/raid1/www/Hosts/bankrupt/TCREUR_Public/181220.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

          Thursday, December 20, 2018, Vol. 19, No. 252


                            Headlines


I T A L Y

ITALY: European Commission Okays 2019 Budget
SALINI IMPREGILO: S&P Puts 'BB' Ratings on CreditWatch Negative


L U X E M B O U R G

ALGECO INVESTMENTS: S&P Affirms 'B-' ICR, Off CreditWatch Neg.
ATENTO LUXO: Fitch Affirms BB Long-Term Issuer Default Rating
M7 GROUP: S&P Affirms B+ Rating on Sr. Sec. Debt, Outlook Stable


M A L T A

MARE BLU: Auditors Cast Going Concern Doubt Over Liabilities


N E T H E R L A N D S

EDML 2018-2: DBRS Finalizes BB(high) Rating on Class E Notes


P O L A N D

RUCH: Orlen to Acquire PLN40 Million of FMCG Inventories


S P A I N

IM BCC CAPITAL 1: DBRS Gives Prov. BB Rating to Class C Notes


U K R A I N E

UKRAINE: IMF Okays US$3.9-Bil. Bailout Program


U N I T E D   K I N G D O M

BELLZONE MINING: Appoints Liquidators After Funding Talks Fail
BELMOND LTD: S&P Puts 'B+' ICR on Watch Positive on LVMH Deal
CABLE & WIRELESS: S&P Affirms 'BB-/B' Issuer Credit Ratings
COLONNADE UK 2017-1: DBRS Confirms Prov. BB Rating on Tranche K
INTERSERVE PLC: Merges Two Businesses Amid Rescue Talks

PERMANENT TSB: S&P Raises ICR to 'BB+', Outlook Stable
TAURUS 2017-2: DBRS Confirms BB(low) Rating on Class E Notes
TOWD POINT 2016: DBRS Hikes Class F Notes Rating to BB(low)


                            *********



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I T A L Y
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ITALY: European Commission Okays 2019 Budget
--------------------------------------------
John Follain and Viktoria Dendrinou at Bloomberg News report that
Italy's populist government has secured a deal with the European
Union over its spending plans, which reassures financial markets
and stabilizes public finances, at least in the short term.

The European Commission gave a green light on Dec. 19 to the
country's 2019 budget, after Rome offered concessions on welfare
and pension election promises in order to lower the deficit
target to 2.04% from the initial 2.4% that Brussels had rejected
as an "unprecedented" breach of EU rules, Bloomberg relates.

According to Bloomberg, senior officials of the commission, the
EU's executive arm, said after a meeting in Brussels that Italy's
concessions meant there was no reason for now to trigger a
sanctions process, which could lead to fines.


SALINI IMPREGILO: S&P Puts 'BB' Ratings on CreditWatch Negative
---------------------------------------------------------------
S&P Global Ratings placed on CreditWatch with negative
implications its 'BB' ratings on Italy-based construction company
Salini Impregilo SpA and its senior unsecured debt.

On Dec. 13, 2018, the International Chamber of Commerce in Miami
ordered Grupo Unidos por el Canal S.A. (GUPC), the construction
consortium that built the Panama Waterway extension and that
includes Salini Impregilo, to pay back $836 million to the Panama
Canal Authority. The tribunal's ruling stems from a protracted
dispute between the Panama Canal Authority and GUPC led by
Spain's Sacyr (not rated) and Salini Impregilo. The dispute
concerned cost overruns related to the construction of a third
set of locks for the waterway, which was completed in 2016. The
$836 million accounts for advances, both contract and variation
orders, which the Panama Canal Authority granted to GUPC. S&P
understands that the arbitration award will not affect the
outcome of the outstanding arbitration cases involving GUPC and
Salini Impregilo for a total of $5.2 billion.

Salini Impregilo announced that its pro-quota contract advanced
payments, guaranteed with letters of credit and equal to a
principal amount of $217 million, will be paid immediately from
its available cash resources. The company also said that the
advances related to variation orders for a pro-quota principal
amount of $117 million will be subject to a decision by a London
court, with the hearing set for March 2019.

In November, Salini Impregilo also presented a non-binding
expression of interest to Astaldi and to court-appointed
commissioners regarding Astaldi's construction activities.

S&P said, "At this stage, we do not have sufficient details on
the terms and conditions of the offer, including its potential
impact on the company leverage metrics. We understand that Salini
Impregilo could make a binding offer over the next one or two
months."

Salini Impregilo has cashed about $573 million in proceeds, gross
of taxes, from the sale of its subsidiary Lane Construction's
plants and paving, somewhat mitigating our concerns. However, the
sale of this division will also result in a significant decline
in group EBITDA and cash flow.

S&P siad, "In our view, the combination of the above actions may
impede the company's ability to reduce gross debt over 2018-2019,
and could negatively affect its credit metrics and liquidity.
This is because the company's working capital and capital
expenditures (capex) will likely continue to result in
significant cash flow over this period, although less than in in
2017, leaving little room for material free cash flow generation.

"As a result, adjusted credit metrics for 2018-2019 could fall
below our base-case expectations. For instance, adjusted FFO to
debt could fall to below 20%, which would not be commensurate
with our 'BB' rating. We also acknowledge that Salini Impregilo
has displayed significant seasonality of cash flow generation
over the year, and that the contribution of the Italian business
will likely significantly decline in 2018 because of delays in
some key projects. Furthermore, we apply significant adjustments
to our calculations of Salini Impregilo's debt, such as granted
financial guarantees and haircut on cash. As consequence, we
would need to know the company's 2018 results before updating our
base-case scenario."

Additionally, Salini Impregilo's capital structure displays
increasing refinancing risk. At end-June 2018, short-term debt
was EUR886 million (including an about EUR300 million bond
expired in August 2018 and fully repaid), and the two bonds,
EUR600 maturing in June 2021 and EUR500 million maturing in
October 2024, trade significantly below par, with an implied
yield of 8%-9% during the first half of December 2018. S&P
believes that Salini Impregilo's financing costs will likely
significantly increase in 2019-2020 compared with 2017-2018.

S&P said, "We aim to resolve the CreditWatch over the next three
months when we gain clarity on the company's final cash out
related to the advances, and when we know if Salini Impregilo
will proceed with the acquisition of Astaldi, and can anticipate
the resulting financial burden. We plan to meet with management
to discuss the company's leverage strategy and cash flow
generation for 2018 and 2019, including its management of working
capital and capex. Our analysis could prompt us to affirm the
ratings or lower them by one or two notches.

"We would most likely affirm the ratings if Salini Impregilo's
funds from operations (FFO) to debt remains comfortably above 20%
in 2018-2019, while its liquidity profile remains adequate.
We would most likely lower the ratings if FFO to debt dropped to
below 20% in 2018-2019. The downgrade could exceed one notch if
the magnitude of the decrease in FFO to debt drop is significant,
and/or if the company's liquidity and capital structure weaken."



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L U X E M B O U R G
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ALGECO INVESTMENTS: S&P Affirms 'B-' ICR, Off CreditWatch Neg.
--------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on
Luxembourg-headquartered modular space leasing group Algeco
Investments B.V. (Algeco). S&P removed the ratings from
CreditWatch, where it placed them with negative implications on
Nov. 27, 2018. The outlook is stable.

S&P said, "At the same time, we affirmed the 'B-' issue rating on
the group's various senior secured notes and 'CCC' issue rating
on the senior unsecured notes, and removed them from CreditWatch.
The recovery ratings are unchanged.

"We affirmed the rating on Algeco following successful
refinancing of its EUR96 million facility that was completed on
Dec. 11, 2018. The company used the proceeds from its EUR125
million tap to repay this debt and increase its cash balances by
EUR21.9 million.

"For the next 12 months, short-term debt maturities amount to
about EUR36 million (as of end-September and pro forma for the
sale leaseback facility refinancing). We note, however, that the
company plans to repay about EUR31 million of the aforementioned
short-term debt related to factoring lines when it completes the
disposal of Target Lodging expected in early 2019. Therefore, we
don't foresee major refinancing concerns for the coming year.
Furthermore, we continue to assess the group's liquidity as
adequate, supported by EUR127 million available under the asset-
backed liabilities (ABL) facility that can be used to fund
working capital.

"We expect that Algeco will further advance on its
transformation, with the sale of its North American remote
accommodation business, Target Lodging, to be completed in early
2019. We note that Algeco's operations have already undergone
significant changes over the past two to three years, spurred by
its private equity owner since 2004." In November 2017, Algeco
completed the spin-off of its North American operations
(excluding Target Lodging) for about $1.1 billion, of which about
$0.7 billion was used for debt repayment. In February 2018,
Algeco completed full refinancing of its capital structure, which
included issuance of EUR1.4 billion of new notes, a new $400
million syndicated ABL facility, and EUR327 million of preferred
shares that we treat as debt.

The disposal of Target Lodging for an agreed enterprise value of
$820 million is set to bring at least $562 million in cash
proceeds and the remainder in shares of Platinum Eagle
Acquisition Corp. (the final split between cash and shares will
be determined at closing), a special-purpose acquisition company
listed on the NASDAQ in New York. The company's financial
sponsor, TDR, plans to keep a stake in this listed company.

S&P said, "We view the disposal of Target Lodging as negative for
Algeco's business risk profile, which we still assess as weak.
Remote accommodation business in North America accounted for
about 12% of revenue in 2017. This compares with about 64%
generated by European modular space and portable storage
solutions business, while the remaining 24% stemmed from the
Asia-Pacific (APAC) region, where Algeco is present in both
segments. That said, the EBITDA contribution from North American
operations was much higher than the revenue contribution (24% of
total EBITDA), thanks to higher profitability, which we estimate
at 46% of the EBITDA margin in 2017. At the same time, the margin
of European operations is lower, at 28%, and APAC even weaker, at
7% (based on the company's disclosed adjusted EBITDA, which
excludes restructuring and other one-off costs and fees). We note
that the underlying profitability of rental business is nearly 2x
higher than for new units' sales. As a result, we expect that the
group's profitability will weaken in 2019 to an underlying EBITDA
margin of about 23%-24%." This is a decline of about 250-350
basis points compared with 2018 (including the contribution from
Target Lodging). Overall, Algeco's profitability is below average
compared with the operating leasing industry, with EBIT margin
expected to be around 8.5% in 2019--well below 18%-45% range
defined as average profitability.

Broadly speaking, the divestment of Target Lodging will weigh
negatively on Algeco's diversification on many fronts, such as
geographic, end-market, and product. Algeco will be predominantly
exposed to the European market where it will generate 88% of its
EBITDA. We see this as rather limited geographic diversification.
Still, we note that the group is present in 19 European
countries. At the same time, the bulk of revenue comes from
France and the U.K. (about 45% combined).

The importance of energy and natural resource end markets will
decline following the transaction, as they will account for 8% of
sales (versus 16% previously). Albeit cyclical in nature, they
balanced Algeco's exposure to other cyclical industries such as
construction (34% versus 30%), and less cyclical industries and
services (36% versus 31%) and public administration (22% versus
24%). That said, customer concentration will somewhat improve,
with the top 20 customers now accounting for 19% of leasing and
services revenue, compared with 27% previously.

Following the transaction, Algeco will focus almost entirely on
modular and portable solutions, with the number of remote
accommodation rooms set to reduce to 3,400 from 12,800. The
remaining remote accommodation business in APAC (mainly
Australia) will generate less than 5% of revenue in future years.
S&P anticipates that roughly two-thirds of sales will be
generated from modular space leasing and installation, and one
third will come from sale of new units.

On a positive note, Algeco remains the number one provider in
Europe, where it outsizes by far its main competitors based on
fleet number and revenue base. For instance, another large
European player Containex generates only EUR300 million in
revenues. In APAC region, Algeco also retains leading market
positions. S&P views Algeco's wide network of sites for modular
units -- which are spread across Europe -- as a key strength, as
this allows customers to contract with one single European
supplier, but also access local facilities. This also minimizes
transportation costs for Algeco.

Algeco's average lease term is 24 months, which is rather short
compared with some other operating leasing companies, such as
aircraft or railcars. This is also much shorter than the economic
life of the fleet that spans up to 20 years. However, compared
with U.S. modular and portable storage space lessors, such as
PODS LLC (B+/Stable/--) and Mobile Mini Inc. (BB/Stable/--),
Algeco is well within the average for the sector. In addition,
customers typically demonstrate a good degree of loyalty and
renew their initial lease contracts multiple times.

S&P said, "Our view of Algeco's financial risk profile is mainly
constrained by a high degree of indebtedness and heavy interest
expense burden. That said, the company has publicly stated its
intention to deleverage in view of a potential IPO over the next
12-24 months. We also understand that TDR and the company are not
planning any dividend distribution. Hence, while this is not
explicitly built into our forecast, we think that cash balances
from the disposal could be used either for acquisitions that
would increase EBITDA and thereby drive the deleveraging, or for
straightforward debt reduction. We note for instance that the
upsized EUR190 million floating rate notes become callable in
February 2019.

"Importantly, we don't net cash from gross debt amounts for our
ratio calculation based on our criteria for financial sponsor-
owned companies, and companies with a weak business risk profile
assessment. We note, however, if the disposal of Target Lodging
was completed according to plan, large cash proceeds would
provide a solid liquidity buffer to the group.

"The stable outlook is based on our assumption that Algeco will
continue to grow organically, simultaneously improving its
profitability via higher added-value components installed in its
fleet, pricing initiatives and higher utilization rates of its
fleet. We anticipate an adjusted EBIT margin of about 8.5% in
2019, which is likely to strengthen to about 10% in 2020. The
stable outlook also assumes no further releveraging of the
business, be it through more debt or EBITDA base reduction.

"We could lower our ratings if Algeco made a significant dividend
distribution, hampering its deleveraging prospects.
Underperformance of the business or significant one-off costs
could also weigh negatively on the rating. Weakening of
liquidity, including covenant breach risks, could equally lead us
to take a negative rating action.

"We could raise our rating on Algeco if earnings and FOCF
exceeded our expectations, resulting in improved EBIT interest
coverage of more than 1.3x. We could also consider a higher
rating if the company significantly reduced its debt using the
proceeds from the Target Lodging disposal to be completed in
early 2019."


ATENTO LUXO: Fitch Affirms BB Long-Term Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Foreign-Currency Issuer
Default Rating for Atento Luxco 1 S.A. at 'BB'/ Outlook Stable.
Fitch has also affirmed Atento's USD400 million senior secured
notes at 'BB' and Atento Brasil S.A.'s (Atento Brasil) Long-term
national scale rating at 'AA(bra)'/Outlook Stable.

The ratings reflect Atento's business position, scale and
operating expertise as the fourth-largest player in the global
customer relation management (CRM) and business process
outsourcing (BPO) industry, with a well-established long-term
client relationship and geographical diversification. Atento's
business position enables the company to support EBITDAR margins
at adequate levels for the industry and modest positive free cash
flow (FCF) over the medium term. Fitch also expects the company
to keep a moderate net adjusted leverage at the 2.5x to 3.0x
range, as well as a manageable debt maturity profile and robust
liquidity position.

The ratings are tempered by the moderate to high-risk industry
profile, which has been challenged by technological changes that
somehow limits CRM growth perspectives; the intrinsic client
concentration of the business; and the lack of minimum volumes in
contracts and intense competition. Atento's Country Ceiling is
'A', equal to the lowest country ceiling from the group of
countries where Atento operates, for which the sum of total local
currency and hard currency cash flow generation is sufficient to
cover hard currency gross interest expense in Fitch's forecast
horizon, in accordance with Fitch's "Non-financial Corporates
Exceeding the Country Ceiling Rating Criteria".

KEY RATING DRIVERS

Strong Competitive Position: Atento's business profile benefits
from proven operating expertise, long-term customer
relationships, high contract renovation rates, and a robust
scale, which supports the company's strong competitive position.
Atento is the largest provider of CRM and BPO services in Latin
America and one the top five providers globally based on
revenues. Fitch believes Atento has 17% of contact center
outsourcing services market share in Latin America and 25% in
Brazil, a position sustained by contract renovation rates over
95% and a loyal client base. More than 80% of clients have been
with the company for over five years.

Atento's size and operating expertise allow for economies of
scale and partially mitigate price competition to deliver
operating margins in line with its main global competitors. The
company's geographical diversification helps smooth the impact of
economic deceleration in a particular market and enables it to
exchange solutions and services among the countries where it
operates.

Consistent Operating Performance: Fitch expects Atento to
continue delivering mildly positive FCFs and low double digit
operating margins. Fitch forecasts Atento's average FCFs of USD25
million and EBITDAR margins of around 14% -15% during the next
three years, slightly lower than historical averages despite
long-term margin pressure trends within this industry. The
company's challenge is to manage its service portfolio and
increase its higher value-added services in order to mitigate
margin pressure. As of the last-12-months (LTM) ended Sept. 30,
2018, the group reported EBITDAR margins of 14%, in line with the
13.7% registered in FY2017, and negative FCF of USD9 million,
impacted by Brazilian operations' poor performance.

High Customer Concentration and Industry Risk: Fitch believes
client concentration is one of Atento's main risks. In this
industry, the top 10 clients easily surpass 70% of revenues, of
which some have very strong bargain power to settle commercial
terms. The company generates approximately 38% of total revenue
from Telefonica Group (Telefonica S.A.; BBB/Stable), posing risk
in the case of volume reduction. Fitch believes this risk is
partially mitigated by the Master Service Agreement (MSA) with
Telefonica, which guarantees an inflation-adjusted revenue stream
until 2021 (2023 in Brazil and Spain), and the slow but ongoing
expansion of non-Telefonica clients.

The industry presents high operating leverage, driven by salaries
and rent costs, where a permanent reduction in volumes, which
demands capacity adjustments, usually results in heavy labour and
rent related severance payments. Additionally, charging fines
from contracts suspensions with large clients has historically
been difficult. Competition is also intense, and clients tend to
diversify outsourcing providers to avoid being dependent on one
supplier.

Challenging Long-Term Trends: Fitch expects margins and top line
growth to be constrained due to technology changes and market
dynamics that have altered the contact center service industry
structure, as companies develop in-house solutions and digital
channels to substitute mainly CRM voice services. As a result,
the industry revenue model, still based on head-account charge,
is suffering as voice service is gradually losing share for
digital channels, where the same attendant can interact with
multiple consumers at the same time. To cope with these
challenges, Atento has focused on improving its BPO service
offering and increasing its portfolio of middle market companies,
where CRM services are still under penetrated, mainly in Latin
America.

Adequate Capital Structure: Fitch forecasts Atento's net adjusted
leverage, measured by net adjusted debt/EBITDAR, to be in the
3.0x to 2.5x range, over the medium term, despite its recent
peak, due to an increase in Brazilian rental expenses during the
2H17 and 1H18 time frames, and lower EBITDA margins for that
market in the same period. Fitch forecasts that rental expense
will represent around 4% of the company's total sales, and that
EBITDA margins will be at low double digit levels after capacity
adjustments in the Brazilian operations. As of the LTM ended
Sept. 30, 2018, Atento's net adjusted leverage was 3.5x with
total adjusted debt of USD950 million, mainly composed of the
USD576 million lease-equivalent debt and USD393 million senior
secured bonds.

Brazilian Performance Remains Crucial: The Brazilian operation is
strategically important for Atento, contributing to approximately
48% of the LTM revenue and EBITDA, and driving the overall
performance of the group. Fitch expects Brazil to remain the most
important market for Atento during the next three years,
delivering margins at the low double digits range. In 1H18,
Brazilian poor operating performance, due to excess capacity
adjustments and lower than expected demand, delivered EBITDA
margins around 8%, dragging down Atento's consolidated margin in
the same period. Fitch believes the labour reforms in Brazil will
have a positive effect for CRM/BPO providers in terms of service
demand, as companies are now allowed to outsource unrestrictedly.

DERIVATION SUMMARY

Atento has delivered EBITDA margins of around 11%, in the low end
of margins reported by other players such as Convergys and
Teleperformance, which perform within the 11%-15% margin range
and register higher revenue per workstation, influenced by the
geographies in which they operate.

Atento should present positive FCFs and leverage and liquidity
ratios close to those of 'BBB-' companies; however, its business
and operating industry risks result in lower IDRs. Compared to
Sodexo S.A. (BBB+/Stable), Atento has a weaker market position,
lower business diversification and much higher client
concentration. In addition, Fitch believes Atento has lower
financial flexibility and a weaker financial structure compared
to Sodexo, due to Atento's slightly higher leverage and lower
cash covered ratio. This is despite the two companies having
similar profitability levels. Compared to Natura (BB/Stable),
Atento has higher business risk, balanced by a more conservative
capital structure and marginally better liquidity position.
Natura operates in a market where brand recognition matters, and
where price competition is less intense. Natura also has higher
operating margins and a diverse consumer base.

KEY ASSUMPTIONS

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

  -- Number of workstations (WS) at 92,700 in 2018 and 90,900 in
     2019;

  -- Rental expenses at 4% and 3.8% of net sales in 2018 and
     2019, respectively;

  -- Capex at 3.5% of net revenues in 2018 and 4% in 2019;

  -- Dividends pay-out rate of 25% from 2019 onwards.

RATING SENSITIVITIES

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

  -- Reduction of customer concentration from Telefonica to less
     than 20%, without compromising revenues;

  -- Expansion of cash generation from investment grade
     countries;

  -- Increase in value-added solutions that reflect in better
     consolidated margins and higher switching costs.

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

  -- Increase in net adjusted leverage above 3.5x, on a sustained
     basis;

  -- Readily-available-cash to short-term debt ratio below 1.0x;

  -- Reduction in volumes leading to persistent EBITDAR margins
     below 13%;

  -- Weakening of Telefonica's credit profile;

  -- Signs that digital solution is cannibalizing revenues and
     margins, affecting its credit metrics

LIQUIDITY

Solid Liquidity: Atento has a solid liquidity position and
reasonable financial flexibility. Fitch believes Atento will
remain committed to proper liability management to mitigate
refinancing risks related to its bullet senior secured bonds, due
in 2022, and to a solid liquidity profile going forward, with a
cash-covered ratio of over 2.0x. Currency mismatch risks, related
to its senior secured bond, are mitigated by fully hedged coupon
payments; however, principal is not hedged. On Sept. 30, 2018,
the company's cash position of USD97 million covered its short-
term debt of USD44 million in 2.2x. Liquidity is reinforced by
USD100 million from three committed revolving credit facilities,
proven access to debt and equity markets, established bank
relationships, and expected positive FCFs during the next three
years.

FULL LIST OF RATING ACTIONS

Fitch has affirmed the following ratings:

Atento Luxco 1 S.A.

  -- Long-Term Foreign-Currency IDR at 'BB';
  -- USD400 million senior secured notes due 2022 at 'BB'.

Atento Brasil S.A.

  -- National Scale Rating at 'AA(bra)'.

The Rating Outlook is Stable.


M7 GROUP: S&P Affirms B+ Rating on Sr. Sec. Debt, Outlook Stable
----------------------------------------------------------------
On Dec. 17, 2018, S&P Global Ratings affirmed its 'B+' ratings on
M7 Group and on its senior secured debt. The '3' recovery rating
on the debt is unchanged.

The affirmation reflects that despite only modest organic revenue
growth, S&P expects M7 to maintain adjusted leverage at around
5.0x in 2018-2019 and continue to generate strong free operating
cash flow (FOCF).

In 2018-2019, S&P expects CDS Holdco III B.V., parent company of
direct-to-home broadcaster M7 Group, to deliver modest organic
revenue growth and reported EBITDA margins of about 30%.

S&P forecasts M7 will generate substantial positive free
operating cash flow, but its capital structure will remain highly
leveraged.

S&P said, "Our rating on M7 continues to reflect that it is
considerably smaller than other European and U.S.-based direct-
to-home (DTH) operators, the highly competitive nature of the pay
TV and telecommunications markets, and the mature and saturated
nature of its key markets in Central and Western Europe with
limited organic growth prospects. The rating also reflects the
group's highly leveraged capital structure and financial sponsor
ownership.

"In our view, over the medium term, the group's organic revenue
growth prospects will be limited due to intense competition from
pay TV operators, migration of customers from DTH to internet
protocol television and over-the-top platforms, and potential
competition from traditional broadcasters that plan to launch
their own direct-to-consumer content distribution. In 2018-2020,
we expect M7's direct subscriber base will decline by about 1%-2%
per year due to loss of customers in The Netherlands, Belgium,
Czech Republic, and Slovakia, which will account for about 70% of
revenue."

Nevertheless, gradual growth in average revenue per unit (ARPU)
and tight control over operating costs will support M7's EBITDA
margins. Its ARPU continues to increase following the migration
of service-fee clients to the pay TV model and set-top boxes in
Czech Republic and Slovakia. S&P also expects the group to
achieve subscriber growth in Austria and Germany, where it
launched new consumer brand Diveo.

S&P said, "In our view, the private equity sponsor's financial
policy toward the group remains aggressive. While we believe the
group will maintain adjusted leverage below 5.5x over the medium
term, it completed a leveraged buyout of minority shareholders in
2017, which increased adjusted leverage."

M7's good cash conversion and limited working capital needs will
translate into continued positive FOCF of EUR40 million-EUR50
million per year, which it could use to gradually repay debt.
However, S&P doesn't give benefit for surplus cash in its
calculation of adjusted leverage and forecast adjusted debt to
EBITDA to remain at about 5.0x, on average, in 2018-2019.

S&P said, "The stable outlook reflects our view that over the
next 12 months, increasing ARPU and subscriber numbers in Austria
and Germany will offset the structural decline in the group's
subscriber base in the Netherlands, the Czech Republic, and
Slovakia, and tight control over operating costs will help the
group sustain profitability. The outlook assumes that M7 will
generate a reported EBITDA margin of about 30% and substantial
positive FOCF, maintain adjusted debt to EBITDA of less than
5.5x, and improve FOCF to debt toward 10%.

"We could lower the ratings if the group's adjusted debt to
EBITDA increased above 5.5x or FOCF to debt remained sustainably
below 10% due to weaker operating performance or debt-financed
acquisitions and higher shareholder returns. We could also lower
the rating if the group's profitability reduced due to a more
pronounced decline in the subscriber base and weaker ARPU, and
the group generated weaker FOCF.

"We currently consider an upgrade as unlikely, given the group's
ownership by financial sponsors and what we view as an aggressive
financial policy. A positive rating action is also unlikely due
to the group's relatively small scale in a highly competitive
industry, and its exposure to mature and saturated markets."



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M A L T A
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MARE BLU: Auditors Cast Going Concern Doubt Over Liabilities
------------------------------------------------------------
Undercurrent News, citing MaltaToday, reports that a rise in
liabilities at Mare Blu tuna farm in Malta, owned by Spanish
investor Ricardo Fuentes, has led the country's auditors to cast
"significant doubt on its ability to continue as a going
concern".

Auditors have released the annual accounts of the Fuentes
subsidiary, which crashed from massive profits in 2016 to a
substantial loss in 2017, Undercurrent News relates.

According to Undercurrent News, the auditing team blamed Mare Blu
for keeping inadequate financial records, reporting that the
financial statements made by the company were not consistent with
its accounting records and returns.

"The company incurred a net loss of EUR7.5 million [in 2017] and
the company's total liabilities exceeded total assets by EUR7.77
million," Undercurrent News quotes the firm's auditors as saying
in their report.

"These events or conditions, along with other matters . . .
indicate that a material uncertainty exists that may cast
significant doubt on the company's ability to continue as a going
concern."



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


EDML 2018-2: DBRS Finalizes BB(high) Rating on Class E Notes
------------------------------------------------------------
DBRS Ratings Limited finalized its provisional ratings of the
notes issued by EDML 2018-2 B.V (the Issuer) as follows:

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

The Class F notes are not rated.

The final rating of the Class E notes differs from the
provisional rating previously assigned by DBRS, due to lower note
margins compared to those expected at the time of the provisional
ratings.

The Issuer is a bankruptcy-remote special-purpose vehicle (SPV)
incorporated in the Netherlands. The notes proceeds were used to
fund the purchase of Dutch residential mortgage loans originated
by Elan Woninghypotheken B.V. (Elan) and secured over residential
properties located in the Netherlands. Elan started originating
Dutch residential mortgage loans in June 2015 under the umbrella
license of Quion. The portfolio consists of Dutch residential
mortgage loans without a National Hypotheek Garantie (NHG),
originated under the Hypotrust mortgage label through a mortgage
product designed with unique underwriting criteria (Elan
mortgage). Quion will be the Servicer in the transaction and has
conducted the mortgage underwriting to the product underwriting
standards. Goldman Sachs provided the warehouse financing as the
Elan lender.

As of August 31, 2018, the final funded mortgage portfolio
consisted of 1,848 loan parts (equivalent to 893 loans) with an
aggregated current balance of EUR 252.1 million. Approximately
90.5% of the final funded portfolio was originated in 2018, and
hence the weighted-average seasoning of the portfolio is short at
0.4 years. DBRS was also provided with a separate unfunded
mortgage portfolio that consists of additional loans for which
prospective borrowers have received a binding offer from the
seller but have not yet accepted it. The aggregated current
balance of the unfunded portfolio is equal to EUR 99.9 million
and consists of 651 loan parts (equivalent to 283 loans). The
Issuer will use part of the proceeds from the notes to purchase
new mortgage loans (from the unfunded portfolio) before the first
interest payment date of the notes. The total amount of unfunded
loans that can be purchased is EUR 84,914,891 (which is the
balance of the pre-funded account). The Issuer has deposited
these proceeds from the issuance of the notes in the pre-funded
account. DBRS received detailed information on each of the loans
that will form part of the unfunded portfolio.

Credit enhancement for the Class A notes is calculated at 9.1%
and is provided by the subordination of the Class B notes to the
Class F notes and the reserve fund. Credit enhancement for the
Class B notes is calculated at 6.85% and is provided by the
subordination of the Class C notes to the Class F notes and the
reserve fund. Credit enhancement for the Class C notes is
calculated at 4.85% and is provided by the subordination of the
Class D notes to the Class F notes and the reserve fund. Credit
enhancement for the Class D notes is calculated at 3.35% and is
provided by the subordination of the Class E notes to the Class F
notes and the reserve fund. Credit enhancement for the Class E
notes is calculated at 2.35% and is provided by the subordination
of the Class F notes only and the reserve fund.

The transaction benefits from a reserve fund that is available to
support the Class A to Class E notes. The reserve fund will be
fully funded at closing at 0.35% of the initial balance of the
Class A to F notes. The reserve fund can be used to pay senior
costs and interest on the rated notes and will not amortize.
Liquidity for the Class A and the Class B notes will be further
supported by the drawings under the cash advance facility
agreement. Once the Class A and the Class B are redeemed in full,
the cash advance facility will no longer be available.

99.8% of the funded portfolio is fixed-rate mortgage loans with
different reset intervals, ranging from 12 months to 30 years.
Most of the loans reset after 10, 15, 20 or 30 years. The notes
pay a floating-rate interest rate indexed to three-month Euribor
plus a margin. To mitigate the interest rate risk that arises
because of this mismatch, the Issuer will enter into a senior
swap agreement with ING Bank N.V. (the swap counterparty). The
Issuer will pay the swap counterparty an amount equal to the swap
notional amount multiplied by the swap rate which will be 1.1108%
at closing plus the prepayment penalties received by the Issuer.
The swap counterparty will pay the Issuer the swap notional
amount multiplied by the greater of (1) three-month Euribor and
(2) the swap floor.

Once the loan reaches the reset period, the borrowers will be
offered a mortgage rate that takes into account the seller's
interest rate policy. The interest rate policy considers the
Issuer's weighted-average cost of capital, operating costs and
reasonable estimate of its cost of credit. According to the
transaction documents, the interest rate offered to the borrower
at the time of reset will be equal to the Mortgage Receivable
Swap Rate (MRSR) for the fixed-rate mortgage loan at the time of
reset plus 0.9% per annum subject to the compliance of the terms
and conditions of the mortgage loans, the applicable laws and
regulations and the Dutch Code of Conduct. Goldman Sachs
International will submit the MRSR to the seller. DBRS has taken
this assumption in its cash flow analysis.

The structure includes a PDL comprising six sub-ledgers (Class A
PDL to Class F PDL) that provisions for realized losses as well
as the use of any principal receipts applied to meet any
shortfall in payment of senior fees and interest on the most
senior class of notes outstanding. The losses will be allocated
starting from Class F PDL and then to sub-ledgers of each class
of notes in reverse sequential order.

The Issuer Account Bank is BNG Bank N.V. 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 E notes address the ultimate payment of interest and
principal while junior but timely payment of interest when it is
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 for 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 determined according to
DBRS's "European RMBS Insight Methodology and Dutch Addendum".
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.



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


RUCH: Orlen to Acquire PLN40 Million of FMCG Inventories
--------------------------------------------------------
Maciej Martewicz at Bloomberg News, citing Puls Biznesu, reports
that Orlen, the owner of Poland's largest gas station network,
will buy PLN40 million of Ruch's FMCG inventories as state-
controlled companies plan to rescue the press distributor.

Orlen would then take over Ruch's operations, Bloomberg states.

According to Bloomberg, Orlen, Alior and PZU are cooperating to
save Ruch.



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


IM BCC CAPITAL 1: DBRS Gives Prov. BB Rating to Class C Notes
-------------------------------------------------------------
DBRS Ratings Limited assigned provisional ratings to the
following notes to be issued by IM BCC Capital 1, FT (the
Issuer):

-- EUR 602.7 million Class A Notes rated AA (sf)
-- EUR 226.4 million Class B Notes rated BBB (sf)
-- EUR 64.3 million Class C Notes rated BB (sf) (together with
     the Class A and the Class B Notes, the Notes)

DBRS did not rate the Class D and Class E Notes.

The transaction is a cash flow securitization collateralized by a
portfolio of term loans originated by Cajamar Caja Rural, S.C.C
(Cajamar or the Originator) to small and medium-sized enterprises
and self-employed individuals based in Spain. As of 29 October
2018, the transaction's provisional portfolio consisted of 27,300
loans to 22,052 obligor groups, totalling EUR 1,132.3 million.

At closing, the Originator will select the final EUR 953.0
million portfolios from the provisional pool.

The rating on the Class A Notes addresses the timely payment of
interest and the ultimate repayment of principal on or before the
legal maturity date in April 2037. The ratings on the Class B
Notes and Class C Notes address the ultimate payment of interest
and principal on or before the legal maturity date.

Interest and principal payments on the Notes will be made
quarterly on the 22nd of January, April, July and October with
the first payment date on April 22, 2019. The Notes will pay a
fixed interest rate that will be determined on the pricing date
of the transaction.

The provisional pool exhibits low borrower concentration levels.
The largest obligor group represents only 0.44% of the portfolio
balance and the top ten and top 20 borrowers represent 2.66% and
4.07% of the outstanding pool balance, respectively. As per
DBRS's Industry classification, the pool exhibits a high industry
concentration in Farming/Agriculture, which represents 50.06% of
the pool balance, followed by Surface Transport and Business
Equipment and Services at 7.23% and 5.50%, respectively. There is
a high concentration of borrowers in Andalusia, Spain (38.67% of
the portfolio balance), which is expected given that Andalusia is
the home region of the Originator.

At closing, the Class A Notes will benefit from a total credit
enhancement of 38.8% (the Credit Enhancement for Class A is equal
to the aggregate of the portfolio and the Cash Reserve minus the
balance of the Class A Notes: [EUR 953.0m + EUR 19.1m -
EUR 602.7m] / EUR 953.0m), which DBRS considers to be sufficient
to support the AA (sf) rating. The Class B Notes and Class C
Notes will benefit from credit enhancement of 15.0% and 8.3%,
respectively, which DBRS considers to be sufficient to support
the BBB (sf) and BB (sf) ratings, respectively. The Class D Notes
will benefit from a total credit enhancement of 2.00%. Credit
enhancement will be provided by subordination and the Class E
Notes as the Reserve Fund.

The EUR 19.1 million Reserve Fund is 2.00% of the aggregate
balance of the Class A to Class D Notes and is available to cover
shortfalls in the senior expenses and interest and principal of
the Class A to Class D Notes.

The transaction includes mechanisms to address commingling risk.
At closing date, the Issuer will deposit a Commingling Reserve
Amount to mitigate any potential disruptions of the payment of
senior expenses and interest on the Class A Notes. On top of
this, the Issuer will sign an agreement on the closing date to
appoint a backup servicer that will substitute the Servicer under
specific circumstances within 90 days.

DBRS determined these ratings based on a review of the following
analytical considerations, as per the principal methodology
specified below:

   -- The Class A, B, C and D notes amortize on a pro rata basis
unless certain sequential amortization events are breached.
Unlike sequential amortization structures, pro rata amortization
structures do not allow senior notes to benefit from increase in
relative credit enhancement as the portfolio pays down to
compensate for the risk of shifts in portfolio. As such, the pro
rata amortization can expose the rated notes to increase in
portfolio obligor and industry concentrations, particularly when
defaults are back-loaded. To address this risk DBRS modelled the
structure assuming defaults are delayed by one to two years to
test its ability to repay the notes considering significant
proceeds were used to pay principal on Class B, C and D.

   -- The portfolio benefits from positive selection due to the
fact that loans with a Cajamar internal rating of 5 or better can
be included in the portfolio. The probability of default (PD) for
the portfolio was determined using the historical performance
information supplied for loans with a rating of 5 or better. The
historical performance data is divided into 4 segments: SME
secured, SME unsecured, Self-employed secured and Self-employed
unsecured. The dataset was limited to a period of five years
dating back to Q1 2013. The data does not capture downturn
periods of an economic cycle. DBRS used proxy data to estimate
expected stressed performance during adverse economic periods
when determining its base case PDs for each segment provided.
DBRS assumed a weighted-average annualized PD of 2.15% for this
portfolio while the weighted-average annualized PD for the
segments SME secured, SME unsecured, Self-employed secured and
Self-employed unsecured was 4.70%, 2.66%,1.15% and 1.07%,
respectively.

   -- The assumed weighted-average life (WAL) of the portfolio
was 4.17 years.

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

   -- The recovery rate was determined by considering the market
value declines for Spain, the security level and collateral type.
For the Class A Notes, DBRS applied a 43.1% recovery rate for
secured loans and a 15.8% recovery rate for unsecured loans. For
the Class B Notes, DBRS applied a 58.1% recovery rate for secured
loans and a 17.0% recovery rate for unsecured loans. Lastly, for
the Class C Notes, DBRS applied a 64.8% recovery rate for secured
loans and a 21.5% recovery rate 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.



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


UKRAINE: IMF Okays US$3.9-Bil. Bailout Program
----------------------------------------------
Volodymyr Verbyany and Kateryna Choursina at Bloomberg News
report that the International Monetary Fund approved a new US$3.9
billion bailout program for Ukraine to stabilize the economy and
help the government pay back its debts.

The board of the Washington-based lender agreed on Dec. 18 to
provide the eastern European country with the first US$1.4
billion disbursement, Bloomberg relates.  It's part of the
14-month stand-by program, which replaces a bailout that suffered
long delays as the government failed to implement the reforms
necessary to release the cash, Bloomberg notes.

The IMF's decision will help reassure investors in a year in
which other emerging markets have been hammered and Ukraine
itself has been repeatedly cited as among the most vulnerable,
Bloomberg states.  Ukraine is due to pay almost US$5 billion to
foreign creditors in 2019, Bloomberg discloses.



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


BELLZONE MINING: Appoints Liquidators After Funding Talks Fail
--------------------------------------------------------------
Bellzone Mining PLC on Dec. 13 disclosed that its discussions to
source further funds through monetising its Konta Port asset have
not been successful and therefore the Company has been left with
no alternative but to cease trading immediately and be placed
into the appropriate insolvency process.

As such, the Board on Dec. 12 filed a representation with the
Royal Court of Jersey requesting the Court to Order a winding up
under article 155 of the Companies (Jersey) Law 1991 and
appointing as liquidators Alan Roberts and Ben Rhodes, both of
Grant Thornton Jersey.  The Representation was due to be heard by
the Court on Dec. 13.

Formal notices will be issued by Grant Thornton in due course.

Resignation of Nomad and Broker

With mutual agreement of the Board, WH Ireland Limited has
resigned as Nominated Adviser and Broker to the Company with
immediate effect.  Pursuant to AIM Rule 1, if a replacement
Nominated Adviser is not appointed within one month, the
admission of the Company's securities will be cancelled on AIM.
The Company has no current intention of appointing a replacement
Nominated Adviser.

The Company's ordinary shares remain suspended from trading on
AIM.

Headquartered in Jersey, Bellzone Mining PLC is a mining company
developing iron ore and Ni/Cu assets in Guinea, West Africa.


BELMOND LTD: S&P Puts 'B+' ICR on Watch Positive on LVMH Deal
-------------------------------------------------------------
S&P Global Ratings placed its 'B+' issuer credit rating on
Belmond Ltd. on CreditWatch Positive following LVMH Moet Hennessy
Louis Vuitton S.E.'s (A+/Stable/A-1) announcement that it has
entered into a definitive agreement to acquire the company for
$3.2 billion.

S&P said, "The CreditWatch positive listing reflects that we
expect Belmond to be purchased by a higher-rated entity. We
believe that LVMH will likely repay all of the debt at Belmond at
the close of the transaction because of change-of-control
provisions in the company's credit agreement. Therefore, we did
not place our issue-level rating on Belmond's debt on
CreditWatch."

Belmond's debt include the company's $100 million multi-currency
senior secured revolving credit facility and $600 million senior
secured term loan (which consists of a $400 million tranche and a
EUR180 million tranche).

S&P said, "We will resolve the CreditWatch positive placement
when the acquisition closes. We believe that LVMH will repay all
of the debt at Belmond once the acquisition is complete.
Therefore, we will likely withdraw all of our ratings on Belmond
at that time."


CABLE & WIRELESS: S&P Affirms 'BB-/B' Issuer Credit Ratings
-----------------------------------------------------------
S&P Global Ratings revised its outlook on Cable & Wireless
Communications Limited (CWC) to stable from negative.

S&P said, "We also affirmed our 'BB-/B' issuer credit rating on
the company. In addition, we're affirming the issue-level ratings
on CWC's subsidiaries. We are also affirming our 'BB-/B' issuer
credit rating on Cable & Wireless Limited."

The outlook revision reflects CWC's successful recovery following
the impact of Hurricanes Irma and Maria in 2017. The company has
already restored all of its mobile services in the affected
markets and almost all of its fixed services on those
jurisdictions. Therefore, CWC has returned to almost normal
operations.

S&P said, "The stable outlook reflects our belief that CWC has
rebounded from its unfavorable growth cycle and bolstered its
EBITDA. We now expect the company to keep its leverage levels
closer to a 4.0x and funds from operations (FFO) to debt ratio at
around 20%."


COLONNADE UK 2017-1: DBRS Confirms Prov. BB Rating on Tranche K
---------------------------------------------------------------
DBRS Ratings Limited confirmed its provisional ratings of 11
tranches issued by Colonnade UK 2017-1 (the Issuer) as follows:

-- GBP2,197,333,334 Tranche A rated at AAA (sf)
-- GBP40,533,333 Tranche B rated at AA (high) (sf)
-- GBP15,466,667 Tranche C rated at AA (sf)
-- GBP18,400,000 Tranche D rated at AA (low) (sf)
-- GBP28,533,333 Tranche E rated at A (high) (sf)
-- GBP8,533,333 Tranche F rated at A (sf)
-- GBP24,800,000 Tranche G rated at A (low) (sf)
-- GBP36,533,333 Tranche H rated at BBB (high) (sf)
-- GBP10,666,667 Tranche I rated at BBB (sf)
-- GBP16,266,667 Tranche J rated at BBB (low) (sf)
-- GBP29,600,000 Tranche K rated at BB (high) (sf)

The ratings confirmed by DBRS are expected to remain provisional
until the moment the underlying agreements are executed. However,
it is important to note that Barclays (the Originator) may have
no intention of executing the senior guarantee. DBRS will
maintain and monitor the provisional ratings throughout the life
of the transaction or while it continues to receive performance
information.

The ratings address the likelihood of a reduction to the
respective tranche notional amounts resulting from borrower
defaults within the guaranteed portfolio of the notional loan
portfolio financial guarantee during the eight-year credit
protection period. The borrower default events are limited to
failure to pay, bankruptcy and restructuring events.

The ratings take into consideration only the creditworthiness of
the reference portfolio. The ratings do not address counterparty
risk or the likelihood of any event of default or termination
events under the agreement occurring.

The transaction is a synthetic balance-sheet collateralized loan
obligation structured in the form of a financial guarantee. The
loans were originated by Barclays' investment banking division.

Barclays bought protection under a similar financial guarantee
for the first loss piece but has not executed the contracts
relating to the rated tranches. Under the unexecuted guarantee
agreement, Barclays has transferred the remaining credit risk (to
100% from 9%) of the same GBP 2,666.7 million portfolios.

The confirmations follow an annual review of the transaction.

Based on the investor report as of November 2018, the ratio of
the initial losses was 0.5% of the initial balance of the
portfolio. The credit enhancement levels for each of the tranches
have been reduced by 0.5% from closing.

The transaction has a two-year replenishment period left, during
which time Barclays can add new reference obligations or increase
the notional amount of existing reference obligations. The
replenishment period follows rules-based selection guidelines
that are designed to ensure that the new reference obligations
are not adversely selected. In addition, the new reference
obligations also need to comply with the eligibility criteria and
portfolio profile tests which are established to ensure that the
credit quality of new reference obligations proposed are similar
or better than that of the reference obligations they replace.

The credit facilities under the reference portfolio can be drawn
in various currencies but any negative impact from currency
movements is neutralized and therefore movements in the foreign
exchange rate should not have a negative impact on the rated
tranches. DBRS also took comfort from the portfolio profile test
that limits to only 2% the guaranteed obligations that can be
denominated in a currency other than the U.S. dollar, British
pound sterling, Japanese yen, Canadian dollar, euro, Swedish
krona, Norwegian krone, Danish krone and Australian dollar (other
currencies are referred to as minority currencies).

However, each reference obligation can reference a broad number
of interest rate indices around the world. The interest rate
index, spread and interest payment frequency will determine the
amount of additional risk that the guarantee has to cover. To
address this risk, DBRS has calculated stressed interest rates
based on its "Interest Rate Stresses for European Structured
Finance Transactions" methodology as well as the spread and
weighted-average (WA) payment frequency covenants defined as part
of the transaction's portfolio profile tests.

DBRS assumed a stressed interest rate index of 8.6% for the
obligations denominated in eligible currencies and a stressed
interest rate index of 23.0% for the obligations denominated in a
minority currency. The analysis above was used to haircut the
standard recovery rate assumptions applied. For example, at the
AAA (sf) stress level the unsecured recovery rate for an obligor
in a DBRS recovery Tier 1 country was reduced to 23.8% from
28.5%. This adjustment was made to account for the additional
risk posed by the accrual interest coverage of the guarantee.

For the recovery rate, DBRS applied the senior secured and senior
unsecured recovery rates defined in its "Rating CLOs and CDOs of
Large Corporate Credit" methodology. The portfolio can reference
obligations from obligors based in Jersey, Guernsey, the Isle of
Man and the United Kingdom. DBRS applies different recovery rates
depending on the recovery tier and seniority.

The portfolio WA recovery rate was calculated based on the worst-
case concentration allowed under the portfolio profile tests and
adjusted as per the analysis mentioned above.

DBRS used the CLO Asset Model to determine expected default rates
for the portfolio at each rating level. To determine the credit
risk of each underlying reference obligation, DBRS relied on
either public ratings or ratings mapping to DBRS ratings of
Barclays' internal ratings models. The mapping was completed in
accordance with DBRS's "Mapping Financial Institution Internal
Ratings to DBRS Ratings for Global Structured Credit
Transactions" methodology.

The eligibility criteria exclude obligations that are either
subordinated, defined as either project finance, structured
finance or currently in credit watch with a value of "2" or
worse. The maximum single borrower group concentration allowed
will be 2% for borrower groups with the better internal rating
score, with lower single borrower concentration limits for
borrower groups with lower internal rating scores.

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


INTERSERVE PLC: Merges Two Businesses Amid Rescue Talks
-------------------------------------------------------
Arathy S Nair at Reuters reports that Interserve Plc has merged
two of its businesses to simplify its organization, the British
support services and construction firm said on Dec. 19, days
after starting rescue talks with creditors.

According to Reuters, the company said it combined its citizen
services division, which handles everything from rehabilitation
of low-risk offenders to education and workplace training and
nursing care, with its support services unit that manages
outsourced facilities.

The Reading-based outsourcer, which has a 75,000-strong global
workforce and thousands of UK government contracts to clean
hospitals and serve school meals, said last week it would seek to
cut its debt to 1.5 times of its core earnings as part of talks
with lenders, Reuters relates.

Interserve shares have fallen more than 86% so far this year,
Reuters notes.


PERMANENT TSB: S&P Raises ICR to 'BB+', Outlook Stable
------------------------------------------------------
S&P Global Ratings said that it took various rating actions on
Irish banks. Specifically, S&P:

-- Raised the long- and short-term ratings on non-operating
    holding company (NOHC), AIB Group PLC, to 'BBB-/A-3' from
    'BB+/B'. At the same time, S&P raised the long-term rating on
    its main operating bank, Allied Irish Banks PLC, to 'BBB+'
    from 'BBB' and affirmed the 'A-2' short-term rating.
    Furthermore, S&P raised the ratings on its U.K. subsidiary,
    AIB Group (UK) PLC, to 'BBB/A-2' from 'BBB-/A-3'. The outlook
    is stable.

-- Raised the ratings on KBC Bank Ireland PLC to 'BBB/A-2' from
    'BBB-/A-3'. The outlook is stable.

-- Raised the long-term rating on NOHC, Permanent TSB Group
    Holdings PLC, to 'BB-' from 'B+' and affirmed the short-term
    'B' rating. At the same time, S&P raised the long-term rating
    on its main operating bank, Permanent TSB PLC, to 'BB+' from
    'BB' and affirmed the short-term 'B' rating. The outlook is
    stable.

-- Affirmed the ratings on NOHC, Bank of Ireland Group PLC
   (BOIG) at 'BBB-/A-3'. In addition, S&P affirmed the ratings on
    its main operating bank, Bank of Ireland, at 'BBB+/A-2'. The
    outlook on both entities remains positive.

-- Affirmed the 'BBB+/A-2' ratings on Ulster Bank Ireland DAC.
    The outlook remains positive.

RATIONALE

S&P said, "Our improved view of the Irish banking system
principally reflects its improved funding profile. During 2018,
we have observed better access to wholesale funding, which builds
upon its inherent deposit-led funding profile. Moreover, the more
proactive approach to the sell-down of problematic loan
portfolios leads us to believe that funding access won't falter.
Notwithstanding this updated view, we are not overly optimistic
on the future prospects for the Irish banking system. We note the
potential for economic imbalances if the brisk rate of house
price inflation persists, especially if it becomes credit-
fuelled. We are also mindful of the potential risks to Ireland
from its close trading partner, the U.K., leaving the EU.

"Our improved view of Ireland's systemwide funding profile
reflects our expectation that our measure of systemwide core
deposits (including 100% of retail deposits and 50% of corporate
deposits) will cover around 80% of systemwide domestic loans at
end-2018. This metric now compares well with peers. We note the
dramatic improvement in this metric from 41% at end-2011,
primarily relating to the major reduction in loan balances by
banks and the recovery from a low base in the confidence in Irish
banks by corporate depositors. We now expect Irish loan books to
expand in 2019 and assume that deposit growth will broadly keep
pace. As a result, we expect this metric will consistently remain
above our 75% threshold for our current funding assessment.

"Allayed to the stable and granular deposit funding profile, we
have observed regular access to wholesale funding markets. In
particular, the two largest banks have issued NOHC senior
unsecured instruments as part of their progress to build their
minimum requirement for own funds and eligible liabilities
(MREL). Indicative of the progress made, during 2018, we have
incorporated one notch for additional loss-absorbing capacity
(ALAC) into the long-term ratings on the main operating banks of
AIB Group PLC and Bank of Ireland Group PLC. Given that all Irish
banks have reduced their regulatory nonperforming exposures
(NPEs), we assume that this will encourage investors to maintain
wholesale funding access for Irish banks in general.

"The stock of NPEs remains large, but is gradually reducing in
importance and visibility in our analysis. Based upon announced
NPE portfolio sales year-to-date, we assume that the systemwide
NPE ratio will be around 9%-10% by end-2018, down from around 14%
reported at end-2017. We think this estimate will give Ireland a
lower NPE ratio than Italy and Portugal, but higher than Spain,
among peer eurozone markets that have been struggling with NPEs."
This measure is important in that the European Central Bank is
strongly encouraging Irish banks to reduce their NPE ratios
toward the eurozone norm of around 5% by end-2019.

Provision releases continue to support Irish bank earnings. Over
the four years to 2017, combined domestic lending provision
releases have totaled over EUR3 billion for the five main banks,
or about 45 basis points of average domestic loans per year. S&P
said, "This trend has broadly continued into 2018, though we
think the scope for further provision releases has likely ended.
On a pre-provision basis, earnings have been supported by
relatively robust net interest margins. Funding costs have
reduced but, in addition, asset spreads on new mortgage lending
and other lending is higher than the eurozone average. In the
long term, we don't see this pricing differential as sustainable,
but in the meantime there is no demonstrable evidence of
increased competition either from within the industry or from new
entrants. In 2019, we expect banks to switch their risk appetite
to loan growth mode while continuing to make efforts to improve
their operational efficiency and digital capability."

Ireland's housing market, which gathered pace in 2017, has
remained robust in 2018. Encouragingly, the rate of annual house
price growth has cooled from a double-digit rate of growth to a
current reported figure of 8.4%. S&P said, "We think this is
partly due to the impact of regulatory macro-prudential rules.
Even so, our calculation of the four-year average change in
prices through 2018 is over 8%, or higher still if we base this
on a more forward looking four-year average through to 2020; we
assume nominal growth of 8% in 2019 and 7% in 2020. On this
measure, Ireland ranks meaningfully higher than most similar
ranked countries. This potential economic imbalance could be a
concern if it becomes credit-fuelled, which is possible given the
stated aim of several of the banks to target loan growth. We
understand that they need to boost net interest income in order
to achieve their return targets following their diminished
balance sheet size."

S&P said, "In light of the above, we have revised our industry
risk score for the Irish banking sector to '4' from '5' (on a
scale of 1-10, with 1 being the lowest risk). This score has
gradually improved from '7' when we first applied our Banking
Industry Country Risk Assessment (BICRA) criteria in November
2011 (and that score already factored in some expectation of
improvement after Ireland's 2008-2011 banking crisis. At that
time, the economic risk score assigned was also '7').

"As such, we now classify Ireland as being in group 4, rather
than group 5, under our BICRA assessment. Our economic risk
assessment remains unchanged at '5'. As a result, we have revised
upward our anchor, the starting point for assigning an issuer
credit rating, for banks operating primarily in Ireland to 'bbb'
from 'bbb-'. In the context of the EU-27, 12 EU markets currently
have an anchor of either 'a-', 'bbb+', or 'bbb'. Thus, we now
rank Ireland's banking system roughly in the middle of the EU
market.

"We are unlikely to revise upward the anchor any further, even if
NPEs continue to reduce, as we assume. We note that there has
been no alteration in government ownership stakes of a large part
of the banking system over the past 18 months. We assume that
these long-standing stakes will only be reduced to zero during
the 2020s, which indicates the difficulties that banks may face
to substantially increase returns once provision releases recede.

"We have incorporated these revised assumptions into our ratings
on five rated Irish banks, as explained further below. The
ratings on Barclays Bank Ireland PLC (A/Stable/A-1), a core
subsidiary of Barclays PLC under our group rating methodology,
are unaffected by this review."

AIB GROUP PLC (AIB)

S&P said, "We have revised upward AIB's unsupported group credit
profile (UGCP) to 'bbb' from 'bbb-' by reflecting the improved
anchor in its ratings construct. The NOHC is rated one notch
below the UGCP as we view the claims of the creditors of NOHCs to
be structurally subordinated to those of operating company
creditors.

"We rate Allied Irish Banks PLC one notch higher than the UGCP,
reflecting ALAC support. Finally, we have raised the ratings on
its U.K. subsidiary, AIB Group (UK) PLC, which we deem to be
strategically important to the group, as we cap the ratings at
one notch below Allied Irish Banks PLC.

"The stable outlook reflects our expectation that AIB will
continue to proactively reduce its NPEs and maintain its domestic
market position over the two-year outlook horizon. We also assume
that the forthcoming change in the senior leadership team will
not lead to a material shift in strategy or risk appetite.

"We could raise the ratings if AIB improves its returns from both
its domestic and international operations, while maintaining its
risk appetite. Less likely, we could also raise the ratings if
AIB reduces NPEs to be in line with higher rated peers, while
maintaining its current capital strength.

"We are unlikely to lower the ratings at this time, but this
could arise from a more aggressive capital policy than we assume,
or a re-emergence of asset quality weaknesses.

"Finally, we could also raise the ratings on Allied Irish Banks
PLC if the group makes more substantial progress than expected in
terms of MREL issuance. This would enable us to raise the ratings
if its ALAC buffer exceeds our 8% threshold for two-notches of
ALAC support within the long-term rating, and we expect this to
remain the case. Greater clarity on the group's future capital
policy may also inform this analysis."

BANK OF IRELAND GROUP PLC (BOIG)

S&P said, "BOIG's UGCP is unchanged at 'bbb', notwithstanding the
improvement in its anchor. This is because we don't believe that
its greater geographic diversity relative to Irish peers
sufficiently adds to the improved Irish industry risk assessment.
We rate the NOHC one notch below the UGCP. Bank of Ireland, the
main operating bank, is rated one notch higher than the UGCP
reflecting ALAC support.

"The positive outlook on BOIG reflects its superior asset quality
track record relative to domestic peers, which we believe gives
it the potential to be aligned with higher rated international
peers over our two-year outlook time horizon.

"We could raise the ratings if asset quality metrics across the
group significantly improve, while at the same time
capitalization remains a ratings strength and internal capital
generation improves.

"We could revise the outlook back to stable if the group makes
slower progress than we assume, or if a severe adverse economic
scenario emerges in the U.K., possibly linked to a disorderly
outcome to Brexit.

"Finally, we could also raise the ratings on Bank of Ireland if
the group makes more substantial progress than expected in terms
of MREL issuance. This would enable us to raise the ratings if
its ALAC buffer exceeds our 8% threshold for two-notches of ALAC
support within the long-term rating, and we expect this to remain
the case."

KBC BANK IRELAND PLC (KBCI)

S&P said, "We have raised the ratings by removing the one-notch
negative adjustment, as we believe that KBCI is improving its
financial profile. KBCI's stand-alone credit profile (SACP) is
unchanged despite the upward revision of its anchor, as we
believe that its transition into a full-service retail bank with
a strong digital focus remains unproven.

"The stable outlook over our two-year outlook horizon balances
KBCI's improving financial profile with its yet-to-be proven
ability to generate stronger and predictable statutory earnings,
as it further implements its digital strategy.

"We could raise the rating if we considered that KBCI had become
more important to its parent, proving to be a stronger and more
material contributor to group earnings, and if we saw the
development of profitable bancassurance operations that were more
reflective of KBC's Group overall business model. This could lead
us to revise upward our group status assessment. We could also
raise the ratings if KBCI's own stand-alone credit
characteristics improve as a result of further significant
reduction in NPEs.

"We could lower the ratings if we observed difficulties in KBCI
translating its digital banking efforts into earnings that could
be acceptable to its parent."

PERMANENT TSB GROUP HOLDINGS PLC (PTSB)

S&P said, "We have revised upward PTSB's UGCP to 'bb+' from 'bb'.
The NOHC is rated two notches below the UGCP because the group
credit profile is non-investment grade. We rate the main
operating bank, Permanent TSB PLC, at the same level as the UGCP
as we do not incorporate any notches for ALAC support.

"The stable outlook over our 12-month outlook horizon balances
the notable reductions that we have observed in PTSB's NPE ratio,
with its reduced scale and yet-to-be proven ability to
demonstrate better pre-provision earnings.

"We could raise the ratings if PTSB is able to demonstrate better
conversion of its retail banking strengths into earnings
generation. We note that an upward revision of the UGCP would
likely lead us to raise the long-term issuer credit rating on the
NOHC by two notches, as we only apply a one-notch differential
for a NOHC rating from an investment-grade group credit profile.

"We could lower the ratings if we see evidence that the recovery
in PTSB's asset quality is reversing, or its business growth
ambitions falter.

"Finally, we could raise the ratings on the main operating bank,
Permanent TSB PLC, if we observe material progress in MREL
issuance, which is currently unproven. This could lead us to
believe that our ALAC measure will be above our 5% threshold for
one-notch of ALAC support. Greater clarity on the group's future
capital policy may also inform this analysis."

ULSTER BANK IRELAND DAC (UBI)

S&P said, "We have revised upward UBI's SACP to 'bbb-' from 'bb+'
by reflecting the improved anchor in its ratings construct. The
ratings now incorporate two notches of group support from its
ultimate parent, The Royal Bank of Scotland Group plc (RBSG),
rather than the previous three. This is because we view UBI as a
highly strategic subsidiary of RBSG, and we cap the ratings at
one notch below core entities such as National Westminster Bank
Plc.

"The positive outlook on UBI mirrors that on RBSG. We could
upgrade both RBSG and UBI within our 18-24 month outlook horizon
if RBSG's credit risk profile further improves toward the average
observed among U.K. peers. We could also consider an upgrade if
we were to reclassify UBI as a core subsidiary of the group. This
is not a likely scenario in the next two years but could happen
if UBI's operating performance and credit risk metrics improve,
converging toward those of the wider group.

"We would revise our outlook on UBI to stable if we saw ratings
pressure on RBSG, which could occur if it looks unlikely to
maintain consistent statutory profitability. Downward pressure
could also build if we observed UBI becoming less integral to
RBSG's strategy, with the probability of extraordinary parental
support weakening as a result. This could happen if, for example,
UBI proves unable to complete the turnaround its business model
and sustainably improve profitability."

  BICRA SCORE SNAPSHOT*
  Ireland
                             To                 From
  BICRA Group                4                  5
  Economic risk              5                  5
  Economic resilience        Low risk           Low risk
  Economic imbalances        High risk          Intermediate risk
  Credit risk in the economy High risk          Very high risk

  Industry risk              4                  5
  Institutional framework    Intermediate risk  Intermediate risk
  Competitive dynamics       Intermediate risk  Intermediate risk
  Systemwide funding         Intermediate risk  High risk

  Trends
  Economic risk trend        Stable             Stable
  Industry risk trend        Stable             Positive

*Banking Industry Country Risk Assessment (BICRA) economic risk
and industry risk scores are on a scale from 1 (lowest risk) to
10 (highest risk).

  RATINGS SCORE SNAPSHOTS

  AIB Group PLC
                             To                    From
  Issuer Credit Rating       BBB-/Stable/A-3       BB+/Positive/B

  UGCP                       bbb                   bbb-
   Anchor                    bbb                   bbb-
  Business Position          Adequate (0)          Adequate (0)
  Capital and Earnings       Strong (+1)           Strong (+1)
  Risk Position              Moderate (-1)         Moderate (-1)
  Funding                    Average               Average
  and Liquidity              and Adequate(0)      and Adequate(0)

  Support                    (+1)                  (+1)
   ALAC Support              (+1)                  (+1)

  Additional Factors         (0)                   (0)

  Bank of Ireland Group PLC
                           To                    From
  Issuer Credit Rating     BBB-/Positive/A-3    BBB-/Positive/A-3

  UGCP                     bbb                   bbb
   Anchor                  bbb                   bbb-
  Business Position        Adequate (0)          Strong (+1)
  Capital and Earnings     Strong (+1)           Strong (+1)
  Risk Position            Moderate (-1)         Moderate (-1)
  Funding                  Average               Average
  and Liquidity            and Adequate(0)       and Adequate(0)

  Support                  (+1)                  (+1)
   ALAC Support            (+1)                  (+1)

  Additional Factors       (0)                   (0)

  KBC Bank Ireland PLC
                              To                    From
  Issuer Credit Rating     BBB/Stable/A-2       BBB-/Positive/A-3

  SACP                        bb                    bb
   Anchor                     bbb                   bbb-
  Business Position           Weak (-2)             Moderate (-1)
  Capital and Earnings        Strong (+1)           Strong (+1)
  Risk Position               Weak (-2)             Weak (-2)
  Funding and                    Average and        Average and
   Liquidity                  Adequate (0)          Adequate (0)

  Support                     (+3)                  (+3)
   Group Support              (+3)                  (+3)

  Additional Factors          (0)                   (-1)

  Permanent TSB Group Holdings PLC
                              To                    From
  Issuer Credit Rating        BB-/Stable/B          B+/Positive/B

  UGCP                        bb+                   bb
   Anchor                     bbb                   bbb-
  Business Position           Weak (-2)             Moderate (-1)
  Capital and Earnings        Strong (+1)           Strong (+1)
  Risk Position               Moderate (-1)         Weak (-2)
  Funding                     Average and           Average and
  Liquidity                    Adequate (0)          Adequate (0)

  Support                     (0)                   (0)
   Group Support              (0)                   (0)

  Additional Factors          (0)                   (0)

  Ulster Bank Ireland DAC
                              To                     From
  Issuer Credit Rating        BBB+/Positive/A-2 BBB+/Positive/A-2

  SACP                        bbb-                   bb+
   Anchor                     bbb                    bbb-
  Business Position           Moderate (-1)         Moderate (-1)
  Capital and Earnings        Very Strong (+2)   Very Strong (+2)
  Risk Position               Weak (-2)              Weak (-2)
  Funding                     Average                Average and
   and Liquidity               and Adequate (0)      Adequate (0)
   Support                    (+2)                   (+3)
   Group Support              (+2)                   (+3)

  Additional Factors          (0)                    (0)

  Ratings List

  Upgraded
                               To                 From
  AIB Group PLC
   Issuer Credit Rating        BBB-/Stable/A-3    BB+/Positive/B

  Allied Irish Banks PLC
   Issuer Credit Rating        BBB+/Stable/A-2   BBB/Positive/A-2
    RCR                        A-/--/A-2         BBB+/--/A-2

  AIB Group (U.K.) PLC
   Issuer Credit Rating        BBB/Stable/A-2   BBB-/Positive/A-3
    RCR                        BBB+/--/A-2      BBB/--/A-2

  KBC Bank Ireland PLC
   Issuer Credit Rating        BBB/Stable/A-2   BBB-/Positive/A-3
    RCR                        BBB+/--/A-2        BBB/--/A-2

  Permanent TSB Group Holdings PLC
   Issuer Credit Rating        BB-/Stable/B       B+/Positive/B

  Permanent TSB PLC
   Issuer Credit Rating        BB+/Stable/B       BB/Positive/B
    RCR                        BBB/--/A-2         BBB-/--/A-3

  Ratings Affirmed

  Bank of Ireland Group PLC
   Issuer Credit Rating        BBB-/Positive/A-3
  Bank of Ireland
   Issuer Credit Rating        BBB+/Positive/A-2
    RCR                        A-/--/A-2
  Ulster Bank Ireland DAC
   Issuer Credit Rating        BBB+/Positive/A-2
    RCR                        A-/--/A-2

  RCR--Resolution counterparty rating.


TAURUS 2017-2: DBRS Confirms BB(low) Rating on Class E Notes
------------------------------------------------------------
DBRS Ratings Limited confirmed its ratings of the following
classes of Commercial Mortgage-Backed Floating-Rate Notes Due
November 2027 (the notes) issued by Taurus 2017-2 UK DAC (the
Issuer):

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

All trends are Stable.

The confirmations reflect the transaction's overall stable
performance since issuance.

Taurus 2017-2 UK DAC is a securitization of an interest-only
senior commercial real estate loan. At issuance, the senior
whole-loan had a balance of GBP 366.2 million, which following a
property disposal in Q2 2018 has been reduced to GBP 364.3
million as of the August 2018 interest payment date (IPD).

The collateral consists of 126 industrial properties located in
the United Kingdom with a concentration in the Greater London
(40.0% of market value) and Bristol (20.1% of market value)
areas. CBRE valued the portfolio at approximately GBP 547.8
million in July 2017, with no single asset being larger than 5.9%
of the portfolio value. Approximately 70.0% of the assets, by
market value, are considered "last mile" delivery centers
(logistics properties located within 20 kilometers of cities with
over 500,000 residents). Last mile logistic centers have seen an
improvement in performance as they benefit greatly from the
reliance on online shopping as customers' expectations about
delivery times continue to decrease. According to the Cushman &
Wakefield Q3 2018 Industrial snapshot, total take-up for
industrial assets during Q3 2018 was approximately 6.5 million
square feet with retailers and e-retailers driving the market
(contributing 45% of that take-up). Additionally, yields are at
their current ten-year low in every reported market throughout
the UK.

According to the Q2 2018 servicing report, the projected annual
gross rental income has increased to approximately GBP 41.9
million, which is a significant increase over the GBP 34.4
million gross rental income (GRI) reported at issuance. This is
unsurprising as DBRS noted at issuance that the portfolio was
under rented by approximately 13.6% compared with the CBRE market
rental values. The portfolio also benefits from a very granular
income stream with no tenant representing more than 1.5% of GRI
and the top ten tenants totalling only 10.8% of GRI. At issuance,
DBRS noted that the portfolio had a relatively short average
lease term of approximately 3.27 years, with approximately 33% of
leases scheduled to expire by the end of 2019. To date, the asset
manager has been successful in its business plan of re-signing
tenants with expiring leases at market rents, with 24 new leases
signed as of Q2 2018. The two largest tenants, Wolseley UK
Limited and Howden Joiner Properties, have both agreed to
increase their total rent at the property after re-signing leases
at market rental rates. The Wolseley tenant now pays a total of
GBP 634,000 in GRI, compared with GBP 563,000 at issuance and
Howden Joinery Properties pays a total of GBP 634,000 in GRI,
compared with GBP 549,000 at issuance. The portfolio's overall
weighted-average lease term to maturity has subsequently improved
to 4.71 years from 3.27 years at issuance.

According to the loan documents, the sponsor is allowed to
dispose of assets, subject to a loan prepayment of 110% of the
allocated loan amount for the property sold. In August 2018, the
30-64 Pennywell Road, Bristol asset was sold; the asset had a
market value of GBP 2.6 million and an allocated loan amount of
GBP 1.7 million. The property was 100% occupied by Friends Life
Services Ltd, which was paying an annual rent of GBP 220,000,
with lease expiration in August 2023. DBRS accounted for this
disposal in its analysis.

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


TOWD POINT 2016: DBRS Hikes Class F Notes Rating to BB(low)
-----------------------------------------------------------
DBRS Ratings Limited took the following rating actions on the
notes issued by Towd Point Mortgage Funding 2016-Vantage1 Plc
(the Issuer):

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

The ratings on the Class A1 and Class A2 Notes address 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 and Class D Notes address the ultimate
payment of interest (net of any Net WAC Additional Amounts) and
principal on or before the legal final maturity date. The ratings
on the Class E Notes and Class F Notes address the ultimate
payment of 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 (CE) to the notes to
      cover the expected losses at their respective rating
      levels.

The Issuer is a securitization of non-conforming mortgages
secured over residential properties and originated by various
specialized lenders in the U.K. The mortgages were later
purchased by Promontoria (Vantage) Limited in 2015. Cerberus
Europeans Residential Holdings B.V. acquired this portfolio of
mortgages and sold it to the Issuer on the transaction closing
date in December 2016. Pepper (U.K.) Limited is the Servicer of
the mortgage portfolio.

PORTFOLIO PERFORMANCE

At closing, there were already loans in arrears and restructured
loans, representing 47.2% and 41.7%, respectively, of the
outstanding portfolio balance. As of the November 2018 payment
date, loans that were two- to three-months in arrears represented
7.6% of the outstanding portfolio balance, up from 6.6% in
November 2017. The 90+ delinquency ratio was 14.7%, down from
16.6% in November 2017. As of the November 2018 payment date,
total arrears represented 43.8% of the outstanding balance and
realized losses represented 0.7% of the original portfolio
balance. The decline in arrears was partially driven by the
continued loan restructuring, which increased to 54.2% of the
outstanding portfolio balance as of the November 2018 payment
date.

PORTFOLIO ASSUMPTIONS

DBRS conducted a loan-by-loan analysis of the remaining pool of
receivables and updated its base case PD and LGD assumptions to
35.3% and 19.4%, respectively.

CREDIT ENHANCEMENT

As of the November 2018 payment date, CE for each class of notes
increased from the time of DBRS's initial rating. CE to the Class
A1 Notes was 53.8%, up from 45.0%; the Class A2 Notes was 49.0%,
up from 41.0%; the Class B Notes was 41.6%, up from 34.8%; the
Class C Notes was 33.3%, up from 27.8%; the Class D Notes was
27.4%, up from 22.9%; the Class E Notes was 20.8%, up from 17.4%;
and the Class F Notes was 12.0%, up from 10.0%. CE in each case
is provided by subordination of junior classes.

Elavon Financial Services DAC, U.K. Branch (Elavon) acts as the
account bank for the transaction. Based on the DBRS private
rating of Elavon, the downgrade provisions outlined in the
transaction documents, and other mitigating factors inherent in
the transaction structure, DBRS considers the risk arising from
the exposure to the account bank to be consistent with the
ratings assigned to the Class A1 and Class A2 Notes, as described
in DBRS's "Legal Criteria for European Structured Finance
Transactions" methodology.

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



                            *********

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 * * *