/raid1/www/Hosts/bankrupt/TCREUR_Public/180831.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 31, 2018, Vol. 19, No. 173


                            Headlines


I R E L A N D

CAVENDISH SQUARE: S&P Affirms BB+ (sf) Rating on Class C Notes
OPENHYDRO: Main Shareholder Opposed to Examinership


L I T H U A N I A

MAXIMA GRUPE: S&P Assigns Prelim 'BB+' Rating to Sr. Unsec. Bonds


R U S S I A

MEGAFON PJSC: S&P Cuts Long-Term ICR to BB+, Outlook Stable
URAL BANK: S&P Affirms B-/B Issuer Credit Ratings, Outlook Stable
VIM AVIA: Injunction Halts City Leasing DAC's Liquidation


T U R K E Y

KOC HOLDING: S&P Cuts Issuer Credit Rating to BB-, Outlook Stable
TURKEY: Central Bank Takes Steps to Undo Emergency Bank Support


U N I T E D   K I N G D O M

ENSCO PLC: S&P Lowers Issuer Credit Rating to 'B-', Outlook Neg.
JAMIE'S ITALIAN: Jamie Oliver Vows to Turn Business Around
WONGA: Won't Give Out New Loans Amid Administration Rumors


X X X X X X X X

* BOOK REVIEW: The Financial Giants In United States History


                            *********



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


CAVENDISH SQUARE: S&P Affirms BB+ (sf) Rating on Class C Notes
---------------------------------------------------------------
S&P Global Ratings raised its credit ratings on Cavendish Square
Funding PLC's class A2 and B notes. At the same time, S&P has
affirmed its rating on the class C notes.

S&P said, "The rating actions follow our analysis of the
transaction using data from the June 29, 2018 trustee report, and
the application of our relevant criteria.

"Since our previous review, the class A1 notes have fully
redeemed, and the class A2 notes have amortized to 62% of their
initial size. As a result, all the rated notes benefitted from an
increase in their par coverage ratio.

"The credit quality of the portfolio of assets improved to an
average rating of 'BB' from 'BB-' at our previous review.

"The portion of performing assets not rated by S&P Global Ratings
is 25%. In this case, we apply our mapping criteria 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, for up to 15% of the
portfolio. We have treated the excess above 15% as 'CCC-'.

"The notes remain largely exposed to liquidity risk, with the
non-deferrable notes showing the greatest sensitivity. The
weighted-average spread reported by the trustee decreased to
1.26% from 1.35% at our previous review, while the weighted-
average cost of liabilities increased to 0.94% from 0.69% over
EURIBOR over the same period.

"Our cashflow analysis, performed in line with our global
collateralized debt obligations (CDOs) criteria, shows that in a
'A' category rating stress scenario, interest proceeds from the
portfolio will be insufficient to pay full and timely interest on
the class A2 notes. In the absence of sufficient principal
proceeds available for distribution on the exact same payment
date, payment of interest on the class A2 notes will be missed.
However, in our analysis we have also considered the increase in
par coverage, the portfolio's improved average rating, the
amortizing nature of the underlying assets, and the possibility
for the collateral manager to manage liquidity risk. Taking all
these factors into account, we have raised to 'A- (sf)' from 'BBB
(sf)' our rating on the class A2 notes, which is one notch above
our model results.

"Following the increase in par coverage and the portfolio's
average rating, our credit and cashflow analysis shows that the
class B notes can withstand the stresses we apply at a higher
rating than that currently assigned. Consequently, we have raised
to 'BBB+ (sf)' from 'BBB (sf)' our rating on the class B notes.

"Our cashflow analysis, performed in line with our global CDO
criteria, indicates a higher rating for the class C notes than
that currently assigned. However, the class C notes benefitted
the least from the increase in par coverage, and any action taken
by the manager to mitigate liquidity risk on the most senior
notes could introduce changes in the portfolio, which could
negatively affect the junior notes. Taking these factors into
account, we have affirmed our 'BB+ (sf)' rating on the class C
notes.

"Counterparty, operational, and legal risks are adequately
mitigated in line with our criteria."

Cavendish Square Funding is a cash flow mezzanine structured
finance CDO of a portfolio that comprises predominantly mortgage-
backed securities. The transaction closed in February 2006 and AE
Global Investment Solutions Ltd. manages it.

  RATINGS RAISED

  Cavendish Square Funding PLC
  EUR297.45 Million Secured Floating-Rate Notes Revolving Credit
  Facility Secured Fixed-Rate Notes And Subordinated Notes

                        Rating
  Class            To          From
  A2               A- (sf)     BBB (sf)
  B                BBB+ (sf)   BBB (sf)

  RATING AFFIRMED

  Cavendish Square Funding PLC
  EUR297.45 Million Secured Floating-Rate Notes Revolving Credit
  Facility Secured Fixed-Rate Notes And Subordinated Notes

  Class            Rating
  C                BB+ (sf)


OPENHYDRO: Main Shareholder Opposed to Examinership
---------------------------------------------------
Aodhan O Faolain and Ray Managh at Independent.ie report that the
main shareholder in the troubled renewable-energy developer
OpenHydro has told the High Court it is opposed to the group
going into examinership and instead favors liquidation.

Rossa Fanning SC, counsel for 71% shareholder Naval Energies SA,
said the decision to oppose examinership had been taken "more in
sorrow than adversity", Independent.ie relates.

According to Independent.ie, Mr. Fanning said his client believed
OpenHydro would suffer further losses if it continued to trade,
and French investor Naval's preference is that the group be wound
up.

Insolvency practitioner Ken Fennel was appointed interim examiner
to Dublin-based OpenHydro Group and its subsidiary -- Open Hydro
Technologies -- after the court heard that an independent
expert's report found there was a reasonable prospect of
survival, Independent.ie recounts.

The appointment was made following an application by shareholders
who own 12% of the group, some of whom had been involved in
establishing OpenHydro, Independent.ie notes.

The minority shareholders had claimed the business could survive
if it gets new investment, restructures and secures a debt-
cutting scheme of arrangement with creditors, Independent.ie
relays.

The application for examinership came weeks after the High Court
appointed Michael McAteer and Stephen Tennant of Grant Thornton
as joint provisional liquidators to OpenHydro, after being told
both companies were "seriously insolvent", with debts of
approximately EUR280 million, Independent.ie states.

In front of Mr. Justice Denis McDonald at the High Court on
Aug. 21, Mr. Fanning, as cited by Independent.ie, said Naval
Energies had invested more than EUR260 million in the group since
2013, but sought to have the company wound up after deciding to
cease funding the loss-making enterprises.

Naval Energise also claimed there was a breakdown in relations
between the group's senior management and its board of directors,
Independent.ie says.

OpenHydro develops turbines that generate electricity from tidal
energy.


=================
L I T H U A N I A
=================


MAXIMA GRUPE: S&P Assigns Prelim 'BB+' Rating to Sr. Unsec. Bonds
-----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' preliminary issue rating to
the EUR350 million senior unsecured bonds to be issued by
Lithuania-based Retailer Maxima Grupe UAB (BB+[prelim]/Stable/--
). S&P's long-term issuer credit rating on Maxima remains
unchanged.

S&P said, "The 'BB+' preliminary rating on the proposed senior
unsecured bonds reflects our assessment that in Maxima's debt
structure there is no material structural or contractual
subordination to the senior unsecured notes. In our assessment,
we take into account that there is no material secured debt in
Maxima's debt structure, following the refinancing. We also
factor in that the rated debt issued by Maxima under its euro
medium-term note (EMTN) program is senior unsecured,
unsubordinated, and ranks pari passu with the unsecured debt
standing at Maxima Grupe UAB."

Following the bond issuance, Maxima's capital structure will
consist of about EUR595 million of debt, the bulk of it being
represented by the new senior unsecured EUR350 million bond that
the group plans to issue. In addition, the group will still have
about EUR245 million of remaining secured debt or unsecured debt
standing at the subsidiaries level.

S&P said, "In assigning issue ratings, we consider the total
secured debt issued by the issuer and its subsidiaries, combined
with the unsecured debt issued by the issuer's subsidiaries, as
priority debt. When the priority debt comprises more than 50% of
an issuer's total consolidated debt, we consider that the
unsecured debt is inherently disadvantaged because the secured
lenders have priority over the unsecured lenders.

"In Maxima's case, we assess that the proportion of secured debt
and unsecured debt both at the group and subsidiaries level will
represent about 41%. As a result, we rate Maxima's debt at 'BB+',
the same as the issuer credit rating, since no significant
elements of subordination risk are present in the capital
structure. The bond issuance will be part of a wider unrated EUR1
billion EMTN program. However, we don't expect the program to be
tapped further in our base-case scenario."

The final rating will depend on the completion of the financing
and on our receipt and satisfactory review of all final
transaction documentation for the proposed bond. Accordingly, the
preliminary rating should not be construed as evidence of a final
rating. If S&P does not receive final documentation within a
reasonable time frame, or if the final documentation departs from
materials reviewed, it reserves the right to withdraw or revise
the rating. Potential changes include, but are not limited to:
maturity, size, and conditions of the facilities; financial and
other covenants; and security and ranking of the bond.


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


MEGAFON PJSC: S&P Cuts Long-Term ICR to BB+, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings lowered its long-term foreign and local
currency issuer credit ratings on Russia's second-largest
telecommunications operator, MegaFon PJSC, to 'BB+' from 'BBB-'.
S&P removed its ratings on MegaFon from CreditWatch where it
placed them with negative implications on July 27, 2018. The
outlook is stable.

The downgrade follows MegaFon's announcement that, as a result of
the tender offer made by its wholly owned subsidiary MegaFon
Investments (Cyprus) Ltd., it will purchase global depositary
receipts (GDRs) and ordinary shares in a mostly debt-financed
transaction. Combined, the GDRs and ordinary shares represent
18.6% of MegaFon's issued and outstanding shares totalling
Russian ruble (RUB) 76 billion (about $1.1 billion). Settlements
and payments are expected to be completed by Sept. 12, 2018.

Also pursuant to the decision of MegaFon's board of directors,
the company will commence the process of cancelling the listing
of its GDRs on the London Stock Exchange. S&P said, "We are also
mindful that the tender offer transaction coincides with
significant investment requirements for the implementation of
Russia's data-storage law (Yarovaya law), which will require a
cumulative RUB35 billion-RUB40 billion capital outlay within the
next five years, as per MegaFon's estimates. We forecast cash
capital expenditure (capex) in 2018 will increase by over 30%
year on year. At the same time, we believe that MegaFon will have
only limited capacity to increase tariffs to offset the higher
investment requirements."

S&P said, "We forecast that MegaFon's reported net debt to EBITDA
will increase to about 2.3x (from 1.7x as of June 30, 2018),
translating into S&P Global Ratings' adjusted debt to EBITDA
(main adjustments relate to operating leases) of 2.6x-2.7x at
year-end 2018, compared with our previous expectation of about
2.0x. We also expect that MegaFon's free operating cash flow
(FOCF) to adjusted debt will decline to around 5% at year-end
2018, compared with 11.5% at year-end 2017 and our previous
expectation of about 8%. We understand that MegaFon's financial
policy -- which targets reported leverage below 2.0x absent
mergers and acquisitions (M&A), and a dividend payout of 70% of
FOCF to shareholders when leverage is below 2.0x -- remains
unchanged. MegaFon paid no dividends for 2017 in 2018, and we
think dividends for 2018 might also be adjusted to facilitate
some deleveraging. However, we expect that company's adjusted
debt to EBITDA will still remain above 2.3x and FOCF to debt
ratio below 10% until 2020, which is not commensurate with a
'BBB-' rating.

"Our rating on MegaFon reflects its position as the second-
largest telecom operator in the Russian mobile market, its well-
invested network balanced by competition in Russia's telecom
market and high Russian country risk. MegaFon's financial risk
profile reflects somewhat weak FOCF generation balanced by a
relatively long debt maturity profile and minimal currency
exposure on the debt side. Our analysis incorporates our view
that MegaFon is exposed to a volatile regulatory environment,
which might weigh on the company's operating and financial
performance. This includes, among other things, remaining
uncertainty regarding the scale of investment due to Russian
data-storage law, the impact of the elimination of domestic
roaming on margins, and potentially higher frequency payments.

"The stable outlook reflects our expectations that MegaFon will
maintain adjusted debt to EBITDA below 3.0x and FOCF to debt of
5%-10%. We also expect that the company will post roughly stable
revenues and an EBITDA margin of about 40%-41%.

"We could raise the rating if MegaFon's ratios sufficiently
strengthen, including S&P Global Ratings' adjusted debt to EBITDA
below 2.3x and FOCF to debt above 10%, on a sustainable basis.
This could be achieved if the company reduces its capex, with the
capex to sales ratio returning to 17%-18% coupled with a more
conservative dividend payout than in our base case. Operating
performance at least in line with our expectation would also be
necessary for a positive rating action.

"We could lower the rating if MegaFon's adjusted debt to EBITDA
exceeded 3.0x or if its FOCF to adjusted debt was below 5% on a
protracted basis as a result of financial policy decisions, or if
we observed a pronounced weakening of operating performance. We
could also downgrade MegaFon in case of a significant increase in
Russian regulatory risk, for example related to the data-storage
law."


URAL BANK: S&P Affirms B-/B Issuer Credit Ratings, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B-/B' long- and short-term
issuer credit ratings on Russia-based commercial bank Ural Bank
for Reconstruction and Development (UBRD). The outlook is stable.

S&P said, "The affirmation reflects our view that UBRD's progress
in improving its asset quality is offset by its still weak
earnings capacity that restricts the bank's ability to support
growth or withstand increasing competition in the sector.

"In our view, over the past two years, the bank's asset quality
has improved, reflected in a progressive decline of nonperforming
loans (NPLs) and credit losses, as well as lower single-name
concentrations and exposure to related parties. As of March 31,
2018, UBRD's Stage 3 loans stood at about 3.4% of the gross loan
book, down from 5.9% at year-end 2016, due to significant write-
offs, with the cost of risk (COR) decreasing to 1.6% versus 3.0%
for 2017 and 6.7% for 2016. The significant decline in the bank's
credit losses over this period mainly reflects the continuing
improvement of its retail portfolio performance. Although the
recovery in the retail portfolio quality has been slower than for
other Russian universal and retail banks, sustainably low credit
losses and NPLs in the bank's corporate book has supported UBRD's
overall asset quality. The COR of the bank's corporate book has
been close to 0.3% over the past two years, with NPLs comprising
about 1.5% of the portfolio, which is significantly better than
that of peers.

"We also note that the bank has made material progress in exiting
lending business with international commodity traders, which
represented a significant part of the bank's corporate business
in the past (about 5% of the loan book at midyear 2018 compared
with almost 30% the previous year). In our view, the decline in
exposure to nonresidents has improved the bank's asset quality,
and reduced regulatory risk (including from the creation of
material provisions for such loans) and portfolio concentrations.
At midyear 2018, loans to the top-20 corporate borrowers
represented about 41% of the bank's gross loan portfolio, an
improvement from 45% at year-end 2017 and 53% at year-end 2016.
We expect the bank's portfolio diversification will continue to
improve until year-end 2018, with loans to the top-20 corporate
borrowers reducing to about 35% of the loan portfolio, which is
close to the system average.

"The bank's market position and customer franchise in the Ural
region remains sound. However, the bank is not yet able to
leverage much on its franchise, in our view. Therefore, we
continue to observe that the bank's net interest margin and
profitability lag those of peers, and its earnings capacity
remains weak. In our view, the bank cannot currently support
future growth or generate capital through earnings, which raises
concerns regarding its business model's sustainability in the
long term.

"UBRD's capitalization remains very weak. We expect the bank's
risk-adjusted capital (RAC) ratio will deteriorate to below 3.0%
over the next 12 months from 3.3% at year-end 2017. The expected
decline in capitalization reflects our expectation that the bank
will likely post losses over the next 12-18 months unless it
receives a substantial one-off income.

"We asses UBRD's funding as average and liquidity as adequate,
taking into account a large share of relatively stable and long-
term sources of funding in the bank's funding mix, and good
liquidity buffers sufficient to cover all liquidity needs in the
next 12-18 months. UBRD's funding and liquidity ratios are
broadly in line with those of peers. The bank's stable funding
ratio was 154% as of March 31, 2018, while its loan-to-customer-
deposits ratio was 66.7% on the same date, superior to that of
many of its peers. The bank's liquidity reserves adequately match
its short-term liquidity needs. A material cash buffer and
pledgeable securities, which represented 16% of total liabilities
as of August 1, 2018, support the bank's liquidity position.

"The stable outlook on UBRD reflects our view that over the next
12 months the bank will maintain its established market share and
customer base in the Ural region, adequate asset quality, and a
stable funding and liquidity profile.

"We could lower the ratings if UBRD's asset quality unexpectedly
deteriorates, leading to significant credit losses, putting its
regulatory capital adequacy ratios at risk. Excessive funding
volatility, which may threaten the bank's liquidity position,
could also prompt us to lower our ratings.

"We could consider a positive rating action in the next 12 months
if UBRD's capitalization strengthens, for example, through
capital support from the shareholder, with our forecast RAC ratio
sustainably above 3.25%. Material improvement in the bank's
earnings capacity and geographic diversification may also support
a positive rating action, although we do not except this over the
rating horizon."


VIM AVIA: Injunction Halts City Leasing DAC's Liquidation
---------------------------------------------------------
Aodhan O'Faolain at The Irish Times reports that the High Court
has granted a temporary injunction preventing Irish registered
aviation company Vim Avia Airlines, which is linked to a
controversial Russian businessman, from going into voluntary
liquidation.

Mr. Justice Michael Quinn made an interim injunction preventing
the members of City Leasing DAC, which has registered address in
Limerick from holding a meeting of its members, who were due to
consider a resolution to wind up the company, The Irish Times
relates.

The company is beneficially owned by Rashid Mursekayev, who has
extensive interests in the aviation industry, The Irish Times
discloses.  He is under investigation in Russia for alleged fraud
arising out of the financial difficulties and the collapse last
year of Vim Avia Airlines, which he co-owned, The Irish Times
notes.

The collapse of Vim Airlines drew the ire of Russian president
Vladimir Putin, who publicly criticized his own government's then
transport minister and deputy prime minister over their handling
of the matter, The Irish Times relays.

The High Court injunction was sought by US-registered firm
Volgadnepr-Unique Air Cargo, which argued the move was designed
to undermine orders it previously obtained in its action against
the City Leasing and other related parties, The Irish Times
recounts.

According to The Irish Times, the application for the injunction
was not opposed in court, and Mr. Justice Quinn, who said he
wanted to preserve the status quo, adjourned the matter to a date
in October.

Seeking the orders Andrew Fitzpatrick SC with Niall Buckley, for
Volgadnepr told Mr. Justice Quinn that City Leasing had assets
worth $8.8 million in 2017, The Irish Times states.


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


KOC HOLDING: S&P Cuts Issuer Credit Rating to BB-, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings said that it lowered its long-term foreign and
local currency issuer credit ratings on Turkey-based investment
holding company Koc Holding A.S. (Koc) to 'BB-' from 'BB+'. The
outlook is stable. At the same time, S&P affirmed its 'B' short-
term foreign and local currency ratings on Koc.

S&P said, "We also lowered our rating on Koc's unsecured notes to
'BB-' from 'BB+'. The recovery rating is '3', indicating our
expectation of meaningful recovery (50%-70%; rounded estimate
65%) in the event of payment default.

"The downgrade of Koc is driven by our downgrade of Turkey
(unsolicited foreign currency rating: B+/Stable/B). This
reflected the implications of extreme Turkish lira (TRY)
volatility, and our downward revision of the transfer and
convertibility (T&C) assessment to 'BB-' from 'BB+'.

"The downgrade of Koc primary reflects our view that the long-
term rating on the company is constrained by our 'BB-' T&C
assessment on Turkey. While Koc has a net financial cash
position, the cash is located in Turkey and therefore Koc does
not pass our T&C stress test, which is required to be rated above
the T&C assessment. The T&C assessment reflects the likelihood
that Turkey will limit the ability to exchange local currency for
another currency and to remit it to any country in order to honor
its debt-service obligations in case of a sovereign default. We
therefore think Koc could be prevented from honoring its debt
obligations, although we think that it would have capacity to do
so, even under a sovereign default stress scenario, since the
company's balance sheet is very strong."

Although Koc continues to have a large cash balance ($1.9 billion
as of June 30, 2018), all its cash is in domestic and
international banks in Turkey. As of June 30, 2018, Koc had a
cash surplus of TRY2 billion ($437 million) following its
dividend payment in April 2018 and contribution to Yapi ve Kredi
Bankasi A.S.'s (Yapi) capital increase in June 2018.

S&P said, "Our long-term foreign currency rating on Koc is one
notch higher than the sovereign foreign currency rating on Turkey
because Koc passes our hypothetical sovereign default stress test
thanks to its very strong balance sheet. However, given the
concentration of investments, and all cash holdings in Turkey,
and that Koc is listed on the Turkish stock exchange, we cap the
foreign currency rating at the level of the Turkish T&C
assessment.

"In our view, the rating on Koc is supported by its investee
companies exporting a material part of their production. This
implies that dividends to Koc are, to some extent, protected from
currency depreciation. However, we do not currently factor in the
escalating risk of tariffs from the U.S administration, as seen
by the recent tariffs on steel and aluminum. Three of the largest
investee companies -- Ford Otosan, Tofas, and Arcelik -- derive
more than 60% of their revenue from international sales; and
refinery group Tupras' sales are U.S. dollar-linked. We believe
this will continue to support Koc if the lira continues to
depreciate against the U.S. dollar and inflation pressure rises.
Additionally, we view positively that the abovementioned entities
are also active in industries that we believe carry only moderate
sensitivity to country risk. Koc receives however all of its
dividends in Turkey."

Koc's investments are diversified across industries, ranging from
financial institutions to auto manufacturing, retailing, consumer
durables, and oil refining. S&P said, "We expect his
diversification to reduce portfolio volatility over the cycle.
Koc exerts control over most of its assets, which facilitates
strategic planning and access to dividends. A clear majority,
90%, of assets are listed either directly or indirectly and
actively traded on the Borsa Istanbul, supporting the liquidity
of the asset portfolio. Although some assets are indirectly
listed, we don't differentiate them from directly listed assets
in our analysis, since there is no meaningful debt at the
intermediate special purpose vehicles. Additionally, Koc can
dispose of the assets at any time if it decides to, and therefore
it does not affect liquidity, in our view. Following the Aug. 17
downgrade of Yapi -- in which KOC has a 34.6% stake -- to 'B+',
as well as the effect of the lower sovereign rating on some other
of Koc's investee companies, like the refinery Tupras, we now
assess the weighted credit quality of KOC's investment portfolio
to be in the 'B' rating category. Subsequently, we have revised
downward our business risk assessment for Koc to fair from
satisfactory. In addition, we notice that the recent depreciation
of the Turkish lira against the U.S. dollar has materially
reduced Koc's investment portfolio in dollar terms. We estimate
the portfolio, despite moderate increases in share price
domestically, to be worth about $5.6 billion at an exchange rate
of TRY6.9/U.S. dollar. At year-end 2017, Koc's portfolio was
valued at about $13 billion."

S&P said, "Our view of Koc's financial risk profile reflects the
net cash position at the holding company level; total outstanding
debt was $1.5 billion compared with cash of around $1.9 billion
as of June 30, 2018. This results in a very robust ratio against
the portfolio value. We believe the group will continue to
operate a very conservative financial policy following a long
history of being in a net cash position. We therefore continue to
expect that Koc's loan-to-value (LTV) ratio will remain well
below 20%, and note that it currently has headroom under this
ratio.

"In 2018, we expect Koc's cash flow adequacy ratio to improve to
about 4.5x from about 3.0x in 2017. This predominantly reflects
materially increased dividends from Tupras, given that
acquisition debt was fully repaid in 2017. Negatively, we note
that Koc holds substantial cash in Turkish banks, which we
generally rate below Koc."

S&P's base case assumes:

-- GDP growth of 3.9% in 2018 contracting to around -0.5% in
    2019 compared with 7.4% in 2017.

-- Portfolio development and dividend inflows will increase
     moderately in line with GDP since Koc's investments are
     widely diversified across the Turkish economy.

-- No major acquisitions or disposals that would materially
    change Koc's leverage position.

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

-- A net cash position, leading to negative LTV.

-- Cash flow coverage of about 4.5x in 2018 (of which 81% was
    realized by the first half of 2018) and 3.8x in 2019, up from
    about 3x in 2017.

S&P said, "The stable outlook on Koc primarily reflects our
stable outlook and our 'BB-' T&C assessment on Turkey. We
continue to expect that Koc will maintain its sound financial
flexibility over the coming two years, including large cash
balances and low debt at the holding company, and that its LTV
ratio will be well below 20%. We also expect that its portfolio
companies will deliver resilient operating performance, despite
the weak macroeconomic environment in Turkey.

"A further downgrade of Turkey or the imposition of capital
controls would probably lead us to downgrade Koc. We believe a
negative rating action triggered by other factors is unlikely at
this stage, since we don't foresee any major changes in Koc's
financial policy or its investment position. Any signs of a less
liquid Turkish capital market that makes it more difficult or
time consuming to dispose of assets could however lead us to
revise our assessment of Koc's investment position. Pressure on
the ratings could also build if Koc were unable to pass our
sovereign stress test. This could happen if its debt maturity
profile were to shorten and, at the same time, Koc held
materially less cash in hard currencies. However, we see this as
unlikely.

"In our view, the ratings on Koc cannot be higher than our T&C
assessment on Turkey. We could therefore upgrade Koc if we raised
our rating and T&C assessment on Turkey, or if Koc were to
permanently transfer meaningful cash amounts to a country with a
higher T&C assessment to service its debt. An upgrade would also
hinge on our expectations that Koc will continue to adhere to its
prudent financial policy, and that we don't foresee any major
changes to the investment portfolio."


TURKEY: Central Bank Takes Steps to Undo Emergency Bank Support
---------------------------------------------------------------
David Gauthier-Villars at The Wall Street Journal reports that
Turkey's central bank took steps to undo some of the emergency
support it provided to its banks in recent weeks, reviving
investor concerns over the nation's financial stability as the
Turkish lira continued its slide against the dollar.

Turkey's Finance Minister Berat Albayrak -- the son-in-law of
President Recep Tayyip Erdogan -- remained unconcerned on Aug.
29, the Journal notes.

He said "We do not see a big risk about Turkey's economy or
financial system," the Journal relays, citing Turkish media.

According to the Journal, Mr. Albayrak has said he would announce
a package of economic measures next month to address debt issues
and inflation, which reached 16% last month.

The collapse of the lira -- it has lost 40% of its value against
the dollar this year -- has sent ripples through the global
financial system, raising concerns about the exposure of some
European banks and denting investor appetite for emerging
markets, the Journal discloses. Analysts now fear that mass
defaults will weigh on Turkish banks, the Journal states.

In early afternoon European trading on August 29, 2018, $1 bought
6.45 lira, the Journal relays.

Turkey's central bank had pledged to provide banks with all the
liquidity they needed earlier this month, after the lira had
tumbled to its lowest reading ever against the dollar, said it
had reintroduced a ceiling on such borrowing, in effect limiting
banks access to short-term funding, the Journal recounts.


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


ENSCO PLC: S&P Lowers Issuer Credit Rating to 'B-', Outlook Neg.
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Ensco PLC
to 'B-' from 'B+'. The outlook is negative.

S&P said, "At the same time, we lowered our issue-level rating on
the company's senior unsecured debt to 'B' from 'BB-'. The
recovery rating on this debt remains '2', reflecting our
expectation of substantial (70%-90%; rounded estimate: 80%)
recovery to creditors in the event of a payment default.

"The downgrade reflects our view that demand for offshore
contract drilling rigs and services, especially for deepwater
rigs, will remain weak for the next 18-24 months, due to the
higher costs, higher risks, and longer payback periods associated
with offshore exploration and production than onshore
unconventional projects. Although tenders and bidding activity
for ultra-deepwater and deepwater floaters have recently picked
up, we expect any new fixtures to essentially offset the
contracts that are rolling off.

At the same time, dayrates have remained close to break-even
levels and we expect only limited improvement before 2021. In
addition, Ensco's meager backlog of $2.3 billion as of mid-year
2018 leaves the company exposed to the depressed market
conditions. As a result, S&P estimates the company's debt-to-
EBITDA to exceed 10x in both 2019 and 2020, improving thereafter
as demand for offshore drilling services recovers.

"The negative outlook reflects our expectation that market
conditions in the offshore drilling sector will remain very
challenging over the next 24 months. We expect Ensco's credit
ratios will be very weak through 2020, with FFO-to-debt of less
than 5% and debt-to-EBITDA of over 10x, on average.

"We could lower the ratings if we expected a more prolonged
industry downturn than currently anticipated or if liquidity
weakens, which would most likely result from higher-than-expected
reactivation expenses or capital spending.

"We could consider a stable outlook if offshore contract drilling
market conditions improve and the company adds backlog such that
we expect debt-to-EBITDA to improve closer to 6x and FFO-to-debt
closer to 12%."


JAMIE'S ITALIAN: Jamie Oliver Vows to Turn Business Around
----------------------------------------------------------
Sophie Christie at The Telegraph reports that Jamie Oliver has
vowed to turn his business around and get it back in the black
after a tumultuous year for his eponymous Italian restaurant
chain Jamie's Italian Restaurants, which has teetered on the
brink of bankruptcy.

According to The Telegraph, in an interview with the Financial
Times, the 43-year-old multimillionaire chef said the business
"had simply run out of cash".

"We hadn't expected it. That is just not normal, in any business.
You have quarterly meetings. You do board meetings. People [who
are] supposed to manage that stuff should manage that stuff," The
Telegraph quotes Mr. Oliver as saying.

Mr. Oliver was left with no choice but to instruct his bankers to
inject GBP7.5 million from his own savings into the restaurants,
and a further GBP5.2 million of his own money, The Telegraph
relays, citing the FT.


WONGA: Won't Give Out New Loans Amid Administration Rumors
----------------------------------------------------------
Lucy Burton at The Telegraph reports that fears that payday
lending giant Wonga is on the brink of collapse have deepened
after it told customers that it would not be giving out new
loans.

The controversial company, once one of the UK's fastest-growing
technology firms with ambitions for a US$1 billion (GBP770
million) New York listing, made the announcement days after Sky
News reported that it could soon fall into administration after
being inundated with compensation claims, The Telegraph relates.

On Aug. 30 Wonga posted a banner across its website warning that
while it assesses its options it "has decided to stop taking loan
applications" from new customers, The Telegraph discloses.

According to The Telegraph, accounting firm Grant Thornton is
understood to be lined up as a potential administrator.


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


* BOOK REVIEW: The Financial Giants In United States History
------------------------------------------------------------
Author: Meade Minnigerode
Publisher: Beard Books
Softcover: 260 pages
List Price: $34.95

Order your personal copy today at http://is.gd/tJWvs2

The financial giants were Stephen Girard, John Jacob Astor, Jay
Cooke, Daniel Drew, Cornelius Vanderbilt, Jay Gould, and Jim
Fisk.

The accomplishments of some have made them household names today.
But all were active in the mid 1800s. This was a time when the
United States, having freed itself from Great Britain only a few
decades earlier, was gaining its stride as an independent nation.
The country was expanding westward, starting to engage in
significant international trade, and laying the foundations for
becoming a major industrial power. Astor, Vanderbilt, Gould, and
the others played major parts in all these areas. During the
Civil War in the first half of the 1860s, some became leading
suppliers of goods or financiers to the Federal government.

Minnigerode's focus is the highlights of the life of each of the
seven. Along with this, he identifies each one's prime
characteristics contributing to his road to fortune and how his
life turned out in the end. Not all of the men managed to keep
and pass on the fortunes they amassed. They are seen a "financial
giants" not only because they made fortunes in the early days of
American business and industry, but also for their place in
laying out the groundwork for American business enterprise,
innovation, and leadership, and for the notoriety they had in
their day.

Minnigerode summarizes the style or achievement of each man in a
single word or short phrase. Stephan Girard is "The Merchant
Banker"; Cornelius Vanderbilt, "The Commodore." "The Old Man of
the Street" summarizes Daniel Drew"; with "The Wizard of Wall
Street" summarizing Jay Gould. Jim Fisk is "The Mountebank."

Jay Cooke, "The Tycoon," was to be "known throughout the country
for his astonishingly successful handling of the great Federal
loans which financed the Civil War." After the War, one of the
leaders of the Confederacy remarked that the South was really
defeated in the Federal Treasury Department thus, even on the
enemy side, giving recognition to Cooke's invaluable work of
enabling the Federal government to meet the huge costs of the
War. After the War, having earned the reputation as "the foremost
financier in the country," Cooke became involved in many large
financial ventures, including the building of a railroad to link
the East and West coasts of America. In this railroad venture,
however, Cooke and his banking firm made a fatal misstep in
investing in the Northern Pacific railway. The Northern Pacific
turned out to be a house of cards. When Cooke's firm was unable
to meet interest payments it owed because of money it had put
into the Northern Pacific, the firm went bankrupt; and this
caused alarm in the stock market and financial circles.

The roads to wealth of the "financial giants" were not smooth.
Like others amassing great wealth, they had to take risks. The
tales Minnigerode tells are not only instructive on how
individuals have historically made fortunes in business and the
characteristics they had for this, but are also cautionary tales
on the contingency of great wealth in some circumstances. Jim
Fisk, for instance, a larger-than life character "jovial and
quick witted [who was also] a swindler and a bandit, a destroyer
of law and an apostle of fraud," was presumably killed by a
former business partner. Unlike Cooke and Fisk, Cornelius
Vanderbilt and John Jacob Astor built fortunes that lasted
generations. Vanderbilt -- nicknamed Commodore -- starting in the
New York City area, built ships and established domestic and
international merchant and passenger lines. With the government
coming to depend on these with the rapid growth of commerce of
the period and the Civil War for a time, Vanderbilt practically
had monopolistic control of private shipping in the U.S. Astor
made his fortune by developing trade and other business in the
upper Midwest, which was at the time the sparsely-populated
frontier of America, rich in natural resources and other
potential with the Great Lakes and regional rivers as a
means for transportation.

Although the social and business conditions in the early and mid
1800s when the U.S. was in the early stages of its development
were unique to that period, by concentrating on the
characteristics, personalities, strategies, and activities of the
seven outstanding businessmen of this period, Minnigerode
highlights business traits and acumen that are timeless. His
sharply-focused, short biographies are colorful and memorable.
This author has written many other books and worked in the
military and government.



                            *********

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

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

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000.


                 * * * End of Transmission * * *