/raid1/www/Hosts/bankrupt/TCREUR_Public/181130.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Friday, November 30, 2018, Vol. 19, No. 238


                            Headlines


B E L G I U M

NYRSTAR: S&P Affirms 'CCC+' Issuer Credit Rating, Outlook Neg.
SOLVAY SA: S&P Assigns 'BB+' Rating to New Sub. Hybrid Security


F R A N C E

PHOTONIS TECHNOLOGIES: S&P Lowers ICR to 'CCC', Outlook Negative


G E O R G I A

GEORGIAN RAILWAY: Fitch Corrects November 22 Rating Release


G E R M A N Y

SENVION SA: Moody's Affirms B2 CFR, Alters Outlook to Negative


G R E E C E

PUBLIC POWER: S&P Raises Long-Term ICR to 'CCC+', Outlook Pos.


I C E L A N D

WOW AIR: Icelandair Group Abandons Plan to Buy Rival Airline


I R E L A N D

ARROW CMBS 2018: DBRS Finalizes BB(low) Rating on Class F Notes
DILOSK RMBS No. 2: DBRS Finalizes BB Rating on Class F Notes


I T A L Y

FINO 1 SEC: DBRS Confirms BB Rating on Class C Notes


L U X E M B O U R G

ALGECO GLOBAL: Fitch Affirms 'B' LT IDR, Alters Outlook to Neg.
ALGECO INVESTMENTS: S&P Places 'B-' ICR on CreditWatch Negative


M A C E D O N I A

TOPLIFIKACIJA AD: Shares Delisted Following Bankruptcy


N E T H E R L A N D S

BARINGS EURO 2018-3: Moody's Assigns (P)B2 Rating to Cl. F Notes


S P A I N

ABANCA CORPORACION: S&P Affirms 'BB+/B' ICRs, Outlook Stable
CAIXABANK PYMES 9: DBRS Confirms CCC Rating on Series B Notes
CAIXABANK PYMES 10: DBRS Puts Prov. CCC Rating to Series B Notes
CAIXABANK RMBS 3: DBRS Confirms CC Rating on Series B Notes
FTA SANTANDER 2014-1: DBRS Confirms C Rating on Class E Notes


S W E D E N

SBAB BANK: S&P Puts BB+ Tier I Instruments Rating on Watch Neg.


T U R K E Y

FRIGO-PAK: Istanbul Court Removes Trustee


U N I T E D   K I N G D O M

PATISSERIE VALERIE: Parent Firm in Talks to Replace Auditor
PINEWOOD GROUP: Fitch Corrects December 7, 2017 Press Release
TOWER BRIDGE: DBRS Confirms BB(high) Rating on Class E Notes
WELSH FOOD: Owes Nearly GBP17,000 to Pig Farmer
WILEYFOX: Closes Office in Netherlands After Administration


X X X X X X X X

* BOOK REVIEW: Competitive Strategy for Healthcare


                            *********



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B E L G I U M
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NYRSTAR: S&P Affirms 'CCC+' Issuer Credit Rating, Outlook Neg.
--------------------------------------------------------------
S&P Global Ratings said that it affirmed its 'CCC+' long-term
issuer credit rating on Belgian zinc producer Nyrstar N.V. The
outlook remains negative.

S&P said, "At the same time, we lowered to 'CCC-' from 'CCC' our
issue rating on Nyrstar's EUR500 million senior unsecured notes
due 2024 and EUR340 million senior unsecured notes due 2019. We
revised downward the recovery rating on these unsecured notes to
'6' from '5', indicating our expectation of negligible recovery
(0%-10%; rounded estimate: 5%) in the event of a payment
default."

The affirmation follows Nyrstar's announcement that its largest
shareholder, Trafigura, has provided it with a new $650 million
committed working capital facility maturing in June 2020. The
affirmation reflects S&P's view that while the new facility
alleviates some immediate liquidity concerns, it does not resolve
them completely. For example, Nyrstar still needs to address the
maturity of the EUR340 million notes in September 2019, and
cannot use the $650 million facility to repay them.

Nyrstar continues to work with its financial advisors on
different alternatives for a more sustainable capital structure.
With limited visibility on the outcome, S&P continues to see a
distressed exchange offer as possible, leading to a selective
default. Alternatives include extending the maturity date of the
EUR340 million notes without appropriate compensation to the
noteholders, or converting some of the debt to equity. Nyrstar's
reported gross debt on Sept. 30, 2018, was EUR1.2 billion, or
EUR1.9 billion on an S&P Global Ratings-adjusted basis.

S&P said, "Following Nyrstar's publication of its financial
results for the third quarter of 2018, we are revising downward
our projected EBITDA figures for 2018. We now expect adjusted
EBITDA of EUR180 million-EUR200 million in 2018, compared to the
EUR200 million-EUR220 million we expected in September 2018. In
addition, we now expect negative free operating cash flow (FOCF)
of around EUR150 million in 2018 compared to EUR120 million-
EUR140 million previously.

"For 2019, our base-case EBITDA and FOCF assumptions remain in
line with our previous expectations. We expect EBITDA to recover
to EUR300 million-EUR350 million and negative FOCF of EUR150
million-EUR200 million. The improvement in EBITDA reflects our
expectation of higher treatment charges, increasing volumes in
both mining and metals processing, and the successful ramp-up of
the Port Pirie project and the Myra Falls mine.

"The downward revision of our EBITDA assumption for this year
translates into adjusted debt to EBITDA of 9.5x-10.0x at year-end
2018, about one turn higher than our previous assumption. Our
forward-looking view of Nyrstar's capital structure being
sustainable reflects our expectation that the company will reduce
adjusted leverage to below 6.0x at year-end 2019."

In S&P's base case it assumes:

-- Zinc prices of $2,800 per ton (/ton) for the rest of 2018 and
    2019. The average zinc price in the first nine months of 2018
    was $2,893/ton and the spot price is around $2,450/ton. S&P
    understands that a 10% change in zinc prices will have an
    impact of about EUR70 million on EBITDA, before taking into
    account the company's current hedge position.

-- Benchmark zinc treatment charges of $147 per dry metric ton
    (/dmt) in 2018 compared with $172/dmt in 2017, increasing to
    $160/dmt in 2019. A 10% change in the benchmark treatment
    charges would affect EBITDA by about EUR20 million. Spot TCs
    on a CIF (cost, insurance, and freight) basis into the main
     Chinese ports have been rising rapidly since the middle of
     the year, reflecting an improvement in zinc concentrate
    availability. They reached over $150/t in October compared
    with around $35/t in June.

-- Zinc production in the metals processing division in line
     with the company's revised guidance of 1.07 million-1.09
     million kilotons (kt), from 1.05 million-1.1 million kt
     previously, and compared with 1.02 kt in 2017.

-- Average euro-to-U.S. dollar exchange rate of 1.18 in 2018 and
    1.19 in 2019, compared with the 1.14 current spot rate and
    1.19 in the first nine months of 2018. The company hedged its
    transactional euro-to-dollar exposure for the first half of
    2019 at an exchange rate of 1.18 and at 1.16 for the third
    quarter of 2019.

-- An EBITDA contribution from the Port Pirie project of EUR30
    million for 2018 and EUR90 million for 2019. The company
    expects that the contribution will increase to EUR130 million
    from 2020, after the project ramps up. S&P understands the
    project has been ramping up ahead of schedule, with no
    additional cost overruns to those in the February revised
    guidance.

-- A drop in the EBITDA contribution from the mining division to
    around EUR40 million in 2018 from EUR75 million previously,
    given the significantly weaker third-quarter result than it
     expected, and EUR100 million in 2019. This compares with
     EUR27 million in the first nine months of 2018, and assumes
     the successful ramp-up of production at the Middle Tennessee
     mine and the restart of the Myra Falls mine in line with
     company guidance.

-- Capital expenditure (capex) of EUR220 million-EUR240 million
    in 2018, tapering to EUR180 million-EUR200 million in 2019,
    both in line with the company's public guidance. (The company
    raised the upper end of the guidance by EUR20 million in the
    third-quarter results). Capex of EUR364 million in 2017
    included the completion of the Port Pirie project.

-- An inflow of working capital in 2018, supported by lower zinc
    prices and inventory optimization.

-- No dividends.

As of Sept. 30, 2018, Nyrstar reported gross debt of EUR1.2
billion, including bonds and working capital facilities. Our
adjusted debt measure of EUR1.9 billion also includes about
EUR290 million of prepays outstanding, EUR181 million of
perpetual securities, pension obligations, asset retirement
obligations, and factoring facilities and leases. That said, the
volatile nature of zinc prices may result in material working
capital outflows. For example, if zinc prices returned to their
level earlier this year, debt could increase by several hundred
million of euros.

S&P views as positive the relationship between Nyrstar and its
largest stakeholder Trafigura, even if it does not factor
explicit support into its liquidity analysis. Trafigura holds a
24.64% equity stake in Nyrstar, having fully supported Nyrstar's
February 2016 rights issue and 2017 private placement, and is an
important zinc offtaker. Trafigura continues to provide Nyrstar
with financing in the form of zinc prepay agreements and a short-
term committed undrawn $650 million working capital facility due
in June 2020. Trafigura has provided $30 million in funding for
$150 million of prepays and is offtaker for the zinc.

The negative outlook reflects the possibility of a downgrade in
the coming quarters if the undergoing capital structure review
resulted in a creditor-unfriendly outcome that qualified as a
distressed debt exchange.

S&P said, "Over the slightly longer term, we could consider a
downgrade if Nyrstar fails to address its weak liquidity after
the repayment of the EUR340 million notes due in September 2019.
While the new $650 million Trafigura facility that matures in
June 2020 should provide comfort over the short term, we do not
think that it fully resolves Nyrstar's liquidity situation.

"Under our base-case scenario, and as a result of the improvement
we expect in Nyrstar's results in 2019, currently we do not see
the company's capital structure as unsustainable. However, this
reflects better EBITDA, rather than a reduction in debt. We
forecast Nyrstar's adjusted debt to EBITDA at 9.5x-10.0x at year-
end 2018, improving to about 6.0x at year-end 2019."

S&P could consider a negative rating action if:

-- S&P saw no progress in the refinancing of the different
    upcoming debt maturities, including prepays and the EUR340
    million notes.

-- Nyrstar made a distressed exchange offer in the form of
     either a voluntary agreement with the noteholders to extend
     the maturity of the note, or a purchase of the notes below
     par.

-- S&P saw higher materially negative FOCF than in its current
    base case, stemming from further deterioration in the
    macroeconomic environment or from operational setbacks.
     Alternatively, negative FOCF could result from recovering
     zinc prices to $3,000/ton or more, which would require a
    significant working capital outflow.

S&P could consider revising the outlook to stable in the coming
six months if Nyrstar successfully addresses its upcoming
maturities.

Over time, an upgrade would be subject to Nyrstar's ability to
deliver robust operating performance, with adjusted debt to
EBITDA trending toward 5x, together with positive FOCF and an
upward revision of our current liquidity assessment.


SOLVAY SA: S&P Assigns 'BB+' Rating to New Sub. Hybrid Security
---------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' long-term issue rating to
the euro-denominated security to be issued by Belgium-based
chemical company Solvay S.A. (BBB/Stable/A-2). The rating is
subject to S&P's satisfactory review of final documentation,
while the transaction remains subject to market conditions.

S&P said, "We classify the proposed security as having
intermediate equity content from issuance until their first call
date because the notes' subordination, permanence, and optional
deferability during this period will meet the conditions under
our hybrid capital criteria. This is based on our assumption that
Solvay will use the proceeds and cash on balance sheet stemming
from the disposals of its Acetow and Vinythai businesses in 2017
to reduce the amount of hybrid capital as a proportion of its
total capitalization (by our calculations) to below 15%. This
proportion was elevated by a series of substantial disposals
leading to a contraction of Solvay's total capitalization, and we
estimate it will reach 17%-18% by year-end 2018. As such, and
when factoring in equity content into the calculation of our
credit metrics for Solvay, we exclude the amount of hybrids
exceeding 15% of its total capitalization.

"At the closing of the proposed hybrid transaction, we will
revise the equity content of Solvay's existing EUR700 million
hybrid callable in May 2019 to minimal. Its potential redemption
and only partial replacement with the proposed hybrids does not
affect our view of Solvay's other outstanding perpetual notes:
EUR1,500 million hybrids in three equal tranches, with first
calls in 2021, 2023, and 2024. We continue to view the remaining
hybrids issued in 2013 and 2015 as having intermediate equity
content, despite some reduction in the overall size of Solvay's
hybrid, because the reduction enables recovery of the
capitalization ratio to below 15%. This is on the back of
tangible credit strengthening since 2015 and the hybrid
downsizing in itself having an immaterial impact on metrics. We
expect Solvay will maintain a conservative financial policy, keep
its remaining hybrids as a permanent part of its capital
structure, and retain sufficient equity buffers to maintain its
credit profile."

S&P arrives at its 'BB+' issue rating on the proposed security by
deducting two notches from its 'BBB' issuer credit rating on
Solvay. The two-notch differential represents:

-- A one-notch deduction for subordination because our issuer
    credit rating on Solvay is investment grade (that is, 'BBB-'
    or above); and

-- An additional one-notch deduction for payment flexibility to
    reflect that the deferral of interest is optional.

S&P said, "The notching also reflects our view that there is a
relatively low likelihood that the issuer will defer interest.
Should our view change, we could increase the number of notches
deducted to derive the issue rating.

"In addition, we will allocate 50% of the related payments on
these security as a fixed charge and 50% as equivalent to a
common dividend, reflecting our view of the intermediate equity
content in line with our hybrid capital criteria. The 50%
treatment of principal and accrued interest also applies to our
adjustment of debt. Furthermore, we will likely treat the cash
hybrid issuance proceeds as surplus cash for our debt metric
calculations until they are utilized for the partial redemption
of the hybrid security callable in May 2019."

KEY FACTORS IN S&P's ASSESSMENT OF THE INSTRUMENT'S PERMANENCE

Although the proposed security are perpetual, they can be called
at any time for tax, gross-up, rating, and accounting events.
S&P said, "Solvay can redeem the security for cash at any time
during the 90 days before the first interest reset date, which we
understand will not be earlier than 5.5 years, and on every
coupon payment date thereafter. If any of these events occur,
Solvay intends, but is not obliged, to replace the instruments.
In our view, this statement of intent mitigates Solvay's ability
to repurchase the notes on the open market.

"We understand that the interest to be paid on the proposed
security will increase by 25 basis points (bps) no earlier than
10.5 years from issuance, and by a further 75bps 20 years after
the first call date. We consider the cumulative 100bps as a
material step-up, which is currently unmitigated by any
commitment to replace the respective instruments at that time.
This step-up provides an incentive for the issuer to redeem the
instrument on the first call date.

"Consequently, in accordance with our criteria, we will no longer
recognize the instrument as having intermediate equity content
after the first call date, because the remaining period until
their economic maturity would, by then, be less than 20 years.
Solvay's willingness to maintain or replace the instrument in the
event of a reclassification of equity content to minimal is
underpinned by its statement of intent."

KEY FACTORS IN S&P's ASSESSMENT OF THE INSTRUMENT'S DEFERABILITY

S&P said, "In our view, Solvay's option to defer payment on the
proposed security is discretionary. This means that the issuer
may elect not to pay accrued interest on an interest payment date
because it has no obligation to do so.

"However, any outstanding deferred interest payment will have to
be settled in cash if Solvay declares or pays an equity dividend
or interest on equally ranked security and if the company redeems
or repurchases shares or equally ranked security. We see this as
a negative factor. That said, this condition remains acceptable
under our methodology, because once the issuer has settled the
deferred amount, it can still choose to defer on the next
interest payment date."

KEY FACTORS IN S&P's ASSESSMENT OF THE INSTRUMENT'S SUBORDINATION

The proposed security (and coupons) are intended to constitute
direct, unsecured, and subordinated obligations of the issuer,
ranking senior to their common shares and pari passu to the
existing hybrid security issued by Solvay Finance S.A. and
guaranteed by Solvay S.A.


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F R A N C E
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PHOTONIS TECHNOLOGIES: S&P Lowers ICR to 'CCC', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
France-based night vision sensors company Photonis Technologies
SAS to 'CCC' from 'CCC+'. The outlook is negative.

S&P said, "We also lowered our issue rating on Photonis' senior
secured term loan B, due September 2019, to 'CCC' from 'CCC+'.
The recovery rating remains unchanged at '3', indicating
meaningful (50%-70%; rounded estimate: 55%) recovery prospects in
the event of a default.

"The downgrade primarily reflects our belief that Photonis could
default within the next 10 months if it does not successfully
refinance its EUR252 million term loan B due on Sept. 18, 2019.
Nevertheless, we forecast that Photonis' full-year 2018 results
will meet our base-case expectations thanks to a pick-up in
demand and start of production of the company's night vision and
power tubes. Also, the anticipated increase in EBITDA comes on
the back of the company's cost-reduction and yield optimization
plan.

Photonis is a tier 2 manufacturer of electro-optic components,
operating in niche markets with high barriers to entry. About 75%
of Photonis' sales stem from the defense sector, with a high
degree of specialization, while the rest stems from industrial
applications. We forecast that the company will maintain an S&P
Global Ratings-adjusted EBITDA margin at above 18% in 2018, a
level we consider above industry average, reflecting the high-end
nature of Photonis' products. Nevertheless, the company's EBITDA
margin has been on a downward trend over the past two to three
years due to the combination of production issues and lower
production volumes. The implementation of the company's "One
Photonis" plan, which aims at yield improvement, and cost
rationalization (in purchasing and support functions) should have
started to help reverse this trend this year already.

"While our outlook for the defense sector is favorable, with
defense budgets in Europe and in the U.S. expected to rise,
Photonis has limited control over the delays between contract
awards and the start of production, owing to its position as a
tier 2 manufacturer in the value chain." For instance, the
company has been subject to recurring deferrals of contracts over
the past three years. Although 2018 revenues will benefit from
the start of production of previously deferred contracts but this
remains a risk in the future.

Photonis' elevated indebtedness and associated high annual
interest burden of about EUR24 million continue to constrain the
company's financial risk profile. S&P forecasts that the
company's free operating cash flow (after capital expenditures
[capex] and working capital) will be negative in 2018.

The negative outlook reflects the possibility of a one-notch
downgrade within the next six months if Photonis does not
complete the refinancing of its term loan B maturing in September
2019.

S&P said, "We could lower our ratings on Photonis if the company
is unable to successfully refinance its term loan B by March
2019. We could also lower the ratings if the company's liquidity
position deteriorates.

"We could consider an upgrade if Photonis' order book increases
significantly, providing visibility over recovery in sales,
EBITDA, and cash flow generation. A positive rating action would
hinge on our belief that Photonis would also successfully
refinance its term loan B."


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GEORGIAN RAILWAY: Fitch Corrects November 22 Rating Release
-----------------------------------------------------------
Fitch Ratings replaced a ratings release published on
November 22, 2018 to correct the name of the obligor for the
bonds.

Fitch Ratings has revised JSC Georgian Railway's Outlook to
Positive from Stable while affirming the entity's Long-Term
Foreign and Local Currency Issuer Default Ratings at 'B+'. GR's
senior unsecured debt ratings have been also affirmed at 'B+'.

The revision of the Outlook to Positive reflects the recent
similar change on the Georgian sovereign (BB-/Positive). The
ratings reflect its assessment of GR's standalone credit profile
(SCP), which combined with Fitch's application of a top-down
approach under its Government-Related Entities (GRE) Criteria,
leads to one-notch differential of the company's ratings with
Georgia.

KEY RATING DRIVERS

Status, Ownership and Control (Strong)

GR is a national integrated railway transportation monopoly,
which is indirectly 100%-owned by Georgia via national key asset
manager - JSC Partnership Fund (PF, BB-/Positive). The company is
a rare combination of monopoly and deregulated tariff-setting.

The state exercises adequate control and oversight over GR's
activities both directly and via PF, including approval of the
railway company's budgets and investments. PF acts as an arm of
the state, by approving GR's major transactions (procurement,
borrowings, significant non-financial obligations, etc.). GR's
nine-member supervisory board is nominated and controlled by the
government, while goods and services are tendered in accordance
with the law on public procurement.

Fitch does not expect changes to GR's legal status in the medium
term. The government has plans to privatise 25% of the company,
and while the exact timing is not yet defined, it should be
neutral for GR's link with the state. GR is also obliged under
the EU-Georgia Association Agreement to implement EU directives
on railway transport, which require the infrastructure segment to
be segregated by 2022. Fitch expects that by this deadline GR
will have separate entities for different business segments under
a single holding structure, albeit with immaterial effect to its
monopolistic position.

Support Track Record and Expectations (Moderate)

GR receives mostly non-cash and indirect state support.
Historically, support of GR's long-term development has been via
state policy incentives and asset allocations. In 2012-2016 state
capital injections totalled GEL53 million, comprising mostly
infrastructural assets, such as land plots, transmission lines
and substations. In addition, strategic infrastructure, such as
railroads and transmission lines, is exempt from property tax in
Georgia.

GR enjoys greater pricing power than its regional peers rated by
Fitch - JSC Russian Railways (BBB-/Positive), JSC National
Company Kazakhstan Temir Zholy (BBB-/Stable) and PJSC Ukrainian
Railway (B-/Stable). GR's tariffs are fully deregulated, allowing
tariffs in both freight and passenger segments to be swiftly
adjusted to market conditions. Freight tariffs are set in US
dollars, resulting in natural hedge for a company that operates
in a country with a dollarised economic environment. This is a
departure from the national pricing regime, which requires
pricing of goods and services to be set in Georgian lari.

Such policy measures partly offset weak direct support from the
state. Unlike most regional peers GR does not receive any
subsidies for the loss-making passenger business. This segment
comprises only 5% of total revenue and continues to be cross-
subsidised by the freight transportation segment.

Socio-Political Implications of Default (Moderate)

GR plays a critical role in tapping Georgia's transit potential,
future development and in maintaining economic relations with
neighbouring countries. The company holds around a 30% share of
total freight transportation in the country and a dominant
position in transit trade flows.

GR's rail network, in association with Azerbaijan Railway, forms
a key segment of the Transport Corridor Europe Caucasus Asia.
GR's revenue constituted 1.2% of Georgia's GDP in 2017, and the
company accounted for around 5% of the country's services export.
The company is among the largest taxpayers and employers in
Georgia.

In its view, a default of GR may lead to some service
disruptions, but not of irreparable nature, and may not
necessarily lead to significant political and social
repercussions for the national government. In this case company's
hard assets will still be operational and alternative modes of
transportation remain available. It would instead hamper the
capital modernisation programme of the company and long-term
prospects of Georgia's economy.

Financial Implications of Default (Strong)

GR is a large external borrower in Georgia's context with a 29%
share in Eurobond issues, acting as a quasi-funding vehicle for
government investments. As of end-September 2018, Georgian GREs
accounted for USD1.3 billion, or about 76% of the total Eurobonds
of Georgian issuers. A default by GR could significantly impair
the borrowing capacity of the government and other GREs due to
Georgia's reliance on external financing and the small size of
the domestic economy.

Its assessment of GR under the GRE criteria results in a final
score of 22.5 points and in conjunction with the company's SCP
assessment at 'B(cat)' leads to GR's rating being notched down
once from the sovereign's IDR of 'BB-'(Positive).

Standalone Rating Assessment

GR's 'B(cat)' SCP factors in its assessment of weaker revenue
defensibility, midrange operating risk and weaker financial
profile. SCP is supported by the company's monopolistic position
combined with a deregulated tariff system and by the projected
stabilisation of the company's financial profile.

Fitch projects gradual stabilisation of GR's operating
performance and cash generation in 2018-2022. Fitch forecasts
zero growth in revenue in 2018, followed by a 3.5% yoy increase
in 2019 and a 4.5% yoy increase in 2020-2022, which compares
favourably with a negative trend in 2015-2017. Fitch estimates
Fitch-calculated EBITDA of GEL170 million in 2018 and GEL220
million-GEL240 million by 2022.

At the same time Fitch expects continued volatility in freight
volumes, with 2018 likely to see at best a stabilisation of the
negative trend in 2011-2017 (47% cumulative drop), before a
projected gradual rebound in 2019-2022. The projected gradual
recovery of volumes over the medium term is linked to expected
growth of neighbouring economies and a rebound in oil prices.
Fitch forecasts Georgia's GDP growth will accelerate to 5.2% in
2018 (2017: 5%), while Russian, Kazakhstani and Azerbaijani
economies are projected to grow 2%, 3.8% and 2% respectively.

GR's leverage will remain high in 2018-2020, underpinned by
improving but still weaker performance. Fitch estimates GR's net
debt-to-Fitch-calculated EBITDA at about 7x in 2018 (2017: 6.3x),
before a gradual improvement to about 5x in 2022. Fitch expects
no change in the company's consolidated direct debt (2017: GEL1.4
billion), which is linked to capex.

The bulk of GR's debt is denominated in US dollars; nonetheless
FX exposure is partially mitigated by a natural hedge, as about
90% of its revenue is linked to US dollars, while most of the
company's expenditure is in lari. GR's liquidity buffer remains
sound with interim cash reserves estimated to total GEL235
million at end-2018. Fitch expects GR to maintain healthy cash
balances of up to GEL240 million in 2018-2022.

RATING SENSITIVITIES

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

  - An upgrade of Georgia's sovereign rating

  -  Greater incentive for state support leading to reassessment
of the socio-political implications of a default and therefore a
narrowing of rating-notch differential

  - A stronger financial profile resulting in the SCP being on a
par with or above the sovereign

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

  - A downgrade of Georgia's sovereign rating

  - Dilution of linkage with the sovereign resulting in the
ratings being further notched down from the sovereign

  - Deterioration of financial profile and liquidity resulting in
downward reassessment of the company's SCP

FULL LIST OF RATING ACTIONS

Long-Term Foreign and Local Currency IDRs affirmed at 'B+'
Outlook revised to Positive from Stable

Short-Term Foreign and Local Currency IDRs affirmed at 'B'
Local currency senior unsecured rating affirmed at 'B+'


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G E R M A N Y
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SENVION SA: Moody's Affirms B2 CFR, Alters Outlook to Negative
--------------------------------------------------------------
Moody's Investors Service changed the outlook on the ratings of
Senvion S.A. and of Senvion Holding GmbH to negative from stable.
Concurrently, Moody's affirmed the B2 corporate family rating and
the B2-PD probability of default rating of Senvion as well as the
B3 rating of the senior secured global notes issued by Senvion
Holding GmbH.

RATINGS RATIONALE

"Moody's decision to change the outlook on Senvion's ratings to
negative from stable was triggered by a weak order intake during
the first nine months of 2018 compared to the same period in 2017
in combination with a severe decline in revenues and EBITDA in
the same period. While the revenue and EBITDA decline was by and
large in line with the market trend, the weakness in order intake
raises concerns if Senvion will be able to adequately participate
in the market recovery Moody's still expects for 2019/20," said
Oliver Giani, lead analyst for Senvion. "Failure to demonstrate a
material recovery of operating performance over the next couple
of quarters with a trajectory of leverage recovering to below 5x
at year-end 2019, would be likely to create negative rating
pressure. Supportive at this stage is however the fact that
Senvion was able to increase its order book by 37% (compared to
September 2017) to EUR2 billion which gives more favorable
indications for revenues in 2019," he added.

Senvion S.A.'s CFR of B2 is weakly positioned but remains
supported (1) the company's market positions, ranking sixth
worldwide (excl. China) but remaining significantly smaller than
the leaders Vestas, Siemens Gamesa and GE Renewables (2) its
historically stable and resilient profitability compared with
other wind turbine manufacturers, (3) a solid level of firm order
book (+37% during the first nine months of 2018) which provides
good revenue visibility for the next 12-18 months.

The rating is constrained by (1) the structurally low
profitability of the consolidating and intensely competitive wind
turbine industry where products are largely undifferentiated, (2)
the limited product and end-industry diversification with more
than 80% of 2017 revenues coming from the installation of new
wind turbines and (3) some geographical concentrations with
Senvion's historical key markets of Germany, France and the UK
still representing 55% of new installations and 46% of revenues
in 2017.

LIQUIDITY

Moody's considers Senvion's liquidity to be adequate, benefiting
from roughly EUR146 million of cash as of the end of September
2018. While Moody's expects Senvion to be around break-even in
terms of free cash flow during 2019, Moody's expects the company
to gradually return to generating positive free cash flow
thereafter. However, Moody's acknowledges the fact that there is
an element of unpredictability and volatility in cash flows,
considering the large size and long lead times of projects.
Senvion also has access to an EUR825 million letter of guarantee
facility and a EUR125 million revolving credit facility maturing
in April 2022, which is subject to a financial covenant currently
enjoying adequate headroom. This should provide sufficient
headroom for the business needs (issued bonds have been
oscillating around EUR600+ million in recent months, no cash
drawn under the RCF during the first nine months 2018).

STRUCTURAL CONSIDERATIONS

The B3 rating assigned to the EUR400 million senior secured notes
due 2022 issued by Senvion Holding GmbH is one notch below the
CFR. This principally reflects the subordinated position of the
notes in the loss given default waterfall with regards to the
super senior secured syndicated facility in a default scenario,
even though the facility and the notes share the same guarantor
and collateral package. The facility is large enough (i.e.,
EUR125 million in revolving credit facility and EUR825 million in
letter of guarantee facility) to warrant the notching of the
senior secured notes below the CFR. In addition, the EUR825
million letter of guarantee facility, although not a cash credit
and thus not included in its LGD waterfall assessment, enjoys
super seniority status versus the notes.

RATIONALE FOR OUTLOOK

The negative outlook mirrors Moody's concern that Senvion may be
challenged to materially restore its credit metrics in 2019 to a
level that would position the company more adequately in the B2
rating category.

WHAT COULD CHANGE THE RATING UP/DOWN

The ratings on Senvion could be downgraded in case (1) of
indications that Senvion might be unable to restore its Moody's
adjusted EBITA margin after 2018 to at least 2%, indicating that
the company is unable to withstand competitive pressure in the
market; (2) free cash flow stays negative for a prolonged period;
(3) of indications that Moody's adjusted leverage will remain
above 5.0x debt/EBITDA after 2018; or if (4) the company's
liquidity profile deteriorated in particular in case Senvion
might not be able to comply with the financial covenant under its
credit facilities agreement.

An upgrade of the ratings could be considered over the medium
term if (1) Moody's adjusted EBITA margin approaches 5%; (2)
Senvion returns to a positive free cash flow generation; and (3)
Moody's adjusted leverage can be sustainably reduced below 4.0x
debt/EBITDA.

LIST OF AFFECTED RATINGS

Issuer: Senvion Holding GmbH

Affirmations:

BACKED Senior Secured Regular Bond/Debenture, Affirmed B3

Outlook Actions:

Outlook, Changed To Negative From Stable

Issuer: Senvion S.A.

Affirmations:

Probability of Default Rating, Affirmed B2-PD

LT Corporate Family Rating, Affirmed B2

Outlook Actions:

Outlook, Changed To Negative From Stable

The principal methodology used in these ratings was Global
Manufacturing Companies published in June 2017.

Senvion S.A. is a publicly quoted entity holding 100% of share
capital at Senvion TopCo GmbH. Senvion TopCo GmbH is the holding
company of the Senvion group at the top of the restricted group.
Headquartered in Hamburg, Germany, Senvion is one of the leading
manufacturers of wind turbine generators. The group develops,
manufactures, assembles and installs WTGs with nominal outputs
ranging from 2.0 MW to 6.3 MW, covering all wind classes in both
onshore and offshore markets. Moody's notes that Senvion can also
occasionally partner with its clients via
codevelopment/coinvestment projects. Senvion has a workforce of
about 4,500 worldwide and generated revenue of close to EUR1.4
billion during the twelve months period to September 2018, with
cumulative global installed capacity of around 17 GW. In March
2016, private equity firm Centerbridge Partners sold a stake of
around 26.4% in Senvion S.A., the publicly quoted entity holding
100% of share capital at Senvion TopCo GmbH, to private investors
in an initial public offering.


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PUBLIC POWER: S&P Raises Long-Term ICR to 'CCC+', Outlook Pos.
--------------------------------------------------------------
S&P Global Ratings said that it raised its long-term issuer
credit rating on Greek utility Public Power Corp. S.A. (PPC) to
'CCC+' from 'CCC'. The outlook is positive.

S&P said, "At the same time, we raised the issue rating on PPC's
EUR1.3 billion syndicated loans with Greek banks, and on the
EUR350 million senior unsecured notes issued by PPC Finance Ltd.
and guaranteed by PPC. The '4' recovery rating on both
instruments is unchanged, reflecting our expectation of average
recovery (30%-50%; rounded estimate: 35%) in the event of a
payment default.

"The upgrade primarily reflects our improved expectations of
PPC's liquidity for the next 12 months. In October 2018, PPC
signed an agreement to extend the maturity of two loan agreements
amounting to EUR1.3 billion in total with a syndicate of Greek
banks for the refinancing of existing debt. The refinancing,
combined with additional EUR620 million dedicated and contracted
liquidity credit lines, will allow PPC to meet the April 2019
maturities on its EUR350 million unsecured outstanding notes. As
a result, our view of PPC's stand-alone credit quality has
slightly improved, though we acknowledge it remains fragile.

"Furthermore, we continue to assess PPC as a government-related
entity (GRE) and we believe that slightly improved economic
prospects in Greece somewhat enhance the government's capacity to
provide PPC timely extraordinary support. Our ratings on PPC do
not currently include any benefit due to extraordinary government
support, but we could include an additional notch within the PPC
rating for such potential support if we upgrade Greece.

"However, we continue to have doubts over the long-term
sustainability of PPC's operations and market position. We
recognize the need for PPC to strategically transform itself in
order to reduce its dependency on imported fossil fuels and the
evolution of carbon prices and to shift the energy generation mix
toward renewables. Furthermore, the full implementation of
European competition regulation for utilities entails a steep
contraction of PPC's domestic market share both on its
electricity supply and its generation market share to below 50%
by the end of 2019 (from 63% in retail and 95% in generation in
2015). PPC faces a significant cut in its lignite capacity as
European authorities have imposed the sale of about 40% of PPC's
lignite plant and mines to enhance efficiency and competition in
Greece, further reducing the company's weight in the market. This
transformation process, will require significant investments of
about EUR 2.2 billion from 2019 to 2021.

"At the same time, we expect PPC's adjusted EBITDA to decline to
about EUR370 million-EUR390 million in 2018 compared to EUR634
million in 2017 (EUR805 million reported EBITDA in 2017 including
the positive one-off impact of EUR360 million for public service
obligations for the years 2012-2016). The fall is mainly due to
the sale of the electricity transportation business IPTO in 2017,
the higher cost of commodities required for generation (gas, oil,
and carbon dioxide rights) and the renewables special levy
(ELAPE). Due to PPC's negligible cash generation, it will need to
finance its investments with additional debt, which could
eventually further weaken already-fragile credit metrics.
Additionally, unlike most European power generators, PPC's
earnings upside potential is limited in the coming two to three
years as we do not see generation spreads improving."

The working capital has reversed its trend in 2018 and improved
thanks to the reduction of overdue receivables. PPC has achieved
this thanks to the collection of overdue receivables by state
entities and active customers. Despite these positive
indications, S&P still considers the behavior of PPC's working
capital as uncertain. Overdue receivables peaked at about EUR2.5
billion at the end of December 2017, compared with EUR1.7 billion
in 2014, before Greece's economic crisis.

In S&P's base-case scenario for 2019 and 2020, it assumes:

-- Flat revenues for 2019. We expect a reduction in energy sales
    of around 5%. S&P understands that the company will try to
    compensate for this with higher revenues per client,
    addressing higher CO2 and wholesale market prices.

-- A material reduction of revenues in 2020 of up to 14%-15%
    following the expected reduction in market share.

-- An EBITDA margin that narrows to around 11%, excluding any
     potential future positive onetime contribution from the
     public service obligation (PSO) due to electricity supply on
     non-interconnected islands.

-- Positive working capital movements of EUR100 million per
     year, thanks to the improvement to recover overdue
     receivables.

-- Capital expenditures (capex) of about EUR 1.7 billion for
    2019 and 2020, with EUR800 million already committed.

-- Cash intake from the disposal of lignite assets will
    partially support debt repayment. At this stage, we do not
     quantify the market value or specific timing of this
     transaction.

Based on these assumptions, we arrive at the following credit
measures for PPC:

-- Debt to EBITDA at 10x-11x;
-- FFO to debt below 5.0%; and
-- EUR1 billion of negative cash flow available for debt
    repayment.

S&P said, "Our positive outlook mirrors our positive outlook on
the Greek government. This reflects our view that improved
economic prospects in Greece enhance the government's capacity to
provide PPC with timely extraordinary support. We expect PPC to
secure in advanced its liquidity needs within the next 12 months,
which is a paramount factor for a potential rating upgrade.

"We could raise the long-term rating by one notch if we raise the
rating on the sovereign, all other factors remaining unchanged.
Although unlikely in the coming two years, we could raise the
stand-alone credit profile if the company successfully completes
the transformation process and demonstrate capacity to deleverage
its balance sheet.

"We would take a negative rating action if PPC's liquidity were
to weaken, specifically if the company failed to secure in
advanced its liquidity needs within the next 12 months; announced
a debt renegotiation or haircut that we consider to be
distressed; or we foresaw a higher likelihood that PPC would fail
to meet any of its liabilities."


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WOW AIR: Icelandair Group Abandons Plan to Buy Rival Airline
------------------------------------------------------------
Ragnhildur Sigurdardottir and Benjamin D Katz at Bloomberg News
report that Icelandair Group Hf abandoned its plan to buy
low-cost rival Wow Air Hf, sending the krona tumbling amid
concern that the country's tourism industry could be hit if the
discounter collapses.

According to Bloomberg, conditions required for the deal to go
through weren't met, Icelandair Chief Executive Officer Bogi Nils
Bogason said on Nov. 29, adding that "this conclusion is
certainly disappointing."

The deal's collapse raises the specter of another airline
bankruptcy in Europe following at least five already this year
after overcapacity and high oil prices took a bite out of balance
sheets, Bloomberg discloses.

Wow on Nov. 27 said financial projections had worsened
significantly since its bond issuance on Sept. 24 and that talks
to secure long-term funds had become a necessity, Bloomberg
relates.

Icelandair will hold a shareholders meeting today, Nov. 30, as
planned, it said, adding that a proposal for the board to
increase share capital remains on the agenda, Bloomberg notes.


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ARROW CMBS 2018: DBRS Finalizes BB(low) Rating on Class F Notes
---------------------------------------------------------------
DBRS Ratings Limited finalized its provisional ratings of the
following classes of notes issued by Arrow CMBS 2018 DAC (the
Issuer):

-- Class A1 at AAA (sf)
-- Class A2 at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (high) (sf)
-- Class F at BB (low) (sf)

All trends are Stable.

Arrow CMBS 2018 DAC is the securitization of 95% interest of a
EUR 308.2 million senior commercial real estate loan jointly
advanced by Deutsche Bank AG, London Branch and Societe Generale,
London Branch (together, the Loan Sellers) to various borrowers
located in France, the Netherlands and Luxembourg (together, the
Borrowers). The loan is ultimately owned by Onyx, a joint-venture
company set up by Blackstone Real Estate Partners (Blackstone),
which holds 95% of the equity, and M7 Real Estate (together with
Blackstone, the Sponsors), which holds the remaining 5% of
equity. There is an additional EUR 78.1 million mezzanine
facility, which is structurally and contractually subordinated to
the senior loan. However, the mezzanine facility is not part of
the transaction.

The logistic portfolio securing the senior loan, which was valued
by Cushman & Wakefield at EUR 442.0 million, has assets located
across France (69.5% of the portfolio by market value or MV),
Germany (23.1% of the portfolio by MV) and the Netherlands (7.5%
of the portfolio by MV). A large part of the collateral is from
the previous loan portfolio sale, Project Aberdonia, which Lloyds
Banking Group sold to Marathon Asset Management in 2014.

There are 89 assets in the portfolio and, according to
Blackstone, 77 assets are categorized as logistics, industrial or
mixed-use assets, which represent 86.7% of the portfolio's MV.
The Sponsors plan to dispose the portfolio's non-logistics assets
and two mixed-used assets to integrate the remaining part of the
portfolio into its pan-European logistics platform. DBRS
estimates that should all 14 assets (two mixed-used assets and 12
non-logistics assets) be disposed, and their release prices be
paid, the portfolio will slightly deleverage to a 67.7% loan-to-
value (LTV) ratio from 69.7% LTV at issuance.

Approximately 69.5% of the MV is located in France, with a
concentration in the strong economic region of Ile-de-France
(35.6% of the portfolio). Within France, DBRS notes that the
majority of assets are located along the French
logistics belt, which extends from Lille to Marseille. The German
assets in the portfolio are mostly located in the northwestern
part the country whereas most of the Dutch assets are located in
the Randstad region.

Arrow CMBS 2018 DAC is the first European post-financial-crisis
CMBS transaction with a large French asset exposure. The workout
process of several defaulted French loans securitized in certain
pre-financial crisis transactions revealed that the enforcement
against borrowers holding mainly French assets would be
complicated should the borrower be granted a safeguard plan (plan
de sauvegarde) by a French court. A double-Lux Co. structure,
however, should mitigate the risk of Borrowers filing a hostile
safeguard. In addition, the Loan Sellers benefit from Daily
assignments of rental income pursuant the Daily law (loi Daily),
which would remain effective notwithstanding the opening of
safeguard. Moreover, the transaction is supported by a tail
period of six-and-a-half years and liquidity facility coverage up
to almost two years' of interest payments on the covered notes in
case of a long workout process. DBRS has undertaken a legal
analysis in light of these mitigants and concluded that the
transaction's credit quality is commensurate with DBRS's highest-
assigned rating.

As of April 30, 2018 (the cut-off date), the portfolio generated
a total EUR 33.5 million gross rental income from approximately
350 tenants. The net operating income (NOI) of the portfolio is
estimated to be EUR 31.1 million, representing a debt yield (DY)
of 10.1%. The portfolio benefits from a high physical occupancy
rate of 90.7%. However, the appraiser deemed 2.9% of the vacant
areas as structural vacancies. As such, no rental or sales value
was allocated for that space. As a result, the portfolio's MV of
EUR 442.0 million is net of structural vacancy. The senior loan
LTV ratio is 69.7%. DBRS further stressed the portfolio by
applying a 10% vacancy assumption, resulting in an underwritten
physical vacancy of approximately 13.0%.

The senior loan carries a floating interest rate equal to three-
month Euribor (subject to zero floor) plus a margin of 2.075%.
The base interest rate risk is hedged by a prepaid cap with a
strike rate of 2.0% and is provided by Societe Generale, London
branch.

Similar to other Blackstone-sponsored loans, the senior loan does
not provide for default financial covenants, but only has a cash
trap mechanism set at 77.2% LTV and 9.45% DY based on net rental
income (NRI). The loan has an initial term of two years with
three one-year extension options available subject to the
satisfaction of certain conditions. While the Sponsors remain the
same, there is no amortization scheduled during the loan term.

According to the tax due diligence report received by DBRS, there
is a potential tax liability of EUR 45.6 million (or EUR 55.2
million including penalty and late interests) accumulated over
the past years and inherited from two French portfolios:
Aberdonia and Mistral. DBRS understands that such liability was
caused by the missing or incorrect tax filing by the previous
owner who (like Blackstone) should have been exempt from such
tax. Blackstone have undertaken to correctly file thus be exempt
from such tax liability in future. However, there is no guarantee
that the French tax authority would not claim amounts based on
the missing or incorrect filings for previous years. DBRS has
reflected such risk in its analysis by assuming that during the
fully-extended loan term, all excess cash from the assets would
be used to pay the overdue tax and deducted the remaining unpaid
tax liability from each rating level's proceeds proportionally.

The transaction will benefit from a liquidity facility of EUR
13.5 million, which equals to 7.6% of the total outstanding
balance of the covered notes, and will be provided by Deutsche
Bank AG, London Branch and Societe Generale, London Branch (the
Liquidity Facility Providers) on a 50-50 basis. The liquidity
facility can be used to cover interest shortfalls on the Class
A1, Class A2 and Class B notes. According to DBRS's analysis, the
commitment amount, as at closing, could provide interest payment
on the covered notes up to approximately 26 months and 14 months
based on the interest rate cap strike rate of 2.0% and the
Euribor cap of 5% after loan maturity, respectively. At issuance,
the portion of liquidity facility provided by Deutsche Bank AG,
London branch, will be fully drawn and deposited on an account
under the control of the Issuer at Elavon Financial Services
Limited, UK branch.

The transaction is expected to repay on or before November 22,
2023, seven days after the fully-extended senior loan
maturity. Should the loan not be repaid by then, this will
constitute, among others, a special servicing transfer event. The
transaction will be structured with a 6.5 year tail period to
allow the special servicer to work out the loan by May 22, 2030
at the latest, which is the legal final maturity of the notes.

The Class D, E and F notes are subject to an available funds cap
where the shortfall is attributable to an increase in the
weighted-average margin of the notes and/or a reduction of
interest payment due to the partial prepayments of the senior
loan.

The transaction includes a Class X diversion trigger event,
meaning that if the loans' DY falls below 8.66% and/or LTV
increases over 82.02%, any interest and prepayment fees due to
the Class X note holders will instead be diverted into the Issuer
transaction account and credited to the Class X diversion ledger.
However, once the trigger is un-breached, the held amount will be
released back to the Class X note holder and following the
delivery of a note acceleration notice or the expected note
maturity, such funds will be used to amortize the notes.

To maintain compliance with the applicable regulatory
requirements, the Loan Sellers will jointly hold approximately
5% of the senior loan.

Notes: All figures are in euros unless otherwise noted.


DILOSK RMBS No. 2: DBRS Finalizes BB Rating on Class F Notes
------------------------------------------------------------
DBRS Ratings Limited finalized its provisional ratings of the
notes issued by Dilosk RMBS No. 2 DAC (the Issuer) as follows:

-- Class A notes rated AAA (sf)
-- Class B notes rated AA (high) (sf)
-- Class C notes rated AA (sf)
-- Class D notes rated A (sf)
-- Class E notes rated BB (high) (sf)
-- Class F notes rated BB (sf)

The Class Z1, X, R and Z2 notes are not rated.

The Issuer is a bankruptcy-remote special-purpose vehicle (SPV)
incorporated in Ireland. The issued notes were used to fund the
purchase of Irish residential mortgage loans originated by Pepper
Finance Corporation (Ireland) DAC (Pepper; (formerly GE Capital
Woodchester Home Loans Limited) and Leeds Building Society (LBS)
and secured over residential properties located in Ireland.
Pepper sold part of the portfolio in February 2017 and part in
May 2017 to Areo S.a.r.l. Compartment 26 (Areo), a private
limited liability company incorporated in Luxembourg. LBS sold
part of the portfolio in July 2018 to Areo.

According to transaction documentation, the Issuer indemnifies
the Legal Title Holder, Pepper, for various risks. This
indemnification was previously formulated in general wording.
Later, a clarification was added, highlighting two specific
risks: the Mondello IOA Issue and the Mondello TRS Issue.

The Mondello TRS Issue relates to the fact that LBS based the
calculations of the tax relief amount granted to borrowers under
the TRS scheme on interest charged rather than interest paid,
leading to claiming too much from the Irish Revenue Commission.
DBRS considers this risk mitigated as the master servicer has
confirmed that the Mondello TRS Issue has been resolved between
LBS and the commission for all loans originated prior to 2018,
while the cover pool contains no loans originated after 2010.

The Mondello IOA Issue relates to the methodology used by LBS to
calculate Interest on arrears (IOA), which led to higher interest
charged compared with the method Pepper uses. As no warranty is
given on servicing, including compliance with laws and
regulations, future adverse interpretation by the relevant
authority could result in redress payments due to affected
borrowers. However, following discussions with the relevant
transaction parties and their legal counsel, DBRS believes that
this risk is remote, and, should it materialize, the redress
payments would have to be made by LBS, whose losses are not
covered in the indemnity given by the issuer. Furthermore, the
Legal Title Holder is a party to the transaction and as such is
expected to have signed up to limited recourse and non-petition
language.

As at September 30, 2018, the final mortgage portfolio consisted
of 1,727 loans with a total portfolio balance of approximately
EUR 286.4 million. The weighted-average (WA) loan-to-indexed
value, as calculated by DBRS giving a limited credit to house
price increases, is 70.3% with a WA seasoning of 11.1 years.
Almost all the loans included in the portfolio (99.3%) are
floating-rate loans linked either to the European Central Bank
(ECB) rate or a variable rate linked to the ECB rate. The notes
pay a floating rate of interest linked to three-month Euribor.
DBRS has accounted for this interest rate mismatch in its cash
flow analysis. Approximately 47% of the loans have been
restructured at least once. No loans in the portfolio are in
three or more months in arrears.

Credit enhancement for the Class A notes is calculated at 40.0%
and is provided by the subordination of the Class B notes to the
Class Z1 notes and the general reserve fund first target level
and the general reserve fund second target level. Credit
enhancement for the Class B notes is calculated at 33.5% and is
provided by the subordination of the Class C notes to the Class
Z1 notes and the general reserve fund second target level. Credit
enhancement for the Class C notes is calculated at 28.5% and is
provided by the subordination of the Class D notes to the Class
Z1 notes and the general reserve fund second target level. Credit
enhancement for the Class D notes is calculated at 22.5% and is
provided by the subordination of the Class E notes to the Class
Z1 notes and the general reserve fund second target level. Credit
enhancement for the Class E notes is calculated at 13.5% and is
provided by the subordination of the Class F notes, Class Z1
notes and the general reserve fund second target level. Credit
enhancement for the Class F notes is calculated at 10.5% and is
provided by the subordination of the Class Z1 notes and the
general reserve fund second target level.

The transaction benefits from a cash reserve (general reserve
fund second target level) that is available to support the Class
A to Class F notes. The cash reserve will be fully funded at
closing at 3.0% of the initial balance of the rated notes and the
Class Z1 notes less the general reserve fund first target level.
The general reserve fund first target level is sized at 1.5% of
the Class A balance and provides liquidity support to cover
revenue shortfalls on senior fees and interest on the Class A and
Class X notes. The notes will additionally be provided with
liquidity support from principal receipts, which can be used to
cover interest shortfalls on the most senior class of notes,
provided a debit is applied to the principal deficiency ledgers
in reverse sequential order.

A key structural feature is the provisioning mechanism in the
transaction, which is linked to the arrears status of a loan
besides the usual provisioning based on losses. The degree of
provisioning increases with the increase in number of months in
arrears status of a loan. This is positive for the transaction as
provisioning based on the arrears status will trap any excess
spread much earlier for a loan, which may ultimately end up in
foreclosure.

The Issuer Account Bank, Paying Agent and Cash Manager is
Citibank, N.A., London Branch. Based on the DBRS private rating
of the account bank, the downgrade provisions outlined in the
transaction documents, and structural mitigants, DBRS considers
the risk arising from the exposure to the account bank to be
consistent with the ratings assigned to the notes, as described
in DBRS's "Legal Criteria for European Structured Finance
Transactions" methodology.

The rating assigned to the Class A notes addresses the timely
payment of interest and ultimate payment of principal on or
before the final maturity date. The ratings assigned to the Class
B to Class F notes address the ultimate payment of interest and
principal while junior but timely payment of interest when the
senior-most tranche. DBRS based its ratings primarily on the
following:

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

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

   -- The ability of the transaction to withstand stressed cash
flow assumptions and repays the rated notes according to the
terms of the transaction documents. The transaction cash flows
were analyzed using PD and LGD outputs provided by DBRS's "Master
European Residential Mortgage-Backed Securities Rating
Methodology and Jurisdictional Addenda". Transaction cash flows
were analyzed using INTEX DealMaker.

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

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

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

Notes: All figures are in euros unless otherwise noted.


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FINO 1 SEC: DBRS Confirms BB Rating on Class C Notes
----------------------------------------------------
DBRS Ratings Limited confirmed its ratings of Fino 1
Securitization S.r.l. (the Issuer) as follows:

-- Class A Notes at BBB (high) (sf)
-- Class B Notes at BB (high) (sf)
-- Class C Notes at BB (sf)

The notes are backed by a portfolio of secured and unsecured
Italian non-performing loans originated by UniCredit S.p.A.
(UniCredit). The majority of loans in the portfolio defaulted
between 2010 and 2017 and is in various stages of the resolution
process. The loans are serviced by doBank S.p.A. (doBank).

Given the nature of the collateral and the defaulted status of
the loans included in the portfolio, the collections received are
the primary source of payment under the notes. As a result, there
is a significant reliance on doBank's ability and performance as
servicer in executing the business plan. DBRS views the
granularity of the portfolio, the presence of a cash reserve and
the experience of the servicer as mitigating factors for this
risk.

In its analysis, DBRS assumed that all loans are disposed through
a judicial resolution strategy. Both the DBRS timing and value
stresses are based on the historical repossessions data of the
servicer, doBank. DBRS's BBB (high) (sf), BB (high) (sf) and BB
(sf) ratings assume a haircut of 23.9%, 19.5% and of 19.0%,
respectively, to the servicer's initial business plan for the
portfolio.

As of the October 2018 investor report, the principal amount
outstanding of the Class A, Class B and Class C notes was EUR 545
million, EUR 29.6 million and EUR 40 million, respectively. The
balance of the Class A notes amortized by approximately 16% since
issuance. The Class D notes do not receive any issuer available
funds until the Class A, Class B and Class C notes are repaid in
full. The outstanding transaction balance is EUR 614.6 million.

As reported in the most recent semi-annual servicer report, the
actual cumulative gross collections accounted for EUR 251 million
in the first ten-month period after closing. The servicer's
initial business plan as detailed in the servicing report assumed
cumulative gross collections of EUR 273 million during the same
period, which is 9% higher than the actual amount collected to
date.

At issuance, DBRS estimated cumulative gross collections for the
same ten-month period of EUR 98 million in the BBB (high)
scenario, and EUR 107 million in the BB (high) scenario, both
lower than actual cumulative gross collections to date.

Since closing and due to the disposal of residential and
commercial properties as well as unsecured loans, the total gross
book value (GBV) of the portfolio has been reduced by EUR 115
million or by 2.14% compared with the initial GBV. The most
recent reported GBV as of September 2018 was EUR 5.259 million
(EUR 5.374 million at issuance). The portfolio continues to be
mainly concentrated in the same areas as at issuance, with
northern Italy representing the largest concentration of assets
in the pool with 42.8% by GBV (43% at issuance).

The transaction benefits from a EUR 32.5 million cash reserve,
which was fully funded at closing through a limited recourse
loan. According to the most recent investor report of October
2018, the outstanding balance of the cash reserve amount was EUR
29 million, which has been reduced in proportion to the
transaction's collateral reduction, as the cash reserve target
amount is equal to 5% of the Class A principal outstanding
amount.

The ratings are based on DBRS's analysis of the projected
recoveries of the underlying collateral, the historical
performance and expertise of the servicer, doBank, the
availability of liquidity to fund interest shortfalls and
special-purpose vehicle expenses, the cap agreement with HSBC
France and the transaction's legal and structural features.

The transaction's final maturity date is in October 2045.

Notes: All figures are in euros unless otherwise noted.


===================
L U X E M B O U R G
===================


ALGECO GLOBAL: Fitch Affirms 'B' LT IDR, Alters Outlook to Neg.
---------------------------------------------------------------
Fitch Ratings has revised the Outlook on Algeco Global S.a.r.l.'s
Long-Term Issuer Default Rating to Negative from Stable and
affirmed the IDR at 'B'. At the same time, Fitch has affirmed the
senior secured notes issued by Algeco Global Finance plc at 'B+'
with a Recovery Rating of 'RR3' and senior unsecured notes issued
by Algeco Global Finance 2 plc at 'CCC+' with a Recovery Rating
of RR6'.

Algeco Finance's EUR125 million senior secured tap issue will be
rated in line with Algeco Finance's outstanding senior secured
notes. The dual-tranche tap issue (EUR100 million 6.5% fixed rate
and EUR25 million floating rate, both due 2023) carries the same
terms and conditions as Algeco Finance's existing senior secured
notes. Management intends to use proceeds from the issuance to
repay an existing EUR96 million sale-and-lease-back facility and
to increase cash on balance sheet.

The rating actions follow Algeco's announcement on 13 November
2018 that it has agreed to dispose of its North American remote
accommodation business to Platinum Eagle Acquistion Corp., a US-
listed special purpose acquisition company. Upon closing, which
is expected in January 2019, Algeco expects to receive EUR486
million in cash and EUR223 million in Platinum Eagle shares
(equating to a 25% stake in the company), which will contain a
six months lock-up provision.

In 2Q18, Algeco's North American business accounted for around
24% of the group's adjusted EBITDA (last 12 months before central
costs and intragroup elimination). Following the divestment,
Fitch expects Algeco's gross leverage (funds from operations
(FFO) leverage) to be an elevated 8.1x (prior to disposal: 6.6x)
while pro forma net leverage (net of cash proceeds, excluding the
stake in Platinum Eagle) will equate to around 6.3x

KEY RATING DRIVERS

IDR

The revision of the Outlook to Negative reflects Fitch's view of
elevated execution risk associated with Algeco's post-closing
deleveraging profile (on a gross debt basis), the need to notably
improve EBITDA (in the absence of further debt repayments) to
ensure positive free cash flow in the short to medium term, as
well as uncertainty around the intended use of Algeco's currently
considerable cash balances.

The affirmation of the Long-Term IDR reflects Fitch's view that
Algeco's high post-closing gross leverage is mitigated to an
extent by the company's sound projected deleveraging profile and
lower net leverage. Key leverage metrics under both the non-bank
financial institutions (NBFI; gross debt/EBITDA at around 7.3x)
and corporate criteria (8.1x FFO leverage) are not commensurate
with the Long-Term IDR. However, Fitch expects both gross
debt/EBTIDA and FFO leverage to drop below 6x by 2020,
underpinned by Algeco's cash-generative franchise in a number of
large and developed markets for modular space leasing, notably
France, Germany and the UK (but increasingly also in smaller
European markets, including eastern Europe).

In addition, structural features in Algeco's funding
documentation prevent material dividend upstream to its owners in
the short to medium term, which means that Fitch expects cash
balances to either remain elevated or be utilised for further
debt repayments or EBITDA-accretive bolt-on acquisitions.

Pro forma for the disposal, Fitch estimates Algeco's 2018 EBITDA
at around EUR228 million (compared with around EUR277 million
before the disposal). Pro forma gross debt will stand at around
EUR1,663 million compared with around EUR1,734 million pre-
disposal. Due to the increase in gross leverage, Algeco's pro
forma free cash flow margin (after interest expenses) will turn
negative before gradually recovering in 2019 based on management
projections. Cash on balance sheet (net of cash used to repay a
proportion of its asset-back lending facility and other
liabilities) will be close to EUR370 million. Fitch understands
that the majority of cash is unrestricted.

Pro forma debt coverage ratios will be weaker than pre-disposal
(both FFO interest coverage and EBITDA/interest expense will
likely be just below 2x) but Algeco's debt service capacity is
materially supported by the availability of unrestricted cash
balances.

Following the disposal, Algeco's franchise will centre on the
European modular space leasing market, and to a lesser extent,
its more limited presence in Australia and New Zealand. Its
overall assessment of Algeco's company profile is constrained by
the small size of the modular space leasing market and Algeco's
effectively monoline business model, with modular space leasing
and rental accommodations being sensitive to similar cyclical
factors.

Algeco's revenue base is sensitive to construction activity for
its European franchise, demand for temporary accommodation
solutions across Europe and commodity price developments for its
Australian franchise.

The IDR also reflects Algeco's smaller size and moderately lower
profitability than other specialised leasing and rental companies
such as Ashtead, Loxam and Herc.

SENIOR SECURED AND UNSECURED NOTES

Fitch believes Algeco is more likely to be sold or restructured
as a going concern rather than liquidated. The industry is highly
fragmented across Europe and further consolidation is likely.

As part of its bespoke recovery analysis, Fitch applied a
discount of 25% to its 2018 EBITDA estimate to derive a post-
restructuring EBITDA. At this discount, Fitch expects free cash
generation to be neutral to slightly negative.

In a distressed scenario, Fitch believes that a 5.5x multiple
reflects a conservative view of Algeco's post-restructuring
value. This multiple is derived from the analysis of publicly
traded comparable companies in the building materials and
equipment rental industries. Fitch believes this multiple also
reflects Algeco's new scale in Europe, profitability and
geographic diversification in a consolidating industry. Fitch has
also assumed a 10% administrative claim in the recovery analysis.

Algeco's asset-based lending (ABL) facility has a first lien on
assets under certain jurisdictions (Australia, New Zealand and
the UK) and a second lien on the assets in the rest of the world.
Fitch assumes the assets under ABL jurisdiction will be able to
cover the USD255 million commitment amount of the ABL and
therefore views the instrument as super senior to the senior
secured notes.

Under these assumptions, recoveries for the ABL facility are
strong (100% but capped at 'RR2' due to France's country cap).
Recoveries for senior secured noteholders (including the planned
EUR125 million tap issue) stand at 56%, resulting in a long-term
rating of 'B+'/'RR3', one notch above Algeco's Long-Term IDR.
Recoveries for senior unsecured notes are zero (RR6), resulting
in a rating two notches below Algeco's Long-Term IDR.

Fitch's key rating case assumptions are in line with those
previously outlined.

RATING SENSITIVITIES

IDR

The Negative Outlook on Algeco's Long-Term IDR reflects Fitch's
view that a downgrade could result from the following factors
(either individually or collectively):

  - Any slippage in EBITDA improvements in line with management
projections in the short to medium term;

  - Inability to improve the company's free cash flow (which is
projected to be negative in 2018);

  - Material increase in net cash flow leverage if not
accompanied by a significant and sustained reduction in gross
cash flow leverage;

  - Inability to improve interest coverage ratios, in particular
if accompanied with a material reduction in unrestricted cash on
balance sheet

In addition, utilisation rate stress (in particular if combined
with unchanged capex) or inability to realise revenue
improvements due to re-pricing and increase of additional
services would lead to a downgrade. Increase of revenue
concentration by client or sector (notably construction) would
also put pressure on Algeco's ratings.

Given the Negative Outlook, positive rating triggers are limited
in the short term. A notable reduction of gross leverage to
around 6.5x or below on a FFO adjusted basis could lead to a
revision of the Outlook to Stable from Negative.

SENIOR SECURED AND UNSECURED NOTES

The ratings of the notes (including the planned EUR125 million
tap issue) are sensitive to a change in Algeco's Long-Term IDR.
Changes leading to a material reassessment of potential recovery
prospects, for instance, change in equipment valuation or
competitive environment would trigger a change in the rating.

The rating actions are as follows:

Algeco Global S.a.r.l.

Long-Term IDR affirmed at 'B'; Outlook revised to Negative from
Stable

Algeco Global Finance plc

Senior secured long-term rating (XS1767053884; XS1767052050;
USG0229BAH62) affirmed at 'B+'/'RR3'

Algeco Global Finance 2 plc (USG0231EAA13)

Senior unsecured long-term rating affirmed at 'CCC+'/'RR6'


ALGECO INVESTMENTS: S&P Places 'B-' ICR on CreditWatch Negative
---------------------------------------------------------------
S&P Global Ratings placed on CreditWatch with negative
implications its 'B-' long-term issuer credit rating on
Luxembourg-headquartered modular space leasing group Algeco
Investments B.V.

S&P said, "At the same time, we placed on CreditWatch negative
our 'B-' issue rating on the group's EUR1,190 million senior
secured notes and 'CCC' issue rating on its EUR258 million senior
unsecured notes.

"The CreditWatch placement reflects our view that Algeco faces
refinancing risks and potential liquidity pressure if it fails to
execute a tap on its existing notes as planned."

The company intends to place a EUR125 million tap on its existing
notes and use the proceeds to repay an existing EUR96 million
facility (accounted for as capital lease in the company's
accounts) that matures on Dec. 15, 2018.S&P said, "In our view,
the very short timeframe between the proposed notes tap and the
debt maturity has resulted in elevated refinancing risk and
potential liquidity constraints. We also note that conditions in
the debt capital markets can be volatile, especially in the high-
yield space, which underpins our concern on the timeliness of the
execution."

The company's alternative refinancing plan is to use existing
cash and draw heavily on its $400 million ABL facility, of which
EUR92 million is currently available. Algeco confirmed that the
ABL's documentation allows the funds to become available on short
notice and can be used to repay debt. Nevertheless, this would
likely weigh on the group's liquidity and its springing leverage
covenant (tested at 6.25x), under which we forecast very thin
headroom. In such a scenario, S&P would likely negatively
reassess Algeco's liquidity, currently in its adequate category,
and could lower the rating.

Over the first nine months of 2018, Algeco demonstrated steady
progression of its operating results. Revenues increased by 17%
to EUR704 million (adjusting for the impact of foreign currency
fluctuations and excluding Target Lodging) and underlying EBITDA
improved to EUR170 million (versus EUR127 million a year ago,
before restructuring and one-offs). In the third quarter, the
Touax integration weighed on some of the operating indicators.
Modular space pricing declined by 2%, but excluding Touax it
would have increased by 4%. Value-added products and services
revenue per unit declined marginally, but excluding Touax it was
up by 11%. Fleet utilization decreased slightly by 50 basis
points to 81.5%, with improvement in Asia-Pacific offset by a
minor decline in Europe.

Algeco recently entered into a definitive agreement to sell its
North American remote accommodation business, Target Lodging. A
consideration of EUR708 million would be paid in cash for up to
EUR486 million and in shares for the remaining EUR223 million.
Algeco would own common stock of Platinum Eagle Acquisition
Corp., a special purpose acquisition company listed on the NASDAQ
in New York. This listed company would also acquire Signor
Holding from TDR (private equity owner of Algeco), a lodging
network business. S&P said, "We assess Algeco's financial risk
profile as highly leveraged, and we don't net cash from our
calculations of the group's gross debt, or give any credit to the
common shares value, which we see as illiquid and uncertain.
However, if the disposal were completed according to plan, such
large cash balances would provide a sizable liquidity buffer for
Algeco."

S&P said, "We aim to resolve the CreditWatch in the next two to
three weeks once we have more information on whether Algeco has
either tapped its existing notes, used cash and ABL proceeds to
meet the EUR96 million debt maturity, or used alternative
funding.

"We would negatively reassess Algeco's liquidity and lower the
ratings by one notch or more if the group failed to execute the
refinancing. This could be due to either delays or difficulties
in tap execution, or unforeseen circumstances related to the
drawing of the ABL.

"We could affirm the ratings if Algeco successfully completed its
refinancing, without weakening its liquidity, and maintained its
ABL as a potential source for working capital funding. If the tap
is completed, the recovery ratings would remain unchanged."


=================
M A C E D O N I A
=================


TOPLIFIKACIJA AD: Shares Delisted Following Bankruptcy
------------------------------------------------------
The Board of Directors of the Macedonian Stock Exchange on the
session held on Nov. 23 decided to remove the ordinary shares
issued by Toplifikacija AD Skopje from listing on the Macedonian
Stock Exchange, due to an opened bankruptcy procedure.

Shares issued by Toplifikacija AD Skopje were to be delisted from
the Official Market starting from Nov. 26.


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


BARINGS EURO 2018-3: Moody's Assigns (P)B2 Rating to Cl. F Notes
----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to the notes to be issued by
Barings Euro CLO 2018-3 B.V.:

EUR 231,800,000 Class A-1 Senior Secured Floating Rate Notes due
2032, Assigned (P)Aaa (sf)

EUR 12,200,000 Class A-2 Senior Secured Fixed Rate Notes due
2032, Assigned (P)Aaa (sf)

EUR 10,000,000 Class B-1 Senior Secured Floating Rate Notes due
2032, Assigned (P)Aa2 (sf)

EUR 30,000,000 Class B-2 Senior Secured Fixed Rate Notes due
2032, Assigned (P)Aa2 (sf)

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

EUR 24,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)Baa3 (sf)

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

EUR 10,000,000 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 Barings (U.K.)
Limited has sufficient experience and operational capacity and is
capable of managing this CLO.

The Issuer is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured obligations and up to
10% of the portfolio may consist of senior unsecured obligations,
second-lien loans, mezzanine obligations and high yield bonds.
The portfolio is expected to be at least 70% ramped as of the
closing date and to be comprised of predominantly corporate loans
to obligors domiciled in Western Europe. The remainder of the
portfolio will be acquired during the 6 months ramp-up period in
compliance with the portfolio guidelines.

Barings 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 1/2-year reinvestment period.
Thereafter, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from sales of credit
risk obligations and/or credit improved obligations, and are
subject to certain restrictions.

In addition to the eight classes of notes rated by Moody's, the
Issuer will issue EUR 39,000,000.00 of Subordinated Notes which
are not rated by Moody's.

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.

The Credit Ratings of the notes issued by Barings Euro CLO 2018-3
B.V. were assigned in accordance with Moody's existing
Methodology entitled "Moody's Global Approach to Rating
Collateralized Loan Obligations" dated August 31, 2017. Please
note that on November 14, 2018, Moody's released a Request for
Comment, in which it has requested market feedback on potential
revisions to its Methodology for Collateralized Loan Obligations.
If the revised Methodology is implemented as proposed, the Credit
Rating of the notes issued by Barings Euro CLO 2018-3 B.V. may be
neutrally affected. Please refer to Moody's Request for Comment,
titled " Proposed Update to Moody's Global Approach to Rating
Collateralized Loan Obligations" for further details regarding
the implications of the proposed Methodology revisions on certain
Credit Ratings.

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 400,000,000.00

Diversity Score: 44

Weighted Average Rating Factor (WARF): 2850

Weighted Average Spread (WAS): 3.65%

Weighted Average Coupon (WAC): 4.50%

Weighted Average Recovery Rate (WARR): 42.50%

Weighted Average Life (WAL): 8.5 years

Moody's has addressed the potential exposure to obligors
domiciled in countries with local currency ceiling of "A1" or
below. As per the portfolio constraints and eligibility criteria,
exposures to countries with LCC of below "Aa3" cannot exceed 10%
and obligors cannot be domiciled in countries with LCC below
"A3".


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


ABANCA CORPORACION: S&P Affirms 'BB+/B' ICRs, Outlook Stable
------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+/B' long- and short-term
issuer credit ratings on Spain-based Abanca Corporacion Bancaria
S.A. (Abanca). The outlook is stable.

The affirmation follows Abanca's announcement that the Portuguese
government has approved its offer to acquire 99.79% of the share
capital of Banco Caixa Geral S.A., the Spanish subsidiary of
Portuguese government-owned Caixa Geral de Depositos S.A. The
acquisition is expected to complete in 2019. The affirmation
reflects S&P's view that the impact of the acquisition on
Abanca's overall financials will be limited and that it will not
materially change the entity's credit profile.

S&P said, "Specifically, we consider that the acquisition will
constrain Abanca's capitalization. However, we estimate that the
overall impact will be limited, resulting in a reduction of about
40 basis points of Abanca's 2019 risk-adjusted capital (RAC)
ratio. That said, we expect that Abanca will continue improving
its earnings retention and could benefit from further capital
gains on the disposal of noncore assets, as has been the case in
recent years. We therefore anticipate that Abanca's RAC ratio
will stand in the 7.0%-7.5% range by end-2019." A further easing
of Spain's economic risks could add some additional 70 bps to
Abanca's RAC ratio.

From a funding perspective, Abanca will consolidate a slightly
unbalanced business comprising EUR3.4 billion of loans and EUR2.9
billion of deposits. The size of assets acquired, however, is
relatively contained in Abanca's total balance sheet. S&P
therefore expect that its loan-to-deposit ratio will deteriorate
only slightly to around 93% from 91% at end-September 2018, and
might gradually approach 100% if its loan book continues
expanding more rapidly than its deposit base.

Banco Caixa Geral has undergone an important restructuring since
2013 and displays better asset quality indicators. S&P therefore
do not expect Abanca's credit profile to weaken. In particular,
Banco Caixa Geral reported a problem loans ratio of 3.1% at end-
2017, compared to Abanca's 5.2% as of the same date, and a
coverage of problem loans of 57% compared with Abanca's 52%.

S&P said, "We consider that the acquisition will allow Abanca to
grow its business volumes further and provide some additional
revenue generation. Banco Caixa Geral reported gross loans of
EUR3.5 billion at end-2017, representing around 12% of Abanca's
total gross loans and revenues. That said, we do not expect any
significant contribution to Abanca's income statement next year,
given that restructuring costs could partly offset potential
benefits. Overall, we believe that execution risk is low and the
integration will be manageable for the bank, given its relatively
limited size, long due diligence process, and the fact that it is
based in the same market.

"The stable outlook reflects our view that Abanca's
creditworthiness is unlikely to change in the next 12-18 months.
We currently expect that Abanca's RAC ratio will remain adequate
at around 7.0%-7.5% next year, including the recently announced
acquisition of Banco Caixa Geral in Spain. An easing of economic
risks in Spain would add about 70 bps to our RAC forecasts, but
this would not be enough for us to consider the bank's capital as
a strength compared to the risks it bears. We also believe that
Abanca will continue to reduce its portfolio of NPAs to less than
6% of gross loans by end-2019, while keeping adequate coverage
levels. Even though we anticipate that Abanca's returns will
improve further, amid a more supportive economic environment, we
believe its underlying profitability will remain limited overall,
with low efficiency when compared with domestic and international
peers.

"We could consider a downgrade if Abanca's risk appetite
increased on the back of steady loan growth, if its
capitalization weakened resulting in a RAC ratio below 7%, or if
the bank faced difficulties in financing new lending with stable
funding sources.

"We could upgrade Abanca if it materially enhanced its efficiency
and underlying profitability to levels closer to those of its
higher rated domestic peers, and if the integration process of
acquired entities is completed smoothly."


CAIXABANK PYMES 9: DBRS Confirms CCC Rating on Series B Notes
-------------------------------------------------------------
DBRS Ratings Limited took the following rating actions on the
bonds issued by CaixaBank PYMES 9, FT (the Issuer):

-- Series A Notes upgraded to A (high) (sf) from A (low) (sf)
-- Series B Notes confirmed at CCC (sf)

The rating of the Series A Notes addresses the timely payment of
interest and ultimate payment of principal on or before the legal
final maturity date. The rating of the Series B Notes addresses
the ultimate payment of interest and principal on or before the
legal final maturity date.

The rating actions follow an annual review of the transaction and
are based on the following analytical considerations:

-- Portfolio performance, in terms of delinquencies, defaults
and losses.

-- Updated probability of default (PD) rate, recovery rate and
expected loss assumptions on the remaining receivables.

-- Current available credit enhancement to the notes to cover
the expected losses at their respective rating levels.

CaixaBank PYMES 9, FT is a cash flow securitization
collateralized by a portfolio of loans and current drawdowns of
revolving mortgage credit lines originated by CaixaBank, S.A.
(the Originator) to small- and medium-sized enterprises and self-
employed individuals based in Spain.

PORTFOLIO PERFORMANCE

As of September 2018, almost one year since closing, two- to
three-month arrears represented 0.01% of the outstanding
portfolio balance, the 90+ delinquency ratio was 1.0% and the
cumulative default ratio was 0.1%.

PORTFOLIO ASSUMPTIONS

DBRS conducted a loan-by-loan analysis on the remaining pool and
updated its PD and recovery assumptions on the outstanding
portfolio to 23.5% and 23.6%, respectively, at the A (high) (sf)
rating level, and to 6.7% and 29.6%, respectively, at the CCC
(sf) rating level.

CREDIT ENHANCEMENT

As of September 2018, the credit enhancement to the Series A and
Series B Notes was 20.3% and 5.6% up from 16.6% and 4.6%,
respectively, since the DBRS initial rating. The credit
enhancement of the Series A Notes considers the subordination of
Series B Notes and the reserve fund (RF). The RF is available to
cover missed interest and principal payments on the Series A
Notes and Series B Notes once the Series A Notes have paid in
full. The reserve fund is currently at its target level of EUR
84.2 million.

CaixaBank, S.A acts as the Transaction Account Bank for the
transaction. On the basis of DBRS's AA (low) public Long-Term
Critical Obligations Rating of CaixaBank and the mitigants
outlined in the transaction documents, DBRS considers the risk
arising from the exposure to the Account Bank to be consistent
with the rating assigned to the Series A Notes.

Notes: All figures are in euros unless otherwise noted.


CAIXABANK PYMES 10: DBRS Puts Prov. CCC Rating to Series B Notes
----------------------------------------------------------------
DBRS Ratings Limited assigned provisional ratings to the
following notes issued by CaixaBank PYMES 10, FT (the Issuer):

-- EUR 2,793.0 million Series A Notes rated AA (low) (sf) (the
     Series A Notes)

-- EUR 532.0 million Series B Notes rated CCC (sf) (the Series B
     Notes; together with the Series A Notes, the Notes)

The transaction is a cash flow securitization collateralized by a
portfolio of secured and unsecured loans and drawdowns of secured
and unsecured lines of credit originated by CaixaBank, S.A.
(CaixaBank or the Originator) to small and medium-sized
enterprises and self-employed individuals based in Spain. As of
23 October 2018, the transaction's provisional portfolio included
65,807 loans and drawdowns of secured and unsecured lines of
credit to 57,714 obligor groups, totalling EUR 3,466 million.

At closing, the Originator will select the final portfolio of EUR
3,325 million from the provisional pool.

The rating of the Series A Notes addresses the timely payment of
interest and the ultimate payment of principal on or before the
Legal Maturity Date in October 2051. The rating of the Series B
Notes addresses the ultimate payment of interest and the ultimate
payment of principal on or before the Legal Maturity Date in
October 2051.

Interest and principal payments on the Notes will be made
quarterly on the 25th of January, April, July and October, with
the first payment date on April 25, 2019. The Notes will pay an
interest rate equal to three-month Euribor plus 1.00% and 1.25%
for the Series A Notes and Series B Notes, respectively.

The provisional pool presents relatively low industry
concentration and is well diversified in terms of borrowers.
There is some concentration of borrowers in Catalonia (30.4% of
the portfolio balance), which is to be expected given that
Catalonia is the Originator's home region. The top ten, twenty
and 30 obligor groups represent 4.6%, 7.0% and 9.0% of the
portfolio balance, respectively. The top three industry sectors
according to DBRS's industry definition are Building &
Development, Business Equipment & Services and Farming &
Agriculture, representing 22.5%, 9.5% and 9.2% of the portfolio
outstanding balance, respectively.

These ratings are based on DBRS's review of the following items:

  -- The transaction structure, form and sufficiency of available
credit enhancement and portfolio characteristics.

  -- At closing, the Series A Notes benefit from total credit
enhancement of 20.75%, which DBRS considers to be sufficient to
support the AA (low) (sf) rating. The Series B Notes benefit from
credit enhancement of 4.75%, which DBRS considers to be
sufficient to support the CCC (sf) rating. Credit enhancement is
provided by subordination and the Reserve Fund.

  -- The Reserve Fund will be allowed to amortize after the first
year if certain conditions relating to the performance of the
portfolio and deleveraging of the transaction have been met.

  -- The transaction parties' financial strength and capabilities
to perform their respective duties and the quality of
origination, underwriting and servicing practices.

DBRS determined these ratings as follows, per the principal
methodology specified below:

  -- The probability of default (PD) for the portfolio was
determined using the historical performance information supplied.
DBRS compared the internal rating distribution of the portfolio
with the internal rating distribution of the loan book and
concluded that the portfolio was of marginally better quality
than the overall loan book. DBRS determined the portfolio PD
using the historical performance information supplied. DBRS
assumed an annualized PD of 1.0% for secured loans and 3.1% for
unsecured loans.

  -- The assumed weighted-average life (WAL) of the portfolio is
3.9 years.

  -- The PD and WAL were used in the DBRS Diversity Model to
generate the hurdle rate for the respective ratings.

  -- The recovery rate was determined by considering the market
value declines for Spain, the security level and the type of
collateral. For the Series A Notes, DBRS applied the following
recovery rates: 55.6% for secured loans and 15.8% for unsecured
loans. For the Series B Notes, DBRS applied the following
recovery rates: 71.9% for secured loans and 21.5% for unsecured
loans.

  -- The break-even rates for the interest rate stresses and
default timings were determined using the DBRS cash flow tool.

Notes: All figures are in euros unless otherwise noted.


CAIXABANK RMBS 3: DBRS Confirms CC Rating on Series B Notes
-----------------------------------------------------------
DBRS Ratings Limited confirmed the following ratings on the bonds
issued by Caixabank RMBS 3, FT (the Issuer):

-- Series A Notes at A (low) (sf)
-- Series B Notes at CC (sf)

The rating of the Series A Notes addresses the timely payment of
interest and ultimate payment of principal on or before the legal
final maturity date. The rating of the Series B Notes addresses
the ultimate payment of interest and principal on or before the
legal final maturity date.

The rating actions follow an annual review of the transaction and
are based on the following analytical considerations:

  -- Portfolio performance, in terms of delinquencies, defaults
and losses.

  -- Portfolio default rate (PD), loss given default (LGD) and
expected loss assumptions on the remaining receivables.

  -- Current available credit enhancement to the Series A Notes
to cover the expected losses at the A (low) (sf) rating level.

Caixabank RMBS 3, FT is a securitization of Spanish residential
mortgage loans and drawdowns of mortgage lines of credit secured
over residential properties located in Spain and originated and
serviced by CaixaBank, S.A. (CaixaBank). The Issuer used the
proceeds of the Series A and Series B notes to fund the purchase
of the mortgage portfolio. In addition, CaixaBank provided
separate additional subordinated loans to fund both the initial
expenses and the Reserve Fund.

PORTFOLIO PERFORMANCE

As of September 2018, almost one year since closing, two- to
three-month arrears represented 0.01% of the outstanding
portfolio balance. The 90+ delinquency ratio was 0.9%, up from
0.2% in March 2018. As of September 2018, the cumulative default
ratio was 0.0%.

PORTFOLIO ASSUMPTIONS

DBRS conducted a loan-by-loan analysis on the remaining pool and
updated its PD and LGD assumptions on the remaining portfolio
collateral pool to 21.6% and 57.2%, respectively, at the A (low)
(sf) rating level.

CREDIT ENHANCEMENT

As of the September 2018 payment date, credit enhancement to the
Series A Notes was 15.5%, up from 14.5% at the DBRS initial
rating. The Series A Notes benefit from credit enhancement
provided by the Series B Notes and a transaction Reserve Fund
(RF). The RF provides liquidity support and credit support to the
Series A Notes. After the first two years since closing, the RF
may amortize over the life of the transaction subject to certain
amortization triggers. The RF is currently at its target level of
EUR 114.8 million. Following the payment in full of the Series A
Notes, the transaction RF will also provide liquidity and credit
support to the Series B Notes.

CaixaBank acts as the account bank for the transaction. The
account bank reference rating of A (high) - being one notch below
the DBRS public Long-Term Critical Obligations Rating of
CaixaBank of AA (low), is consistent with the Minimum Institution
Rating given the rating assigned to the Series A Notes, as
described in DBRS's "Legal Criteria for European Structured
Finance Transactions" methodology.

Notes: All figures are in euros unless otherwise noted.


FTA SANTANDER 2014-1: DBRS Confirms C Rating on Class E Notes
-------------------------------------------------------------
DBRS Ratings Limited confirmed the bonds issued by FTA Santander
Consumer Spain Auto 2014-1 (the Issuer) as follows:

-- Class A Notes at A (sf)
-- Class B Notes at BBB (sf)
-- Class C Notes at BB (sf)
-- Class D Notes at B (sf)
-- Class E Notes at C (sf)

The rating on the Class A Notes addresses the timely payment of
interest and ultimate payment of principal on or before the legal
final maturity date. The ratings on the Class B Notes, Class C
Notes, Class D Notes and Class E Notes address the ultimate
payment of interest and principal on or before the legal final
maturity date.

The rating actions follow an annual review of the transaction and
are based on the following analytical considerations:

  -- Portfolio performance, in terms of delinquencies and
defaults, as of September 2018.

  -- Portfolio default (PD) rate, loss given default and expected
loss assumptions for the collateral pool.

  -- Given the transaction is still in its revolving period, no
early amortization events have occurred.

  -- Current available credit enhancement to the Class A, Class
B, Class C and Class D Notes to cover the expected losses at
their current rating levels.

  -- The rating of the Class E Notes is based on DBRS's review of
the following considerations: (1) the Class E Notes are in the
first-loss position and, as such, are highly likely to default,
and (2) given the characteristics of the Class E Notes as defined
in the transaction documents, the default most likely would only
be recognized at the maturity or early termination of the
transaction.

FTA Santander Consumer Spain Auto 2014-1 is a securitization of a
portfolio of auto loan receivables issued in Spain and originated
and serviced by Santander Consumer E.F.C., S.A.

PORTFOLIO PERFORMANCE, ASSUMPTIONS AND REVOLVING PERIOD

The transaction is still in its four-year revolving period, which
is scheduled to end in December 2018. During this period, the
Issuer may purchase additional receivables. There are
concentration limits and portfolio tests in place to mitigate any
potential deterioration. To date, all of them have been met.

As of September 2018, two- to three-month arrears represented
0.5% of the outstanding portfolio balance, up from 0.4% in
September 2017. As of September 2018, the 90+ delinquency ratio
was 0.9%, up from 0.7% the previous year. As of September 2018,
the cumulative loss ratio was 0.3%. DBRS has updated its base
case PD and loss given default (LGD) assumptions to 12.00% and
50.47%, respectively.

CREDIT ENHANCEMENT

As of the September 2018 payment date, credit enhancement to the
Class A, B, C and D Notes were 12.5%, 8.9%, 6.9% and 5.0%,
respectively. All credit enhancement has been stable since the
DBRS initial rating because of the transaction revolving period
ending in December 2018.

The transaction benefits from a Reserve Fund funded through the
issuance of the Class E Notes that covers senior fees, interest
and principal on the Class A, Class B, Class C and Class D Notes,
and is permitted to amortize once certain conditions have been
met. The reserve fund is currently at its target level of EUR 38
million. The transaction includes a liquidity reserve and
commingling reserve that will be made available upon the breach
of certain triggers.

Santander Consumer Finance S.A. is the account bank for the
transaction. The DBRS private rating of the account bank is
consistent with the Minimum Institution Rating, given the rating
assigned to the Class A Notes, as described in DBRS's "Legal
Criteria for European Structured Finance Transactions"
methodology.

Notes: All figures are in euros unless otherwise noted.


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


SBAB BANK: S&P Puts BB+ Tier I Instruments Rating on Watch Neg.
---------------------------------------------------------------
S&P Global Ratings said that it has affirmed the long- and short-
term issuer credit ratings on:

  SBAB (A/A-1)
  Landshypotek (A-/A-2)
  Lansforsakringar Bank (A/A-1)
  Sparbanken Skane (A-/A-2)

The outlooks on these banks remain stable.

At the same time, S&P placed on CreditWatch with negative
implications its 'BB+' ratings on the perpetual non-cumulative
additional tier I instruments of SBAB and Landshypotek.

RATIONALE

S&P's ratings continue to reflect the banks' overall solid
capitalization and sound asset quality. Moreover, their ownership
models provide stability to their capital bases, supporting sound
levels of retained profits. These elements compensate their
higher business and geographical concentrations in what is
otherwise one of the most supportive banking markets in Europe.

The affirmations also take into account that the banks will
likely start issuing subordinated debt instruments from next year
to build their bail-in buffers. Specifically, the National Debt
Office (RiksgÑlden) announced in December 2017 that these four
banks were among those considered critical to the domestic
financial system and has applied a substantial minimum
requirement for own funds and eligible liabilities (MREL) to each
bank, to be met by 2022. Subsequently, the resolution authority
clarified in June 2018 that the banks need to meet MREL with
subordinated liabilities only--a policy that is consistent with
the U.K. and Switzerland but more demanding than we currently see
elsewhere in Europe.

S&P said, "We see this as potentially positive for senior
unsecured creditors as each of the institutions will need to hold
a substantial amount of liabilities that can be written down or
converted to equity to restore the bank's own funds in a crisis
before senior unsecured creditors would be exposed to losses. As
a result, we consider that, as the banks start to build these
buffers, we could potentially recognize the protection for senior
bondholders by including ALAC notches in our issuer credit
ratings on these banks. However, we still lack visibility on the
banks' ability to issue sizable subordinated debt (about SEK40
billion-SEK45 billion based on our estimates) within the
indicated timeframe; for example, Swedish banks still do not have
legal capacity to issue senior non-preferred debt on a statutory
basis. We understand that the law introducing senior non-
preferred debt as a new asset class in Sweden will come into
force on Dec. 29, 2018. Second, while we see the MREL
requirements as likely consistent with an intended full
recapitalization of these mid-size banks, we also look for more
clarity on the associated resolution processes. When considering
eligibility for uplift, our ALAC criteria look for a well-defined
resolution strategy that ensures not only full but also timely
payment for all senior unsecured (preferred) debt."

Specifically, some uncertainties remain as to how the resolution
will work if strategies other than an open bail-in route are
followed. Moreover, the effectiveness of ALAC under a resolution
framework also depends on clear emergency funding and liquidity
mechanisms provided by the authorities to prevent banks failing
because of illiquidity. This is even more important for the mid-
sized Swedish banks, in S&P's view, as they generally show high
levels of encumbrance and therefore may have relatively lower
available assets to access collateralized central bank
refinancing if needed.

S&P said, "We are affirming our ratings on LF Bank because we
continue to see its creditworthiness hinging on its integral role
within the LÑnsfîrsÑkringar group of insurance alliances (LF
Alliance), which in our view would provide ongoing and
extraordinary group support, if needed. LF Bank might start to
issue a substantial volume of bail-inable instruments to meet
MREL while we consider the resolution process to be potentially
complex. This reflects our expectation that, consistent with the
approach of other bank resolution authorities, RiksgÑlden would
seek to preserve the banking business but not the insurance
business, and it also reflects LF Bank's very close
interconnectedness with the wider group, including insurance
activities and a partially shared client base. Although it is a
remote scenario at this stage, LF Bank could be rated above its
group credit profile (GCP; 'a') if we view it as resolvable,
insulated (e.g. less dependence of its financial performance from
the group), and if it builds up a bail-in buffer that merits two
notches of ALAC uplift.

"Our affirmation of our ratings on SBAB acknowledge RiksgÑlden's
objective of making the bank more resolvable, but reflects the
fact that we expect that its creditworthiness will continue to be
primarily driven by potential extraordinary government support.
Although, in our view, the EU's Bank Recovery and Resolution
Directive reduces the predictability of extraordinary government
support for normal commercial banks, we currently see no material
impediment to timely, proactive support for SBAB from the Swedish
government, given that it is already the shareholder. We also see
no reduced willingness from the government to support SBAB in
case of need."

Landhypotek and Skane are among the smallest banks to be
considered critical by the Swedish authority. S&P said, "While
the ratings affirmation reflects their positive and stable
financial performance, we remain cautious about potential ALAC
uplift. Specifically, it will take time before they demonstrate
an ability to tap the market for bail-inable debt and we would
also need more clarity on their resolution strategies including,
for example, funding and liquidity support from the Swedish
authorities." In fact, Sparebanken Skane has access to the
central bank only via Swedbank, while Landshypotek has already
high balance sheet encumbrance (65%).

S&P said, "If, in future, we see the banks as likely to be
subject to a well-defined bail-in resolution process, this would
mean that we could potentially incorporate ALAC uplift into our
ratings on the banks. However, as for other European banks, we
would also consider qualitative factors that could merit an
adjustment to the thresholds for ALAC uplift. At this stage, we
consider an upward threshold adjustment likely, for example, if
we expect the banks to have relatively concentrated maturities of
ALAC instruments or we see notable risk concentrations in each
bank's operations."

CREDITWATCH

S&P said, "The CreditWatch placements on SBAB and Landshypotek's
additional Tier I (AT1) instruments reflects our view that the
buffer between the banks' regulatory common equity tier 1 and the
mandatory going-concern trigger might be below 700 basis points,
leading us to widen the notching on the affected instruments due
to increased risk of nonpayment, write-down, or conversion.
Specifically, this could in turn lead to a one-notch downgrade of
the instruments.

"Starting from Dec. 31, 2018, the Swedish FSA will apply risk
weights on domestic mortgage exposures by establishing a hard
Pillar 1 requirement under the Basel framework on banks using
internal rating-based models, instead of the current institute-
specific Pillar 2 requirements. Although this is a technical
change and it does not directly affect the regulatory capital
requirements in nominal terms, or our measure of risk-adjusted
capital, it reduces the regulatory capital ratios and, in turn,
the distance to AT1 mandatory going-concern triggers.

"We aim to resolve the CreditWatch placements within the next
three months once we have more visibility on the regulatory
capital ratios under the new rules and their expected short-
medium term evolution."

OUTLOOKS

SBAB: STABLE

S&P said, "The stable outlook on SBAB Bank AB reflects our
expectation that the bank will maintain robust capitalization
over the next two years, with its RAC ratio in the range of about
12%-13% and loan losses remaining low, despite a higher-than-
peers loan volumes target. The outlook also incorporates our
assessment that a change in ownership is unlikely in the short to
medium term and the Swedish government would likely provide
timely support to the bank if needed.

"We could raise the rating if we believed that the bank would be
subject to a well-defined resolution strategy that would likely
ensure full and timely payment on all of the bank's senior
preferred obligations, and if the bank has issued sufficient
bail-inable debt instruments to merit two notches of ALAC uplift
above its 'a-' stand-alone credit profile. At the same time, an
upgrade would also hinge on our opinion that an 'A+' rating was
merited compared with similarly highly-rated peers in Europe and
beyond.

"We could take a negative rating action if we observed changes in
the bank's risk appetite or operating conditions that might
weaken asset quality or if the RAC ratio were to fall below 10%."

LANSFORSAKRINGAR BANK: STABLE

S&P said, "Our stable outlook on LF Bank reflects our expectation
that the bank will maintain its core status within LF Alliance
over the next two years. It also mirrors our outlook on LF
Alliance's primary operating company, LÑnsfîrsÑkringar Sak
FîrsÑkrings AB (LF Sak; A/Stable/--).

"Any rating action on LF Sak, positive or negative, would reflect
a change in our assessment of the wider LF Alliance and will
result in a corresponding action on LF Bank.

"We expect LF Bank will continue to expand its lending, deposit,
and funding base, as well as stable earnings, over the next two
years. In our view, the bank's lending growth will exceed that of
the Swedish banking industry average, at 10%-15% per year, which
supports our expectations of a somewhat declining RAC ratio of
around 13%-14%, by our measures. If we were to revise downward
our assessment of the bank's SACP, it would not affect our
ratings on the bank, given its status as a core subsidiary of
LÑnsfîrsÑkringar AB (LF AB), within LF."

LANDSHYPOTEK: STABLE

S&P said, "The stable outlook on agricultural and forest property
lender Landshypotek reflects our view that management will remain
committed to keeping the bank highly capitalized, with a RAC
ratio sustainably above 15% over the next two years. At the same
time, we expect the bank to preserve strong lending principles
while growing its loan book, including upholding a low loan-to-
value profile and prudent growth in the recently entered retail
mortgage market.

"We could take a positive rating action on Landshypothek if the
bank maintains its intrinsic credit strength and, at the same
time, it builds a sustainable buffer of bail-inable debt
instruments backed by a well-defined resolution strategy that
would likely ensure full and timely payment on all of the bank's
senior preferred obligations. This could lead us to incorporate
ALAC uplift into the ratings. However, before doing so, we would
compare Landshypotek with other highly rated peers in Europe and
beyond to ensure that this view of relative creditworthiness were
merited.

"We could take a negative rating action over the next two years
if we saw a weakening of Landshypotek's superior risk-adjusted
capitalization compared to peers. This could happen, for example,
if the RAC ratio falls below 15% as a result of lower-than-
expected retained earnings, higher loan losses due to asset
quality deterioration, or lower capital contributions from
members."

SPARBANKEN SKANE: STABLE

S&P said, "Our stable outlook on Sparbanken SkÜne reflects our
expectation that the bank will continue its relationship with
Swedbank and keep its leading position in its local market. We
expect Sparbanken SkÜne to protect its robust capitalization
while expanding its balance sheet over the next two years.

"We could upgrade the bank if the bank maintains its intrinsic
credit strength and, at the same time, it builds a sustainable
buffer of bail-inable debt instruments backed by a well-defined
resolution strategy that would likely ensure full and timely
payment on all of the bank's senior preferred obligations. This
could lead us to incorporate ALAC uplift into the ratings. For
this to happen, we would also need to be confident that its
creditworthiness was in line with higher rated peers.

"We could take a negative rating action if we saw indications of
discontinued cooperation with Swedbank, which could lead us to
reassess the bank's business and funding profile. Similarly, we
could downgrade the bank if we observed changes in its risk
appetite or operating conditions that might lead to a weakening
of asset quality and capital generation."

  RATINGS LIST

  Ratings Affirmed; CreditWatch Action
                                          To                 From
  SBAB Bank AB (publ)
  Landshypotek Bank AB
   Junior Subordinated                    BB+/Watch Neg      BB+

  Ratings Affirmed

  Landshypotek Bank AB
   Issuer Credit Rating                   A-/Stable/A-2
   Subordinated                           BBB

  Lansforsakringar Bank
   Issuer Credit Rating                   A/Stable/A-1
   Nordic Regional Scale                  --/--/K-1
   Certificate Of Deposit                 A/A-1
   Senior Unsecured                       A
   Subordinated                           BBB+
   Junior Subordinated                    BBB-
   Certificate Of Deposit                 K-1

  SBAB Bank AB (publ)
   Issuer Credit Rating                   A/Stable/A-1
   Nordic Regional Scale                  --/--/K-1
   Senior Unsecured                       A
   Subordinated                           BBB
   Commercial Paper                       A-1
   Commercial Paper                       K-1

  Sparbanken Skane
   Issuer Credit Rating                   A-/Stable/A-2
   Nordic Regional Scale                  --/--/K-1


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


FRIGO-PAK: Istanbul Court Removes Trustee
-----------------------------------------
Taylan Bilgic at Bloomberg News reports that the court in
Istanbul has ruled that Frigo-Pak is no longer debt-choked.

According to Bloomberg, seeing no need to rule for bankruptcy
postponement, the court removed interim injunction on the company
and removed its appointed trustee.

Frigo-Pak is a Turkey-based company engaged in the production,
processing and packaging of canned and frozen fruits.



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


PATISSERIE VALERIE: Parent Firm in Talks to Replace Auditor
-----------------------------------------------------------
Sky News reports that Patisserie Valerie's crisis-hit parent
company is in talks to replace its auditor just days after the
accounting watchdog launched a probe into financial
irregularities which brought the chain to the brink of collapse.

Sky News has learnt that Patisserie Holdings, which has parted
company with its chief executive and chief financial officer
during a torrid few weeks, has kicked off a process to identify a
replacement for Grant Thornton, the company's auditor since 2006.

The cafe chain was plunged into the mire last month when it
confirmed that it had been notified of "potentially fraudulent"
accounting irregularities, Sky News recounts.

The apparent fraud resulted in estimated revenue and profits for
the year to September being slashed to GBP120 million and GBP12
million respectively, Sky News discloses.

It set off a chain of events including the suspension, and
subsequent resignation, of Chris Marsh, the chief financial
officer, who was arrested by police on Oct. 12 before being
released on bail, Sky News relays.

Luke Johnson, the executive chairman who has made fortunes from a
string of restaurant chains including Pizza Express, stumped up
GBP20 million to keep the business afloat, with City investors
also pumping millions of pounds in by buying new shares, Sky News
states.

Candidates to replace Grant Thornton, which is continuing to
audit the figures for the last financial year, are likely to
include Deloitte and EY, with PricewaterhouseCoopers said to be
ruled out because of forensic accounting work it has been brought
into undertake, Sky News notes.


PINEWOOD GROUP: Fitch Corrects December 7, 2017 Press Release
-------------------------------------------------------------
Fitch Ratings replaced a ratings release published on December 7,
2017 to correct the name of the obligor for the bonds.

Fitch Ratings has assigned a final Issuer Default Rating (IDR) of
'BB' to UK-based film studio real estate owner, Pinewood Group
Limited. Fitch has also assigned a final rating of 'BB+' to
Pinewood Finco plc's 3.75% coupon GBP250 million guaranteed
senior secured bond. The Outlook on the IDR is Stable.

The ratings on Pinewood Group reflect: its position as one of the
key providers globally of studio space to film production
companies, underpinned by the UK's supportive tax regime for UK-
domiciled film production; a long history of film production at
its key sites of Pinewood and Shepperton, with long-standing
customer relationships; a large local network of creative
industry workers; very good access to international transport
links; and an investment-grade capital structure. These strengths
are offset by Pinewood's small size relative to most rated real
estate companies, the short-term nature of its contractual income
base, some concentrations within its tenant base (albeit
generally strongly rated), and the specialist nature of its two
main assets.

Fitch has provided an uplift of one notch to the GBP250 million
secured bond, reflecting the agency's expectation of outstanding
recovery for bondholders in the event of insolvency or
liquidation. Pinewood Finco's bond is guaranteed by group
entities constituting around 81% of total assets, 86% of turnover
and 89% of adjusted EBITDA (12 months ended September 30, 2017).

KEY RATING DRIVERS

Renowned Studio Infrastructure Provider: Pinewood Group receives:
(i) income from renting out its studios, on-campus offices,
accommodation and workshops; and (ii) after some pass-through
costs, net income from its production-related ancillary services
used by teams who occupy the main studios. Management estimates
that stage, workshop and office costs account for less than 5% of
a large-scale film production's costs. As at June 2017, nearly
all of the group's budgeted revenue for the year to end-March
2018 (FY18) was contracted or reserved. Under new ownership,
Pinewood Group is discontinuing its investment in non-core areas
such as direct film and TV production to focus purely on studio
infrastructure ownership and provision of related services at
Pinewood and Shepperton (both adjacent to London), and its
Atlanta joint venture.

Well-Located Facilities: The long-established Pinewood and
Shepperton studios are hubs of film and TV activity participants,
technology and creativity. The scale and scope of existing and
planned facilities lend themselves to large-scale film
blockbusters, but vacant space can be filled in with smaller
productions. The London studios (some owned by other groups
including Warner Bros at Leavesden) have been home to many recent
film successes, aided by an innate, non-unionised, English-
speaking workforce and expertise, favoured by international
producers, as well as recent GBP depreciation and the UK's long-
standing cross-party supported Film Tax Relief for film-producing
companies.

Ongoing Links to Film Industry: Pinewood remains exposed to the
health of the international and UK film industry, which can
fluctuate according to the success of ideas and creativity,
scheduling of films and their sequels, adjusting to different
delivery platforms (although they all need studios to film their
content), and financial backing. In the UK, gross inflation-
adjusted film revenue across all delivery platforms has remained
around GBP4 billion since 2007. As an independent studio,
Pinewood also attracts inward investment from many of the larger
US studio groups.

Relationships Balance Short-Dated Income: Pinewood Group's rental
profile features much shorter contractual periods than
traditional real estate companies. Fitch takes comfort, however,
from its understanding that some major producers have a film
production pipeline of up to seven years, and the very long-dated
relationships that Pinewood has had with the major global film
production groups. Since 2007, Pinewood Group has housed an
increasing global share of major films with budgets of over
USD100 million, including the James Bond, Disney and Star Wars
franchises. Most of Pinewood Group's rental agreements are with
film productions backed by investment-grade-rated US studios.
Occupancy levels of its stages (measured by revenue) have
averaged 80% over the last 10 years.

Expansion to Improve Flexibility: Fitch expects expansion of
Pinewood East to increase rental visibility and reduce the number
of productions turned away by Pinewood management because of
limited space. Fitch expects this to improve the group's profit
margins over time. The physical space constraints and difficult
UK planning regime for future studio development in the London
catchment point to ongoing demand for Pinewood's facilities,
despite the lack of property company-type contractual long-dated
leases.

Senior Secured Rating: The 3.75% coupon GBP250 million senior
secured guaranteed bond has a one-notch uplift from the IDR. The
attributable value of GBP605 million of collateral (market value
basis) primarily reflects freehold ownership of the Pinewood and
Shepperton studios and is based on a discounted cash flow method
reflecting the projected net operating income generated by
relevant properties, plus surplus land. Alternatively, valued on
an undeveloped land basis, the market value of the group's land
is GBP260 million, although Fitch believes that the group would
be valued as a going concern. Fitch's recovery estimate assumes a
fully drawn super senior GBP50 million revolving credit facility.

DERIVATION SUMMARY

Pinewood Group's IDR reflects the company's stable position as an
infrastructure provider as well as its linkage to the health of
the UK film production industry. Using the independently assessed
GBP605 million market value for its business, the asset base
would be small for an investment-grade property company despite
Pinewood Group having a financial profile commensurate with this
rating level. Pinewood Group's expected cash-flow leverage (net
debt/EBITDA) of about 5.0x and fixed-charge cover (FCC) of 4.0x-
4.5x (after Pinewood East capex) compare with US cinema property
company EPR Properties' (BBB-/Stable) downgrade sensitivity of
leverage of 5.5x and FCC of 2.2x. Similarly rated peers include
Grainger PLC (BB/Stable), a UK residential property owner, with a
highly granular portfolio of units offset by higher leverage of
about 15x.

KEY ASSUMPTIONS

  - The senior secured bond of GBP250 million refinances the
group's existing secured bank debt and upstreams some GBP125
million of proceeds to entities outside the immediate group.

  - Successful completion and occupancy of the c.GBP60 million
Pinewood East Phase II expansion.

  - Continued high occupancy of, and steady rental stream from,
existing studios, which in turn reflects the Pinewood group's
share and conducive contribution towards UK film's output and
successes, and inward investment from US studio groups.

  - Potential expansion plans and overseas investments are
contributory to EBITDA.

RATING SENSITIVITIES

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

  - Less concentrated geographic diversification which directly
contributes to the issuer's profitability (ie not JV)

  - Rental-focused interest cover increasing to over 4.0x

  - Decrease in leverage to below 4.0x

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

  - Decreased occupancy, or reduced rental stream

  - Increase in leverage to 6x and/or decrease in coverage
metrics to below 2.5x

  - Undue speculative development risk within Pinewood East Phase
II, or later delivery

  - Weakening of the UK film industry and its fundamentals,
including UK Film Tax Relief

LIQUIDITY

Fitch expects Pinewood Group's liquidity to be adequate following
the issuance of the GBP250 million bond, with a debt maturity of
December 2023. However, Pinewood Group will be exposed to bullet
refinancing risk at that point. The recovery ratings include a
GBP50 million super-senior revolving credit facility, which Fitch
does not expect to be immediately drawn. Fitch expects Pinewood
to hold about GBP35 million pro forma cash as a result of the
bond issue.

FULL LIST OF RATING ACTIONS

Pinewood Group Limited

  -- Long-Term IDR assigned at 'BB', Outlook Stable

  -- Senior secured rating assigned at 'BB+'

Pinewood Finco plc

  -- GBP250 million Pinewood Group Limited-guaranteed senior
secured bond assigned 'BB+'


TOWER BRIDGE: DBRS Confirms BB(high) Rating on Class E Notes
------------------------------------------------------------
DBRS Ratings Limited confirmed the notes issued by Tower Bridge
Funding No. 1 PLC (the Issuer) as follows:

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

The ratings on the Class A, Class B, Class C, Class D and Class E
notes (together, the Rated Notes) address the timely payment of
interest and ultimate payment of principal on or before the legal
final maturity date.

The confirmations follow an annual review of the transaction and
are based on the following analytical considerations:

  -- Portfolio performance, in terms of delinquencies, defaults
and losses.

  -- Portfolio default rate (PD), loss given default (LGD) and
expected loss assumptions on the remaining receivables.

  -- Current available credit enhancement to the notes to cover
the expected losses at their respective rating levels.

Tower Bridge Funding No. 1 PLC is a securitization of mortgage
loans originated by Belmont Green Finance Limited, a specialist
U.K. mortgage lender that offers a full suite of mortgage
products including owner-occupied, buy-to-let, adverse-credit-
history and interest-only loans. The securitized mortgage
portfolio comprises newly originated first-lien home loans,
originated by BGFL through its Vida Home loans brand. BGFL is the
named mortgage portfolio servicer but delegates its day-to-day
servicing activities to Home loan Management Limited.

PORTFOLIO PERFORMANCE

As of September 2018, the 90+ delinquency ratio was 0.3%, up from
zero at the closing date. The cumulative loss ratio was zero.

PORTFOLIO ASSUMPTIONS

DBRS conducted a loan-by-loan analysis of the remaining pool of
receivables and has updated its base case PD and LGD assumptions
to 7.4% and 21.6%, respectively.

CREDIT ENHANCEMENT

As of the September 2018 payment date, credit enhancement
(calculated as a percentage of the outstanding collateral balance
and provided by subordination of junior classes and the General
Reserve Fund) to the Rated Notes has decreased since issuance.

Credit enhancement to the Class A notes dropped to 19.8% from
20.5% whereas the Class B notes dropped to 14.1% from 15.1%, the
Class C notes dropped to 9.6% from 10.6%, the Class D notes
dropped to 6.0% from 7.1% and the Class E notes dropped to 3.9%
from 5.1% at the DBRS initial rating.

The decrease in credit enhancement is the result of an increase
in undercollateralization resulting from the use of principal
available funds to top up the Liquidity Reserve Fund on the first
interest payment date. As the Liquidity Reserve Fund amortizes,
excess amounts are released through the principal waterfall,
which will reduce the level of undercollateralization in the
transaction.

The transaction benefits from a GBP 3 million Liquidity Reserve
Fund and a 5.8 million General Reserve Fund. The Liquidity
Reserve Fund covers senior fees and interest on the Class A and
Class B notes, while the General Reserve Fund covers senior fees,
interest and principal (via the Principal Deficiency Ledgers) on
the Rated Notes.

Elavon Financial Services DAC, U.K. branch acts as the account
bank for the transaction. The DBRS private rating of Elavon
Financial Services DAC, U.K. Branch is consistent with the
Minimum Institution Rating, given the rating assigned to the
Class A notes, as described in DBRS's "Legal Criteria for
European Structured Finance Transactions" methodology.

NatWest Markets Plc acts as the swap counterparty for the
transaction. DBRS's public Long-Term Critical Obligations Rating
of NatWest Markets Plc at "A" is above the First Rating Threshold
as described in DBRS's "Derivative Criteria for European
Structured Finance Transactions" methodology.

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


WELSH FOOD: Owes Nearly GBP17,000 to Pig Farmer
-----------------------------------------------
BBC News reports that a pig farmer who says he is owed nearly
GBP17,000 by Bodnant Welsh Food Centre said the firm showed a
"lack of respect" to its suppliers.

The food company went into administration in October, but the
liquidators said a potential buyer has been found, BBC relates.

According to BBC, Llanelian pig farmer Gwyndaf Thomas said the
firm "must have known the place was going down for a few months".

Mr. Thomas, who rears rare and traditional breeds of pig, signed
a contract to exclusively supply the food centre, BBC discloses.

His family claim the sum owed for their Pigging Good Pork produce
grew to almost GBP17,000 and the company that ran the centre,
Furnace Farm Ltd, treated their suppliers with disrespect,
BBC states.

Last week, administrators Smith Cooper, announced businessman
Richard Reynolds was close to acquiring the Welsh Food Centre,
BBC recounts.

However, Mr. Thomas and his family have been informed by their
accountant there is little chance they will receive any of the
money they say they are owed, BBC notes.


WILEYFOX: Closes Office in Netherlands After Administration
-----------------------------------------------------------
Telecompaper reports that British smartphone maker Wileyfox has
closed its office in the Netherlands and said it's withdrawing
from the Benelux market.

In a statement on its Facebook page, the company said local
owners of its products can get support going forward from the
British team, over Facebook or the Wiley care app on the phones,
Telecompaper relates.

Wileyfox's British activities went into administration earlier
this year after the investment bank backing the company fell
short of funds due to the collapse of a Russian bank,
Telecompaper recounts.

In March, Wileyfox agreed to work with STK on a relaunch and
started a restructuring, Telecompaper discloses.  No new products
have been released since early 2017, Telecompaper notes.


===============
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 * * *