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

                           E U R O P E

           Friday, December 21, 2018, Vol. 19, No. 253


                            Headlines


A R M E N I A

CONVERSE BANK: Moody's Affirms B2 Deposit Ratings, Outlook Pos.


F R A N C E

NEXANS: S&P Revises Outlook to Negative & Affirms 'BB/B' ICRs


G E O R G I A

HALYK BANK: Fitch Affirms BB- LT IDR, Outlook Positive


I R E L A N D

IRISH BANK: Liquidators to Commence Payment of Final Dividend
TAURUS 2018-3 DEU: S&P Assigns BB- Rating to Class F Notes


I T A L Y

BANCA CARIGE: Fitch Affirms CCC+ LT Issuer Default Rating
OVS SPA: Largest Shareholder in Negotiations with Lenders


L U X E M B O U R G

ZACAPA SARL: S&P Assigns 'B-' Long-Term ICR, Outlook Positive


N E T H E R L A N D S

JUBILEE CLO 2018-XXI: Moody's Rates EUR12MM Class F Notes 'B2'
JUBILEE CLO 2018-XXI: Fitch Assigns B- Rating to Class F Debt
UCL RAIL: Fitch Revises Outlook on BB+ LT IDR to Positive
ZOO ABS II: Moody's Affirms B1 Rating on Class P Notes


P O L A N D

COGNOR SA: Moody's Raises CFR to B3 & Alters Outlook to Stable
CYFROWY POLSAT: S&P Alters Outlook to Pos. & Affirms 'BB+' ICR


R O M A N I A

ALPHA BANK: Moody's Affirms Ba3 Deposit Ratings, Outlook Positive


R U S S I A

RUNETBANK JSC: Bank of Russia Cancels Banking License


S P A I N

LECTA SA: Moody's Alters Outlook on B2 CFR to Negative


T U R K E Y

TORUK AS: S&P Discontinues Prelim. 'B' Issuer Credit Rating
TURKEY: 846 Companies File for Concordatum, Trade Minister Says


U N I T E D   K I N G D O M

CASTELL PLC 2017-1: Moody's Affirms Caa1 Rating on Cl. F Notes
DUKINFIELD PLC: Moody's Affirms Ba1 Rating on Class E Notes
EYE SMYLE: Collapses Following Funding Problems
GLOBALTRANS INVESTEMENT: Fitch Alters Outlook on BB+ IDRs to Pos.
HEALTHCARE SUPPORT: S&P Affirms 'BB+' Rating on Sr. Secured Debt

NEATH RFC: Owner Willing to Sell Football Club


X X X X X X X X

* BOOK REVIEW: Inside Investment Banking, Second Edition


                            *********



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A R M E N I A
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CONVERSE BANK: Moody's Affirms B2 Deposit Ratings, Outlook Pos.
---------------------------------------------------------------
Moody's Investors Service affirmed Converse Bank CJSC's long-term
local and foreign currency deposit ratings of B2, its Baseline
Credit Assessment and Adjusted BCA of b2, its long-term
Counterparty Risk Assessment (CR Assessment) of B1(cr) and its
long-term Counterparty Risk Ratings (CRRs) of B1. The bank's
short-term deposit ratings and CRRs of Not Prime, as well as its
short-term CR Assessment of Not Prime(cr), were also affirmed. The
outlook on the long-term local currency (LC) deposit rating was
changed to positive from stable.

The affirmation of the bank's ratings reflects its recent
performance in line with Moody's expectations and a financial
profile which remains consistent with the b2 BCA. The positive
outlook on Converse Bank's long-term LC deposit rating is aligned
with the outlook on the Government of Armenia (B1 positive),
reflecting Moody's view of a moderate probability of government
support.

RATINGS RATIONALE

The affirmation of Converse Bank's b2 BCA and other ratings
reflects the balance between (1) its sound financial profile,
underpinned by adequate capital and liquidity buffers and healthy
profitability (ROAA of 1.5-1.6%, stable since 2016); (2) downside
risks to asset quality associated with the recent rapid loan
growth and high foreign-currency exposure; and (3) strong ongoing
financial and business support from the bank's controlling
shareholder.

Converse Bank has recently demonstrated rapid loan growth of
around 40% per annum in 2016-17 and 23% in twelve months ending
September 30, 2018. This growth trajectory has resulted in a
decline of the bank's capital adequacy metrics; however, these
remained solid, with the ratio of tangible common equity to
adjusted risk-weighted assets at 10.9% as of September 30, 2018
(year-end 2017: 12.4%). Moody's expects the bank's capital
adequacy to remain approximately stable in the next 12 months, as
its planned loan growth slows down to 10% and its internal profit
generation capacity is sufficient to support this slower growth
and to create the necessary loan loss reserves.

In the next 12 months, Moody's expects Converse Bank's loan book
seasoning to result in a higher problem loan ratio (September 30,
2018: 4.1%) and cost of risk (the ratio of loan loss provisions to
average gross loans), which amounted to just 0.9% in January-
September 2018. The bank's foreign-currency exposure has decreased
to 71% of gross loans as of September 30, 2018 (year-end 2017:
77%), yet it remains high and poses downside risks to the bank's
asset quality. However, Moody's expects any negative pressure in
the next 12 months to be contained, given the benign operating
environment in Armenia (5% expected GDP growth next year).

Converse Bank's reliance on market funding has recently increased,
reaching 18.3% of tangible assets as of September 30, 2018 (year-
end 2017: 13.4%). Moody's expects this trend to continue in the
next 12 months, with more international financial institutions'
funding and bond issues in the bank's pipeline. Notwithstanding
these expectations, the rating agency assesses the bank's funding
and liquidity profile as adequate, given still moderate exposure
to market funding, a comfortable repayment schedule and the bank's
solid liquidity buffer (28% of total assets as of September 30,
2018).

POSITIVE OUTLOOK

The positive outlook on Converse Bank's long-term LC deposit
rating is aligned with the outlook on the Government of Armenia,
reflecting Moody's view of a moderate probability of government
support.

GOVERNMENT SUPPORT

Moody's has incorporated a moderate probability of support from
the Government of Armenia, to reflect the bank's consistent market
share of 5-6% in total assets, loans and retail deposits. This
support assumption does not currently result in any rating uplift,
given the small gap between the sovereign rating of B1 and
Converse Bank's BCA of b2.

WHAT COULD MOVE THE RATINGS UP/DOWN

Converse Bank's deposit ratings could be upgraded following an
upgrade of Armenia's sovereign rating. Positive pressure on the
bank's BCA could be driven by sustained good asset quality, a
material reduction in its foreign-currency exposure and continued
solid capital and liquidity buffers.

Given the positive outlook on the local currency deposit ratings,
the downside risk for Converse Bank's deposit ratings is currently
limited. However, the outlook could be changed to stable in case
the outlook on Armenia's sovereign rating is stabilized. Converse
Bank's BCA could be downgraded if the bank's asset quality
deteriorates and results in negative pressure on capital adequacy
beyond Moody's current expectations.

Issuer: Converse Bank CJSC

Affirmations:

Adjusted Baseline Credit Assessment, Affirmed b2

Baseline Credit Assessment, Affirmed b2

Counterparty Risk Assessment, Affirmed B1(cr)

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

Long-term Counterparty Risk Rating (Local and Foreign Currency),
Affirmed B1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
Affirmed NP

Short-term Bank Deposits (Local and Foreign Currency), Affirmed NP

Long-term Bank Deposits (Local Currency), Affirmed B2, Outlook
Changed to Stable from Positive

Long-term Bank Deposits (Foreign Currency), Affirmed B2, Outlook
Remains Stable

Outlook Action:

Outlook Changed To Positive(m) From Stable



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F R A N C E
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NEXANS: S&P Revises Outlook to Negative & Affirms 'BB/B' ICRs
-------------------------------------------------------------
S&P Global Ratings revised its outlook on French cable
manufacturer Nexans to negative from stable. S&P also affirmed its
long and short-term issuer credit ratings at 'BB/B'.

S&P said, "At the same time, we affirmed our 'BB' issue rating on
Nexans' senior unsecured notes and revolving credit facility
(RCF). The recovery rating on the debt is '4', indicating our
expectation of average recovery (30%-50%; rounded estimate 45%) in
the event of payment default.

"The outlook revision follows Nexans' second profit warning this
year, on Nov. 9, 2018, and reflects our expectation of weaker
profitability over the next 12-18 months, with forecast EBITDA
margins now at less than 6%. The company experienced contract
delays, organic growth below our expectations, and high commodity
prices, some of which the group has not been able to pass to
customers, notably in resins. For 2018, the management now expects
EBITDA of EUR325 million rather than EUR411 million as
anticipated. The negative outlook further indicates tightening
headroom under key credit ratios over the next 12-18 months. In
our updated base case, we now expect Nexans' S&P Global Ratings-
adjusted funds from operations (FFO) to debt will decline to 22%
by the end of 2018 and 15% by the end of 2019, down from 36% at
the end of 2017."

The weaker operating performance is mainly a result of the decline
in activity in Nexans' High Voltage segment, caused by lower sales
in its Land and Submarine High Voltage subsegments due to
postponements of projects or awards that were expected to start in
the second half of 2018. However, the Building and Territories
segment improved its activity, mitigating the group's sales
decline. Additionally, strong global inflationary pressure weighed
on Nexans' profitability in 2018.

As a reaction to its performance, the company announced a three-
year transformation program to enhance its cost structure,
reducing EUR210 million of fixed and variable costs to offset
expected cost inflation and pricing pressure of EUR190 million.

S&P said, "We understand that 50% of group activities either have
low profitability or insufficient return on capital employed, and
could be subject to reorganization (including restructuring). We
assume restructuring charges will be about the same as for the
last restructuring period in 2013-2016 and we estimate costs of
about EUR250 million spread across 2019-2021. We therefore now
expect S&P Global Ratings-adjusted EBITDA in 2019 of about EUR300,
significantly lower than we initially estimated (about EUR500
million), resulting in an adjusted EBITDA margin below 5%. Thanks
to benefits from cost measures and improved operating performance
in the High Voltage segment, we expect Nexans will restore overall
profitability to 5%-7% by 2020 and therefore expect an FFO-to-debt
ratio of about 15% for 2019, rebounding to about 21% in 2020 and
improving further in 2021. We previously expected FFO to debt of
about 27% on average in 2018-2020." Excluding the restructuring
charges, the FFO to debt would be over 25% for 2019."

Nevertheless, Nexans continues to maintain a market-leading No.2
position, preceded by Italy-based Prysmian (EUR7.9 billion
revenues in 2017 and EUR657 million reported EBITDA post
restructuring, including the previous No. 3 General Cable). S&P
recognizes a diversified customer base (no customer accounts for
more than 10% of revenues) supports an established footprint in
its core markets. However, the company also sells its cables in
cyclical end markets, mainly the building and territories sector
(42%) and via the industry and solutions segment (21%). A cyclical
downturn could prevent the firm achieving its transformation plan
by 2021. Moreover, the group operates within a highly competitive
and fragmented sector.

S&P said, "The negative outlook reflects our anticipation of
Nexans' weakened credit metrics compared with our previous
expectations, with FFO to debt dropping toward 15% in 2019 and an
EBITDA margin temporarily below 5% over the next 12-18 months. We
could downgrade Nexans if credit metrics do not recover from 2019
and FFO to debt remains below 20% over a prolonged period. Such a
scenario could materialize if high restructuring costs,
unprofitable contract execution, or loss of market shares prevent
an improvement in profitability. We currently see only limited
headroom under Nexans credit metrics to remain consistent with a
'BB' rating.

"We could revise the outlook to stable if restructuring measures
restores profitability, including an EBITDA margin above 6% and a
FFO-to-debt ratio of over 20%. Improvement in the business risk
profile is unlikely, given the group's low profitability. We
currently don't see any upside in the rating over the next 12-18
months."



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G E O R G I A
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HALYK BANK: Fitch Affirms BB- LT IDR, Outlook Positive
------------------------------------------------------
Fitch Ratings has affirmed Halyk Bank Georgia's (HBG) Long-Term
Issuer Default Rating (IDR) at 'BB-' with a Positive Outlook.
Fitch has also assigned the bank a Viability Rating (VR) of 'b+'.

KEY RATING DRIVERS

IDRS AND SUPPORT RATING

HBG's IDRs and Support Rating are driven by potential support it
may receive in case of need from its sole shareholder, Halyk Bank
of Kazakhstan (HBK, BB/Positive). Fitch believes that HBK will
have a high propensity to support its Georgian subsidiary, given
full ownership, relatively low cost of potential support for HBK
and potential negative implications for HBK in case of
subsidiary's default.

The one-notch difference between the Long-Term IDRs of HBK and HBG
reflects the cross-border nature of the parent-subsidiary
relationship and the so far limited track record and contribution
of the Georgian subsidiary to overall group performance. The
Positive Outlook on HBG's Long-Term IDR mirrors that on the
parent.

VR

Fitch has assigned a VR to HBG since in its view the bank has
considerable independence from the parent bank in terms of loan
origination and approval. HBG's VR is mainly driven by the bank's
adequate financial metrics so far. It also factors in HBG's
limited franchise in a concentrated Georgian banking sector (1.2%
of sector assets), heightened risk appetite due to significant
lending in foreign currencies (80% of gross loans) and high
balance sheet concentrations (the 25 largest groups of borrowers
amounted to a sizeable 46% of gross loans at end-3Q18).

HBG's assets quality is reasonable with impaired loans (Stage 3
loans under IFRS 9, based on management accounts) of 5.6% of total
loans at end-3Q18. Coverage by total loan loss allowances was
fairly modest at 35%, reflecting the bank's reliance on hard
collateral. Regulatory impaired loans were in line with IFRS (5.8%
of loans at end-3Q18), and were 83% covered by loan loss
allowances, due to higher provisioning requirements in prudential
accounts. HBG's exposure to the construction and real estate
sector is higher than at peers and represents a potential risk for
the bank's asset quality, in Fitch's view.

HBG's profitability is healthy, reflected in a return on average
equity of 14.3% in 9M18 (annualised). The bank was able to
preserve a good net interest margin of 6.7% thanks to relatively
cheap funding, which is mainly sourced from the parent. Bottom
line results are also supported by low loan impairment charges
(less than 1% of gross loans in 2017-9M18) due to adequate asset
quality.

The bank is well capitalised with Fitch Core Capital (FCC)
standing at 20% of risk-weighted assets at end-3Q18 (according to
management accounts), supported by a capital injection from the
parent bank of GEL14 million in 2018. The regulatory Tier 1 and
Total capital ratios were adequate at 17.2% and 21.7% at end-3Q18,
respectively, allowing the bank to reserve about 6% of gross loans
without breaching the minimum required levels, including buffers.

HBG is primarily funded by its parent bank (77% of liabilities),
while customer deposits represent only 21% of liabilities.
Customer funds are concentrated with top 20 groups of depositors
comprising 13% of total liabilities. Liquid assets (cash and
equivalents, interbank placements and securities eligible for repo
net of potential third-party repayments) covered 59% of customer
accounts at end-3Q18. The liquidity position was additionally
supported by a sizable unused credit line from the parent bank.

RATING SENSITIVITIES

HBG's support-driven Long-Term IDR is sensitive to changes in
Fitch's assessment of support from HBK. The bank's VR may come
under pressure in case of a material weakening of asset quality
resulting in negative impact on the bank's profitability and
capitalisation. Upside for HBG's VR is currently limited, given
its limited and concentrated franchise and high foreign currency
lending.

The rating actions are as follows:

Long-Term IDR: affirmed at 'BB-', Outlook Positive

Short-Term IDR: affirmed at 'B'

Viability Rating: assigned at 'b+'

Support Rating: affirmed at '3'



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IRISH BANK: Liquidators to Commence Payment of Final Dividend
-------------------------------------------------------------
Dara Doyle at Bloomberg News reports that the finance ministry
says the Joint Special Liquidators of Irish Bank Resolution
Corporation confirmed they will commence payment of final dividend
of 50% to admitted unsecured creditors of IBRC in the coming
weeks.

Joint Special Liquidators also confirmed it is their expectation
that there will be further funds recoverable to the state
following repayment of other creditors, including subordinated
bondholders, Bloomberg discloses.

According to Bloomberg, the finance ministry says "brings clarity
to all admitted unsecured creditors that they will receive 100% of
what has been owed to them since IBRC went into liquidation in
February 2013."

                 About Irish Bank Resolution

Irish Bank Resolution Corp., the liquidation vehicle for what was
once one of Ireland's largest banks, filed a Chapter 15 petition
(Bankr. D. Del. Case No. 13-12159) on Aug. 26, 2013, to protect
U.S. assets of the former Anglo Irish Bank Corp. from being
seized by creditors.  Irish Bank Resolution sought assistance
from the U.S. court in liquidating Anglo Irish Bank Corp. and
Irish Nationwide Building Society.  The two banks failed and were
merged into IBRC in July 2011.  IBRC is tasked with winding them
down and liquidating their assets.  In February, when Irish
lawmakers adopted the Irish Bank Resolution Corp., IBRC was
placed into a special liquidation in the Irish High Court to
complete liquidation and distribution of the two banks' assets.

IBRC's principal asset as of June 2012 was a loan portfolio
valued at some EUR25 billion (US$33.5 billion).  About 70 percent
of the loans were to Irish borrowers. Some 5 percent of the
portfolio was under U.S. law, according to a court filing.  Total
liabilities in June 2012 were about EUR50 billion, according
to a court filing.

Most assets in the U.S. have been sold already.  IBRC is involved
in lawsuits in the U.S.

IBRC was granted protection under Chapter 15 of the U.S.
Bankruptcy Code in December 2013.

Kieran Wallace and Eamonn Richardson of KPMG have been named the
special liquidators.


TAURUS 2018-3 DEU: S&P Assigns BB- Rating to Class F Notes
----------------------------------------------------------
S&P Global Ratings assigned its credit ratings to Taurus 2018-3
DEU DAC's class A, B, C, D, E, and F notes. At closing, Taurus
2018-3 DEU also issued unrated class X notes.

The transaction is backed by two loans, which Bank of America
Merrill Lynch International DAC (BAML) originated to facilitate
the refinancing of THE SQUAIRE, which was acquired by Blackstone
in March 2017. The two loans are primarily secured by two
commercial properties referred to as THE SQUAIRE and the adjoining
THE SQUAIRE Parking. The two loans are cross-defaulted but not
cross-collateralized.

The securitized loans backing this true sale transaction equals
EUR475.0 million. THE SQUAIRE currently provides the collateral
for the loan securitized in Taurus 2015-2. THE SQUAIRE is
Germany's largest office building and is located adjacent to
Frankfurt Airport. There are also two Hilton branded hotels in the
building. The SQUAIRE Parking contains 2,500 parking spaces linked
to THE SQUAIRE by the Skylink bridge, which was not part of the
collateral in the previous securitization.

The securitized loan balance in aggregate is 95.0% (EUR475.0
million) of the whole loan, with BAML holding a 5.0% (EUR25.0
million) interest that ranks pari passu with the securitized loans
to satisfy EU risk retention requirements.

The properties' current market value is EUR747.4 million, which
equates to a loan-to-value ratio of 66.9%. The loans have an
initial two-year term with three one-year extension options and
are interest only.

S&P said, "We consider that THE SQUAIRE's and THE SQUAIRE car
park's S&P net cash flow is EUR34.6 million and EUR3.3 million,
respectively. Our S&P recovery value for THE SQUAIRE is EUR542
million, which represents a 22% haircut (discount) to the EUR699
million open market valuation. Our S&P value for the car park is
EUR37 million, which represents a 24% haircut to the EUR49 million
open market valuation."

  RATINGS ASSIGNED

  Taurus 2018-3 DEU DAC

  Class     Rating        Amount
                        (mil. EUR)

  A         AAA (sf)      193.7
  B         AA (sf)        62.7
  C         A+ (sf)        45.1
  D         BBB (sf)       80.7
  E         BB (sf)        79.5
  F         BB- (sf)       13.3
  X         NR              0.1

  NR--Not rated.



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I T A L Y
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BANCA CARIGE: Fitch Affirms CCC+ LT Issuer Default Rating
---------------------------------------------------------
Fitch Ratings has affirmed Banca Carige S.p.A. - Cassa di
Risparmio di Genova e Imperia's (Carige) Long-Term Issuer Default
Rating (IDR) at 'CCC+'. Carige's Viability Rating (VR) has been
downgraded to 'f' from 'c' and subsequently upgraded to 'ccc+'.

The rating action follows the bank's recapitalisation through the
issue of EUR320 million Tier 2 notes underwritten by the voluntary
arm of the Deposit Guarantee Scheme (DGS). Fitch views this issue
as having reduced downside risks for the bank's senior creditors
and the risk of regulatory intervention, but Fitch believes that
it is an extraordinary provision of support that was necessary to
restore the bank's viability and ensure compliance with the bank's
total capital requirement by end-2018, as requested by the ECB.
The subsequent upgrade of the VR to 'ccc+' reflects Fitch's view
of the bank's restored viability following the recapitalisation.

KEY RATING DRIVERS

IDRS, VR AND SENIOR DEBT

Following the downgrade of the VR to 'f' and subsequent upgrade to
'ccc+', Carige's Long-Term IDR is aligned with the VR. Fitch
believes that Carige's standalone profile remains extremely weak,
despite the bank's restored compliance with regulatory capital
requirements.

In Fitch's view Carige's capitalisation is not commensurate with
the bank's risks. The Tier 2 issue has allowed Carige to meet the
ECB's total capital requirement of 11.25% and overall capital
requirement, which includes the capital conservation buffer, of
13.125%, but buffers over the latter are thin and sensitive to
potentially larger reported losses than expected. The Tier 2 debt
raised from the DSG and private investors, if any, serves as a
bridge to a subsequent EUR400 million rights issue planned for
1H19. At that time, the Tier 2 notes will be converted into equity
unless Carige manages to raise the entire EUR400 million from
other investors.

Capital encumbrance by unreserved impaired loans at end-September
2018 remained high at over 150% of Fitch Core Capital (FCC),
despite the increase in reserve coverage to about 55% of impaired
loans from 47% at end-2017. Encumbrance could decline to around
100% of FCC if the bank completes the planned EUR0.9 billion
doubtful loans securitisation and the up to EUR400 capital
increase. Nevertheless, such encumbrance would still expose
Carige's capitalisation to material downside risk.

Impaired loans pro-forma for the EUR366 million unlikely-to-pay
loans sold on November 9, 2018, decreased to EUR4.4 billion at
end-September 2019 from EUR6.2 billion at end-September 2017 and
were about 25.5% of gross loans (excluding debt securities at
amortised cost), one of the highest ratios in Italy. The ratio
could decrease to around 21% if the bank succeeds in securitising
and deconsolidating the announced EUR0.9 billion doubtful loans by
end-2018, but this will remain very high by domestic and
international comparison.

The bank has been loss-making since 2012, reflecting a weak
ability to generate revenue, a heavy cost structure and sizeable
loan impairment charges. Following the recapitalisation, Fitch
expects management to focus on the relaunch of commercial
activities, although Fitch believes that the success of any
turnaround strategy will remain highly vulnerable to the economic
and interest rate cycles.

The ratings also reflect its view that funding would be unstable
without DGS's intervention, which Fitch views as having provided
stability to Carige's deposit base. Additionally, Carige's
liquidity is tight and vulnerable to possible deposit outflows.
Its balance sheet encumbrance levels are higher than generally
seen at domestic peers, and the bank is reliant on central bank
funding.

Carige's senior unsecured debt is affirmed at 'CCC+'/'RR4',
reflecting its assessment that average recoveries are a plausible
outcome for senior bondholders in the event of a default, although
this is sensitive to small changes in assumptions. It is also
possible that senior creditors may avoid losses in case of
regulatory intervention, for example, because assets and
liabilities are transferred to another bank.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating and Support Rating Floor reflect Fitch's view
that although external support is possible it cannot be relied
upon. Senior creditors can no longer expect to receive full
extraordinary support from the sovereign in the event that the
bank becomes non-viable. The EU's Bank Recovery and Resolution
Directive and the Single Resolution Mechanism for eurozone banks
provide a framework for the resolution of banks that requires
senior creditors to participate in losses, if necessary, instead
of, or ahead of, a bank receiving sovereign support.

RATING SENSITIVITIES

IDRS, VR AND SENIOR DEBT

Carige's ratings could be downgraded if the bank's funding becomes
unstable and liquidity tightens further, and/or if the bank
continues to generate losses, thus eroding capital buffers.

An upgrade would be conditional on the successful implementation
of Carige's asset-quality clean-up and capital increase. At that
point, the ratings could be upgraded if the bank manages to
demonstrate control over non-performing loans generation, turn
profitability around and normalise its funding and liquidity,
while maintaining sufficient capitalisation.

Carige's senior unsecured debt ratings are sensitive to its view
of recovery prospects, which could depend on potential
resolution/liquidation scenarios, the proportion of preferred
creditors and asset values.

SUPPORT RATING AND SUPPORT RATING FLOOR

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

The rating actions are as follows:

Long-Term IDR: affirmed at 'CCC+'

Short-Term IDR: affirmed at 'C'

Viability Rating: downgraded to 'f' from 'c' and subsequently
upgraded to 'ccc+'

Support Rating: affirmed at '5'

Support Rating Floor: affirmed at 'No Floor'

Senior unsecured notes (including EMTN): long-term rating
affirmed at 'CCC+'/'RR4', short-term rating affirmed at 'C'


OVS SPA: Largest Shareholder in Negotiations with Lenders
---------------------------------------------------------
Chiara Remondini at Bloomberg News reports that even in a
difficult environment for retailers, the woes of Italian discount
clothing chain OVS SpA stand out.

According to Bloomberg, shares of the company, based near Venice,
have collapsed 88% this year, the biggest drop among European
retailers with a market value of EUR100 million (US$113 million)
or more.

OVS, whose largest shareholder is private equity firm BC Partners,
reported declines in sales and profit and said it's negotiating
with lenders to amend the terms of its loans, Bloomberg relates.

"This is the most difficult third quarter of our history,"
Bloomberg quotes Chief Executive Officer Stefano Beraldo as saying
on a conference call.  "The entire sector has been penalized by
the weather" and other factors such as customers' behavior, which
is becoming "more and more difficult to predict," he said, adding
that "to cope with this we need to accelerate our capacity to
react to market changes."

While OVS said an unseasonably warm autumn kept clients from
shopping, the company suffered plenty from its own decisions this
year, Bloomberg notes.  It suspended the dividend to use its cash
for expanded e-commerce offerings, lost revenue from store
closings, and wrote down the value of a Swiss clothing chain,
Charles Voegele Holding AG, it bought last year, Bloomberg
discloses.

OVS is in talks to extend maturities on loans due in 2020 by less
than five years, while covenants won't change, Bloomberg relays,
citing people familiar with the situation. OVS has a EUR100
million revolving credit facility and a EUR375 million term loans,
both maturing in February 2020, Bloomberg states.



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


ZACAPA SARL: S&P Assigns 'B-' Long-Term ICR, Outlook Positive
-------------------------------------------------------------
S&P Global Ratings assigned its 'B-' long-term issuer credit
rating to Luxembourg-based fiber infrastructure services provider
Zacapa S.a.r.l. The outlook is positive.

S&P said, "At the same time, we assigned our 'B-' issue rating to
Zacapa's $525 million first-lien term loan B and its $93.5 million
committed revolving credit facility (RCF). The recovery rating on
the loan is '3', indicating our expectation of meaningful recovery
(50%-70%; rounded estimate: 55%) in the event of a payment
default.

"These ratings are in line with the preliminary ratings we
assigned on June 22, 2018."

This rating action follows the acquisition of Ufinet International
in July 2018 by private equity firm Cinven (79% of share capital,
through its Sixth Fund) and Enel (21%), an Italian-based
electricity and gas company currently diversifying in telecom
infrastructure. Cinven and Enel jointly control Ufinet
International through Zacapa, each of them having 50% of voting
rights and appointing half of the board of directors.

S&P said, "Our ratings on Zacapa reflect our view of Ufinet
International's moderate scale relative to large carrier
operators; its exposure to meaningful country risks; and its
provision of "lit fiber" wholesale services that suffer a degree
of commoditization. Our ratings also incorporate the group's solid
operational track record; long-standing relationships with key
customers; significant data traffic growth; and an extensive
transnational network in Latin and Central America that would be
difficult for smaller local players to replicate. It also factors
in the company's low reported free operating cash flow (FOCF),
stemming from its significant investments to deploy its fiber
network and coverage, combined with high adjusted leverage of
about 5.6x at year-end 2018. However, we expect this will improve
as a result of continued EBITDA growth, driven by supportive
economics."

Ufinet International builds and leases both fiber-optic networks
in metropolitan areas and long-haul networks. It sells
transmission services to companies and telecommunications carriers
in Latin America, provided through its network of about 16,500
kilometers (km) of metro-fiber across 1,840 cities, including all
capitals. Furthermore, its almost 32,700 km of long-haul fiber
provides the only land-based direct connection between North and
Latin America, thus offering the sole terrestrial alternative to
submarine infrastructure.

The group derived approximately 86% of its $183 million revenues
in 2017 from high-margin focus products, including lit fiber (55%)
and to a lesser extent, dark fiber (31%, including rights of way).
Entry-level colocation, hosting, and internet services generate
the remaining revenues. Ufinet's operations spread across 14
countries, including Colombia (34% of 2017 revenues), Panama
(25%), Guatemala (12%), and Costa Rica (10%).

S&P said, "In our view, the industry is characterized by
significant installed fiber capacity globally; numerous
competitors, including many larger, better-capitalized,
multinational, and diversified telecom carriers; and a history of
ongoing price compression on less-differentiated services such as
lit fiber, in particular, prices per megabit (Mb). However, we
expect rising data volumes will continue to outweigh price
declines per capacity unit in the near term, and will support
average price per circuit growth of about 2%-5% per year.
Therefore, we expect global demand for bandwidth to remain strong,
bolstered by increasing internet traffic data and video transport.
In particular, the rollout of long-term evolution mobile
technology and increasing mobile networks usage should generate
continuous demand for fiber connectivity between wireless
infrastructures.

"Our view of Ufinet International's business is constrained by its
position as a niche player. The company has an estimated market
share of 4.1% within its niche, where it competes with larger and
better-capitalized fiber-based telecom operators such as Lilac,
Telefonica, and America Movil, with some overlap, mostly in
relation to metro networks. We also see Ufinet International's
business risk profile as significantly weaker than before the
spin-off of its Spanish operations, which accounted for about 45%
of 2016 revenues." The group's new structure no longer benefits
from its more-stable and dominant position in dark fiber in the
Spanish operations.

Furthermore, its geographic concentration and country risk
exposure will increase significantly because the company is now
exclusively based in Latin America. Ufinet International is
exposed to various political, regulatory, and economical risks
stemming from the jurisdictions where it operates. S&P is also
mindful that the company does not run a fully proprietary network,
because it does not own the physical routes along which it deploys
its fiber network.

S&P said, "Ufinet International is exposed to ongoing price
pressure per Mb in the lit-fiber segment (55% of revenues), due to
lit-fiber services being relatively commoditized, in our view.
That said, we expect this will be outweighed by steadily rising
data capacity demand. Contract periods are typically shorter (one
to three years) for lit fiber, and the market has lower barriers
to entry than dark-fiber. Our assessment is further constrained by
some customer concentration -- the group's 10 largest customers
represented 64% of 2017 revenue (excluding the recent acquisition
of IFX Networks LLC), although customers subscribe to multiple
services across the regions."

These factors are balanced by Ufinet's extended network across
Latin America, revenue and cash flow visibility, and significant
growth prospects, especially in lit fiber. S&P views Ufinet
International's extensive network of about 49,200 km (of which
2,920 km are leased) across Central America down to Colombia as a
differentiating factor over smaller, local operators. Ufinet
operates in an addressable lit-fiber market of about $2.2 billion,
which is expanding on the back of increasing demand for data (21%
compound annual growth rate over 2016-2020) from consumers and
businesses, as well as mobile network operators that require fiber
backbone for their towers (less than 30% of cell sites in Latin
America are connected with fiber).

Ufinet is also the only large dark-fiber provider in its region
(31% of 2017 revenues), an activity that produces stable revenues
and make up the bulk of Ufinet International's backlog ($307
million, $519 million when including rights of way). The
addressable market for dark fiber is relatively limited at $400
million, of which Ufinet International took a 10% share as of
year-end 2017. However, Ufinet International's ability to provide
dark fiber in the region gives it a competitive edge, given
scarcer dark-fiber capacity. The commercial and cost advantages of
its extensive network help differentiate it from its competitors,
which mostly focus on capacity services. This unique positioning
provides revenue and cash flow visibility, with about 98%
recurring revenues, but also a healthy EBITDA margin (about 44%-
45% over 2017-2018) due to existing network capacity utilization.

S&P said, "Finally, we consider that Enel's significant presence
in Latin America and its large scale could support Ufinet
International in its future growth opportunities. Although not yet
included in our base-case assumptions, we foresee Enel's existing
energy distribution network could be leveraged to deploy fiber
services all across Latin America, making Ufinet the full owner
and operator of a much larger fiber network.

"Our assessment of Ufinet International's financial risk is
primarily constrained by the company's low FOCF profile and high
debt. Network deployment requires large upfront investments,
spurred by increasing capacity demand and recent entrance in new
markets (Peru, Chile, Paraguay, and Ecuador). The company's fixed
customer-driven outlays to build new capacities are partly
prefunded because some new contracts include indefeasible rights
of use (IRU), whereby the ultimate customer pays upfront. That
said, a large proportion of outlays are not prefunded, resulting
in only slightly positive FOCF over 2018-2019. In our base case,
we expect only breakeven reported FOCF in 2018, modestly
increasing to $8 million in 2019, preventing the group from
reducing debt through voluntary debt amortization in the medium
term.

"Furthermore, we assess Ufinet International's capital structure
as highly leveraged, with adjusted leverage of about 5.6x in 2018.
Although we foresee adjusted leverage potentially stepping down by
about 1x in 2019, our view of the company's financial risk profile
will continue to be constrained by its private-equity ownership.
We think this could translate into debt-financed
recapitalizations, and a likely steady flow of mergers and
acquisitions, with the company likely seizing opportunities to
acquire local players to further extend and densify its fiber
network. We continue to treat Zacapa as financial sponsor-owned,
despite Cinven's and Enel's joint control of the company. This is
because Cinven's economic and voting rights exceed the 40%
threshold we have for considering a company owned by a financial
sponsor. Finally, we do not consider that Enel would be able to
direct the group's strategy or financial policy on its own, as it
has same voting rights as Cinven and the ability to appoint half
of the board of directors (Cinven appoints the other half).

"The positive outlook on Zacapa reflects our view that we could
upgrade the company in the next 12 months if Ufinet International
sustains its sound operating track record after the execution of
the Spanish segment spinoff. It also indicates that we foresee a
steady increase of FOCF, with an adjusted leverage being
maintained at less than 6.0x and continued sound liquidity.

"We are likely to upgrade Zacapa if Ufinet International's EBITDA
growth results in higher absorption of capex, resulting in
stronger credit metrics and a reduction in adjusted leverage. This
would occur if the trend toward positive FOCF is confirmed in
2018, increasing toward $10 million in 2019, and adjusted leverage
falls below 6x on a sustainable level."

S&P could revise the outlook on Zacapa to stable if:

-- The company's revenue and EBITDA growth slow down compared
    with S&P's base case;

-- Increased competition results in further pressure on pricing,
    not offset by volume growth;

-- Development capex materially increases, translating into
    adjusted leverage over 6x; or

-- It demonstrates negative FOCF and weakening liquidity.



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


JUBILEE CLO 2018-XXI: Moody's Rates EUR12MM Class F Notes 'B2'
--------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by Jubilee CLO 2018-
XXI B.V.:

EUR2,000,000 Class X Senior Secured Floating Rate Notes due 2032,
Definitive Rating Assigned Aaa (sf)

EUR244,000,000 Class A Senior Secured Floating Rate Notes due
2032, Definitive Rating Assigned Aaa (sf)

EUR5,000,000 Class B-1 Senior Secured Floating Rate Notes due
2032, Definitive Rating Assigned Aa2 (sf)

EUR37,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2032,
Definitive Rating Assigned Aa2 (sf)

EUR13,000,000 Class C-1 Deferrable Mezzanine Floating Rate Notes
due 2032, Definitive Rating Assigned A2 (sf)

EUR15,000,000 Class C-2 Deferrable Mezzanine Floating Rate Notes
due 2032, Assigned A2 (sf)

EUR24,000,000 Class D Deferrable Mezzanine Floating Rate Notes due
2032, Definitive Rating Assigned Baa3 (sf)

EUR21,900,000 Class E Deferrable Junior Floating Rate Notes due
2032, Definitive Rating Assigned Ba2 (sf)

EUR12,000,000 Class F Deferrable Junior Floating Rate Notes due
2032, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's rating of the rated notes addresses the expected loss
posed to noteholders by the legal final maturity of the notes in
2032. The ratings reflect the risks due to defaults on the
underlying portfolio of loans given the characteristics and
eligibility criteria of the constituent assets, the relevant
portfolio tests and covenants as well as the transaction's capital
and legal structure. Furthermore, Moody's is of the opinion that
the collateral manager, Alcentra Limited, has sufficient
experience and operational capacity and is capable of managing
this CLO.

Jubilee CLO 2018-XXI B.V. is a managed cash flow CLO. At least 96%
of the portfolio must consist of senior secured loans and senior
secured bonds and up to 4% of the portfolio may consist of
unsecured obligations, second-lien loans, mezzanine loans and high
yield bonds. The portfolio is expected to be approximately at
least 65% ramped up as of the closing date and to be comprised
predominantly of corporate loans to obligors domiciled in Western
Europe.

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

In addition to the nine classes of notes rated by Moody's, the
Issuer issued EUR 37.2 million of subordinated notes, which will
not be rated.

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

Methodology Underlying the Rating Action:

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

The Credit Ratings of the notes issued by Jubilee CLO 2018-XXI
B.V. were assigned in accordance with Moody's existing Methodology
entitled "Moody's Global Approach to Rating Collateralized Loan
Obligations" dated August 31, 2017.

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

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

Loss and Cash Flow Analysis:

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

Par amount: EUR 400,000,000

Diversity Score: 40

Weighted Average Rating Factor (WARF): 2910

Weighted Average Spread (WAS): 3.65%

Weighted Average Recovery Rate (WARR): 44.0%

Weighted Average Life (WAL): 8.5 years

Moody's has analysed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling of A1 or below. Following the effective date, and given
the portfolio constraints and the current sovereign ratings in
Europe, such exposure may not exceed 10% of the total portfolio.
As a result and in conjunction with the current foreign government
bond ratings of the eligible countries, as a worst case scenario,
a maximum 10% of the pool would be domiciled in countries with A3.
The remainder of the pool will be domiciled in countries which
currently have a local or foreign currency country ceiling of Aaa
or Aa1 to Aa3.


JUBILEE CLO 2018-XXI: Fitch Assigns B- Rating to Class F Debt
-------------------------------------------------------------
Fitch Ratings has assigned Jubilee CLO 2018-XXI B.V. ratings, as
follows:

EUR2 million Class X: 'AAAsf'; Outlook Stable

EUR244 million Class A: 'AAAsf'; Outlook Stable

EUR5 million Class B1: 'AAsf'; Outlook Stable

EUR37 million Class B2: 'AAsf'; Outlook Stable

EUR13 million Class C1: 'Asf'; Outlook Stable

EUR15 million Class C2: 'Asf'; Outlook Stable

EUR24 million Class D: 'BBB-sf'; Outlook Stable

EUR21.9 million Class E: 'BB sf'; Outlook Stable

EUR12 million Class F: 'B-sf'; Outlook Stable

EUR37.2 million subordinated notes: 'NRsf'

Jubilee CLO 2018-XXI B.V.is a securitisation of mainly senior
secured loans (at least 96%) with a component of senior unsecured,
mezzanine, and second-lien loans. A total note issuance of
EUR411.1million was used to fund a portfolio with a target par of
EUR400 million. The portfolio is managed by Alcentra Limited. The
CLO envisages a 4.6-year reinvestment period and an 8.5-year
weighted average life (WAL).

KEY RATING DRIVERS

'B'/'B-' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'/'B-
' range. The Fitch-weighted average rating factor (WARF) of the
identified portfolio is 33.37.

High Recovery Expectations

At least 96% of the portfolio comprises senior secured
obligations. Fitch views the recovery prospects for these assets
as more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-weighted average recovery rate (WARR) of the
identified portfolio is 64.99%.

Limited Interest Rate Exposure

Up to 10% of the portfolio can be invested in fixed-rate assets,
while fixed-rate liabilities represent 9.25% of the target par.
Fitch modelled both 0% and 10% fixed-rate buckets and found that
the rated notes can withstand the interest rate mismatch
associated with each scenario.

Diversified Asset Portfolio

The covenanted maximum exposure to the top 10 obligors for
assigning the ratings is 20% of the portfolio balance. The
transaction also includes limits on maximum industry exposure
based on Fitch's industry definitions. The maximum exposure to the
three largest (Fitch-defined) industries in the portfolio is
covenanted at 40%. These covenants ensure that the asset portfolio
will not be exposed to excessive concentration.

Adverse Selection and Portfolio Management

The transaction features a 4.6-year reinvestment period and
includes reinvestment criteria similar to other European
transactions. Fitch's analysis is based on a stressed-case
portfolio with the aim of testing the robustness of the
transaction structure against its covenants and portfolio
guidelines.

Cash Flow Analysis

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

RATING SENSITIVITIES

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

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

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

DATA ADEQUACY

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


UCL RAIL: Fitch Revises Outlook on BB+ LT IDR to Positive
---------------------------------------------------------
Fitch Ratings has revised UCL Rail B.V.'s (UCLR) and its key 100%
subsidiary JSC Freight One's Outlook to Positive from Stable, and
affirmed the companies' Long-Term Issuer Default Ratings (IDRs) at
'BB+'. Fitch has also withdrawn UCLR's ratings for commercial
reasons.

The Outlook revision reflects Fitch's expectations that Freight
One will maintain a robust financial profile over 2018-2022 with
funds from operations (FFO) adjusted net leverage falling below
1.5x, despite the expected correction in freight rates once the
rail fleet deficit is overcome, increased capex for spare parts
and new rail fleet. Fitch expects the company to remain committed
to the conservative financial profile despite the sector
cyclicality. The ratings incorporate Freight One's position as one
of the leading commercial rolling-stock operators, with a
material, albeit declining market share (13% of Russian freight
rail turnover in 2017), and its exposure to cyclical commodity
industries.

UCLR's ratings are equalised with those of Freight One, as the
latter is fully owned by UCLR and the sole contributor to the
group's revenues and earnings following a reorganisation in 2015.

Fitch has chosen to withdraw the ratings of UCLR for commercial
reasons.

Key Rating Drivers

Improved Financial Profile: A stronger track record of the
company's commitment to conservative financial policy and its
ability to manage strong credit metrics through the cycle will be
key for a potential upgrade. Freight One has successfully
deleveraged by reducing its net debt down to RUB11 billion at end-
1H18 from RUB94 billion at end-2013. Fitch forecasts the company's
FFO adjusted net leverage will average 1.2x over 2018-2022, down
from 2.5x on average over 2014-2017. its assumptions include the
stabilisation of the number of fleets under operation, an expected
mid-term decline in freight rates and higher capex than the
historical average, aimed at new spare parts and new rail fleet.
Fitch also forecasts FFO fixed charge cover will rise to an
average 5x (2.7x in 2017) over 2018-2022 due to deleveraging and
lower expected use of operating leases by the company.

Service Agreements Add Visibility: Management's effort in
establishing partnerships with largest Russian industrial
companies resulted in the share of revenue generated under medium-
term service agreements totalling 67% in 9M18, up from 64% in
9M16. The operations under service agreements increase cash-flow
visibility and secure use of the company's rail fleet. However,
Freight One remains exposed to volume risk as some agreements only
fix the percentage of customer cargo volumes, but not actual
volumes. Some of the agreements may limit the company's exposure
to the substantial price drops by stipulating the price floor
level. Freight One's counterparty risk is mitigated by the good
credit quality of the major counterparties, including Rosneft,
PJSC Novolipetsk Steel (BBB-/Stable) and PAO Severstal (BBB-
/Stable).

Strong Performance Expected: Freight One delivered strong 1H18
financial results, with revenue and EBITDA increasing by 9% and
44%, respectively, yoy and the EBITDA margin reaching 42% on the
back of healthy improvement in freight rates, the company's
efficiency improvements and despite negative dynamics in volumes
and turnover due to fleet retirement. Fitch expects the EBITDA
margin to average 38% over 2018-2022 compared with 28% over 2015-
2017.

Mid-term Rate Correction Expected: Freight rates continued growing
in 2018, which supports Freight One's credit profile. This is
because a fleet deficit in certain parts of the network, caused by
a ban on the use of old railcars, has not been overcome despite
the production of new railcars increasing by around 60% in 2017
and a further 20% expected in 2018. Fitch forecasts some
correction in market rates in 2019-2020 due to the expected
economic slow down in Russia and the market for railcars coming
into balance.

Higher Capex Might Pressure FCF: Fitch forecasts Freight One's
capex will increase to an average of RUB27 billion over 2018-2022
compared with less than RUB6 billion on average over 2013-2016.
The company plans to invest in new spare parts for railcars and
acquisition of new fleet annually to stabilise fleet under
operation, stop negative trend in volumes and turnover and
gradually substitute leased-in railcars with its own ones. Fitch
expects free cash flow to be positive in 2018, but it may turn
negative from 2019.

Market Share Decline: Freight One's market share has declined over
the last six years, from 20% of Russian freight rail turnover in
2012 to 13% in 2017 due to a massive fleet write-off that has not
been proportionately substituted by new acquisitions. As a result,
the gap between Freight One and its closest competitor,
Globaltrans (7% market share) narrowed. Despite management's
intention to increase share of metallurgical cargoes and limit
exposure to more volatile and less profitable coal, a continued
market share decline may limit Freight One's competitive
advantages provided by scale.

Lease-Adjusted Credit Metrics: Fitch treats rail fleet operating
lease rentals as a debt-like obligation and applies a 4x multiple
(instead of the standard 6x multiple in Russia) to capitalise the
related costs, reflecting the remaining average useful life for
the company's rail fleet and the flexibility of operating lease
contracts, which can be dissolved at relatively short notice and
the company's demonstrated ability to manage lease costs to match
the stage of the business cycle.

Derivation Summary

Freight One is the leading nationwide commercial rolling stock
operator in Russia with a market share of 13%, followed by its
closest peer - Globaltrans Investment Plc - which has about a 7%
market share. Both companies benefit from a diversified fleet,
reliable customer base and a broad network of regional branches,
which secures their competitive advantage and efficiency over
smaller market players. Similar to Globaltrans, Freight One
operates under long-term contracts with major customers, which
improves cash flow visibility and partially offsets relatively
high customer concentration. However, Freight One's rail fleet is
older and its profitability is lower than that of Globaltrans as
the former's cargo mix is dominated by coal while the latter is
exposed to more profitable metallurgical cargoes. Freight One is
slightly larger than Globaltrans in terms of revenue and EBITDA,
but the gap has shrunk significantly in recent years following
Freight One's massive rail fleet write-off. Fitch views
Globaltrans' group structure as more complex.

Key Assumptions

Fitch's Key Assumptions Within its Rating Case for the Issuers:

  - Domestic GDP growth of 1.5%-2.0% over 2018-2022

  - Inflation of 2.9%-4.6% over 2018-2022

  - Freight transportation rates to stabilise in 2019 at 2018
    levels and then go down by 10% in 2020 and further 5% in 2021
    once fleet deficit is overcome

  - Capex of about RUB26 billion on average over 2018-2022

  - Scrap proceeds of about RUB2 billion on average over 2018-
    2022

RATING SENSITIVITIES

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

  - Stabilisation of the market share in terms of fleet numbers
    and consequently transported volumes

  - Diversification of the customer base and lengthening of
    contract duration with volume visibility with key customers

  - A sustained decrease in FFO lease-adjusted net leverage below
    1.5x (1.6x in 2017) and FFO fixed charge coverage of above 4x
    (2.7x in 2017)

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

  - Inability to achieve FFO-adjusted net leverage below 1.5x and
    FFO fixed charge coverage above 4x on a sustained basis would
    result in the revision of the Outlook to Stable from Positive

  - FFO adjusted net leverage above 2.5x and FFO fixed charge
    cover below 3x on a sustained basis, due to weak industrial
    activity in Russia and weaker-than-expected operating
    results, larger capex or dividend payments, may lead to a
    downgrade

  - Unfavourable changes to the Russian legislative framework for
    the railway transportation industry

Liquidity and Debt Structure

Adequate Liquidity: At end-1H18, Freight One had RUB25.5 billion
of cash and cash equivalents, which is sufficient to cover the
company's short-term maturities of RUB15.6 billion. Freight One
also had unused credit facilities of RUB57.5 billion with a draw
down period over one year, mainly from VTB, Alfa-Bank (BB+/Stable)
and Credit Bank of Moscow (BB-/Stable). Freight One does not pay
any commitment fees under unused credit facilities, which is
common practice in Russia. Fitch expects the company's free cash
flow to be positive in 2018, but it may become negative in 2019 on
the back of freight rates moderation and increased capex for new
railcars and spare parts.

At end-1H18, Freight One's debt totalled RUB36.6 billion,
including finance lease of RUB7.3 billion and loans of RUB29.3
billion secured on pledge of rail fleet. The rail fleet with a
balance value of RUB26 billion (about 25% of total fixed assets)
was either pledged under loan agreements or used as a security
under finance lease agreements. The company still had a
significant share of unencumbered assets, which leaves significant
asset value for senior unsecured creditors.


ZOO ABS II: Moody's Affirms B1 Rating on Class P Notes
------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the
following notes issued by Zoo ABS II B.V.:

EUR9,250,000 Class C Deferrable Interest Secured Floating Rate
Notes due 2096, Upgraded to Aa2 (sf); previously on Apr 4, 2018
Upgraded to A1 (sf)

EUR9,000,000 Class D Deferrable Interest Secured Floating Rate
Notes due 2096, Upgraded to Baa1 (sf); previously on Apr 4, 2018
Upgraded to B1 (sf)

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

EUR18,750.000 (current outstanding amount EUR 9,064,790) Class A-2
Senior Secured Floating Rate Notes due 2096, Affirmed Aaa (sf);
previously on Apr 4, 2018 Upgraded to Aaa (sf)

EUR10,000,000 Class B Senior Secured Floating Rate Notes due 2096,
Affirmed Aa1 (sf); previously on Apr 4, 2018 Upgraded to Aa1 (sf)

EUR4,250,000 (current outstanding amount EUR 4,478,191) Class E
Deferrable Interest Secured Floating Rate Notes due 2096, Affirmed
Ca (sf); previously on Apr 4, 2018 Affirmed Ca (sf)

EUR5,700,000 (current rated balance EUR 2.1M ) Class P Combination
Notes due 2096, Affirmed B1 (sf); previously on Apr 4, 2018
Affirmed B1 (sf)

EUR6,000,000 (current rated balance EUR 1.0M) Class Q Combination
Notes due 2096, Affirmed Aaa (sf); previously on Apr 4, 2018
Upgraded to Aaa (sf)

EUR7,000,000 (current rated balance EUR 1.4M) Class R Combination
Notes due 2096, Affirmed Aaa (sf); previously on Apr 4, 2018
Upgraded to Aaa (sf)

Zoo ABS II B.V. is a managed cash-flow collateralized debt
obligation backed primarily by a portfolio of Euro dominated
structured finance securities. At present, the portfolio is
composed of 100% Prime RMBS.

RATINGS RATIONALE

The rating actions on the notes are primarily a result of the
deleveraging of the underlying portfolio leading to an improvement
in over-collateralisation (OC) ratios across the capital
structure, the accumulation of principal proceeds, and the
improvement in the credit quality of the portfolio since the last
rating action in April 2018. Moody's notes that since the October
2018 report was published, an additional EUR 2.0M of assets have
paid down and this was taken into account in the analysis.

Class A-2 notes have paid down by approximately EUR 8.1M since the
last rating action. As a result, the (OC) ratios have increased.
According to the trustee report dated October 2018, the Class A/B,
Class C, Class D and Class E OC ratios are reported at 256.06%,
172.41%, 130.82% and 116.81% respectively, compared to 190.67%,
145.77%, 118.59% and 108.92%, as per the March 2018 report.

The credit quality has improved, as reflected in the improvement
in the average credit rating of the portfolio (measured by the
weighted average rating factor, or WARF) and a decrease in the
proportion of securities rated Caa1 or lower. According to the
trustee report dated October 2018, the WARF was 791, compared with
1054 as of the last rating action. Securities with ratings of Caa1
or lower currently make up approximately 8.0% of the underlying
portfolio, versus 12.3% in March 2018.

The rating on the combination notes addresses the repayment of the
rated balance on or before the legal final maturity. For the
Classes P, Q and R, the rated balances at any time are equal to
the principal amounts of the combination notes on the issue date
minus the sum of all payments made from the issue date to such
date, of either interest or principal. The rated balances will not
necessarily correspond to the outstanding notional amounts
reported by the trustee.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Approach to Rating SF CDOs" published in June 2017.

The Credit Ratings for Zoo ABS II B.V. were assigned in accordance
with Moody's existing Methodology entitled "Moody's Approach to
Rating SF CDOs", dated June 2017. Please note that on November 14,
2018, Moody's released a Request for Comment, in which it has
requested market feedback on potential revisions to its
Methodology for SF CDOs. If the revised Methodology is implemented
as proposed, the Credit Ratings on Zoo ABS II B.V. may be
neutrally affected. Please refer to Moody's Request for Comment,
titled "Proposed Update to Moody's Approach to Rating SF CDOs" for
further details regarding the implications of the proposed
Methodology revisions on certain Credit Ratings."

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

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
notes, in light of 1) uncertainty about credit conditions in the
general economy 2) divergence in the legal interpretation of CDO
documentation by different transactional parties due to embedded
ambiguities.

Additional uncertainty about performance is due to the following:

  -- Portfolio amortisation: The main source of uncertainty in
this transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high prepayment
levels or collateral sales by the collateral manager. Fast
amortisation would usually benefit the ratings of the notes
starting with the notes having the highest prepayment priority.

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

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



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


COGNOR SA: Moody's Raises CFR to B3 & Alters Outlook to Stable
--------------------------------------------------------------
Moody's Investors Service has upgraded to B3 from Caa1 the
corporate family rating and to B3-PD from Caa1-PD the probability
of default rating of Polish steel manufacturer Cognor S.A. The
outlook has been changed to stable from positive.

RATINGS RATIONALE

The upgrade reflects the group's improved liquidity and stronger
than expected operating performance since Moody's last upgraded
Cognor in May this year to Caa1 from Caa2. After facing material
refinancing risk at that time, the conclusion of the group's
refinancing of its EUR81 million outstanding 12.5% 2020 senior
notes in August, has removed significant pressure on its
liquidity, which Moody's now regards as adequate. Besides a new
EUR60 million term loan with final maturity in December 2022, the
group secured a PLN40 million (EUR9 million equivalent) revolving
credit facility (RCF) maturing June 2020 from the same banks,
which further bolstered its liquidity, after lacking such backup
liquidity prior to the refinancing. Given the much lower margins
on the new bank debt compared with the 12.5% coupon on the
redeemed notes, Moody's expects Cognor's financing cost to
substantially decline to around PLN30 million from over PLN50
million in 2017. Accordingly, the lower interest burden will help
Cognor's free cash flow generation strengthen to the mid-double-
digit million range and its interest coverage towards 3x
EBIT/interest expense from 2019 versus 1.8x in 2017, which Moody's
considers strong for the assigned B3 rating.

The rating action also recognizes Cognor's sound operating
performance during the first three quarters of 2018, thanks to
robust demand from its key end-markets automotive and construction
in Poland and Germany. Although demand has started to soften
somewhat in the third quarter of 2018 with shipments of scrap,
billets and finished products falling by 5.4% yoy, improved steel
prices continued to boost sales and profits. While group sales in
the first nine months of 2018 increased to PLN1,611 million from
PLN1,345 million in the prior year (+20% yoy), reported EBITDA for
the same period reached PLN176 million, yielding a 10.9% margin
versus 7.6% a year ago. As a result, the group's cash generation
also improved with funds from operations (Moody's-adjusted)
increasing to PLN109 million for the 12 months (LTM) through
September 2018 from PLN83 million in 2017, although offset by
sizeable working capital outflows (PLN89 million), leaving free
cash flow just positive at PLN2 million (PLN66 million in 2017).
As of September 30, 2018, Moody's adjusted debt/EBITDA stood at
2.6x, significantly down from 4.7x in 2017. The B3 rating takes
also into consideration Cognor's limited size with revenues and
EBITDA of around EUR480 million and EUR50 million (equivalent),
respectively.

Moody's forecast for Cognor's performance in 2019 assumes a less
buoyant Polish steel market environment, as demand in some steel
using industries will moderate from their strong 2017/2018 levels,
including slowing domestic construction output and automotive
production activity. Moody's also predicts some downward
correction in steel prices (billets and finished products) during
2019 after another strong uptick this year. With higher scrap
metal prices and other input costs, such as energy or graphite
electrode prices, conversion spreads will likely narrow and
squeeze profitability over the next 12-18 months. Nonetheless,
Moody's still expects Cognor to achieve EBITDA margins (Moody's-
adjusted) at least around the 6.5% average over the last five
years, but significantly weaker than the 10.1% record margin as of
LTM Q3-18. This should allow the group to generate free cash flow
of around PLN50-70 million, assuming no dividend payments and
capex of around PLN25 million. Despite the weaker earnings
forecast for 2019, Moody's expects Cognor to be able to maintain
adjusted leverage of below 4x gross debt/EBITDA (2.6x as of LTM
Q3-18), assuming mandatory debt repayments as per the new loan
documentation (i.e. quarterly installments of PLN9 million
starting in Q4-18). While such metrics position the group firmly
in the B3 rating category, Moody's would require it Cognor to
build a track record of maintaining such levels over the next
quarters before considering a further improvement in its rating or
outlook. This also reflects Cognor's weak historical performance
through the cycle with two defaults in the form of distressed
exchanges during the last five years.

LIQUIDITY

Cognor's liquidity has improved following its refinancing in
August 2018 and is now adequate. Unrestricted cash and cash
equivalents as of September 30, 2018 were PLN40 million. Together
with projected free cash flow of around PLN60 million, the group
should be able to cover its mandatory debt repayments of around
PLN50 million in 2019. The next material maturity is June 2020
when the new PLN40 million RCF will mature (fully utilized at the
end of September 2018).

The liquidity assessment also assumes that Cognor will maintain
adequate headroom under its two newly negotiated maintenance
covenants (net leverage and debt service coverage ratios).

RATING OUTLOOK

The stable outlook indicates Moody's expectation that Cognor will
maintain a solid operating performance over the next 12-18 months,
albeit at a slower pace than in 2018, supporting credit metrics at
strong levels for the B3 rating. The outlook also assumes that
Cognor will retain its improved liquidity profile at an adequate
level, including sufficient headroom under financial covenants at
all times.

WHAT COULD CHANGE THE RATING DOWN / UP

Upward pressure on Cognor's rating would build, if (1) Moody's-
adjusted leverage remained below 4x gross debt/EBITDA on a
sustainable basis, and (2) a track record of improved liquidity
was built, including consistently comfortable headroom under
financial covenants.

The rating could be downgraded, if (1) Moody's-adjusted leverage
increased towards 6x gross debt/EBITDA, or (2) liquidity were to
deteriorate.

The principal methodology used in these ratings was Steel Industry
published in September 2017.


CYFROWY POLSAT: S&P Alters Outlook to Pos. & Affirms 'BB+' ICR
--------------------------------------------------------------
S&P expects Polish media and telecom operator Cyfrowy Polsat will
return to organic revenue growth in 2019 and maintain reported
free operating cash flow (FOCF) of about Polish zloty (PLN)1.5
billion, despite temporary higher investments to upgrade Netia's
network. In S&P's view, Cyfrowy has potential and willingness to
deleverage to below 3.0x (S&P Global Ratings adjusted) by 2019,
from 3.2x in 2017 and about 3.0x in 2018.

S&P Global Ratings is therefore revising its outlook on Cyfrowy to
positive from stable and affirming its 'BB+' issuer credit rating.

S&P said, "We revised the outlook to positive because of our
expectation that Cyfrowy's S&P Global Ratings-adjusted debt to
EBITDA could decline below 3.0x over the coming 12 months,
supported by our expectation of organic revenue growth turning
positive in 2019 and the consolidation of Netia acquired in May
2018 providing a broader portfolio and additional scale. We also
expect continued strong annual FOCF to debt of about 15%-16% in
2018-2019. Moreover, with an EBITDA-capital spending-to-sales
ratio of above 30%, Cyfrowy outperforms most of its European
telecom peers at the same rating level, which report an average of
about 15%-20%. We expect that Cyfrowy will return to organic
revenue growth in 2019, given:

-- Revenue growth in the pay TV segment thanks to additional
    premium-priced offering after Cyfrowy expanded its premium
    sports content;

-- Growth in its media segment on increasing advertising
    revenues (market share gain as well as price increases); and

-- Revenue stabilization in the mobile segment from the third
    quarter of 2018, after revenue decline since 2015.

In S&P's view, the addition of Netia further strengthens Cyfrowy's
position as the second-largest Polish telecom operator, providing
a convergent offering by adding fixed broadband (a segment where
Cyfrowy previously had no presence) to its already large offering
consisting of own content production, pay TV, mobile, and fixed
voice services. However, this outweighs the following factors:

-- Expected low-single-digit revenue decline at Netia until at
    least 2020;

-- Acquisition of the remaining 34% stake in Netia for about
    PLN660 million which we assume may take place in 2019; and

-- Upgrade of Netia's fixed broadband network, resulting in
    capital expenditures increasing to about 11% of the group's
    consolidated sales in 2019 compared with about 9% in 2018.

The positive outlook reflects the possibility of a one-notch
upgrade over the next 12 months if Cyfrowy solidly executes the
full integration of Netia and achieves organic revenue
stabilization.

S&P said, "We could raise the rating if revenues and EBITDA grow
modestly, resulting in adjusted debt to EBITDA declining below
3.0x, coupled with FOCF to debt remaining above 15%.

"We could revise the outlook to stable if we expect that Cyfrowy's
adjusted debt to EBITDA would remain above 3x, which could stem
from a lack of return to organic revenue growth, higher-than-
expected investments needed to upgrade Netia's network, or higher-
than-expected shareholder returns."



=============
R O M A N I A
=============


ALPHA BANK: Moody's Affirms Ba3 Deposit Ratings, Outlook Positive
-----------------------------------------------------------------
Moody's Investors Service, has affirmed Alpha Bank Romania S.A.'s
Ba3/Not Prime deposit ratings, its Ba2(cr)/Not Prime(cr)
Counterparty Risk Assessments and its Ba2/Not Prime Counterparty
Risk Ratings. Concurrently, ABR's b2 baseline credit assessment
and Adjusted BCA have been affirmed. The outlook on the long-term
deposit ratings changed to positive from stable.

The rating action reflects Moody's opinion that ABR has made
significant progress over the past years in improving solvency,
and its funding profile, contributing to upward pressure on the
bank's BCA. This resulted in Moody's aligning the outlook on ABR's
ratings with the positive outlook on ABR's Greek parent Alpha Bank
AE (AB; Caa2 positive, caa2), whose weaker credit standing
constrains ABR's credit profile.

RATINGS RATIONALE

RATIONALE FOR AFFIRMING STANDALONE BASELINE CREDIT ASSESSMENT

By affirming ABR's b2 BCA, the rating agency acknowledges the
bank's overall stronger and more resilient financial fundamentals
versus the weaker standalone profile of its parent AB. At the same
time, the affirmation of ABR's BCA reflects Moody's considerations
that the credit quality of parent banks and their subsidiaries are
typically linked. Therefore, and despite the improvement in the
financial fundamentals of ABR, its b2 BCA remains constrained at
three notches above the caa2 weaker credit profile of its Greek
parent. Without this constraint, ABR's BCA could be positioned
several notches higher. The three notch difference remains
underpinned by brand association and material, although declining,
financial links with its parent. The BCA also reflects ABR's
domestically focused operations and its track record of
successfully withstanding challenges to its funding and
capitalisation since the unfolding of the Greek banking crisis in
2010.

Following a series of non-performing loan sales, ABR has much
improved its solvency profile. It reported a non-performing loan
ratio of 6% as of H1 2018, significantly down from 14% in 2016.
ABR shows strong capitalisation with a Tangible Common Equity
(TCE) over risk weighted assets (RWA) ratio of 21% and leverage
measured as TCE over Assets of 9.9% as of H1 2018. The improved
solvency of the bank provides a solid base for the bank's future
loan growth. While core earnings generation is still weak, Moody's
expects ABR's earnings to improve on the back of gradually
recovering lending that should partially offset benefits from
lower reversals of loan-loss provisions. The bank's profitability
has been volatile with return on asset of 0.7% as of H1 2018 down
from 1.4% in 2017.

A gradual shift in the funding structure of ABR has lowered the
bank's dependence on parental funding, thereby contributing to the
fundamental strengthening of its credit profile. ABR's loan to
deposit ratio was 110% as of H1 2018, a strong improvement from
120% as of year-end 2017 (2016:144%); however, it remains elevated
compared to Moody's rated peer's average of 75% as of H1 2018.
Intragroup funding was reduced to 26% of total balance sheet as of
end 2017 from 35% as of year-end 2016 (2015: 59%).

RATIONALE FOR AFFIRMING DEPOSIT RATINGS, CR ASSESSMENT AND CRR

The affirmation of ABR's long-term deposit ratings reflects the
bank's BCA and Adjusted BCA and continues to incorporate the
result of Moody's Advanced Loss Given Failure (LGF) analysis that
indicates a very low loss-given-failure for junior depositors of
ABR, resulting in an unchanged two-notch uplift in the deposit
ratings from the bank's Adjusted BCA. Moody's maintains a low
probability of government support for the bank's junior
depositors, however, this does not result in any additional uplift
in deposit ratings.

RATIONALE FOR THE POSITIVE OUTLOOK

The positive outlook on the bank's long-term deposit ratings is
now in line with that of ABR's parent AB. Assuming unchanged
limited inter-linkages between parent and subsidiary bank, the
positive outlook on ABR's ratings reflects Moody's expectation
that ABR's BCA would likely be upgraded if and when the BCA of AB
is upgraded.

WHAT COULD MOVE THE RATING -- UP/DOWN

An upgrade of ABR's deposit ratings could be prompted by a higher
BCA, or an increase in uplift by a notch resulting from its
Advanced LGF analysis, or both. Upward pressure on ABR's BCA
primarily remains subject to an improvement in AB's BCA. Any
additional volume of subordinated instruments, implying higher
protection for senior creditors and a lower loss given failure in
resolution, could lead to additional uplift for the deposit
ratings by an additional notch.

A downgrade of ABR's ratings could be triggered by a downgrade of
its BCA or a reduction in uplift as a result of its Advanced LGF
analysis, or both. ABR's BCA could experience downward pressure
(1) if the bank's financial fundamentals deteriorate materially,
for instance, as a result of a substantial weakening in its
profitability, an erosion of its capital base or a deterioration
in its asset quality; (2) as a result of a downgrade of AB's BCA,
although this situation is unlikely in view of the current
positive outlook on AB's ratings. Downward pressure on the deposit
ratings could also emerge in the event of a reduction in the
volume of deposits or subordinated instruments in the liability
structure of the bank, which could imply a possible higher loss
given failure in resolution.

LIST OF AFFECTED RATINGS

Issuer: Alpha Bank Romania S.A.

Affirmations:

Long-term Counterparty Risk Ratings, affirmed Ba2

Short-term Counterparty Risk Ratings, affirmed NP

Long-term Bank Deposits, affirmed Ba3, outlook changed to Positive
from Stable

Short-term Bank Deposits, affirmed NP

Long-term Counterparty Risk Assessment, affirmed Ba2(cr)

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

Baseline Credit Assessment, affirmed b2

Adjusted Baseline Credit Assessment, affirmed b2

Outlook Action:

Outlook changed to Positive from Stable



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


RUNETBANK JSC: Bank of Russia Cancels Banking License
-----------------------------------------------------
The Bank of Russia, by virtue of its Order No. OD-3205, dated
December 14, 2018, cancelled the banking license of Moscow-based
credit institution Joint-stock Company RUNETBANK (JSC RUNETBANK)
from December 14, 2018.

The Bank of Russia cancelled the credit institution's banking
license based on Article 23 of the Federal Law "On Banks and
Banking Activities" following the decision of the credit
institution's authorized body to terminate its activity through
voluntary liquidation according to Article 61 of the Civil Code of
the Russian Federation and the submission of the respective
application to the Bank of Russia.

Based on the reporting data provided to the Bank of Russia, the
credit institution has enough assets to satisfy creditors' claims.

In compliance with Article 62 of the Civil Code of the Russian
Federation and Article 21 of the Federal Law "On Joint-stock
Companies", a liquidator will be appointed to JSC RUNETBANK.

JSC RUNETBANK is a member of the deposit insurance system. The
cancellation of a banking license is an insured event as
stipulated by Federal Law "On the Insurance of Household Deposits
with Russian Banks" in respect of the bank's retail deposit
obligations, as defined by law.  The said Federal Law provides for
the payment of indemnities to the bank's depositors, including
individual entrepreneurs, in the amount of 100% of the balance of
funds but no more than a total of RUR1.4 million per depositor.

According to the financial statements, as of December 1, 2018, JSC
RUNETBANK ranked 468th by assets in the Russian banking system.

The current development of the bank's status has been detailed in
a press statement released by the Bank of Russia.



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


LECTA SA: Moody's Alters Outlook on B2 CFR to Negative
------------------------------------------------------
Moody's Investors Service has changed the outlook on Lecta S.A. to
negative from stable. At the same time Moody's affirmed its B2
Corporate family rating, it B2-PD probability of default rating as
well as B2 ratings of the senior secured bonds issued by Lecta.

RATINGS RATIONALE

RATIONALE FOR NEGATIVE OUTLOOK

The rating action reflects that Lecta's performance through 2018
has been below Moody's expectations, in particular when it comes
to cash flow generation. Contrary to the agency's original
expectation Lecta has not continued on a deleveraging trajectory
during the year, keeping its Moody's adjusted debt/EBITDA flat at
6.5x since the beginning of the year, which remains fairly high in
the context of its B2 rating.

Owing to higher capital spending and significant increase in
working capital, the company reported roughly EUR100 million
negative free cash flows (as defined by Moody's, i.e. including
gross capital spending and interest paid) for the nine months to
September 2019. This has led to a material reduction of Lecta's
cash balances to around EUR70 million at the end of September 2018
from roughly EUR140 million at the end of December 2017, making it
more challenging to use Lecta's historically strong liquidity as
compensating factor for its fairly high leverage. While the rating
agency expects that Lecta will be able to partially reverse the
cash burn in the typically seasonally strongest fourth quarter, it
still remains to be seen whether the company will manage to
structurally release working capital and regain a stronger
liquidity buffer, which is also reflected in the negative outlook.

Another risk factor is uncertainty around the further evolution of
Lecta's coated woodfree (CWF) business. During 2018, Lecta managed
to partially compensate for unprecedented cost inflation, in
particular for pulp costs that increased on average by roughly 30%
since the beginning of the year. Success in pushing through higher
selling prices prevented a major deterioration of EBITDA in the
business despite the extremely challenging operating environment.
However, after the summer, the business has started to show signs
of an acceleration of declining demand with high single digit %
volume losses year-on-year, compared to roughly 3-4% on average
since 2008.

If such acceleration persists into 2019, the industry's capacity
utilisation rate will further decline to below 90%, which is
likely to negatively affect the pricing power of CWF producers. At
the same time, Moody's expects input costs to remain high. Whilst
recently showing some signs of stabilisation and even slight
decline, Moody's expects that pulp prices are unlikely to
sustainably weaken over the coming two years. There is relatively
limited new pulp supply coming to the market until 2020 and while
there are indications that a rate of demand increase for paper-
packaging and tissue worldwide, which are increasingly important
drivers for pulp demand, might be somewhat slowing down, the
underlying demand continues to grow. The negative outlook thus
reflects the risk that the rate of Lecta's CWF EBITDA decline will
accelerate in 2019 and it remains to be seen whether ongoing
capacity additions and conversions into specialty paper will
compensate for these pressures sufficiently for Lecta to continue
its deleveraging trajectory.

RATIONALE FOR AFFIRMATION OF THE RATINGS

The affirmation of the ratings primarily reflects the fact that
while its cash buffer has materially reduced, Lecta's liquidity is
still adequate. Apart from roughly EUR70 million cash, as of the
end of September 2018 the company had access to an EUR65 million
revolving credit facility, with EUR15 million drawings. The
facility does not contain any material conditionality language
such as maintenance financial covenants, can be upsized to EUR80
million and matures in 2022. As of the end of September 2018 the
company reported roughly EUR50 million of short-term debt, mostly
overdrafts and drawings under the revolving facility, with the
next material debt maturity being the EUR225 million of floating
rate notes in 2022. However, Moody's cautions that the company has
a relatively sizeable exposure to various supply chain financing
arrangements, including factoring and confirming, some of which
are of short-term nature and uncommitted.

The affirmation also reflects the fact that whilst the
deleveraging trajectory has stopped in 2018 and there are
uncertainties with regards to further deleveraging, the
composition of EBITDA has changed. Now already more than 50% of
EBITDA generation comes from the specialty paper business with
various labelling applications with good underlying growth and
exposure to less cyclical industries, such as food and beverage,
which inherently improves the resilience of the company even
without deleveraging.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Lecta's ratings could be downgraded if Lecta were unable to timely
substitute declining volumes in coated wood free products with a
rising share in higher-margin specialty papers. Quantitatively,
Moody's could downgrade the ratings if (1) Lecta's debt/EBITDA as
adjusted by Moody's were to remain above 6.5x, without a clearly
visible trend of the company being able to continue deleveraging
towards below 6.0x, (2) Lecta's EBITDA margins were to remain
below 6%; (3) Lecta continued with negative FCF generation
resulting in accelerated cash consumption affecting Lecta's
liquidity profile.

At this stage unlikely, Moody's would consider a positive rating
action if Lecta's operating performance was to improve and the
company successfully executes its commercial strategy and cost
cutting plans, resulting in improving profitability through 2016
and better visibility for marked improvements. Quantitatively, a
positive rating action would be considered if EBITDA margins were
to improve towards 9%, debt/EBITDA to below 5.5x, all metrics as
adjusted by Moody's.

The principal methodology used in these ratings was Paper and
Forest Products Industry published in October 2018.



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


TORUK AS: S&P Discontinues Prelim. 'B' Issuer Credit Rating
-----------------------------------------------------------
S&P Global Ratings discontinued all of its ratings on Toruk AS
(Marlink), including the preliminary 'B' issuer credit rating and
the preliminary 'B' issue rating and '3' recovery rating on the
company's first-lien term loans.

S&P discontinued all of its ratings on Toruk AS (Marlink) because
the originally contemplated transaction did not close.


TURKEY: 846 Companies File for Concordatum, Trade Minister Says
---------------------------------------------------------------
According to Bloomberg News' Asli Kandemir, Trade Minister Ruhsar
Pekcan, as cited by state-run Anadolu Agency, said 282 of the
Turkish companies that filed for concordatum, or composition with
creditors, are based in Istanbul, 115 in Ankara and 65 in Izmir.



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


CASTELL PLC 2017-1: Moody's Affirms Caa1 Rating on Cl. F Notes
--------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of three Notes
in Castell 2017-1 Plc. Moody's has also affirmed the ratings of
three Notes:

  GBP186.884 million Class A Notes, Affirmed Aaa (sf); previously
  on Jul 13, 2017 Definitive Rating Assigned Aaa (sf)

  GBP12.542 million Class B Notes, Upgraded to Aaa (sf);
  previously on Jul 13, 2017 Definitive Rating Assigned Aa1 (sf)

  GBP15.051 million Class C Notes, Upgraded to Aa1 (sf);
  previously on Jul 13, 2017 Definitive Rating Assigned Aa3 (sf)

  GBP11.288 million Class D Notes, Upgraded to A3 (sf);
  previously on Jul 13, 2017 Definitive Rating Assigned Baa1 (sf)

  GBP9.382 million Class E Notes, Affirmed Ba2 (sf); previously
  on Jul 13, 2017 Definitive Rating Assigned Ba2 (sf)

  GBP8.279 million F Class F Notes, Affirmed Caa1 (sf);
  previously on Jul 13, 2017 Definitive Rating Assigned Caa1 (sf)

RATINGS RATIONALE

The upgrade actions are prompted by an increase in credit
enhancement for the affected Notes. Moody's affirmed the ratings
of the remaining tranches that had sufficient credit enhancement
to maintain their current ratings.

Increase in Available Credit Enhancement:

Sequential amortisation led to the increase in the credit
enhancement available for the affected Notes. The credit
enhancement of Class B Notes has increased to 35.9% in October
2018, from 22.5% at closing. The credit enhancement has increased
to 25.2% from 16.5% for Class C Notes and to 18.1% from 12.0% for
Class D Notes during the same period.

Revision of Key Collateral Assumptions:

As part of the review, Moody's reassessed the transaction's
lifetime loss expectation, based on the collateral performance to
date. The performance of the transaction has continued to be
stable. Moody's maintained the Expected loss assumption for this
deal at 6.0% of original pool balance.

Moody's has also assessed loan-by-loan information as a part of
its detailed transaction review to determine the credit support
consistent with target rating levels and the volatility of future
losses. As a result, Moody's has maintained the MILAN CE
assumption at 21.0%.

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

Factors or circumstances that could lead to an upgrade of the
ratings include: (1) performance of the underlying collateral that
is better than Moody's expected; and (2) deleveraging of the
capital structure.

Factors or circumstances that could lead to a downgrade of the
ratings include: (1) an increase in sovereign risk; (2)
performance of the underlying collateral that is worse than
Moody's expected; (3) deterioration in the notes' available credit
enhancement; and (4) deterioration in the credit quality of the
transaction counterparties.


DUKINFIELD PLC: Moody's Affirms Ba1 Rating on Class E Notes
-----------------------------------------------------------
Moody's Investors Service has upgraded the ratings of three Notes
in Dukinfield PLC. Moody's has also affirmed the ratings of two
Notes:

GBP326.4 million Class A Notes, Affirmed Aaa (sf); previously on
September 22, 2016 Affirmed Aaa (sf)

GBP37.9 million Class B Notes, Upgraded to Aaa (sf); previously
on September 22, 2016 Affirmed Aa1 (sf)

GBP33.3 million Class C Notes, Upgraded to Aa1 (sf); previously on
September 22, 2016 Upgraded to Aa2 (sf)

GBP 16.1 million Class D Notes, Upgraded to A1 (sf); previously on
September 22, 2016 Upgraded to A2 (sf)

GBP 25.3 million Class E Notes, Affirmed Ba1 (sf); previously on
September 22, 2016 Affirmed Ba1 (sf)

RATINGS RATIONALE

The upgrade actions are prompted by an increase in credit
enhancement for the affected Notes. Moody's affirmed the ratings
of the remaining tranches that had sufficient credit enhancement
to maintain their current ratings.

Increase in Available Credit Enhancement:

Sequential amortisation led to the increase in the credit
enhancement available for the affected Notes. The credit
enhancement of Class B has increased to 35.2% in November 2018
from 26.7% in September 2016. The credit enhancement has increased
to 24.5% from 18.5% for Class C and to 19.3 from 14.6% for Class D
during the same period.

Revision of Key Collateral Assumptions:

As part of the review, Moody's reassessed the transaction's
lifetime loss expectation, based on the collateral performance to
date. The performance of the transaction has continued to be
stable. Moody's maintained the Expected Loss assumption for this
deal at 5.0% of original pool balance.

Moody's has also assessed loan-by-loan information as part of its
detailed transaction review to determine the credit support
consistent with target rating levels and the volatility of future
losses. As a result, Moody's has maintained the MILAN CE
assumption at 21.0%.

Principal Methodology

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
September 2017.

The Credit Ratings for five Classes of Notes in Dukinfield PLC,
were assigned in accordance with Moody's existing Methodology
entitled "Moody's Approach to Rating RMBS Using the MILAN
Framework" dated September 11, 2017. Please note that on November
14, 2018, Moody's released a Request for Comment, in which it has
requested market feedback on potential revisions to its
Methodology for RMBS Using the MILAN Framework. If the revised
Methodology is implemented as proposed, the Credit Ratings on five
Classes of Notes in Dukinfield PLC may be NEUTRALLY affected.
Please refer to Moody's Request for Comment, titled "Proposed
Update to Moody's Approach to Rating RMBS Using the MILAN
Framework" for further details regarding the implications of the
proposed Methodology revisions on certain Credit Ratings.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage. Please see "Moody's Approach to Rating RMBS Using the MILAN
Framework" for further information on Moody's analysis at the
initial rating assignment and the on-going surveillance in RMBS.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Factors or circumstances that could lead to an upgrade of the
ratings include: (i) performance of the underlying collateral that
is better than Moody's expected; and (ii) deleveraging of the
capital structure.

Factors or circumstances that could lead to a downgrade of the
ratings include: (i) an increase in sovereign risk; (ii)
performance of the underlying collateral that is worse than
Moody's expected; (iii) deterioration in the Notes' available
credit enhancement; and (iv) deterioration in the credit quality
of the transaction counterparties.


EYE SMYLE: Collapses Following Funding Problems
-----------------------------------------------
Daily Record reports that Eye Smyle Events Ltd, a Scots wedding
firm, has collapsed leaving heartbroken couples with no
decorations for their big day.

According to Daily Record, the company, run by Deklin Gall, has
denied "scamming" clients but say they have "no funds" left.


GLOBALTRANS INVESTEMENT: Fitch Alters Outlook on BB+ IDRs to Pos.
-----------------------------------------------------------------
Fitch Ratings has revised freight rail transportation company
Globaltrans Investment Plc's (GLTR) Outlook to Positive from
Stable while affirming the company's Long-Term Foreign-Currency
Issuer Default Rating (IDR) at 'BB+'.

The Positive Outlook reflects Fitch's expectations that GLTR will
maintain its robust financial profile with funds from operations
(FFO) adjusted net leverage at below 1.5x, despite high capex and
shareholder distributions as well as expected market rates
correction from 2020. The ratings incorporate GLTR's position as
one of the leading commercial rolling-stock operators, with a
market share of around 7% of Russian freight rail turnover in
1H18, and its exposure to cyclical commodity industries. An
upgrade is likely if the company maintains its prudent financial
policy in spite of the highly cyclical nature of the sector.

Key Rating Drivers

Robust Financial Profile: Fitch expects GLTR to maintain a robust
financial profile with an estimated funds from operations (FFO)
net adjusted leverage well below 1.5x (0.9x in 2017) on average
and strong FFO fixed charge coverage over 2018-2022, due to a low
debt burden. This is based on Fitch's assumptions of moderate
growth of freight rail turnover and expected decline in freight
rates from 2020, together with average annual investments above
the company's maintenance capex and continued payment of high
dividends from 2018, above the company's dividend policy.

Positive FCF Before Dividends: Fitch expects GLTR to continue
generating positive free cash flow (FCF) before dividends in 2018-
2022, due to significantly flexible capex, which Fitch still
expects to be significant. Fitch assumes slightly higher-than-
average annual investments of around RUB10 billion over 2018-2022,
which is well above the historical annual average of RUB3 billion
over 2014-2017. Fitch also assumes a dividend payout ratio of
above 70% over 2018-2022 , which is above the company's dividend
policy and could result in FCF (after dividend) turning negative.

Prudent Financial Policy: GLTR's dividend policy provides a clear
formula-linked mechanism, which is leverage-driven and flexible
depending on the company's financial needs. GLTR is not exposed to
FX fluctuations as only a negligible share of operating expenses
is denominated in foreign currencies. At end-1H18, all of its debt
was denominated in roubles and interest rates were fixed,
eliminating FX or interest rate risk. Following the placement of a
RUB5 billion five-year bond issued by joint-stock company New
forwarding company (100% subsidiary of Globaltrans) in February
2018, GLTR's overall effective interest rate improved to 7.9% at
end-1H18 (9.4% in 2017).

Profitability Offsets Turnover Declines: GLTR's adjusted EBITDA
margin improved to 55% in 1H18 (1H17: 48%). In 1H18, adjusted
revenue increased 19% yoy to RUB30.1 billion while total operating
cash costs increased only 2%. Despite faltering turnover (tonnes
per km), earnings growth was supported by the continued recovery
of gondola rates from 2016, together with an improving capacity
balance in the market. GLTR benefited from the ban on the use of
old railcars from 2016 as its railcars are relativity young with
an average age of 10.1 years and 14 years for gondolas and rail
tank cars at end-1H18, respectively, compared with an average
useful life of 22 years and 32 years.

Volumes and Turnover Temporarily Weaken: Given the healthy
dynamics of the Russian freight rail market, Fitch expects GLTR's
freight rail turnover and volumes will grow in the medium term,
albeit at a slower rate than during 2016-2017 as Fitch forecasts
Russian GDP to increase 1.5%-1.9% in 2019-2022. Its turnover and
volumes have been weak in 2018 due mainly to the company's fleet
rebalancing, which saw GLTR return leased-in railcars in a
decision to expand own fleet instead. The timing difference in the
delivery of railcars led to a temporary drop in average operated
rolling stock by 3% yoy in 1H18, exacerbated by changed client
logistics. Overall, the Russian freight rail market continued to
grow 4.3% and 2.4% yoy in turnover and volume, respectively, in
10M18.

Focus on Higher-Priced Cargoes: GLTR focuses on transportation of
higher-priced cargo categories, including oil products & oil and
metallurgical cargoes, which accounted for 72% of net revenue from
operation of rolling stock and 68% of total freight rail turnover
in 1H18. However, Fitch expects oil and oil products
transportation to remain under pressure from increased competition
from new/existing pipelines and decrease in overall volumes of oil
products. Transportation of coal accounted for 16% of revenue and
21% of turnover.

Long-Term Contracts Add Visibility: The operations under medium-
to long-term contracts with good credit quality counterparties
contributed 55% of net revenue as of 1H18, which increases cash-
flow visibility and secures the use of the company's rail fleet.
However, GLTR remains exposed to volume risk as several agreements
fix only the percentage of customer freight rail transportation
needs, but not actual volumes. GLTR's key customers are the large
Russian industrials, such as Rosneft, OJSC Magnitogorsk Iron &
Steel Works (MMK, BBB-/Stable) and AO Holding Company
Metalloinvest (BB/Positive). The company has recently signed five-
year service contracts with two other clients, TMK and PJSC
Chelyabinsk Pipe Plant (BB-/Stable). However, the company remains
fully exposed to price risk.

Large Operator: GLTR is one of the largest freight railcar
transportation groups in Russia by volume (tonnes-km) with around
a 7% market share in 1H18. It focuses on transportation of higher-
priced cargo, including metallurgical cargo and oil products, and
owns a relatively young rail fleet of over 62,000 railcars, with
lower maintenance and fleet renewal costs than sector peers.

Derivation Summary

GLTR's close competitor is Fitch-rated Russian rolling stock
operator JSC Freight One. Freight One benefits from both a larger
size and market share of 13% vs. GLTR's around 7% in total Russian
freight rail transportation. However, GLTR's rating benefits from
the company's competitive position due to the focus on
transportation of higher priced cargo, including metallurgical
cargo and oil products, and from ownership of a relatively young
rail fleet (11 years vs. almost 16 years for Freight One). This
results in higher efficiency and an adjusted EBITDA margin for
GLTR of above 40% on average over 2014-2017, compared with Freight
One's average 30%. Both GLTR's and Freight One's ratings are
supported by the companies' similar forecast financial profiles
and medium- to long-term contracts with major clients. Fitch views
GLTR's group structure as more complex than that of Freight One.

Key Assumptions

Fitch's Key Assumptions Within its Rating Case for the Issuer:

  - Domestic GDP growth of 1.5%-2% over 2018-2022

  - Inflation of 2.9%-4.6% over 2018-2022

  - Freight transportation rates to increase above inflation in
    2018 but to decline 10% in 2020 and a further 5% in 2021

  - Elevated capex to continue in 2018-2022

  - Dividends above company's dividend policy over 2H18-2022

  - Fitch applied a blended 4x multiple for railcars and 6x
    multiple (standard for Russia) for other assets. For
    railcars, Fitch capitalised a lower, base level of operating
    lease expenses reflecting the flexibility of operating-lease
    contracts, which can be dissolved at relatively short notice
    and the company's demonstrated ability to manage lease costs
    to match the stage of the business cycle. This resulted in a
    lower blended multiple of 4x for railcars.

  - Adjustments to 2017 financials relate primarily to non-cash
    items such as loss on sale of PP&E and impairment of PP&E.

RATING SENSITIVITIES

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

  - Further diversification of the customer base, lengthening of
    contract duration with better volume visibility and lower
    rate volatility

  - Sustainable market share in fleet numbers and consequently
    transported volumes and revenue, allowing greater efficiency

  - Maintenance of FFO net adjusted leverage below 1.5x and FFO
    fixed charge cover above 5x on a sustained basis

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

  - Inability to maintain  FFO lease-adjusted net leverage below
    1.5x and FFO fixed charge coverage above 5x would lead to a
    revision of the Outlook to Stable from Positive

  - A sustained rise in FFO lease-adjusted net leverage above 2x
    and FFO fixed charge cover of below 3x

  - Unfavourable changes to the Russian legislative framework for
    the railway transportation industry

Liquidity and Debt Structure

Adequate Liquidity: Fitch views GLTR's liquidity position as
adequate. As of 1H18 GLTR's cash and cash equivalents were RUB6.2
billion and, together with unused credit facilities of RUB4.2
billion available to subsidiaries with a drawdown period over one
year, were sufficient to cover short-term maturities of RUB5.5
billion. Fitch estimates that FCF (after dividends) may turn
negative in 2018-2019 due to high dividend payment, although the
company's dividend policy remains flexible.


HEALTHCARE SUPPORT: S&P Affirms 'BB+' Rating on Sr. Secured Debt
----------------------------------------------------------------
U.K.-based special purpose entity, Healthcare Support (Newcastle)
Finance PLC (Issuer) issued senior secured debt in 2005 comprising
a GBP115 million senior secured loan from the European Investment
Bank due March 2038 and GBP197.82 million of senior secured bonds
due September 2041. The debt proceeds were lent to Healthcare
Support (Newcastle) Ltd. (ProjectCo) to fund the design and
construction of two new facilities at the Freeman Hospital and the
Royal Victoria Infirmary (RVI), two regional hospitals serving
patients from Newcastle and across Northern England in the U.K.

On Dec. 18, 2018, S&P Global Ratings revised its outlook on
ProjectCo's senior secured debt to negative from stable and
affirming its 'BB+' ratings. The negative outlook indicates that
S&P could lower the ratings by one or more notches if the parties
are unable to resolve the service performance issue over the next
12 months, or the Trust serves ProjectCo with an event of default
notice.

The recovery rating on the senior secured debt remains at '2',
indicating S&P's expectation of substantial recovery (70%-90%;
rounded estimate: 80%) in the event of a default.

ProjectCo operates under a 38-year availability based private
finance initiative (PFI) project agreement with the Newcastle-
Upon-Tyne Hospitals National Health Service (NHS) Foundation Trust
(the Trust) through to September 2043. The new facilities
rationalize the Trust's sites in Newcastle and provide better
facilities for patients in its catchment area. Under the
agreement, ProjectCo provides hard facilities management (FM),
certain nonclinical services to the new facilities and lifecycle
works. The project's availability-based revenue stream -- a
unitary charge paid by the Trust -- underpins stable and
predictable cash flows that support a relatively robust financial
profile because, under normal operating conditions, ProjectCo is
not exposed to material cash flow fluctuations. The project's
operations and maintenance requirements are limited to hard FM
services and the associated cost is fixed (subject to inflation)
under the FM service agreement. ProjectCo retains lifecycle risk,
which is mitigated through the requirement to fund a three-year
forward-looking major maintenance reserve account.

Laing O'Rourke Northern Ltd. (Laing O'Rourke), the construction
contractor, completed the physical construction of the Freeman
Hospital in July 2008 and the RVI facilities in February 2010.
However, the final contractual completion was not achieved until a
settlement agreement was signed in August 2016 following a long-
running dispute between the project parties.

RATING ACTION RATIONALE

-- The parties are yet to resolve their differences regarding
    contractual SFPs, contrary to what S&P anticipated in its
    March 2018 review.

Despite the remedial actions taken by ProjectCo and the FM service
provider, Interserve FM (IFM), in 2017 and 2018, the project's
operational service performance is still below the Trust's
expectations in some areas, and the Trust perceives the service
level to be below the contractual requirements. ProjectCo disputes
the service level shortfall and, consequently, there is a large
discrepancy between the Trust's view of the SFPs compared with
that of ProjectCo, which has strained their relationship further.
Efforts between the project parties to resolve the SFP
discrepancies, such as periodic workshops between operational
staff, senior management, and Trust representatives, have so far
failed to produce an agreement on the final level of SFPs for the
latter part of 2017 and 2018, contrary to what S&P expected at the
time of its review in March 2018. Consequently, the project is
still in distribution lock-up. Moreover, some matters, such as
payment mechanism interpretation and single or combination events,
are still awaiting resolution by a dispute-avoidance committee.
The relationship between ProjectCo and the Trust has been strained
since the disputes that arose during the construction phase.
Positively, ProjectCo and the Trust still maintain an open
dialogue and a meeting between the Trust's chief executive and the
ProjectCo is being scheduled. The Trust recognizes that ProjectCo
is making progress, but still needs to see further improvement to
be satisfied.

-- Failure to resolve the disagreements heightens the risk of
    increased performance deductions and, ultimately, of the
    contract's termination.

The Trust has issued three warning notices linked to high SFPs
that, in its view, exceed the project agreement's threshold level
for three consecutive months (3,122 SFPs). The most recent warning
notice issued for the period July to September 2018, following
notices in June 2017 and February 2018. Two or more warning
notices in any 12-month period is a trigger event under the
collateral deed, resulting in a shareholder distribution lock-up
and the potential for majority creditor intervention. ProjectCo
accepted the first warning notice, but disputes the subsequent two
notices since the level of SFPs stated haven't yet agreed by both
parties. In S&P's opinion, the risk of ProjectCo receiving an
event of default notice increases when the Trust issues more
warning notices. In addition, the longer it takes for the parties
to agree on the final level of SFPs, the more difficult it will be
for ProjectCo to oppose the Trust's view of SFPs. An event of
default could ultimately occur if the agreed SFPs exceed the
contractual threshold levels for a six-month, seven-month, and
eight-month rolling period, as defined in the collateral deed.

The two-year moratorium under the 2016 settlement agreement
expired in August 2018, and since then the Trust is permitted to
withhold unitary charge deductions prior to agreement and sign-off
with ProjectCo. This has led to a total deduction of over GBP1
million to date, which will be adjusted on a future date if the
final agreed figure is different. S&P estimates that the Trust's
view of deductions from July 2017 to present could total up to
GBP5 million, which, once finalized, ProjectCo should be able to
pass down to its subcontractors, IFM and Laing O'Rourke, in
proportion to their liability. However, in the event that all
deductions cannot be passed down, S&P considers ProjectCo to have
sufficient liquidity to cover the residual costs.

OUTLOOK

S&P said, "The negative outlook reflects that we could lower the
ratings by one or more notches if the parties fail to resolve
their differences over service performance over the next 12
months, or if the Trust serves ProjectCo with an event of default
notice. We could also lower the rating if the minimum annual debt-
service coverage ratio (DSCR) under our base case decreases toward
1.1x, which could occur, for example, if the final agreed
performance deductions cannot be passed down in full to the FM
service provider or the construction contractor, or if ProjectCo
faces costs associated with the settlement agreement's remedial
works.

"Additionally, the rating would come under pressure if ProjectCo
is required to replace IFM as the FM service provider and
subsequently incurs higher operating costs than we currently
expect.

"We could revise the outlook to stable once the service
performance deductions up to the current period are finalized and
associated unitary charge deductions are passed down to IFM. The
forecast minimum annual DSCR under our base will need to remain
above 1.13x at all times.

"We currently see an upgrade as unlikely, since we expect it will
take time for the Trust and ProjectCo to re-establish a
constructive working relationship that would minimize the risk of
future conflicts and material penalty deductions. We would also
need to see completion of the settlement agreement's remedial
works before the February 2020 longstop date, performed at LOR's
cost."


NEATH RFC: Owner Willing to Sell Football Club
----------------------------------------------
Gareth Griffiths at BBC Sport Wales reports that Neath owner Mike
Cuddy says he is willing to sell the struggling Welsh Premiership
club.

Wales' oldest club escaped a winding up petition earlier this
month, but has been forced to postpone two league matches, BBC
Sport Wales discloses.

Neath once dominated the amateur game in Wales in the late 1980s,
but are currently bottom of the semi-professional Principality
Premiership, BBC Sport Wales relates.

According to BBC Sport Wales, fans have called for Mr. Cuddy to
leave while 68 former players, including ex-Wales internationals
Paul Thorburn, Duncan Jones and Rowland Phillips, have put their
name to a statement organized by Martyn Morris posted on the
club's website urging ownership to change hands.

Mr. Cuddy initially indicated he wanted to stay and build up the
club again, but now says he is prepared to leave the club because
of his ill-health and believes a takeover could be completed
"within weeks", BBC Sport Wales states.

Players and coaching staff have left the club because of its
perilous financial position, BBC Sport Wales recounts.

Club accounts were frozen, which meant wages could not be paid and
other financial commitments could not be met, BBC Sport Wales
notes.



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


* BOOK REVIEW: Inside Investment Banking, Second Edition
--------------------------------------------------------
Author: Ernest Bloch
Publisher: Beard Books
Softcover: 440 Pages
List Price: US$34.95
Order your personal copy at
http://www.beardbooks.com/beardbooks/inside_investment_banking.htm
l

Even though Ernest Bloch states that "no last word may ever be
written about the investment banking industry," he nonetheless has
written a definitive book on the subject.

Bloch wrote Inside Investment Banking after discovering that no
textbook on the subject was available when he began teaching a
course on investment banking. Bloch's book is like a textbook,
though one not meant to be limited to classroom use. It's a
complete, knowledgeable study of the structure and operations of
the field of investment banking. With a long career in the field,
including work at the Federal Reserve Bank of New York, Bloch has
the background for writing the book. He sought the input of many
of his friends and contacts in investment banking for material as
well as for critical guidance to put together a text that would
stand the test of time.

While giving a nod to today's heightened interest in the
innovative securities that receive the most attention in the
popular media, Inside Investment Banking concentrates for the most
part on the unchanging elements of the field. The book takes a
subject that can appear mystifying to the average person and makes
it understandable by concentrating on its central processes,
institutional forms, and permanent aims. The author shows how all
aspects of the complex and ever-changing field of investment
banking, including its most misunderstood topic of innovative
securities, leads to a "financial ecology" which benefits business
organizations, individual investors in general, and the economy as
a whole. "[T]he marketplace for innovative securities becomes,
because of its imitators, a systematic mechanism for spreading
risk and improving efficiency for market makers and investors,"
says Bloch.

For example, Bloch takes the reader through investment banking's
"market making" which continually adapts to changing economic
circumstances to attract the interest of investors. In doing so,
he covers the technical subject of arbitrage, the role of the
venture capitalist, and the purpose of initial public offerings,
among other matters. In addition to describing and explaining the
abiding basics of the field, Bloch also takes up issues regarding
policy (for example, full disclosure and government regulation)
that have arisen from the changes in the field and its enhanced
visibility with the public. In dealing with these issues, which
are to a large degree social issues, and similar topics which
inherently have no final resolution, Bloch deals indirectly with
criticisms the field has come under in recent years.

Bloch cites the familiar refrain "the more things change, the more
they remain the same" and then shows how this applies to
investment banking. With deregulation in the banking industry,
globalization, mergers among leading investment firms, and the
growing number of individuals researching and trading stocks on
their own, there is the appearance of sweeping change in
investment banking. However, as Inside Investment Banking shows,
underlying these surface changes is the efficiency of the market.

Anyone looking for an authoritative work covering in depth the
fundamentals of the field while reflecting both the interest and
concerns about this central field in the contemporary economy
should look to Bloch's Inside Investment Banking.

After time as an economist with the Federal Reserve Bank of
New York, Bloch was a Professor of Finance at the Stern School of
Business at New York University.



                            *********

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 * * *