/raid1/www/Hosts/bankrupt/TCREUR_Public/190207.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Thursday, February 7, 2019, Vol. 20, No. 027


                            Headlines


A U S T R I A

SCHUR FLEXIBLES: S&P Assigns Prelim. 'B' ICR on Debt Refinancing


C R O A T I A

ULJANIK: FINA Requests Court to Open Bankruptcy Proceedings


G E R M A N Y

TEAMVIEWER TIGERLUXONE: S&P Ups 1st-Lien Facilities Rating to B+


I R E L A N D

AQUEDUCT EUROPEAN 3-2019: Moody's Rates Class F Notes (P)B3(sf)


P O L A N D

GETBACK SA: Agrees to Sell Some Delinquent Loans to Hoist Finance


R U S S I A

BYSTROBANK JSC: Moody's Withdraws B2 Long-Term Deposit Ratings


S P A I N

DIA GROUP: Russian Billionaire Offers to Buy Business for EUR417M
IM BCC PYME 2: DBRS Confirms CC Rating on Series B Notes
IM CAJA LABORAL 2: Fitch Raises Class C Notes Rating to 'B+sf'


S W I T Z E R L A N D

CEVA LOGISTICS: S&P Places 'BB-' Ratings on CreditWatch Negative


T U R K E Y

COLLEZIONE: Granted Initial Three-Month Period of Protection
PAMUKKALE: Court Rejects Request for Bankruptcy Protection


U N I T E D   K I N G D O M

INTERSERVE PLC: Reaches Rescue Deal with Lenders
IVC ACQUISITION: Moody's Assigns B3 CFR, Outlook Stable
IVC ACQUISITION: S&P Assigns Preliminary 'B' Credit Rating


                            *********



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A U S T R I A
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SCHUR FLEXIBLES: S&P Assigns Prelim. 'B' ICR on Debt Refinancing
----------------------------------------------------------------
On Nov. 29, 2018, S&P Global Ratings assigned its preliminary 'B'
issuer credit and issue ratings to Austria-based flexible plastic
packaging producer Schur Flexibles GmbH (Schur), along with a
stable outlook. Schur successfully refinanced its debt in
December 2018. The final terms of the debt facilities are
somewhat more expensive than we anticipated. S&P now expects
negligible free operating cash flow (FOCF) in 2019 versus EUR6
million previously.

As a result, S&P Global Ratings is assigning its 'B' issuer
credit and issue ratings to Schur and revising its outlook to
negative from stable.

The negative outlook reflects the heightened risk of negative
FOCF if Schur fails to achieve substantial improvements in
EBITDA.

S&P said, "The outlook revision to negative follows our revised
expectations of negligible FOCF for 2019 following higher
interest expenses than we expected in the final terms of the debt
structure.

"Our forecasts for 2019 assume a material improvement in EBITDA
and rely on the realization of material synergies and cost
savings. Although the absolute rise in interest costs is not
significant, it puts further pressure on Schur's cash generation.
In 2019, we expect the overall change in cash after debt
repayments to be negative."

The outlook reflects a one-in-three chance that Schur's FOCF
could be negative over the next 12 months. With the exception of
interest costs, S&P's base-case assumptions for Schur have not
changed since we assigned the preliminary rating on Nov. 29,
2019.

S&P said, "We continue to anticipate organic revenue growth of 3%
per year and S&P Global Ratings-adjusted EBITDA margins of about
11.5%-12.0% for 2019-2020. We continue to forecast interest
coverage of above 3.0x in 2019 and 2020. Our adjusted leverage
expectations for 2019 and 2010 remain 5.8x and 5.2x,
respectively.

"The negative outlook reflects the possibility that we could
lower the ratings in about the next 12 months if Schur failed to
improve its profitability and generated negative FOCF.

"We could lower the ratings if Schur experienced unexpected
customer losses or margin pressures--due to higher input costs or
delays in the implementation of its cost rationalizations--
preventing material deleveraging and resulting in negative cash
flows. We could also lower the ratings if debt to EBITDA exceeded
7.0x, or if Schur faced liquidity concerns or had insufficient
headroom under its covenants. In addition, we could lower the
ratings if Schur's financial policy became more aggressive, for
example through the implementation of dividend recapitalizations.

"We could revise the outlook to stable in about the next 12
months if we expect Schur to generate modest FOCF on a
sustainable basis."

Based in Austria, Schur is the fourth-largest flexible packaging
player in Europe. S&P estimates sales and adjusted EBITDA of
EUR512 million and EUR58 million, respectively, for the fiscal
year ending Dec. 31, 2019. The company's end markets are food
(66% of 2017 revenues), health care (11%), specialty products
(11%), and tobacco (12%). The majority of Schur's revenues relate
to conversion (including printed and laminated films), and the
remainder to extrusion (the production of plastic films). Schur
focuses on small and midsize customers, who make up around 70% of
its revenues.

Schur generates 30% of its revenues from the DACH region
(Germany, Austria, and Switzerland), 9% from Southern and Central
Europe, 8% from the Nordics, and 22% from the U.K and Benelux.
The remaining revenues (19%) relate to the rest of the world,
including the U.S. and Asia. Schur's 23 plants are spread all
over Europe, allowing it to serve customers at short notice.

-- Eurozone GDP growth of 2.0% in 2018 and 1.7% in 2019,
    supported by growth in local demand and exports.

-- Annual revenue growth of 3% in 2019 and 2020. In 2019, growth
    will primarily reflect the full-year contribution of
    acquisitions, as well as additional sales in the
    confectionery, tea, and coffee segment. S&P also assumes some
    revenue growth in pharma, tobacco, cheese, and diary.

-- Adjusted EBITDA margins of 11.5% in 2019 and 12% in 2020, up
    from 7% in 2018 (on a pro forma basis). This improvement
    reflects the non-recurrence of the one-off costs that Schur
    incurred in 2017 and 2018, as well as the benefits of recent
    initiatives, such as footprint optimization and improvements
    in product mix.

-- Capital expenditure (capex) of approximately EUR22 million-
    EUR23 million in 2019 and 2020. Two-thirds of this capex
    relate to maintenance and efficiency.

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

-- Adjusted debt to EBITDA of 5.8x in 2019 and 5.2x in 2020;

-- Funds from operations (FFO) to debt of about 10.5% in 2019
    and 12% in 2020;

-- Negligible reported FOCF in 2019 and EUR7.5 million in 2020;
    and

-- FFO to cash interest coverage of 3.1x in 2019 and 3.3x in
    2020.


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C R O A T I A
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ULJANIK: FINA Requests Court to Open Bankruptcy Proceedings
-----------------------------------------------------------
SeeNews reports that Croatia's Financial Agency (FINA) said it
has requested the commercial court in Pazin to open bankruptcy
proceedings against Uljanik shipyard over unpaid debt of HRK75.8
million (US$11.6 million/EUR10.2 million).

The deadline for the repayment of debt expired on Jan. 21, FINA
said in its request published on the website of the Ministry of
Justice, SeeNews relates.

Earlier this month, the commercial court in Rijeka launched a
procedure for establishing the prerequisites for opening
bankruptcy proceedings against the 3 Maj shipyard, part of
Croatia's Uljanik shipbuilding group, SeeNews recounts.

According to SeeNews, the Uljanik Group which comprises 12
subsidiaries, including shipyards 3 Maj in Rijeka and Uljanik in
Pula, has been in financial trouble for some time due to the
adverse effects of the global financial crisis on the
shipbuilding sector in general which has led to a drop in orders
for new vessels.



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G E R M A N Y
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TEAMVIEWER TIGERLUXONE: S&P Ups 1st-Lien Facilities Rating to B+
----------------------------------------------------------------
S&P Global Ratings raised to 'B+' from 'B' its issue rating on
the first-lien facilities issued by TeamViewer (TigerLuxOne). At
the same time, S&P revised up to '2' from '3' the recovery rating
on the first-lien facilities.

S&P said, "We reviewed the recovery rating in line with two
publications: The guidance document "Guidance: Recovery Rating
Criteria For Speculative-Grade Corporate Issuers" that we updated
on June 4, 2018. It is related to "Recovery Rating Criteria For
Speculative-Grade Corporate Issuers"; and The article titled
"Recovery Expectations For Certain Speculative-Grade Corporate
Issuers Updated Following Review Of The Largest Issuers," that we
published on July 27, 2018. TigerLuxOne's first-lien facilities
consist of a $35 million revolving credit facility (RCF) and $325
million and EUR226 million term loans due 2024. Our revised
recovery rating of '2' indicates our expectation of meaningful
recovery prospects (70%-90%, rounded estimate: 75%) in the event
of a hypothetical default.

"The revision of our estimated recovery prospects reflects our
most recent benchmarking of TeamViewer's business against other
peers in the software industry and the progress it is making in
moving from license- to subscription-based revenues, which we
consider are recurring and more-predictable. In addition, our
assessment also acknowledges the material portion of second-lien
debt in the capital structure (about 25% of third-party debt),
which acts as a cushion for first-lien creditors. These
considerations induced us to revise the valuation multiple to
6.5x from 6.0x, as well as removing the negative operational
adjustment.

"Our updated guidance document is intended to be read in
conjunction with the criteria article, which was published on
Dec. 7, 2016. It provides additional information and guidance
related to the use of adjustments in the application of the
related criteria.

"We updated the guidance document after our analysis of an
empirical recovery study published on May 1, 2018, and our
subsequent sector reviews. The May 1 study, which showed
consistently strong recovery levels over the period covered,
demonstrated to us that it is appropriate to make greater use of
the analytical adjustments described in the recovery rating
criteria when assigning recovery ratings to first-lien debt
instruments in specific circumstances. The guidance document
provides more details about the circumstances under which these
adjustments might apply. Our application of the recovery rating
criteria will continue to factor in evolutions in the empirical
data and trends that we may observe in the leveraged market over
time."

SIMULATED DEFAULT ASSUMPTIONS

-- Simulated year of default: 2022

-- Minimum capex at 1% of historical three-year annual average
     revenues, based on historically low minimum capex
     requirement.

-- Cyclicality adjustment factor: +5% (standard assumption for
    the technology software and services sector)

-- Operational adjustment: 0%

-- Cash EBITDA at emergence: about EUR66 million

-- Implied enterprise value (EV) multiple: 6.5x

-- Jurisdiction: Germany

SIMPLIFIED WATERFALL

-- Gross recovery value: about EUR426 million

-- Net value available to creditors after admin expenses (5%):
    EUR404 million

-- Estimated first-lien debt claims: EUR531 million*

-- Recovery range: 70%-90% (rounded estimate 75%)

-- Recovery rating: 2

-- Value available for second-lien senior secured claims: zero

-- Estimated second-lien senior secured debt claims: EUR184
    million*

    --Recovery expectations: 0%-10% (rounded estimate: 0%)

-- *All debt amounts include six months of prepetition interest.

-- S&P assumes that the RCF is 85% drawn at default.



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AQUEDUCT EUROPEAN 3-2019: Moody's Rates Class F Notes (P)B3(sf)
---------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Aqueduct
European CLO 3-2019 Designated Activity Company:

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

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

EUR 45,500,000 Class B Senior Secured Floating Rate Notes due
2032, Assigned (P)Aa2 (sf)

EUR 23,500,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)A2 (sf)

EUR 27,500,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)Baa3 (sf)

EUR 23,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)Ba3 (sf)

EUR 9,500,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)B3 (sf)

RATINGS RATIONALE

Moody's provisional rating of the rated notes addresses the
expected loss posed to noteholders by the legal final maturity of
the notes in 2032. The provisional 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, HPS Investment
Partners CLO (UK) LLP, has sufficient experience and operational
capacity and is capable of managing this CLO.

Aqueduct European CLO 3-2019 Designated Activity Company 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.

HPS 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 seven classes of notes rated by Moody's, the
Issuer will issue EUR 41.225 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.

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. HPS' investment decisions and
management of the transaction will also affect the notes'
performance.

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

Par amount: EUR 400,000,000

Diversity Score: 44

Weighted Average Rating Factor (WARF): 2840

Weighted Average Spread (WAS): 3.50%

Weighted Average Coupon (WAC): 5.00%

Weighted Average Recovery Rate (WARR): 43.5%

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.



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GETBACK SA: Agrees to Sell Some Delinquent Loans to Hoist Finance
-----------------------------------------------------------------
Konrad Krasuski at Bloomberg News reports that debt
collector GetBack SA agreed to sell about a third of its
delinquent loans to Sweden's Hoist Finance AB for PLN398 million
(US$107 million) and pledged to seek buyers for the remaining
part of its assets to repay creditors burnt in Poland's largest
corporate default.

The deal is expected to close in the middle of April, GetBack
said in a regulatory filing, Bloomberg relates.  Proceeds from
the sale of mainly non-performing unsecured consumer loans will
allow it to repay bank loans and release collateral on other
portfolios it manages, Bloomberg states.

GetBack collapsed in April, overwhelmed by the cost of ballooning
debt taken for overly aggressive expansion, Bloomberg recounts.
The company is in restructuring proceedings and promised to sell
assets to repay at least part of its PLN3.2 billion of
liabilities, Bloomberg discloses.

Even with the money that will be paid by Hoist, investors in the
Polish debt collector's debt will face a significant haircut,
Bloomberg notes.  The company's restructuring plan, approved by
creditors last month, assumes that it will repay 25% of debt to
bondholders, with installments spread over eight years, Bloomberg
relays.



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BYSTROBANK JSC: Moody's Withdraws B2 Long-Term Deposit Ratings
--------------------------------------------------------------
Moody's Investors Service withdrawn the following ratings of
BystroBank JSC:

  - Long-term local and foreign currency bank deposit ratings of
B2

  - Short-term local and foreign currency bank deposit ratings of
Not Prime

  - Long-term local and foreign currency Counterparty Risk
Ratings of B1

  - Short-term local and foreign currency Counterparty Risk
Ratings of Not Prime

  - Long-term Counterparty Risk Assessment of B1(cr)

  - Short-term Counterparty Risk Assessment of Not Prime(cr)

  - Baseline Credit Assessment (BCA) of b2, and

  - Adjusted BCA of b2

At the time of the withdrawal, the bank's long-term deposit
ratings carried a positive outlook.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings for its own business
reasons.

Headquartered in City of Izhevsk, BystroBank JSC is a relatively
small financial institution, ranking 115th by total assets among
Russian banks as of June 30, 2018. As of the same date, the bank
reported total assets under IFRS of RUB36.5 billion, and total
equity of RUB4.1 billion. In the first half of 2018, BystroBank
JSC posted net income of RUB380 million.


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S P A I N
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DIA GROUP: Russian Billionaire Offers to Buy Business for EUR417M
-----------------------------------------------------------------
Ian Mount at The Financial Times reports that Russian billionaire
Mikhail Fridman has offered to buy Dia Group in a deal that gives
the struggling Spanish supermarket chain an equity value of
EUR417 million, a deep discount from its EUR2.7 billion valuation
at the end of 2017.

According to the FT, Mr. Fridman's holding company, LetterOne,
which owns 29% of Dia through its L1 Retail fund, has offered to
purchase the rest of the company for EUR0.67 a share, a premium
of 56% to the Feb. 4 closing price.  LetterOne bought much of its
existing stake early last year, when shares were trading at about
EUR4, the FT recounts.

LetterOne first bought into Dia in mid-2017 and the chain's
prospects began to dim not long after sales fell, the FT notes.
Last year, chairwoman Ana MarĀ°a Llopis resigned, the chief
executive was replaced twice, its 2017 earnings had to be
restated, its dividend was slashed and its debt downgraded to
junk, the FT relates.  It had lost more than 90% of its market
value in the past year, the FT discloses.

LetterOne and Dia had clashed over a turnround plan and in
December, LetterOne's three board representatives resigned in
protest, the FT recounts.

Dia subsequently announced a refinancing deal, which offered it
access to EUR900 million in short-term financing and working
capital, but was dependent on a EUR600 million rights issue in
the first quarter, the FT relays.

Instead, L1 Retail, as cited by the FT, said, it would inject
EUR500 million into the company if the bid were successful, with
L1 putting up a share equal to its post-buyout ownership stake
and underwriting the rest.  This commitment, however, is
dependent on Dia's lenders agreeing to a long-term debt
restructuring, the FT states.

Dia had EUR1.4 billion in net debt at the end of September,
including EUR900 million in bonds, according to the FT.


IM BCC PYME 2: DBRS Confirms CC Rating on Series B Notes
--------------------------------------------------------
DBRS Ratings GmbH upgraded its rating to AA (high) (sf) from A
(high) (sf) on the Series A Notes and confirmed its CC (sf)
rating on the Series B Notes, issued by IM BCC Cajamar PYME 2, FT
(the Issuer).

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

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

   -- The deleveraging of the transaction, accelerated by the
repurchase of part of the portfolio by Cajamar Caja Rural,
Sociedad Cooperativa de Credito (Cajamar or the Originator).

   -- Portfolio performance, in terms of delinquencies and
defaults, as of 30 November 2018.

   -- Portfolio default rates, recovery rates and expected loss
assumptions for the remaining collateral pool.

   -- The credit enhancement (CE) available to the Series A and
Series B Notes to cover the expected losses at their respective
rating levels.

The issuer is a cash flow securitization collateralized by a
(static) portfolio of term loans originated by Cajamar to small
and medium-sized enterprises (SMEs) and self-employed individuals
based in Spain.

PORTFOLIO PERFORMANCE AND ASSUMPTIONS

The portfolio is performing within DBRS's expectations. As of 30
November 2018, the portfolio consisted of 8,743 loans with an
aggregated principal balance of EUR 488.6 million. There were no
cumulative defaults reported and the 90+ delinquency ratio stood
at 0.7%.

DBRS conducted a loan-by-loan analysis on the remaining pool and
updated its default rate and recovery assumptions.

CREDIT ENHANCEMENT

The CE available to all rated notes continues to increase as the
transaction deleverages. As of the November 2018 payment date,
the CE available to the Series A Notes and Series B Notes was
55.3% and 6.1%, respectively, up from 27.0% and 3.0%,
respectively, at closing.

The transaction benefits from a EUR 30.0 million Reserve Fund
(RF), available to cover missed interest on the Series A Notes,
and once the Series A Notes are fully paid, interest on the
Series B Notes throughout the life of the deal. The RF cannot be
amortized during the life of the transaction and will be
replenished up to its required/initial level of EUR 30.0 million
on each payment date if it was used by the SPV on previous
payment dates.

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

Notes: All figures are in euros unless otherwise noted.


IM CAJA LABORAL 2: Fitch Raises Class C Notes Rating to 'B+sf'
--------------------------------------------------------------
Fitch Ratings has upgraded two tranches and affirmed six tranches
of two Spanish RMBS transactions.

The Spanish prime RMBS transactions comprise loans originated and
serviced by Caja Laboral Popular Cooperativa de Credito
(BBB+/Stable/F2).

KEY RATING DRIVERS

Stable or Improving Credit Enhancement (CE)

Fitch expects structural CE to remain stable over the short-to
medium-term for IM Caja Laboral 1, FTA (Laboral 1) as the
transaction continues to amortise pro rata in the coming months.
Conversely, Fitch expects CE for IM Caja Laboral 2, FTA (Laboral
2) notes to increase slightly as this transaction will continue
to amortise on a sequential basis. Fitch views these CE trends as
sufficient to withstand the rating stresses, leading to the
upgrades and affirmations.

Stable Asset Performance

The rating actions reflect Fitch's expectation of stable credit
trends given the significant seasoning of the securitised
portfolios of more than 12 years, the prevailing low interest
rate environment and the Spanish macroeconomic outlook. Three-
month plus arrears (excluding defaults) as a percentage of the
current pool balance remained below 1% in both transactions as of
the latest reporting date while cumulative default rates stood at
0.8% and 5.2% for Laboral 1 and Laboral 2 initial portfolio
balances, respectively, both below the average of Spanish RMBS
transactions rated by Fitch.

Portfolio Risk Attributes

The securitised portfolios are exposed to geographical
concentration in the regions of Basque Country and Castilla Leon.
In line with Fitch's European RMBS rating criteria, higher rating
multiples are applied to the base foreclosure frequency
assumption to the portion of the portfolio that exceeds 2.5x the
population within these regions. Additionally, around 15% and 12%
of Laboral 1's and Laboral 2's portfolios, respectively, is
linked to loans to self-employed borrowers, which are higher-risk
than borrowers with third-party dependent employment contracts,
and are subject to a foreclosure frequency increase factor of
70%.

Payment Interruption Risk Mitigated

The transactions are viewed by Fitch as sufficiently protected
against payment interruption risk in a scenario of servicer
disruption. Liquidity sources are sufficient to mitigate
liquidity stresses, covering at least three months of senior fees
and interest payment obligations on the senior securitisation
notes, until an alternative servicing arrangement is implemented.

RATING SENSITIVITIES

A worsening of the Spanish macroeconomic environment, especially
employment conditions, or an abrupt shift of interest rates could
jeopardise the underlying borrowers' affordability. This could
have negative rating implications, especially for junior tranches
that are less protected by structural CE.

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.

The rating actions are as follows:

IM Caja Laboral 1, FTA

Class A (ISIN ES0347565006): affirmed at 'AAAsf'; Outlook Stable

Class B (ISIN ES0347565014): affirmed at 'AA-sf'; Outlook Stable

Class C (ISIN ES0347565022): affirmed at 'A+sf'; Outlook Stable

Class D (ISIN ES0347565030): affirmed at 'BB+sf'; Outlook Stable

Class E (ISIN ES0347565048): affirmed at 'CCCsf'; Recovery
Estimate (RE) reduced to 50% from 90%.

IM Caja Laboral 2, FTA

Class A notes (ISIN ES0347552004): affirmed at 'AAAsf'; Outlook
Stable

Class B notes (ISIN ES0347552012): upgraded to 'A+sf' from 'A-
sf'; Outlook Stable

Class C notes (ISIN ES0347552020): upgraded to 'B+sf' from 'B-
sf'; Outlook Stable


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S W I T Z E R L A N D
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CEVA LOGISTICS: S&P Places 'BB-' Ratings on CreditWatch Negative
----------------------------------------------------------------
French container liner CMA CGM S.A., which currently owns about a
third of Switzerland-based CEVA Logistics AG, has entered into
forward share purchase and total return swap agreements with
banks to acquire further shares in CEVA, with the likely purchase
granting CMA CGM majority ownership (50.6%) and control of CEVA.

In addition, CMA CGM made a voluntary public tender offer of
Swiss franc 30 per share to CEVA's shareholders, which could
result in CMA CGM's ownership exceeding the expected 50.6%. If
the transaction goes ahead, we would assess CEVA's overall credit
quality within the context of the creditworthiness of the two
entities combined, and expect the combined group's credit profile
will be one notch lower than our current rating on CEVA.

S&P Global Ratings is therefore placing its 'BB-' ratings on CEVA
on CreditWatch with negative implications and assigning a
preliminary 'B+' issue rating to the company's $825 million
proposed term loan B. The recovery rating on the debt is '4',
reflecting S&P's expectation of average recovery (30%-50%;
rounded estimate: 45%) in the event of a payment default.

The CreditWatch placement reflects S&P's view that CMA GGM's
acquisition of CEVA will almost certainly go ahead. CMA CGM,
which currently owns about a third of CEVA, entered into a
forward share purchase and total return swap agreements with
banks in January 2019 to acquire further shares in CEVA. The
likely purchase, currently subject to antitrust authorities'
approval, will grant CMA CGM the majority ownership (50.6%) and
control of CEVA. In addition, on Jan. 28, 2019, CMA CGM made a
voluntary public tender offer of Swiss franc (CHF) 30 per share
to CEVA's shareholders, which could result in CMA CGM's ownership
exceeding the expected 50.6%.

S&P said, "If the transaction goes ahead and CMA CGM gains
control over CEVA, we would assess CEVA's overall credit quality
within the context of the creditworthiness of the two entities
combined, and CEVA's status within the enlarged group. Based on
the expected formation of the larger group and the depth of
relations between its subsidiaries, when the transaction closes
we anticipate we will treat CEVA as a core entity and will
therefore equalize our rating on the company with that on its new
parent, and the consolidated group credit profile (GCP). Based on
our revised preliminary view of the combined entity, we expect
this will be one notch lower than our current rating on CEVA.
Consequently, we will likely lower the rating on CEVA by one
notch to 'B+' from 'BB-' after the transaction closes.

"We expect the GCP will primarily be constrained by the group's
higher level of financial leverage compared with CEVA on a stand-
alone basis. We revised our consolidated forecast based on our
better-informed view of CEVA's and CMA CGM's operating
performance in 2018, which for both companies was weaker compared
with 2017 and our expectations, and more visibility regarding
prospects for 2019. Our base case forecasts reported EBITDA for
CEVA of about $190 million in 2018 (compared with about $210
million in 2017) and $1.2 billion in 2018 for CMA CGM (compared
with $2.2 billion in 2017). Based on this, we anticipate the
consolidated entity's credit ratios of S&P Global Ratings-
adjusted funds from operations (FFO) to debt of about 12% and
adjusted debt to EBITDA of 5.0x-5.2x at transaction close, will
not support our 'BB-' issuer credit rating on CEVA. We consider a
ratio of adjusted FFO to debt of above 16% as commensurate with
our 'BB-' rating level, and now believe that this will be
difficult to achieve in 2019.

"Nevertheless, we do consider that the acquisition could bring
benefits other than larger scale, such as an enhanced product
offering; improved customer proposition; and closer integration
of services, resulting in potential operating and revenue
synergies across the two businesses that could help
counterbalance the effect of this high leverage over time. In
addition to these synergies' potential, we believe the
consolidated group could benefit from improvement in CEVA's and
CMA CGM's stand-alone credit metrics during 2019 and into 2020.
In our view, there is at least a one-in-three chance that the
adjusted FFO to adjusted debt ratio of the combined entity could
exceed 16% in the next 12 months, which would be consistent with
a higher rating. We would likely reflect this possibility in a
positive outlook on the combined group after transaction closing.

"We believe that in 2019-2020, CEVA's EBITDA will likely increase
after the contract logistics operations in Italy (Italian
business depressed the company's EBITDA by $42 million in the
first nine months of 2018) and other onerous contracts have been
largely restructured or disposed, and margin improvement
initiatives take effect."

CMA CGM will likely see overall demand-and-supply conditions
shift in favor of ocean carriers after a difficult 2018 that saw
container liners struggle to pass through elevated bunker fuel
prices via higher freight rates, particularly in the first half
of the year. With no incentive to place new large orders,
demonstrated by muted contracting activity since late 2015, the
containership order book has reached close to its historical low
of 13% of the total global fleet. Combined with funding
constraints and more stringent regulations aiming to cut sulfur
emissions to 0.5% as of January 2020, these factors will likely
help restore the demand-and-supply balance in the containership
segment into 2019-2020. However, S&P remains cautious in its
expectations for freight rates, forecasting a low single-digit
average increase in fixed-bunker revenue per twenty-foot-
equivalent (TEU; a measure of container-carrying capacity) for
CMA CGM in 2019-2020. This compares with a flat growth rate S&P
expects CMA CGM achieved in 2018. S&P believes that persistent
significant deliveries of greater than 12,000 TEU containerships
scheduled in 2019 will constrain freight rates, in particular on
the main Asia-Europe and Transpacific lanes (where these mega-
containerships operate), despite the likely favorable demand-and-
supply balance in the industry in general. Risks are also evident
in the outlook for global trade volumes, which S&P expects will
expand by a low-to-mid single rate, coming most significantly
from the ongoing U.S.-China trade tensions. Bearing in mind the
supply pressure coming from the deliveries of ultra-large
containerships, freight rates will ultimately depend upon how
prudent the leading container liners are in their capacity
management and rate-setting decisions, which are even more
important given volatile bunker fuel prices.

S&P said, "The CreditWatch negative reflects that we would likely
downgrade CEVA by one notch upon its acquisition by CMA CGM. We
believe that if CMA CGM becomes CEVA's controlling shareholder,
the credit profile of the enlarged combined group will likely be
one notch lower than that of CEVA on a stand-alone basis, and
that this would then cap our rating on CEVA.

"We aim to resolve the CreditWatch within the next three months
after the acquisition is complete and once we have reviewed the
new formation of the larger group, its final capital structure,
and its financial policy.

"We assigned our preliminary 'B+' rating to the proposed $825
million term loan B to be issued by CEVA Logistics AG through
CEVA Logistics Finance, the proceeds of which will be used to
refinance CEVA's existing term loan B and notes. The issue rating
reflects our view of CEVA's expected creditworthiness after its
acquisition by CMA CGM. The recovery rating on the proposed term
loan B is '4', indicating our expectation of average recovery
(30%-50%; rounded estimate: 45%) in the event of a payment
default."

The preliminary rating is subject to the successful completion of
the transaction, and to our review of the final documentation. If
S&P Global Ratings does not receive the final documentation
within a reasonable timeframe, or if the final documentation
materially departs from the information we have already reviewed,
S&P reserves the right to revise or withdraw its rating.



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


COLLEZIONE: Granted Initial Three-Month Period of Protection
------------------------------------------------------------
Ahval reports that retail clothing company Collezione, which has
120 stores in Turkey and beyond, was granted an initial
three-month period of protection on Jan. 22.

According to Ahval, Turkish firms have been facing cash shortage
problems for the past five months due to the slide in Turkish
lira and Turkish central bank's decision to hike interest rates
to curb the raising inflation.


PAMUKKALE: Court Rejects Request for Bankruptcy Protection
----------------------------------------------------------
Ahval, citing BBC, reports that Turkish intercity bus company
Pamukkale, which employs 3,500 people, was declared bankrupt
after the ruling of a court.

A court in the Aegean province of Izmir rejected the company's
request for bankruptcy protection on Jan. 24, Ahval discloses.
According to Ahval, BBC said in weighing Pamukkale's request, the
court examined the company's finances, determining that there was
no potential for the company to continue operating.

The 56-year-old company filed for bankruptcy protection on
Nov. 27 and the courts had given three months for deliberations,
Ahval relays, citing Turkish news site Diken.


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


INTERSERVE PLC: Reaches Rescue Deal with Lenders
------------------------------------------------
Noor Zainab Hussain and Pushkala Aripaka at Reuters report that
Interserve has struck a rescue deal that will see lenders take
control of the company by swapping millions of pounds worth of
debt for new shares, giving the troubled outsourcing group a
chance of survival.

Racing to avert a collapse like that of peer Carillion,
Interserve said on Feb. 6 it would cut debt by more than half to
about GBP275 million after creditors wrote off loans in return
for new equity worth 97.5% of the share capital, Reuters relates.

Existing shareholders, who saw the company lose 90% of its value
in 2018, will largely be wiped out, Reuters states.

A remaining GBP350 million of debt has been allocated to its
profitable building materials business RMDK, which has been
ringfenced in a move agreed with lenders and government, Reuters
notes.

Interserve is one of Britain's biggest outsourcing and
construction companies, employing 75,000 globally to deliver
contracts including cleaning hospitals and serving school meals,
Reuters discloses.

Its high level of debt had come under intense scrutiny after peer
Carillion collapsed last year under a weight of debt and pension
dues, forcing the government to step in to guarantee services,
Reuters recounts.

According to Reuters, Interserve, which had more than GBP600
million (US$776.34 million) in debt, was forced in December to
ask to defer a debt payment after it said in November that it was
struggling with project delays and a weak construction market.


IVC ACQUISITION: Moody's Assigns B3 CFR, Outlook Stable
-------------------------------------------------------
Moody's Investors Service assigned a B3 corporate family rating
and a B3-PD probability of default rating to UK-based veterinary
clinics operator IVC Acquisition Midco Ltd. Concurrently, Moody's
has assigned B2 ratings to the proposed senior secured first lien
term loans maturing in 2026, split into a GBP432 million
Sterling-denominated tranche B1 and a GBP350 million equivalent
Euro-denominated tranche B2. Moody's has also assigned a B2
rating to the proposed pari passu ranking GBP200 million
revolving credit facility (RCF) maturing in 2025. Senior secured
first lien facilities shall be borrowed by IVC Acquisition Ltd.
The outlook is stable.

The proceeds from the new facilities will primarily serve to
refinance the group's existing debt, pre-fund acquisitions and
pay for the transaction fees and expenses.

The new rating assignments principally reflect the following
factors:

  -- Very high Moody's adjusted leverage at opening

  -- Acquisitive group with short track record of executing
transactions at the current pace and heavy reliance on debt
funding

  -- Large and vastly unconsolidated market, with attractive
demand patterns

  -- Strong expansionary growth historically, leading to
economies of scale and margin improvements

RATINGS RATIONALE

IVC's B3 CFR primarily reflects its very high leverage and
aggressive capital structure. At the end of September 2018 and
pro forma for the proposed refinancing, Moody's adjusted gross
debt/EBITDA was 8.6x including the full year impact of
acquisitions completed in the previous twelve months and related
procurement synergies (7.65x including the EBITDA contribution
from clinics with a signed letter of intent and whose acquisition
is funded by the proposed structure).

Moody's expects that the group will continue to acquire clinics
at a very high pace, at least in line with the fiscal year 2018,
ended September 30, 2018. Valuations will be at least as high as
IVC's adjusted leverage therefore deleveraging will be slow
unless shareholders contribute meaningfully to acquisition
funding. In this context, Moody's does not expect that levered
free cash flow (FCF) generation in the range of GBP20 -- 40
million per annum in fiscals 2019 and 2020 will materially
support the acquisition activity. Despite good cash conversion
otherwise, helped by increasingly negative working capital as the
scale of the business increases, interest payments will represent
around half of EBITDA and be a drag on cash flows.

IVC is yet to demonstrate that it can maintain the current pace
of acquisitions and further benefit from economies of scale
related to procurement and overheads, in particular staff at
country and headquarter level. Similarly, just under half of the
UK portfolio at the end of September 2018 had at least a two-year
track record of organic revenue growth. However, the group has
historically recorded organic growth above the market's according
to third party consultants.

IVC's credit profile is supported by its successful expansionary
growth historically, characterised by a three-year management
EBITDA margin improvement of around 100 bps per annum to well
over 10% in fiscal 2018. This was achieved through procurement
and staff synergies in the wake of the combination of IVC and
Evidensia under EQT's ownership.

Historic financial performance has been supported by the steady
veterinary market growth in Europe of around 4% per annum. Demand
patterns tend to be resilient and attractive thanks to pet
humanisation trends which increase the frequency of vet visits as
well as the complexity of care and therefore the spend per visit.
The group's financial history points to low demand elasticity,
indicative of a degree of resilience to economic cycles, but
Moody's believes that the affordability of IVC's services rely to
a certain extent on disposable income.

Moody's views IVC's near-term liquidity position as adequate. The
rating agency expects that IVC will maintain at least GBP30 -
GBP40 million of cash on balance sheet throughout the year
(excluding cash earmarked for acquisitions). As part of the
refinancing transaction, the group will have access to a new
GBP200 million senior secured first lien RCF due 2025, which will
be undrawn at closing. It will have a net senior leverage
springing covenant, under which the company will retain
sufficient headroom. Given IVC's highly acquisitive strategy,
Moody's expects that the group will draw on its RCF or borrow
incremental facilities, noting that the debt documentation allows
IVC to slightly increase its leverage from the opening level.

The B2 ratings on the GBP200 million senior secured first lien
RCF, GBP432 million senior secured first lien term loan B1 and
GBP350 million equivalent Euro-denominated senior secured first
lien term loan B2, one notch above the CFR, reflect their
priority ranking ahead of the GBP238 million senior secured
second lien term loan.

RATIONALE FOR STABLE OUTLOOK

The stable outlook on IVC's ratings reflects Moody's expectation
that the group will continue to grow revenue and EBITDA
organically and at least maintain stable margins. The stable
outlook also factors in positive free cash flow generation,
adequate liquidity and a degree of debt-funded acquisitions.

WHAT COULD CHANGE THE RATING UP/DOWN

IVC's ratings could experience positive pressure should the group
continue to build a successful track record of acquisition
integration and synergies whilst maintaining solid organic growth
rates and reducing Moody's adjusted leverage to around 6.5x on an
ongoing basis. In addition, an upgrade would require an uplift in
cash flow coverage metrics such as retained cash flow/net debt
and FCF/debt.

Conversely, IVC's ratings could experience downward pressure if
(1) the group's like-for-like revenue or EBITDA metrics softened
or, (2) FCF generation turned negative on a sustainable basis or,
(3) the liquidity position and covenant headroom deteriorated or,
(4) EBITA/interest expense fell below 1.0x. In addition, an
increase in first lien leverage sustainably above the opening
level could result in a downgrade of the B2 instrument ratings.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.


IVC ACQUISITION: S&P Assigns Preliminary 'B' Credit Rating
----------------------------------------------------------
U.K.-based veterinary services provider IVC Acquisition Topco
Ltd. intends to refinance its existing capital structure.
Although IVC is the leading consolidator of veterinary practices
in Europe, it has financed much of its expansion through debt and
is now highly leveraged. S&P Global Ratings is assigning its
preliminary 'B' credit rating to IVC Acquisition Topco Ltd. and
its proposed term loan and revolving credit facility (RCF).

S&P's ratings on IVC reflect the group's leading positions in its
main markets -- Sweden and the U.K. Although these markets remain
relatively fragmented, they benefit from positive dynamics and
are resilient to economic cycles.

The secured debt that the group proposes to issue through IVC
Acquisition Ltd. as part of its refinancing includes:

-- A GBP200 million RCF due 2025,
-- A GBP432 million term loan B1, and
-- A GBP350 million-equivalent term loan B2, denominated in
    euros.

Both of these term loans are due in 2026. S&P has assigned its
preliminary 'B' issue-level ratings to the company's proposed
secured debt and its and '3' recovery ratings indicate that it
sees recovery prospects of 50%-70% (rounded estimate: 65%).

The capital structure also includes a GBP238 million second-lien
term loan, also due in 2027, and GBP118 million payment-in-kind
(PIK) notes. These are not rated.

S&P said, "The final ratings will be subject to the successful
closing of the proposed issuance and will depend on our receipt
and satisfactory review of all final transaction documentation.
Accordingly, the preliminary ratings should not be constructed as
evidence of the final ratings. If the final debt amounts and
terms of the final documentation depart from the materials we
have already reviewed, or if we do not receive the final
documentation within what we consider to be reasonable time
frame, we reserve the right to withdraw or revise our ratings."

The European veterinary services industry benefits from favorable
dynamics, including loyal customers and a favorable payment
system. Like the U.S. veterinary services industry, most users
pay in cash. Cash payments support the group's cash flow
generation. Pet insurance is gaining a foothold in some markets;
about 80% of registered pets in Sweden have insurance and about
40% of those in Denmark and Norway. In the U.K., approximately
30% of pet owners had at least one pet insured in 2016 (up from
25.5% in 2011) and pet insurance is gaining ground.

Pet health insurance is not prevalent in other national markets.
According to an estimate, approximately 80% of the payor profile
is pet owners and the remaining 20% is insurance companies. This
is broadly comparable with the U.S.

The industry's growth stems from like-for-like price increases,
an increase in pet population, an increase in the number of
visits, and a shift toward more-complex care treatments. Pet
ownership is growing in line with population growth, at about
0.5% per year in Europe. Owners are also spending more on their
pets because of an increased awareness of animal health. S&P
expects the market will grow at an average compound annual rate
of about 3.5%-4.0% in 2017-2022.

Despite ongoing consolidation, the veterinary service market is
still relatively fragmented, increasingly competitive, and has
relatively low barriers to entry. S&P considers that external
players could easily enter the market by acquiring a small clinic
in a neighborhood/region of operation. Nevertheless, the
relationship between local vets and their customers should
prevail over pricing considerations, given the importance
customers place on the quality of services and knowledge of their
vet.

The market is dominated by a large number of small independent
clinics; veterinary practice groups account for only a small
proportion of the total addressable market, which S&P's estimate
is about EUR10 billion. This presents a consolidation
opportunity, in our view, and we see the group as well-positioned
to be one of the leading players in its core markets.

IVC's high concentration in the U.K. and Sweden, which act as
hubs for acquisitions in other countries, enable it to
consolidate across Europe. IVC enjoys a No. 1 position by revenue
in five of its core markets:

-- The U.K. (23% market share), Sweden (31% market share),
-- The Netherlands (20% market share),
-- Switzerland (5% market share), and
-- Finland (19% market share)

It ranks No. 2 in Norway, Germany, and Denmark, which it also
considers to be core markets. IVC only entered the French,
Belgian, and Irish markets in the first half of 2019. It aims to
further expand in these.

Revenues are geographically concentrated. About 60% of sales, and
72% of the group's EBITDA, are generated in the U.K. Sweden
contributes for 15% of sales and 11% of total EBITDA. The group
aims to use these markets to anchor acquisitions in other
countries across Europe. If it is successful in executing its
business plan, we expect its exposure to the U.K. to fall to
about 47% of group revenues and about 51% of group EBITDA. S&P
would still view this as relatively high concentration.

Operating efficiencies are mainly based on common procurement,
but margins are lower than those of international peers. By
November 2018, IVC had grown to about 1,000 clinics. To help it
retain existing customers, IVC typically retains the brand name
and vets in its newly acquired clinics, but centralizes
procurement of drugs and materials (about 81%-83% of total gross
purchases), from its key suppliers. Implementing common
procurement is the group's key operating efficiency.

Historically, the group has been able to secure discounts on
purchases of about 14% through wholesale suppliers and a further
40%-42% in manufacturer rebates (as a percentage of purchases
from wholesalers).

The company has an asset-light business model. Its maintenance
capital expenditure (capex) of about 3% chiefly relates to
standardizing the new and existing clinics, and centralizing IT
systems once acquired. Rental costs account for about 4% of
revenues.

The cost structure is flexible -- about 48% of the costs are
linked to staff. The salaries and commissions paid to vets and
veterinary nurses vary from country to country, but are typically
about 45%-55%. Profitability levels are further supported by
IVC's pan-European presence, which supports supplier
benchmarking, negotiating power, contractual standards, and
direct procurement. S&P expects it to achieve back-office
synergies via the centralization of processes. Centralized
procurement across the group allowed IVC to benefit from joint
volume discounts and streamlining of stock-keeping units; this
can enhance profitability.

S&P expects S&P Global Ratings-adjusted EBITDA margins, pro forma
the refinancing, to be in the 15%-19% range in 2020-2021. This is
lower than its U.S. peers, which report margins of 20%-22%. IVC
also depends, to some extent, on external short-term vets,
particularly in U.K., whereas the U.S. normally does not have any
external vets. Additionally, U.S. peers seem to have higher
pricing power.

IVC's business model is focused on recurring visits, which create
a recurring revenue stream that should remain resilient in an
economic downturn. Of total sales, 80% are head-to-tail check-ups
on small domestic pets. The group also offers specialist
interventions, which make up the remaining 20% of total sales.
These include cardiology, dentistry, dermatology, diagnostic
imaging, oncology, etc. IVC also operates its own crematoria
facilities and has a wholly-owned online practice, PDOL, which
procures and sells prescription-only drugs and non-food
medication, food, and accessories to customers. These services
enable the company to offer a full range of veterinary services
for pets.

About 85% of the group's revenues are recurring (defined as
customers who have visited the same clinic at least once during
the preceding year). This is broadly in line with rated peers in
the U.S. It includes PHC members, who pay a monthly
membership/insurance plan fee via direct debit. PHC members
accounted for about 8% of the group's revenue in the U.K. in the
12 months to June 2018.

Although S&P views IVC's exposure to private payers as positive,
it could expose the company to pricing pressure from competitors.
These consumers are funding all treatment costs from their own
pocket, increasing the company's exposure to any macro-level
shocks (such as a delay in spending on dental treatment). That
said, spending on pet companions has been relatively recession-
resistant. In Europe, as in the U.S., services are mostly paid
for in cash -- there is no dependence on government revenues and
low reimbursement risk. This characteristic makes the industry
highly attractive.

Leverage is likely to remain high as the company continues to
finance its expansion using debt. IVC has primarily grown via
acquisitions over the past few years, a trend we expect to
continue. The group's business plan includes acquiring about 280-
360 new clinics per year through to 2022.

S&P said, "We estimate that adjusted leverage at the start of
2019 was 9x. Although this is expected to fall to about 8.5x in
2020 and to 8.0x-8.5x in 2021, we view it as high. That said, we
understand that the company could stop making acquisitions during
this period. It has a degree of control over its cash flow
generation that increases its resilience, even under considerable
stress.

"Our adjusted debt at the closing of the transaction includes
about GBP1,020 million of bank debt and GBP118 million in PIK
notes we consider as debt. We also adjust our debt to incorporate
about GBP300 million for operating leases. We do not net the
group's cash balances in our forecasts, given that the company is
owned by a financial sponsor. Working capital is structurally
negative because most of the revenues are from payors who pay out
of pocket. Thus, cash is collected immediately at the time of
service, which leads to minimal accounts receivables. Trade
payables have payment terms of 30-60 days with the main dental
suppliers, which also leads to a favorable cash conversion cycle.

"We forecast total capex of GBP30 million-GBP50 million over the
next three years, mainly composed of maintenance capex,
investment capex, and head-office capex used to integrate and
centralize general IT functions at the new clinics. We expect
reported pro forma FOCF generation of GBP48 million-GBP52 million
over the next three years.

"We understand that IVC has a leverage target set at 7.5x and
intend to reduce leverage below 7.0x by 2020 on a pro forma
basis. Despite its growth strategy, the company can also choose
to stop making acquisitions if needed. Although we view such an
approach as very focused and prudent, we believe that the sheer
volume of bolt-on acquisitions per year does expose the overall
group to some integration risks, particularly from an operational
point of view (that is, IT and finance)."

The main risk for IVC is that it will find it increasingly
expensive to pursue its debt-funded acquisition strategy and will
have to pay higher multiples. Historically, as M&A multiples have
increased, particularly in U.K., the group has shifted to EU-
based acquisitions.

Given the acquisitive strategy of the company, the stable outlook
assumes that the company will pursue a disciplined M&A strategy
and continue to seamlessly integrate new assets. S&P also assumes
it will maintain adjusted margins conformably in the 15%-19%
range in the next 12 months, adjusted leverage of 8x-9x, and
positive FOCF of at least GBP10 million.

S&P said, "We could lower the ratings if the company finds it
increasingly expensive to pursue its debt-funded acquisition
strategy and that leverage therefore increases for a prolonged
period. This could happen, for example, if operating issues led
to weaker profitability, if the integration process brings
additional costs, or if acquisitions resulted in higher
consolidated leverage. We could also lower the ratings if fixed-
charge coverage materially weakened compared with our base case
on a sustainable basis or if IVC's liquidity profile
deteriorated.

"Although we consider a positive rating action unlikely at this
stage, we could upgrade the company if IVC successfully
integrates the acquired entities, ensuring sound profitability
and annual FOCF that materially exceed our base-case forecasts.
Such strong operational performance would need to be combined
with significant debt reduction, so that leverage fell below 5x
on a permanent basis and the private equity owner committed to
maintaining it at this level."



                            *********

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 2019.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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members of the same firm for the term of the initial subscription
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                 * * * End of Transmission * * *