the majority stake in KMGI. KMGI remains a
material subsidiary under NC KMG's Eurobonds and therefore
default on its debt could trigger cross-default on NC KMG's
notes. However, this clause will not be applicable if NC KMG
decides to forfeit control over the subsidiary.

KMGI's USD200 million credit facility guaranteed by NC KMG
expires in August 2019, and KMGI will not benefit from debt
guarantees by its parent thereafter. Fitch believes that KMGI, NC
KMG's only large international asset, is not critical to the
parent's strategy and could be sold.

Improving Operations and Financials: KMGI's results were
substantially stronger in 2015-2017 than in 2013-2014. Fitch-
adjusted EBITDA rose 42% yoy to USD230 million in 2017 due to the
improved operational plant efficiency, higher sales volumes in
the retail segment, healthy European refining margins and cost
reduction. Cash flow generation and cash balances were also
boosted by a temporary working capital inflow. Funds from
operations (FFO) adjusted net leverage fell to 1.0x in 2017 from
2.9x in 2016 due to the one-off cash increase and higher FFO
generation. KMGI's FFO leverage in 2013-2014 was at distressed
levels.

Uncertain Outcome of DIICOT Investigation: In 2016 DIICOT
launched an investigation against 14 people in connection with
the privatisation of the Petromidia refinery. KMGI, RRC, and
Oilfield Exploration Business Solutions are parties in the
investigation. DIICOT seized KMGI's assets of RON3 billion
(USD770 million), including KMGI's key asset, the Petromidia
refinery. Fitch understands from management that the seizure has
no immediate impact on KMGI's day-to-day operations. Fitch cannot
estimate the timing of the investigation conclusion or its
outcome. Penalties paid by KMGI due to the investigation may lead
to a lower rating, but this scenario is not its base case.

Potential Memorandum of Understanding Costs: The Romanian
government and KMGI have signed a memorandum of understanding
(MoU) envisaging a purchase of 27% of RRC's shares by the
company, which may cost around USD200 million, and foundation of
an investment fund with USD150 million equity capital and maximum
debt to equity ratio of 4x. The 2013 MoU was signed to settle
litigation begun by the Romanian Ministry of Public Finance in
2010, which froze most of RRC's assets. If the MoU is
implemented, Fitch would expect NC KMG to support KMGI with
acquisition of the RRC shares, while the fund's investments will
be covered by KMGI's capex programme.

DERIVATION SUMMARY

KMGI's closest peer is Corral Petroleum Holding (CPH; B+/Stable).
CPH operates two medium-sized refineries in Sweden with total
capacity of 345kbbl/d and a retail network, including 341 Preem-
branded stations and 165 diesel truck stops. KMGI operates one
large refinery with roughly 100kbbl/d capacity, another 10kbbl/d
refinery, a small petrochemical plant, a trading business
servicing NC KMG group and a retail chain of over 1,100 gas
stations. Fitch expects KMGI to have lower leverage than CPH in
the next three years, but Fitch views CPH's credit profile as
stronger due to larger refining capacity and a more comfortable
liquidity position.

KMGI lags behind PKN ORLEN S.A. (BBB-/Stable), MOL Hungarian Oil
and Gas Company Plc (BBB-/Stable) and Turkiye Petrol Rafinerileri
A.S. (Tupras) (BB+/Negative) in refining capacity, and has weaker
integration with petrochemical and upstream assets.

KMGI's 'B+' rating incorporates a two-notch uplift from the
standalone credit profile of 'B-'. Fitch takes a bottom-up
approach due to the presence of moderate legal, operational and
strategic ties between KMGI and its parent, NC KMG, which has a
stronger credit profile.

KEY ASSUMPTIONS

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

  - Gross refining margins of USD3.6/bbl in 2018 and USD4.0/bbl
thereafter

  - Increase in EBITDA generation of the marketing segment

  - Large working capital cash outflow in 2018 counterbalancing
the one-off inflow in 2017

  - Average 2018-2021 capex equal to USD110 million annually

  - No dividend payments in 2018-2021

RATING SENSITIVITIES

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

  - FFO adjusted net leverage below 2.5x on a sustained basis
coupled with higher available amounts under long-term credit
facilities and improvement in liquidity position

  - Resolution of DIICOT litigation without material negative
consequences for KMGI

  - Evidence of stronger ties between NC KMG and KMGI

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

  - Resolution of DIICOT litigation that results in substantial
financial liabilities for KMGI not covered by its shareholders

  - Deterioration in KMGI's ability to refinance debt

  - FFO adjusted net leverage above 4.5x on a sustained basis

  - Weaker ties with NC KMG leading to a reassessment of the two-
notch uplift to the standalone IDR for parental support

LIQUIDITY

Limited Liquidity: KMGI has relied on credit facility rollover to
cover its liquidity requirements at least over the last eight
years and has a long record of successful refinancing with its
relationship banks. It maintains a substantial amount of short-
term uncommitted credit lines, but Fitch does not consider them a
source of liquidity. A high proportion of short-term borrowings
in the company's debt portfolio is negative for the rating.

At June 30, 2018 KMGI's short-term debt was USD137 million
against an unrestricted cash balance of USD168 million. Its
short-term debt was temporarily low as the company recently
extended its credit facilities. KMGI's only long-term committed
USD240 million revolving credit facility is fully drawn.


STEINHOFF INT'L: Relocates Two Units to UK, Board Reshuffled
------------------------------------------------------------
Janice Kew at Bloomberg News reports that Steinhoff International
Holdings NV relocated two units at the heart of its accounting
scandal to the U.K. as the retailer embarks on a new phase of
recovery after reorganizing debt.

According to Bloomberg, Steinhoff Europe AG and Steinhoff Finance
Holdings GmbH will move from Austria to Cheltenham, England --
where the South African company's U.K. business is based.  The
supervisory boards of both units have been redrawn, with
Steinhoff Chief Financial Officer Philip Dieperink and Commercial
Director Louis du Preez holding positions at the Europe division,
Bloomberg states.

Joining them is Richard Heis, a corporate restructuring
specialist previously at KPMG LLP who Steinhoff hired in
February, Bloomberg notes.

Steinhoff won support in July from a majority of creditors to
restructure EUR9.4 billion (US$11 billion) of debt -- a crucial
step toward its potential survival, Bloomberg recounts.  Auditors
at PwC are investigating the company's accounts with a particular
focus on off-balance-sheet and third-party deals, and aim to
publish a report by the end of the year, Bloomberg discloses.

The company has said that the financial irregularities it
reported in December are likely to have been focused on the
European businesses, which also include Conforama in France, Pep
stores in Eastern Europe and Hemisphere properties, Bloomberg
relates.

Steinhoff International Holdings NV's registered office is
located in Amsterdam, Netherlands.


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


BANCO COMMERCIAL: Fitch Hikes Preference Shares Rating to 'B-'
--------------------------------------------------------------
Fitch Ratings has upgraded Banco Comercial Portugues S.A.'s (BCP)
Series D (ISIN: XS0231958520) preference shares' rating to 'B-'
from 'CCC-'.

KEY RATING DRIVERS

The upgrade follows the resumption of coupon payments by BCP on
July 13, 2018 and reflects the renewed performing status of the
issue. The rating of BCP's Series D preference shares is three
notches below BCP's 'bb-' Viability Rating (VR). The notching
reflects higher expected loss severity and non-performance risk
relative to senior unsecured creditors.

RATING SENSITIVITIES

The ratings of subordinated debt and other hybrid capital issued
by BCP are primarily sensitive to a change in the bank's VR.
Subordinated and other hybrid instruments' ratings are also
sensitive to a change in Fitch's assessment of the probability of
their non-performance relative to the risk captured in BCP's VR.
This may reflect a change in the group's capital management or an
unexpected shift in regulatory buffer requirements, for example.


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


FIRST COLLECTION: S&P Alters Outlook to Pos. & Affirms 'B-' ICR
---------------------------------------------------------------
S&P Global Ratings said that it revised its outlook to positive
from stable on Russia-based First Collection Bureau (FCB), a core
subsidiary of FCB Group. At the same time, S&P affirmed its 'B-'
long-term issuer credit rating on FCB.

S&P said, "The outlook revision reflects our anticipation that
FCB's performance will continue to improve. In particular, FCB
has closed a significant one-off related party transaction that
had put significant pressure on leverage. We also understand that
it will not repeat such a transaction in the future. In addition,
we believe that FCB has largely integrated its previous
acquisition (National Recovery Service) and we expect that it
will continue to show improving EBITDA, margins, and revenues in
2018-2019 while also benefiting from the stabilizing operating
environment in Russia.

"FCB has actively worked on deleveraging, including through early
repayment of some of its outstanding debt. Its debt to adjusted
EBITDA decreased to a low 1.1x at the end of 2017 after a peak of
4.4x in 2016. We understand that management intends to keep
leverage at a lower level and has adopted a policy of keeping its
debt to EBITDA below 2x.

"At the same time, we note FCB's shareholder structure, in which
Baring Vostok--a large equity fund--owns the majority of shares.
We classify this structure as financial-sponsor ownership, which
constrains our assessment of its leverage, all else being equal.
Our assessment of FCB's business risk profile continues to
reflect our view of high country and industry risks to which the
group is exposed, as well as FCB's leading positions in Russia's
distressed-debt collection market. We note that FCB is starting
to benefit from somewhat stronger economic conditions in Russia,
including improved payment patterns, some growth of real
disposable household incomes, and resumed credit activity. The
court-collection system, which is an important tool for the
industry, is less effective than in developed countries, but it
is improving.

"We view FCB's capital structure as concentrated. FCB is funded
by a mix of Russian ruble bonds that mature in 2018-2021. We
understand that Orient Bank--ultimately controlled by Baring
Vostok--holds a significant amount of these bonds. The largest
outstanding bond of Russian ruble (RUB) 1.8 billion (about $30
million) starts to amortize in July 2019. We believe that FCB
will aim to refinance some of its funding at lower interest
rates, considering the favorable interest rate environment.

"The positive outlook reflects our view that FCB's
creditworthiness may strengthen in the next six to 12 months,
aided by a stabilizing macroeconomic backdrop combined with a
more prolonged track record of operations with lower leverage and
the gradual diversification of its funding base.

"We would likely upgrade FCB in the next six to 12 months if it
demonstrated its ability to operate effectively with lower
leverage on a sustained basis. We would also consider a positive
rating action if FCB diversified its funding mix and funding base
with less dependence on one creditor. We would not exclude an
upgrade of up to two notches if both of these scenarios
materialized.

"We could revise our outlook on FCB to stable over the next six
to 12 months if our expectations underpinning the positive
outlook were not met. We could also revise the outlook to stable
in the unlikely event that the group raised a significant amount
of debt, for example, taking its ratio of debt to EBITDA above to
5.0x."


RUSSIAN STANDARD: Moody's Alters Caa2 Ratings Outlook to Stable
---------------------------------------------------------------
Moody's Investors Service has changed to stable from negative the
outlook on Caa2 long-term local- and foreign currency deposit
ratings of Russian Standard Bank and affirmed these ratings.
Concurrently, the rating agency affirmed the bank's Baseline
Credit Assessment and adjusted BCA of caa2, its long-term and
short-term local and foreign currency Counterparty Risk Ratings
of Caa1/Not Prime, as well as its Not Prime short-term local and
foreign currency deposit ratings. RSB's long-term and short-term
Counterparty Risk Assessments of Caa1(cr)/Not-Prime(cr) were also
affirmed.

RATINGS RATIONALE

According to the rating agency, the change of RSB's ratings
outlook to stable from negative reflects an improvement of the
bank's asset quality and profitability metrics. At the same time,
the affirmation of RSB's standalone BCA at caa2, leading to
affirmation of all of the bank's other ratings, reflects the
persisting weakness of the bank's capital level and its exposure
to related parties.

As of March 31, 2018, RSB's problem loans decreased to 16.4% of
the bank's gross loan book from 19.7% as of year-end 2016. Credit
losses (defined as loan-loss provisions as a percentage of
average gross loans) moderated to 4.4% (annualised) in the first
quarter of 2018 from 9.7% in 2017 and 11.8% in 2016. Adoption of
IFRS 9 resulted in improvement of the coverage of problem loans
by loan loss reserves to 111% as of March 31, 2018 from 93%
reported at the end of 2017.

In the first quarter of 2018 and in 2017, Russian Standard Bank
posted net IFRS income of RUB1.0 billion and RUB2.4 billion,
respectively, versus net IFRS loss of RUB33 billion accumulated
for the period of 2014-16. The bank's return on average assets
(ROAA) improved to 1.3% (annualised) in the first quarter of 2018
from 0.8% in 2017. The main driver behind the improvement is the
bank's reducing credit losses. Moody's expects RSB to sustain
profitable performance in the next 12 to 18 months, which will
alleviate pressure on the bank's capital.

As of March 31, 2018, RSB's tangible common equity, Moody's
preferred measure of capitalization, remained negative being
pressured by large volume of deferred tax assets, which, in
accordance with Moody's methodology, are deductible from capital
due to their limited ability to absorb losses. RSB's capital is
also affected by the bank's material exposure to related parties,
through both lending transactions and investments in fixed-income
and equity instruments issued by related and affiliated entities,
which in aggregate exceeds the bank's shareholders' equity.

According to rating agency, RSB's funding structure and liquidity
position are stable. Over the past three years, the bank's
reliance on market finance for funding loans declined
significantly, and the market funding sources were substituted by
granular deposits from individuals. The bank's loan-to-deposit
ratio has been hovering around 60% in 2016-1H2018. In addition,
RSB's liquidity buffer adjusted for encumbered assets amounted to
20% of its total banking assets as of March 31, 2018, a
comfortable level, taking into account a relatively quick
turnover of the bank's retail loan book.

WHAT COULD MOVE THE RATINGS UP / DOWN

RSB's standalone BCA and long-term ratings could be upgraded if
the bank makes visible progress in improving its weak capital
metrics and reducing its exposure to related parties, while
simultaneously improving asset quality and sustaining good
profitability metrics and stable funding and liquidity profiles.

RSB's ratings might be downgraded, or the rating outlook might be
revised to negative from stable, in case of the bank's failure to
sustain the long-term improving trends in its solvency metrics.
Any material further increase in related-party exposures may also
drive negative rating actions.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: Russian Standard Bank

LT Bank Deposits, Affirmed Caa2, Outlook Changed to Stable from
Negative

ST Bank Deposits, Affirmed NP

Adjusted Baseline Credit Assessment, Affirmed caa2

Baseline Credit Assessment, Affirmed caa2

LT Counterparty Risk Assessment, Affirmed Caa1(cr)

ST Counterparty Risk Assessment, Affirmed NP(cr)

LT Counterparty Risk Rating, Affirmed Caa1

ST Counterparty Risk Rating, Affirmed NP

Subordinate MTN Program, Affirmed (P)Caa3

Senior Unsecured MTN Program, Affirmed (P)Caa2

Outlook Actions:

Issuer: Russian Standard Bank

Outlook, Changed To Stable From Negative

PRINCIPAL METHODOLOGY

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

Headquartered in Moscow, Russia, Russian Standard Bank
reported -- at March 31, 2018 -- total assets of RUB312 billion
and total shareholder equity of RUB15 billion, according to its
unaudited financial statements prepared under IFRS. The bank's
IFRS net profits for the first quarter of 2018 was RUB1.0
billion, and for full-year 2017 - RUB2.4 billion.


=============================
S L O V A K   R E P U B L I C
=============================


ONE FASHION: Files for Bankruptcy, Operations to Continue
---------------------------------------------------------
The Slovak Spectator, citing the Trend Weekly, reports that One
Fashion Outlet 1 near the village of Voderady, the biggest outlet
centre in Slovakia, has filed for bankruptcy.

According to The Slovak Spectator, the further fate of
Slovak Parndorf, nicknamed in comparison to the popular outlet
centre in the Austrian village Parndorf just behind the Slovak-
Austrian border, is now in the hands of the courts.

The outlet was struggling with problems in the past, resulting in
a request with the courts for restructuring, The Slovak Spectator
relates.  It was given a second chance by the committee of
creditors in early 2017, though it was obliged to find a new
investor within 18 months, The Slovak Spectator recounts.
However, it failed to find one and thus a long-term investment
loan from VUB bank of EUR6.9 million is pulling it down, The
Slovak Spectator notes.  The second financing institution is the
Austrian bank BKS, to which it owes around EUR3.8 million, The
Slovak Spectator states.

The District Court Bratislava I has already started bankruptcy
proceedings, The Slovak Spectator relays.

According to The Slovak Spectator, the outlet will remain open
for now, however, the company's management explained, as cited by
the Trend weekly, said "As we still have a relatively stable
visit rate, we are creating all the preconditions so that the
bankruptcy proceeding does not have any impact on the operation
of the centre."

"The financing banks fully support operating the centre in
bankruptcy so that a possible sale can be carried out as
effectively as possible and proceeds are as high as possible."

Creditors agree with such a course, The Slovak Spectator notes.


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


BANCO POPULAR: SRB Says Won't Compensate Investor Losses
--------------------------------------------------------
Charlie Devereux and Nicholas Comfort at Bloomberg News report
that the European Union's Single Resolution Board says it won't
compensate investors who lost money in the resolution of Banco
Popular.

According to Bloomberg, the "Valuation 3" report prepared by
Deloitte shows that under normal insolvency proceedings, the
overall losses would have been substantially higher than the
losses that were realized in resolution.

SRB has opened up "right to reply" for disgruntled creditors,
Bloomberg discloses.  The registration to apply to submit
comments in writing closes on Sept. 14, Bloomberg states.

                        About Banco Popular

Banco Popular Espanol SA is a Spain-based commercial bank.  The
Bank divides its business into four segments: Commercial Banking,
Corporate and Markets; Insurance Activity, and Asset Management.
The Bank's services and products include saving and current
accounts, fixed-term deposits, investment funds, commercial and
consumer loans, mortgages, cash management, financial assessment
and other banking operations aimed at individuals and small and
medium enterprises (SMEs).  The Bank is a parent company of Grupo
Banco Popular, a group which comprises a number of controlled
entities, such as Targobank SA, GAT FTGENCAT 2005 FTA, Inverlur
Aguilas I SL, Platja Amplaries SL, and Targoinmuebles SA, among
others.  In January 2014, the Company sold its entire 4.6% stake
in Inmobiliaria Colonial SA during a restructuring of the
property firm's capital.


FTPYME TDA CAM 4: S&P Affirms 'D (sf)' Rating on Class D Notes
--------------------------------------------------------------
S&P Global Ratings took various credit rating actions on FTPYME
TDA CAM 4, Fondo de Titulizacion de Activos' classes of notes.

CREDIT ANALYSIS

S&P said, "We have applied our European small and midsize
enterprise (SME) collateralized loan obligation (CLO) criteria to
determine the scenario default rates (SDRs) -- the minimum level
of portfolio defaults that we expect each tranche to be able to
withstand at a specific rating level using CDO Evaluator.

"We ranked the originator into the moderate category. Taking into
account Spain's Banking Industry Country Risk Assessment (BICRA)
score of 4, we have applied a downward adjustment of one notch to
the 'b+' archetypical average credit quality. Due to the absence
of information on the creditworthiness of the securitized
portfolio compared with the originator's entire loan book, we
further adjusted the average credit quality by three notches.

"As a result of these adjustments, our average credit quality
assessment of the portfolio was 'ccc', which we used to generate
our 'AAA' SDR of 85%.

"We have calculated the 'B' SDR, based primarily on our analysis
of historical SME performance data and our projections of the
transaction's future performance. We have reviewed the
portfolio's historical default data, and assessed market
developments, macroeconomic factors, changes in country risk, and
the way these factors are likely to affect the loan portfolio's
creditworthiness. As a result of this analysis, our 'B' SDR is
10%.

"We interpolated the SDRs for rating levels between 'B' and 'AAA'
in accordance with our European SME CLO criteria."

CASH FLOW ANALYSIS

S&P said, "At each liability rating level, we applied a weighted-
average recovery rate (WARR) by considering observed historical
recoveries. As a result of this analysis, our WARR assumptions in
a 'B' scenario is 40%.

"We used the portfolio balance that the servicer considered to be
performing, the current weighted-average spread, and the above
weighted-average recovery rates. We subjected the capital
structure to various cash flow stress scenarios, incorporating
different default patterns and interest rate curves, to determine
the rating level, based on the available credit enhancement for
each class of notes under our European SME CLO criteria."

COUNTRY RISK

S&P said, "On May 3, 2018, we placed our ratings on the class A2
and A3(CA) notes on CreditWatch positive following our upgrade of
Spain.

"Following the application of our structured finance ratings
above the sovereign criteria (RAS criteria), we have determined
that we can rate these classes of notes up to six notches above
the long-term rating on Spain.

"Considering the results of our credit and cash flow analysis and
the application of our RAS criteria, we have raised to 'AAA (sf)'
from 'AA- (sf)' and removed from CreditWatch positive our ratings
on these classes of notes.

"As the class B notes' credit enhancement has increased since our
previous review, and taking into account the current low Euro
Interbank Offered Rate (EURIBOR) level, we believe that it has
become less likely that this tranche could miss an interest
payment. We have therefore raised to 'BB- (sf)' from 'CCC- (sf)'
our rating on this class of notes.

"The class C notes have repaid the deferred amount of interest
and have resumed current interest payments. We have therefore
raised our rating on this class of notes to 'CCC- (sf)' from 'D
(sf)' following the application of our criteria.

"We have affirmed our 'D (sf)' rating on the class D notes as
they continue to default."

FTPYME TDA CAM 4 is a single-jurisdiction cash flow CLO
transaction securitizing a portfolio of SME loans that BANCO CAM
S.A.U. originated in Spain. The transaction closed in December
2006.

  RATINGS LIST
  Class              Rating
               To           From
  FTPYME TDA CAM 4, Fondo de Titulizacion de Activos
  EUR1.529 Billion Floating-Rate Notes

  Ratings Raised And Removed From CreditWatch Positive

  A2           AAA (sf)     AA- (sf)/Watch Pos
  A3(CA)       AAA (sf)     AA- (sf)/Watch Pos

  Ratings Raised

  B            BB- (sf)     CCC- (sf)
  C            CCC- (sf)    D (sf)

  Rating Affirmed

  D            D (sf)


LIBERBANK: Moody's Hikes LT Deposit Ratings to Ba3, Outlook Pos.
----------------------------------------------------------------
Moody's Investors Service has upgraded the following ratings and
assessments of Liberbank: (1) the bank's long-term deposit rating
to Ba3 from B1; (2) the bank's baseline credit assessment (BCA)
and adjusted BCA to ba3 from b1; (3) the bank's long-term
Counterparty Risk Rating to Ba2 from Ba3 and (4) the bank's long-
term Counterparty Risk (CR) Assessment to Ba1(cr) from Ba2(cr).
The outlook on the long-term deposit ratings remains positive.

The bank's short-term ratings and assessments are unaffected by
its rating action.

Moody's's rating action reflects the continued improvement of
Liberbank's credit fundamentals from weak levels, namely through
a sharp decline in the stock of problematic assets since 2017 and
Moody's expectation that this trend will continue for the
remainder of 2018 underpinned by Spain's sound economic growth
prospects.

RATINGS RATIONALE

  --- RATIONALE FOR UPGRADING THE RATINGS

The upgrade of Liberbank's BCA to ba3 from b1 primarily reflects
the ongoing de-risking of Liberbank's balance sheet after the
EUR499 million capital increase completed in November 2017 that
was fully earmarked to increase provisioning coverage, with the
stock of non-performing assets (NPA, non-performing loans +
foreclosed real estate assets) declining by 32% over the last 12
months. As a result, Liberbank's loss absorption capacity
(measured as NPAs over shareholders' equity and provisions)
significantly improved to 81.5% at end-June 2018 from 117% at
end-June 2017.

The rating action also reflects Liberbank's improving asset risk
trends with the NPA ratio declining to 14.7% at end-June 2018
from a very high 21.7% a year earlier. Despite these
improvements, that namely stem from disposals of foreclosed real
estate assets and to a lesser extent from recoveries and write-
offs of NPLs, Liberbank continues to display a high level of
problematic assets and which is above the Spanish system average
that Moody's estimates at 13% (end-December 2017 latest data
available). The rating agency expects that the bank will be able
to reduce the NPA ratio to 12.5% by the end of 2018 as it has
publicly disclosed underpinned by the sound conditions of the
Spanish economy.

In upgrading Liberbank's standalone BCA to ba3, the rating agency
has also taken into consideration: (1) the bank's modest but
gradually improving profitability metrics with the net profit
standing at 0.3% of tangible assets at end-June 2018, and which
should benefit from the bank's commitment to undertake further
cost rationalization and (2) Liberbank's sound liquidity
position, underpinned by a large and stable deposit base and
buffer in the form of liquid assets (the Liquidity Coverage Ratio
stood at around 238% at end-June 2018).

The upgrade of Liberbank's long-term deposit ratings to Ba3 from
B1 reflects: (1) The upgrade of the bank's BCA and adjusted BCA
to ba3 from b1; (2) the result from the rating agency's Advanced
Loss-Given Failure (LGF) analysis leading to no uplift for the
deposits ratings; and (3) Moody's assessment of low probability
of government support for Liberbank, which results in no further
uplift for the deposit ratings.

  --- RATIONALE FOR THE POSITIVE OUTLOOK

The positive outlook on Liberbank's long-term deposit ratings
primarily reflects Moody's expectation that the bank will be able
to further improve its credit fundamentals over the outlook
period of 12 to 18 months.

In particular, the rating agency expects a further improvement of
Liberbank's asset risk metrics, with the NPA ratio to decline
further from the 12.5% threshold expected for 2018 and the net
profit over tangible assets remaining at around 0.3% on a
sustained basis.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on Liberbank's BCA could arise if the bank
continues to reduce the stock of NPAs, while preserving a
sustained recovery of profitability levels. The bank's BCA could
also be upgraded if the bank's solvency position improves as a
result of stronger capital levels.

Downward pressure on the bank's BCA is unlikely given the current
positive outlook. However, downward pressure could develop as a
result of; (1) The reversal in current asset risk trends with an
increase in the stock of non-performing loans and/or other
problematic exposures; (2) a weakening of Liberbank's internal
capital-generation and risk-absorption capacity as a result of
subdued profitability levels; and/or (3) a deterioration in the
bank's liquidity position.

As the bank's deposit ratings are linked to the standalone BCA,
any change to the BCA would likely also affect these ratings.

Liberbank's deposit ratings could also change as a result of
changes in the loss-given-failure faced by these securities.

LIST OF AFFECTED RATINGS:

Issuer: Liberbank

Upgrades:

LT Bank Deposit Rating, Upgraded to Ba3 POS from B1 POS

Baseline Credit Assessment, Upgraded to ba3 from b1

Adjusted Baseline Credit Assessment, Upgraded to ba3 from b1

LT Counterparty Risk Assessment, Upgraded to Ba1(cr) from Ba2(cr)

LT Counterparty Risk Rating, Upgraded to Ba2 from Ba3

Outlook Actions:

Outlook, Remains Positive

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


SANTANDER EMPRESAS 2: S&P Affirms D (sf) Rating on Class F Notes
-----------------------------------------------------------------
S&P Global Ratings raised and removed from CreditWatch positive
its credit ratings on Fondo de Titulizacion de Activos Santander
Empresas 2's class D and E notes. At the same time, S&P has
affirmed its rating on the class F notes.

S&P said, "The rating actions follows our credit and cash flow
analysis of the transaction and the application of our related
criteria.

"On May 3, 2018, we placed on CreditWatch positive our ratings on
the class D and E notes following our March 23, 2018 upgrade of
Spain.

"To perform our credit and cash flow analysis we used the recent
performance reports and applied our European small and midsize
enterprise (SME) collateralized loan obligation (CLO) criteria
and our current counterparty criteria. For ratings that are above
our foreign currency rating on the sovereign, we have also
applied our structured finance ratings above the sovereign
criteria."

CREDIT ANALYSIS

S&P said, "We have applied our European SME CLO criteria to
determine the scenario default rate (SDR)--the minimum level of
portfolio defaults that we expect each tranche to be able to
withstand at a specific rating level using CDO Evaluator. At the
same time, we have determined the 'B' SDR based on an analysis of
historical performance of the originator, our estimate of
expected defaults for a portfolio (given market trends and
developments), and our outlook for the SME sector in Spain.

"We concluded that the transaction has been performing in line
with our expectations. To determine the average pool quality for
the 'AAA' SDR, we adjusted the archetypal European SME average
'b+' credit quality to reflect two factors (country and
originator, and portfolio selection adjustments). We interpolated
the SDRs for rating levels between 'B' and 'AAA' in accordance
with our European SME CLO criteria."

RECOVERY RATE ANALYSIS

S&P said, "We applied a weighted-average recovery rate (WARR) at
each liability rating level by considering the asset type and its
seniority, the country recovery grouping, and the observed
historical recoveries in this transaction. We further reduced
recovery rates in lines with the recovery observed since the
transaction closed. Our recoveries assessment is unchanged since
our previous full review."

COUNTRY RISK

S&P's long-term unsolicited rating on Spain is 'A-'. S&P's RAS
criteria, which designate the country risk sensitivity for CLOs
as moderate, require the tranche to have sufficient credit
enhancement to pass a minimum of a severe stress to qualify to be
rated above the sovereign.

COUNTERPARTY RISK ANALYSIS

Under the transaction documents, the bank account and the
interest rate swap providers have downgrade provisions in line
with S&P's current counterparty criteria.

CASH FLOW ANALYSIS

S&P said, "We used the reported portfolio balance that we
considered to be performing, the principal cash balance, the
current weighted-average spread, and the WARR that we considered
to be appropriate. We subjected the capital structure to various
cash flow stress scenarios, incorporating different default
patterns and timings and interest rate curves, to determine the
rating level, based on the available credit enhancement for each
class of notes under our European SME CLO criteria. Additionally,
the class D and E notes can withstand extreme and severe
stresses, respectively, under our RAS criteria, and can therefore
be rated up to six and four notches above the long-term sovereign
rating.

"In light of these factors, we have raised and removed from
CreditWatch positive our ratings on the class D and E notes.
The class F notes' credit enhancement has increased due to
deleveraging. However, as they are currently not paying any
timely interest, we have affirmed our 'D (sf)' rating on the
notes in line with our criteria."

Santander Empresas 2 is a single-jurisdiction cash flow CLO
transaction backed by SME loans. It is a static deal that is
currently amortizing.

RATINGS LIST

  Class             Rating
            To                 From

  Fondo de Titulizacion de Activos Santander Empresas 2
  EUR2.954 Billion Floating-Rate Notes

  Ratings Raised And Removed From CreditWatch Positive

  D         AAA (sf)           A+ (sf)/Watch Pos
  E         AA (sf)            BBB+ (sf)/Watch Pos

  Rating Affirmed

  F         D (sf)


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


GLOBAL LIMAN: Moody's Lowers CFR to B2, Outlook Stable
------------------------------------------------------
Moody's Investors Service (Moody's) has downgraded to B2 from B1
the corporate family rating and to B2-PD from B1-PD the
probability of default rating of Turkey-based cruise and
container port operator, Global Liman Isletmeleri A.S. (GPH).
Moody's also downgraded to B2 from B1 the rating of the company's
USD250 million guaranteed senior unsecured bond due 2021. The
outlook on the ratings is stable.

RATINGS RATIONALE

The rating downgrade reflects the expectation that, despite some
improvements in its recent operating and financial performance,
GPH's financial profile will not sufficiently strengthen, over
the next 12-18 months, to comfortably reach the thresholds
required for the previous B1 rating. Moody's had previously
indicated that, in order to support the previous B1 rating, GPH
would have needed to exhibit, on a sustainable basis, funds from
operations (FFO)/debt at least in the low teens in percentage
terms and FFO interest cover of at least 2.5x. As of YE 2017, GPH
reported an FFO/debt ratio of 9.1% and FFO interest cover of
2.3x. Moody's expects key credit metrics for YE 2018 to be
broadly in line with YE 2017 levels.

GPH generated consolidated revenues of approximately USD116
million and consolidated EBITDA of USD75 million in 2017 (+1.3%
and -0.8%, respectively, vs. 2016), through the management of its
ten consolidated port assets. Cargo activities accounted for
approximately 57% of consolidated revenues in 2017, with the
remaining 43% represented by cruise ports. More recently, for the
three months to March 2018, GPH reported revenues of almost USD21
million and EBITDA of USD11 million (+13.1% and +10.2%,
respectively, vs. the corresponding period in 2017), mainly
supported by increasing container volumes (+4.7% vs. the
corresponding period in 2017) and passenger levels at its cruise
ports (+6.3% vs. the corresponding period in 2017).

More generally, while GPH benefits from the greater
diversification arising from an increased presence in the cruise
port market and the number of ports managed, some of the
company's core operations have challenges which continue to weigh
on GPH's financial profile.

GPH's commercial operations, mainly concentrated at the Turkish
port of Akdeniz-Antalya, continue to be characterised by limited
diversification, given the strong bias towards exports of marble
(mainly to China) and cement (to Northern Africa and Middle
East), and vulnerability to changing economic and political
conditions, given the profile of the served countries and the
absence of long-term take or pay agreements.

In the cruise segment, cruise passenger volumes at the Ege port
remain under pressure, as cruise lines reacted to political
instability and terrorism risks in Turkey. Whilst Moody's expects
passenger volumes at Ege to revert to growth, a material increase
is not envisaged before 2019 at the earliest. As such, the lower
share of high yield Turkish cruise port activities which have
historically generated a significant share of GPH's earnings, is
expected to be only partially offset by the good performance of
GPH's Mediterranean cruise ports (in particular, Barcelona and
Valletta).

In addition to the operating challenges discussed, the risk to
GPH's financial profile is further exacerbated by the group's
highly acquisitive strategy, given the sizeable pipeline of
cruise port acquisition opportunities under evaluation. Whilst
such acquisitions would increase the group's size and
diversification, M&A activity must be funded and may also bring
operational and integration challenges. Nevertheless, Moody's
notes that acquisition activity will likely be mainly undertaken
at the level of GPH's parent company, Global Ports Holding PLC
(GPH PLC), with the required equity contributions for such
activity funded by the proceeds from its 2017 public listing.

GPH's rating also reflects its continued focus on attractive
shareholder remuneration policies. Over the period 2016-17, GPH
paid out dividends totaling more than USD65 million, which
compares with a Moody's calculated FFO of cumulatively USD72
million for the same period, partially returning to shareholders
the capital increase finalised in 2016, following the acquisition
of a stake in GPH by the European Bank for Reconstruction and
Development.

More generally, GPH's B2 rating continues to reflect: 1) the
positive cash flow generation associated with the company's
increasingly diversified cruise and cargo activities and
associated limited operating covenants; 2) the pricing
flexibility of the majority of its managed ports; 3) the limited
capital expenditure requirements associated with the existing
ports portfolio; and 4) the expectation of greater transparency
and improved governance following the 2017 London listing of
GPH's parent company, GPH PLC. These considerations are partially
offset by 1) GPH's small scale compared to other rated port
operators; 2) the concentration of commercial activities at the
port of Akdeniz-Antalya, characterised by a relatively short
remaining concession life (maturity 2028); 3) the limited long-
term visibility in respect of revenue evolution; 4) the presence
of relatively significant minority shareholders at some of its
key port assets; 5) a leveraged financial profile; and 6) some
concentration of debt maturities in light of the company's USD250
million bond maturity in 2021.

A corporate family rating (CFR) is an opinion on the expected
loss associated with the debt obligations of a group of companies
assuming that it had one single class of debt and was a single
legal entity. The B2/LGD4 rating of GPH's USD250 million senior
unsecured bond is in line with the CFR, reflecting the fact that
1) the majority of GPH's group debt is pari passu senior
unsecured debt at the GPH level; 2) debt at Unrestricted
Subsidiaries is non-recourse to GPH; and 3) the proportion of
senior secured debt, mainly associated with the investment in the
port of Barcelona, remains relatively small and is expected to
fully amortise over time.

RATIONALE FOR THE STABLE OUTLOOK

The outlook on the ratings is stable, reflecting its expectation
that GPH's financial metrics will remain broadly commensurate
with the levels required for the B2 rating.

WHAT COULD CHANGE THE RATING UP/DOWN

A rating upgrade could result from GPH's credit metrics improving
to a level consistently above the range for the current rating,
namely an FFO/debt ratio in the teens in percentage terms and FFO
interest cover in excess of 2.5x, coupled with a period of
settled and stable operations evidencing a solid operating
performance and generation of positive free cash flow.

Conversely, negative rating pressure would develop if GPH's
credit metrics were to weaken to levels not considered
commensurate with the current rating level, namely FFO/debt
persistently in the high single digits in percentage terms and
FFO interest cover below 2.0x. Furthermore, downward rating
pressure could result from major acquisition activity that
resulted in a negative change in the company's risk profile, a
deterioration of the company's liquidity position and/or outsized
dividend distributions.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Privately
Managed Port Companies published in September 2016.

Global Liman Isletmeleri A.S. is a cruise and container port
operator based in Turkey. The company operates two cruise and
ferry ports (Bodrum, Ege) located on Turkey's Aegean coast and
one mixed cruise and commercial port (Akdeniz) located on
Turkey's Mediterranean coast. In addition, GPH holds controlling
stakes in the commercial port of Bar (Montenegro, 64% stake), as
well as in the cruise ports of Barcelona (Spain, 62% stake),
Valletta (Malta, 56% stake) and, indirectly, in the cruise port
of Malaga (80% stake held through the Barcelona port). In
addition, GPH has controlling stakes in three smaller ports in
Italy (Cagliari, Catania and Ravenna). The group also holds non-
controlling stakes in the cruise ports of Lisbon (Portugal),
Singapore and Venice (Italy). GPH is fully owned by the holding
company Global Ports Holding PLC, listed on the London Stock
Exchange (34.37% free float, 5.03% EBRD and 60.6% Global
Investment Holding).


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


AULDS: Puts Shops Into Liquidation as Part of Turnaround
--------------------------------------------------------
Glasgow Record reports that bakery Aulds has put its shops into
liquidation as part of a plan to turn around the business.

The family-owned firm has 26 shops employing 180 staff, Glasgow
Record discloses.  But the retail business is said to be in an
"unsustainable loss-making position", Glasgow Record notes.

According to Glasgow Record, liquidators are assessing the
viability of selling all or some of the stores as a going concern
in a bid to safeguard jobs.


DEBENHAMS PLC: S&P Cuts Issuer Credit Rating to 'B', Outlook Neg.
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
U.K. department store retailer Debenhams PLC to 'B' from 'B+'.
The outlook is negative.

S&P said, "At the same time, we lowered our long-term issue
rating on the GBP 225 million senior unsecured notes (of which
GBP 200 million remain outstanding) to 'B' from 'B+', in line
with the issuer credit rating. The recovery rating on these notes
is unchanged at '3', reflecting our expectation of average
recovery (50%-70%; rounded estimate: 60%) in the event of
default.

"The downgrade reflects our view that Debenhams' ability to
absorb further setbacks owing to challenging trading conditions
has diminished compared to our previous expectations. This is due
to a further decline in the group's profitability, as evident
from another profit warning announced on June 19, 2018. The
announcement highlighted further declines in store like-for-like
sales, profitability margins, and operating cash flows,
underlining our concerns over the group's sustainable level of
earnings. We now expect Debenhams to report materially weaker
credit metrics over the next 12-18 months than in our previous
base case.

"Although management has announced several strategic and
financial policy initiatives to restore profitability and
preserve cash, we expect Debenhams' reported free operating cash
flow (FOCF) generation to turn materially negative in the
financial year (FY) ending Sept. 1, 2018, necessitating further
drawdowns on the group's revolving credit facility (RCF). We
expect that this weakening of Debenhams' cash flow generation
will cause the group's S&P Global Ratings-adjusted leverage to
further increase from an already elevated level, lessening the
group's ability to withstand additional operating setbacks.

"Debenhams has committed to a significant reduction in capital
expenditure (capex) and we do not expect it to pay further
dividends in the near term. That said, we believe that the
group's financial flexibility over the medium term will be eroded
by thinner margins and potential pressure on payment terms from
suppliers. If the group is not able to restore its earnings to
historical levels, it may find it difficult to refinance its bank
facilities in June 2020 -- ahead of its bond maturities in the
summer of 2021 -- on terms comparable to those on the current
instruments.

The long-term rating remains constrained by the fiercely
competitive nature of Debenhams' markets; the seasonality of its
cash flows; its high operational gearing on account of its large
store estate; its exposure to changing fashion trends and
consumer preferences; and its high lease-adjusted leverage.

S&P said, "We believe that trading conditions for discretionary
goods retailers in the U.K. will remain extremely challenging
through the second half of 2018 as consumer confidence remains
very low. At the same time, heavy discounting from competitors--
including the under-pressure House of Fraser, and John Lewis--has
weighed heavily on Debenhams' margins. Although not central to
our current forecast, we would likely view a sustained reduction
in capex as potentially harmful to the group's future competitive
standing, despite its significant investment in recent years."

The long-term rating is supported by Debenhams' solid mid-market
position as a leading U.K. department store retailer, with an
established and fast-growing presence online. Debenhams' overall
credit profile also benefits from its modest financial debt,
which affords it additional financial flexibility such that it
can match both capex and dividends to earnings expectations. S&P
also views Debenhams' substantial headroom under its liquidity
facilities, low cash interest burden, and medium-term debt
maturities as supportive of the current rating.

S&P said, "In addition, we recognize that the level of distress
that several competitors have recently experienced--including
House of Fraser, New Look, and Mothercare--may provide future
opportunities for Debenhams. The group's established market
position, large store estate, and well-developed e-commerce
platforms could allow it to absorb some additional capacity from
the market if other players exit, in our opinion."

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

-- Macroeconomic factors that influence discretionary goods
    retailers' performance, including real GDP growth, consumer
    confidence and consumption patterns, inflation, discretionary
    income, and the unemployment rate. S&P's assumptions for
    Debenhams reflect economic scenarios for the U.K., Ireland,
    and Denmark, the countries from which the group generates the
    vast majority of its earnings.

-- Moderate U.K. real GDP growth of 1.2% in calendar 2018 and
    1.4% in calendar 2019, along with lower consumer price
    inflation of 2.5% in 2018--compared with 2.7% last year--and
    1.9% in 2019. S&P also expects a modest reduction in real
    consumption growth--to 1.0% in both 2018 and 2019--as
    households continue to reduce their spending in light of the
    uncertain economic outlook.

-- Continued overall underperformance in the U.K. discretionary
    retail sector in 2018 and 2019 relative to nominal
    consumption growth, reflecting the continued weakness in
    consumer confidence and the ongoing shift in shopping habits.

-- Further modest 2%-3% declines in statutory revenues in FY2018
    as growth in online and international sales fails to offset
    the decline in U.K. store sales. We expect the topline to
    level off from FY2019.

-- A substantial reduction in absolute EBITDA in FY2018 as
    strategy-related exceptional expenses compound gross margin
    pressures. S&P said, "We expect reported EBITDA margins of
    5%-6% in FY2018, compared with 8.1% last year. We expect
    margins to begin to pick up in FY2019 as the group's
    strategic and cost-saving initiatives begin to bear fruit and
    as exceptional expenses reduce. We expect the appreciation of
    the pound sterling in recent months to provide only marginal
    gross margin benefits in FY2019 -- reflecting Debenhams'
    relatively long hedging policy -- but expect this to provide
    more material uplift in FY2020."

-- Capex of up to GBP 125 million-GBP 135 million in FY2018, as
    per management's guidance. S&P expects a substantial
    reduction in capex to GBP 75 million at most in FY2019, as
    management looks to preserve cash in light of recent
    competitive pressures.

-- No further dividends in S&P's forecast horizon beyond the GBP
    36 million already paid this year.

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

-- Adjusted EBITDA of GBP 330 million-GBP 350 million in FY2018,
    increasing to GBP 365 million-GBP 385 million in FY2019
    (compared with GBP 400 million in FY2017). These figures
    correspond to reported EBITDA, after exceptional expenses, of
    around GBP 120 million-GBP 130 million in FY2018 and GBP 145
    million-GBP 165 million in FY2019.

-- Adjusted debt to EBITDA of 7.5x-8.0x in FY2018, up from
    around 6.5x in FY2017. S&P expects earnings growth in FY2019
    to result in modest deleveraging toward 7.0x.

-- Adjusted funds from operations (FFO) to debt of 4%-7% in both
    FY2018 and FY2019.

-- Negative reported FOCF of up to GBP 10 million in FY2018,
    before returning to positive levels of around GBP 40 million-
    GBP 50 million in FY2019. This reflects the group's
    commitment to a significant cut in capex and our expectation
    of no further dividends.

-- Adjusted FOCF to debt of 2%-4% in FY2018 and FY2019, before
    picking up to near 5% from FY2020.

-- Materially negative reported discretionary cash flow in
    FY2018 of up to GBP 40 million, before increasing
    substantially in FY2019 to around negative GBP 45 million.

-- S&P Global Ratings-adjusted EBITDAR coverage (defined as
    reported EBITDA after exceptional expenses and before rent,
    over cash interest plus rent) of around 1.5x in FY2018,
    improving to about 1.6x in FY2019.

S&P said, "The negative outlook reflects the extreme competitive
pressures faced by discretionary goods retailers in the U.K.,
where conditions continue to deteriorate on the back of very low
consumer confidence and elevated discounting from a few
distressed retailers. We expect these pressures to constrain
Debenhams' operating performance over the next six-to-12 months.

"We believe that these competitive pressures will put sustained
pressure on Debenhams' earnings, leading to material free
operating cash outflows in FY2018, increasing adjusted leverage
to beyond 7.5x, and reducing EBITDAR coverage to around 1.5x. We
expect reported FOCF to turn positive again in FY2019 as the
group reduces capital spending and shareholder remuneration,
while also reaping the benefits of its strategic initiatives.

"We could lower the rating if Debenhams' operating performance
comes under further pressure owing to, for example, an
accelerated decline in sales or profitability, calling into
question the group's ability to sustainably generate at least
neutral reported FOCF. This could require Debenhams to fund
portions of future capex with further drawdowns on the RCF,
materially weakening its credit metrics.

"We could also consider a negative rating action if Debenhams'
EBITDAR coverage weakened further to below 1.5x, its leverage
persistently crept up, or if we thought that Debenhams' liquidity
position had weakened due to, for example, a material change in
the payment terms with its suppliers.

"We could revise the outlook back to stable if, as a result of a
sustained improvement in the topline, better profitability, and
tight management of working capital and capex, Debenhams restored
its reported FOCF to be substantially and consistently positive,
thereby enhancing liquidity or allowing for debt reduction.
Any positive rating action would also be contingent on Debenhams'
competitive standing remaining robust, it deleveraging
sustainably from FY2018 debt to EBITDA of nearly 8.0x, and its
EBITDAR coverage ratio remaining at least 1.5x.

"We would also expect Debenhams' financial policy to remain
focused on sustainable deleveraging, supporting both future cash
generation and a full and orderly refinancing well in advance of
its 2020 debt maturities."


HOUSE OF FRASER: Settles Legal Dispute with Landlords
-----------------------------------------------------
BBC News reports that House of Fraser has settled a legal row
with a group of landlords removing one hurdle to a potential
rescue deal.

The deal means the department store chain can go ahead with its
plan to close 31 of its 59 shops in January, BBC states.

The landlords had argued slashing rents on remaining stores was
unfair to them, putting the rescue plan in jeopardy, BBC relates.

However, the deal will not be enough to safeguard House of
Fraser's future, with it now urgently seeking fresh investment in
order to survive, BBC notes.

House of Fraser, as cited by BBC, said it was now "focused on
concluding discussions with interested investors" and the out-of-
court settlement with the landlords had removed "any risk to
those discussions"

According to BBC, Richard Lim, boss of independent research
consultancy Retail Economics, says it is still "hard to know with
any certainty just what will happen next at House of Fraser."

"But it is in desperate need of a rescue package.  Without any
external funding it is inevitable it will fall into
administration.

"Funding will have to be in place within a matter of weeks,
rather than any longer period, if House of Fraser is to have a
fighting chance to ensure its future."

The retailer employs 17,500 people -- 6,000 direct and 11,500
concession staff, BBC discloses.


TRITON UK: S&P Assigns Preliminary 'B' ICR, Outlook Negative
------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B' long-term issuer
credit rating to Triton UK Midco Ltd., a new intermediate holding
company and issuing entity. The outlook is negative.

S&P said, "At the same time, we assigned our preliminary 'B'
issue rating to the proposed $415 million secured term loan and
$50 million revolving credit facility (RCF). The recovery rating
is '3', reflecting our expectation of meaningful (50%-70%;
rounded estimate: 60%) recovery prospects in the event of a
payment default.

"These ratings are preliminary and based on draft documentation.
Final ratings will depend on our receipt and satisfactory review
of the final documentation within a reasonable period upon the
successful closing of the transaction."

U.K.-based Triton is a global provider of video infrastructure
technology carved out of Cisco's Service Provider Video Software
Solutions business. Triton consists of NDS, which represents
about two-thirds of the past 12 months' revenues for the period
ending Jan. 1 2018, and the Infinite Video Platform (IVP)
division. NDS is primarily involved in the provision of
conditional access security solutions and middleware services
that secure content and enable features for pay TV set top boxes.
IVP offers video processing and cloud-based video recording and
access platforms for multi-device premium video consumption.

S&P said, "The rating on Triton primarily reflects our
expectation of 5%-12% revenue decline over the medium term as
Triton faces multiple structural headwinds in its key markets,
coupled with prospects of negative free operating cash flows in
fiscal 2019-2020 partly due to large restructuring costs. This is
only partly mitigated by some revenue visibility, with about 45%
of revenues being recurring and a solid cash position of about
$71 million at transaction close."

In its NDS division, the introduction of new gateways is putting
pressure on smartcard fees and the transition toward new cloud-
based platforms is also hitting middleware revenues.
Additionally, the company faces headwinds in its video processing
division as customers switch from legacy hardware products to
cheaper next generation products.

S&P said, "Our assessment of Triton's business is further
constrained by the company's high customer concentration, with
the top 10 customers accounting for roughly 65% of total sales.
This has previously depressed the company's operating results, as
prices on certain contracts in the NDS division have been
negotiated downward by large customers since 2016. That said, as
these contracts were recently negotiated and are relatively long
term (at least four years), we do not expect any further price
decline from contract renegotiation by large customers in our
base case. We see the company as less diversified than some of
its peers in the set up box and home connectivity space, such as
Arris International or Technicolor S.A, due to its niche focus on
video content security and video processing. During the 12 months
ending Jan. 1, 2018, Triton generated 66% of its revenues through
its NDS division and 27% through Video Processing, with the
balance coming from Cloud Products. Finally, we view Triton's
operating profitability as below average for the industry, with
pro forma S&P Global Ratings-adjusted EBITDA margins of roughly
7% in fiscal 2017. In our opinion, this is due to high levels of
restructuring expense linked to employee severance and a still
sub-optimal cost structure. Still, we expect that the company's
overall profitability could improve as it cuts research and
development (R&D) expenditure significantly over the next three
years.

"Our view of the business is balanced by Triton's solid position
as one of the top two players in the video content security
space, with an estimated market share of 22% based on revenues
for the financial year ending July 31, 2017 (FY2017). We believe
that Triton benefits from some degree of revenue visibility due
to its naturally long-term contracts with customers in the NDS
and IVP divisions. We note that average contract length was more
than four years in NDS and more than seven years in IVP. We also
believe that revenue visibility benefits from a relatively high
portion of recurring revenue with an estimated 45% of total
revenues coming from smartcard subscription fees and services in
the NDS division, as well as services offered in IVP. We believe
that the business further benefits from Triton's longstanding
relationships with its key customers, with average tier one
customer tenure of more than 10 years and no significant customer
losses over the past five years. Finally, we believe that
Triton's product are well embedded in its customer's products,
especially in the NDS division where significant switching costs
exist in order for customers to change suppliers.

"Our assessment of Triton's financial risk profile mainly
reflects the relatively high initial S&P Global Ratings-adjusted
gross leverage of about 6x based on forecast FY2018 EBITDA.
However, we recognize that there is the scope for significant
short-term reductions in leverage if the company reduces the
amount of R&D spending in the coming two years. We therefore
forecast that the company's adjusted gross debt leverage will
decline to about 5.3x-5.6x  in 2019 and below 5.0x in 2020,
mostly through EBITDA growth as the decline in the company's
fixed costs more than compensates for the forecast decline in
revenue.

"Our assessment of Triton's financial risk profile also takes
into consideration the expectation of negative reported free
operating cash flows (FOCF) of $10 million-$20 million in FY2019
and negative $10 million-$5 million in FY2020 due to meaningful
severance expense linked to the company's restructuring efforts
and the expected decline in revenue. We believe that short-term
execution risk linked to the carve out of the company from Cisco,
as well as the envisaged restructuring effort, could hinder the
company's free cash flow generation over the short term.

"Our financial metrics include standard adjustments to debt and
EBITDA for operating leases. We also do not provide any surplus
cash benefit for our adjusted debt figures due to the company's
financial sponsor ownership and our expectations of negative free
cash flow generation in fiscal years 2019-2020.

S&P's base case assumptions are:

-- Reported revenue falling by 10%-12% in FY2019 and 5%-7% in
    FY2020 compared with a decrease of about 13% in FY2018 due to
    a decline in NDS and IVP somewhat offset by growth in cloud
    products.

-- S&P said, "We forecast revenue decline of 20% in the NDS
    division for FY2018 followed by a fall of 10%-15% in FY2019
    and mid-single digit decline in FY2020. For FY2018, we
    believe that revenues will be depressed by a slowdown in the
    Chinese market and the renegotiation of a large contract with
    one of the division's largest customers. Going forward, we
    expect that revenues in NDS will be hit by a decline in
    smartcard related fees due to the introduction of new
    gateways as well as a continued decline in the company's
    middleware and firmware services."

-- Significant revenue growth in Cloud Products of 155% for
    FY2018 due to growth in CDVR and cloud platforms. S&P said,
    "We expect a low double-digit decline in 2019 due to CDVR
    transitioning to a software-only sales model. Going forward,
    we expect that the division's revenues will be the main
    driver of growth due to the gradual adoption of cloud-based
    video platforms."

-- S&P forecasts revenue decline of roughly 10% in FY2018,
    FY2019 and FY2020 in Video Processing, where customers are
    switching from legacy encoding hardware and video delivery
    systems to cheaper next-generation virtualized applications.

-- S&P Global Ratings-adjusted EBITDA margins of 10%-11% in
    FY2019 and 12%-14% in FY2020 from about 8.5% in 2018. The
    gradual margin improvements reflects a gradual cut in the R&D
    cost base as well as a reduction in restructuring expenses.
    S&P also expects some gross margin improvements in the
    company's Cloud Product division and the decline in low
    margin service contracts.

-- Moderate capital expenditure (capex) and working capital
    outflows of $30 million-$35 million per year in fiscal years
    2019 and 2020. This is based on S&P's assumptions of stable
    capex to sales of around 2.5% and outflows related to accrued
    compensation expenses in the initial years of operations.

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

-- Debt to EBITDA of about 6x at closing based on FY2018 EBITDA,
    decreasing to 5.3x-5.6x in FY2019 and below 5x in FY2020.

-- Pro-forma funds from operations (FFO) to cash interest
    coverage of 2.0x for FY2018 improving to 2.6x in FY2019 and
    2.7x in FY2010.

-- Negative reported FOCF of $10 million-$20 million in FY2019
    and negative $5 million-$10 million in FY2020.

S&P said, "The negative outlook reflects that we could downgrade
Triton in the 12 months after the transaction close if stronger
than expected pressure on revenues or higher than expected
restructuring costs result in continued negative FOCF generation
and ultimately meaningfully impair the company's solid liquidity
position

"We could lower the rating on Triton if we expected the company's
revenue to decline by more than 10% in FY2020 or if the company
did not materially improve its EBITDA margin through R&D and cost
cuts, which would lead to a deterioration in credit metrics and
continued negative FOCF in excess of $10 million in FY2020.
Additionally, we would also consider a downgrade if the company's
liquidity position deteriorated.

"We would revise the outlook to stable if we anticipated that
free cash flow was on a clear trajectory to positive territory in
FY2020 while maintaining an adjusted FFO-to-cash-interest-
coverage ratio of at least 2.5x. In our view, this could be
achieved through better than expected revenue growth and cuts in
the fixed cost base."



                            *********

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

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

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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