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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

         Thursday, September 6, 2018, Vol. 19, No. 177


                            Headlines


G E R M A N Y

TELE COLUMBUS: Moody's Affirms B2 CFR, Alters Outlook to Negative
THYSSENKRUPP AG: Moody's Affirms Ba2 CFR, Outlook Now Stable


I R E L A N D

BLUEMOUNTAIN FUJI III: Moody's Rates EUR10.5MM Class F Notes B2
BLUEMOUNTAIN FUJI III: Fitch Assigns B- Rating to Class F Debt


N E T H E R L A N D S

TIKEHAU CLO IV: Moody's Assigns B2 Rating to Class F Notes
TIKEHAU CLO IV: Fitch Assigns B- Rating to Class F Notes


T U R K E Y

TURKEY: Needs to Reverse Downward Slide of Institutions


U N I T E D   K I N G D O M

CLIFTON QUALITY: Enters Administration, Halts Trading
GAUCHO: Investec, SC Lowy to Buy Business Out of Administration
HOUSE OF FRASER: Ashley Accuses Ex-Directors of "Mismanagement"
PREZZO: Exeter City Branch to Close on September 16
PUNCH TAVERNS: Fitch Affirms B Ratings on Three Note Classes


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G E R M A N Y
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TELE COLUMBUS: Moody's Affirms B2 CFR, Alters Outlook to Negative
-----------------------------------------------------------------
Moody's Investors Service has changed the outlook on the ratings
of Tele Columbus AG to negative from positive. At the same time,
Moody's has affirmed the company's B2 corporate family rating,
the B2-PD probability of default rating and the B2 senior secured
debt ratings.

"The change in outlook to negative from positive takes into
account the unprecedented material operational challenges facing
the business, which will lead to a meaningful under-performance
of the company's EBITDA in 2018. As a result, the company's
leverage is expected to deteriorate to around 5.8x by year end,
from its previous forecast of around 5.0x," says Gunjan Dixit, a
Moody's Vice President -- Senior Credit Officer and lead analyst
for Tele Columbus.

"It further reflects the company's tight liquidity profile with a
heavy reliance on the revolving credit facility (RCF) as well as
reduced covenant headroom of around 10% expected by the end of
2018," adds Mrs. Dixit.

RATINGS RATIONALE

On August 31, 2018, Tele Columbus reported weak results for H1
2018 (year-on-year revenue decline of 2.2%; normalized EBITDA
decline of 4.5%) and materially revised the growth guidance for
2018 downwards. The company now expects a normalized EBITDA of at
least EUR235 million (compared to its previous guidance of
EUR265-EUR280 million) in 2018 with a stable revenue development.
The normalized EBITDA target includes a significant ramp-up of
marketing spend in H2 2018. Furthermore, the management board
expects significantly reduced non-recurring costs year on year in
H2 2018. The management board will provide an update on the
growth path for the company only in early 2019.

Tele Columbus faced several changes in its management over 2018
(new CEO and CFO appointed in January and July) and the new
management has recently been focusing at finalizing the
integration project. The management team has acknowledged that
the integration of Pepcom took longer than expected and required
more resources to be allocated; the integration is now expected
to be completed by Q3 2018. The new management has also
harmonized recognition policies for Homes Connected and revenue
generating units across Tele Columbus, Primacom and Pepcom in
order to provide more clarity and transparency going forward.

While the new management team remains committed and focused on
the execution of the turnaround plan, it still needs to address a
number of challenges such as the timely and successful completion
of the Pepcom integration, transition of analogue TV to digital,
and the rollout of the ERP/BSS platforms. Moody's therefore
cautiously takes into consideration the meaningful execution
risks associated with the turnaround plan.

The company's gross debt/ EBITDA (as adjusted by Moody's) was
5.2x based on the last twelve months ended June 30, 2018. Moody's
expects this ratio to deteriorate to around 5.8x by the end of
the year based on the company's updated EBITDA guidance.
Furthermore, it remains unclear if the business will turnaround
successfully such that the normalized EBITDA is back to growth
from 2019. This implies that the company's leverage may remain
high for the next 12-18 months.

As of June 30, 2018, the company had cash and cash equivalents of
EUR28.3 million and drawings of EUR47 million under its EUR50
million RCF (due 2021). The company's free cash flow (after
capex) was -- EUR33 million in H12018, and for full year 2018,
Moody's expects it to improve slightly but still remain negative.
This implies that the company will continue to rely on its cash
balance for the rest of 2018. In this regard, Moody's recognizes
that the company's RCF is restricted by a maintenance financial
covenant set at 6.5x (net debt/consolidated EBITDA, tested when
the RCF is 35% drawn on a quarterly basis) under which headroom
will tighten to around 10% by the end of 2018.

While the company is confident that it should generate sufficient
cash flows going forward to cover its business requirements (as
the non-recurring items related to the integration project are
likely to be minimal after 2018), Moody's notes that the company
can take additional measures to restore its liquidity position
such as temporarily reducing its discretionary capex and drawing
under the relevant carve-outs provided in its debt documentation.
Besides the RCF, the company does not face any debt maturities
before 2024 when its outstanding EUR707 million term loan falls
due.

Tele Columbus' B2 CFR continues to reflect the (1) company's
solid market position in core eastern German territories as well
as key cities such as Hamburg, Berlin and Munich; (2) good
quality of the fully owned and upgraded network; (3) long term
contracts with housing associations supporting stability of
revenues; and (4) the benefits in terms of additional disclosure
and access to equity capital markets from its IPO in 2015.

However, the rating remains cognizant of (1) the relatively small
scale of company's operations compared with other rated peers;
(2) continued competition mainly from telecoms, which could
intensify further should Vodafone Group Plc's (Baa1, on review
for downgrade) acquisition of Unitymedia GmbH (B1, on review for
upgrade) materialize in 2019; (3) high reported leverage, above
the company's medium-term target of 3.0x-4.0x; and (4) capital
spending peak limiting free cash flow generation as well as
current tight liquidity position.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects the uncertainties surrounding (1)
the successful execution of the company's turnaround plan and (2)
the likelihood of the business returning to growth from 2019
onwards. It also takes into consideration the tight liquidity
position of the company.

Stabilization of outlook will require (1) evidence that the
business is on path to sustained revenue and EBITDA growth; (2)
improvement in the group's liquidity position; and (3) reduction
in the company's gross leverage to below 5.5x (Moody's adjusted).

WHAT COULD CHANGE THE RATING -- DOWN/ UP

Downward pressure for the rating could ensue in case (1) of a
more than temporary deterioration of Tele Columbus' Moody's
adjusted gross debt/EBITDA leverage ratio to a level above 5.5x;
(2) of a failure in timely executing the turnaround plan such
that the business fails to return to growth for a pro-longed
period; and/ or (3) the management does not pro-actively address
the company's tight liquidity position.

Upward ratings pressure is unlikely to develop in the near term.
However, it could likely develop over time with (1) the business
returning back to strong revenue and EBITDA growth; (2) steady
operating progress including a continued growth in company's
triple-play penetration while maintaining a stable homes
connected base; and (3) maintenance of Moody's adjusted gross
debt/EBITDA ratio sustainably below 4.5x together with positive
free cash flow generation (after capex and dividends).

PRINCIPAL METHODOLOGY

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

Tele Columbus AG is a holding company, which through its
subsidiaries offers basic cable television services (CATV),
premium TV services and, where the network is migrated and
upgraded, Internet and telephony services in Germany where it is
the third largest cable operator. The company is based in Berlin
(Germany) and reported revenue of EUR491 million and EBITDA of
EUR259 for the last twelve months period to June 30, 2018.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: Tele Columbus AG

Probability of Default Rating, Affirmed B2-PD

Corporate Family Rating, Affirmed B2

Senior Secured Bank Credit Facility, Affirmed B2

Senior Secured Regular Bond/Debenture, Affirmed B2

Outlook Actions:

Issuer: Tele Columbus AG

Outlook, Changed To Negative From Positive


THYSSENKRUPP AG: Moody's Affirms Ba2 CFR, Outlook Now Stable
------------------------------------------------------------
Moody's Investors Service has changed to stable from developing
the outlook on the Ba2 corporate family rating and Ba2-PD
probability of default rating of German steel and capital goods
manufacturer thyssenkrupp AG. At the same time, Moody's has
affirmed these ratings. Concurrently, the senior unsecured debt
of thyssenkrupp AG was affirmed at Ba2, including the (P)Ba2 debt
issuance programme rating. Moody's has also affirmed the short-
term ratings of tk at NP/(P)NP.

RATINGS RATIONALE

The stabilization of the outlook and rating affirmation reflects
Moody's expectation that tk will close its pending joint venture
with Tata Steel at the recently agreed favourable terms, and will
be able to restore its credit metrics to the levels commensurate
with the Ba2 rating over the next 12-18 months. Moody's also
expects that the group's future strategy, after the uncertainties
regarding the CEO position are resolved, will not result in a
material revision of its currently implemented financial
improvement measures and medium-term targets. As a result of the
pending deconsolidation of the steel business, Moody's now rates
tk under the Global Manufacturing Companies rating methodology
and no longer under the Steel Industry rating methodology.

The rating action follows the group's recent publication of its
third fiscal quarter results, ended June 30, 2018, which have
been overall weak. Although quarterly order intake and sales
increased by around 7% year-over-year (yoy), indicating robust
near-term growth prospects, substantial additional project costs
of around EUR200 million were incurred in the Industrial
Solutions (IS) business. This, together with headwinds from
higher input costs and adverse currency effects in the Elevator
Technology (ET) and Components Technology (CT) businesses, more
than offset sizeable corporate cost reductions and drove down
consolidated EBIT (as adjusted by the group) to EUR332 million (-
36% year-on-year). Likewise, free cash flow before M&A (as
defined by the group) remained negative at EUR211 million and
negative EUR1.6 billion for the nine months ended June 30, 2018,
albeit markedly better than in the previous year.

The rating action also factors in the anticipated changes in tk's
business model post completion of the 50/50 joint venture with
Tata Steel, for which the final terms have recently been agreed,
broadly in line with the initial and overall credit neutral
terms. Expecting the transaction to close in the next two to
three quarters, while EU antitrust approvals remain outstanding,
the future de-consolidation of the Steel Europe (SE) business
will initially weaken tk's credit metrics. This primarily
reflects the earnings losses from the recently outperforming
steel business, while the de-recognition of related liabilities
(including about EUR3.8 billion of pension obligations) is
insufficient to prevent leverage increasing towards 5.5x Moody's-
adjusted gross debt/EBITDA at fiscal-year (FY) end 2017/18 on a
pro forma basis excluding SE (versus Moody's-adjusted 4.7x for
FY2016/17 including SE), a fairly stretched level for the Ba2
rating. However, Moody's continues to take into account the
group's still high cash balance of around EUR3.2 billion at June
30, 2018, which it could use for debt repayments to accelerate
de-leveraging. As of June 30, 2018, adjusted net debt/EBITDA was
3.4x and is projected around this level on a pro forma basis in
FY 2017/18, while the Ba2 rating reflects Moody's expectation
that management will prioritize debt reduction. Also, tk's
management foresees the deconsolidation of SE to result in cash
savings for pensions of around EUR200 million per annum going
forward.

Moody's expects tk to be able to gradually strengthen its
profitability and cash flow generation (excluding SE) to more
appropriate levels for the Ba2 rating as the group progresses
with its improvement and restructuring efforts across its
remaining business areas over the next two to three years. This
takes into account management's focus on strengthening
profitability at each business area until FY 2020/21 and
substantially improving the group's still poor free cash flow
generation, which is currently negative. Aiming at consolidated
free cash flow before M&A (as defined by the group) reaching at
least EUR1 billion by FY 2020/21, management has -- for the first
time -- provided cash flow targets by business area. This also
includes IS, for which it foresees some EUR800 million (including
EUR200 million for Marine Systems) of cash flow improvements by
FY 2020/21 versus 2016/17. Moody's therefore expects that tk's
cash flow metrics will steadily recover to solid levels for its
rating in the coming two to three years.

Nonetheless, Moody's regards the group's medium-term targets as
fairly ambitious, with only limited visibility over a timely
execution at this stage. In particular, the group's remaining
businesses currently experience various challenges, namely
ongoing input cost inflation, rising competitive pressures and
foreign currency headwinds at the CT and ET businesses, while the
current positive momentum in the Material Services business may
not last much longer. In addition, Moody's recognizes that the
recent departure of the CEO and chair of the supervisory board as
well as the presence of activist shareholders create some
strategic uncertainty. Any credit negative strategic decision in
conjunction with a lack of improving operational performance
could lead to a more negative assessment of tk.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectation that tk's credit
metrics will recover to appropriate levels for the Ba2 rating
within 12-18 months after the closing of its JV with Tata Steel,
including leverage declining below 5x Moody's-adjusted
debt/EBITDA and gradually improving cash flow metrics.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Moody's could upgrade the ratings if tk's (1) liquidity remains
strong and the group is able to maintain a considerable cash
cushion, (2) gross debt/EBITDA decreases to around 4x, and (3)
free cash flow turns sustainably positive (all metrics are
Moody's-adjusted).

Conversely, Moody's could downgrade the ratings if tk's (1)
profitability materially deteriorates from the current already
weak levels (e.g. 3.5% EBITA margin), (2) gross debt/EBITDA
exceeds 5.5x, and (3) free cash flow remains consistently
negative (all metrics are Moody's-adjusted).

The principal methodology used in this rating was Global
Manufacturing Companies published in June 2017.

Germany-based thyssenkrupp AG (tk) is a diversified industrial
conglomerate operating in about 79 countries. In fiscal year
ended September 2017 (FY 2016/17), tk reported sales from
continuing operations of EUR41.4 billion and generated Moody's-
adjusted EBITDA of EUR2.8 billion. The group is engaged in steel
manufacturing and steel-related services through the operations
of Steel Europe and Materials Services business areas, and in
capital goods manufacturing through the operations of Elevator
Technology, Industrial Solutions and Components Technology
business areas. Currently tk's largest shareholders are the
Alfried Krupp von Bohlen und Halbach Foundation holding around
21% of the voting rights in tk, and Cevian Capital with more than
15%.


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I R E L A N D
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BLUEMOUNTAIN FUJI III: Moody's Rates EUR10.5MM Class F Notes B2
---------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by BlueMountain Fuji
EUR CLO III DAC:

EUR207,000,000 Class A-1 Senior Secured Floating Rate Notes due
2031, Assigned Aaa (sf)

EUR10,000,000 Class A-2 Senior Secured Fixed Rate Notes due 2031,
Assigned Aaa (sf)

EUR32,900,000 Class B Senior Secured Floating Rate Notes due
2031, Assigned Aa2 (sf)

EUR23,100,000 Class C Deferrable Mezzanine Floating Rate Notes
due 2031, Assigned A2 (sf)

EUR17,500,000 Class D Deferrable Mezzanine Floating Rate Notes
due 2031, Assigned Baa2 (sf)

EUR24,500,000 Class E Deferrable Junior Floating Rate Notes due
2031, Assigned Ba2 (sf)

EUR10,500,000 Class F Deferrable Junior Floating Rate Notes due
2031, Assigned B2 (sf)

RATINGS RATIONALE

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

The Issuer is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured obligations and up to
10% of the portfolio may consist of senior unsecured obligations,
second-lien loans, mezzanine obligations and high yield bonds.
The portfolio is expected to be 80% ramped as of the closing date
and to be comprised predominantly of corporate loans to obligors
domiciled in Western Europe. The remainder of the portfolio will
be acquired during the seven month ramp-up period in compliance
with the portfolio guidelines.

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

In addition to the seven classes of notes rated by Moody's, the
Issuer has issued EUR1,000,000 of Class M Notes and EUR32,950,000
of Subordinated Notes which are not rated. The Class M Notes
accrue interest in an amount equivalent to a certain proportion
of the subordinated management fees.

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

Methodology underlying the rating action:

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

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

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

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
August 2017.

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

Par Amount: EUR 350,000,000

Diversity Score: 42

Weighted Average Rating Factor (WARF): 2890

Weighted Average Spread (WAS): 3.40%

Weighted Average Recovery Rate (WARR): 44.5%

Weighted Average Life (WAL): 8.5 years

Moody's has addressed the potential exposure to obligors
domiciled in countries with local currency country risk ceiling
(LCC) of A1 or below. As per the portfolio constraints, exposures
to countries with LCC of A1 or below cannot exceed 10%, with
exposures to LCC of Baa1 to Baa3 further limited to 5% and with
exposures of LCC below Baa3 not greater than 0%.


BLUEMOUNTAIN FUJI III: Fitch Assigns B- Rating to Class F Debt
--------------------------------------------------------------
Fitch Ratings has assigned BlueMountain Fuji Europe CLO III DAC
final ratings, as follows:

EUR207 million Class A-1: 'AAAsf'; Outlook Stable

EUR10 million Class A-2: 'AAAsf'; Outlook Stable

EUR32.9 million Class B: 'AAsf'; Outlook Stable

EUR23.1 million Class C: 'Asf'; Outlook Stable

EUR17.5 million Class D: 'BBBsf'; Outlook Stable

EUR24.5 million Class E: 'BBsf'; Outlook Stable

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

EUR1 million Class M: not rated

EUR32.95 million subordinated notes: not rated

BlueMountain Fuji Europe CLO III DAC is a securitisation of
mainly senior secured obligations (at least 90%) with a component
of senior unsecured, mezzanine, and second-lien loans. A total
note issuance of EUR359.45 million is being used to fund a
portfolio with a target par of EUR350 million. The portfolio is
managed by BlueMountain Fuji Management, LLC. The CLO envisages a
3.9-year reinvestment period and an 8.5-year weighted average
life (WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'
range. The Fitch-weighted average rating factor (WARF) of the
identified portfolio is 32.2.

High Recovery Expectations

At least 90% of the portfolio comprises senior secured
obligations. Recovery prospects for these assets are typically
more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-weighted average recovery rating (WARR) of the
identified portfolio is 68.4%.

Diversified Asset Portfolio

The transaction features different Fitch test matrices with
different allowances for exposure to the 10 largest obligors
(maximum 15% and 27.5%). The manager can then interpolate between
these matrices. The transaction also includes limits on industry
exposure based on Fitch's industry definitions. The maximum
exposure to the three largest (Fitch-defined) industries in the
portfolio is covenanted at 40%. These covenants ensure that the
asset portfolio will not be exposed to excessive concentration.

Portfolio Management

The transaction features a 3.9-year reinvestment period and
includes reinvestment criteria similar to other European
transactions. Fitch analysis is based on a stressed-case
portfolio with the aim of testing the robustness of the
transaction structure against its covenants and portfolio
guidelines.

Cash Flow Analysis

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

RATING SENSITIVITIES

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

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

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

DATA ADEQUACY

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

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


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N E T H E R L A N D S
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TIKEHAU CLO IV: Moody's Assigns B2 Rating to Class F Notes
----------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by Tikehau CLO IV
B.V.

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

EUR 231,000,000 Class A-1 Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aaa (sf)

EUR 15,000,000 Class A-2 Senior Secured Fixed Rate Notes due
2031, Definitive Rating Assigned Aaa (sf)

EUR 7,000,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aa2 (sf)

EUR 15,000,000 Class B-2 Senior Secured Fixed Rate Notes due
2031, Definitive Rating Assigned Aa2 (sf)

EUR 22,000,000 Class B-3 Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aa2 (sf)

EUR 7,000,000 Class C-1 Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned A2 (sf)

EUR 19,000,000 Class C-2 Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned A2 (sf)

EUR 21,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned Baa2 (sf)

EUR 23,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned Ba2 (sf)

EUR 12,000,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

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

Tikehau CLO IV B.V. is a managed cash flow CLO. At least 90% of
the portfolio must consist of senior secured obligations and up
to 10% of the portfolio may consist of senior unsecured
obligations, second-lien loans, mezzanine obligations and high
yield bonds. The portfolio is expected to be 80% ramped up as of
the closing date and to be comprised predominantly of corporate
loans to obligors domiciled in Western Europe. The remainder of
the portfolio will be acquired during the six month ramp-up
period in compliance with the portfolio guidelines.

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

In addition to the eleven classes of notes rated by Moody's, the
Issuer issued EUR 38,300,000 of subordinated notes which will not
be rated.

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

Methodology underlying the rating action:

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

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

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

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
August 2017.

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

Par Amount: EUR 400,000,000

Diversity Score: 45

Weighted Average Rating Factor (WARF): 2644

Weighted Average Spread (WAS): 3.45%

Weighted Average Coupon (WAC): 4.25%

Weighted Average Recovery Rate (WARR): 42.50%

Weighted Average Life (WAL): 8.75 years


TIKEHAU CLO IV: Fitch Assigns B- Rating to Class F Notes
--------------------------------------------------------
Fitch Ratings has assigned Tikehau CLO IV B.V.'s notes final
ratings, as follows:

Class X: 'AAAsf'; Outlook Stable

Class A-1: 'AAAsf'; Outlook Stable

Class A-2: 'AAAsf'; Outlook Stable

Class B-1: 'AAsf'; Outlook Stable

Class B-2: 'AAsf'; Outlook Stable

Class B-3: 'AAsf'; Outlook Stable

Class C-1: 'Asf'; Outlook Stable

Class C-2: 'Asf'; Outlook Stable

Class D: 'BBBsf'; Outlook Stable

Class E: 'BBsf'; Outlook Stable

Class F: 'B-sf'; Outlook Stable

Subordinated notes: not rated

Tikehau CLO IV B.V. is a cash flow collateralised loan obligation
(CLO). Net proceeds from the notes have been used to purchase a
portfolio of EUR400 million of mostly European leveraged loans
and bonds. The portfolio is actively managed by Tikehau Capital
Europe Limited. The CLO envisages a 4.25 year reinvestment period
and an 8.5 year weighted average life (WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'
range. The Fitch-weighted average rating factor (WARF) of the
identified portfolio is 31.97.

High Recovery Expectations

At least 90% of the portfolio comprises senior secured
obligations. Fitch views the recovery prospects for these assets
as more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-weighted average recovery rate (WARR) of the
current portfolio is 67.23.

Diversified Asset Portfolio

The manager can interpolate between two matrices for a top 10
obligors concentration between 16% and 20%.. The transaction also
includes limits on maximum industry exposure based on Fitch
industry definitions. The maximum exposure to the three largest
(Fitch-defined) industries in the portfolio is covenanted at 40%.
These covenants ensure that the asset portfolio will not be
exposed to excessive concentration.

Reinvestment Criteria Similar to Peers

The transaction features a 4.25 year reinvestment period and
includes reinvestment criteria similar to other European
transactions. Fitch's analysis is based on a stressed-case
portfolio with the aim of testing the robustness of the
transaction structure against its covenants and portfolio
guidelines.

Ratings Resilient to Rate Mismatch

Up to 10% of the portfolio can be invested in fixed-rate assets,
while fixed-rate liabilities represent 7.5% of the target par.
Fitch modelled both 0% and 10% fixed-rate buckets and found that
the rated notes can withstand the interest rate mismatch
associated with each scenario.

Limited FX Risk

The transaction is allowed to invest up to 25% of the portfolio
in non-euro-denominated assets, provided these are hedged with
perfect asset swaps within six months of purchase. Unhedged
obligations are limited at 2.5% and subject to principal
haircuts. Unhedged obligations can only be purchased if the
transaction is above the reinvestment target par.

RATING SENSITIVITIES

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

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

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

DATA ADEQUACY

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

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


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


TURKEY: Needs to Reverse Downward Slide of Institutions
-------------------------------------------------------
Daron Acemoglu at Bloomberg News reports that the lira crisis has
faded from the headlines, but the Turkish government's stopgap
measures to halt the hemorrhaging will not fix what ails the
economy.

According to Bloomberg, there are other crises around the corner:
foreign capital flows financing the country's massive current
account deficit have dried up following the row between President
Donald Trump and President Recep Tayyip Erdogan over the fate of
Andrew Brunson, the American pastor jailed by Turkish
authorities.  The heavily indebted corporate sector, especially
real-estate and construction companies, are hanging by a thread,
Bloomberg discloses.

How does Ankara get out of this mess? There has been no dearth of
policy prescriptions, Bloomberg states.  Some, like Paul Krugman,
have recommended temporary capital controls and the repudiation
of foreign-currency debt, Bloomberg relates.  Others are pointing
to ways to shore up the corporate or the banking sector, by
restructuring private-sector debt, tightening fiscal discipline
and perhaps reaching out to the International Monetary Fund
again, Bloomberg notes.  But what Turkey needs to do is both
simpler and more difficult: Start reversing the downward slide of
its institutions, Bloomberg says.

The roots of the crisis lie not in fickle foreign investors or
the tweetstorms of a capricious American president, but in
structural problems: low productivity in the corporate sector,
unsustainable credit growth, and corporate overextension, notes
Bloomberg News.  These problems are themselves grounded in the
decline of economic and political institutions over the past
decade, Bloomberg relays.


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


CLIFTON QUALITY: Enters Administration, Halts Trading
-----------------------------------------------------
Business Sale reports that a collaboration between two family
businesses with more than 100 years of history, Clifton Quality
Meats has ceased trading after being affected by trading
difficulties.

With headquarters in Blackpool, the fine meat specialist traded
from three locations and had an annual sales turnover of GBP10
million, Business Sale discloses.

The trading difficulties were further worsened through the recent
good weather and poor crop growth, impacting the weight of lambs
which were forecasted to be down 40%, Business Sale relates.

The collapse of Russell Hume also did not assist the firm as the
sector relies heavily on credit insurance and having a business
from the industry fail resulted in the insurance company being
badly hit and therefore a raise in the costs for other other
customers, Business Sale states.

Sarah O'Toole -- Sarah.A.OToole@uk.gt.com -- and Jason Bell --
jason.bell@uk.gt.com -- of Grant Thornton LLP were appointed as
joint administrators on August 24, 2018, according to Business
Sale.

The business employed 80 employees, who have now all been taken
up by another firm, Clifton Buying Group, Business Sale notes.


GAUCHO: Investec, SC Lowy to Buy Business Out of Administration
---------------------------------------------------------------
Diane King at The Scotsman reports that restaurant chain Gaucho
is to be bought out of administration by banking groups Investec
and SC Lowy, securing the future of 750 jobs.

According to The Scotsman, administrator Deloitte said on Sept. 5
the duo, which are Gaucho's lenders, created a new vehicle
through which to acquire the casual dining firm.

The deal will see Gaucho's 16 steak restaurants saved, along with
the firm's staff, The Scotsman discloses.

However, the purchase requires a company voluntary arrangement
(CVA) in order to dump liabilities linked to Gaucho's sister
restaurant chain Cau, which collapsed in July with the loss of
540 jobs, The Scotsman states.  Creditors, including landlords,
must approve the CVA, The Scotsman notes.

As part of the deal, Gaucho chef executive Oliver Meakin has
announced that he is stepping down from the company, The Scotsman
relates.

The sale is expected to complete in mid-October following
approval of the CVA, according to The Scotsman.


HOUSE OF FRASER: Ashley Accuses Ex-Directors of "Mismanagement"
---------------------------------------------------------------
Ben Woods at The Telegraph reports that Sports Direct boss
Mike Ashley has taken a further swipe at former House of Fraser
chairman Frank Slevin, accusing him of retaining a company car
and flat as the retailer collapsed.

The tracksuit tycoon bought troubled department store chain House
of Fraser out of administration for GBP90 million in August,
vowing to transform it into the "Harrods of the High Street", The
Telegraph relates.

However, he has been locked in a standoff with warehouse operator
XPO over the GBP30.4 million it was owed when House of Fraser
went bust, The Telegraph discloses.

According to The Telegraph, Mr. Ashley has called for an
Insolvency Service investigation, accusing former House of Fraser
directors of "mismanagement" by claiming they failed to give XPO
a "transparent overview" of the retailer's position.


PREZZO: Exeter City Branch to Close on September 16
---------------------------------------------------
Abbie Bray at DevonLive reports that Italian chain Prezzo has
announced that their Exeter City Centre branch will be closing.

According to DevonLive, a staff member confirmed to Devon Live
that the branch would be closing for good on Sept. 16.

Earlier this year, the chain revealed that it would be closing 94
of its restaurants across the UK, including the branch in
Barnstaple, DevonLive recounts.

And at the time the strategy outlined in a rescue package
proposed to creditors meant that the Exeter branch would also be
at risk of closure, DevonLive notes.

The branches at Barnstaple, Newquay, St Austell and Falmouth were
among the 94 branches listed for closure, and have since closed
for good, DevonLive states.

Directors said at the time that the four outlets "are all clearly
not viable and are considered by the directors as having no
prospect of being restored to viability, even if a reduction in
rent paid is obtained", DevonLive relates.

But Plymouth's Prezzo -- at the Royal William Yard -- is
earmarked for survival as one of the firm's profitable outlets,
DevonLive relays, citing the Plymouth Herald.

Exmouth and Torquay's Prezzos are also earmarked for survival --
and described along with Plymouth's as "performing adequately or
. . . otherwise valuable to the group from a strategic
perspective", according to DevonLive.

Details emerged in the Company Voluntary Arrangement (CVA)
documents, which show it owes GBP154 million to banks and GBP65
million to unsecured creditors, DevonLive notes.

The restructuring is part of a rescue package being proposed to
the firm's creditors, according to DevonLive.

The CVA must be agreed by creditors, who will have to agree to
waive much of the debts, if the company is to survive, DevonLive
discloses.

The documents list the restaurants Prezzo says are losing money
and those, like the Plymouth branch, that are profitable,
DevonLive states.

The chain, which is working with global management services
company AlixPartners on the restructuring, employs 4,500 people,
DevonLive notes.

In January Prezzo's owner, US company TPG, entered talks with
lenders in a bid to renegotiate loans, DevonLive recounts.


PUNCH TAVERNS: Fitch Affirms B Ratings on Three Note Classes
------------------------------------------------------------
Fitch Ratings has affirmed Punch Taverns Finance B Limited's
(Punch B) class A3, class A6 and class A7 notes at 'B'. The
Outlooks are Stable.

The transaction is a securitisation of tenanted pubs in the UK,
operated by Punch Taverns.

KEY RATING DRIVERS (KRDs)

The ratings reflect the transaction's exposure to discretionary
spending and a leased/tenanted business model, which makes it
challenging to adapt to the dynamic eating-and- drinking out
market in the UK. Partial repayment from cash sweep and scheduled
amortisation mitigates refinancing risk.

Structural Decline but Strong Culture - Industry Profile:
Midrange
The pub sector in the UK has a long history, but trading
performance for some assets has shown significant weakness in the
past. The sector has been in a structural decline for the past
three decades due to demographic shifts, greater health awareness
and the growing presence of competing offerings. Exposure to
discretionary spending is high and revenues are therefore
inherently linked to the broader economic cycle. Fitch views
competition as stiff, including off-trade alternatives, and
barriers to entry are low, despite increasingly demanding
regulations. Nevertheless Fitch views the UK pub sector as
sustainable in the long term, despite the on-going contraction,
supported by the strong pub culture in the UK.

Sub KRDs: Operating environment - Weaker, Barriers to entry -
Midrange, Sustainability - Midrange

Tenanted Model, Non-Core Disposals - Company Profile: Midrange
EBITDA per pub has stabilised over the past five years, mainly as
a result of extensive disposals of weakly performing non-core
pubs and increased investments in the core estate following years
of capex underspend. The leased/tenanted business model makes it
more challenging for the operator to adapt to the growing eating-
out market in the UK, as it has reduced control over publicans'
strategy and less cash for capex due to performance declines.
Limited visibility with respect to tenants' profitability means
that the sustainability of the cash flows generated by tenanted
pubs is more difficult to estimate. However, Fitch expects
continued disposals of non-core pubs, combined with increased
core estate capex, to result in an overall improved quality of
the estate in the foreseeable future.

Sub-KRDs: Financial performance - Weaker, Company operations -
Midrange, Transparency - Weaker, Dependence on operator -
Midrange, Asset quality - Weaker

Refinancing Risk - Debt Structure: Midrange

The class A notes amortise only partially and have significant
bullet maturities in 2021, 2022 and 2024. These cannot be met out
of excess cash flows in the Fitch rating case (FRC), requiring
either a debt refinancing or significant disposals of core pubs.
Only the unrated junior class B3 notes can defer interest
payments.

The security package is standard for UK WBS transactions.
Operational and financial covenants are satisfactory, although
Fitch notes the exclusion of the bullet repayments for the
purpose of calculating the reported free cash flow (FCF) debt
service coverage ratio (DSCR) as well as the possibility of
preventing a covenant breach through the availability of disposal
proceeds as part of the FCF definition. This weakness is
mititgated by the inclusion of a leverage covenant. A reduced
liquidity facility is structured to cover 18 months of peak debt
service. However, this is effectively only interest payments and
scheduled principal excluding final bullets.

Sub-KRDs: Debt profile: Weaker; Security package: Stronger;
Structural features: Midrange

Financial Profile

Under the latest FRC, the projected minimum of average and median
synthetic FCF DSCR remains unchanged at 0.8x for the class A
notes. Net debt-to-EBITDA as of May 2018 at 6.5x for the class A
notes is an improvement from the prior year, driven by an
increase in the disposal proceeds account from the sale of pubs
from the core estate and ongoing scheduled amortisation.

PEER GROUP

Unique Pub Finance Company plc (class A notes rated 'BB', class M
notes 'B+' and class N notes 'B') is the closest peer. Both
issuers are linked to the broader UK economic cycle and have a
large portfolio of mainly tenanted pubs. Punch B class A notes
have comparable projected FCF DSCR to Unique's class N notes, and
slightly lower leverage, but its refinance risk, unusual in UK
WBS, justifies the same ratings for Punch B senior class A and
Unique junior class N notes at 'B'.

RATING SENSITIVITIES

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

  - Further deterioration in projected DSCR and leverage metrics
for the class A notes. This could be driven by declining
performance or disposal proceeds being insufficient for
deleveraging via prepayments.

  - Failure to refinance maturing debt tranches.

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

  - The notes are unlikely to be upgraded in the foreseeable
future.

CREDIT UPDATE

Performance Update

The trailing 12-month revenue to May 2018 grew marginally. EBITDA
in the same period stood at GBP66 million, a decline about 2% due
to a slight increase in operating costs and lower gross profit
margins. Per pub revenues and EBITDA were stronger, growing 4%
and 2% respectively, and were driven primarily by the ongoing
disposals. The EBITDA margin declined from the previous year from
44% to 43%.

Investment continued during the year with Punch spending around
GBP18 million on the Punch B estate over the past four quarters,
equating to around GBP14,400 per pub, which is well in excess of
the minimum required spend of around GBP8,000 and should bolster
performance.

Fitch Cases

Under the FRC, Fitch envisages gradually declining FCF due to low
growth in beer and rental income over the long term, increasing
opex and ongoing capex above the minimum covenanted levels. Fitch
also ran a 'Brexit' scenario whereby sales declined by 5% p.a.
for four years. The FCF DSCR metrics based on scheduled debt
service only fell slightly below 1x, indicating FCF would almost
be sufficient to cover debt service. However, there would be some
reliance on the liquidity facility.

Asset Description

As of May 2018 the transaction consisted of 1,245 pubs (1,087
pubs in the core estate and 158 in the non-core), versus 1,300
(1,110 core and 190 non-core) pubs in the previous year.



                            *********

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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                 * * * End of Transmission * * *