/raid1/www/Hosts/bankrupt/TCREUR_Public/180905.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

         Wednesday, September 5, 2018, Vol. 19, No. 176


                            Headlines


C R O A T I A

AGROKOR DD: Fabris Perusko to Focus on Restructuring Business


F R A N C E

CASINO GUICHARD-PERRACHON: S&P Cuts ICR to 'BB', Outlook Negative


G R E E C E

HELLENIC SHIPYARDS: Sept. 26 Expression of Interest Deadline Set


I T A L Y

ASTALDI SPA: S&P Cuts Issuer Credit Rating to CCC-, Outlook Dev.


N E T H E R L A N D S

DSM SINOCHEM: S&P Assigns Preliminary 'B' ICR, Outlook Stable
DUTCH PROPERTY 2018-1: DBRS Rates Class E Notes BB(high)


R U S S I A

K2 BANK: Put on Provisional Administration, License Revoked


S P A I N

GC PASTOR 5: S&P Lowers Class B RMBS Notes Rating to 'D (sf)'


U N I T E D   K I N G D O M

CLARION GB: September 13 Claims Submission Deadline Set
ELIZABETH FINANCE: DBRS Finalizes BB Rating on Class E Notes
HOUSE OF FRASER: EWM Temporarily Closes Concessions
HOUSE OF FRASER: Has Yet to Reach Compromise with XPO Logistics
HOUSE OF FRASER: Landlords Respond to Mike Ashley's Comments

LASER ABS 2017: Moody's Hikes Class D Notes Rating to Ba2(sf)
SYNLAB UNSECURED: Fitch Affirms B Long-Term IDR, Outlook Stable


                            *********



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C R O A T I A
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AGROKOR DD: Fabris Perusko to Focus on Restructuring Business
-------------------------------------------------------------
Ivana Sekularac and Marja Novak at Reuters report that a deal
with creditors has finally given Agrokor boss Fabris Perusko time
to focus on leading the Croatian food group back from the brink
of bankruptcy and fighting off international competition.

The former McKinsey & Company consultant was promoted in February
from the board of Tisak, a chain of newsagents owned by Agrokor,
to restructure the parent company, Reuters recounts.  But the
Croatian was promptly distracted by months of difficult talks
with creditors, Reuters notes.

According to Reuters, with a deal agreed on July 4, he can start
preparing southeastern Europe's biggest company for a stock
market listing within four years, work on regaining access to
financing and revitalizing its Konzum supermarket chain.

Agrokor, founded as a flower shop in 1976, ran up debts of some
HRK58 billion (GBP7.01 billion) as it snapped up companies and
brands across the former Yugoslavia, Reuters discloses.

Facing bankruptcy, it was put into state-run administration in
April 2017, causing a crisis that toppled Croatia's ruling
coalition, Reuters relays.

The current government, which passed a law to keep the company
afloat, mandated it to reach a debt settlement with creditors,
which include local and foreign bankers, bondholders and
suppliers, by July 10, Reuters states.



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F R A N C E
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CASINO GUICHARD-PERRACHON: S&P Cuts ICR to 'BB', Outlook Negative
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
France-based international retailer Casino Guichard-Perrachon
S.A. (Casino) to 'BB' from 'BB+'. At the same time, S&P affirmed
its 'B' short-term issuer credit rating on Casino.

S&P said, "We also lowered our issue-level ratings on Casino's
senior unsecured notes to 'BB' from 'BB+'. The recovery rating on
these notes remains at '4', indicating our expectation of average
(30%-50%, rounded estimate 45%) recovery in the event of a
payment default.

"Additionally, we lowered the issue-level rating on Casino's
hybrid notes to 'B' from 'B+', reflecting the three-notch
difference from the long-term issuer credit rating."

The downgrade takes into account that Casino's leverage has
remained high for more than two years, as well as the diminished
financial flexibility and event risk for the group emanating from
the near-term debt maturities at Rallye.

S&P said, "We assess Casino's stand-alone creditworthiness as
higher than, but linked to, that of the overall group, comprising
Casino, Rallye, and its various holding companies up to Finatis,
which we see as the ultimate controlling parent.

"We acknowledge, however, that Casino is partly insulated from a
credit perspective, as Casino and Rallye are both separately
listed legal entities and we understand that there are some
protections for Casino's minority shareholders under the French
regulatory and corporate governance framework, which could
prevent the leakage of Casino's assets to its parent companies.
We therefore rate Casino in line with its stand-alone credit
profile, which is higher than the wider group's credit standing.
At the same time, we believe that Casino's creditworthiness is
still linked to a certain extent to that of the wider group.
Casino is the core entity within the group and the driver of
virtually all of the group's earnings and cash flows. The group
relies on Casino to service its debts through ongoing dividend
payments arising from Casino. In that respect, further risks at
Rallye may weigh on the entire group, including Casino.

"This link to the wider group is also established, in our view,
by the significant recent drop in Casino's share price, and
widening of credit spreads at Casino and its immediate holding
company, Rallye -- both of which weigh on the group's standing in
the credit markets and increase event risk, which we believe is a
function of Rallye's refinancing risk. In addition, Mr. Jean-
Charles Naouri is also the chairman or CEO and controlling
shareholder of several group subsidiaries, including Finatis,
Rallye, and Casino."

Rallye and Rallye's holding companies (Fonciere Euris and
Finatis) hold EUR3.7 billion of gross debt, of which EUR3.3
billion is held at Rallye itself. Over the next few months,
Rallye has bond maturities of about EUR1 billion (around EUR700
million in October 2018 and another EUR300 million in March
2019). Rallye has confirmed credit lines of EUR1.7 billion but
EUR1.4 billion of these facilities are subject to Casino share
pledges, when drawn. With the significant drop in Casino's share
price, some liquidity concerns have emerged at Rallye, as the
forthcoming EUR1 billion debt maturities are reliant on the
availability of the company's EUR1.4 billion credit facilities,
which itself is a function of the value of its Casino shares,
which have to be pledged as collateral. Also as Casino's shares
are the main assets of Rallye, due to a drop in Casino's share
price, Rallye's liabilities exceeded its net assets by EUR800
million at June 2018.

Contrary to S&P's earlier expectations of a reduction in debt,
Casino's debt position has remained at higher-than-expected
levels for more than two years now. As of June 30, 2018, the
reported gross debt of EUR10 billion is almost unchanged compared
to the same period in 2017, and up by EUR1.4 billion since
December. Casino's S&P Global Ratings-adjusted proportional debt-
to-EBITDA leverage and the adjusted leverage at the overall group
at the Finatis level was quite comparable at around 4.4x and 4.3x
respectively at December 2017. Additionally, there is a need for
ongoing cash dividend distributions from Casino (EUR0.4 billion
in 2017), despite its elevated leverage, to enable its holding
companies to service their debt.

In June 2018, management announced its intention to dispose of a
further EUR1.5 billion of noncore mostly real estate assets.
These disposals are in addition to the sale of the Brazilian
electronics business Via Varejo, which was announced in 2016 and
has still not completed. Management is targeting to complete half
of the disposal plan in 2018, aiming for EUR1.0 billion reduction
in net debt in France by the end of the year. However, we think
that some of the property disposals could be in form of sale-
lease backs, which may not lead to a meaningful reduction in
adjusted debt due to the capitalization of the operating leases.
So far the group has realized EUR213 million from the disposal of
15% of Mercialys via an equity swap. The group has reduced debt
in France and Colombia by EUR200 million each by borrowing at a
holding company that controls the Brazilian operations.

Casino reported good trading momentum and improvements in working
capital position in France during the first half of 2018. Its top
line performed well, with organic growth of 4.1% for the half
year ended June 2018. Operating performance has been resilient,
particularly compared with other large rated food retail peers
with operations in France, such as Carrefour and Auchan. For the
half-year 2018, Casino reported 10.3% organic growth in
consolidated trading profits, to EUR439 million, stemming from
good trading in both France and Latin America, where Casino has
achieved healthy same-store growth.

Casino benefits from a well-established position in the French,
Brazilian, and Colombian food retail markets. It has developed
diversified store concepts, with a presence in both premium and
discount segments. Following Casino's disposal of its Asian
business and the anticipated disposal of its Brazilian
electronics business, France accounts for over one-half of
Casino's consolidated revenues and we believe this remains a key
driver of Casino's profits and cash flows.

Persistent high competition weighs on Casino's French operations.
Like other food retailers such as Carrefour S.A. and Groupe
Auchan S.A., Casino is exposed to France's competitive market.
Casino's business model benefits from comparatively high format
diversity and lower exposure to hypermarkets than these peers, as
well as from investment in its pricing strategy, particularly in
its Geant hypermarket chain and Leader Price discount
supermarket. Positively, Casino's premium and convenience formats
in France--where it has a leading position--are less exposed to
pricing pressure, in S&P's opinion. Further, Casino's recent
alliances and partnerships with Auchan, DIA, Amazon, and Ocado
should moderately benefit margins and working capital from
financial year 2019 onward.

In Brazil, Casino should continue to benefit from its cash and
carry business, Assai, which has grown significantly on the back
of conversion from hypermarkets. However, this inherently implies
lower margin expectations for Brazil, in S&P's view. That said,
the continued focus on cost management, together with easing food
price deflation, should partly offset the impact of lower
margins. Increasing contribution from premium formats would also
somewhat help the group stem margin pressure.

The following assumptions underpin S&P's base-case scenario for
Casino:

-- GDP growth of 1.7% in France, with inflation of 1.8% in 2018.
    In France, S&P expects strong domestic demand on back of
    reduced unemployment and rising wages to help boost consumer
    spending.

-- The French government may adopt a proposed law imposing a
    minimum gross margin of 10% for each food item and put a cap
    on promotions by food retailers. If adopted, the law would
    ease competitive pressures on prices for certain product c
    categories. S&P considers that ongoing price competition and
    competitive activity would curtail any meaningful upside in
    its forecasts.

-- S&P said, "We lowered our real GDP growth projections for
    Brazil to 1.6% and 2.4% for 2018 and 2019, from 2.4% and 2.6%
    previously. Sluggish growth in the first quarter, higher
    inflation and the impact of the truckers' strike on several
    sectors will result in lower GDP growth than we previously
    anticipated." The Brazilian economy has shown a continued
    recovery in household spending, facilitated by low domestic
    interest rates and low inflation.

-- S&P has kept its GDP projections for Colombia unchanged at
    2.5% for 2018 and 2.6% for 2019. The recent reduction in
    interest rates, stabilizing labor market dynamics, and
    moderating inflation will support household spending growth.
    Uruguay's GDP growth will be stable in 2018 at 2.7%, with an
    improvement to 3% in 2019.

-- S&P now forecasts 0.5% real GDP decline for Argentina in 2018
    and growth of 1.8% in 2019. The significantly weaker nominal
    exchange rate will result in higher inflation, and the
    implementation of higher interest rates to contain inflation
    will lower domestic demand.

-- Macroeconomic conditions, together with the store development
    plan, should broadly support the top line. Ultimately,
     however, reported revenue growth will remain closely linked
     to foreign exchange rates, in particular the Brazilian real,
    which has seen significant depreciation. Accordingly, S&P
     forecasts the topline at the Casino level to decline by up to
     2% over 2018 and grow moderately by 1% in 2019, reflecting
     the same store growth in France offset by decline in Latin
    America.

-- A moderate pick-up in margins of about 10-20 basis points
    (bps) in France for 2018 and 2019. This margin improvement
    will stem from cost savings and gains from the proposed
    purchasing alliance with Auchan (with the gains realized in
    margins from 2019 onward), the transfer of some more
    underperforming stores to franchisees, and a reduction in
    restructuring charges.

-- That said, in S&P's view, the French food retail market will
    remain extremely competitive and it will be challenging for
    Casino to improve profits significantly as it continues to
    reposition itself. Rising input costs could also offset gains
    in margins.

-- S&P anticipates EBITDA margins in Brazil will be stable to
    moderately higher (by about 10-20 bps), reflecting cost
    management efforts and higher-than-inflation like-for-like
    growth in the cash and carry business, offsetting a reduction
    in gross margins. Store-level efficiencies and a decline in
    food deflation in Brazil would also help preserve margins
    given the increasing contribution of cash and carry business.

-- S&P assumes EBITDA margins to remain broadly stable in
    Colombia in 2018 amid a decline in inflation and continued
    cost pressures, partly offset by cost savings and commercial
    negotiations.

-- High recent restructuring charges should reduce substantially
    over 2018 following significant progress in the Casino's
    market repositioning, especially in France.

-- No further changes to the group structure other than the
     anticipated disposal of the Via Varejo electronics business
     in Brazil.

-- Accordingly, S&P anticipates growth in consolidated
     unadjusted EBITDA in 2018 of 50-60 bps due to improved
     margins in France, supported by our expectation of slightly
     lower restructuring costs and one-off items in 2018.

-- Disposal of Brazilian electronics business Via Varejo this
    year, with approximately EUR0.9 billion of sales proceeds
    received by Casino's Brazilian subsidiary GPA, which could
    translate to debt reduction of about EUR300 million at the
    Casino level taking into account Casino's 33.4% ownership of
    GPA.

-- Targeted efforts to focus on working capital efficiency
    following the significant outflow of nearly EUR1 billion in
    2017.

-- A credit-supportive financial policy that balances capital
    expenditure (capex) of EUR1 billion annually and shareholder
    returns (EUR450 million-EUR500 million) with a focus on debt
    reduction.

-- No additional share buyback after the EUR143 million
    undertaken in the first half of 2018.

Based on these assumptions, S&P expects the following adjusted
credit metrics for Casino over 2018 and 2019:

-- On a fully consolidated basis, adjusted debt to EBITDA of
    around 3.1x-3.3x from 3.2x at year-end 2017.

-- On a proportional basis, adjusted debt to EBITDA of around
    3.9x-4.3x from 4.4x at year-end 2017.

-- Despite some improvements, S&P forecasts that Casino's free
    operating cash flow to debt and discretionary cash flow to
    debt will remain weak. S&P estimates that even on a
    consolidated basis, the bulk of the free cash flow will be
    consumed by dividend payments, leaving limited cash available
    (up to EUR100 million) for debt reduction.

-- For the overall group (including holding companies up to
    Finatis) adjusted debt to EBITDA of 4.4x-4.5x from 4.3x at
    year-end 2017 on a fully consolidated basis.

In addition to operational performance and drivers, the above
forecasts are also subject to the timing and extent of execution
of a range of operational and financial policy measures, mainly
working capital efficiencies and disposals, which management has
committed to implement to reduce debt.

The negative outlook factors in Casino's elevated financial
leverage and delays in the execution of its asset disposal plans.
Despite management's commitment to reduce debt and improve
profitability, intense competition in the French food retail
market, the slow economic recovery in Brazil, and weak cash flow
generation in relation to high debt levels amplify execution
risks. This increases the likelihood of Casino's leverage (on a
proportional consolidation basis) and the leverage of the overall
group at the Finatis level (based on full consolidation)
remaining higher than 4x over the next 12 months.

The negative outlook also reflects the diminished financial
flexibility and event risk that could arise for the group from
any liquidity, refinancing, or capital structure difficulties at
Rallye given its debt maturities in October 2018 and March 2019,
as well its substantial negative asset value.

S&P said, "We could lower the ratings on Casino further if we saw
a deterioration of Rallye's liquidity or capital structure
position that would negatively affect the group's standing in the
credit markets and its financial flexibility or that would
increase event risk.

"We could also consider a negative rating action if Casino
deployed cash for purposes other than to reduce the gross debt,
such as for unexpected share buybacks or increased dividend
payments.

"We could lower the ratings of Casino if there was a drop in
profitability or a decline in quality of earnings, such that the
adjusted debt to EBITDA on a proportional basis at the Casino
level or on a fully consolidated basis at the overall group level
(including all holding companies) moved toward 5x."

As Casino's creditworthiness is higher than but linked to that of
the wider group, any prospects for the outlook to return to
stable or a higher rating on Casino is dependent on a significant
improvement in Rallye's liquidity, balance sheet, and financial
leverage positions without increases in dividend payments from
Casino.

For any rating upside, Casino would also need to successfully
execute its plans to improve profitability and reduce debt
through asset disposals and working capital efficiencies. This
scenario would also involve a significant improvement in Casino's
cash generation on the back of revenue and earnings growth at its
core French operations and improving profitability at its
Brazilian operations. This would result in a reduction in the S&P
Global Ratings-adjusted debt-to-EBITDA ratio (based on
proportional consolidation of partly owned subsidiaries at Casino
level) sustainably below 4x.


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HELLENIC SHIPYARDS: Sept. 26 Expression of Interest Deadline Set
----------------------------------------------------------------
Hellenic Shipyards S.A., under Special Administration, owns a
large shipyard in Eastern Mediterranean, located in Skaramagas,
near Athens, Greece (9 km northwest from Piraeus port and 11 km
from Athens city centre).

The company's Special Administrator intends to proceed with a
one-step bidding process for the sale of certain company assets.

Such assets include two (2) floating docks (No. 1 & 3) and their
equipment.  They have a lifting capacity of 30,000 tons and
25,000 tons respectively: Floating dock No. 1 sank in January
2018 along with two cranes; and floating dock No. 3 has been put
out of service since 2010.  Prospective bidders will have to bid
for both floating docks.

Prospective bidders wishing to participate in this process are
invited to submit, by September 26, 2018, by 12:00 Greek time, at
the office of the company 3 Palaska str. PC 124 62 Attica, Greece
an Expression of Interest, to the Representatives of the Special
Administrator by email (signed hard copies must follow by
courier), in Greek or English.

A detailed English Invitation for Expression of Interest can be
found at the Company's website at:

          http://hsy-under-special-administration.gr/blogs/

For more information, you may also contact:

           Stefanos Papadopoulos & George Meletis
           +30 212 107 0020
           specialadministrator@hsy.gr



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ASTALDI SPA: S&P Cuts Issuer Credit Rating to CCC-, Outlook Dev.
----------------------------------------------------------------
S&P Global Ratings said that it lowered its long-term issuer
credit rating on Italy-based civil engineering and construction
company Astaldi SpA to 'CCC-' from 'CCC'. The outlook is
developing.

S&P said, "We also lowered our issue rating on Astaldi's EUR750
million senior unsecured notes to 'CCC-' from 'CCC', in line with
the long-term issuer credit rating. The recovery rating on this
debt remains unchanged at '4', indicating our expectation of
average recovery prospects (30%-50%; rounded estimate: 30%) in
the event of a payment default.

"The downgrade reflects our view that execution risk linked to
Astaldi's capital strengthening plan has increased following the
deterioration of the economic situation in Turkey."

This deterioration could impede progress in the sale of Astaldi's
stake in its concession asset, the Third Bosphorus Bridge. S&P
notes that the disposal of the Third Bosphorus Bridge and
associated cash inflows were due to occur in the first half of
2018, and the delay puts further pressure on Astaldi's liquidity
profile.

S&P said, "We understand that the EUR300 million capital increase
announced in May 2018 depends on progress in the disposal of the
concession asset. As a result, we believe that execution risks
linked to Astaldi's capital strengthening plan have increased. In
our view, the capital increase remains a key step in the
company's 2018 refinancing plan -- which also comprises the
refinancing of the company's debt capital structure, including
the EUR500 million revolving credit facility and EUR120 million
back-up facility maturing in 2019, and the EUR750 million bond
maturing in 2020.

"The developing outlook reflects our view that we may lower or
raise the ratings in the next few quarters depending on the
advancement of the capital increase and asset disposal.
In our view, Astaldi would face a material liquidity deficit and
may be unable to meet its financial obligations in the next six
months if it cannot complete its capital increase, absent any
other significant positive development. This is because, in such
a case, banks may become reluctant to renew the company's short-
term credit lines, leading us to lower the ratings.

"We could raise the ratings if Astaldi completes its EUR300
million capital increase, as this would alleviate liquidity
pressure. This would happen if the company receives a
satisfactory and binding offer on the sale of its stake in the
Third Bosphorus Bridge, and if its banks support the capital-
strengthening plan. Any tangible evidence of Astaldi's ability to
reverse the negative trend for working capital and improve its
liquidity profile would also provide ratings upside."



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DSM SINOCHEM: S&P Assigns Preliminary 'B' ICR, Outlook Stable
-------------------------------------------------------------
S&P Global Ratings said that it assigned its preliminary 'B'
long-term issuer credit rating to DSM Sinochem Pharmaceuticals
(DSP), a Netherlands-based pharmaceutical company. The outlook is
stable.

S&P said, "At the same time, we assigned our preliminary 'B'
issue ratings to the proposed EUR75 million equivalent revolving
credit facility (RCF) and EUR335 million equivalent first-lien
senior secured term loan B. The preliminary recovery rating on
the notes is '3', indicating our expectation of 50%-70% recovery
(rounded estimate: 65%) in the event of payment default.

"The final ratings will be subject to our receipt and
satisfactory review of all the final transaction documentation.
Accordingly, the preliminary ratings should not be construed as
evidence of the final ratings. If the terms and conditions of the
final documentation depart from what we have already reviewed, or
if the financing transaction does not close within what we
consider to be a reasonable time frame, we reserve the right to
withdraw or revise the ratings."

The rating on DSP reflects its relatively small size and focus on
the production of antibiotics such as semi-synthetic penicillin
(SSP) and semi-synthetic cephalosporin (SSC), which constrains
its business profile. However, it benefits from a low cost
position, barriers to entry based on technological and capital
investment, and brand recognition among industrial customers.
However, DSP's ownership by financial sponsor Bain Capital, as
well as its modest free operating cash flow (FOCF) generation
(which S&P project to be EUR5 million-EUR10 million in 2018-2020
under its base case), constrains the company's financial profile.
S&P forecasts that DSP's S&P Global Ratings adjusted opening
leverage will be about 4.9x as of December 2018.

Although DSP operates in an integral part of the pharmaceutical
company supply chain, we consider that it shares the
characteristics of the specialty chemical industry. This is
because the majority of the business does not yet produce
finished dosage forms (FDFs) and therefore does not participate
in the higher-margin parts of the value chain.

The global pharmaceutical market benefits from the aging
populations in developed markets and better access to health care
in emerging markets. DSP's operations are concentrated in what
S&P views as the niche SSP and SSC antibiotics market. These
antibiotics are considered the first line of defense and a
lifesaving treatment of many diseases. S&P estimates that the
demand for antibiotics will be primarily driven by emerging
markets as accessibility to health care increases, while the
western markets -- where these types of products have already
been in use for a long time -- will continue to experience
pricing and volume pressure, leading to limited, low-single-digit
percentage overall growth. This weighs negatively on S&P's
assessment.

Excluding the treatment of infections, DSP has a limited exposure
to anti-fungal-based (5% of financial year 2017 revenues) and
statin-based (3% of financial year 2017 revenues) products. That
said, the company expects to expand thanks to its finished dosage
form franchise, which should benefit from the ongoing outsourcing
of noncore activities -- a trend among pharmaceutical companies.

DSP's focus on a patented enzymatic fermentation process -- which
has shorter lead times and leads to less waste than the
alternative chemical synthesis process -- drives the company's
cost position. DSP's core customer base comprises generic
manufacturers that, unlike industry leaders such as GSK and
Novartis, do not have integrated active pharmaceutical ingredient
(API) production capabilities. Contract life spans typically
range between three and five years, which provides good
visibility on future earnings.

In the production of antibiotics, DSP uses materials such as
glucose and hematopoietic progenitor growth medium (HPGM), which
account for just over half of its total raw material spend.
Markets for these inputs are prone to price volatility. The
company is trying to mitigate this by entering into long-term
contracts, but it still purchases a significant portion of raw
materials at market prices.

S&P said, "We also see DSP's relatively limited supplier base --
especially regarding HPGM -- as a weakness, since Deretil, a
Spanish-based company, is the sole supplier of this raw material.
We consider that a distressed scenario involving this supplier
could have negative implications in the production of SSPs.
However, we acknowledge that DSP has a clean record in this
regard."

DSP has a successful track record of applying pricing premiums,
which has historically compensated any increase in input cost.
This is because it benefits from its longstanding relationship
with pharmaceutical companies that are more likely to accept
price increased than change their supplier due to the switching
hurdles.

In S&P's view, DSP is well positioned to face the ongoing
increased focus on environmental matters. The Chinese
environmental policy, referred to as "2+26," has triggered
numerous site inspections, leading to various site closures for
competitors that did not comply with the environmental
requirements. However, DSP passed these inspections, and S&P
therefore believes that, even though the overall market growth
prospects are relatively modest, DSP benefits from a well-
established and defendable market positon.

Operating efficiency is adequate with a low cost positioning,
high capacity usage, and no need to build new plants to
accommodate for growth plans. DSP's industrial footprint
encompasses sites in China, India, the Netherlands, Spain, and
Mexico. That said, the plants remain few in number, and the
temporary closure of one plant could materially harm DSP's credit
profile. Finally, in terms of profitability, DSP enjoys an EBITDA
margin of 16%-17%, which fully fits with S&P Global Ratings'
guideline of 12%-20% average profitability for a specialty
chemical player.

S&P's financial risk profile assessment reflects its view that
DSP will post adjusted debt to EBITDA close to 5x on average over
the next two years. S&P's debt calculation excludes the EUR137
million non-common equity, subject to final documentation.
However, the equity sponsor ownership of the group, coupled with
the uncertainty as to whether Bain Capital will sustainably
support DSP's deleveraging trajectory and FOCF generation,
constrains the company's financial risk profile.

S&P's base case assumes:

-- Revenue growth of 8.6% in 2018 and 6.0% in 2019 since S&P
    expects DSP will benefit from a positive momentum in SSC
    volumes and premium pricing, increase its market share in the
    highly regulated markets for SSPs, and reap the benefits of
    its new FDF products.

-- EBITDA margin to remain flat at 17% in 2018 and to improve
     slightly over S&P's forecasting horizon, driven by
     operational improvements and the FDF franchise breaking even
     in 2019.

-- Capital expenditure (capex) of about EUR24 million in 2018
     and EUR21 million in 2019, mainly reflecting DSP's volume and
     yield improvement projects in key intermediates 6APA in
     China and 7ADCA in The Netherlands.

-- S&P has assumed no debt-finance acquisitions over its
    forecasting horizon.

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

-- Adjusted debt to EBITDA of about 4.9x-4.6x in 2018 and 2019,
    dropping to about 4.4x in 2020.

-- Adjusted funds from operations (FFO) to cash interest
     coverage of about 5.7x in 2018, decreasing to 3.9x in 2019
     and 2020.

-- Adjusted FOCF of EUR5 million-EUR10 million in 2018-2020.

S&P said, "The stable outlook on DSP reflects our view that, in
the next 12-18 months, the group will retain its solid position
as an important provider of APIs for the SSP and SSC antibiotic
market. We forecast continuous growth in EBITDA and positive FOCF
generation.

"We anticipate the company will maintain an adjusted debt-to-
EBITDA ratio close to 5.0x. The stable outlook also incorporates
our view that the group's undrawn EUR75 million RCF and available
cash balance will support the company's liquidity over the next
12 months.

"We could lower the rating if the company's liquidity was
significantly impaired or if the operating environment
deteriorated to such a level that we could consider the capital
structure to be unsustainable."

Failure to meet Food and Drug Administration requirements could
significantly damage DSP's operating efficiency, which is a key
credit factor, notably in terms of quality and sustainability.
Despite the company having a good track record, the sector is
under intense scrutiny and S&P views quality and environmental
risk as a major factor, especially because DSP only operates a
handful of plants and its reputation as a reliable long-term
partner is a key factor to success. Quality issues would
jeopardize the group's current business risk profile. Similarly,
we could lower the rating if DSP's FOCF entered into negative
territory due to operational disruptions.

S&P said, "Although unlikely over the next few years, we could
raise the rating if we observed a marked increase in the
company's scale and diversity of product offerings, but we do not
expect such expansion in the near term. Furthermore, we could
raise the rating if we were convinced that the financial sponsor
would consistently support the group's deleveraging trajectory
such that adjusted debt to EBITDA could remain comfortably within
the 4x-5x range, supported by positive FOCF."


DUTCH PROPERTY 2018-1: DBRS Rates Class E Notes BB(high)
--------------------------------------------------------
DBRS Ratings Limited assigned provisional ratings to the notes
expected to be issued by Dutch Property Finance 2018-1 B.V.
(Issuer) as follows:

-- Class A Notes rated AAA (sf)
-- Class B Notes rated AA (sf)
-- Class C Notes rated A (sf)
-- Class D Notes rated BBB (sf)
-- Class E Notes rated BB (high) (sf)

Dutch Property Finance 2018-1 B.V. is a bankruptcy-remote
special-purpose vehicle incorporated in the Netherlands. The
issued notes will be used to fund the purchase of Dutch mortgages
originated by RNHB. Proceeds of the Class G Notes will be used to
fund the general reserve fund.

RNHB is a buy-to-let and mid-market real estate lending business
in the Netherlands. RNHB was formed in 2008 when Rijnlandse
Hypotheekbank and Nederlandse Hypotheekbank were merged by their
then-parent company, FGH Bank N.V., which in turn was owned by
and is now part of Rabobank. In December 2016, RNHB and their
loans to be securitized were acquired by a consortium of (i)
funds managed by CarVal Investors LLC (CarVal) and (ii) Arrow
Global Group, with CarVal holding the majority interest. The
mortgage portfolio will be serviced by Vesting Finance Servicing
B.V. with Intertrust Administrative Services B.V. appointed as a
replacement servicer facilitator.

As of June 30, 2018, the provisional portfolio consisted of 2,472
loans with a total portfolio balance of approximately EUR 527
million. The weighted-average (WA) seasoning of the portfolio is
6.7 years with a WA remaining term of 3.9 years. The WA current
loan-to-value is comparatively low for a Dutch portfolio at
61.33%. Almost all the loans included in the portfolio are fixed
with future resets (93.5%) while the notes pay a floating rate of
interest. To address this interest rate mismatch, the transaction
is structured with a balance-guaranteed interest rate swap that
swaps a fixed interest rate for a three-month Euribor.
Approximately 2.5% of the portfolio comprises loans where the
borrowers are in arrears (excluding less than one month in
arrears).

Until July 2023, the seller has the ability to grant, and the
Issuer the obligation to purchase, further advances -- subject to
the adherence of asset conditions. The transaction documents
specify criteria that must be complied with during this period in
order for the further advances to be sold to the Issuer. DBRS
stressed the portfolio in accordance with the asset conditions to
assess the portfolio's worst-case scenario.

Credit enhancement for the Class A Notes is calculated as 23.1%
and is provided by the subordination of the Class B Notes to the
Class F Notes and the general reserve fund. Credit enhancement
for the Class B Notes is calculated as 13.3% and is provided by
the subordination of the Class C Notes to the Class F Notes and
the general reserve fund. Credit enhancement for the Class C
Notes is calculated as 9.4% and is provided by the subordination
of the Class D Notes to the Class F Notes and the general reserve
fund. Credit enhancement for the Class D Notes is calculated as
5.9% and is provided by the subordination of the Class E Notes,
Class F Notes and the general reserve fund. Credit enhancement
for the Class E Notes is calculated as 5.0% and is provided by
the subordination of the Class F Notes and the general reserve
fund.

The transaction benefits from a non-amortizing cash reserve that
is available to support the Class A to Class E Notes. The cash
reserve will be fully funded at close at 2.0% of the initial
balance of the Class A to the Class F Notes. Additionally, the
notes will be provided with liquidity support from principal
receipts which can be used to cover interest shortfalls on the
most senior class of notes, provided a credit is applied to the
principal deficiency ledgers, in reverse sequential order.

The Issuer has entered into a balance-guaranteed interest rate
swap with NatWest Markets Plc., to mitigate the fixed interest
rate risk from the mortgage loans and the three-month Euribor
payable on the notes. The swap documents reflect DBRS's
"Derivative Criteria for European Structured Finance
Transactions" methodology.

The Issuer Account Bank and Paying Agent is Elavon Financial
Services DAC, UK Branch. The DBRS private rating of the Issuer
Account Bank is consistent with the threshold for the Account
Bank outlined in DBRS "Legal Criteria for European Structured
Finance Transactions", given the ratings assigned to the notes.

The rating of the Class A Notes addresses the timely payment of
interest and ultimate payment of principal on or before the legal
final maturity date, the ratings of the Class B Notes to the
Class E Notes address the ultimate payment of interest and
principal on or before the legal final maturity date. DBRS based
its ratings primarily on the following:

   -- The transaction capital structure, form and sufficiency of
available credit enhancement and liquidity provisions.

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

   -- The ability of the transaction to withstand stressed cash
flow assumptions and repays the notes according to the terms of
the transaction documents. The transaction cash flows were
analyzed using PDRs and LGD outputs provided by the European RMBS
Insight Model. Transaction cash flows were analyzed using INTEX
Dealmaker.

   -- The structural mitigants in place to avoid potential
payment disruptions caused by operational risk, such as downgrade
and replacement language in the transaction documents.

   -- The transaction's ability to withstand stressed cash flow
assumptions and repay investors in accordance with the Terms and
Conditions of the notes.

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

Notes: All figures are in euros unless otherwise noted.


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


K2 BANK: Put on Provisional Administration, License Revoked
-----------------------------------------------------------
The Bank of Russia, by virtue of its Order No. OD-2276, dated
August 31, 2018, revoked the banking license of Cherkessk-based
credit institution K2 Bank (JSC) from August 31, 2018.  According
to financial statements, as of August 1, 2018, the credit
institution ranked 349th by assets in the Russian banking system;
it was not a socially important lender, and its impact on
aggregate indexes of the banking sector of the Karachay-Cherkess
Republic was unsubstantial.  K2 Bank (JSC) is not a member of the
deposit insurance system.

K2 Bank (JSC) was a monoproduct bank with a business model
focused on issuing bank guarantees through a narrow network of
intermediaries (agents) on non-market conditions which
contradicted regular business practices.  As of August 1, 2018,
the portfolio of guarantees issued by the credit institution
totalled RUR9.5 billion and exceeded its capital more than
fivefold.  The bank incorrectly recorded expenses for a total of
roughly RUR400 million, associated with payments for intermediary
services related to principal engagement, which distorted its
financial result. Furthermore, a formal approach to assessment of
principals' business resulted in significant underestimation of
credit risks on the issued bank guarantees accepted by K2 Bank
(JSC).  The compliance with the Bank of Russia's requirements to
remedy the above violations established a substantial loss of the
bank's capital, while its operations were found to have reasons
for action to prevent the credit institution's insolvency
(bankruptcy), which created a real threat to its creditors'
interests.

The Bank of Russia had repeatedly (3 times over the last 12
months) applied supervisory measures against K2 Bank (JSC).

Under these circumstances, the Bank of Russia took the decision
to revoke the banking licence of K2 Bank (JSC).

The Bank of Russia takes this extreme measure -- revocation of
the banking license -- because of the credit institution's
failure to comply with federal banking laws and Bank of Russia
regulations, due to repeated application within a year of
measures envisaged by the Federal Law "On the Central Bank of the
Russian Federation (Bank of Russia)", considering a real threat
to the creditors' interests.

The Bank of Russia, by its Order No. OD-2277, dated August 31,
2018, appointed a provisional administration to K2 Bank (JSC) for
the period until the appointment of a receiver pursuant to the
Federal Law "On Insolvency (Bankruptcy)" or a liquidator under
Article 23.1 of the Federal Law "On Banks and Banking
Activities".  In accordance with federal laws, the powers of the
credit institution's executive bodies were suspended.

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



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


GC PASTOR 5: S&P Lowers Class B RMBS Notes Rating to 'D (sf)'
-------------------------------------------------------------
S&P Global Ratings lowered to 'D (sf)' from 'CC (sf)' its credit
rating on GC Pastor Hipotecario 5, Fondo de Titulizacion de
Activos' class B notes. All other classes of notes are unaffected
by (this) downgrade.

The level of cumulative defaults over the original portfolio
balance increased to 10.14% on the June 21, 2018 interest payment
date (IPD) from 9.96% at the March IPD.

Under the transaction documents, the class B notes' interest
deferral trigger is based on the level of cumulative defaults
over the original securitized balance. Due to the increased
defaults on the last IPD, the class B notes breached their 10.00%
interest deferral trigger on the June 2018 IPD. Consequently, the
class B notes' interest is unpaid.

S&P said, "Our ratings on GC Pastor Hipotecario 5 address timely
interest and ultimate principal payments. We expect the interest
shortfalls to last for a period of more than 12 months.
Therefore, in line with our temporary interest shortfall criteria
and our timeliness of payments criteria, we have lowered to 'D
(sf)' from 'CC (sf)' our rating on the class B notes."

GC Pastor Hipotecario 5 closed in June 2007 and securitizes a
portfolio of mortgages granted to individuals, self-employed
individuals, and small and midsize enterprises (SMEs) to buy
Spanish residential or commercial properties.


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


CLARION GB: September 13 Claims Submission Deadline Set
-------------------------------------------------------
Creditors of Clarion (G.B.) Ltd., which is being voluntarily
wound up, must send their full names and addresses (and those of
their Solicitors, if any), together with full particulars of
their debts or claims to Laura Waters at PricewaterhouseCoopers
LLP, 7 More London Riverside, London, SE1 2RT by September 13,
2018.

The distribution may be made without regard to the claim of any
person in respect of a debt not proved.

It is anticipated that all known Creditors will be paid in full.

Laura May Waters and Robert Nicholas Lewis were appointed joint
liquidators of the company on July 31, 2018.

Further information about this case is available from
Corinne Weekes at the offices of PricewaterhouseCoopers LLP on
07841 640918.  Further details are available in the privacy
statement at PwC.co.uk

The registered of the company is at:

          Thrings LLP
          The Paragon Counterslip
          Bristol, England BS1 6BX

The principal trading address is at:

          Unit 5C
          Interface Business Park
          Binknoll Lane
          Royal Wootton Bassett
          Swindon, Wiltshire SN4 800


ELIZABETH FINANCE: DBRS Finalizes BB Rating on Class E Notes
------------------------------------------------------------
DBRS Ratings Limited finalized its provisional ratings of the
following classes of notes issued by Elizabeth Finance 2018 DAC
(the Issuer):

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

All trends are Stable.

Elizabeth Finance 2018 DAC is a securitization of two British
senior commercial real estate (CRE) loans that were advanced by
Goldman Sachs International Bank (the Loan Seller). The two loans
are the GBP 69.6 million Maroon loan (original balance GBP 69.9
million), which was advanced to three borrowers, and the GBP 21.1
million (original balance GBP 21.2 million) MCR loan that was
advanced to Cypress hawk Limited. Both loans act as refinancing
facilities and have partially amortized since the origination
date. The collateral securing the Maroon loan comprises three
shopping centers located in England and Scotland; each property
is held by property holding companies (propcos) under the
respective Maroon borrower. The MCR loan is secured by a campus-
style office building located in Manchester, England. Oak tree
Capital Management (Oak tree) is the sponsor for the Maroon loan
while the sponsor of the MCR loan is Ms. Naeem Kauser as trustee
of the Mussarat Children's Trust.

The Maroon assets are the Kingsgate Shopping Centre, located in
Dunfermline in Scotland; the Vancouver Quarter, located in King's
Lynn in East England; and the Rushes Shopping Centre, located in
Loughborough in the East Midlands. Based on the valuation
provided by CBRE on 3 November 2017, the total market value (MV)
of the Maroon portfolio is GBP 104.7 million, which results in a
day-one loan-to-value (LTV) of 66.5%. Excluding H&M's pre-let
space in the Vancouver Shopping Centre, as at July 16, 2018 (the
Cut-Off Date) the properties were 89.2% occupied based on the
equivalent rental value (ERV) provided by CBRE and generate a
total GBP 10.0 million gross rental income (GRI) from 131
tenants. GBP 665,000 of the GRI is exposed to budget retailers
(Poundland, Pound world and Bargain Buys), of which GBP 500,000
rental income has been discounted by the Loan Seller as potential
rent loss from such retailers. Indeed, on 10 July 2018 Pound
world confirmed that it will close its shop in the Rushes
Shopping Centre, which is paying GBP 75,000 gross rent (0.8% of
the Maroon GRI) and occupying 5,226 square feet (0.6% of the
Maroon retail space). The annualized net operating income (NOI)
in Q2 2018 was GBP 8.5 million, representing a conservative debt
yield (DY) of 12.3%. DBRS's NOI and net cash flow (NCF)
assumptions are GBP 7.1 million and GBP 5.6 million,
respectively. The loan carries a floating interest rate equal to
three-month LIBOR (subject to zero floor) plus a margin of 2.7%
and is fully hedged with an interest rate cap at the strike rate
of 0.75% provided by Wells Fargo Bank, NA (London Branch). The
Maroon loan amortizes 1% of its initial loan amount each year and
matures on 15 January 2021, with two extension options lasting
one year each and subject to the satisfaction of certain
conditions. The cash trap and default covenants of the Maroon
loan are set at 70% and 75%, respectively, based on LTV or 1.75X
or 1.30X, respectively, based on debt servicing ratio.

The MCR loan served to refinance the existing debt of the
borrower, who has recently redeveloped the Universal Square,
which serves as the collateral of the MCR loan. The Universal
Square is a campus-style office asset comprising five buildings.
Four buildings are leased on standard commercial lease terms,
while one building has been converted to a business center to
suit the needs of small and medium-sized enterprises by providing
short-term leases for smaller units or for individual desks. The
LTV of the loan is 67.3% based on the GBP 31.4 million MV
estimated by Cushman & Wakefield Debenham Tie Leung Limited
(Cushman & Wakefield) on January 9, 2018. As at the Cut-Off Date,
the asset's physical occupancy was 83.7% with 119 tenants, of
which, 64 tenants are from the business center. The largest ten
tenants accounting for 60.2% of the GBP 3.1 million GRI. DBRS has
noted that the two largest tenants, Car Finance 247 Ltd. and
Softcat Ltd., contribute 32.0% to the GRI in total; however,
their leases are relatively long with the next lease breaks
falling on June 2, 2021 and August 2, 2020, respectively. The
sponsor's business plan is to lease up the remaining vacant space
by 5% p.a., starting from 2019. The Q2 2018 annualized NOI shows
GBP 2.7 million after the deductions of the rent-free and capex
expenses. DBRS's NOI and NCF assumptions are GBP 2.6 million and
GBP 2.4 million, respectively. The cash trap and default
covenants of the MCR loan are set at 72.3% and 77.3%,
respectively, based on LTV or 9.68% or 9.18%, respectively, based
on debt yield. Moreover, the cash will also be trapped should the
weighted-average unexpired lease term of the Universal Square
fall under one year. The loan bears interest at a floating
interest rate equal to three-month LIBOR (subject to zero floors)
plus a margin of 4.3%. The transaction is fully hedged with an
interest rate cap having a strike rate of 2.0% provided by Wells
Fargo Bank NA (London Branch). The loan maturity is on 15 July
2023, and the loan structure includes amortization of 1.0% p.a.
in Years 1 to 2, 2.0% p.a. in Years 3 to 4, and 2.5% in Year 5.

The transaction benefits from a liquidity facility of GBP 5.15
million, or 6.0% of the total outstanding balance of the covered
notes and is provided by ING Bank N.V. (the Liquidity Facility
Provider). The liquidity facility can be used to cover interest
shortfalls on the Class A, B, C and D notes. According to DBRS's
analysis, the commitment amount, as at closing, could provide
interest payment coverage up to approximately 19 months and nine
months coverage on the covered notes, based on the weighted-
average interest rate cap strike rate of 1.04% p.a. and the LIBOR
cap of 5% after loan maturity, respectively. Moreover, the Issuer
funded an interest reserve of GBP 100,000 using the proceeds from
note issuance. The reserve will stand to the credit of the issuer
transaction account and will form part of the interest available
funds on each interest payment date to cover interest shortfalls
on all of the notes (other than Class X). The interest reserve
amount (to the extent not utilized to cover interest shortfalls)
will be paid to the Class X note holder upon redemption of the
notes.

The transaction is expected to repay by July 20, 2023, after the
maturity of the MCR loan. Should the notes fail to be repaid by
then, this will constitute, among others, a special servicing
transfer event of the loan and the transaction has envisaged a
five-year tail period to allow the special servicer to work out
the loan(s) by July 2028 at the latest, which is the legal final
maturity of the notes.

Class E is subject to an available funds cap where the shortfall
is attributable to an increase in the weighted-average margin of
the notes.

The transaction includes a Class X diversion trigger event,
meaning that if the loans' financial covenants are breached, any
interest and prepayment fees due to the Class X note holders will
instead be paid directly into the Issuer transaction account and
credited to the Class X diversion ledger. However, only following
the expected note maturity or the delivery of a note acceleration
notice, could such funds be used to amortize the notes.

To maintain compliance with the applicable regulatory
requirements, Goldman Sachs International Bank has procured 5% of
each class of issued notes.

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


HOUSE OF FRASER: EWM Temporarily Closes Concessions
---------------------------------------------------
Tim Clark at Drapers Online reports that Philip Day's Edinburgh
Woollen Mill Group (EWM) has temporarily closed its House of
Fraser concessions, including Berwin & Berwin, Jaeger, Jane
Norman and Calvetron Brands while discussions continue.

As reported by the Troubled Company Reporter-Europe on Aug. 14,
2018, James Davey at Reuters related that Sports Direct, the
British sportswear retailer controlled by tycoon Mike Ashley,
snapped up House of Fraser from the department store group's
administrators for GBP90 million (US$115 million).  Earlier on
Aug. 10, House of Fraser appointed Ernst and Young as
administrators after talks with investors and creditors failed to
find "a solvent solution" for the business, Reuters disclosed.


HOUSE OF FRASER: Has Yet to Reach Compromise with XPO Logistics
---------------------------------------------------------------
Prachi Singh at Fashion United, citing Motor Transport, reports
that the GMB union representing workers at two XPO Logistics
centers in Milton Keynes and Wellingborough said the company's
differences with the department store chain House of Fraser are
yet to reach a compromise.

Earlier, a Drapers report said that the company's dispute with
its warehouse operator was resolved, Fashion United relates.

According to Fashion United, the union said the stalemate between
the two has also placed almost 627 people on the verge of losing
their jobs.

House of Fraser had earlier announced that due to delays in
delivering online orders, it had to cancel all orders and refund
the customers after its warehouse operator XPO Logistics stopped
processing orders due to a payment dispute, Fashion United
recounts.

The company owes GBP30.4 million to XPO Logistics, Fashion United
discloses.  Mike Ashley owned Sports Direct purchased the
struggling department store chain after it fell into
administration, for GBP90 million, Fashion United relays.
However, media reports said, it is not legally bound to pay the
suppliers' money owed before the transaction took place, Fashion
United notes.


HOUSE OF FRASER: Landlords Respond to Mike Ashley's Comments
------------------------------------------------------------
Tim Clark at Drapers Online reports that landlords and property
experts have hit back at Mike Ashley's claims that "greedy
landlords" will scupper his plans to save House of Fraser stores.

Mark Williams, president of retail property organization Revo,
said that landlords were "delighted" that HoF had been saved, but
was surprised that the Sports Direct boss had felt the need to
criticize landlords publicly over lease negotiations for some of
the 59 HoF stores, Drapers Online relates.

On Aug. 29, Sports Direct warned that "time was running out" to
keep stores open, Drapers Online notes.  Of the 59 stores in the
HoF estate, 48 are expected to remain open, Drapers Online
states.  The Hof company voluntary arrangement (CVA) proposals
would have closed 31 stores, according to Drapers Online.
However, under Sports Direct's plans, up to 28 stores would not
get any rent at all, although business rates and other overheads
would be paid, Drapers Online discloses.

Drapers Online revealed that HoF distribution centers, which had
re-opened following a payment dispute with Sports Direct, have
now closed once again.


LASER ABS 2017: Moody's Hikes Class D Notes Rating to Ba2(sf)
-------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of three
classes of Notes in LaSer ABS 2017 PLC. Moody's also affirmed the
rating of Class A Notes.

GBP430M Class A Notes, Affirmed Aaa (sf); previously on Mar 16,
2017 Definitive Rating Assigned Aaa (sf)

GBP63.1M Class B Notes, Upgraded to Aa2 (sf); previously on Mar
16, 2017 Definitive Rating Assigned A1 (sf)

GBP22.8M Class C Notes, Upgraded to Baa1 (sf); previously on Mar
16, 2017 Definitive Rating Assigned Baa3 (sf)

GBP17.1M Class D Notes, Upgraded to Ba2 (sf); previously on Mar
16, 2017 Definitive Rating Assigned Ba3 (sf)

RATINGS RATIONALE

The upgrade actions are prompted by the increased levels of
credit enhancement for the affected Notes and the reduced
uncertainty following the end of the replenishment period.
Moody's affirmed the rating of Class A Notes that had sufficient
credit enhancement to maintain their current rating.

The ratings on the Class C and D Notes also reflect the
correction of an error in the modelling of the structure. Credit
was incorrectly given in its initial analysis to the amortising
cash reserve of 1% of current Notes balance (subject to a floor)
as a source of credit enhancement. The error has now been
corrected, and Moody's's actions incorporate that change.

  -- Increase in Available Credit Enhancement:

Sequential amortisation after the replenishment period which
ended in March 2018 led to the increase in the credit enhancement
available for the affected Notes. The credit enhancement of Class
B has increased to 17.7% in August 2018 from 13.5% in March 2017.
The credit enhancement has increased to 12.4% from 9.5% for Class
C and to 8.5% from 6.5% for Class D during the same period.

Moody's affirmed the rating of Class A Notes that had sufficient
credit enhancement to maintain their current rating.

  -- Correction of an input in the cash-flow model:

In this transaction, the cash reserve is available for liquidity
purposes only, to cover senior fees and interest on the Class A
Notes, the Class B Notes and the Class C Notes during the life of
the transaction. It will not be available to cover any principal
payment nor defaults. However in its initial analysis, the
reserve fund was incorrectly modelled as a source of credit
enhancement. The correction to this input has a negative impact
on the Class C and Class D Notes given the more limited credit
enhancement in the form of subordinated Notes and available
excess spread.

  --- No Revision of Key Collateral Assumptions:

As part of the rating action, Moody's reassessed its default
probability ("DP") and expected loss assumptions for the
securitised portfolios reflecting the collateral performance to
date.

In LaSer ABS 2017 PLC, 60+ days delinquencies are at 5.8% of
current balance and cumulative defaults are 2.4% of original
balance plus replenishments as of August 2018, with pool factor
at 50.5%. Moody's maintained the mean DP assumption for this deal
at 6% of original pool balance, translating into a DP assumption
of 7.2% of the current pool balance. Moody's left the assumption
for the recovery rate and portfolio credit enhancement unchanged
at 15% and 21.5% respectively.

  -- Exposure to Counterparty Risk:

Moody's has reviewed the counterparty risk and concluded that the
ratings on all Notes are not constrained by counterparty exposure
in this transaction.

The principal methodology used in these ratings was 'Moody's
Approach to Rating Consumer Loan-Backed ABS' published in
September 2015.

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

Factors or circumstances that could lead to an upgrade of the
ratings include (1) performance of the underlying collateral that
is better than Moody's expected and (2) deleveraging of the
capital structure.

Factors or circumstances that could lead to a downgrade of the
ratings include (1) an increase in sovereign risk, (2)
performance of the underlying collateral that is worse than
Moody's expected, (3) deterioration in the Notes' available
credit enhancement and (4) deterioration in the credit quality of
the transaction counterparties.


SYNLAB UNSECURED: Fitch Affirms B Long-Term IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Synlab Unsecured Bondco PLC's (Synlab)
Long-Term Issuer Default Rating (IDR) at 'B' with a Stable
Outlook. Fitch has also affirmed Synlab Bondco PLC's senior
secured instrument rating at 'B+'/'RR3'/'52%' and Synlab's senior
instrument rating at 'CCC+'/'RR6'/'0%'.

Synlab's IDR of 'B' is supported by the growing scale of the
business as well as the defensive nature of routine medical
testing. The rating is however constrained by significant
financial leverage as Synlab continues to be an active player in
the accelerating consolidation of the fragmented laboratory
testing industry, benefiting from increased scale.

Its ratings assume an improvement in underlying organic growth,
profitability and cash conversion to counterbalance the high
financial leverage and offset the currently diverging business
and financial risk profiles - an expectation which Fitch reflects
in the Stable Outlook.

KEY RATING DRIVERS

Stretched Leverage; Business Model Supportive. Fitch views the
capital structure of the group as highly leveraged, with funds
from operations (FFO) adjusted gross leverage peaking at around
9.0x in 2017 (pro forma for acquisitions) and FFO fixed charge
cover remaining just around 2.0x over its four-year rating
horizon. Fitch views such leverage as high for the 'B' rating
level, but the rating is supported by its assumption of improving
free cash flow (FCF) generation, projected to trend towards 5.0%
in its rating case, a reflection of Synlab's defensive business
model, which increasingly benefits from scale advantages.

Accelerating Growth and Profitability: Fitch expects that a
stronger focus on organic growth and operational efficiencies
under Synlab's new management will lead to enhanced
profitability, building on encouraging 1H18 interim results.
Assuming continued acquisitions, which in the past also have been
supported by equity injections, its rating case projects annual
growth rates exceeding 6% (of which Fitch assumes 2.0%-2.5% to be
sustainable organic growth), EBITDA margins advancing to above
19%, and FFO margins above 11%. These elements support the Stable
Outlook.

Volume Growth Supports Profitability: Fitch expects structural
pressures on pricing to continue in many of Synlab's core markets
as healthcare payers seek to manage rising medical cost
inflation. However Fitch expects this trend to be counter-
balanced by volume growth associated with increasing demand from
an ageing population, in combination with more preventive
treatments and improved testing technology. In addition, Fitch
increasingly views Synlab's improving scale and diversification
across products and geographies as protection against individual
adverse regulatory action. Hence, Fitch assesses a sustainable
EBITDA margin for this business at just below 20%.

Targeted M&A Strategy to Continue: Fitch expects an acceleration
of Synlab's "buy-and-build" strategy to consolidate the
fragmented laboratory testing market. Synlab's M&A strategy
follows two distinct routes comprising smaller bolt-on
acquisitions to increase the scale of its existing regional
laboratory networks, and strategic larger acquisitions adding
product and geographic diversification. Its rating case assumes
an annual EUR200 million acquisition budget over the four-year
rating horizon to 2022.

Reflecting an increasingly competitive bidding process for lab
testing assets, Fitch expects upward pressure on EV/EBITDA
multiples to around 9.0x for smaller bolt-on and medium sized
acquisitions in the sector (which has been incorporated in its
rating case assumptions).

Manageable Execution Risk: Fitch views the execution risks
associated with the individual M&A transactions as manageable,
but the recent softer performance has highlighted some negative
effects of growing scale and complexity in managing a fast-
growing, M&A-driven business. Its ratings assume that Synlab will
strengthen its focus on execution and integration of acquired
businesses under its new management to fully deliver on synergies
and organic growth potential.

Above-Average Recoveries for Senior Secured Notes: The
'B+'/'RR3'/'52%' instrument rating on the senior secured debt,
one notch above the IDR, reflects its expectation of above-
average recoveries in a hypothetical default situation. In its
analysis, Fitch expects a going-concern restructuring scenario to
yield stronger recoveries for creditors than a liquidation. Its
recovery analysis assumes a distressed sale of the group as a
whole because a liquidation of individual labs could prove
challenging given laboratory ownership regulatory constraints in
various European jurisdictions, and in particular clinical
pathologists' pre-emptive rights in France.

In its recovery assessment, Fitch conservatively values Synlab on
the basis of a 6.0x EV/EBITDA multiple applied to an estimated
post-restructuring EBITDA of EUR258 million (2017 EBITDA adjusted
for full-year acquisition effects discounted by 20%)

Poor Recovery Prospects for Senior Unsecured Notes: Based on its
recovery assumptions, the senior notes issued by Synlab Unsecured
Bondco PLC have poor recovery prospects in a default scenario
given their subordination to the super senior RCF and certain
other obligations of non-guarantor subsidiaries as well as the
senior secured notes in the debt waterfall. This is reflected in
the instrument rating of 'CCC+'/'RR6'/'0%'.

DERIVATION SUMMARY

Following the merger of Synlab and Labco in 2015, the combined
group is the largest lab testing company in Europe, twice the
size of its nearest competitor, Sonic Healthcare. Its operations
consist of a network of 470 laboratories across 37 countries,
providing good geographical diversification and limited exposure
to single healthcare systems.

The company's EBITDA margin at around 18% slightly lags behind
European industry peers, due to its exposure to the German market
with structurally lower profitability. The laboratory testing
market in Europe has attracted significant private equity
investment, leading to highly leveraged financial profiles.
Synlab is highly geared for its assigned rating level (pro forma
annualised FFO adjusted gross leverage at around 9.0x in 2017),
which is a key rating constraint. However, this high financial
risk profile is mitigated by a defensive and stable business risk
profile and its expectations that Synlab will be able to generate
satisfactory free cash flow, in line with sector peers, once the
current restructuring programme has been successfully
implemented.

KEY ASSUMPTIONS

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

  - Low to mid-single digit organic growth in key markets

  - EBITDA margin gradually improving towards 19.5% due to cost
savings and economies of scale achieved from the enlarged group

  - Around EUR200 million of bolt-on acquisitions per annum
funded by debt drawdowns and some shareholder support

  - Moderate capital intensity with capex/sales estimated at
around 4.0-4.5%

  - Satisfactory FCF generation of around 4%-5% on average over
the four-year rating horizon

  - No dividends paid

RATING SENSITIVITIES

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

  - FFO adjusted gross leverage above 8.0x or FFO fixed charge
cover at less than 1.3x for a sustained period (both adjusted for
acquisitions)

  - Reduction in FCF margin to only slightly positive levels or
large debt-funded and margin-dilutive acquisition strategy could
also prompt a negative rating action

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

  - FFO adjusted gross leverage below 6.5x and FFO fixed charge
cover above 2.0x

  - Improved FCF margin in the mid- to high single digits or more
conservative financial policy reflected in lower debt-funded M&A
spending

LIQUIDITY

Satisfactory Liquidity: Synlab has access to a super-senior RCF
of EUR250 million due in 2021, which remains undrawn at present.
Liquidity is aided by the EUR250 million raised by the increase
of Novo's equity stake from April 2017, which has added to cash
on balance sheet. Synlab's funding structure is long-dated with
no meaningful debt maturities before 2021.

FULL LIST OF RATING ACTIONS

Synlab Bondco PLC

  - Senior secured RCF affirmed at 'BB'/'RR1'/'100%'

  - Senior secured notes affirmed at 'B+'/'RR3'/'52%'

Synlab Unsecured Bondco PLC

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

  - Senior notes affirmed at 'CCC+'/'RR6'/'0%'



                            *********

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

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

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


                            *********


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

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

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

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