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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, November 15, 2018, Vol. 19, No. 227


                            Headlines


G E R M A N Y

HSH NORDBANK: Bondholders Invited to Vote on Litigation Proposal


I R E L A N D

GOLDENTREE LOAN 2: Moody's Assigns (P)B2 Rating to Class F Notes


I T A L Y

CMC DI RAVENNA: S&P Lowers Long-Term ICR to CC on Missed Payment
ITALY: Stimulus Plan May Expose Country to Higher Interest Rates


K A Z A K H S T A N

KAZTRANSOIL: S&P Raises Long-Term ICR to BB, Outlook Stable


L U X E M B O U R G

GARRETT LX: S&P Assigns B Rating to EUR350MM Sr. Unsecured Notes


M O N A C O

DYNAGAS LNG: S&P Lowers Long-Term ICR to 'B-', Outlook Negative


N E T H E R L A N D S

ALPHA AB: Fitch Assigns Final 'B' LT Issuer Default Rating
JUBILEE CLO 2014-XIV: Moody's Affirms B2 Class F Notes Rating
* NETHERLANDS: Corporate Bankruptcies Up to 306 in October 2018


R U S S I A

POLYUS PJSC: S&P Raises Long-Term Issuer Credit Rating to BB


T U R K E Y

TURKEY: Companies Under Bankruptcy Protection Reach 356


U K R A I N E

MRIYA AGROHOLDING: Former Owner Extradited to Ukraine


U N I T E D   K I N G D O M

ATLANTICA YIELD: Fitch Rates Senior Unsecured Notes 'BB+'
CO-OPERATIVE BANK: Fitch Withdraws 'B' EMTN Programme Ratings
INTERSERVE PLC: Denies Crisis Rumors Amid Financial Woes
NEST INVESTMENTS: Moody's Lowers Long-Term Issuer Ratings to Ba3
RESIDENTIAL MORTGAGE 31: S&P Gives 'BB' Rating to F1-Dfrd Notes


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G E R M A N Y
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HSH NORDBANK: Bondholders Invited to Vote on Litigation Proposal
----------------------------------------------------------------
Thomas Beardsworth at Bloomberg News, citing a statement from
special-purpose issuer Banque de Luxembourg, reports that holders
of US$500 million perpetual notes are invited to vote on a
proposal to authorize law firm Quinn Emanuel to litigate against
HSH Norbank on their behalf.

According to Bloomberg News, the statement said the request for
the Nov. 29 vote was made by security holders with more than 10%
of the bond.

The notice follows Quinn Emanuel's Nov. 8 statement requesting
bank "write-up" of junior Tier 1 securities, Bloomberg News
discloses.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on May 10,
2018, Moody's Investors Service downgraded to C(hyb) from Ca(hyb)
the hybrid instrument ratings of HSH Nordbank AG (HSH, deposits
Baa3 review for upgrade/senior unsecured Baa3 review for upgrade,
Baseline Credit Assessment b3 review for upgrade), issued as non-
cumulative preference shares through its funding vehicles
RESPARCS Funding Limited Partnership I, RESPARCS Funding II
Limited Partnership and HSH N Funding I and as junior subordinate
bonds through HSH N Funding II.


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I R E L A N D
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GOLDENTREE LOAN 2: Moody's Assigns (P)B2 Rating to Class F Notes
----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by GoldenTree
Loan Management EUR CLO 2 Designated Activity Company:

EUR 2,000,000 Class X Senior Secured Floating Rate Notes due
2032, Assigned (P)Aaa (sf)

EUR 240,000,000 Class A Senior Secured Floating Rate Notes due
2032, Assigned (P)Aaa (sf)

EUR 19,000,000 Class B-1 Senior Secured Floating Rate Notes due
2032, Assigned (P)Aa2 (sf)

EUR 20,000,000 Class B-2 Senior Secured Fixed Rate Notes due
2032, Assigned (P)Aa2 (sf)

EUR 27,700,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)A2 (sf)

EUR 26,500,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)Baa3 (sf)

EUR 24,300,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)Ba2 (sf)

EUR 10,200,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)B2 (sf)

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
endeavour 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
from 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 considers that the collateral manager GoldenTree Loan
Management, LP ("GoldenTree LM") has sufficient experience and
operational capacity and is capable of managing this CLO.

The Issuer is a managed cash flow CLO. At least 96% of the
portfolio must consist of senior secured obligations and up to 4%
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 comprise of predominantly 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. Moody's noted that collateral
obligations may also be acquired by the CLO issuing SPV by way of
participation from a bankruptcy remote warehousing SPV with the
intention to elevate the sale of those obligations as soon as
practicable around the effective date. If bankruptcy remoteness
of the warehousing SPV is not properly ensured then operational
risks might occur with regards to the elevation of the sale of
these collateral obligations.

GoldenTree LM will manage the CLO. It will direct the selection,
acquisition and disposition of collateral on behalf of the Issuer
and may engage in trading activity, including discretionary
trading, during the transaction's 4.5-year 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.

Interest and principal amortisation amounts due to the Class X
Notes are paid pro rata with payments to the Class A-1 Notes. The
Class X Notes amortise by EUR 250,000 over eight payment dates
starting from second payment date.

In addition to the eight classes of notes rated by Moody's, the
Issuer will issue EUR 35,400,000 of Subordinated Notes which are
not 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. The collateral manager'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: 37*

Weighted Average Rating Factor (WARF): 2900

Weighted Average Spread (WAS): 3.5%

Weighted Average Coupon (WAC): 4.0%

Weighted Average Recovery Rate (WARR): 43.10%

Weighted Average Life (WAL): 8.5 years

  * The covenanted base case diversity score is 38, however
Moody's has assumed a diversity score of 37 as the deal
documentation allows for the diversity score to be rounded up to
the nearest whole number whereas usual convention is to round
down to the nearest whole number.

Moody's has addressed the potential exposure to obligors
domiciled in countries with local currency ceiling (LCC) of A1 or
below. As per the portfolio constraints and eligibility criteria,
exposures to countries with LCC of A1 to A3 cannot exceed 10% and
obligors cannot be domiciled in countries with LCC below A3.


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I T A L Y
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CMC DI RAVENNA: S&P Lowers Long-Term ICR to CC on Missed Payment
----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Italy-based engineering and construction company CMC di Ravenna
(CMC) to 'CC' from 'B-'. The rating remains on CreditWatch with
negative implications.

S&P said, "At the same time, we lowered our issue ratings on
CMC's EUR325 million and EUR250 million senior unsecured bonds to
'CC' from 'B-'. The issue ratings remain on CreditWatch negative.
The recovery rating on both instruments remains '4', indicating
our expectation of average recovery prospects (30%-50%; rounded
estimate: 35%) in the event of a payment default."

The downgrade follows CMC's announcement on Nov. 9, 2018, that it
will not pay on time the interest due on Nov. 15, 2018 on its
EUR325 million senior unsecured notes, issued in November 2017
and maturing in February 2023. Based on the bond documentation,
CMC has a 30-day grace period from the due date to make the
interest payment before an event of default occurs.

CMC also announced on the same day that it is facing cash flow
constraints due to delayed payments on its work in progress. The
company stated that it is designing a plan to overcome this
liquidity situation while guaranteeing business continuity, which
would be followed by a negotiation of a general restructuring of
its financial debt. S&P understands that CMC's board of directors
will reconvene within the next two weeks to solidify a strategy.

CMC's liquidity position and credit metrics have weakened in the
past few months. On Sept. 12, 2018, CMC released its financial
results for second-quarter 2018 and reported a negative cash flow
from operations of about EUR124 million, which ultimately
increased its reported net financial position to 5.3x from 3.9x
at year-end 2017. That was primarily due to six delayed project
payments totaling about EUR110 million, mainly in Italy and
Africa. On Oct. 15, 2018, CMC stated that it had failed to
collect any of those delayed payments in the third quarter. The
company also stated that the net financial position at end-
September 2018 had remained broadly the same as the one reported
on June 30, 2018. On Oct. 31, 2018, Anas SpA, the Italian roads
and railways operator and one of CMC's biggest clients in Italy,
announced that it had made all its overdue payments for work in
progress with CMC, amounting to about EUR50.6 million. To date,
CMC has not published its third-quarter results. However, based
on CMC's latest press release, we understand that the company's
liquidity and financial position have significantly weakened.

The CreditWatch reflects the risk of a downgrade to 'D' if CMC
fails to make the interest payment on its EUR325 million senior
note by the end of the grace period. Additionally, S&P
incorporates its view that CMC could pursue a distressed exchange
or other restructuring within the next few months, which would
also leads S&P to lower the ratings on the company and its debt
to 'D'. The company's still-restricted scale and cash flow
generation, together with its bonds consistently trading well
below par, could increase the incentives for a debt
restructuring.

In order for S&P to remove the ratings from CreditWatch, CMC will
have to make the interest payment. Though unlikely, better
operating prospects and an improved cash position could lower the
incentives for a short-term debt restructuring.


ITALY: Stimulus Plan May Expose Country to Higher Interest Rates
----------------------------------------------------------------
David Lawder at Reuters reports that Italy's fiscal stimulus
plans would leave the country vulnerable to higher interest rates
that could ultimately plunge it into recession, the International
Monetary Fund warned on Nov. 13, recommending instead a "modest"
fiscal consolidation to reduce financing costs.

According to Reuters, the IMF said after an annual staff review
of Italy's economic policies that any temporary, near-term growth
gains from the stimulus is likely to be outweighed by the
"substantial risk" of a rapid deterioration.

"Materialization of even modest adverse shocks, such as slowing
growth or rising spreads, would increase debt, raising the risk
that Italy could be forced into a large fiscal consolidation when
the economy is weakening," Reuters quotes the IMF as saying.
"This could transform a slowdown into a recession."

Italy's coalition government has proposed a 2019 deficit of 2.4%
of gross domestic product, three times the previous
administration's target, Reuters discloses.

The IMF projects a higher 2019 deficit of 2.66% of GDP with the
stimulus, rising to 2.8%-2.9% in 2020-2021, Reuters states.

Italy has the largest debt among big European Union economies, at
131% of GDP, and it is under pressure from the EU to rein in
spending amid fears it could sow the seeds of a new debt crisis
in the euro zone, Reuters notes.


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K A Z A K H S T A N
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KAZTRANSOIL: S&P Raises Long-Term ICR to BB, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings said that it has raised to 'BB' from 'BB-' its
long-term issuer credit ratings on Kazakhstan national pipeline
operators KazTransOil (KTO) and KazTransGas (KTG), as well as
KTG's core subsidiary Intergas Central Asia JSC. The outlooks on
all three companies are stable.

The upgrades follow our upgrade of the immediate parent
KazMunayGas. S&P considers both companies to be government-
related entities (GREs) and has not changed its view of the
likelihood that these companies would receive extraordinary
support from the government of Kazakhstan if needed.

S&P said, "At the same time, we continue to believe these
subsidiaries cannot be rated higher than the parent. This is
because, in our view, there are no effective insulation
mechanisms and the subsidiaries are not protected from potential
negative intervention from KMG. Our assessment of KMG's stand-
alone credit profile (SACP) has improved to 'b+', but it is still
lower than KTO's ('bb+') and KTG's ('bb-'), given that most of
the KMG group's debt is at the parent level. Hence, the
improvement in KMG's credit quality that led to our upgrade of
KMG reduces the potential negative pressure from the parent and
led us to take a similar rating action on KTO and KTG."

KAZTRANSGAS

S&P said, "We believe there is a moderately high likelihood that
KTG would receive timely and sufficient extraordinary support in
the event of financial stress. We assume that this support would
likely come directly from the government, rather than from KMG.
Therefore, our long-term rating on KTG reflects our assessment of
its SACP at 'bb-' and one notch uplift for potential government
support."

In October 2018, KTG and PetroChina International Co. Ltd. signed
a sales and purchase agreement for 10 billion cubic meters
annually for the next five years. Gas-trading operations are
profitable for the KTG group. The cost of purchased gas is
currently relatively low for KTG, due to its status as a national
operator, and we expect the company could report at least a 20%
EBITDA margin on gas exports. Additional cash flows from gas
trading should support stable credit metrics at the KTG level,
but also bring material input to the consolidated KMG group
EBITDA. S&P said, "We believe that, with the raised volume of
KTG's gas-trading operations, the importance of KTG within the
KMG group has increased. We now see KTG as a strategically
important subsidiary of KMG, given the subsidiary's integration
in the group's operations and close financial ties."

S&P said, "The stable outlook mirrors that on KTG's immediate
parent, KMG. It also reflects our expectations that the company
will successfully complete its intensive investment program
within budget and on time, with peak spending in 2018, and
maintain sound credit metrics with funds from operations (FFO) to
debt comfortably exceeding 20%, as well as that the group's
structure will not change significantly."

S&P'd likely downgrade KTG if its SACP deteriorates to 'b+'. This
could result from:

-- Higher-than-expected investments or dividend payouts or
     significantly worse operating performance causingg FFO to
     debt to fall sustainably below 20%; or

-- A material change to the structure of the KTG group.

A negative rating action on KMG or Kazakhstan would trigger a
similar rating action on KTG.

Upside prospects depend on KMG's credit quality, given that S&P
doesn't expect to rate KTG above the parent. In addition, the
upgrade would require an improvement in KTG's SACP of two notches
to 'bb+'.

KAZTRANSOIL

S&P said, "We cap our rating on KTO at the level of the rating on
KMG, owing to KTO's status as a strategically important
subsidiary of the KMG group and our view that there is a high
likelihood that KTO would receive timely and sufficient
extraordinary support in the event of financial stress. We assume
that this support would likely come directly from the government,
rather than from the parent. There's currently no uplift for
potential government support in our rating on KTO, given KTO's
comparatively high SACP ('bb+') relative to KMG's.

"The stable outlook mirrors that on KTO's immediate parent, KMG,
and our expectations of solid credit metrics supported by
profitable midstream operations and absence of debt at the KTO
level. We believe KTO cannot be insulated from the risks
attributable to the group, therefore we do not rate the
subsidiary above the parent.

"We expect that any negative rating action on KTO would likely
stem from a similar rating action on KMG rather than from a
change in KTO's SACP, given the significant headroom in the
rating. All else being equal, KTO's SACP would need to
deteriorate to 'b' from 'bb+' currently to trigger a downgrade. A
moderate increase in debt leverage would not lead to downgrade.
Although very unlikely to occur in the medium term, material
multinotch deterioration of the SACP could lead us to review our
assessment of the likelihood of support from the state or parent,
and to lower the rating.

"We would likely raise the rating on KTO if we took a similar
action on KMG."


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L U X E M B O U R G
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GARRETT LX: S&P Assigns B Rating to EUR350MM Sr. Unsecured Notes
----------------------------------------------------------------
S&P Global Ratings said that it assigned its 'BB-' long-term
issuer credit rating to U.S.-based auto supplier Garrett Motion
Inc. The outlook is stable.

S&P said, "At the same time, we assigned our 'BB-' issue rating
and '3' recovery rating to the senior secured facilities all
guaranteed by Garrett Motion Inc. (including the EUR430 million
multicurrency revolving credit facility [RCF] due 2023, EUR330
million euro-denominated term loan A due 2023 issued by
Switzerland-based Honeywell Technologies S.a.r.l., and $425
million dollar- and EUR375 million euro-denominated term loan B
due 2025 issued by Garrett LX III S.a r.l.). This reflects our
expectations of meaningful recovery (50%-70%; rounded estimate:
60%).

"We also assigned our 'B' issue rating and '6' recovery rating to
the EUR350 million 5.125% senior unsecured notes due 2026 issued
by Luxembourg based Garrett LX I S.a.r.l and guaranteed by
Garrett Motion Inc. This reflects our expectations of negligible
recovery (0%-10%; rounded estimate: 0%), based on its
subordination to the senior secured debt.

"Our ratings are in line with our preliminary ratings published
Aug. 30, 2018, although we have revised down recovery prospects
on the term loan B, given the increased size of the facility.
Following the successful spin off of Garrett Motion Inc. from
U.S.-based Honeywell International Inc. and the successful
placement of debt, Garrett now trades on the New York Stock
Exchange under NYSE:GTX. Garrett Motion revised the cross-border
loan portion (term loan B) of its spin-off financing by upsizing
the senior secured facilities by EUR100 million, while downsizing
the amount of unsecured notes issued by the same amount. The
total debt quantum remains $1,660 million. We note that pricing
was tighter than expected and as such funds from operations (FFO)
cash interest cover is slightly higher but not material to our
view on the rating. With $3.1 billion in annual sales (2017),
Garrett is one of the leading global players in the design,
production, and sale of diesel and gasoline turbochargers for
light and commercial vehicles.

Key rating factors include:

-- S&P's assumption of increasing penetration of turbochargers
    for light and commercial vehicles globally, Garrett's
    successful rebalancing of its product line away from diesel
    into petrol and hybrid vehicles,

-- Its capacity to maintain adjusted EBITDA margins above 20%
    post spin-off, and

-- S&P's forecast of adjusted FFO to debt at around 20%.

Garrett is one of two global turbocharger manufactures. Compared
with the other global leader, U.S.-based Borg Warner, Garrett has
a higher exposure to diesel engines for light and commercial
vehicles (48% of Garrett's revenues in 2017). Diesel has been
losing market appeal in Europe since 2017, especially in the
passenger car segment. Product concentration at Garrett is partly
mitigated by growth in relevant markets like India and China,
where consumers are less averse to diesel compared with Europe.
S&P said, "While we deem the exposure to diesel as a weakness for
Garrett's business risk profile, we acknowledge the company's
efforts in strengthening its gasoline product line and in
developing alternative products, namely e-boosting technologies
for hybrid vehicles. Going forward, it is unlikely Garrett will
materially challenge Borg Warner's solid market positions in the
petrol turbocharger segment, so rebalancing the product portfolio
away from diesel into petrol and e-boosting could take some
time."

Aftermarket revenues, which contribute to stabilize revenues
across cycles, account for a mere 12% of Garrett's turnover (in
2017). On the other hand, Garrett has a pipeline of awarded
orders, with 100% of revenues awarded and replaced in 2018 and
98% awarded and replaced in 2019.

Geographical diversification of the portfolio, coupled with the
automotive industry's megatrends (electrification and more
stringent emission regulation in Europe), support business
prospects for Garrett over 2018-2020. Turbochargers provide a
cost-effective way for automotive original equipment
manufacturers (OEMs) to reduce vehicle emissions to comply with
increasingly strict environmental regulation. S&P said, "Because
environmental concerns are paramount and pressing in at least two
of Garrett's market areas (Europe and China), we expect the near-
term demand for turbochargers to increase in the 5%-8% range.
Garrett is engaged at an early stage of the vehicle design
process, which provides predictable revenues over our two-year
forecast horizon, although this does not provide immunity to
sudden declines in vehicle production as contracts with OEMs
allow for the termination of supply contracts at any time."

Given turbo systems' complexity and high research and development
(R&D) content, S&P deems it unlikely OEMs will insource their
design and manufacture.

S&P said, "We currently view Garrett's adjusted EBITDA margins as
above industry average, at 18.5% in 2017, and expect them to
increase above 20% in 2018 and 2019 (excluding the indemnity
payment). Garrett outsources the manufacturing of low value
parts, which partially reduces the risk of increasing raw
material prices. Although not part of our base-case scenario, we
see a risk of input inflation after the spin-off, given weaker
negotiating power with suppliers. This could have a negative
impact on EBITDA margins, given that Garrett's supply agreements
generally require a step down in component price across a
production period. We thus link rating stability to Garrett's
capacity to maintain adjusted margins above 20%.

"The spin-off from Honeywell comes with a 30-year indemnity
agreement for prior Bendix asbestos liabilities, which results in
Garrett indemnifying Honeywell up to an annual maximum of $175
million. We assume Garrett is not exposed to the risk of
increasing asbestos claims over time, a risk that remains with
Honeywell Inc. Garrett estimates its liability to Honeywell in
its balance sheet at $1,364 million (net of insurance), which
derives from an actuarial valuation of prior payment rates and
number of claims. We add this amount to debt, given the debt-like
features of the indemnity. We have thus excluded the indemnity
payment from our adjusted EBITDA and we have refrained from
adjusting FFO with accrued interest on the above-mentioned
liability, in line with our treatment of litigation-linked
obligations.

"Our ratings also reflect Garrett's good cash flow generation
capacity. We expect FFO of $415 million in 2018. We believe
Garrett's financial risk profile is also driven by its capacity
to generate free cash flow, which is partially constrained by
capital expenditure (capex; 3% of revenues) and R&D (4% of
revenues).

For 2017, we have adjusted FFO by adding back cash payments
related to deemed repatriation taxes of $354 million. The spin-
off will also result in a tax liability to Honeywell. We
calculated the net present value of the tax liability due to
Honeywell under a tax matters agreement for the next eight years.
We have therefore adjusted debt by $247 million, amortizing at 8%
of the liability for the first five years, increasing to 15%,
20%, and 25% respectively for the remaining three years.

"We estimate that the company's adjusted debt to EBITDA will be
about 4.3x and its FFO-to-adjusted-debt ratio will be
approximately 17% in 2018. We expect adjusted debt to EBITDA to
strengthen to 3.6x and FFO to adjusted debt to 20%-21% in 2019,
due to a combination of debt reduction and EBITDA growth. We
expect Garrett to generate around $280 million of free operating
cash flow (FOCF) annually from 2019 and anticipate that it will
use this cash to reduce its debt and consider small bolt-on
acquisitions. Because credit metrics appear low in the comparison
with peers in the same financial risk category, we apply a
negative comparable rating modifier, which brings the stand-alone
credit profile to 'bb-'."

In S&P's base case, it assumes:

-- Global light vehicle volume growth of 1%-2% in 2018 and 1%-2%
    in 2019;

-- Increasing penetration of turbochargers for diesel, petrol,
    and hybrid light and commercial vehicles;

-- Revenue growth of 5%-6% in 2018 and 2019, compared with 2.7%
    in 2017;

-- Adjusted EBITDA margins of 22%-23% in 2018 and 23%-23.5% in
    2019, compared with 18.5% in 2017;

-- R&D expense of 4% of revenues per year in line with 2017;

-- Capex of $85 million in 2018 and $130 million in 2019,
    compared with $95 million in 2017;

-- Minimal intra-year drawing on the RCF;

-- Small bolt-on acquisitions of $50 million per year;

-- No dividend payments; A euro to U.S. dollar exchange rate of
    1.15; and

-- Annual cash payments for tax liability payments to Honeywell
    of $28 million.

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

-- Debt to EBITDA of 4.3x in 2018 and 3.6x in 2019;
-- FFO to debt of 17% in 2018 and 20%-21% in 2019; and
-- FOCF to debt of 10% in 2018 and 2019.

S&P said, "The stable outlook on Garrett reflects our expectation
that management will continue to successfully operate the
company, maintaining adjusted EBITDA margins above 20%. In
addition, we expect the company to sustain leverage of less than
4x and an FFO-to-adjusted debt ratio of around 20%.

"We deem a rating upgrade unlikely over 2019 but we could
consider raising our ratings if earnings and FOCF exceed our
expectations, resulting in adjusted debt to EBITDA in the low 3x-
4x range and an FFO-to-adjusted debt ratio sustainably above 25%.

"Although unlikely, we could lower our ratings on Garrett if
adjusted leverage increases beyond 4x and FFO to debt remains
below 20%. We could see this happening in relation to a sharp
decline in the demand for new turbocharged diesel cars not
compensated by growth in other products and therefore severely
hitting EBITDA margins, bringing them toward 15%."


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M O N A C O
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DYNAGAS LNG: S&P Lowers Long-Term ICR to 'B-', Outlook Negative
---------------------------------------------------------------
S&P Global Ratings lowered to 'B-' from 'B' its long-term issuer
credit ratings on Marshall Islands-registered liquefied natural
gas (LNG) carrier, owner, and operator Dynagas LNG Partners LP
(Dynagas LNG) and its finance subsidiary Arctic LNG Carriers Ltd.
The outlook is negative.

S&P said, "We also lowered our issue rating on the $480 million
senior secured term loan B due 2023 issued by Arctic LNG Carriers
to 'B+' from 'BB-'. The recovery rating is '1', reflecting our
expectation of very high (90%-100%, rounded estimate 95%)
recovery in the event of a payment default.

"The downgrade reflects our view of heightening refinancing risk
for Dynagas LNG as it approaches the maturity of the outstanding
$250 million unsecured notes due Oct. 30, 2019. Dynagas LNG has
not yet secured committed funding to refinance the debt, and we
expect the company's liquidity sources to fall materially short
of its uses over the 12 months started Nov. 1, 2018, unless it
refinances. Moreover, in our view, the refinancing could become
increasingly difficult and options more limited as the maturity
approaches.

"The previous rating was predicated on our expectation that
Dynagas LNG would be able to complete the refinancing well ahead
of the October-2019 maturity. We factor into our analysis the
fact that Dynagas LNG is considering several refinancing options,
including $55 million of proceeds from the October-2018 issue of
perpetual preferred units, which we understand the company will
apply against the repayment of unsecured notes. Nevertheless, in
the absence of a concrete refinancing plan, we consider the
timely execution of the refinancing to be uncertain, in
particular at a time when lenders have curtailed their exposure
to ship financing. A failure to timely refinance the unsecured
notes would lead to a default under our criteria."

At the same time, the company remains highly leveraged. This
results from the underlying industry's high capital intensity and
the company's partly debt-funded periodic investments in new
tonnage (with the exception of the acquisition of gas carrier
Lena River in December 2015 for $240 million in a largely debt-
financed transaction). Furthermore, Dynagas LNG pursues an
aggressive dividend policy, which is typical for a master limited
partnership (MLP), and which prevents any accumulation of cash
for vessel acquisitions or debt repayment. This is because under
normal trading conditions, excess cash flows are distributed to
unitholders.

Dynagas LNG's operational performance in 2018 remains in line
with S&P's expectations, underpinned by the company's long-term
contracted time-charter profile. As anticipated, Dynagas LNG's
financial position has weakened on the back of a contraction in
EBITDA generation to $90 million-$100 million in 2018. S&P
expects EBITDA to stay in this range, compared with about $100
million in 2017 and $140 million in 2016. The fall stems from the
most recent charter renewals, which were at lower rates than
previously.

S&P said, "According to our base case, S&P Global Ratings-
adjusted funds from operations (FFO) to cash interest will remain
above 2.0x, adjusted FFO to debt above 6%, and adjusted debt to
EBITDA at around 7.5x, which in aggregate falls at the higher end
of our highly leveraged financial risk category. Our forecast
incorporates the company's predictable earnings and time-charter
profile of an average remaining contract term of about 10 years,
the longest among shipping peers that we rate. These contracts
are fixed and non-cancellable agreements with creditworthy oil
and gas majors.

"The rating reflects our assessment of Dynagas LNG's business
risk profile as weak, which mirrors the company's comparatively
narrow business scope and diversity, with a business model built
around six gas carriers, and its concentrated charterer base. We
consider the size of the fleet as critical in our analysis
because we believe it is strongly correlated with the
vulnerability of the business model to shocks and high-impact,
low-probability events. The fundamental characteristics of the
gas shipping industry -- such as its capital intensity, high
fragmentation, frequent imbalances between demand and supply,
lack of meaningful supply discipline, and charter rate
volatility -- further constrain the company's overall business
profile. Nevertheless, we view gas shipping as one of the most
attractive shipping segments, owing to its high commercial and
technical barriers to entry and typically very long-term take-or-
pay contracts with reputable counterparties.

"We consider these risks to be partly offset by the low
volatility in Dynagas LNG's profitability, which stems from the
company's conservative chartering policy and predictable running
costs. Furthermore, we recognize Dynagas LNG's highly specialized
and modern ice-class fleet, with an average fleet age of about
eight years, which is well below the industry average of 12-13
years, and which is normally able to achieve a premium above
average market rates.

"We rate Dynagas LNG under our MLP criteria. We believe that
Dynagas Holdings exercises meaningful ongoing control over
Dynagas LNG by virtue of its control of Dynagas GP LLC, Dynagas
LNG's general partner. We consider the strategic and financial
interests of Dynagas Holdings and the other unitholders in
Dynagas LNG to be aligned. In addition, we note that the
unitholders elect three of the five members of Dynagas LNG's
board of directors. Under agreements with Dynagas Holdings,
Dynagas LNG will likely continue to acquire vessels that already
have multiyear contracts. We believe that Dynagas LNG will avoid
construction, start-up, initial contracting, and associated
funding and liquidity risks, because Dynagas Holdings largely
bears such risks. That said, we believe that Dynagas LNG could
similarly pursue its expansion without the involvement of Dynagas
Holdings through the acquisition of chartered-out vessels from a
third party (for example, a major energy company), without
exposing itself to any funding and construction risk."

The negative outlook reflects the considerable risk surrounding
Dynagas LNG's ability to complete the unsecured notes refinancing
in the next three to six months. S&P believes that Dynagas LNG
may need to secure multiple liquidity sources to fully satisfy
this obligation due October 2019, which adds to the complexity
and uncertainty over the timing of the refinancing.

S&P will downgrade Dynagas LNG if the company cannot secure
sufficient funding sources within the next three to six months to
fully refinance the outstanding unsecured notes.

Because the current rating and outlook on the company are driven
by liquidity concerns, S&P would likely upgrade Dynagas LNG if it
successfully refinances the unsecured notes and thereby extends
its debt maturity profile. A positive rating action would also
depend on the prospects for the company to deliver EBITDA
generation consistent with our base case. For example, S&P would
consider adjusted FFO to cash interest remaining above 2.0x as
commensurate with a 'B ' rating.


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


ALPHA AB: Fitch Assigns Final 'B' LT Issuer Default Rating
----------------------------------------------------------
Fitch Ratings has assigned a final Long-Term Issuer Default
Rating (IDR) of 'B' with a Stable Outlook to Alpha AB Bidco BV,
also a final senior secured rating of 'B+'/'RR3'/60% to its
EUR830 million seven-year senior secured covenant-lite Term Loan
B (TLB).

The final rating on the TLB is in line with the expected rating
assigned on September 14, 2018, and follows the receipt of final
documents conforming to earlier information.

The IDR of Alpha AB Bidco BV reflects Fitch's expectation of
stable revenue and profits for the combined group over the rating
horizon. The combined entity forms a global manufacturer of
conveyer and power transmission belts with little product overlap
and pro forma EBITDA of EUR132.5 million for the fiscal year
ending December 31, 2017 (FY17). The rating also reflects the
high leverage at closing of the transaction in September 2018.
Ammeraal's acquisition of Megadyne was financed with a new EUR830
million seven-year senior secured covenant-lite TLB and a euro-
equivalent 160 million (USD186 million) eight-year second-lien
facility.

KEY RATING DRIVERS

Megadyne Acquisition, Strategic Fit: The combination of Ammeraal
and Megadyne brings together a complementary product range of
conveyor belts and power transmission belts, a recurring income
stream from after-market sales, and above-inflation organic
growth prospects. The combined group has a diverse product
portfolio, geographic footprint and customer base. Fitch believes
that Ammeraal and Megadyne have largely avoided commoditised belt
applications where pricing power is weak and, instead, focused on
markets where their expertise and experience is acknowledged and
pricing power is enhanced.

Fitch also views the execution risk of the merger as moderate.
Under Partners Group's ownership, Fitch expects management will
focus on targeted synergies of around EUR20 million within 24
months coming from operational efficiencies, which Fitch believes
are reasonable.

Supportive Product Demand, Diversification: Industrialisation in
many sectors requires more automation, such that growth prospects
are positive across various geographies. The enlarged group's
end-market exposure is diverse, spanning food manufacturing,
logistics (including packaging), industrial processes, household
goods and elevators. Fitch expects growth to come from increasing
application and installation of belt products to support the rise
of automation in industrial processes, and greater precision and
efficiency requirements from original equipment manufacturers.

After-market revenue (a large majority of turnover) feeds off the
group's initial installation of the equipment with recurring
requirements for replacement and upgrading of belts. Ammeraal's
and Megadyne's ability to retain customers historically should
support earnings resilience over the rating horizon.

Cash Generative Profile: The group has a stable, profitable and
cash-generative financial profile. The capex-light nature of the
business (which represents less than 5% of sales) and free cash
flow (FCF) margin, which Fitch expects to be above 5% of sales
over the rating horizon, help to compensate for the high
leverage. Profit and cash flow stability is also underpinned by
raw materials (such as oil, rubber, and ethanol) representing
around 23% of turnover and being largely passed onto customers,
as well as the group's ability to flex costs in downturns.

Highly Leveraged Capital Structure: At closing of the transaction
in September 2018, the FFO adjusted gross leverage was around
8.5x, a clear constraining factor for the rating. The rating
assumes the combined group will maintain a disciplined financial
policy, with no dividends, no further transformative M&A, such
that Fitch forecasts FFO lease-adjusted gross leverage will
decrease towards 6.0x by 2022. Any deviation from this
deleveraging path, for example because of debt-funded and/or
margin-dilutive M&A, may lead to a negative rating action.

DERIVATION SUMMARY

The merger of Ammeraal Beltech and Megadyne should allow the
combined entities to achieve greater scale and help protect
pricing power thanks to synergies and increased market share in
the niche belt manufacturing segment. Although the group's direct
competitors are larger and more diversified manufacturers, Fitch
calculates that their belting segment is smaller or equal to the
equivalent production capacities within the combined group. On
the belt segment, the combined group faces direct competitors
like Forbo, Rexnord Corporation and Gates even though these peers
are bigger and more diversified.

The combined group is also much smaller and has far more leverage
than US industrial conglomerates, such as Xylem, Inc., The Timken
Company and Flowserve Corporation, which are all investment-grade
companies.

Fitch believes that the combined group sits well within the 'B'
category, relative to Fitch's EMEA portfolio of Industrial &
Manufacturing credit opinions. Despite a high initial leverage
that is more consistent with a 'B-' rating, Alpha AB Bidco's
size, profitability, FCF margin and deleveraging profile support
a 'B' rating.

KEY ASSUMPTIONS

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

  - Annual sales growth of 3.5%-4% for Ammeraal Beltech and
Megadyne over the next three to four years driven by strong
demand, recurring customers with after-market sales, bolt-on
acquisitions and potential cross-selling of products to the wider
customer base.

  - Slightly improving EBITDA margins thanks to margin
convergence of less-profitable geographies towards 20% on average
for the combined entities. Few comparable peers, where figures
are disclosed, reach these margins of above 20%.

  - Annual cost synergies of EUR20 million by 2020.

  - 3.5% capex as a percentage of sales in line with the
historical average.

  - Working capital outflow equivalent to 2% of sales.

  - EUR15 million cash spent on acquisitions per year, financed
by internally generated funds.

  - No dividend.

  - No additional transformative acquisition.

KEY RECOVERY ASSUMPTIONS

Bespoke Approach: As Alpha AB Bidco's IDR is in the 'B' rating
category, Fitch undertakes a bespoke recovery analysis in line
with its criteria. Under a going concern restructuring scenario,
Fitch has stressed its projected FY19 EBITDA of EUR167 million to
derive a post-restructuring EBITDA of EUR125 million.

Fitch has applied a distressed enterprise value (EV) multiple of
5.5x, which reflects a significant discount from the EV multiple
paid for Megadyne and the current trading multiple of peers
including Forbo, Rexnord and Gates (all ranging from 11x to 13x).
Assuming some EUR14 million of local debt with non-guarantor
group entities ranks super-senior to the TLB, and assuming the
RCF is fully drawn as per its criteria, the recovery rate
estimate for the TLB is 60%, which translates into a 'B+'/RR3
rating for that instrument.

RATING SENSITIVITIES

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

Planned synergies achieved and retained within the group, with
commitment to de-leverage such that:

  - FFO gross leverage is below 5.0x on a sustained basis.

  - EBITDA margin above 20% on a sustained basis.

  - FFO fixed-charge cover above 2.5x on a sustained basis.

  - FCF above 5% of sales on a sustained basis.

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

  - FFO gross leverage greater than 7.0x on a sustained basis.

  - FFO-based fixed-charge cover below 2.0x on a sustained basis.

  - EBITDA margin below 15% on a sustained basis.

  - Neutral to negative FCF on a sustained basis.

  - Debt-funded acquisition activity increasing the risk profile
of the group.

LIQUIDITY

Long-Dated Capital Structure: The issuer has raised a EUR830
million seven-year senior secured covenant-lite TLB and euro-
equivalent 160 million (USD186 million) eight-year second-lien
facility. The TLB has guarantors constituting around 63% of group
EBITDA, which is weak compared with market standards. At closing,
cash is expected to be EUR45 million (of which jurisdiction-
related restricted cash is EUR21 million). Management expects the
6.5-year EUR150 million RCF to be largely undrawn, although it
could be used to fund acquisitions. The RCF may also be used to
refinance local debt of EUR35 million with various group entities
that will exist at closing

FULL LIST OF RATING ACTIONS

Alpha AB Bidco BV

  - Long-Term IDR: assigned at 'B'/Stable

  - The Expected Senior Loan Long-Term Rating of
'B+(EXP)'/'RR3'/60% is now final and applied to the EUR830
million TLB but withdrawn from the EUR150 million RCF (as this
rating is no longer required)

  - EUR830 million TLB: assigned at 'B+'/'RR3'/60%

  - EUR150 million RCF, rating withdrawn.


JUBILEE CLO 2014-XIV: Moody's Affirms B2 Class F Notes Rating
-------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the
following notes issued by Jubilee CLO 2014-XIV B.V.:

EUR 51,200,000 Class B-1-R Senior Secured Floating Rate Notes due
2028, Upgraded to Aa1 (sf); previously on Jul 17, 2017 Assigned
Aa2 (sf)

EUR 12,800,000 Class B-2-R Senior Secured Fixed Rate Notes due
2028, Upgraded to Aa1 (sf); previously on Jul 17, 2017 Assigned
Aa2 (sf)

Moody's has also affirmed the ratings on the following notes:

EUR 319,500,000 Class A-1-R Senior Secured Floating Rate Notes
due 2028, Affirmed Aaa (sf); previously on Jul 17, 2017 Assigned
Aaa (sf)

EUR 5,000,000 Class A-2-R Senior Secured Fixed Rate Notes due
2028, Affirmed Aaa (sf); previously on Jul 17, 2017 Assigned Aaa
(sf)

EUR 34,400,000 Class C-R Deferrable Mezzanine Floating Rate Notes
due 2028, Affirmed A2 (sf); previously on Jul 17, 2017 Assigned
A2 (sf)

EUR 28,400,000 Class D-R Deferrable Mezzanine Floating Rate Notes
due 2028, Affirmed Baa2 (sf); previously on Jul 17, 2017 Assigned
Baa2 (sf)

EUR 38,500,000 Class E Deferrable Junior Floating Rate Notes due
2028, Affirmed Ba2 (sf); previously on Jul 17, 2017 Affirmed Ba2
(sf)

EUR 18,900,000 Class F Deferrable Junior Floating Rate Notes due
2028, Affirmed B2 (sf); previously on Jul 17, 2017 Affirmed B2
(sf)

Jubilee CLO 2014-XIV B.V., issued in September 2014 is a
collateralised loan obligation backed by a portfolio of mostly
high-yield senior secured European loans. The transaction was
refinanced in July 2017. The portfolio is managed by Alcentra
Limited. The transaction's reinvestment period will end in
January 2019.

RATINGS RATIONALE

The rating actions on the notes are primarily a result of the
benefit of the shorter period of time remaining before the end of
the reinvestment period in January 2019.

In light of reinvestment restrictions during the amortisation
period, and therefore the limited ability to effect significant
changes to the current collateral pool, Moody's analysed the deal
assuming a higher likelihood that the collateral pool
characteristics would maintain an adequate buffer relative to
certain covenant requirements.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analysed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR 540.42
million, defaulted par of EUR 9.97 million, a weighted average
default probability of 22.60% (consistent with a WARF of 2927
over a WAL of 5.09), a weighted average recovery rate upon
default of 44.51% for a Aaa liability target rating, a diversity
score of 48 and a weighted average spread of 4.04%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. In each case, historical and market
performance and a collateral manager's latitude to trade
collateral are also relevant factors. Moody's incorporates these
default and recovery characteristics of the collateral pool into
its cash flow model analysis, subjecting them to stresses as a
function of the target rating of each CLO liability it is
analysing.

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:

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of uncertainty about credit conditions in the
general economy. CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behaviour and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties because of embedded ambiguities.

  - Weighted average life: The notes' ratings are sensitive to
the weighted average life assumption of the portfolio, which
could lengthen as a result of the manager's decision to reinvest
in new issue loans or other loans with longer maturities, or
participate in amend-to-extend offerings. The effect on the
ratings of extending the portfolio's weighted average life can be
positive or negative depending on the notes' seniority.

  - Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's over-
collateralisation levels. Further, the timing of recoveries and
the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's
analysed defaulted recoveries assuming the lower of the market
price or the recovery rate to account for potential volatility in
market prices. Recoveries higher than Moody's expectations would
have a positive impact on the notes' ratings.

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.


* NETHERLANDS: Corporate Bankruptcies Up to 306 in October 2018
---------------------------------------------------------------
Statistics Netherlands reports that the number of corporate
bankruptcies has increased, according to Statistics Netherlands
(CBS).

According to Statistics Netherlands, there were 40 more
bankruptcies in October 2018 than in the previous month.  In
September, the number of bankruptcies reached the lowest level
since 2001, Statistics Netherlands states.  However, the trend
has been fairly flat for over a year, Statistics Netherlands
notes.

If the number of court session days is not taken into account,
306 businesses and institutions (excluding one-man businesses)
were declared bankrupt in October 2018, Statistics Netherlands
relates. With a total of 70, the trade sector suffered most,
Statistics Netherlands discloses.

In October, the number of bankruptcies was relatively highest in
the sector accommodation and food services, according to
Statistics Netherlands.


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


POLYUS PJSC: S&P Raises Long-Term Issuer Credit Rating to BB
------------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit rating on
Russia-based gold miner Polyus PJSC (the company) to 'BB' from
'BB-'. The outlook is stable.

S&P also raised to 'BB' from 'BB-' its issue rating on the senior
unsecured debt issued by Polyus Finance PLC.

The upgrade reflects a combination of Polyus' strengthening
credit metrics, successful ramp-up of the company's key project,
Natalka, and S&P's expectation that the company will continue to
adhere to the moderate financial policy that it announced in
2016 -- notably in regards to shareholder distributions.

Polyus has heavily invested in organic growth in the recent
years, notably in the Natalka project, which should provide
sustainable growth in gold output from the second half of 2018.
S&P anticipates that the company will achieve its target
production level of 2.8 million ounces by 2019 and maintain it
thereafter. This view is underpinned by strong performance in the
third quarter (Q3) of 2018, when Polyus' quarter-on-quarter gold
output increased by 15% to 691 thousand ounces, leading to
improved earnings and metrics. The rolling 12 month EBITDA
reached a record-high $1.8 billion (from $1.67 billion in 2017),
with RTM funds from operations (FFO) to debt of 39% and debt to
EBITDA of 1.8x (from 33% and 2.0x in 2017, respectively). S&P
said, "In our base-case, we assume further credit metric
improvement in 2019, with FFO to debt closer to 45%, supplemented
by consistently positive free operating cash flow (FOCF)
generation of about $700 million in 2019. We think these stronger
financial metrics, combined with operating costs below those of
most global peers, would allow the company to better withstand
gold price and local currency volatility. In addition, the
successful ramp-up of a project as complex and large-scale as
Natalka significantly reduces the risks of overruns or completion
delays related to the company's capital expenditure (capex). This
is because investment projects in 2019-2021 are much smaller in
scale, and we do not expect Polyus will start its massive
investment in a new, large-scale project--Sukhoy Log--until
2021."

The upgrade also reflects the company's positive financial policy
track record in the past two years. Historically, S&P has seen
very high risk of extraordinary shareholder distributions and
releveraging following Mr. Said Kerimov's debt-financed
acquisition of Polyus in November 2015. While S&P still has only
limited visibility on debt at the shareholder level, it believes
the risk of aggressive shareholder distributions has fallen
because of:

-- The consistent implementation of flexible dividend policy
    adopted in 2016 (envisaging a payout of 30% of EBITDA if net
    debt to EBITDA is lower than 2.5x, or a payout amount at the
    discretion of the board of directors if leverage is higher
    than 2.5x);

-- The completed secondary public offering in July 2017, of
    which Polyus used about $400 million  to reduce debt; and

-- No significant noncore investments or merger and acquisition
    activities.

S&P therefore only lower the rating by one notch for financial
policy risks compared to two previously.

The company has a solid market position as the eighth-largest
gold producer globally by output and second-largest by reserves
(based on Joint Ore Reserves Committee estimates). It boasts a
long reserve life of more than 30 years and low production costs.
Polyus' exposure to a single commodity and high country risk in
Russia, where the company's operating assets are located,
mitigate these positive factors. S&P said, "We assess Polyus'
business risk as fair, which is similar to our assessment of many
of Polyus' Russia-based peers in the metals sector that are also
global cost leaders for their respective metals. We see as a
strength that Polyus has lower exposure to the Russian macro
environment compared to steel producers -- notably Evraz Group
S.A., PAO Severstal, and NLMK PJSC, which sell a 40%-60% share of
output domestically." That said, Polyus does not benefit from the
product diversification of Norilsk Nickel.

S&P said, "The stable outlook on Polyus reflects our view that,
thanks to increasing gold production in 2018-2019 and maintained
low operating costs, the company will balance the risks related
to still high investments in the next two years and the inherent
volatility of gold industry. We incorporate in our base case a
gold output increase to 2.4 million ounces in 2018 and 2.8
million ounces in 2019-2020 (from 2.16 million ounces in 2017)
and a stable gold price of $1,250/oz in those years. We think
these drivers will translate into strong FOCF generation of about
$700 million in 2019, while Polyus will carry out shareholder
distributions in line with the announced policy of 30% of EBITDA
payout. We think this will help the company to improve and
maintain solid credit metrics, notably FFO to debt close to 45%
in the next two years.

"Although not expected in the next 12 months, we could raise the
rating on Polyus if the company were able to reduce debt--for
example, as a result of prices well above our base-case
assumptions--with FFO to debt exceeding 60%.

"In the current mild industry environment with a gold price of
about $1,250/oz, we could lower the rating if the company
increased capex or dividend distributions, leading to higher debt
and a weakening of FFO to debt toward the low end of the 30%-45%
range with no expectations for recovery.

"In the event of industry-wide cyclical downturn with a gold
price substantially below our $1,250/oz guidance, we would likely
downgrade Polyus if FFO to debt were to drop below 30%."


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


TURKEY: Companies Under Bankruptcy Protection Reach 356
-------------------------------------------------------
Ahval, citing Diken news site, reports that Turkish Trade
Minister Ruhsar Pekcan announced that the official number of
companies under bankruptcy protection was 356.

According to Ahval, Mr. Pekcan said in Istanbul, 132 companies
have been granted bankruptcy protection.  He told the Turkish
Parliament's Planning and Budget Commission that the government
had been working on a measure that would protect both debtors and
creditors.

The number of Turkish companies applying for bankruptcy
protection has increased in recent months, as the private sector
has been facing cash flow problems due to lira dropping by almost
40 percent again the dollar this year, Ahval discloses.

HabertÅrk reported on Nov. 8 that the total amount of debts of
Turkish private companies postponed by banks over the past three
month under bankruptcy protection has reached more than TRY15
billion (US$2.7 billion), Ahval relates.


=============
U K R A I N E
=============


MRIYA AGROHOLDING: Former Owner Extradited to Ukraine
-----------------------------------------------------
Bermet Talant at Kyiv Post reports that on the same day
Saudi Agricultural and Livestock Investment Company completed the
acquisition of Mriya agroholding in Ukraine, the agroholding's
fugitive former co-owner Mykola Huta was extradited to Ukraine.

Mr. Huta is accused of defrauding Mriya for over US$100 million,
Kyiv Post discloses.

According to Kyiv Post, the Deputy Prosecutor General Yevhen
Yenin wrote on Facebook that Switzerland handed over Huta, who
had been on Interpol's wanted list for large-scale fraud, to
Ukrainian law enforcers on Nov. 5.

Once listed on Frankfurt Stock Exchange, Mriya defaulted in 2014
after it had failed to make its bonds interest payments, Kyiv
Post recounts.  The Huta family -- founders Ivan and Klavdiya and
their sons Mykola, CEO, and Andriy, member of board, -- fled
Ukraine having stolen over US$100 million of investors' money,
Kyiv Post relates.

The 2012 audit by the Ukrainian investment house Millennium
Capital warned that the company had cooked its books using
inflated production volumes, questionable deals on land lease
rights at unreasonably high prices, and undisclosed third party
transactions, Kyiv Post states.

After the default, foreign creditors, including banks BNP Paribas
SA, Credit Agricole SA, and UniCredit SpA, took over the
ownership, appointed a new management team, and saved the company
from bankruptcy, Kyiv Post relays.  In August, Mriya finished
restructuring its US$1.1 billion debt and was eventually sold to
the Saudis, Kyiv Post notes.


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


ATLANTICA YIELD: Fitch Rates Senior Unsecured Notes 'BB+'
---------------------------------------------------------
Fitch Ratings has assigned a 'BB+'/'RR2' rating to Atlantica
Yield plc's (AY) proposed issuance of senior unsecured notes due
2026. The 'RR2' Recovery Rating denotes superior recovery in the
event of default. The net proceeds from the issuance will be used
to repay the outstanding $255 million senior unsecured notes due
2019. Fitch's existing Long-Term Issuer Default Rating (IDR) for
AY is 'BB' with a Stable Rating Outlook.

The 'BB' IDR for AY reflects the relatively stable and
predictable nature of cash flows generated from a portfolio of 22
assets that are diversified with respect to geographical exposure
and asset class. The projected cash distributions to the Holdco
from the project subsidiaries are split as approximately 73% from
renewable assets, 16% from an efficient natural gas plant, 8%
from transmission lines and the remaining 3% from water assets,
based upon projections over the next three years without
including the most recently announced acquisitions.
Geographically, the projected cash distributions from the
projects are split as 35% from North America, 45% from Europe, 9%
from South America and 11% from rest of the world. All of AY's
assets are either long-term contracted with creditworthy
counterparties or regulated (in the case of the Spanish solar
assets) with minimal commodity risk. AY's ratings also take into
account the structural subordination of the Holdco debt to the
substantial amount of project debt at the non-recourse project
subsidiaries and management's commitment to maintain the net
Holdco leverage ratio at 3.0x or below. The amortizing nature of
debt at AY's project subsidiaries allows for accretion of
residual value to the Holdco in a 'run-off' scenario.

KEY RATING DRIVERS

Contractual Cash Flows and Asset Diversity: AY's existing
portfolio of assets produce stable cash flows underpinned by
long-term contracts (weighted average contract life of 19 years
remaining as of Dec. 31, 2017) with creditworthy counterparties.
A majority of the counterparties have strong investment-grade
ratings based on Fitch's and other publically available ratings.
The contracts are typically fixed price with annual escalation
mechanisms. AY's portfolio does not bear material resource
availability risk. Approximately 70% of project distributions to
the Holdco are generated from solar projects; solar resource
availability has typically been strong and predictable. Fitch
views AY's low exposure to wind favorably as wind resource
typically exhibits high resource variability. With the exception
of the Solana and Kaxu solar projects, which have experienced
equipment related and other issues, the rest of the portfolio has
been performing well.

Conservative Financial Policy: A majority of debt at AY consists
of non-recourse project debt held at ring-fenced project
subsidiaries. The distribution test in project finance agreements
is typically set at a Debt Service Coverage Ratio (DSCR) of
1.10x-1.25x. As of Dec. 31, 2017, all the projects were
performing well in excess of their required DSCRs, with the
exception of Solana and Kaxu solar projects. The project debt is
typically long-term and self-amortizing with a term that is
shorter than the duration of the contracts. More than 90% of the
long-term interest exposure is either fixed or hedged mitigating
any impact in a rising interest rate environment. Approximately
90% of the cash available for distribution (CAFD) is in USD or
Euros and AY typically hedges its Euro exposure on a rolling
basis. At the Holdco level, the net leverage ratio (Net Corporate
Debt/CAFD pre corporate debt service) stood at 2.3x as of Sept.
30, 2018, well within management's stated target of less than
3.0x. Management's commitment to maintain the net leverage ratio
to below 3.0x is a key factor underpinning AY's 'BB' rating and
Stable Outlook. AY is performing well within its maintenance
covenants under its revolver and note issuance facility that
require a leverage ratio of 5.00x (maintenance covenant for the
note issuance facility steps down to 4.75x on and after Jan. 1,
2020) and interest coverage ratio of 2.00x.

Ownership Uncertainty Resolved: AY's ownership change to
Algonquin Power & Utilities Corp. (Algonquin, BBB/Stable Outlook)
from Abengoa is a significant positive development, in Fitch's
opinion. Algonquin completed the acquisition of 25% ownership
interest in AY from Abengoa in March and its purchase of an
additional 16.47% ownership interest in AY is pending approvals,
including approval from the U.S. Department of Energy (DOE).
Abengoa has obtained consents from its creditors to close the
sale of the remaining 16.47% ownership interest in AY. Ownership
by an investment-grade sponsor with proven asset development
expertise eases Fitch's concern surrounding access to capital for
new projects and lends greater visibility to AY's growth plan.
Under a new joint venture between Abengoa and Algonquin called
AAGES, contracted assets will be developed and offered to AY
under a new Right of First Offer (ROFO) agreement. AY expects
$600 million-$800 million of projects to be offered over the next
two to three years through a ROFO agreement with Abengoa and
subsequently $200 million of assets to be offered through AAGES
ROFO annually. In addition, Algonquin has agreed to invest $100
million of incremental equity in AY for the acquisition of new
assets in 2018 and 2019 and could participate in future equity
offerings with potentially increasing its ownership interest in
AY to 46% on a temporary basis.

New Acquisitions Announced: Concurrent with its third quarter
earnings call, management announced planned acquisitions of
transmission assets in Peru and Chile, a natural gas
transportation asset in Mexico and 51% stake in a water
desalination plant in Algeria. The cumulative purchase price of
$245 million implies an attractive transaction value to EBITDA
multiple of approximately 8.3x and CAFD yield of 13%. All the
assets to be acquired have long-term U.S. dollar denominated
contracts with credit worthy off-takers and are located in
countries where AY is already present. The acquisition of the
natural gas transportation asset in Mexico is by far the largest
acquisition, at a purchase price of $150 million. The project is
under construction and is expected to be commissioned in late
2019/ early 2020. It has an 11-year take or pay contract with
Pemex (BBB+/Negative). AY plans to fund the purchase with cash on
hand and revolver draws.

Pending Change to Spanish Regulatory Framework: AY has a large
portfolio of solar assets in Spain that represent approximately
40% of its total power generation portfolio. Fitch views Spain's
regulatory framework for solar plants as relatively supportive
since a majority of project revenues come from a return on
investment component or capacity payments (70%-75%), with the
remaining components being a regulated return on operations and
sale of electricity at market prices. The capacity payments in
addition to the other two components are designed to guarantee a
7.4% pre-tax IRR on investment. The framework limits a power
provider's volumetric and commodity risks and provides cash flow
visibility since the adjustments to the IRR takes place every six
years. It is likely that the regulatory IRR currently set at 7.4%
will be reduced at the end of 2019 for the next six-year
regulatory period. Every 100-basis-point reduction in the IRR
negatively affects the cash distribution from AY's Spanish solar
assets by EUR18 million. The Spanish regulator has proposed an
IRR of 7.09% as part of their final recommendations, which is
favorable compared to Fitch's expectations. In addition,
management's commitment to maintain net Holdco leverage to below
3.0x mitigates the credit impact of a steeper than expected cut.

Operating Issues with Two Assets: AY has faced technical issues
with Kaxu and Solana solar projects, a credit concern. Kaxu had a
reduced production during 2017 due to technical problems with
water pumps and heat exchangers. However, the plant has operated
well in 4Q17 as well as year-to-date. Separately, Solana has
still not reached its initial production volumes. There were
interruptions to operations in 2017 due to transformer failure
following interruptions in 2016 from a wind event. Fitch's
projections assume modest CAFD contribution from Solana over the
forecast period.

Flexibility to Grow Distributions: The announced acquisitions
provide visibility to AY's public guidance of achieving 8%-10%
distribution per share growth rate over 2017-2022. AY also has
other levers to drive distribution growth, which include
increasing the distribution payout ratio to 80%, improved
operational performance at Kaxu and Solana solar projects,
pricing indexation built in contractual agreements and
refinancing of debt at potentially lower interest rates.
Corporate cash on hand of $135.1 million as of Sept. 30, 2018 and
available revolver capacity of $155 million under the revolver
will be used to finance the recently announced acquisitions, In
addition, available debt capacity (2.3x net leverage ratio as of
Sept. 30, 2018 versus management target of less than 3.0x), 20%
of retained CAFD, and $100 million equity commitment from
Algonquin for new projects in 2018 and 2019 provides financial
flexibility to AY to finance any potential asset acquisitions
without the need to issue any other incremental equity for at
least two years, in Fitch's opinion.

Recovery Ratings: Fitch does not undertake a bespoke recovery
analysis for issuers with IDRs in the 'BB' rating category.
Nevertheless, Fitch has assigned an 'RR2' Recovery Rating to the
senior secured debt using market transaction multiples of 9.0x-
11.0x Enterprise value to EBITDA or a CAFD yield of 7%-9% for
contracted renewable assets and given the modest amount of
secured debt at the Holdco level and Fitch's expectation that
management will continue to move toward an unsecured capital
structure.

DERIVATION SUMMARY

Fitch views AY's portfolio of assets as favorably positioned
compared to those of NextEra Energy Partners (NEP, BB+/Stable)
and Terraform Power (TERP, BB-/Stable), owing to AY's large
concentration of solar generation assets (approximately 77% of
power generation capacity) that exhibit less resource
variability. In comparison, NEP's portfolio consists of a large
proportion of wind projects (approximately 84% of total MWs).
NEP's high concentration in wind is mitigated to a certain extent
by its diverse geographic footprint in the U.S. Pro forma for the
Saeta Yield acquisition, TERP's portfolio consists of 36% solar
and 64% wind projects. Fitch views NEP's geographic exposure in
the U.S. (100% of MWs) favorably as compared to TERP's (64%) and
AY's (35%). Both AY and TERP have exposure to potential adverse
changes to Spanish regulatory framework for renewable assets. In
terms of total MWs, approximately 40% of AY's power generation
portfolio is in Spain compared to 29% for TERP.

AY's credit metrics are significantly stronger than those of TERP
and NEP. AY's willingness to maintain its creditworthiness was
demonstrated in 2016 when it suspended distributions for two
consecutive quarters following the financial restructuring of its
prior parent, Abengoa. Fitch forecasts AY's gross leverage ratio
(Holdco debt to CAFD) to be low 3x compared to high 4.0x for NEP
and mid to high 5.0x for TERP.

NEP's ratings benefit from a strong sponsor, NextEra Energy, Inc.
(NextEra, A-/Stable), which owns approximately 65% of the limited
partner interest in NEP. NextEra has demonstrated sponsor support
in various forms including structural modification of the
Incentive Distribution Rights fee structure, financial management
services agreement and other services agreements and access to
its development pipeline through a ROFO agreement. This provides
visibility to NEP's distribution per share growth targets, which
at 12%-15% are more aggressive than those of AY (8%-10%) and TERP
(5%-8%). TERP's sponsor, Brookfield Asset Management (BAM, not
rated), has also demonstrated strong support for TERP by
providing $650 million equity to finance the acquisition of Saeta
Yield, thereby taking its ownership interest to 65%. In addition,
BAM has committed to support TERP through key agreements
including management services agreement, access to a 3,500 MW
ROFO portfolio consisting of operating wind and solar assets, and
a $500 million four-year secured credit facility at TERP for
acquisitions. The support of AY's new sponsor, Algonquin, is
currently untested. AY continues to work with AAGES on project
development opportunities and recently announced its first
acquisition from AAGES.

Fitch rates AY, NEP and TERP based on a deconsolidated approach
since their portfolio comprises assets financed using non-
recourse project debt or with tax equity. Fitch's Renewable
Energy Project Rating Criteria uses one-year P90 as the starting
point in determining its rating case production assumption.
However, Fitch has used P50 to determine its rating case
production assumption for AY, NEP and TERP since they own a
diversified portfolio of operational wind and solar generation
assets. Fitch believes asset and geographic diversity reduces the
impact that a poor wind or solar resource could have on the
distribution from a single project. Fitch has used P90 to
determine its stress case production assumption. If volatility of
natural resources and uncertainty in the production forecast is
high based on operational history and observable factors, a more
conservative probability of exceedance scenario may be applied in
the future.

KEY ASSUMPTIONS

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

  -- P50 scenario used for rating case solar and wind production
assumption;

  -- Acquisition of operational, contracted assets over 2018-2022
to meet 8%-10% distribution per share growth;

  -- Acquisition CAFD yield of 8%;

  -- Target payout ratio 80% of CAFD reached by 4Q18;

  -- Acquisitions financed with cash on hand, debt and equity
such that target capital structure is maintained;

  -- Reduction in IRR for Spanish renewable assets beginning
Jan. 1, 2020.

RATING SENSITIVITIES

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

  -- Regulatory return in Spain maintained at or close to current
levels;

  -- Stabilization of operating performance at the Kaxu and
Solana projects;

  -- Visibility on acquisitions and distribution per share
growth.

Fitch typically caps the IDRs of Yieldcos at 'BB+' given the
structural subordination of the Holdco debt to the project debt
that is sized for a low- to mid-'BBB' rating and distribution of
a substantial portion of cash available for distribution to its
equity holders.

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

  -- Material reduction to the IRR for the Spanish renewable
assets that cause the projects to curtail or stop the
distributions to the Holdco;

  -- Growth strategy underpinned by aggressive acquisitions
and/or addition of assets in the portfolio that bear material
volumetric, commodity, counterparty or interest rate risks;

  -- Material underperformance in the underlying assets that
lends variability or shortfall to expected project distributions;

  -- Lack of access to equity markets to fund growth that may
lead AY to deviate from its target capital structure;

  -- Holdco leverage ratio exceeding 4.0x on a sustainable basis.

LIQUIDITY

Fitch views AY's liquidity has adequate. AY has recently
refinanced its $125 million revolving credit facility (due
December 2018) into a new $215 million facility that will mature
in December 2021. An expanded revolver provides financial
flexibility to AY to finance acquisitions of assets before
permanent financing is put in place. As of Sept. 30, 2018,
corporate cash on hand was $135.1 million and availability under
the revolver was $155 million.


CO-OPERATIVE BANK: Fitch Withdraws 'B' EMTN Programme Ratings
-------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn the long- and short-term
ratings on The Co-operative Bank p.l.c.'s (B/Stable/b) senior
unsecured GBP4 billion EMTN programme.

The withdrawal of the programme's ratings is for commercial
reasons. There are no outstanding issues under this programme.

The Co-operative Bank's other ratings are unaffected by this
rating action.

KEY RATING DRIVERS

Prior to withdrawal the programme's long- and short-term ratings
were affirmed in line with Co-operative Bank's Issuer Default
Ratings, reflecting Fitch's expectations of average recovery
prospects (Recovery Rating of 'RR4') for senior debt holders in
the event of default or resolution.

RATING SENSITIVITIES

Not applicable.

The rating actions are as follows:

Senior unsecured programme's long-term rating: affirmed at
'B'/'RR4' and withdrawn

Senior unsecured programme's short-term rating: affirmed at 'B'
and withdrawn


INTERSERVE PLC: Denies Crisis Rumors Amid Financial Woes
--------------------------------------------------------
Jack Torrance at The Telegraph reports that Interserve's shares
endured a rollercoaster ride on Tuesday, Nov. 13, as the ailing
outsourcer sought to play down speculation it was on the verge of
financial peril.

According to The Telegraph, shares in the contractor, whose
operations range from cleaning and catering to construction,
tanked as much as 30% on Nov. 13 following a 10% drop the day
before, amid reports it was facing fresh difficulties.

A major government contractor, Interserve has attracted
unfavorable comparisons with Carillion, which plunged into
liquidation following a cash crunch in January, as it struggled
to raise money to offset spiralling costs, The Telegraph
discloses.

Interserve plc is one of the biggest private contractors,
providing security, probation, healthcare and construction
services.  It employs 80,000 people, including 25,000 in the UK,
and also cleans the London Underground and manages army barracks.


NEST INVESTMENTS: Moody's Lowers Long-Term Issuer Ratings to Ba3
----------------------------------------------------------------
Moody's Investors Service has downgraded to Ba3 from Ba2 the
long-term issuer ratings of Nest Investments (Holdings) Limited
(NIH) and placed the ratings under review for further downgrade.

RATINGS RATIONALE

The rating downgrade follows the extended delay in publishing
year-end 2017 audited financial statements of NIH, due to delayed
publication of financial statements for its main reinsurance
subsidiary, Bahrain based Trust Re, as well as ongoing regulatory
reviews at Trust Re. The action reflects the expected negative
impact of the aforementioned events on the group's operating
performance and financial flexibility.

Moody's also placed the Ba3 rating under review for downgrade to
reflect the uncertainty around the group's financial performance
in 2017, in the absence of audited financial statements. Moody's
stated that its review will focus on the group's 2017 and 2018
operating performance and financial position, along with the
outcome of regulatory reviews of the group's business. Conclusion
of the review is contingent on receipt of the group's 2017
audited financial statements.

NIH is a Jersey-based holding company whose subsidiaries write
P&C reinsurance, mostly via Trust Re and, to a lesser extent, P&C
insurance with overall premiums of $613 million in 2016. The
group also consists of real estate, banking and service license
operations in its main regions of Middle East and North Africa,
Europe and Asia.

RATING DRIVERS

Given the review for downgrade, there is limited upward pressure
on the rating. The following factors could lead Moody's to affirm
the rating at its current level: (i) the publication of audited
results confirming positive financial performance and within
Moody's expected ranges at NIH's current rating level, and (ii)
evidence that potential negative pressure on the NIH's brand and
reputation, as well as on Trust Re's franchise, is contained,
with minimal impact on the future group performance and financial
flexibility.

Conversely, the group's rating could be further downgraded if
there is (i) a deterioration in its main subsidiaries' ability to
maintain its market position profitably; and/or (ii) a
deterioration in its profitability with COR consistently above
100% or negative ROC; and/or (iii) an erosion in capital and/or a
loss of A-rated reinsurance protection; and/or (iv) a
deterioration in asset quality with further significant
investments in HRA, resulting in a HRA as a percentage of
shareholders' equity of over 150%; and/or (v) increased borrowing
with leverage rising above 25% and/or deterioration in cash flow
coverage; and/or (vi) a significant deterioration in its main
operating markets' sovereign rating and economic environment.

AFFECTED RATINGS

Issuer: Nest Investments (Holdings) Limited

The following ratings have been downgraded and placed under
review for downgrade:

Long-term issuer ratings, downgraded to Ba3 from Ba2

Outlook Action:

Outlook changed to Rating under Review from Stable


PRINCIPAL METHODOLOGY

The methodologies used in these ratings were Reinsurers published
in May 2018, and Property and Casualty Insurers published in May
2018.


RESIDENTIAL MORTGAGE 31: S&P Gives 'BB' Rating to F1-Dfrd Notes
---------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
Residential Mortgage Securities 31 PLC's (RMS 31) class A,
B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, F1-Dfrd, and X1-Dfrd notes. S&P's
preliminary ratings address the timely receipt of interest and
the ultimate repayment of principal on the class A notes, and the
ultimate payment of interest and principal on the other rated
classes of notes. At closing, RMS 31 will also issue unrated
class F2, F3, X2, and Z notes.

RMS 31 is a securitization of a pool of buy-to-let and owner-
occupied residential mortgage loans, to nonconforming borrowers,
secured on properties in England, Scotland, Wales and Northern
Ireland.

The collateral pool comprises seasoned loans from a number of
originators including Southern Pacific Mortgages Ltd. (48.00%),
Preferred Mortgages Ltd. (35.5%), and London Mortgage Company Ltd
(13.16%). At closing, the issuer will purchase the portfolio from
the seller (Kayl PL S.a.r.l.) and will obtain the beneficial
title to the mortgage loans. The majority (71.48%) of the initial
pool was previously securitized in transactions, which S&P rated.
These transactions have already redeemed.

At closing, the issuer will use the proceeds from the class Z
notes to fund the general reserve fund at 3.0% of the class A to
F3 notes' balance. The target balance of the general reserve fund
remains 3.0% of the class A to F3 notes' closing balance until
the class A to F2 notes are fully redeemed. Thereafter, the
general reserve fund target amount is zero.

There will also be a liquidity reserve, which will be funded from
principal receipts if the general reserve fund amounts fall below
1.5% of the outstanding balance of the class A to F3 notes. The
required balance of the liquidity reserve is 2% of the class A
notes and amortizes in line with the class A notes. Funding the
liquidity reserve is not a debit on the principal deficiency
ledger (PDL). However, using the liquidity reserve to pay senior
fees or the class A notes' interest would cause a debit to the
PDL.

The notes' interest rate is based on an index of three-month
LIBOR. Within the mortgage pool, all but a handful of the loans
are linked to the Bank of England base rate (BBR) or three-month
LIBOR. There is no swap in the transaction to cover the interest
rate mismatches between the assets and liabilities.

KMC will act as the mortgage administrator for all of the loans
in the transaction.

The class X1-Dfrd notes are not supported by any subordination or
the general reserve fund. S&P said, "In our analysis, the class
X1-Dfrd notes are unable to withstand the stresses we apply at
our 'B' rating level. Consequently, we consider that there is a
one-in-two chance of a default on the class X1-Dfrd notes and
that these notes are reliant upon favorable business conditions
to redeem."

S&P said, "Our preliminary ratings reflect our assessment of the
transaction's payment structure, cash flow mechanics, and the
results of our cash flow analysis to assess whether the rated
notes would be repaid under stress test scenarios. Subordination
and the reserve fund provide credit enhancement to the notes.
Taking these factors into account, we consider the available
credit enhancement for the rated notes to be commensurate with
the ratings that we have assigned."

  PRELIMINARY RATINGS ASSIGNED

  Residential Mortgage Securities 31 PLC

  Class         Rating            Amount
                                 (mil. ú)

  A             AAA (sf)          TBD
  B- Dfrd       AA+ (sf)          TBD
  C- Dfrd       AA (sf)           TBD
  D- Dfrd       A+ (sf)           TBD
  E- Dfrd       BBB+ (sf)         TBD
  F1-Dfrd       BB (sf)           TBD
  F2            NR                TBD
  F3            NR                TBD
  X1-Dfrd       CCC (sf)          TBD
  X2            NR                TBD
  Z             NR                TBD
  NR--Not rated.
  TBD--To be determined.



                            *********

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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written permission of the publishers.

Information contained herein is obtained from sources believed to
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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,
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