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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

           Friday, October 12, 2018, Vol. 19, No. 203


                            Headlines


G E R M A N Y

TAKKO FASHION: S&P Alters Outlook to Negative & Affirms 'B' ICR


G R E E C E

ALPHA BANK: Fitch Raises Long-Term Issuer Default Rating to CCC+


I R E L A N D

OAK HILL VII: Moody's Assigns (P)B3 Rating to Class F Notes


I T A L Y

BANCA CARIGE: Fitch Lowers IDR to CCC+, On Watch Negative
WIND TRE: Fitch Raises Long-Term IDR to BB-, Outlook Stable


K A Z A K H S T A N

ASIACREDIT BANK: S&P Lowers ICRs to 'CCC+/C', Outlook Negative


L A T V I A

TOSMARES KUGUBUVETAVA: Provides Update on Insolvency Proceedings
TOSMARES KUGUBUVETAVA: Shares Delisted Following Insolvency


P O L A N D

GETIN NOBLE: Moody's Lowers Long-Term Deposit Ratings to B1


R U S S I A

ENEL RUSSIA: Fitch Affirms BB+ LT FC IDR, Outlook Stable


S P A I N

JOYE MEDIA: S&P Assigns BB- Issuer Credit Rating, Outlook Stable


S W E D E N

INVUO TECHNOLOGIES: Shares Delisted Following Bankruptcy


T U R K E Y

YORSAN GIDA: Seeks Bankruptcy Protection Amid Financial Woes


U N I T E D   K I N G D O M

BUSINESS MORTGAGE 5: Moody's Raises Ratings on 2 Tranches to B2
JOHNSTON PRESS: Put Business Up for Sale Amid Mounting Debts
PATISSERIE VALERIE: Needs Immediate Capital Injection to Survive


X X X X X X X X

* BOOK REVIEW: Competitive Strategy for Healthcare


                            *********



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TAKKO FASHION: S&P Alters Outlook to Negative & Affirms 'B' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on German discount apparel
retailer Takko Fashion S.a.r.l. (Takko) to negative from stable.
At the same time, S&P affirmed its 'B' long-term issuer credit
rating on Takko.

S&P said, "We also affirmed our 'B' issue ratings on the EUR510
million senior secured notes issued by Luxembourg-based Takko
Luxembourg 2 S.C.A. The notes comprise a EUR285 million fixed-rate
tranche and a EUR225 million floating-rate tranche. The recovery
rating on the notes remains at '3', reflecting our expectation of
meaningful recovery prospects (50%-70%; rounded estimate: 55%) in
the event of a payment default."

Takko recently reported its half-year results for fiscal year
2019, marking a pronounced deterioration in both revenues and
profitability, with reported EBITDA (adjusted as per the company's
documentation) down 23.9% to EUR65 million. The company's
profitability declined sharply in the first quarter by 19%, and
this was followed by a 26% contraction in the second quarter --
even more impactful given the seasonality of the business, partly
due to warm weather conditions that have weighed on traffic in
stores.

S&P said, "We expect challenges to persist in the current third
quarter, traditionally the second-largest contributor to sales and
EBITDA. We base our assumption on the still-unfavorable weather
conditions and intensifying price competition in Germany, where
H&M, the leading player of the apparel retail market in the
country, is expanding its offering with lower price point products
likely to compete with Takko's target price range."

S&P said, "These factors lead us to believe that it will be
difficult for Takko to restore positive like-for-like growth and
improve its margins over the next months, which could translate
into rapidly tightening covenant headroom. This also leads us to
anticipate worsening credit metrics, with an S&P Global Ratings-
adjusted leverage of 7.8x at fiscal year-end 2019, versus our
initial projection of 7.3x. Lastly, we calculate that the group's
S&P Global Ratings-adjusted EBITDA margin will slide to 22.5%-
23.0% from the 24.4% reported in fiscal 2018, and that its free
operating cash flow (FOCF) will shrink to about EUR10 million-
EUR15 million in fiscal 2019, over 2x less than our previous
forecast. This is due to the group's higher working capital and
capital expenditures (capex) in the first half of the year,
against last year's reported levels, related in part to its
ongoing expansion program encompassing net 65-70 new store
openings this year. In our view, these metrics will leave the
group with no headroom under the current 'B' rating."

Takko's like-for-like trends are globally more pronounced than
that of the overall German apparel market, since the value segment
of the market is inherently more exposed to adverse weather
conditions, and its demand is more price sensitive. Customers go
to discount stores, such as Takko's, primarily out of necessity.
Conversely, mid-market and premium segment apparel retailers
traditionally rely on more frequently changing fashion content and
more diverse channels of customer acquisition to stimulate traffic
in stores. In S&P's opinion, Takko's performance is somewhat in
line with the trends affecting the overall discount segment of the
market and even exaggerate them to some extent. For instance,
according to the Textilwirtschaft index, in July 2018, the German
apparel market posted positive 3.0% growth; the discount sub-
segment was down 3.0%, while Takko was down 4.6%, and similar
patterns emerged in May, June, and August 2018. Conversely, S&P
believes this sensitivity in sales is also valid on a positive
growth momentum and expect Takko to exaggerate positive growth
trends of the overall apparel market.

Furthermore, the negative like-for-like trend registered in the
first half of fiscal 2019 affected all of Takko's geographies--
also broadly in line with what S&P saw across the apparel retail
market in Continental Europe.

The results of this inherently higher volatility in demand,
combined with the seasonality of the business -- with a few key
months weighing heavily on turnover and profit -- can affect
materially discounters' profitability from one year to the other.
When demand is down and traffic in stores low, retailers offer
massive discounts on already low margin products, in order to
limit the cost of bearing high inventories. In previous years
however, Takko had managed this risk by focusing on logistics, to
insure a matching of its assortment with weather conditions.
However, this has been less efficient during the first half of
2018, notably because of unexpectedly severe weather conditions
this spring. As such, the third quarter will be particularly
important for Takko, given the sale of fall-winter collections
over this period and the ensuing impact on the group's overall
ability to maintain sufficient headroom under the EUR110 million
adjusted EBITDA covenant (which include various specific
adjustments such as extraordinary effects, share-based
compensation expenses, inventory revaluations, and
reclassifications).

In addition to short-term, weather-related risks, long-term risks
stem from heightening competition in Germany, with some players in
the fast fashion space looking to increase market shares through a
more aggressive pricing strategy and a stronger online presence.
For instance, H&M furthered its market share in the first nine
months of 2018 and posted growth of 2.9%, despite a small
shrinkage of its store network. Primark is also expanding its
footprint in Germany. S&P said, "Although Takko's strategy of
targeting customers through out-of-town stores (rather than high
street ones) differs from that of the aforementioned peers, we
believe the changing industry dynamics could affect the group's
relative competitive position as the gap in price point between
fast fashion and discount narrows. This could particularly
intensify competition, since we observe that a part of the
customer base is shopping across the two segments. In our view,
the resulting repercussions on store traffic or price positioning
could prolong the weakening of the group's earnings."

S&P said, "We note that Takko has continued to pursue its
expansion plans across Germany and into international markets. The
group opened 48 new stores in the first half of the year,
expanding in France and rolling out its Takko Express concept. The
growth weighed on both working capital consumption (outflow of
EUR20 million) and capex (more than doubling to EUR11.7 million
year on year). Although the net 65-70 store openings anticipated
for the full year 2019 will help to boost traffic and sales in the
medium term, it weighs on margins in the short term, notably given
the currently unfavorable business environment for discount
retailers. This, alongside weakening profitability, will strain
free operating cash flow (FOCF) generation. While we still
anticipate positive FOCF of between EUR10 million and EUR15
million for the full fiscal 2019, this is only about one-half of
what we had initially anticipated."

Positively, Takko benefits from its diversification into menswear
and kids wear, as well as its growing international footprint
(with non-German revenues now accounting for about 35%-40% of
sales), easing the inherent industry volatility. Importantly, the
group has implemented cost-saving measures aimed at improving
profitability over the past few years. It has reduced the number
of suppliers and the overall occupancy costs, thereby limiting the
negative impact of the German law on minimum wages, which has led
to increased personnel costs. In the past couple of years, these
measures have resulted in markedly stronger gross and EBITDA
margins, with the latter progressing to 13.3% in fiscal 2018
(corresponding to EBITDA as adjusted by Takko), equivalent to a
130 basis point improvement from 2016's adjusted EBITDA levels.
This, alongside historically low capex and a track record of
strong working capital management, has facilitated sound FOCF
generation, supporting the current rating. However, in S&P's view,
the potential for further cost savings is now more limited.

S&P said, "The negative outlook reflects our expectation of
further constraints on Takko's earnings growth, profitability, and
cash generation over the next  12 months because of challenging
trading conditions for apparel discount retails in Germany. This
could lead to weaker liquidity--especially if covenant headroom
falls below 10%--and credit metrics with adjusted debt to EBITDA
remaining above 7.5x (4.6x excluding the PIK) and EBITDAR cover of
just 1.4x.

"We could lower the rating in the next 12 months if Takko fails to
restore its topline or timely reduce its costs. Without these
measures, reported EBITDA could drop to such an extent that it
would leave very little headroom under the group's current EUR110
million EBITDA covenant.

"We could also consider a downgrade if Takko's reported FOCF
decreased further to below EUR10 million, our adjusted FOCF-to-
debt ratio fell below 5%, or if its EBITDAR coverage weakened
beyond 1.4x, as implied by our current base case.

"Lastly, if Takko were to buy back material amounts of its debt at
below-par prices, we could lower the rating by more than one
notch. We understand, however, that this is not management's
intention.

"We could revise the outlook to stable if Takko managed to sustain
earnings growth on the back of a stronger competitive position,
offsetting the recent drop in profitability, such that it restores
the covenant headroom to at least 15% and reported FOCF to at
least EUR40 million.

"An upgrade would hinge on sustainably stronger-than-currently-
expected credit metrics. In particular, we would likely expect a
return to profitability growth, with an adjusted EBITDA margin of
about 24%-25%, an adjusted FOCF to debt sustainably above 5%, and
adjusted debt to EBITDA to below 7.3x."



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ALPHA BANK: Fitch Raises Long-Term Issuer Default Rating to CCC+
----------------------------------------------------------------
Fitch Ratings has upgraded Alpha Bank AE's and National Bank of
Greece S.A.'s Long-Term Issuer Default Ratings (IDR) to 'CCC+'
from 'RD' and Eurobank Ergasias S.A.'s and Piraeus Bank S.A.'s
Long-Term IDR to 'CCC' from 'RD'. At the same time, Fitch has
upgraded the four banks' Short-Term IDRs to 'C' from 'RD'. All
other issuer and issue ratings are unaffected by the event.

The upgrades of the Long-Term IDRs to the level of the VRs follow
the lifting of bank deposit withdrawal limits and legal
restrictions on the free movement of capital within the country on
October 1, 2018. In Fitch's view, although some restrictions
remain on cross-border outward capital flows, Greek banks are now
substantively able to service all their obligations.

In 2017, the Greek Finance Ministry in cooperation with the Bank
of Greece published a roadmap for the gradual relaxation of
capital controls, which envisaged three steps. The recent removal
of capital controls within Greece completes the second step of the
roadmap. In Fitch's view, the third step, which entails the
removal of the remaining capital controls on capital flows outside
Greece, is likely to be implemented in the short term.

KEY RATING DRIVERS

IDRS AND VRS

Following the upgrades, Greek banks' Long-Term IDRs now are driven
by their standalone credit fundamentals, captured by their VR.
Greek banks' VRs are unaffected by the event and continue to be
constrained by their exceptionally weak asset quality and high
capital encumbrance by unreserved problem loans. They also reflect
improving but still scarce liquidity. Greek banks' credit profiles
remain highly sensitive to deterioration of the economic
environment or confidence in the banking system, although risks to
both have subsided in the last 15 months.

RATING SENSITIVITIES

IDRS AND VRS

An upgrade of the ratings would require significant reductions of
banks' non-performing exposures and capital encumbrance by
unreserved problem loans, and continued improvements in the banks'
funding and liquidity profiles, including deposit growth and
reestablishment of market access.

Conversely, the ratings could be downgraded if depositor and
investor confidence weakens, compromising the banks' already weak
liquidity profiles, or if capitalisation materially deteriorates.

The rating actions are as follows:

Alpha Bank AE

Long-Term IDR: upgraded to 'CCC+' from 'RD'

Short-Term IDR: upgraded to 'C' from 'RD'

National Bank of Greece S.A.

Long-Term IDR: upgraded to 'CCC+' from 'RD'

Short-Term IDR: upgraded to 'C' from 'RD'

Eurobank Ergasias S.A.

Long-Term IDR: upgraded to 'CCC' from 'RD'

Short-Term IDR: upgraded to 'C' from 'RD'

Piraeus Bank S.A.

Long-Term IDR: upgraded to 'CCC' from 'RD'

Short-Term IDR: upgraded to 'C' from 'RD'



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OAK HILL VII: Moody's Assigns (P)B3 Rating to Class F Notes
-----------------------------------------------------------
Moody's Investors Service, announced that it has assigned the
following provisional ratings to notes to be issued by Oak Hill
European Credit Partners VII Designated Activity Company:

EUR240,000,000 Class A Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa

EUR31,100,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2

EUR12,500,000 Class B-2 Senior Secured Fixed Rate Notes due 2031,
Assigned (P)Aa2

EUR25,200,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)A2

EUR27,200,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Baa3

EUR24,300,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Ba3

EUR10,000,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)B3

Moody's issues provisional ratings in advance of the final sale of
financial instruments, but these ratings only represent Moody's
preliminary credit opinions. Upon a conclusive review of a
transaction and associated documentation, Moody's will endeavor to
assign definitive ratings. A definitive rating (if any) may differ
from a provisional rating.

RATINGS RATIONALE

Moody's provisional ratings of the rated notes 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, Oak Hill Advisors
(Europe), LLP, has sufficient experience and operational capacity
and is capable of managing this CLO.

Oak Hill VII is a managed cash flow CLO. At least 90% of the
portfolio must consist of secured senior loans or senior secured
bonds and up to 10% of the portfolio may consist of unsecured
senior obligations, second-lien loans, high yield bonds and
mezzanine obligations. The portfolio is expected to be
approximately 65% 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 ramp-up period in compliance with the portfolio
guidelines.

Oak Hill 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 and a half years
reinvestment period. Thereafter, purchases are permitted using
principal proceeds from unscheduled principal payments and
proceeds from sales of credit risk obligations, and are subject to
certain restrictions.

In addition to the seven classes of notes rated by Moody's, the
Issuer will issue EUR40.5M 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. Oak Hill'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:

Target Par Amount: EUR 400,000,000

Diversity Score: 44

Weighted Average Rating Factor (WARF): 2850

Weighted Average Spread (WAS): 3.4%

Weighted Average Coupon (WAC): 4.5%

Weighted Average Recovery Rate (WARR): 42.5%

Weighted Average Life (WAL): 8.5 years



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BANCA CARIGE: Fitch Lowers IDR to CCC+, On Watch Negative
---------------------------------------------------------
Fitch Ratings has downgraded Banca Carige's Long-Term Issuer
Default Rating to 'CCC+' from 'B-' and the bank's Viability Rating
to 'ccc+' from 'b-'. The ratings have been placed on Rating Watch
Negative.

The downgrade reflects Fitch's view that the bank's failure is a
real possibility because Fitch believes that it will be
challenging for the bank to strengthen its capital, which could
ultimately lead to regulatory intervention. The bank currently
does not meet its Pillar 2 requirement for total capital and plans
to issue Tier 2 debt to reach it, which is likely to be difficult
in the changed market conditions for Italian banks. Carige's
largest shareholder has stated it would support the bank but has
not made a firm commitment to subscribe to the entire EUR200
million of Tier 2 debt the bank plans to issue.

KEY RATING DRIVERS

IDRS, VR AND SENIOR DEBT

Carige's ratings reflect Fitch's view that the risk to the bank's
viability has increased because the bank does not meet its Pillar
2 total capital requirement. Carige has failed to issue Tier 2
debt over the course of this year, while market conditions for
Italian banks have weakened in recent months.

The ratings also reflect the latest change of management. Since
early 2016, the bank's CEO has been replaced twice and the bank is
in the process of approving a third restructuring plan. In its
view, this adds uncertainty to the direction of its future
strategy as the bank may require more time to implement its
turnaround, which needs to meet the supervisory authorities'
expectations.

The VR and IDRs continue to reflect the weak standalone profile of
Carige and its highly vulnerable prospects for ongoing viability
given its still high levels of impaired loans and weak medium-term
profitability prospects. In its view, Carige's corporate
governance gives rise to significant risks to creditors. This view
is underpinned by the high turnover of senior management and
highly variable strategic targets in recent years.

Carige's stock of gross impaired loans at end-1H18 stood at over
EUR4.7 billion and the bank's gross impaired loans ratio was
around 27% when excluding bonds accounted at amortised cost. This
is much higher than domestic and international averages despite
significant reductions by the bank over the past 12 months.

Previous management had planned to de-risk the bank's balance
sheet further by end-2018, primarily through the sale of around
EUR400 million unlikely-to-pay exposures (UtPs) and the
securitisation of up to EUR1 billion doubtful loans. While Fitch
expects the UtP deconsolidation to take place before end-2018, it
is possible that the doubtful loans securitisation may be more
difficult given the changed market conditions in Italy.
Net impaired loans weigh on capital significantly, with IFRS 9
Stage 3 unreserved impaired loans still representing nearly 150%
of Fitch Core Capital according to its estimate at end-1H18.

The CET1 ratio of Carige was 11.9% at end-1H18, significantly
above its Pillar 2 requirement of 9.625% and higher than its
11.175% Pillar 2 guidance. However, the Total Capital Ratio (TCR)
of 12.0% was 120bp below the bank's Pillar 2 requirement of
13.125% and will remain below requirements even after all planned
disposals and de-risking initiatives are completed by year-end,
unless the bank manages to issue subordinated debt or increase
capital by other means.

During 2018, the bank has attempted unsuccessfully to issue Tier 2
subordinated debt at least twice and was therefore unable to
rebuild subordinated debt buffers that could protect senior
creditors. Fitch views Carige's access to the capital market as
highly uncertain. The bank will have to present an updated capital
conservation plan to the supervisory authorities by end-November
2018 that would allow it to restore capitalisation above TCR
Pillar 2 requirements by year-end.

Its assessment of Carige's funding continues to reflect a
franchise that remains vulnerable to creditor sentiment, which
could lead to deposit outflows, but also significant refinancing
risk.

The RWN reflects Fitch's view that failure to complete the capital
strengthening by end-2018 would increase the risk of regulatory
intervention, and hence of losses being imposed on senior
creditors, for example in a liquidation or a resolution. This
would lead to a downgrade of the Long-Term IDR and senior debt
ratings.

Carige's senior unsecured bonds are rated in line with the bank's
IDRs. The Recovery Rating of '4' (RR4) reflects Fitch's
expectation of average recovery prospects in the event of a
default of these instruments.

The Short-Term IDR has been downgraded to 'C' from 'B' because it
is mapped from the Long-Term IDR.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating and Support Rating Floor reflect Fitch's view
that although external support is possible it cannot be relied
upon. Senior creditors cannot expect to receive full extraordinary
support from the sovereign in the event that the bank becomes non-
viable. The EU's Bank Recovery and Resolution Directive and the
Single Resolution Mechanism for eurozone banks provide a framework
for the resolution of banks that requires senior creditors to
participate in losses, if necessary, instead of a bank receiving
sovereign support.

SUBORDINATED DEBT

The planned subordinated issue is rated 'CCC-(EXP)', which is two
notches below Carige's 'ccc+' VR to reflect its expectations of
poor recovery prospects for the notes in case of a non-viability
event. Fitch believes that should the bank fail, Carige is at risk
of being placed into outright liquidation and that an intermediary
solution prior to resolution (such as a second debt restructuring
with a distressed debt exchange (DDE) similar to the one completed
in late 2017 or other solution) is less likely.

Its view is supported by the bank's currently thin layers of
junior non-equity capital (less than 1% of risk-weighted assets
ahead of this issue) relative to the risks faced, specifically the
still high non-performing loan levels. The prospects of poor
recoveries for subordinated bondholders in a resolution scenario
are reflected in the 'RR6' Recovery Rating on the notes.

Fitch does not notch the notes for non-performance risk as no
coupon flexibility is included in their terms.

The final rating is contingent upon the receipt of final documents
conforming to the information already received.

RATING SENSITIVITIES

IDRS, VR AND SENIOR DEBT

Carige's ratings would probably be downgraded if the bank does not
manage to meet its Pillar 2 total capital requirement by end-2018,
for which it will likely have to raise Tier 2 debt. The ratings
could also be downgraded if deposit outflows increase or if
liquidity or funding tightens for other reasons. The ratings could
also be downgraded if the bank's future strategy gives rise to
increased execution risk, which ultimately could result in
heightened risk of regulatory action being taken and losses
imposed on senior creditors.

Since the bank already undertook a subordinated debt-restructuring
and raised capital in late 2017 and with little subordinated debt
currently outstanding, a debt restructuring does not appear a
viable option to strengthen capital at this stage.

The ratings could be affirmed and removed from RWN if the bank
successfully meets its regulatory capital requirement and proceeds
successfully with its restructuring. An upgrade could be the
result of the bank meeting its restructuring targets and following
a clear turnaround strategy.

SUPPORT RATING AND SUPPORT RATING FLOOR

An upgrade of the Support Rating and any upward revision of the
Support Rating Floor would be contingent on a positive change in
the sovereign's propensity to support Carige. While not
impossible, this is highly unlikely, in Fitch's view.

SUBORDINATED DEBT

The notes' rating is primarily sensitive to a change in the bank's
VR, from which it is notched. The notes' rating is also sensitive
to a change in notching should Fitch change its assessment of loss
severity (for example, the notching could narrow if non-performing
loan levels become less significant relative to the layer of
junior non-equity capital, either through an increase in the
amount of the subordinated buffers or through a significant
reduction of non-performing loans) or relative non-performance
risk.

The rating actions are as follows:

  Long-Term IDR: downgraded to 'CCC+' from 'B-' and placed on RWN

  Short-Term IDR: downgraded to 'C' from 'B'

  Viability Rating: downgraded to 'ccc+' from 'b-' and placed on
  RWN

  Support Rating: affirmed at '5'

  Support Rating Floor: affirmed at 'No Floor'

  Senior unsecured notes (including EMTN): long-term rating
  downgraded to 'CCC+/'RR4' from 'B-'/'RR4' and placed on RWN,
  Short-term rating downgraded to 'C' from 'B'

  Tier 2 debt Long-term rating: downgraded to 'CCC-(EXP)'/'RR6 '
  from 'CCC(EXP)'/'RR6' and placed on RWN


WIND TRE: Fitch Raises Long-Term IDR to BB-, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has upgraded Wind Tre SpA's Long-Term Issuer Default
Rating (IDR) to 'BB-' from 'B+'. The Outlook is Stable. All
ratings are removed from Rating Watch Positive.

The upgrade reflects its application of its "Parent and Subsidiary
Rating Linkage" criteria to Wind Tre's ratings following the
acquisition of an additional 50% stake in Wind Tre by CK Hutchison
Holdings Limited (CKHH, A-/Stable), which has become the sole
owner. This results in a single-notch uplift to Wind Tre's ratings
for parental support.

Wind Tre is facing a challenging competitive environment in the
Italian telecoms market. To avoid pressure on its ratings, Wind
Tre needs to build up greater financial flexibility over the
medium term when national roaming revenue is likely to decline as
Iliad shifts traffic on to its own network.

KEY RATING DRIVERS

Parent-Subsidiary Linkage Benefits: Wind Tre's rating benefits
from parental support from CKHH. Fitch applies a single-notch
uplift to the company's 'B+' standalone rating, based on moderate
linkages between a weaker subsidiary with a stronger parent. Fitch
views legal and operating ties between the companies as weak, but
strategic ties are strong because Fitch believes that CKHH has
positioned itself as a long-term telecoms investor and the Italian
market is an important part of its telecoms portfolio.
Strengthening of the parent-subsidiary linkages or evidence of
tangible contributions from the parent may justify more than one
notch of rating uplift.

Iliad Entry Increases Competition: Iliad's entry, combined with
aggressive response from the existing mobile operators, has
intensified competition in the Italian market, which is putting
pressure on Wind Tre's revenue. The company's mobile service
revenue declined by high single-digit percentages yoy in 2Q18.
This impact will be partially mitigated by contributions from an
exclusive national roaming agreement with Iliad and the potential
partial disposal and rental of tower infrastructure. Fitch expects
pressures in the Italian mobile market to continue over the next
three years.

Challenging Environment: Wind Tre's competitive position remains
challenging as the company is more exposed to the impact of
Iliad's entry than other mobile operators. National roaming
revenue from Iliad means that Wind Tre has around two to three
years to consolidate its underlying operating performance. To
avoid pressure on its ratings, Wind Tre needs to establish greater
financial flexibility over the medium term to compensate for
declining national roaming revenue and to fund a significant
spectrum installment payment in 2022.

Mobile Competition: Iliad was able to acquire 2 million
subscribers 100 days after its launch on May 29. The company
entered the Italian market with a low-cost mobile package of
EUR5.99 per month for unlimited calls and texts and 30 gigabytes
of traffic for the first million subscribers. The following offers
included higher data allowances at higher prices, which may be a
sign of a more rational approach to pricing from a disruptive new
entrant. All three existing mobile operators addressed the
increased competition with larger data allowances for existing
tariffs and new cheaper promotional tariffs. Overly generous data
allowance in tariffs reduce operators' ability to monetise growing
data usage, in its view.

Volatile Leverage: Fitch's expects Wind Tre's cash flows to be
volatile in the next three to four years due to uneven
contributions from the roaming agreement with Iliad, phased 5G
spectrum payments, network upgrade delays due to problems with
supplier ZTE and pressures on EBITDA from competition that will be
partially offset by remaining post-merger synergies in 2019-2020.
The combination of these factors, on its estimates, will reduce
funds from operations (FFO) adjusted net leverage to 4.8x-5.0x in
2019-2020 from 5.6x in 2018. However, the metric will rise again
in 2021-2022 as roaming proceeds from Iliad start to decline.
Payment of the largest tranche for spectrum licences will put
additional pressure on leverage in 2022.

5G Spectrum Auction: Wind Tre ended up with the smallest portfolio
of frequencies among its peers in the September-October 5G
spectrum auction in Italy. Fitch views this as a negative factor
in the long term as less available spectrum will likely have to be
compensated by denser network deployment and potentially higher
capex than operators with larger spectrum allocations to maintain
competitiveness. With less spectrum, Wind Tre's competitive
position could suffer from a network quality gap with its
competitors. The demand for 5G is yet to be tested and at this
stage it is unclear whether it will become a strong
differentiating factor between mobile operators. In the short-to
medium-term lower spectrum capex puts less pressure on cash flows,
which is positive for credit metrics.

Senior Secured Notes Uplift: The senior secured instrument rating
benefits from a one-notch uplift to Wind Tre's IDR to 'BB' . The
instruments have strong underlying recovery prospects, which
correspond to a Recovery Rating of 'RR2'. However, Recovery
Ratings in Italy are capped at 'RR3' due to country
considerations.

DERIVATION SUMMARY

Wind Tre, as a single-country operator, benefits from large scale
and a well-established operating position in Italy. It has larger
revenue and subscriber market shares than Swiss-based Sunrise
Communications Holding S.A. (BB+/Stable) or P4 Sp. z.o.o. (BB-
/Stable) in Poland. However, Wind Tre is significantly more
leveraged than its peers, which justifies a multi-notch difference
in ratings. Roughly equally sized and mobile-only Telefonica
Deutschland Holding AG is rated 'BBB' with Positive Outlook
because it manages leverage at a significantly lower level, has
strong pre-dividend free cash flow (FCF) and faces insignificant
market pressure. Wind Tre's rating benefits from one-notch uplift
to the company's standalone rating of 'B+' for potential parental
support from CKHH.

KEY ASSUMPTIONS

Fitch's Key Assumptions within its Rating Case for the Issuer

  - Decline in mobile revenue of high- to mid-single-digit
    percentages yoy in 2019-2021

  - Flat fixed-line revenue growth in 2019-2021

  - EBITDA margin approaching 40% in 2019 on the back of peak
    roaming proceeds from Iliad and then gradually declining to
    around 36% by 2021

  - Capex intensity to peak in 2019 at 26% of revenue and
    declining to 21% per year in 2020 and 2021

  - 5G spectrum investment in 2018 of EUR143 million, EUR6
    million - EUR34 million payments per year in 2019-2021 and
    EUR316 million final payment in 2022

  - EUR150 million of integration costs in 2018 treated as non-
    recurring

  - No dividends paid

RATING SENSITIVITIES

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

  - Improved competitive position combined with strong operating
    and financial performance

  - FFO adjusted net leverage sustainably below 4.8x

  - Evidence of tangible parental support from CKHH or a
    strengthening of parent-subsidiary linkage between the
    companies may lead to additional notching up from a
    standalone rating level

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

  - FFO adjusted net leverage above 5.5x on a sustained basis

  - Continuing operating and financial pressures leading to
    negative FCF generation

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: As of end-1H18, Wind Tre had EUR862 million
of cash and cash equivalents and an undrawn revolving credit
facility of EUR400 million that matures in 2022. The company does
not face any significant refinancing exposure until 2020.



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K A Z A K H S T A N
===================


ASIACREDIT BANK: S&P Lowers ICRs to 'CCC+/C', Outlook Negative
--------------------------------------------------------------
S&P Global Ratings lowered to 'CCC+/C' from 'B-/B' its long- and
short-term issuer credit ratings on Kazakhstan-based AsiaCredit
Bank. The outlook is negative.

At the same time, S&P lowered its national scale rating on
AsiaCredit Bank to 'kzB' from 'kzBB-'.

S&P said, "The downgrade reflects our view that AsiaCredit Bank's
funding profile has continued to worsen this year, following
deterioration in clients' confidence in small and midsized banks.
We believe that AsiaCredit Bank's ability to attract new
customers, as well as retain its current clientele, has
substantially weakened. Over the first nine months of 2018, the
bank's deposits decreased by 17%, having already decreased by 29%
in 2017, and continue to remain under pressure. We still consider
the bank's liquidity position as adequate, due to the bank's
compliance with all regulatory liquidity requirements and a
structurally high proportion of liquid assets on the balance
sheet. We note that the bank will have to replace Kazakhstani
tenge 9 billion (or 8.5% of its total liabilities) in
funding attracted from bonds in summer next year, which we believe
will be challenging.

"We also note that, after the audit of National Bank of Republic
of Kazakhstan, AsiaCredit Bank is obliged to create significant
loan loss provisions, exceeding our previous base-case
expectations. We project the bank's credit costs will increase to
about 3.2% in 2018 and 2.4% in 2019. The bank's nonperforming
assets stood at about 8% as of June 30, 2018, but we believe that,
given the amount of additional provisions the bank needs to
create, the actual share of nonperforming loans could be higher in
the future.

"Should provisioning needs be higher, or lasting over a prolonged
period, the bank will be likely be unable to sustain current
capital levels, in our view. As of now, we still assess the bank's
capital position as moderate, and expect its risk-adjusted capital
ratio will remain at 5.5%-6.5% over the next 12-18 months, given
further moderate business downsizing.

"We believe the bank relies on business, financial, and economic
conditions to meet its financial commitments. That said, if the
bank doesn't resume its business dynamism and stabilize it
depositor base, we think it's highly likely that its current
capital and/or liquidity buffers will erode in the next 12 months,
increasing the risk that it will breach regulatory ratios.

"The negative outlook on AsiaCredit Bank reflects our view that
the bank's creditworthiness could weaken further in the next 12
months, due to possible deterioration in the bank's liquidity
position and its limited ability to restore the business model.

"We could lower the rating if we believed that the bank faced
further material clients outflows, resulting in significant
depletion of the bank's liquidity buffer.

"We could revise the outlook to stable if the bank stabilized its
franchise and came up with an adequate strategic response,
adjusting its business model to current operating conditions and
gradually restoring its earnings generation capacity."



===========
L A T V I A
===========


TOSMARES KUGUBUVETAVA: Provides Update on Insolvency Proceedings
----------------------------------------------------------------
AS Tomares kugubuvetava provided updates on its solvency
proceedings in an October 8, 2018 statement.

On August 9, 2018, the Kurzeme District Court announced an
insolvency proceedings for AS Tosmares kugubuvetava and certified
insolvency administrator Ivars Melkis, certificate No. 00448, was
appointed as the administrator of insolvency proceedings of the
Company.

During the insolvency proceedings, the creditors of the Company
have submitted claims total in the amount of EUR3,897,549.39,
where the claims of the secured creditors are in the amount of
EUR478,815.43, while the claims of unsecured creditors are in the
amount of EUR3,409,733.96. The claims submitted by the creditors
are approved in full amount.

On October 4, 2018, a creditors meeting was held, where the agenda
included one question regarding the approval of insolvency
proceedings expenses as reasonable.  The creditors' meeting
approved the insolvency proceedings expenses of the Company as
reasonable.

On the moment of announcement of the insolvency proceedings, the
Company employed approximately 160 employees.  During the
insolvency proceedings, with intention to reduce the maintenance
costs and administrative expenditure of the Company, the
employment legal relationships with employees carrying out
economic activity of the Company has been terminated. Currently,
the Company employs only 20 employees who provide security and
docks' maintenance functions, as well as accounting and personnel
specialists' duties, accomplishing procedures in relation to
dismissed workers and preparation of documents for submission to
the guarantee fund for employees' claims.

Currently, the economic activity of the Company is carried out to
a limited extent, which based on the rental of assets owned by the
Company to cover at least partially costs of the insolvency
proceedings and to settle with a service providers for the
supplied electricity, but the economic activity related to the
ships repair and building are not carried out.  At the same time,
the administrator of the Company does not exclude the possibility
that the Company's economic activity could be re-established if
existing employees will receive not only current, but also future
orders for ship repair and building projects, and they will be
completed, but the administrator's estimates for such a scenario
are very negligible.

The administrator of the Company draws attention that no proposal
for the initiation of the legal protection proceedings has been
received during the insolvency proceedings.

Considering that the current economic activity of the Company and
its financial situation does not meet the criteria of a commercial
company whose shares are listed with the Nasdaq Riga AS and put
into public circulation, and the exclusion of the Company's shares
from the regulated market would reduce the cost of the insolvency
proceedings, the administrator of the Company requested Nasdaq
Riga AS to exclude the shares of the Company from the regulated
market.


TOSMARES KUGUBUVETAVA: Shares Delisted Following Insolvency
-----------------------------------------------------------
Nasdaq Riga decided on Oct. 11 to delist AS Tosmares
kugubuvetava's shares (ISIN LV0000101095, ticker TKB1R) from the
Baltic Secondary List.  The last listing day for AS Tosmares
kugubuvetava shares is set for October 17, 2018.

Nasdaq Riga Management Board passed the resolution pursuant to
Nasdaq Riga listing and disclosure rules Article 21.4.1.
Sub article 1., which stipulates that the Exchange has the right
to take a decision on delisting of financial instruments of the
issuer from the Exchange in case the issuer or the financial
instruments issued by it do not conform to the requirements
specified in the Rules.

The company's insolvency process was announced by the Kurzeme
District Court on August 9, 2018, and the certified administrator
of the insolvency process Ivars Maliks was appointed as the
administrator of the insolvency proceedings of the company.



===========
P O L A N D
===========


GETIN NOBLE: Moody's Lowers Long-Term Deposit Ratings to B1
-----------------------------------------------------------
Moody's Investors Service has downgraded Getin Noble Bank S.A.'s
long-term local and foreign-currency deposit ratings to B1 from
Ba3, its long-term local and foreign-currency Counterparty Risk
Rating to Ba3 from Ba2, its long-term Counterparty Risk Assessment
to Ba3(cr) from Ba2(cr) and its baseline credit assessment and
adjusted BCA to b3 from b2. The bank's short-term Not Prime
deposit ratings and CRR and Not Prime(cr) CRA are affirmed. The
bank's long-term ratings are placed on review for further
downgrade. The outlook on the long-term deposit ratings has been
changed to Rating under Review from Negative.

The rating action was prompted by GNB's half-year 2018 results,
published on September 27, 2018. The bank reported additional
impairments and a large loss, which further weakened its already
low capital adequacy and is a set-back in the bank's efforts to
close the gap to its minimum capital requirements despite a
capital injection received year to date. By downgrading GNB's
ratings and placing them on review for further downgrade, Moody's
reflects its rising concerns that it will take longer for the bank
to reduce its capital shortalls compared to previous expectations
by the rating agency. Moody's expects to close the ratings review
following the analysis of the bank's Q3 2018 financial results
including an assessment of the feasibility and sufficiency of
targeted capital strengthening measures.

RATINGS RATIONALE

  - RATIONALE FOR DOWNGRADING RATINGS

The downgrade of GNB's BCA to b3 from b2 reflects the further
weakening of the bank's capital adequacy following a large loss
reported by the bank in H1 2018, which undermines its capacity to
cover sizable capital shortfalls against the regulatory required
minimum levels and largely offsets the positive impact from a
capital injection by its main shareholder received year to date.

GNB's net loss of PLN163.8 million in H12018 translated to a
negative return on assets of 0.6% (net loss was PLN112.5 in H1
2017) and was driven by PLN88.1 million of impairment charges on
financial instruments, as well as still significant, albeit
declining, loan loss provisions, declining revenues and
contributions to the Polish Banking Guaranty Fund for 2018. As a
result, the bank's Tier 1 ratio declined to 9.2% in Q2 2018 from
9.4% in Q1 2018 and is significantly lower than the regulatory
required minimum level (the shortfall was 3 percentage points in
March 2018). The small change in the capital ratio reflects the
sizable losses but also PLN190 million recapitalisation by the
bank's main shareholder. According to GNB's capital replenishment
plan the bank's main shareholder provided additional PLN100
million of equity to the bank in Q3 2018 and is expected to inject
PLN200 million in Q4 2018 and 2019. Whilst these support measures
ease the capital pressure on GNB, Moody's believes that given the
structural profitability challenges and the weak asset quality, it
will take longer for the bank to reduce its capital shortalls
compared to previous expectations by the rating agency. GNB's
prolonged undercapitalization and reliance on a single shareholder
for access to capital elevate risks to the bank's viability.

GNB's loan book remains weak with non-performing loan ratio (NPLs,
stage 3 loans under IFRS 9) at 15% and little changed over the
past several quarters. On a positive note, GNB's coverage of NPLs
by loan loss reserves increased significantly in H1 2018 to 66%
from 44% in December 2017 and is now close to the average levels
of the Moody's-rated banks in Poland.

Given its profitability challenges, GNB has been admitted to a
program of the Polish regulator for restoring loss-making banks'
long-term profitability, which temporarily exempts the bank from
paying a special bank levy. The bank's net income remains
vulnerable to additional asset impairment charges as well as to
potential significant costs arising from policy measures on Swiss
Franc (CHF) mortgages. GNB has one of the largest exposures to
foreign-currency mortgages in Poland, which accounted for 24% of
the bank's total loans as of June 2018 (27% a year earlier).

The downgrade of GNB's deposit ratings was driven by the downgrade
of the bank's BCA to b3 from b2. Consequently, the bank's B1 long-
term deposits ratings incorporate (1) its b3 BCA, and (2)
maintaining two notches of rating uplift from Moody's Advanced
Loss Given Failure (LGF) analysis.

  - RATIONALE FOR RATINGS REVIEW FOR FURTHER DOWNGRADE

The review of GNB's ratings for further downgrade reflects the
still material downward pressure on the bank's BCA despite the
expected additional capital injections that would account for less
than 10% of the bank's shareholders equity as of end-H1 2018.
Moody's believes that the vulnerabilities of GNB's fundamental
credit profile will remain elevated due to weak revenue generation
and potentially higher impairment charges. The rating agency will
conclude its review following the analysis of the bank's Q3 2018
results, focusing on (1) capitalization and the feasibility and
sufficiency of targeted capital strengthening measures as well as
profitability and asset quality trends, and (2) the evolution of
GNB's funding structure and its effect on the outcome of Moody's
Advanced LGF analysis.

  -- WHAT COULD MOVE THE RATINGS UP/DOWN

A credible capital strengthening plan which will allow GNB to
achieve compliance with its minimum capital requirements under the
capital replenishment plan approved by Polish authorities
including a material improvement in asset risk and return to
sustained profitability could result in a ratings confirmation.

A delay or failure to execute capital measures that were
significant enough to achieve near-term compliance with capital
requirements as well as a further deterioration in the bank's
capitalisation or profitability and/or increase in NPLs may result
in ratings downgrade.

Further, changes in the bank's liability structure may modify the
amount of uplift provided by Moody's Advanced LGF analysis and
lead to a higher or lower notching from the bank's adjusted BCA,
thereby affecting the deposit ratings.

LIST OF AFFECTED RATINGS

Issuer: Getin Noble Bank S.A.

  Downgraded and placed on review for further downgrade:

  Adjusted Baseline Credit Assessment, downgraded to b3 from b2

  Baseline Credit Assessment, downgraded to b3 from b2

  Long-term Counterparty Risk Assessment, downgraded to Ba3(cr)
  from Ba2(cr)

  Long-term Counterparty Risk Ratings, downgraded to Ba3 from Ba2

  Long-term Bank Deposits, downgraded to B1 from Ba3, outlook
  changed to Rating under Review from Negative

Affirmations:

  Short-term Counterparty Risk Assessment, affirmed NP(cr)

  Short-term Counterparty Risk Ratings, affirmed NP

  Short-term Bank Deposits, affirmed NP

Outlook Action:

  Outlook changed to Rating under Review from Negative



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


ENEL RUSSIA: Fitch Affirms BB+ LT FC IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed PJSC Enel Russia's Long-Term Foreign-
Currency Issuer Default Rating at 'BB+' with a Stable Outlook.

The affirmation reflects Fitch's expectations that Enel Russia's
credit metrics will remain strong, with funds from operations
(FFO) net adjusted leverage on average of 2.2x over 2018-2022.
This reflects the fact that the new renewables projects are
expected to largely offset the impact on the company's EBITDA from
phasing out of the capacity sales under capacity supply agreements
(CSAs) by 2021. Enel Russia's rating also incorporates FX risk
exposure, some volume and power price risk and volatility of fuel
prices. Fitch rates the company on a standalone basis.

KEY RATING DRIVERS

Renewable CSAs to Replace Thermal: In 2017, Enel Russia won the
auction to build two wind parks totalling 291MW. The payback
period for company's thermal CSAs expires from 2021, while wind
projects will be commissioned from December 2020 and 2021. Similar
to thermal generation in Russia, the renewables CSAs envisage
stable earnings and guaranteed return for capacity sales under the
approved tariff mechanism with a favourable equity internal rate
of return (IRR). Enel Russia estimates total capex for these
projects at EUR405 million.

Fitch expects thermal CSA expiration to be mostly mitigated by the
average annual EBITDA contribution from the new wind units
estimated by Fitch at RUB4.5 billion-RUB5 billion. This is due to
the favourable tariff-setting mechanism, resulting in CSA tariff
for wind projects almost 10 times higher than capacity auction
(KOM) tariffs and 1.5x higher than existing thermal CSA tariffs.
However, the capex spike in 2019-2021 would lead to leverage
peaking in 2021 and lower interest coverage.

Post-CSA EBITDA Decline Risk: Enel Russia's financial profile will
remain supported by capacity payments under thermal CSAs over
2018-2020. Fitch estimates that the newly commissioned units
operating under the CSAs contributed around 40% of its 2017
EBITDA, and Fitch expects their share to remain around 36% over
2018-2020. However, as the 10-year payback period expires from
January 2021 for all thermal power units operating under CSA these
capacities will revert to the market terms. Based on its
estimates, this would result in the removal of RUB6 billion from
2021 EBITDA if not compensated for by the renewables projects.

Modernisation CSA: In mid-January 2018, the Ministry of Energy
proposed a new mechanism for the modernisation of generating
companies' existing thermal power units. A longer payback period
and probably lower return on investments compared with thermal
CSAs for new units should be balanced by shorter investment cycle
of the projects. The modernisation mechanism, once approved for
Enel Russia, could further support post-CSA cash flow stability,
although Fitch does not incorporate it in its rating case.

Strong Financial Profile: Fitch expects Enel Russia to maintain
solid credit metrics over 2018-2022 despite a high dividend payout
ratio and increase in capex for wind projects. Fitch anticipates
FFO net adjusted leverage to peak in 2021 at about 2.7x but to
remain well within Fitch's negative rating guideline of 2.5x on
average over 2018-2022. The forecast reduction in EBITDA in 2018
is driven by lower day-ahead market prices and output decline in
some areas (the Urals region in particular) due to weakened
consumption, as well as a decline in CSA tariffs after their peak
in 2017. Fitch forecasts EBITDA dynamics to improve in 2019-2020
with another dip in 2021 when CSAs for new units will expire but
the wind capacity will not yet have fully come onstream. As a
result of rising capex, Fitch expects the company to turn free
cash flow (FCF) negative over 2018-2020 and for the fixed charge
coverage ratio to decline to below its rating sensitivity after
2020.

Potential Reftinskaya GRES Disposal: Management re-launched
Reftinskaya GRES sale in June 2017. However, no final terms (i.e.
buyers, potential price and further use of proceeds) of the
expected sale have been announced. The disposal plan also fits
well into the parent company Enel S.p.A.'s (BBB+/Stable) strategy,
which pursues reducing coal capacity exposure and further
expansion into green projects.

Fitch will treat Reftinskaya's sale as event risk. The rating
impact will be determined by the business profile of Enel Russia
post disposal, including any further investments in other
businesses or projects, as well as its credit metrics following
the application of sales proceeds. Reftinskaya GRES is a coal-
fired power plant and Enel Russia's largest asset, accounting for
about 40% of its capacity.

Solid Business Profile: Enel Russia's business profile benefits
from its satisfactory market share (4% by installed capacity and
production in Russia, 10% in the Southern and Urals districts),
and the diversity of operations by number of plants, fuel mix and
geography. With installed power capacity of 9.4 GW and heat
capacity of 2.4 thousand Gcal/h in 2017, the company is comparable
with PJSC Mosenergo (BBB-/Stable) but is smaller than PJSC Inter
RAO (BBB-/Positive) and PJSC RusHydro (BBB-/Stable). Enel Russia
is also diversified by fuel mix, which is almost equally split
between gas and coal.

DERIVATION SUMMARY

Enel Russia's rating is supported by its solid market position and
strong financial profile, which is enhanced by a significant share
of EBITDA generated under CSAs with favourable economics. Similar
to other Russian thermal power producers, this is the key factor
that mitigates the company's exposure to market risk and supports
the stability of its cash-flow generation. Enel Russia has a
slightly weaker financial profile than its closest peers Mosenergo
PJSC (BBB-/Stable) and Inter RAO PJSC (BBB-/Positive). Enel
Russia's 'BB+' rating does not incorporate any parental support
from its ultimate majority shareholder, Enel S.p.A.

KEY ASSUMPTIONS

  - Domestic GDP and inflation increase of 1.5% and 4.6% in 2019
    and by 1.9% and 4.6% in 2020-2022

  - Net power output to remain flat over 2018-2022

  - Gas tariffs indexation by around 3% over 2018-2022

  - Power price growth slightly below gas price increase over
    2018-2022

  - Electricity regulated tariffs to increase below inflation

  - Dividends in line with management of 65% of net income under
    IFRS over 2018-2020

  - Capex in line with management expectations for 2018-2020, and
    at about the 2016-2017 level thereafter

  - Average cost of new borrowings of 10% in 2018 and thereafter

RATING SENSITIVITIES

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

  - Continuous track record of supportive regulatory framework for
    gencos, coupled with the company's strong financial profile
    and disciplined financial policy.

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

  - Sale of assets leading to a weakening of the company's
    business and financial profiles.

  - Change of the majority shareholder or shareholder-friendly
    actions resulting in a significant shift in the prudent
    financial policy and material deterioration in the company's
    credit metrics.

  - Generation of negative FCF on a sustained basis.

  - Weaker than expected power prices, a significant rise in coal
    prices and/or a more ambitious capex programme resulting in
    FFO net adjusted leverage rising above 2.5x and FFO fixed
    charge cover falling below 5x on a sustained basis.

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: Enel Russia has comfortable liquidity as
its cash of RUB3.4 billion together with uncommitted unused credit
facilities of RUB30 billion (available for more than a year) were
more than sufficient to cover short-term debt of RUB12.7 billion
at end-1H18. Under all credit facilities Enel Russia does not pay
commitment fees, which is common practice in Russia. The credit
facilities include loan agreements with the largest local banks
and international bank subsidiaries. Fitch expects funding from
these banks to be available to the company.

Manageable FX Risk: Enel Russia's foreign-currency-denominated
debt fell to 22% of total debt (RUB5.7 billion) at end-1H18 from
72% at end-2015. Moreover, the company continues hedging of up to
100% of foreign-currency debt. Enel Russia uses currency swaps for
up to five years as hedging instruments. In addition, Enel Russia
is exposed to tenge fluctuations through prices it pays for coal
purchased in Kazakhstan, which is partially hedged by the company.

SUMMARY OF FINANCIAL STATEMENT ADJUSTMENTS

Leases: 6.0x multiple for historical and forecasted operating
leases capitalisation applicable for Russian corporates.
EBITDA: Adjustments on historical data relate primarily to
adjustments for non-cash items as impairment loss in respect of
2017 PP&E of RUB61 million and loss on disposal of PP&E of RUB13
million.



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


JOYE MEDIA: S&P Assigns BB- Issuer Credit Rating, Outlook Stable
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term issuer credit
rating to Spain-based Joye Media S.L.U., the parent company of
sports rights manager, audiovisual services provider, and content
producer Imagina Media Audiovisual (Imagina). The outlook is
stable.

S&P said, "We also assigned our 'BB' issue ratings to the
company's first-lien debt, issued by Joye Media's subsidiary
Invictus Media S.L.U. The recovery rating on these facilities is
'2', indicating our expectation of substantial recovery prospects
(70%-90%, rounded estimate: 80%) in an event of a payment default.

"At the same time, we assigned our 'B' issue rating to Invictus
Media's second-lien debt. The recovery rating on this instrument
is '6', indicating our expectations of negligible recovery (of
about 0%) in the event of a payment default.

"We removed all preliminary ratings from CreditWatch with negative
implications, where we had initially placed them on May 17, 2018.

"The rating action reflects our view that Joye Media's contractual
situation has materially improved over the past few months,
resulting in improved revenue and profitability predictability,
and supporting our view that the company's S&P Global Ratings-
adjusted debt to EBITDA will remain comfortably below 5x, and
reported free operating cash flow (FOCF) will remain materially
positive.

"On May 17, 2018, we placed the preliminary ratings on CreditWatch
with negative implications on the basis that two important
negotiations -- the sale of Champions League rights in Spain and
the acquisition of the domestic rights for the Spanish football
league (LaLiga) -- generated uncertainty regarding the company's
revenue and EBITDA. The negotiations ended with Imagina reselling
the Champions League rights under profitable terms to Spanish
telecom operator Telefonica, and, while it lost the domestic
rights of LaLiga in Spain, it compensated this loss by acquiring
the domestic rights for French Ligue 1. We therefore continue to
project that the group will generate EBITDA in excess of EUR200
million in 2018.

"Our CreditWatch placement also incorporated the risk to the Serie
A (Italian football league) rights, which Imagina had recently
won, but for which ownership remained uncertain due to EUR1.6
billion in financial guarantees required by the Serie A owner and
due to Italian pay-TV operator Sky Italia contesting the result of
the auction. The Serie A rights were eventually awarded to Sky
Italia and Perform group, with Imagina exiting Italy. The amount
at stake in Italy is now significantly lower, only the EUR64
million deposit paid when Imagina was first awarded the rights,
and could be recovered over time.

"Since our CreditWatch placement, Imagina has also won rights for
South American Football Confederations (CONMEBOL) tournaments,
reinforcing its status as an international leading sport producer
and broadcaster, and expanding its relationships with football
leagues outside of Spain.

"In addition, Imagina renewed its international rights contract
with LaLiga, which accounted for about 40% of Imagina's EUR190
million EBITDA in 2017, until 2024. This contract is the company's
main source of profitability. We believe the extension of five
(2019-2024) additional years guarantees a long-term revenue
stream, and the commission-based structure of the model should
result in strong profitability, supporting the company's revenue
predictability. We view limited downside risk to this contract
since Imagina has already sold some of the rights in Europe and in
the rest of the world, with the amount sold already exceeding the
minimum revenue guarantee of the contract.

"In terms of credit metrics, we continue to forecast materially
positive FOCF, with S&P Global Ratings-adjusted debt to EBITDA
comfortably below 5x. This is supported by Imagina's improved
contract situation in its sports-rights division, and by good
performances in the content production and audiovisual services
divisions. While we expect cash flow generation will be negatively
affected in 2018 by several extraordinary items, such as the EUR64
million deposit for the Italian Serie A auction, we expect FOCF
will increase significantly next year and stabilize at over EUR100
million for the following years. However, we will closely monitor
working capital movements, as large outflows have occurred in the
past.

"The stable outlook reflects our view that Imagina will post
strong EBITDA growth going forward. We expect the group will
generate more than EUR200 million of EBITDA in 2018, with strong
FOCF generation of more than EUR100 million per year from 2019. We
view S&P Global Ratings-adjusted debt to EBITDA at materially less
than 5x, and sizeable FOCF generation as compatible with the
current rating.

"We believe that a downgrade is unlikely over the next 12 months,
since the stabilized contractual situation gives little room for
operational underperformance. However, we could lower the rating
if the group's financial policy was more aggressive than expected
and it failed to deliver on the forecast deleveraging due to any
event, such as unexpected dividend payment or shareholder returns,
and/or a significant debt-financed acquisition. Furthermore, we
will pay close attention to the company's cash generation and any
significant shortfall in FOCF could put pressure on the rating,
which, for example, could result from unexpected changes in
working capital requirements.

"We view an upgrade as unlikely over the next 12 months due to the
company's financial sponsor ownership. Nonetheless, we could raise
the rating if we believe the financial sponsor will relinquish
control over the medium term, with the company's leverage
remaining sustainably below the 4x threshold, and if the company
committed to a more prudent financial policy than in the past." In
addition, any upgrade would hinge on the company mitigating its
significant contract renewal risk by additional diversification
into different business lines."



===========
S W E D E N
===========


INVUO TECHNOLOGIES: Shares Delisted Following Bankruptcy
--------------------------------------------------------
Invuo Technologies AB on Oct. 8 published a press release with
information that Stockholm District Court has declared the company
bankrupt.

According to item 2.8.2 (1) of Nasdaq Stockholm's Rule Book for
Issuers, the Exchange may decide to delist the financial
instruments of the issuer if an application for bankruptcy,
winding-up or equivalent motion has been filed by the issuer or a
third party to a court or other public authority.

With reference to the above, Nasdaq Stockholm has decided to
delist the shares of Invuo Technologies with immediate effect.

Trading in the shares is halted and will not be resumed.

Share details:

Short name: INVUO
ISIN code: SE0000857369
Order book ID: 34601



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


YORSAN GIDA: Seeks Bankruptcy Protection Amid Financial Woes
------------------------------------------------------------
Cagan Koc at Bloomberg News, citing Hurriyet, reports that Turkish
dairy product company Yorsan Gida is seeking bankruptcy protection
as it is going through financial difficulties.

According to Bloomberg, Hurriyet, citing an unnamed source, said a
drop in the profit margin from sales to chain stores, increase in
logistics costs due to oil prices and rise in loan costs are
reasons for deterioration in the company's financial standing.



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


BUSINESS MORTGAGE 5: Moody's Raises Ratings on 2 Tranches to B2
---------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of the Class M1
and M2 Notes in Business Mortgage Finance 5 PLC. The rating action
reflects the increased level of credit enhancement for the
affected Notes.

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

GBP100 million Class A1 Notes, Affirmed Aa2 (sf); previously on
Jan 31, 2018 Affirmed Aa2 (sf)

EUR180 million Class A2 Notes, Affirmed Aa2 (sf); previously on
Jan 31, 2018 Affirmed Aa2 (sf)

Class A1 DAC Notes, Affirmed Aa2 (sf); previously on Jan 31, 2018
Affirmed Aa2 (sf)

Class A2 DAC Notes, Affirmed Aa2 (sf); previously on Jan 31, 2018
Affirmed Aa2 (sf)

GBP27 million Class M1 Notes, Upgraded to B2 (sf); previously on
Jan 31, 2018 Affirmed B3 (sf)

EUR36.5 million Class M2 Notes, Upgraded to B2 (sf); previously on
Jan 31, 2018 Affirmed B3 (sf)

GBP12 million Class B1 Notes, Affirmed Ca (sf); previously on Jan
31, 2018 Affirmed Ca (sf)

EUR11.5 million Class B2 Notes, Affirmed Ca (sf); previously on
Jan 31, 2018 Affirmed Ca (sf)

Business Mortgage Finance 5 PLC (BMF 5) is a securitisation of
non-conforming commercial mortgage loans originated and brought to
market in 2006. The loans were originated by Commercial First
Mortgages Limited (CFML) and Commercial First Business Limited and
are secured on commercial, quasi-commercial or, in limited cases,
residential properties located throughout the UK. The transaction
was structured with detachable A coupons (DAC) which were stripped
from the related Class A Note; ratings on the DAC Notes (Interest-
Only) are derived from the rating on the referenced bond. The
Special Servicer and Cash/Bond Administrator in the transaction
changed in December 2016 to Target Servicing Limited (Target) from
CFML.

RATINGS RATIONALE

The upgrade rating action is prompted by deal deleveraging
resulting in an increase in credit enhancement (CE) for the
affected tranches.

The ratings of the Class A1 and A2 Notes (and the DAC notes) are
capped at Aa2 (sf) due to our assessment of the Financial
Disruption Risk present in the transaction. This is explained in
the Counterparty Exposure section (below).

Revision of Key Collateral Assumptions:

As part of the rating action, Moody's reassessed its expected loss
(EL) assumptions for the portfolio, reflecting the collateral
performance to date.

The performance of the transaction has been broadly stable since
the last rating action in January 2018. Total delinquencies have
decreased in the period since the last rating action, with 90 days
plus arrears currently (August 2018 reporting cycle) standing at
9.05% of current pool balance compared to 11.72% as of November
2017. Cumulative losses currently stand at 16.7% of original pool
balance, a slight increase from 16.5% in November 2017. The
Reserve Fund in BMF 5 is completely depleted and losses now flow
directly to the PDL ledgers within the transaction. Nonetheless,
deal deleveraging has been sufficient to improve the CE levels on
all rated Classes of Notes. Class A1 and A2 CE is calculated at
85.58% in August 2018 from 71.92% in November 2017, Class M1 and
M2 CE is calculated at 21.41% in August 2018 from 16.67% in
November 2017, whilst Class B1 and B2 CE is negative (due to an
uncleared PDL balance) and stands at -3.15% in August 2018 from -
4.48% in November 2017.

Moody's has maintained its current EL assumption on the original
pool balance at 22.31% and adjusted its EL on the current pool
balance upwards to 24.53%. The coefficient of variation (CoV) now
stands at 22.67% with the portfolio credit enhancement (PCE)
maintained at 50.00%.

Increase in Available Credit Enhancement

Sequential amortization led to the increase in the credit
enhancement available in this transaction.

Counterparty Exposure

The rating actions took into consideration the Notes' exposure to
relevant counterparties, such as servicer, account banks or swap
providers.

Moody's considered how the liquidity available in the transactions
and other mitigants support continuity of Note payments, in case
of servicer default. The Servicer (Special Servicer) is unrated.
Generally, the ratings of the Notes are capped at Aa2 (sf) due to
our assessment of the Financial Disruption Risk present in the BMF
series of transactions. The assessment considered the likelihood
of a future disruption occurring, and the ease of transfer of
duties such as servicer, cash manager and calculation agent. The
experience of the transfer of the servicing from CFML to Target
highlighted concerns over the number of possible replacement
servicers, and the sufficiency of the current servicing fee
structure.

Moody's assessed the exposure to Barclays Bank PLC acting as swap
counterparty in all transactions. Moody's analysis considered the
risks of additional losses on the Notes if they were to become
unhedged following a swap counterparty default by using the CR
Assessment as reference point for swap counterparties. Moody's
concluded that the ratings of the Notes are not constrained by the
swap agreement entered between the issuer and Barclays Bank PLC.

Methodology Underlying the Rating Action

The principal methodology used in rating the Class A1, A2, M1, M2,
B1 and B2 Notes of BMF 5 was 'Moody's Global Approach to Rating
SME Balance Sheet Securitizations' published in August 2017. The
methodology used in rating the BMF 5 Class A1 DAC and Class A2 DAC
Notes, was 'Moody's Approach to Rating Structured Finance
Interest-Only (IO) Securities' published in June 2017.

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, (2) deleveraging of the capital
structure and (3) improvements in the credit quality of the
transaction counterparties.

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.


JOHNSTON PRESS: Put Business Up for Sale Amid Mounting Debts
------------------------------------------------------------
Matthew Garrahan and Cat Rutter Pooley at The Financial Times
report that the UK's struggling local newspaper market is heading
for a round of consolidation after Johnston Press, the heavily
indebted group behind the i, The Scotsman, The Yorkshire Post and
around 200 other titles, put itself up for sale.

According to the FT, the company has been struggling to put its
finances in order since March 2017, when it first started
negotiations to refinance a GBP220 million bond due next year and
kicked off a strategic review of its options.

Along with other newspaper groups, Johnston Press has suffered
from a steady decline in advertising revenue and a sharp fall in
income from classifieds, the FT notes.

David King, Johnston Press chief executive, said on Oct. 11 the
company would struggle to refinance its 2019 debt payment, the FT
relates.

"We have a refinancing need in nine months," he told the FT.
Consolidation in local news was "overdue", he added.

The company's pension scheme also has a GBP40 million deficit, the
FT states.

Debt pressure has weighed on the shares: the market value of the
company is just GBP3 million. Mr. King, as cited by the FT, said a
sale could unlock value in the company.

According to the FT, analysts said strategic buyers would include
Reach, formerly known as Trinity Mirror, and Newsquest, which both
have large local newspaper portfolios.  But the debt may scare off
potential bidders, said Douglas McCabe, analyst with Enders
Analysis, the FT relays.

Rothschild will run the formal sale process, the FT discloses.


PATISSERIE VALERIE: Needs Immediate Capital Injection to Survive
----------------------------------------------------------------
Cat Rutter Pooley and Jonathan Eley at The Financial Times report
that Patisserie Valerie will be unable to keep trading without an
immediate injection of capital, the cafe chain's parent company
said on Oct. 11.

According to the FT, the board of Patisserie Holdings said that a
day after two announcements that it had discovered "significant,
and possibly fraudulent" accounting irregularities and also faced
a winding up petition from tax authorities, it had reached the
conclusion there was a "material shortfall" between its reported
financial position and the actual state of the business.

"Without an immediate injection of capital, the directors are of
the view that [there] is no scope for the business to continue
trading in its current form," the FT quotes the company as saying.

Patisserie Holdings said the board, which is led by entrepreneur
Luke Johnson, was "assessing all options available to the business
to keep it trading", the FT relates.



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


* BOOK REVIEW: Competitive Strategy for Healthcare
--------------------------------------------------
Authors: Alan Sheldon and Susan Windham
Publisher: Beard Books
Softcover: 190 pages
List Price: $34.95
Review by Francoise C. Arsenault
Order your personal copy today at http://bit.ly/1nqvQ7V

Competitive Strategy for Health Care Organizations: Techniques for
Strategic Action is an informative book that provides practical
guidance for senior health care managers and other health care
professionals on the organizational and competitive strategic
action needed to survive and to be successful in today's
increasingly competitive health care marketplace. An important
premise of the book is that the development and implementation of
good competitive strategy involves a profound understanding of
change. As the authors state at the outset: "What may need to be
done in today's environment may involve great departure from the
past, including major changes in the skills and attitudes of
staff, and great tact and patience in bringing about the necessary
strategic training."

Although understanding change is certainly important in most
fields, the authors demonstrate the particular importance of
change to the health care field in the first and second chapters.
In Chapter 1, the authors review the three eras of medical care
(individual medicine, organizational medicine, and network
medicine) and lay the groundwork for their model for competitive
strategy development. Chapter 2 describes the factors that must be
taken into account for successful strategic decision-making. These
factors include the analysis of the environmental trends and
competitive forces affecting the health care field, past, current,
and future; the analysis of the competitive position of the
organization; the setting of goals, objectives, and a strategy;
the analysis of competitive performance; and the readaptation of
the business, if necessary, through positioning activities,
redirection of strategy, and organizational change.
Chapters 3 through 7 discuss in detail the five positioning
activities that are part of the model and therefore critical to
the development and implementation of a successful strategy:
scanning; product market analysis; collaboration; restructuring;
and managing the physician. The chapter on managing the physician
(Chapter 7) is the only section in the book that appears dated
(the book was first published in 1984). In this day of physician-
owned hospitals and physician-backed joint ventures, it is
difficult to envision the physician in the passive role of "being
managed." However, even the changing role of physicians since the
book's first publication correlates with the authors' premise that
their model for competitive strategic planning is based exactly on
understanding and anticipating change, which is no better
illustrated than in health care where change is measured not in
years but in months.

These middle chapters and the other chapters use a mixture of
didactic presentation, graphs and charts, quotations from famous
individuals, and anecdotes to render what can frequently be dry
information in an entertaining and readable format.
The final chapter of the book presents a case example (using the
"South Clinic") as a summary of many of the issues and strategic
alternatives discussed in the previous chapters. The final chapter
also discusses the competitive issues specific to various types of
health care delivery organizations, including teaching hospitals,
community hospitals, group practices, independent practice
associations, hospital groups, super groups and alliances, nursing
homes, home health agencies, and for-profits. An interesting quote
on for-profits indicates how time and change are indeed important
factors in strategic planning in the health care field: "Behind
many of the competitive concerns lies the specter of the for-
profits. Their competitive edge has lain until now in the
excellence of their management. But developments in the past half-
decade have shown that the voluntary sector can match the for-
profits in management excellence. Despite reservations that may
not always be untrue, the for-profit sector has demonstrated that
good management can pay off in health care. But will the voluntary
institutions end up making the same mistakes and having the same
accusations leveled at them as the for-profits have? It is
disturbing to talk to the head of a voluntary hospital group and
hear him describe physicians as his potential competitors."



                            *********

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *