/raid1/www/Hosts/bankrupt/TCREUR_Public/180810.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, August 10, 2018, Vol. 19, No. 158


                            Headlines


I R E L A N D

AVOCA CLO XVI: Moody's Assigns B2 Rating to Class F-R Notes
AVOCA CLO XVI: Fitch Assigns 'B-sf' Rating to Class F-R Debt
CONTEGO CLO V: Fitch Assigns 'B-(EXP)sf' Rating to Class F Debt
CVC CORDATUS VII: S&P Affirms B- (sf) Rating on Class F Notes
HALCYON LOAN: Fitch Assigns 'B-sf' Rating to Class F Debt


L U X E M B O U R G

GCL HOLDINGS: Moody's Withdraws B2 CFR on Sale Completion


N E T H E R L A N D S

CONSTELLIUM NV: Moody's Hikes CFR & Sr. Unsecured Rating to B2
PANGAEA ABS 2007-1: S&P Affirms CCC- (sf) Rating on Class D Notes


R U S S I A

CB BOOM-BANK: Liabilities Exceed Assets, Assessment Shows
STATE TRANSPORT: S&P Affirms 'BB-/B' ICRs, Outlook Positive


U N I T E D   K I N G D O M

BEAUFORT: TSC Named Principal Nominated Broker for Client Money
GLOBAL PORTS: Fitch Affirms 'BB' IDRs & Alters Outlook to Stable
HOUSE OF FRASER: Sets Aug. 20 Deadline to Secure Fresh Funding
HOUSE OF FRASER: West End Store Staff Can Relocate to Jenners
POUNDWORLD: Ireland's Henderson Family Agrees to Buy 50 Stores


X X X X X X X X

* BOOK REVIEW: EPIDEMIC OF CARE


                            *********



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

EUR 3,000,000 Class X Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aaa (sf)

EUR 265,500,000 Class A-1R Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aaa (sf)

EUR 13,500,000 Class A-2R Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aaa (sf)

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

EUR 9,000,000 Class B-2R Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aa2 (sf)

EUR 16,300,000 Class B-3R Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aa2 (sf)

EUR 16,900,000 Class C-1R Deferrable Mezzanine Floating Rate
Notes due 2031, Definitive Rating Assigned A2 (sf)

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

EUR 20,400,000 Class D-R Deferrable Mezzanine Floating Rate Notes
due 2031, Definitive Rating Assigned Baa2 (sf)

EUR 29,500,000 Class E-R Deferrable Junior Floating Rate Notes
due 2031, Definitive Rating Assigned Ba2 (sf)

EUR 13,500,000 Class F-R Deferrable Junior Floating Rate Notes
due 2031, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive ratings of the notes address the expected loss
posed to noteholders. The definitive ratings reflect the risks
due to defaults on the underlying portfolio of assets, the
transaction's legal structure, and the characteristics of the
underlying assets.

The Issuer issued the Refinancing Notes in connection with the
refinancing of the following classes of notes: Class A Notes,
Class B Notes, Class C Notes, Class D Notes, Class E Notes and
Class F Notes due 2029 (the "Original Notes"), previously issued
on June 30, 2016 (the "Original Closing Date"). On the
Refinancing Date, the Issuer will use the proceeds from the
issuance of the Refinancing Notes to redeem in full its
respective Original Notes. On the Original Closing Date, the
Issuer also issued EUR46.0M of Subordinated Notes, which will
remain outstanding.

The interest payment and principal repayment of the Class A-2R
(junior Aaa (sf) rated) Notes are subordinated to interest
payment and principal repayment of the Class X Notes and the
Class A-1R Notes.

Avoca CLO XVI is a managed cash flow CLO. At least 96% of the
portfolio must consist of senior secured loans and senior secured
floating rate notes and up to 4% of the portfolio may consist of
unsecured loans, second-lien loans, mezzanine obligations and
high yield bonds. The underlying portfolio is expected to be 100%
ramped as of the Refinancing Date.

KKR Credit Advisors (Ireland) Unlimited Company ("KKR") will
manage the CLO. It will direct the selection, acquisition and
disposition of collateral on behalf of the Issuer and may engage
in trading activity, including discretionary trading, during the
transaction's 4.25 years reinvestment period. Thereafter,
purchases are permitted using principal proceeds from unscheduled
principal payments and proceeds from sales of credit risk
obligations, and are subject to certain restrictions.

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

Methodology Underlying the Rating Action:

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

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

The rated notes' performance is subject to uncertainty. The
notes' performance is sensitive to the performance of the
underlying portfolio, which in turn depends on economic and
credit conditions that may change. KKR'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 modelling assumptions:

Par Amount: EUR450,000,000

Diversity Score: 42

Weighted Average Rating Factor (WARF): 2750

Weighted Average Spread (WAS): 3.35%

Weighted Average Coupon (WAC): 4.50%

Weighted Average Recovery Rate (WARR): 44%

Weighted Average Life (WAL): 8.5 years

Moody's has analysed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling (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 a LCC of below A3 further
limited to 5%. Given the current composition of qualifying
countries, Moody's has assumed a maximum 5% of the pool would be
domiciled in countries with LCC of Baa1 to Baa3. The remainder of
the pool will be domiciled in countries which currently have a
LCC of Aa3 and above. Given this portfolio composition, the model
was run with different target par amounts depending on the target
rating of each class of notes as further described in the
methodology. The portfolio haircuts are a function of the
exposure size to peripheral countries and the target ratings of
the rated notes and amount to 0.75% for the Class X and 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
an 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 3163 from 2750)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

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

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

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

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

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

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

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

Class D-R Deferrable Mezzanine Floating Rate Notes: -2

Class E-R Deferrable Junior Floating Rate Notes: -1

Class F-R Deferrable Junior Floating Rate Notes: -1

Percentage Change in WARF: WARF +30% (to 3575 from 2750)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

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

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

Class B-1R Senior Secured Fixed Rate Notes: -3

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

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

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

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

Class D-R Deferrable Mezzanine Floating Rate Notes: -2

Class E-R Deferrable Junior Floating Rate Notes: -2

Class F-R Deferrable Junior Floating Rate Notes: -3


AVOCA CLO XVI: Fitch Assigns 'B-sf' Rating to Class F-R Debt
------------------------------------------------------------
Fitch Ratings has assigned Avoca CLO XVI DAC final ratings, as
follows:

EUR3 million Class X: 'AAAsf'; Outlook Stable

EUR265.5 million Class A-1R: 'AAAsf'; Outlook Stable

EUR13.5 million Class A-2R: 'AAAsf'; Outlook Stable

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

EUR9 million Class B-2R: 'AAsf'; Outlook Stable

EUR16.3 million Class B-3R: 'AAsf'; Outlook Stable

EUR16.9 million Class C-1R: 'Asf'; Outlook Stable

EUR15 million Class C-2R: 'Asf'; Outlook Stable

EUR20.4 million Class D-R: 'BBBsf'; Outlook Stable

EUR29.5 million Class E-R: 'BBsf'; Outlook Stable

EUR13.5 million Class F-R: 'B-sf'; Outlook Stable

EUR46 million subordinated notes: not rated

Avoca CLO XVI DAC is a cash flow collateralised loan obligation
(CLO). Net proceeds from the notes are being used to redeem the
old notes, with a new identified portfolio comprising the
existing portfolio, as modified by sales and purchases conducted
by the manager. The portfolio is managed by KKR Credit Advisors
(Ireland) Unlimited Company (formerly KKR Credit Advisors
(Ireland)). The refinanced CLO envisages a further 4.25-year
reinvestment period and an 8.5-year weighted average life.

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'
range. The Fitch-weighted average rating factor (WARF) of the
current portfolio is 31.2.

High Recovery Expectations

At least 96% 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
current portfolio is 69.5%.

Diversified Asset Portfolio

The covenanted maximum exposure to the top 10 obligors for
assigning the ratings is 20% of the portfolio balance. The
transaction also includes limits on maximum industry exposure
based on Fitch's industry definitions. The maximum exposure to
the three largest (Fitch-defined) industries in the portfolio is
covenanted at 40%. These covenants ensure that the asset
portfolio will not be exposed to excessive concentration.

Portfolio Management

The transaction features a 4.25-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 five notches for the rated notes.

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

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

DATA ADEQUACY

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

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

SOURCES OF INFORMATION

The information here was used in the analysis.

  - Loan-by-loan data provided by Deutsche Bank as at June 29,
2018

  - Offering circular provided by Deutsche Bank as at August 8,
2018


CONTEGO CLO V: Fitch Assigns 'B-(EXP)sf' Rating to Class F Debt
---------------------------------------------------------------
Fitch Ratings has assigned Contego CLO V DAC expected ratings, as
follows:

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

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

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

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

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

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

M-1 Sub Notes: not rated

M-2 Sub Notes: not rated

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

BNPP AM Euro CLO 2018 B.V. is a securitisation of mainly senior
secured loans (at least 90%) with a component of senior
unsecured, mezzanine, and second-lien loans. A total note
issuance of EUR411.25 million will be used to fund a portfolio
with a target par of EUR400 million. The portfolio will be
actively managed by BNP Paribas Asset Management France SAS. The
CLO envisages a further four-year reinvestment period and an 8.5-
year weighted average life (WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'
range. The Fitch-weighted average rating factor (WARF) of the
identified portfolio is 33.66.

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 63.59%.

Diversified Asset Portfolio

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

Portfolio Management

The transaction features a 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 at the 'BB' level and two notches
for all other rating levels.

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

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

DATA ADEQUACY

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

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

SOURCES OF INFORMATION

The information here was used in the analysis.

  - Loan-by-loan data provided by the arranger as at June 12,
2018

  - Preliminary offering circular provided by the arranger as at
August 8, 2018


CVC CORDATUS VII: S&P Affirms B- (sf) Rating on Class F Notes
-------------------------------------------------------------
S&P Global Ratings affirmed and removed from CreditWatch negative
its ratings on CVC Cordatus Loan Fund VII DAC's class A-1, A-2,
B-1, B-2, C, D, E, and F notes.

S&P said, "The rating actions follow our assessment of the
transaction's performance using data from the latest available
performance reports, and the application of our relevant
criteria.

"On Feb. 27, 2018, we placed on CreditWatch negative all of our
ratings in CVC Cordatus Loan Fund VII due to weakened credit
metrics and reduced portfolio yield.

"We conducted our cash flow analysis to determine the break-even
default rate (BDR) for each rated class of notes. The BDR
represents our estimate of the maximum level of gross defaults,
based on our stress assumptions, that a tranche can withstand and
still fully repay the noteholders. We used the portfolio balance
that we consider to be performing, the reported weighted-average
spread, and the weighted-average recovery rates that we
considered to be appropriate. We incorporated various cash flow
stress scenarios using our standard default patterns and levels
for each rating category assumed for each class of notes,
combined with different interest stress scenarios as outlined in
our criteria.

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

"We performed our credit and cash flow analysis in line with our
corporate CDO criteria. The results indicate that the available
credit enhancement for the class A-1 to D notes is commensurate
with the currently assigned ratings. We have therefore affirmed
and removed from CreditWatch negative our ratings on the class A-
1 to D notes.

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

"Our credit and cash flow analysis shows that the available
credit enhancement for the class E and F notes is commensurate
with lower rating levels. However, as our ratings indicate a
forward-looking opinion, we recognize the possibility that the
notes could be refinanced in September 2018 (based on the
refinancing notice we received). In our view, if a refinancing is
executed, the original notes would be repaid at par. A
refinancing would also improve the transaction's cash flow
generation, as the cost of debt for the refinanced liabilities is
likely to be lower. As a result, we have affirmed and removed
from CreditWatch negative our ratings on the class E and F notes.

"If the refinancing is not executed, we would expect to lower the
ratings on certain classes of notes, which are showing a downward
rating pressure."

CVC Cordatus VII is a cash flow CLO transaction that closed in
August 2016. Its two-year noncall period ended in August 2018,
and its four-year reinvestment period ends in August 2020.

  RATINGS LIST

  CVC Cordatus Loan Fund VII DAC
  EUR454.20 Million Secured Floating-Rate And Fixed-Rate Notes
  (Including Subordinated Notes)

  Ratings Affirmed And Removed From CreditWatch Negative

  Class        Rating
          To             From

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


HALCYON LOAN: Fitch Assigns 'B-sf' Rating to Class F Debt
---------------------------------------------------------
Fitch Ratings has assigned Halcyon Loan Advisors European Funding
2018-1 Designated Activity Company final ratings, as follows:

EUR206.5 million Class A-1: 'AAAsf'; Outlook Stable

EUR9.5 million Class A-2: 'AAAsf'; Outlook Stable

EUR16.5 million Class B-1: 'AAsf'; Outlook Stable

EUR15 million Class B-2: 'AAsf'; Outlook Stable

EUR25.25 million Class C: 'Asf'; Outlook Stable

EUR22 million Class D: 'BBB- sf'; Outlook Stable

EUR20.25 million Class E: 'BB-sf'; Outlook Stable

EUR10.5 million Class F: 'B-sf'; Outlook Stable

EUR35.9 million subordinated notes: not rated

Halcyon Loan Advisors European Funding 2018-1 Designated Activity
Company is a cash flow collateralised loan obligation (CLO). Net
proceeds from the issuance of the notes will be used to purchase
a portfolio of EUR350 million of mostly European leveraged loans
and bonds. The portfolio is actively managed by Halcyon Loan
Advisors (UK) LLP. 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 places the average credit quality of the obligors in the
'B' range. The Fitch weighted average rating factor (WARF) of the
identified portfolio is 32.6, below the indicative maximum
covenant of 34.

High Recovery Expectations

At least 90% of the portfolio will consist of senior secured
obligations. Fitch views the recovery prospects for these assets
as more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch weighted average recovery rate (WARR) of the
identified portfolio is 63.5%, above the minimum covenant of 62%.

Stress Portfolio

The transaction will feature different Fitch test matrices with
different limits to the exposure to the largest 10 obligors
(maximum 18% and 26.5%). The manager can interpolate between
these matrices. For the analysis, Fitch created two stress
portfolios based on these obligor concentration limits and
additional portfolio profile tests and collateral quality tests.
The other portfolio profile and collateral quality tests included
an 8.5-year weighted average life, top industry limit at 17.5%
with the top three industries at 40%, and a maximum 'CCC' bucket
at 7.5%.

Limited Interest Rate Exposure

Up to 10% of the portfolio can be invested in fixed-rate assets,
while fixed-rate liabilities represent 4.3% of the target par.
Fitch modelled both 0% and 10% fixed rate buckets and found that
the rated notes can withstand the interest rate mismatch
associated with each scenario.

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 class E notes and to a
downgrade of up to two notches for all other rated notes.

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

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

DATA ADEQUACY

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

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

SOURCES OF INFORMATION

The information here was used in the analysis.

  - Loan-by-loan data provided by Citigroup as at May 24, 2018

  - Offering circular provided by Citigroup as at August 3, 2018


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


GCL HOLDINGS: Moody's Withdraws B2 CFR on Sale Completion
---------------------------------------------------------
Moody's Investors Service has withdrawn the ratings of GCL
Holdings S.C.A., the former holding company of Guala Closures
S.p.A., a leading provider of closures mainly for spirits and
wine bottles. This includes its B2 corporate family rating, its
B2-PD probability of default rating and its stable outlook. At
the time of withdrawal, there was no instrument rating
outstanding.

The action was prompted by the completion of the sale of
approximately 80% of Guala Closures to SPACE4 S.p.A. and other
co-investors, the subsequent business combination of Guala with
SPACE4 completed on July 31, 2018, the repayment of the rated
instruments on August 2, 2018 and the transition to the STAR
segment of the Italian Stock Exchange on August 6, 2018. As
result of these events, GCL will cease to be the holding company
and reporting entity of the group.

RATINGS RATIONALE

Moody's has withdrawn the ratings of GCL because the debt
obligations are no longer outstanding.

GCL Holdings S.C.A., incorporated in Luxemburg, was the holding
company of Guala Closures, one of the world's largest producers
of closures for the spirits and wine industries. Guala Closures
operates in 21 countries with 27 production plants and reported
turnover of EUR 535 million in 2017.

Withdrawals:
Issuer: GCL Holdings S.C.A.

Corporate Family Rating, Withdrawn, previously rated B2

Probability of Default Rating, Withdrawn, previously rated B2-PD

Outlook Actions:

Issuer: GCL Holdings S.C.A.

Outlook, Changed To Rating Withdrawn From Stable


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


CONSTELLIUM NV: Moody's Hikes CFR & Sr. Unsecured Rating to B2
--------------------------------------------------------------
Moody's Investors Service has upgraded the corporate family
rating (CFR) of Constellium N.V. to B2 from B3 and its
probability of default rating (PDR) to B2-PD from B3-PD.
Concurrently, Moody's upgraded the ratings on all senior
unsecured instruments to B2 from B3. The outlook on all ratings
is stable.

RATINGS RATIONALE

The rating action follows the recent announcement by Constellium
of its strong operating results for the six months ended in June
30, 2018, with full year guidance for EBITDA in 2018 being
revised upwards to 11%-13% growth y-o-y and EBITDA in 2019
expected to be over EUR500 million, which is one year ahead of
the previous guidance in 2020. The rating upgrade reflects the
significant improvement in underlying operating and financial
performance, driven by volume growth and cost efficiency
initiatives, which should underpin the return to positive free
cash flow (FCF) in 2019 and further deleveraging. In addition,
the deleveraging is also supported by the EUR200 million proceeds
from the sale of North Building Assets of the Sierre plant in
Switzerland in July 2018, which are earmarked to reduce debt.

In 6M 2018, Constellium reported a 22% increase in adjusted
EBITDA to EUR268 million on sales of EUR2.9 billion, up 6% year-
on-year. This was achieved despite some Midwest premium cost
pressure and ramp-up costs of automotive programs, which
constrained profitability in the Packaging & Automotive Rolled
Products (P&ARP) division. Shipment growth was solid and,
notably, the P&ARP business contributed nearly 60% of the
increase in group EBITDA. Automotive Structures and Industry
(AS&I), which is the highest margin business, accounted for a
further 23% of group incremental EBITDA, as higher shipments and
top-line growth of 13% underpinned results. Good cost control in
P&ARP, despite ramping up automotive programs, and Project 2019
run-rate cost savings of EUR32 million resulted in a 18% rise of
the group's EBITDA per ton to EUR341 (vs. EUR290 in H1 2017) and
EBITDA margin of 9.4%.

Overall, following the EUR259 million (net of EUR12 million
arrangement fees) rights issue completed in 2017 and the
successful refinancing of four senior notes tranches with three
unsecured notes issuances with lower financing costs and longer
maturities, Constellium further shored up its capital structure
and reduced financial leverage. In the 18 months to June 2018,
Constellium's Moody's adjusted gross leverage went down to 6.2x
from 8.8x at year-end 2016.

Nevertheless, Moody's notes that Constellium should still
generate negative FCF in a range of EUR90-100 million in 2018. On
a Moody's adjusted basis, FCF will be impacted by a large working
capital outflow of around EUR110 million, which should be a
temporary headwind due to metal market uncertainties, and is
expected to stabilize in the course of next year.

Looking ahead, Moody's expects Constellium to report EBITDA close
to EUR500 million in 2019, in line with management's recently
revised guidance. Assuming Moody's adjusted capex of around
EUR300 million, no dividends and stable working capital, Moody's
estimates that Constellium will become FCF positive of around
EUR30 million in 2019. Therefore, Moody's believes that
Constellium's adjusted financial metrics will be comfortably
positioned in the next 12-18 months, relative to the B2 rating,
with total debt to EBITDA and (CFO-Dividends) to total debt
forecast to be close to 5.4x and 11-%12% respectively at year-end
2019.

WHAT COULD CHANGE THE RATING UP/DOWN

Positive pressure on the rating could develop over time if
Constellium shows permanent reduction in debt leverage and
maintenance of financial policies underpinning a sustainable
improvement in financial metrics including: Moody's total debt to
EBITDA sustainably below 4.5x, (CFO-Dividends)/ total debt to be
at least 15% and consistent generation of positive FCF.

Conversely, the B2 rating would come under negative pressure
should Constellium experience significant deterioration in
operating performance failing to return to positive FCF in 2019
with EBIT margin below 5%, leading to Moody's total debt to
EBITDA remaining above 6.0x for a prolonged period of time, and a
liquidity profile weakening.

The principal methodology used in these ratings was Steel
Industry published in September 2017.

Headquartered in Netherlands, Constellium is a leading global
producer of value added aluminium products, used in a broad scope
of markets and applications, including aerospace automotive and
packaging. In 2017, Constellium reported sales of EUR5.24 billion
and adjusted EBITDA of EUR431 million.


PANGAEA ABS 2007-1: S&P Affirms CCC- (sf) Rating on Class D Notes
-----------------------------------------------------------------
S&P Global Ratings raised its credit ratings on PANGAEA ABS
2007-1 B.V.'s class B and C notes. At the same time, S&P has
affirmed its rating on the class D notes.

S&P said, "The rating actions follow our credit and cash flow
analysis of the transaction using data from the June 2018 trustee
report, and the application of our relevant criteria.

"We conducted our cash flow analysis to determine the break-even
default rate (BDR) for each rated class of notes. The BDR
represents our estimate of the maximum level of gross defaults,
based on our stress assumptions, that a tranche can withstand and
still fully repay the noteholders. We used the portfolio balance
that we consider to be performing, the reported weighted-average
spread, and the weighted-average recovery rates that we
considered to be appropriate. We incorporated various cash flow
stress scenarios using our standard default patterns and levels
for each rating category assumed for each class of notes,
combined with different interest stress scenarios as outlined in
our criteria.

"The transaction's reinvestment period ended in June 2013. Since
our previous review, the class A notes have fully amortized and
the class B notes have partially amortized.

"In our previous review, all of the collateral coverage tests
were breaching their required triggers. As of June payment date
report, the class D notes' collateral coverage was passing. The
interest coverage test continues to be in compliance.  As the
portfolio has deleveraged, obligor concentration has increased.
We have addressed this concentration risk in our analysis by
applying our largest-obligor default test, a supplemental stress
test that we outline in our corporate collateralized debt
obligation (CDO) criteria. This assesses whether a CDO tranche
has sufficient credit enhancement to withstand specified
combinations of underlying asset defaults, based on the ratings
on the underlying assets. The test assumes a flat recovery of 30%
for an original senior-most tranche and 0% for an original
subordinated tranche. Furthermore, the correlation assumptions
embedded in our CDO Evaluator model also address concentration
risk.

"The portion of performing assets not rated by S&P Global Ratings
is less than 15%. In this case, we apply our criteria "CDOs:
Mapping A Third Party's Internal Credit Scoring System To
Standard & Poor's Global Rating Scale," published on May 8, 2014,
to map notched ratings from another ratings agency and to infer
our rating input for the purpose of inclusion in CDO Evaluator.
In performing this mapping, we generally apply a three-notch
downward adjustment for structured finance assets that are rated
by one rating agency and a two notch downward adjustment if the
asset is rated by two rating agencies.

"Since our previous review, the proportion of assets rated in the
'CCC' category ('CCC+', 'CCC', and 'CCC-') and the proportion of
defaulted assets have remained stable in notional terms, while
the remainder of the portfolio has a larger proportion of
investment-grade assets. The credit quality of the remainder of
the portfolio remained similar to that observed as of our
previous review. We have observed that our scenario default
rates--the minimum level of portfolio defaults we expect each CDO
tranche to be able to support the specific rating level using our
CDO Evaluator model--have increased slightly, mainly due to the
increased concentration risk in the pool.

"With further deleveraging resulting in increased credit
enhancement, our credit and cash flow analysis indicates that the
available credit enhancement for the class B and C notes is
commensurate with today's rating actions. We have therefore
raised to 'AAA (sf)' from 'BB+ (sf)' our rating on the class B
notes, and have raised to 'BB+ (sf)' from 'B (sf)' our rating on
the class C notes.

"Our ratings on both the class B and C notes address timely
payment of interest and ultimate payment of principal. When
raising the ratings on these classes of notes, we looked at our
modeling assumptions, which suggested lower rating levels than
'AAA (sf)' and 'BB+ (sf)' for the class B and C notes,
respectively. This is in part due to our cash flow assumptions
(like bullet amortization versus gradual amortization, and
recovery on defaulted assets based on our CDO criteria versus the
market value of these assets from the trustee report). The
upgrades of these classes of notes were driven by the notes'
deleveraging, lower liability costs, and increased credit
enhancement."

The class D notes remain vulnerable to scenarios where there is
even one asset defaulting in the portfolio. The class D notes
continue to defer interest payments as the class C notes are
breaching their overcollateralization test. S&P has therefore
affirmed its 'CCC- (sf)' rating on the class D notes as S&P
considers it unlikely that the notes will become current on their
interest in the near term.

PANGAEA ABS 2007-1 is a cash flow mezzanine structured finance
CDO transaction that closed in March 2007.

  RATINGS LIST

  Class                     Rating
                     To              From

  PANGAEA ABS 2007-1 B.V. EUR309.2 Million Asset-Backed Floating-
  Rate Notes

  Ratings Raised

  B                  AAA (sf)        BB+ (sf)
  C                  BB+ (sf)        B (sf)

  Rating Affirmed

  D                  CCC- (sf)


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


CB BOOM-BANK: Liabilities Exceed Assets, Assessment Shows
---------------------------------------------------------
The provisional administration to manage CB BOOM-BANK LLC as
appointed by Bank of Russia Order No. OD-1375, dated June 1,
2018, following the revocation of its banking license, conducted
an investigation of the bank's financial standing and identified
operations aimed at withdrawal of its assets through lending to
retail borrowers with dubious creditworthiness.

The results of inspection of the bank's financial standing
allowed the provisional administration to establish that the
value of its assets totalled no more than RUR1.3 billion and was
insufficient to cover its liabilities in the amount of RUR1.6
billion.

On July 23, 2018, the Arbitration Court of the Kabardino-Balkar
Republic recognized the Bank as insolvent (bankrupt). The state
corporation Deposit Insurance Agency was appointed as a receiver.

The Bank of Russia submitted the information on the financial
transactions bearing the evidence of criminal offence conducted
by the former management and owner of CB BOOM-BANK LLC to the
Prosecutor General's Office of the Russian Federation, the
Ministry of Internal Affairs of the Russian Federation and the
Investigative Committee of the Russian Federation for
consideration and procedural decision making.

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


STATE TRANSPORT: S&P Affirms 'BB-/B' ICRs, Outlook Positive
-----------------------------------------------------------
S&P Global Ratings affirmed its 'BB-/B' long- and short-term
issuer credit ratings on Russian leasing entity State Transport
Leasing Co. PJSC (STLC). The outlook remains positive.

S&P said, "The affirmation stems from our view that STLC -- an
instrument for modernization and development of the Russian
transport sector -- continues to benefit from a moderately high
likelihood of extraordinary government support in the event of
financial stress. This rating support, coupled with the stronger
credit quality of the company's sole owner, the Russian
government, compensates for, in our view, STLC's weakened capital
position."

The company's business position is supported by its role in
carrying out government policy, as well as its stable franchise
and business model, which are closely linked with government-
supported projects. Although the leasing market remains highly
competitive, with a large number of private- and public-sector
players, STLC has a unique role in the government's import-
substitution policy in the transport sector through the Sukhoi
Superjet 100 project and other aviation initiatives.

In addition, STLC is involved in implementing government programs
for noncommercial leasing in certain key segments of the
transport sector, such as energy efficiency leasing, maritime
leasing, and the development of transport-logistics
infrastructure. These activities are important for the transport
industry's long-term development but not attractive for private
leasing companies because of their long-term and capital-
consuming nature and low margins. Moreover, S&P understands that
the Russian government might lean on the company to achieve its
post-presidential election policy targets related to the
acceleration of transport infrastructure development. This could
further improve STLC's importance to the government and cement
its status as the government's key transport development agency
and lease financing vehicle.

As a result of its expanding role in the realization of
government policy, STLC's leasing portfolio has more than tripled
since 2014, placing it in the No. 1 spot in Russia in terms of
both total leasing portfolio and new business volumes generation.
STLC maintains leadership in major segments of the transport
sector (aviation, rail, and water), benefiting from state capital
injections that allow extensive business-volume growth.

S&P said, "At the same time, we note that STLC's risk-weighted
assets growth outpaced that of the capital base. As a result, we
observed STLC's capital buffers measured by our risk-adjusted
capital (RAC) ratio falling to 8.6% as of end-2017 from 11.06% as
of end-2016. Profitability is not the company's or its
shareholder's key priority, given its involvement in
noncommercial leasing and its public role. Therefore, we do not
expect any meaningful improvement in STLC's weak earnings
capacity. The balance between anticipated growth levels above the
market average (expected 30% versus 20% for the market) and
projected capital injections from the state drive our forecasted
RAC close to, but not sustainably above, 10% in 2019-2020."

STLC has higher single-name and sector concentrations than other
peer leasing companies; the 20-largest lessees represent about
80% of the gross leasing portfolio, while the exposure to the
largest client reduced to about 13% of the total lease portfolio
from about 30% a year ago. However, the company's asset quality
favorably compares with that of peers with nonperforming loans
(90+ days and foreclosed assets) of 0.52% at end-2017 (which are
79% covered by provisions) and averaged 3.3% over 2013-2017. S&P
said, "We consider the quality of STLC's portfolio to be
vulnerable to swings in operating conditions, particularly due to
single-name concentration in riskier operating leasing
activities. We note, however, that those risks are somewhat
offset by STLC's increasing expertise in residual-value risk
management as well as by special reserves for future fleet
maintenance."

S&P said, "We consider STLC's funding profile to be in line with
the average for nonbanking financial institutions in Russia.
Despite the wholesale nature of its funding sources, STLC
adequately finances its long-term leasing contracts with long-
term funding. According to our estimates, the stable funding
ratio was 83.7% at end-2017 and somewhat above that of peers.
Despite the ratio being below 100%, we view the funding structure
as diversified with the public bonds, issued since 2013,
accounting for about 60% of total funding at end-2017 (the rest
comprised bank loans and financial lease liabilities).

"In our view, STLC's liquidity is adequate, since the company
generates enough cash to cover interest payments and other costs.
Our cash flow analysis shows that STLC's liquidity buffer exceeds
its monthly requirements by 1.3x on average over the coming two
years.

"We revised down our assessment of STLC's stand-alone credit
profile (SACP) to 'b' from b+' to reflect the company's
deteriorated capital position. We then apply, however, a two-
notch uplift to incorporate our view of STLC as a government-
related entity with a moderately high likelihood of receiving
extraordinary government." This is based on S&P's assessment of
STLC's:

-- Important role for the government. STLC is one of the
    government's policy tools, aimed at modernizing the transport
    sector by purchasing and leasing Russia-produced vehicles,
    aircrafts and equipment at subsidized rates. After being a
    key agent in the government policy in support of road
    construction equipment and machinery in 2010-2013, S&P
    expects STLC to play an increasing role in the government
    aviation leasing programs, in particular with
    commercialization of Sukhoi Superjets. The project is
    important to Russia's overall strategy of import-substitution
    and regional aviation development, and the government is
    active in supporting it.

-- Strong link with Russian government due to full ownership and
    strong oversight of the company's business and strategy. S&P
    understands that the company will not be privatized over the
    next three years, since it will continue to implement the
    government's agenda to support the transportation industry.
    Moreover, STLC's strategy is under the supervision and
    coordination of the government, including the Ministry of
    Transport and the Ministry of Industry and Trade of the
    Russian Federation.

S&P said, "The positive outlook on STLC reflects our view of the
potential for a stronger role in carrying out government policy
or closer link with the Russian government and, in turn, a higher
likelihood of state support.

"We could take a positive rating action in the coming 12 months
if we observed that the government's existing plans to expand the
pipeline and scope of projects for the company solidified its
position as one the largest development entities in the transport
sector and therefore strengthen its public policy role. Under
this scenario, STLC's balance sheet expansion would not
compromise its stand-alone credit profile, i.e. would be
supported by timely and adequate capital injections from the
government. A positive rating action could also result from a
stronger link between STLC and the government, demonstrated, for
example, by the provision of state guarantees against STLC's debt
liabilities or a longer track record of timely extraordinary
support.

"We could revise the outlook to stable within the next 12 months
if STLC's role for the government does not strengthen, as
signalled by the company's weaker-than-currently-planned
involvement in state-funded transport-related programs, reducing
market share, or its replacement by other state-owned entities to
carry out a similar public mandate.

"Ratings downside could also build if we observed a weakening of
STLC's risk management systems, for example, via pronounced
deterioration of asset quality or an elevation of residual value
risk."


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


BEAUFORT: TSC Named Principal Nominated Broker for Client Money
---------------------------------------------------------------
Carolyn Cohn at Reuters reports that The Share Centre Ltd (TSC)
will become the principal nominated broker for the transfer of
client money and assets of part of collapsed broker Beaufort.

According to Reuters, administrators PwC said on Aug. 8 they are
also in discussion with a second nominated broker for those
clients previously managed by Beaufort Asset Clearing Services'
Welsh office in Colwyn Bay.

Britain's Financial Conduct Authority placed Beaufort, a leading
adviser to companies listed on London's junior market, into
insolvency in March, Reuters recounts.

PwC, as cited by Reuters, said Beaufort Asset Clearing Services
has client assets of GBP570 million and client money of GBP50
million.


GLOBAL PORTS: Fitch Affirms 'BB' IDRs & Alters Outlook to Stable
----------------------------------------------------------------
Fitch Ratings has revised Global Ports Investments Plc's (GPI)
Outlook to Stable from Negative, while affirming the group's
Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) at 'BB'. It has also affirmed Global Ports Finance PLC's
USD700 million senior secured notes (Eurobonds) at 'BB' and RUB15
billion senior unsecured notes issued by JSC First Container
Terminal (FCT) at 'BB'.

The revision of the Outlook to Stable reflects the resolution of
the litigation process with the Russian Federal Antimonopoly
Service (FAS) in GPI's favour and better-than-expected
containerised volumes in 2017 and 1H18, which led to leverage
outperforming its base case.

GPI's consolidated profile benefits from the group's dominant
position in the container market, albeit with potentially
increasing competition, limited expansion requirements, and a
mostly bullet maturity with covenants currently restricting
dividends distributions. In 2017 Fitch lease-adjusted net
debt/EBITDAR (leverage) was 4.8x, below its rating case of 5.4x.
Its rating case projects 2018-2020 leverage to average 4.3x
versus its previous expectation of 4.8x.

The Eurobond ratings are aligned with GPI's consolidated profile,
as the bonds are unconditionally guaranteed key consolidated
operating companies and the holdco.

KEY RATING DRIVERS

Exposure to High Price Elasticity and Competition - Volume Risk:
Midrange
GPI maintains its dominant position as one of the largest port
operators in Russia, with container handling terminals in the
Baltic and Far East, each with good modal connectivity.

GPI is exposed to high price elasticity of demand, as its price-
over-volume strategy has reduced its competitive position in a
market with spare capacity, resulting in severe container
throughput volume losses over 2015 and 2016. Moody's expects
competition to increase as new entrants seek to gain market
share, supported by a recent rebound in Russia's economy.

Unregulated UD Dollar Tariffs - Price Risk: Midrange

Regulation of container tariffs in Russia has been gradually
liberalised since 2010. Recent FAS initiatives to re-introduce
tariff regulation were dropped. GPI has a moderate ability to
raise tariffs and does not benefit from contracts with minimum
guaranteed volumes or long-term rent-like contracts.

Substantial Spare Capacity - Infrastructure Development &
Renewal: Stronger

GPI's medium-term throughput forecast is well below capacity. Its
1H18 capacity utilisation rate was 40%. On-site connecting
infrastructure is well-developed and does not need upgrades. GPI
benefits from a strong liquidity position. It expects to spend on
average USD30 million to USD35 million annually on maintenance.
Fitch views this as manageable as it is entirely self-funded
through free cash flow generation. Shareholder APM Terminals, one
of the world-largest terminal operators, brings operational
expertise and mitigates the risk of cost overrun on capital
spending.

Back-Ended Bullet Debt - Debt Structure: Midrange

The holdco is currently free of debt. As of December 31, 2017
USD1,075 million of outstanding and consolidated debt was senior
and fixed-rate; bullet debt accounted for about 90%. Post swap
all debt is 100% USD-denominated. The remaining bank loan at
subsidiary FCT level is structured as secured amortising
corporate debt, enhanced with lock-up covenants at the FCT and
group levels. Cash held on balance sheet of USD130 million as of
end-2017 mitigates the lack of committed liquidity lines. Its
liquidity analysis suggests that GPI is able to service debt
until end-2021. Moody's believes the presence of APM Terminals as
a well-reputed sponsor with a strong but informal commitment to
GPI is a supportive factor in GPI's refinancing process.

Financial Profile

Under Fitch base and rating cases, Moody's expected GPI's average
leverage in 2018-2020 to reach 3.8x and 4.3x, respectively. The
rating case does not factor in any shareholder distributions, in
line with GPI's stated zero dividend policy. A sensitivity stress
of an EBITDA margin reduction to 40% from 60% under Fitch base
case shows that projected leverage will increase by around 2x in
the following year.

Peer Group
GPI and Deloport are both rated 'BB' on a consolidated basis.
GPI's container throughput is over 4x greater than Deloport's.
GPI has a dominant position in Russian container market and more
transparent corporate governance, as it is listed on the London
Stock Exchange. However, Deloport benefits from a lower three-
year average leverage at 3.3x than GPI's 4.3x and has a more
balanced export/import mix with grain exports partially
offsetting the import-oriented container business.

Mersin (BB+/Negative) is of similar size to GPI and also plays a
dominant role in its home market of Turkey. Its cargo import and
export mix is more balanced than GPI's, which is more exposed to
the Russian recessionary environment. Mersin's lower leverage
supports the company's higher rating; however, Fitch's Country
Ceiling on Turkey caps Mersin's rating.

RATING SENSITIVITIES

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

  - Fitch-adjusted GPI's consolidated debt/EBITDA remaining above
4.5x over a three-year horizon under Fitch rating case

  - A change in shareholder structure with the co-controlling
shareholder APM Terminals disposing partly or entirely its stake
in GPI, which may affect its analysis of some rating factors such
as refinancing risk and potentially GPI's ratings

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

  - GPI's leverage firmly on a downward path with lease-adjusted
net debt-to-EBITDA falling below 3.5x over a three-year horizon

CREDIT UPDATE

Performance Update

After continued throughput and market share contraction in 2015
and 2016, GPI lost further market share during 2017 as its
volumes grew only 7% YoY, materially less than the Russian
market's 16%. During 1H18 GPI showed signs of recovery, slightly
outperforming the market.

GPI's overall market share fell to the current 28%, from 30% in a
consolidated basis in 2016, due to free container capacity
available in the market and the price-over-volumes policy that
GPI applied in previous years. Although GPI's revenue per TEU
fell 10% in 2017 and again in 1H18, this has yet to be translated
into regaining lost market share.

Total revenue remained stable during 2017, driven by increase in
volumes in marine bulk cargo (22% YoY). Growth in marine bulk and
car cargo continued during 1H18. EBITDA decreased further in 2017
(-8%), given stable revenue and lower margins. For 1H18 Moody's
expects revenue and EBITDA margin to have improved on the back of
continued growth in container and bulk volumes.

Change in Denomination of Tariffs
FAS initiatives to re-introduce tariff regulation in 2016 were
dropped after independent studies concluded the market was
competitive. Nevertheless, FAS continued to pursue its legal
cases initiated against nine Russian key port operators,
including three key subsidiaries of GPI. The allegation related
to potential breach of anti-monopoly laws in relation to the
pricing of stevedoring services at Russia's ports. In 1Q17 GPI's
subsidiaries were found guilty by FAS and GPI appealed the
allegations. The Moscow Arbitrage Court approved the terms of a
settlement agreement between FAS and GPI terminals. The
settlement was small and did not materially impact GPI's
financials.

In March 2018 FAS again sought to oblige GPI to set its handling
tariffs in RUB on an "economically justified level". The case was
dissolved in July 2018 with FAS stating that prices for
stevedoring services in Russian ports remain market-driven and
are not subject to regulation.

Currently an amendment to the Law on Seaports is under
discussion. This new law stipulates that all handling tariffs in
Russian ports should be denominated in RUB instead of USD.
However, Fitch understands from GPI that this change will only be
applicable from 2025 onwards to legal entities which as of
January 1, 2018 had foreign currency debt, as is the case for
GPI. Given the positive resolution of FAS allegations over GPI's
terminals, Moody's does not expect a change in denomination of
GPI's tariffs in the next years. Moody's will monitor
developments as it remains to be seen whether rouble tariffs
could be indexed to changes in the USD/RUB exchange. If not, such
regulation would reduce the natural hedge of GPI's foreign
currency-denominated debt and might impact GPI's margins.

Change in Shareholders

Managmenet Company Delo LLC (MC Delo), part of Delo Group,
acquired in December 2017 a 30.75% stake in GPI from the previous
shareholder Transportation Investment Holding Limited (TIHL).
Delo Group is a large private transportation and ports logistics
holding company in Russia. It operates two port terminals and
five inland terminals and employs a workforce of over 2,000
people. It had revenue of USD151 million and EBITDA of USD104
million in 2017. Fitch does not expect any negative impact on GPI
from the change in shareholders.

Fitch Cases

Fitch's base case assumes 1.9%-1.5% yoy growth of volumes in line
with the agency's Russian GDP forecast; average revenue per TEU
to remain flat at USD200/TEU from 2018, yoy EBITDA margin to
decline to 57% in 2022 from 61.1% in 2017 to reflect inflation
and no dividends from subsidiaries in line with management
expectations. In 2018-2020 its capex stress analysis includes a
15% increase on top of management's projections, while Moody's
applies higher stresses in 2020 and 2021 to achieve at least
USD25 million capex.

Fitch's rating case assumes 1% yoy growth of volumes from 2019;
average revenue per TEU on containers at USD200/TEU in 2018 and
then flat at USD182/TEU from 2019 and EBITDA margin to decline to
55% in 2022 from 61.6% in 2018. In 2018-2020 capex stress
includes 20% increase and Moody's applies a higher stress in 2021
and 2022 to achieve at least USD30 million capex.

Asset Description

GPI is a holding company and the leading container terminal
operator serving Russian cargo flows in the Baltic and the Far-
East basins. The group's main business is container handling. In
addition, the group handles a number of other types of cargo,
including cars and other types of roll-on roll-off cargo and bulk
cargoes. Its three main subsidiaries are the container terminals
FCT, Petrolesport and Vostochnyj, which are 100% owned by the
group.


HOUSE OF FRASER: Sets Aug. 20 Deadline to Secure Fresh Funding
--------------------------------------------------------------
BBC News reports that struggling department store chain House of
Fraser has set a deadline of Aug. 20 to secure fresh funding.

The company, BBC says, is planning to close 31 of its 59 shops in
January, but is also seeking fresh investment to survive.

House of Fraser told the Luxembourg stock exchange that
"discussions continue" with potential investors, BBC relates.

According to BBC, the talks are "focused on concluding as quickly
as possible to enable receipt of an investment required by no
later than August 20, 2018".

That is the date when the department store business needs to make
payments to its concession customers, BBC notes.

However, an agreement could be reached far sooner than that, BBC
states.

House of Fraser employs 17,500 people -- 6,000 directly and
11,500 concession staff, BBC discloses.

In the statement in Luxembourg, where it has bond investors,
House of Fraser, as cited by BBC, said it would provide further
updates "as and when appropriate".


HOUSE OF FRASER: West End Store Staff Can Relocate to Jenners
-------------------------------------------------------------
Diane King at The Scotsman reports that a House of Fraser
spokesperson confirmed that workers at the company's West End
store have been told they can relocate to Jenners when the store
closes next month.

The West End department store is to close earlier than expected
next month after the landlord served notice to quit, The Scotsman
discloses.  It was among the 31 stores earmarked for closure in
the Company Voluntary Agreement (CVA) proposal announced in June,
The Scotsman notes.


POUNDWORLD: Ireland's Henderson Family Agrees to Buy 50 Stores
--------------------------------------------------------------
James Davey and Padraic Halpin at Reuters report that Ireland's
Henderson family said on Aug. 9 it had agreed to buy around 50
Poundworld stores, having struck a deal with the administrator of
the collapsed British discount retailer.

The 335-store Poundworld went into administration in June after
its majority owner, the private equity group TPG Capital, failed
to find a buyer for the struggling business which had a total
workforce of about 5,100, Reuters recounts.

Administrator Deloitte said last month that all Poundworld stores
would close by the middle of August, Reuters recounts.

According to Reuters, David Henderson said in a statement his
family's offer to purchase "the best and remaining stores" had
been accepted by Deloitte.  He did not disclose how much the
family would pay, Reuters notes.


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


* BOOK REVIEW: EPIDEMIC OF CARE
-------------------------------
Author: George C. Halvorson
        George J. Isham, M.D.
Publisher: Jossey-Bass; 1st edition
Hardcover: 271 pages
List Price: $28.20
Order your personal copy today at https://is.gd/0ChYOC

Halvorson and Isham worked together as leaders of the Minneapolis
health-care organization HealthPartners; Halvorson as chairman
and CEO, and Isham as medical director and chief health officer.
From their positions as leaders in the health-care field, they
have gained a broad, thorough understanding of the structure,
workings, and the problems of America's health-care system. Their
"Epidemic of Care" written in a readable, lucid, jargon-free
style is a timely work for anyone interested in the pressing
matter of satisfactory health care in America. This includes
government workers, politicians, executives of HMOs and
hospitals, and critics of health care, to individuals making
choices about their own health care. It is a notable work both
practical and visionary that one hopes legislators and heads of
HMOs will take in. For Halvorson and Isham make their way through
the daunting complexities of today's health-care system to put
their finger on its core problems and offer practicable solutions
to these.

The two main problematic issues of contemporary health care are
health-care costs and quality of care. These two authors offer
solutions taking into consideration both of these. They put forth
balanced proposals instead of the many one-sided ones which
stress cutting costs at the expense of care or favor care
regardless of costs, costs usually born by government from tax
revenues. In the authors' comprehensive, balanced proposals,
corporations and businesses of all sizes, government agencies,
health-care organizations of all types, state and local
governments and health organizations, and also individuals work
together cooperatively for the goal of affordable, effective, and
widespread up-to-date health care.

Before outlining their program for dealing with the problems in
health care, which are only growing worse in the present system,
the authors relate information on different parts of today's
system most readers would not be aware of. Then they analyze it
to focus in on what is causing the problems in the particular
area of health care. In some cases, misconceptions held among the
public are cleared up, paving the way toward agreement on what
are the real problems and coming up with acceptable solutions for
them. The percentage of the cost of HMO membership and insurance
premiums going for administration is one such misconception.
"People guess, in fact, that HMO and insurance administration
costs are about 30 to 40 percent of premiums and that insurer
profits add another 10 to 20 percent of the total cost." This
means that anywhere from about 40 percent to 60 percent of
payments for HMOs or insurance doesn't go for health care.
The authors clear up this misconception giving rise to much
confusion in trying to deal with the serious problems facing the
health-care field, as well as a good deal of resentment against
HMOs and insurance companies, by citing that "health plan
administrative costs, including profits and marketing, average
from 5 to 30 percent of total premium, depending on the plan."
This leads to the conclusion that it is not a sudden rise in
administrative costs or the greed of health-care providers that
is mainly responsible for driving up the costs of health care and
will continue to do so for the foreseeable future without
effective change in the field. Rising costs of health care from
new technologies, consumer expectations and demands, and also
misuse of drugs and treatments making patients worse or
prolonging their medical problems are the main reason for the
rising costs. The frequent misuse of modern-day medicines and
treatments cited by the authors is an issue that is starting to
receive attention in the media.

The price of prescription drugs is one health-care issue already
receiving much attention that the authors address. In this
discussion, they note that because of committees of physicians
and pharmacologists set up by HMOs to identify which drugs were
most effective for specific medical problems and set standards
for prescribing these according to HMO policies, "all Americans
benefited from the new focus on drugs that actually work." Before
these committees, eighty-four percent of drugs developed by the
pharmaceutical companies were what were know as "class C" drugs
that were little better than placebos. As the authors note, in
those days not so long ago, drugs were being developed and
marketed more to generate sales than remedy medical conditions.
The high cost Americans pay for prescription compared to buyers
in other countries is another matter the two authors take up. In
this, they take the position of American buyers of prescription
drugs by making the point that they should not be singled out to
bear the disproportionate share of the research and marketing
costs going into the drug prices since numbers of persons in
countries around the world gain health benefits from the drugs.
The wasteful similarities between some prescription drugs, the
misuse of some, and growing concerns over costs and use of the
drugs with persons under sixty-five are other topics dealt with
in the discussion and analysis of the issue of prescription
drugs.

Halvorson and Isham's fair-minded overview and critique of
today's heath-care field should be read by anyone with an
interest in and concern about this field central to the quality
of life of Americans and the economy. While they recognize that
the field's dysfunctions have such deep roots and thorny
complexities that "there is no single villain responsible for our
troubles and no silver bullet to cure them," undoubtedly some and
likely a number of the two authors' approaches to resolving
particular troubles or even their solutions to certain problems
will be adopted. There is just no way out of the current health-
care crisis other than the clear-sighted, comprehensive,
cooperative way Halvorson and Isham present.

George Halvorson is currently chairman and CEO of Kaiser
Permanente, one of the U. S.'s largest health-care organizations.
Isham continues as medical director and chief health officer of
HealthPartners.



                            *********

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,
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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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                 * * * End of Transmission * * *