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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

         Wednesday, February 13, 2019, Vol. 20, No. 031


                            Headlines


A Z E R B A I J A N

STATE OIL: Fitch Affirms BB+ Long-Term IDR, Outlook Stable


F I N L A N D

MASCOT MIDCO 1: Moody's Assigns B1 CFR, Outlook Stable


G E R M A N Y

MONSOON ACCESSORIZE: Files for Insolvency in Germany


G R E E C E

GREECE: Fitch Affirms BB- LT Foreign Currency IDR, Outlook Stable


I R E L A N D

CKSK LIMITED: In Provisional Liquidation; 22 Jobs Axed


I T A L Y

AUTO-SPA: Files for Bankruptcy, Parent Company Says
AXELERO SPA: Has Until Feb. 27 to File Composition with Creditors
DECO 2014: DBRS Confirms BB (high) Rating on Class E Notes


R O M A N I A

UCM RESITA: Ceetrus Romania Buys Mociur Industrial Platform


R U S S I A

KAMCHATCOMAGROPROMBANK JSC: Put on Provisional Administration
NEW FORWARDING: Fitch Rates RUB5BB Notes BB+(EXP)
TRANSMASHHOLDING JSC: Fitch Raises LT IDRs to BB, Outlook Stable


S P A I N

INTERNATIONAL PARK: Moody's Affirms B2 CFR, Alters Outlook to Neg


S W I T Z E R L A N D

AIROPACK: Recapitalization Plan Collapses Over Accounting Issues


U N I T E D   K I N G D O M

BENNETTS: Enters Administration Following Financial Struggles
DEBENHAMS PLC: Secures GBP40MM Cash Injection Amid Debt Talks
NIGHTINGALE FINANCE: S&P Withdraws D Rating on US$5BB Notes
NORTH HERTFORDSHIRE: College Reveals GBP5MM Deficit in 2017/18


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A Z E R B A I J A N
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STATE OIL: Fitch Affirms BB+ Long-Term IDR, Outlook Stable
----------------------------------------------------------
Fitch Ratings has affirmed State Oil Company of the Azerbaijan
Republic's Long-Term Issuer Default Rating at 'BB+', Short-Term
IDR at 'B' and senior unsecured rating at 'BB+'. The Outlook is
Stable. SOCAR's rating is aligned with Azerbaijan's rating
(BB+/Stable).

SOCAR is Azerbaijan's national oil company and is fully owned by
the state. SOCAR's standalone credit profile corresponds to 'B+',
with high leverage the main rating constraint. The company's IDR
is aligned with that of Azerbaijan in view of strong ties between
the two as assessed in line with Fitch's Government-Related
Entities Rating Criteria. The alignment is underpinned by state
support provided to the company in the form of financial
guarantees and equity injections, as well as SOCAR's social
functions and its importance as a state vehicle for the
development of oil and gas projects.

KEY RATING DRIVERS

Close Links with the State: SOCAR's rating is aligned with that
of the state given their close ties. Most oil and gas projects in
Azerbaijan operate as concessions, where SOCAR has a minority
stake and where it also represents the state and collects the
state's share of profit oil to be transferred to the national oil
fund (SOFAZ). In addition, SOCAR has stakes in some other major
energy projects promoted by the state, such as the Southern Gas
Corridor (SGC). Furthermore, the state guarantees 6% of the
company's debt and provides equity injections to cover cash
deficits.

SOCAR's taxes accounted for almost 9% of government revenue in
2017, while income from profit oil transferred by SOCAR to SOFAZ
accounted for more than 65% of government revenue.

Social Functions: The rating alignment is also supported by
SOCAR's social role. One of its key functions is production and
sale of fuel at regulated prices, which are enough to cover the
company's operating cash costs but are lower than international
prices. Also, SOCAR employs more than 50,000 people in
Azerbaijan. The company does not pay dividends but it may be
required by the state to make cash contributions to the state
budget, government agencies or to directly fund some social
projects.

'B+' Standalone Credit Profile: SOCAR's high leverage constrains
its standalone credit profile at 'B+' although its business
profile is stronger and corresponds to the 'BB' rating category.
In 2017, SOCAR's net production amounted to 247 thousand barrels
of oil equivalents per day, including 60% of liquids; and its
reserve life was manageable at nine years. SOCAR's unit
profitability calculated as funds from operations (FFO) to
upstream production was relatively robust at USD19/boe, in
between that typical for integrated oil majors (e.g. Royal Dutch
Shell plc, AA-/Stable - USD30/boe) and for Russian oil producers
(e.g. Rosneft Oil Company - USD9/boe).

High Leverage: SOCAR's leverage will remain high by industry
standards. In 2017, the company's FFO adjusted net leverage
stayed at 5.0x, and Fitch projects it will remain at
approximately the same level over the rating horizon. This level
of leverage is more typical for companies rated at 'B' rating
category or below.

To a large extent SOCAR's high leverage is the function of its
close links with the state, which exercises significant control
over the company's profitability and balance sheet through
regulation of domestic fuel prices, cash injections, government
distributions and other measures. However, Fitch believes that
the government has incentive to keep SOCAR adequately funded.

Southern Gas Corridor Project: Fitch has limited visibility on
possible cash outflows related to SOCAR's participation in large
scale projects supported by the state, such as the SGC. This
limited visibility is one of the factors constraining the rating
in the 'B' rating category. SOCAR's investments in the project
are structured through its joint venture with the Ministry of
Economy and are not consolidated.

The USD40 billion SGC project, which is being developed in
coordination with BP plc and other partners, includes the full-
field development of the Shah Deniz gas field, the expansion of
the South Caucasus Pipeline, and the construction of Trans-
Anatolian and Trans Adriatic gas pipelines (TANAP and TAP)
connecting Azerbaijan with Turkey, Italy and some other
countries. The project has largely been completed as TANAP became
operational in 2018 and TAP should come on stream by end-2020.

STAR Refinery Starting Up: Construction of the STAR refinery in
Turkey, SOCAR's largest investment abroad, was completed in
October 2018, and it should ramp up to full capacity by the
middle of 2019. The project has been mainly funded by the USD3.3
billion project finance debt raised in 2015, split into two
tranches with maturities of 18 and 15 years and with a four-year
grace period. Fitch believes that the project, which is not
consolidated by SOCAR, will require no further major cash
outflows and that it will repay debt from operating cash flows.
Fitch does not assume the project to pay any dividends over the
rating horizon.

Volatility from Trading Business: SOCAR's trading operations add
volatility to the company's performance and are moderately
negative for its standalone credit profile. In 2017 SOCAR
significantly expanded its trading operations, including third-
party volumes, but scaled them down in 2018. Trading business is
capital-intensive and is subject to large working capital
fluctuations. In the long term, its profitability depends on the
effectiveness of risk management techniques; SOCAR's track record
in the business, especially with regards to third-party volumes,
is not yet sufficient to assess these.

DERIVATION SUMMARY

Fitch aligns SOCAR's rating with that of Azerbaijan under Fitch's
Government-Related Entities (GRE) Rating Criteria to reflect
strong ties between the two (strengths of the support score: 30).
This approach is underpinned by SOCAR's participation in all of
the largest oil and gas projects in the country and state support
in the form of equity injections and guarantees. SOCAR's
standalone profile is weaker and corresponds to 'B+', with high
leverage the main constraint. High leverage is typical for some
other national oil companies Fitch rates in other countries,
including Petroleos Mexicanos (BBB-/Negative) in Mexico and JSC
National Company KazMunayGas (BBB-/Stable) in Kazakhstan.

KEY ASSUMPTIONS

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

  - Brent crude price of USD71/bbl in 2018, USD65/bbl in 2019 and
USD62.5/bbl in 2020 and USD60/bbl in 2021

  - USD/AZN exchange rate: 1.7 over 2018 - 2021

  - Neutral aggregate change in working capital over 2018 - 2021

  - Aggregate capex of AZN13 billion over 2018 - 2021

  - Contributions in associates and joint-ventures of AZN1.2
billion over 2018-2021

  - Net contribution from the government of AZN1.5 billion over
2018-2021


RATING SENSITIVITIES

SOCAR

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

  - Positive rating action on the sovereign coupled with an
improvement in SOCAR's standalone credit profile. The improved
standalone profile would be manifested by FFO net adjusted
leverage consistently below 3.5x and more visibility on the
company's spending plans.

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

  - Negative rating action on Azerbaijan

  - Weakening state support

  - Sustained deterioration in SOCAR's credit metrics, FFO net
adjusted leverage exceeding 6.0x over an extended period of time.


Azerbaijan

The main factors that could, individually or collectively,
trigger positive rating action are:

  - Improvement in the macroeconomic policy framework,
strengthening the country's ability to address external shocks
and reducing macro volatility.

  - A significant improvement in public and external balance
sheet.

  - An improvement in governance and the business environment
leading to progress in economic diversification underpinning
growth prospects.

The main factors that could, individually or collectively,
trigger negative rating action are:

  - An oil price or other external shock that would have a
significant adverse effect on the economy, the public finances or
the external position.

  - Developments in the economic policy framework that undermine
macroeconomic stability.

  - Weakening growth performance and prospects.

LIQUIDITY

Manageable Liquidity: As of 30 June 2018, SOCAR's liquidity
amounted to AZN8.7 billion against AZN6.0 billion of short-term
debt and current portion of long-term borrowing. Liquidity
included Fitch-defined cash and cash equivalents of AZN6.4
billion as well as AZN2.3 billion of undrawn committed lines of
credit, of which 25% was in hard currencies. The bulk of short-
term debt was mainly in US dollars and related to SOCAR's trading
arm. Liquidity could come under some pressure in view of the
forecast FCF over 2018-2019. However, Fitch expects the state to
cover any liquidity gaps through equity injections.

No Subordination Issue: A significant part of SOCAR's
consolidated debt (40%) is at the level of two operating
subsidiaries, SOCAR Trading and Petkim Petrokimya Holdings A.S.
(B/Stable) in Turkey. However, in 2017 these subsidiaries
accounted for a relatively minor part of the group's EBITDA (less
than 25%). Consequently Fitch does not view the parent company's
creditors as structurally subordinated to those of subsidiaries.


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F I N L A N D
=============


MASCOT MIDCO 1: Moody's Assigns B1 CFR, Outlook Stable
------------------------------------------------------
Moody's Investors Service assigned a B1 corporate family rating
and a B1-PD probability of default rating to Mascot MidCo 1 Oy, a
holding company of sporting goods manufacturer Amer Sports. This
is the first time Moody's assigns a rating to Amer. Concurrently,
Moody's has assigned B1 ratings to the proposed EUR1,700 million
senior secured Term Loan B due in 2026 and the EUR315 million
worth of senior secured revolving credit facility due in 2025 to
be borrowed by Mascot BidCo Oy, i.e. the top entity of the
restricted group. The outlook is stable.

"Amer is looking to issue the proposed bank credit facilities to
finance its acquisition by a consortium of investors, led by
Chinese sportswear company ANTA Sports Products Limited (ANTA
Sports), and to repay existing indebtedness", says Giuliana
Cirrincione, Moody's lead analyst for Amer.

RATINGS RATIONALE

Amer's B1 CFR reflects (1) its leading market positions supported
by a large and diversified portfolio of globally recognized brand
names, and its good scale; (2) broad diversification across
sports segments and geographies; (3) favorable demand dynamics in
the outdoor and sports market, with significant growth potential
from the expansion into the direct-to-consumer (DTC) channel of
the Chinese outdoor apparel market; and (4) its good liquidity,
supported by a track record of good cash flow generation.

However, the B1 CFR is constrained by the company's (1) very high
leverage at closing, with an estimated Moody's-adjusted debt to
EBITDA ratio of around 6.0x at the end of 2018 (pro-forma for the
proposed capital structure); (2) exposure to discretionary
consumer spending, as well as a degree of business seasonality
causing high intra-year working capital swings; and (3) the
pressure that the expansion in the Chinese outdoor apparel
market -- as well as the continued R&D effort needed to maintain
or grow its position in a competitive industry -- will exert on
free cash flow generation over the medium-term.

Moody's views the company's strategy to pursue business
expansion, especially in China via the DTC channel, as credit
positive because -- if successfully implemented -- it would
further improve diversification while providing the company with
significant longer term growth opportunities within the large
Chinese outdoor apparel market. Moody's also acknowledges that
the presence of reference shareholder ANTA Sports as key
strategic partner with a network of more than 11,000 stores in
China will to some extent reduce the execution risks of Amer's
store rollout in the country and will likely bring synergies,
further boosting EBITDA growth.

However, Moody's considers Amer's growth targets as ambitious,
and expects total sales to grow by low single-digit rates
annually in 2019-2023, reflecting the rating agency's view that
the upside growth potential offered by China is heavily
counterbalanced by the risk of tough competition from both
domestic players and much larger international companies which
are engaging as well into the DTC apparel segment in the country.
Furthermore, according to Moody's forecasts, the significant
capex program included in the business plan (ca. EUR100 million
annually in 2019-2023), albeit manageable, will absorb almost
entirely Amer's free cash flow, leaving very limited room for
debt reduction and operational underperformance going forward.
Moody's free cash flow forecast also includes the annual non-
mandatory dividend payments that, permitted under the loan
documentation, will be upstreamed to serve the interest costs on
the shareholder loan sitting outside of the restricted group.

While expecting adjusted (gross) debt to EBITDA to remain high
above 5.0x by 2020, Moody's considers Amer's liquidity as good,
underpinned by (1) ample cash on the balance sheet (EUR226
million pro-forma at closing); (2) a fully available EUR315
million RCF, expected to remain largely undrawn; and expectations
of sustained good operating cash flow. These liquidity sources
will more than adequately cover the company's capex requirements
as well as the high intra-year working capital swings over the
next 12-18 months.

Despite remaining outside of the restricted group, Mascot MidCo 1
Oy will be the entity reporting audited consolidated accounts
going forward, which Moody's will use as the basis of its credit
considerations. As such, the rating agency expects there will be
a reconciliation of the financial and operating position of the
two entities Mascot MidCo 1 Oy and Mascot BidCo Oy over the
lifetime of the credit facilities and minimal, if any,
differences in financial statements between the two entities.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectations that the company
will continue to grow earnings going forward backed by adequate
operating performance across all business divisions, while
successfully executing its expansion strategy in China.

Quantitatively, the rating agency expects the Moody's-adjusted
(gross) debt to EBITDA will progressively decline towards 5.5x
this year, and that profitability - measured as Moody's-adjusted
EBIT margins - will moderately improve from current levels.

WHAT COULD CHANGE THE RATING UP/DOWN

The ratings could be upgraded if:

  - Trading conditions remain favorable across all regions,
supporting a reduction in the Moody's-adjusted (gross) debt to
EBITDA towards 4.5x

  - The company executes successfully on its retail expansion
plan and grows earnings above and beyond Moody's current
expectations with a successful roll out in the Chinese outdoor
apparel market, driving Moody's-adjusted EBIT margins to the low
teens in percentage terms

  - The Moody's-adjusted retained cash flow (RCF) to net debt
improves towards the high teens in percentage terms

The ratings could be downgraded if:

  - Evidence of challenges in the execution of Amer's proposed
strategy, such that performance stalls or declines, or in case of
aggressive corporate activity which would prevent the Moody's-
adjusted (gross) debt to EBITDA to reduce towards 5.5x this year,

  - Deterioration in the liquidity profile as a result, for
instance, of negative free cash flow for a prolonged period of
time

STRUCTURAL CONSIDERATIONS

The B1 rating assigned to the proposed EUR1.7 billion senior
secured term loan B and EUR315 million revolving credit facility
(RCF) is in line with the group's CFR. This reflects the pari
passu ranking of the facilities which represent the vast majority
of the group's debt, as well as the assumption of a 50% standard
recovery rate, in line with Moody's customary approach in absence
of maintenance covenants in the term loan and RCF.

The term loan and the RCF will benefit from upstream guarantees
from the group's restricted subsidiaries representing at least
80% of consolidated EBITDA, and will be secured against intra-
group receivables, bank accounts and shares.

Domiciled in Helsinki, Finland, Amer Sports is a global sporting
goods company with sales in 34 countries across EMEA, the
Americas and APAC. Focused on outdoor sports, its product
offering includes footwear, apparel, winter sports equipment,
fitness equipment and other sports accessories. Amer's brand
portfolio includes Salomon, Arc'teryx, Peak Performance, Atomic,
Suunto, Wilson and Precor, and encompasses a broad range of
sports including alpine skiing, hiking, running, diving, tennis,
golf and American football.

In 2018 Amer Sports generated EUR2.7 billion (2017: EUR2.6
billion) of revenue and EUR304 million (2017: EUR280 million) of
EBITDA, as adjusted by the company for non-recurring items
affecting comparability.

The principal methodology used in these ratings was Consumer
Durables Industry published in April 2017.


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G E R M A N Y
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MONSOON ACCESSORIZE: Files for Insolvency in Germany
----------------------------------------------------
Elias Jahshan at Retail Gazette reports that the German arm of
British retail chain Monsoon Accessorize has filed for insolvency
in a local court in Bavaria.

The news places the future of Monsoon Accessorize's 190 staff
members working across 30 stores in Germany at risk, notes Retail
Gazette.

According to the report, restructuring expert Ivo-Meinert
Willrodt from law firm Pluta Rechtsanwalts GmbH, has been
appointed as provisional administrator of the fashion and
accessories retailer in the country.

"We are currently in the process of obtaining an initial overview
of the financial situation," the report quotes Mr. Willrodt as
saying.  "Business is being maintained without restriction at all
branch stores.

"The customers can continue shopping as usual in the local
stores."

The overarching Monsoon Group, which is based in the UK, is not
affected by the insolvency, the report notes.

Mr. Willrodt added that Accessorize's online business in Germany
is also not included in the proceedings, Retail Gazette relays.

Monsoon Accessorize first entered Germany in 2006 and news of its
insolvency there comes after a drop in revenues due to changing
consumer behaviour.  The retailer's performance at home in the UK
has also been far from perfect.

In November last year, credit insurer Euler Hermes reportedly
scaled back its cover by up to a half amid growing concerns about
its financial health, the report says.

Retail Gazette says parent company Drillgreat also reported pre-
tax losses of GBP10.5 million in the year to August 26, dropping
from GBP17.9 million in 2016, with sales remaining flat at GBP424
million.


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G R E E C E
===========


GREECE: Fitch Affirms BB- LT Foreign Currency IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Greece's Long-Term Foreign-Currency
Issuer Default Rating at 'BB-' with a Stable Outlook.

KEY RATING DRIVERS

Greece's 'BB-' rating is underpinned by high income per capita
levels, which far exceed 'BB' and 'BBB' medians. While Greece's
financial crisis exposed shortcomings in government effectiveness
and put acute pressures on political and social stability,
governance is still significantly stronger than in most sub-
investment-grade peers. The profile of the general government
debt stock is exceptionally favourable and fiscal performance
over the last three years has been stronger relative to rated
peers'. These strengths are set against high stocks of general
government debt and net external debt, weak medium-term growth
potential and extremely high level of non-performing loans in the
banking sector.

Fitch expects the Greek economic recovery to gather further
momentum in 2019. Pent-up investment demand, a declining
unemployment rate, rising disposable income and moderate fiscal
loosening are set to support domestic demand, which will offset
the negative contribution to GDP growth of net trade. Following
real GDP growth of 2% in 2018, Fitch expects growth to accelerate
to 2.3% in 2019 and 2.2% in 2020.

The short-term outlook for private consumption is favourable.
Households' disposable income rose 4% in 3Q18, the fastest pace
since 2008. Wage growth is gradually picking up while HICP
inflation remains moderate. The unemployment rate stood at 18.6%
in October 2018 (a seven-year low) and employment growth averaged
1.8% in January-October 2018. Consumer confidence was boosted by
the successful completion of the third adjustment programme in
August 2018.

The government has announced an increase in the minimum wage by
11% (to EUR650 per month) and the abolition of the "sub-minimum"
wage for employees' under-25 years old. The government has also
made changes to labour market legislation. It has re-activated
the sectoral wage bargaining system in specific sectors of the
economy, which has resulted in wage increases in some sectors,
such as tourism. Against a backdrop of rising wage growth,
declining unemployment and rising consumer confidence, these
measures are set to support further private consumption in the
short-term.

Although it is too early to assess the full impact, these
measures may have a negative impact on wage negotiations and
external competitiveness over time. Deterioration in cost
competitiveness could undermine the current account dynamics and
lead to a weakening of the net external debt position. Over the
medium-term, the behaviour of the social partners in negotiating
the new collective wage agreements will be a key factor to
monitor.

Public finances continue to improve. Fitch estimates Greece
posted a headline budget surplus of 0.6% of GDP in 2018, down
from 0.8% a year earlier, driven by higher-than-budgeted revenue
and expenditure restraint. This would imply a primary surplus of
3.7% of GDP, above the ESM programme target of 3.5% of GDP.
Fitch expects fiscal policy to remain sound and project primary
surpluses of 3.4% of GDP in 2019 and 3.3% in 2020. Risks to the
fiscal projections stem from recent court rulings against 2012
pension cuts and the pending Council of State ruling on the 2016
pension reform.

In Fitch's view the current fiscal policy mix may not be
sustainable beyond 2020. Fiscal consolidation relies heavily on
tax revenue and expenditure restraint, in particular under-
execution of capital spending. A policy challenge for future
Greek governments will be to rebalance the policy mix without
hampering the commitment to the fiscal targets. In this context,
the pre-legislated reduction in the income tax free threshold (to
come into force in January 2020) is set to broaden the tax base
and could provide fiscal space to reduce the tax burden over
time. Fitch expects this specific measure not to be reversed.
Fitch also notes that there is broad cross-party consensus around
the need to rebalance the fiscal policy mix.

The 2019 budget partially reverses some measures that were
legislated under Greece's bailout programme, notably 2019's
pension cuts and higher social security contributions for the
self-employed. It also cuts corporate and property taxes. The
budget confirms its view that some partial policy reversals are
possible as part of the dialogue with official creditors. Fitch
does not believe this represents a sharp change to the fiscal
stance. The budget targets a primary surplus of 3.5% of GDP in
2019 (broadly in line with its projections). Falling government
debt and previously agreed debt relief measures are improving the
sustainability of Greece's public finances, as reflected in its
two-notch upgrade of Greece to 'BB-' in August.

Although the stock of general government debt is high (181% of
GDP at end-2018), there are mitigating factors that support debt
dynamics. The concessional nature of Greece's public debt implies
that debt servicing costs are low; the average maturity of Greek
debt (18.5 years, incuding T-bills and repos) is among the
longest across all Fitch-rated sovereigns and is set to lengthen
further after the debt relief measures agreed at the June 21,
2018 Eurogroup are implemented. Gross financing needs are low and
Fitch estimates Greece's deposit buffer at EUR26 billion (14% of
GDP, excluding deposits of other general government entities).
The amortisation schedule is very favourable.

Fitch expects the Greek authorities to partly use the cash buffer
to "buy back" more expensive portions of the debt stock (e.g
IMF). This would lower debt servicing costs further. Interest
payments-to-revenue at 6.4% are well below the historical 'BB'
and 'BBB' medians of 9.4% and 7.1%, respectively. The effective
interest rate on Greece's public debt stock, at 1.6% as of end-
2018, is well below that of most eurozone peers.

Greece is making progress towards the resumption of regular bond
issuance. On January 30, 2019 the sovereign placed a new
benchmark EUR2.5 billion five-year bond with a coupon of 3.45%
and a yield of 3.60%. Funding costs have been volatile in 2018:
10-year bond yields reached their highest level of 5.2% in
November 2018 and fell below 4% in January 2019 for the first
time since August 2018. Its estimates indicate that Greece could
be fully funded until 2022, providing a significant backstop
against any financing risks for a prolonged period. This should
support market confidence and post-programme market access.

Efforts to speed up non-performing exposure (NPE) reduction by
Greek banks are taking shape. NPEs account for nearly half of
total exposures at four largest Greek banks: while the stock is
declining, the ratio to total exposures is more stable due to on-
going loan contraction. The economic recovery, increased NPE
sales, greater use of electronic auctions and, to a lesser
extent, out-of-court workouts should help banks meet new NPE
targets submitted to the Single Supervisory Mechanism for 2021
(between 17% and 22%). However, without more substantial
initiatives, it will prove challenging to accelerate NPE
reduction to a pace that fully underpins confidence in the
banking system, in its view.

Recent proposals by the Hellenic Financial Stability Fund (HFSF)
and the Bank of Greece suggest political support for such
policies.  These schemes could accelerate asset quality clean-up
and ease pressure on banks' capital and profitability,
potentially improving their standalone credit profiles. Fitch
believes a near-term policy initiative is likely but its overall
impact is highly uncertain. Unknowns include investor appetite
for Greek NPE-backed bonds, compliance with state aid rules, and
the timeframe of any transfers and to what extent banks will make
use of such schemes. If implemented, Fitch does not expect the
impact to be visible this year but more over the medium-term.

Without full details on the functioning of either scheme, the
impact on banks and the sovereign fiscal implications are
unclear, including any potential impact on Greece's deposit
buffer. High government debt restricts fiscal space for banking
sector support, but the buffer provides some headroom. Fitch
therefore does not factor any specific scheme into its bank or
sovereign analysis. Without more dynamic and predictable NPE
reduction, banking sector risks are material for Greece's credit
profile.

Funding dynamics is improving. On December 13, 2018, the ECB
lowered the Emergency Liquidity Assistance ceiling for Greek
banks to EUR4 billion from its peak of EUR90 billion in July
2015, reflecting positive developments in liquidity conditions.
Dependence on the eurosystem for liquidity continues to decline
while depositor confidence is steadily improving. Private-sector
deposits grew EUR8.1 billion (6.4%) in the 12 months to end-
December 2018, reflecting higher consumer and business confidence
following the exit from the ESM programme and a strong tourism
season.

Parliamentary elections are due by October 2019. In its view, the
domestic political backdrop has become somewhat more stable.
There is broad cross-party consensus that fiscal discipline
should be maintained and the working relationship between Greece
and European creditors has substantially improved. This lowers
the risk of a future government sharply reversing the course of
fiscal and economic policy. Nevertheless, future Greek
governments are required to maintain primary budget surpluses for
an exceptionally long period, which may pose political
challenges.

DERIVATION SUMMARY

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns Greece a score equivalent to a
rating of 'BB+' on the Long-Term Foreign Currency IDR scale.

Fitch's sovereign rating committee adjusted the output from the
SRM to arrive at the final Long-Term Foreign Currency IDR by
applying its QO, relative to peers, as follows:

  - External finances: -1 notch, to reflect Greece's high net
external debt which is not captured in the SRM.

  - Structural Features: -1 notch, to reflect: a) weakness in the
banking sector, including a very high level of NPLs, which
represent a contingent liability for the sovereign. Domestic
capital controls have been lifted but some restrictions remain on
cross-border outward capital flows. b) Political risks related to
post-programme implementation of policy measures agreed with the
European creditors.

Fitch's SRM is the agency's proprietary multiple regression
rating model that employs 18 variables based on three-year
centred averages, including one year of forecasts, to produce a
score equivalent to a Long-Term Foreign Currency IDR. Fitch's QO
is a forward-looking qualitative framework designed to allow for
adjustment to the SRM output to assign the final rating,
reflecting factors within its criteria that are not fully
quantifiable and/or not fully reflected in the SRM.

KEY ASSUMPTIONS

Our long-run general government debt sustainability calculations
are based on assumptions of an average primary budget surplus of
2% of GDP over 2018-2040, real GDP growth that averages 1.4% over
the same period and GDP deflator converging towards 2%. Under
these assumptions, public debt declines steadily to 124% of GDP
by 2030 and 111.4% of by 2040 from 181.1% of in 2018.

RATING SENSITIVITIES

Future developments that could, individually or collectively,
result in positive rating action include:

  - Track record of achieving further primary surpluses and
greater confidence that the economic recovery will be sustained
over time.

  - Track record of economic and fiscal policy continuity after
Greece's exit from the ESM programme, underpinned by an orderly
working relationship with official sector creditors and a stable
political environment.

  - Lower risk of crystallisation of banking sector risks on the
sovereign balance sheet.

Future developments that could, individually or collectively,
result in negative rating action include:

  - A loosening of fiscal policy and/or a sharp reversal in
economic and fiscal policy direction after the 2019 parliamentary
elections.

  - Adverse developments in the banking sector increasing risks
to the real economy and the public finances.

  - Re-emergence of sustained current account deficits, further
weakening the net external position.


=============
I R E L A N D
=============


CKSK LIMITED: In Provisional Liquidation; 22 Jobs Axed
------------------------------------------------------
Ann O'Loughlin at BreakingNews.ie reports that the High Court has
appointed a provisional liquidator to a Dublin based digital
marketing company resulting in the loss of 22 jobs.

CKSK Limited, whose clients have included VHI, Pepsico, Sony,
Irish Distillers Pernod Ricard, Heineken and Three Mobile, got
into difficulties due to contracts either being cancelled or not
coming to fruition, the report says.

Efforts were made last year to sell the company, but for reasons
including concerns over Brexit, it was not possible to obtain a
purchaser, the High Court heard, according to BreakingNews.ie.

Mr. Micheal Leydon of Outlook Accountants was appointed as the
firm's provisional liquidator by Ms. Justice Leonie Reynolds on
Jan. 24 after the judge was satisfied the company is insolvent
and unable to pay its debts.

CKSK petitioned the court for Mr. Leydon's appointment, the
report notes.

BreakingNews.ie relates that Stephen Brady Bl for the company,
which is located on Dublin's South William Street, said Mr.
Leydon's appointment was being sought because the firm is
"hopelessly insolvent."

According to the report, given the firm's financial situation,
counsel said the directors had come to the conclusion that was in
all parties' interests that the company be wound up and a
liquidator appointed.

Counsel said the company was established in 2006 and its
directors are Simon Keane of Charlesland Grove, Greystones, Co
Wicklow and Cillian Kieran with an address at Elizabeth Street in
New York, the report discloses.

While it made a profit in 2017, the company incurred an operating
loss for the year ending 2018 of EUR283,000 and a net loss of
EUR738,000 after a number of contracts did not materialise,
cancelled, or were reduced.  It is estimated that the company
currently has a deficit of liabilities over assets of EUR852,000,
BreakingNews.ie discloses.


=========
I T A L Y
=========


AUTO-SPA: Files for Bankruptcy, Parent Company Says
---------------------------------------------------
Reuters reports that Fince Holding SA on Feb. 11 said its unit
Auto-Spa filed for bankruptcy.

Auto-Spa is based in Italy.


AXELERO SPA: Has Until Feb. 27 to File Composition with Creditors
-----------------------------------------------------------------
Reuters reports that Axelero SpA on Feb. 8 said the court of
Milan had granted it time until Feb. 27 to file final proposal of
composition with creditors.

Axelero SpA is an Italy-based company engaged in the digital
advertising.


DECO 2014: DBRS Confirms BB (high) Rating on Class E Notes
----------------------------------------------------------
DBRS Ratings GmbH confirmed its ratings on the classes of
Commercial Mortgage-Backed Floating-Rate Notes Due February 2026
(the Notes) issued by Deco 2014 - Gondola S.R.L., as follows:

-- EUR 16.9 million Class C notes at AAA (sf)
-- EUR 52.0 million Class D notes at BBB (high) (sf)
-- EUR 21.9 million Class E notes at BB (high) (sf)

DBRS changed the trends on the Class C and Class D notes to
Negative and maintained the Negative trend on the Class E notes.

The confirmations reflect the transaction's overall strong credit
quality since issuance. Legal risks however surrounding the
Delphine loan warrant the Negative trends on all the classes as
the Notes are unlikely to be paid down at their expected maturity
date in February 2019, thus pushing the Notes into their tail
period (time period between expected maturity and legal maturity
of the Notes).

Deco 2014 - Gondola S.R.L. is a securitization of three senior
commercial real estate loans originated in Italy. Following the
prepayment of the Gateway loan in 2016 and the Mazer loan in
2017, the Delphine loan is the only remaining loan in the pool.
As of the November 2018 Interest Payment Date (IPD) the total
outstanding note balance has decreased to EUR 90.8 million from
EUR 354.9 million at issuance. As such, both the Class A and B
notes have been fully repaid and the principal balance of the
most senior remaining note, Class C, has reduced to EUR 16.9
million.

As per the November 2018 IPD, the current gross rental income
(GRI) was reported at EUR 10.4 million, a significant decrease
compared to the November 2017 IPD figure of EUR 16.9 million. The
decrease is largely due to the former sole tenant, Telecom
Italia, vacating the Parco de Medici property in July 2018.
However, the tenant Loro Piana is currently in a free rent period
which ends in February 2019 when GRI will increase to
approximately EUR 11.6 million.

Both remaining Delphine properties were recently valued in
November 2018 and due to the loss of the single tenant Telecom
Italia, the value of the Parco de Medici property declined from
EUR 49.1 million to EUR 31.5 million. Although the value has
significantly decreased, it would still cover the initial
allocated loan amount of EUR 30.3 million. As of November 2018,
the RCS asset has increased in value to EUR 192.3 million from
EUR 173.2 million, which offsets the value decline of the Parco
de Medici asset, as the portfolio has increased in aggregate
value by EUR 1.5 million since the previous valuation, resulting
in a loan-to-value ratio of 40.6%.

The Negative trends on the Notes are due to DBRS's opinion that
the Notes are unlikely to repay on their upcoming expected
maturity date in February 2019. The Delphine loan has not been
repaid yet as a property sale fell through between the sponsor,
Blackstone, and the potential buyer Allianz, after the former
owner of the RCS asset, the RCS group, filed a claim against the
sponsor that their purchase of the property in 2013 was below
fair value and RCS were unfairly taken advantage of due to their
financial difficulties back in 2013. In November 2018, Blackstone
launched a subsequent claim through a New York court against the
RCS group as their claim against the RCS property caused the
agreed sale to Allianz to fall through. At the time of the
purchase, the property was sold through a tender process in which
Blackstone was the highest bidder. Therefore, DBRS assumes in its
rating analysis that the RCS claim will be ruled in favor of
Blackstone.

On February 14, 2019, the noteholders will vote to agree on the
extension of the Delphine loan maturity date to the earlier of a)
15 February 2021; or b) the first IPD falling six months after
the date on which the latter of: i.) the Arbitration Demand; or
ii.) the New York Claim is finally determined in the relevant
forum and no longer subject to any right of appeal or
reconsideration. Regardless of the noteholders' decision, DBRS
believes a Class X trigger event will occur, which will put the
remaining rated notes interest payments senior to the Class X
interest payments. However, DBRS understands that, given that
CMBS note principal will not be due unless the borrower repays
loan principal, Class X is still expected to receive any excess
interest remaining, as long as the loan interest is paid in full
(but in a subordinated position in the waterfall). The investor
notice does not detail whether the borrower would enter in new
hedging arrangements following the potential loan extension, nor
does it mention to what extent the borrower would partially repay
the loan during the extension period. If the noteholders do not
agree to extend the loan's maturity date, the loan would likely
transfer into special servicing amid non-payment at maturity.

Notes: All figures are in Euros unless otherwise noted.


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


UCM RESITA: Ceetrus Romania Buys Mociur Industrial Platform
-----------------------------------------------------------
Romania-Insider reports that Ceetrus Romania, the real estate
division of French group Auchan, won the tender for the Mociur
industrial platform, which was put up for sale by local
industrial company UCM Resita, currently under insolvency.

Romania-Insider says the auction took place on January 28 and
Ceetrus was the only bidder to buy the tender book, UCM Resita
announced in a report on the Bucharest Stock Exchange. The
starting price for the asset was EUR2.84 million.

The Mociur platform, the former foundry platform, has an area of
22.7 hectares and is not used by UCM Resita for its core
activity, Romania-Insider states. According to Economica.net, the
transfer of the asset to Ceetrus will take place on March 1,
Romania-Insider relays.

UCM Resita is a Romanian engine manufacturer.


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


KAMCHATCOMAGROPROMBANK JSC: Put on Provisional Administration
-------------------------------------------------------------
The Bank of Russia, by virtue of its Order No. OD-207, dated
January 30, 2019, revoked the banking license of credit
institution Joint-stock Company KAMCHATSKY COMMERCIAL
AGROPROMBANK, or Kamchatcomagroprombank (Reg. No. 545, based in
Petropavlovsk-Kamchatsky), further also referred to as the credit
institution.  According to its financial statements, as of
January 1, 2019 the credit institution ranked 297th by assets in
the Russian banking system.

PJSC Kamchatcomagroprombank provided loan services to legal
entities and individuals including those related to the bank.
Dubious and non-performing outstanding loans make up over 70% of
its loan portfolio.  The credit institution consistently
underestimated credit risk assumed, resulting in the Bank of
Russia having repeatedly requested that PJSC
Kamchatcomagroprombank create additional loss provisions.  The
due diligence check of credit risk at the regulator's request
established a substantial decrease in capital and entailed the
need for action to prevent the credit institution's insolvency
(bankruptcy), which created a real threat to its creditors' and
depositors' interests.

The Bank of Russia repeatedly (four times over the last 12
months) applied measures against PJSC Kamchatcomagroprombank.

The credit institution's operations showed signs of misconduct by
its executives who sought to withdraw liquid assets to the
detriment of creditors' and depositors' interests.  The Bank of
Russia will submit information about the bank's transactions
suggesting a criminal offence to law enforcement agencies.

Under these circumstances, the Bank of Russia took the decision
to revoke PJSC Kamchatcomagroprombank's banking license.

The Bank of Russia takes this extreme measure -- revocation of
the banking license -- because of the credit institution's
failure to comply with federal banking laws and Bank of Russia
regulations, due to repeated application within a year of
measures envisaged by the Federal Law "On the Central Bank of the
Russian Federation (Bank of Russia)", considering a real threat
to the creditors' and depositors' interests.

Following the banking license revocation, PJSC
Kamchatcomagroprombank's professional securities market
participant licence was also cancelled.

The Bank of Russia, by virtue of its Order No. OD-208, dated
January 30, 2019, appointed a provisional administration to PJSC
Kamchatcomagroprombank for the period until the appointment of a
receiver pursuant to the Federal Law "On Insolvency (Bankruptcy)"
or a liquidator under Article 23.1 of the Federal Law "On Banks
and Banking Activities".  In accordance with federal laws, the
powers of the credit institution's executive bodies were
suspended.

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

PJSC Kamchatcomagroprombank is a member of the deposit insurance
system.  The revocation of a banking license is an insured event
as stipulated by Federal Law "On the Insurance of Deposits with
Russian Banks" in respect of the bank's deposit obligations.
This Federal Law stipulates the procedure and amount of insurance
indemnities to the bank's depositors.


NEW FORWARDING: Fitch Rates RUB5BB Notes BB+(EXP)
-------------------------------------------------
Fitch Ratings has assigned Joint stock company New Forwarding
Company's (NFC, 100% owned subsidiary of Globaltrans Investment
Plc (GLTR, BB+/Positive)) proposed domestic RUB5 billion notes
under a RUB100 billion domestic bond programme an expected local
currency senior unsecured rating of 'BB+(EXP)'.

Fitch has rated the notes to be issued by NFC at the same level
as GLTR's Long-Term Local-Currency IDR of 'BB+' due to the
benefit of the public irrevocable offer to be issued by GLTR. The
final rating is contingent on the receipt of final documents
conforming materially to information already received.

GLTR rating reflects the company's robust financial profile with
funds from operations (FFO) adjusted net leverage at below 1.5x,
despite high capex and shareholder distributions as well as an
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, despite the
sector's highly cyclical nature.

KEY RATING DRIVERS

Public Irrevocable Offer: Bondholders will benefit from GLTR's
public irrevocable offer under which the parent undertakes to
offer to purchase the bonds if NFC is in default, making this
instrument effectively recourse to GLTR. Fitch understands from
management that GLTR's obligation under the irrevocable offer
will rank pari passu with the group's unsecured obligations.

Robust Financial Profile: Fitch expects GLTR to maintain a robust
financial profile with 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% of GLTR's net income on average over 2018-
2022, which is above the company's dividend policy and could
result in FCF (after dividends) 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 NFC (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 a 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 were weak in 2018, mainly due 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, with lower
maintenance and fleet renewal costs than sector peers. Including
leased-in fleet, GLTR has about 66,000 railcars.

DERIVATION SUMMARY

GLTR's close competitor is Russian rolling stock operator JSC
Freight One (BB+/Positive). 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 draw down 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.


TRANSMASHHOLDING JSC: Fitch Raises LT IDRs to BB, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has upgraded JSC Transmashholding's Long-Term
Foreign- and Local-Currency Issuer Default Ratings to 'BB'
from'BB-'. The Outlook on the IDRs is Stable.

The upgrade of TMH, Russia's leading rolling stock manufacturer,
reflects ongoing improvement of leverage and debt service
metrics, accompanied by a ramp-up in business activity supported
by strong demand for new trains. Fitch expects further moderate
leverage metrics in the medium-term and a sustainable funds from
operations (FFO) margin of over 8%.

Despite slightly negative free cash flow (FCF) estimated for 2018
Fitch forecasts FCF to remain broadly positive in the medium-term
as a result of stabilisation of working capital cash flows,
moderate capex and expected stable operating performance.

KEY RATING DRIVERS

Growing Demand: The very high average age of the domestic railway
fleet drives demand in the industry and supports TMH's order book
in the long-term. Active development of Moscow's transport
infrastructure, including underground, over the last several
years also supports growth of TMH's order book. TMH has
benefitted from the devaluation of the Russian rouble, which
keeps production costs low in comparison with foreign
competitors' and supports its margins andlocal market position.
Nevertheless, TMH's order book and revenue dynamic rely on
investment programmes of a few large players, which are mainly
state-owned, resulting in volatility in operations.

Deleveraging Underway: In 2017 TMH significantly improved its
leverage metrics, due to greater cash inflows and repayment of a
considerable part of debt. FFO-adjusted gross leverage was 2.5x
at end-2017 and is expected to be close to 1.5x by 2020,
supported by ongoing revenue and EBITDA growth.

FCF Volatility Smoothed: Significant deleveraging by TMH in 2017
and working capital inflows support TMH's free cash flow (FCF).
However, despite normalisation of working capital swings and
lower interest rates under bank facilities in 2017-2018, Fitch
estimates FCF was slightly negative in 2018 due to capex peaking
at 8% of expected revenue and dividends of about RUB2.5 billion
that were paid out for the first time since 2014. In the medium-
term, Fitch expects the company's capex to be at more moderate
levels, which should contribute to consistently positive FCF even
after taking into account of expected dividend payouts.

Strong Market Position: TMH specialises in production of rolling
stock and is the leading manufacturer in Russia and CIS with a
market share of 68% for locomotives, 74% for passenger rail cars
and 93% for metro cars. Strong position, successful long-term
cooperation with key customers and high capital expenses in
manufacturing facilities act as significant barriers to entry in
TMH's core markets.

Limited Business Profile: TMH's business profile is limited by
customer concentration, low contribution of service revenue and
weaker corporate governance than its peers'. Geographic
diversification is constrained bythe company's focus on Russia
and the CIS. In response, TMH is actively developing its export
business. Positively TMH has a diversified product portfolio,
strong market position and long-term cooperation with main
customer, Russian Railways (BBB-/Positive).

Reducing Related-Party Transactions: TMH has  operating links
with Transholdleasing (THL) under the lifecycle contract (LCC)
with Moscow Metro. THL is not consolidated within TMH, resulting
in Fitch's weak corporate governance assessment. The share of THL
in TMH's revenue was 8% in 2017. The delivery of rolling stock
under the LCC via THL will, however, decrease as the contract
runs it course.

Another related party is Locotech-Service (LS), which after
recent reorganisation of the shareholding structure, remains
outside the consolidation scope of TMH. LS acts as a
subcontractor of TMH, providing repair and aftermarket services
to TMH's customers.

Additional negative corporate governance factors are a
concentrated ownership structure - which is mitigated by the
presence of Alstom as shareholder - as well as the absence of
both independent board members and an audit committee. However,
such corporate governance practice is common for the majority of
private companies in Russia.

DERIVATION SUMMARY

The ratings of TMH reflect the company's leading position in
Russia and CIS, long-term and successful cooperation with its key
customer Russian Railways . Alstom's 20% stake provides TMH with
strategy, engineering and marketing support. However, the ratings
are capped by limited geographical and customer diversification,
weak corporate governance, and a low share of aftermarket
services. TMH is comparable to some of its Russian and foreign
manufacturing peers, such as Borets International Limited
(Borets; BB-/Stable), JSC HMS Group (HMS; B+/Stable), Arcelik
A.S. (BB+/Negative), CNH Industrial N.V. (CNH; BBB-/Stable), GEA
Aktiengesellschaft (GEA; BBB/Negative), and Siemens AG
(A/Stable).

Smaller scale of operations and lack of diversification versus
GEA, CNH Industrial and Siemens, constrain TMH's ratings, but are
mitigated by strong local market positions, long-term contracts
and good relationship with key customers, as well as by moderate
leverage metrics. TMH reported comparable FFO margin versus HMS
Group, Arcelik and Siemens and has higher profitability than
GEA's and CNH Industiral's. TMH has progressed in deleveraging
and its leverage metrics are commensurate with a 'BBB' rating
median and compares well with higher-rated Arcelik's and GEA's.
Reported FFO adjusted gross leverage of TMH is lower than Borets'
and CNH Industrial's.

No country-ceiling, parent/subsidiary or operating environment
aspects affect the ratings.

KEY ASSUMPTIONS

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

  - Ongoing material double-digit rise in revenue in 2018-2019,
based on existing order book and signed new contracts. Revenue
growth to moderate in the medium term.

  - Improved EBITDA margin in 2018 to about 14% and then slightly
decreasing to around 13% in 2019.

  - Material rise in capex in 2018 due to investments into new
product development. Over the medium term Fitch forecasts lower
capex at average historical 4.5% of revenue.

  - Dividends pay-out of RUB2.5 billion in 2018; about RUB7
billion-RUB8 billion per annum over the medium term.

RATING SENSITIVITIES

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

  - Improved geographic and customer diversification outside CIS
countries

  - FCF margin sustained above 2%

  - FFO adjusted net leverage sustained below 1.0x

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

  - Negative FCF margin on sustained basis

  - FFO adjusted net leverage sustained above 2.5x

  - FFO fixed-charge coverage sustained below 4.0x

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: TMH has proven access to debt capital markets
as shown by its issue of a RUB5 billion bond in the beginning of
November 2018. As of end-November 2018 Fitch-defined unrestricted
cash was about RUB16 billion. Together with available undrawn,
albeit uncommitted, bank facilities of over RUB46 billion with
maturity of more than one year it should be sufficient to cover
expected debt repayment of RUB32 billion. Projected positive FCF
during 2019 should provide additional debt repayment capacity.


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


INTERNATIONAL PARK: Moody's Affirms B2 CFR, Alters Outlook to Neg
-----------------------------------------------------------------
Moody's Investors Service changed to negative from stable the
outlook of Spanish entertainment resort International Park
Holdings B.V. At the same time, Moody's affirmed the B2 corporate
family rating, B2-PD probability of default rating and the B2
ratings on the senior secured term loan B.

RATINGS RATIONALE

The rating action reflects weaker than anticipated operating
performance in 2018, high Moody's adjusted leverage as well as
Moody's view that competitive pressure and inflationary headwinds
could further slowdown the recovery in the next 12 to 18 months.

Moody's expects that the company's EBITDA for 2018 will remain
broadly in line with 2017 level of EUR108 million, despite the
previously anticipated growth, while Moody's adjusted leverage is
estimated between 6x to 6.5x, a high level for the current
rating. In 2018 Portaventura's performance was negatively
impacted by unusually adverse weather conditions in the beginning
of the season, decreased visitation and incremental expenses
related to Mediterranean games, and increased marketing expenses.
The management also noted significant pricing pressure in hotel
segment in Costa Dorada region over the summer season, which led
to weaker results for the company's Hotel business segment.

Portaventura's credit standing is also negatively affected by the
risk of potential adverse weather conditions, transportation
issues and safety concerns that could hurt tourism in the key
months, which would likely be very difficult to compensate for in
the remaining months of the year. In addition, with the UK
tourists accounting for circa 7% of the park visitors,
Portaventura's development in 2019 can be somewhat impacted by a
potential hard Brexit scenario. This might come from further
depreciation of the GBP, concerns from customers about potential
travel disruptions and lower tourist flow, which the company
would have to compensate with growth from other destinations.

More positively, the rating is supported by the ongoing growth in
global tourism flows as well as a positive macroeconomic
environment in Spain, which has seen the lowest unemployment rate
for a decade and above-EU GDP growth. Moody's also expects that
the company's strategy of promoting multi days visits and direct
bookings as well as ongoing investment to new attractions, hotels
and expansion of the Convention centre can help to reinvigorate
earnings growth and reduce leverage towards 5.5x in the next 12-
18 months and also to some extent mitigate exposure to the
weather and seasonality. The rating also reflects the company's
strong cash flow generation and EBITDA interest coverage, which
Moody's expects to stay comfortably above 3x, as well as
established position as the largest destination theme park in
Spain.

Moody's views the liquidity profile as adequate albeit highly
affected by the seasonality of Portaventura's business.
Portaventura's free cash flow generation in 2019 will be limited
by the significant expansion capex of approximately EUR62
million, although there is some flexibility because around 30% of
the capex is not committed. The company's liquidity is further
supported by EUR42 million cash balance as of December 31, 2018
and by the fully undrawn EUR50 million revolving credit facility
(RCF). There are no scheduled debt maturities until 2023. The RCF
has one covenant for net leverage, with ample capacity. The
covenant is only applicable if the aggregate amount of
utilisation amounts to at least 35% of the available amount.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook reflects the elevated risk of decline in
profitability over the next 12 to 18 months, which could lead to
credit metrics no longer commensurate with a B2 CFR. Moody's will
consider stabilising the outlook if the company delivers
sustainable improvements in profitability and credit metrics over
the next 12 to 18 months.

WHAT COULD CHANGE THE RATING UP/DOWN

Given the negative outlook a rating upgrade is unlikely in the
short term. For positive rating pressure to arise, not only would
PortAventuras financial profile need to improve with
significantly lower leverage, strong liquidity and continued
positive free cash flow generation, but the company's business
profile would need to strengthen in terms of scale and
diversification.

Downward pressure on the rating would likely occur if the
company's operating performance trends worsen or its gross
leverage does not decrease to 5.5x in the next 12-18 months, or
following a significant deterioration in liquidity (including,
but not limited to, diminishing covenant headroom) or free cash
flow generation.

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


=====================
S W I T Z E R L A N D
=====================


AIROPACK: Recapitalization Plan Collapses Over Accounting Issues
----------------------------------------------------------------
John Miller at Reuters reports that Airopack's recapitalization
plan collapsed as lenders including Apollo Global Management
demanded repayment following the discovery of "inadequate sales
and accounting practices", the Swiss aerosol packaging maker said
on Feb. 11.

Airopack, whose net loss topped EUR40 million (IS$45.3 million)
in 2017, has been seeking to slash debt via a recapitalization
plan announced on Nov. 30, Reuters discloses.

Its largest lender, U.S.-based private equity firm Apollo, was to
have received a controlling share in the deal, Reuters states.

But developments since then, including the discovery of what
Airopack described as "excessively overstated" sales forecasts by
former managers, now make the recapitalization plan "completely
unachievable", Reuters notes.

According to Reuters, Airopack's lenders, including Apollo and a
major bank, on Feb. 9 demanded repayment of loans in excess of
US$100 million.

Airopack, as cited by Reuters, said it would seek a short period
of debt relief with Swiss courts in order to gain breathing room,
negotiate with lenders and seek to avoid bankruptcy proceedings.

An Airopack spokeswoman said a court in Zug, near the company's
headquarters in Baar, would consider the request, Reuters notes.
There was no projected deadline for a decision, Reuters says.

According to Reuters, the company said its major lenders did
agree to extend a EUR15 million loan, with a possibility of EUR10
million, to keep operating units afloat in the short- and mid-
term.

Problems intensified as Airopack merged its manufacturing at a
new plant in 2017, taking on more and more debt from Apollo to
help keep things running, Reuters recounts.

Financing costs escalated and losses ballooned, requiring the
recapitalization deal that collapsed amid rising concerns over
accounting practices, Reuters discloses.


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


BENNETTS: Enters Administration Following Financial Struggles
-------------------------------------------------------------
Business Sale reports that deemed to be the world's oldest
department store, having opened its doors in 1734, Bennetts has
fallen into administration following a series of financial
struggles.

The company, which has one store in Irongate, Derby and another
in Ashbourne, called in Bridgewood Debt Solutions to handle the
administration process, and appointed partners Paul Mallatratt
and Louise Freestone as joint administrators, Business Sale
relates.

According to Business Sale, the stores are expected to stay open
during the administration process, with hopes that they will be
bought by a potential buyer as a going concern.

Bennetts cited a difficult trading and sales environment as the
reasons for its decline, especially given the harsh condition
stores on the high street have recently been facing, Business
Sale discloses.  The administrators also noted increased online
competition and escalating costs as reasons for the company's
downfall, 300 years after it opened doors to the public, Business
Sale states.


DEBENHAMS PLC: Secures GBP40MM Cash Injection Amid Debt Talks
-------------------------------------------------------------
BBC News reports that Debenhams has secured a cash injection of
GBP40 million to buy it extra time as it battles to secure a
longer-term deal with lenders.

The struggling department store chain called it a "first step"
towards a sustainable future, BBC notes.

The firm -- which issued three profit warnings last year -- is in
talks with lenders over renegotiating its debts, BBC discloses.

It is also trying to accelerate plans to close stores and is
expected to close around 20 outlets this year, BBC states.

According to BBC, the extra money will extend the retailer's
current GBP520 million borrowing facilities with banks for 12
months and enable it to continue talks over a longer-term
refinancing.

Laith Khalaf, senior analyst at Hargreaves Lansdown, as cited by
BBC, said: "This debt agreement is a lifeline for Debenhams, but
isn't going to solve its fundamental problems.

"Trading conditions remain extremely challenging and the business
has a tightrope to walk between cutting costs and investing in
improvements."

Debenhams -- which has 165 stores and employs about 25,000 people
-- reported a record pre-tax loss of GBP491.5 million last year
and said more recently that sales had fallen sharply over
Christmas, BBC relates.

It also announced last year that it would close up to 50 stores
within three to five years, putting 4,000 jobs at risk, BBC
recounts.  The chain has not yet named which stores it plans to
close, BBC notes.

However, it is now trying to secure an insolvency deal that would
enable it to bring forward the closure of around 20 department
store chains to this year, BBC relays.

The deal -- known as a company voluntary arrangement -- would
also allow the chain to renegotiate its rents with landlords, BBC
says.


NIGHTINGALE FINANCE: S&P Withdraws D Rating on US$5BB Notes
-----------------------------------------------------------
S&P Global Ratings withdrew its issuer credit rating (ICR) and
liability ratings on the Nightingale Finance Ltd. structured
investment vehicle (SIV) following dissolution of the issuer.

The senior notes and the mezzanine notes were fully redeemed in
September 2017. The outstanding capital notes were fully redeemed
in July 2018.

In July 2018, all parties to the transaction agreed to release
all security granted under the security trust deed and terminate
all the transaction documents.

Nightingale Finance operated as a structured investment vehicle.
It was initially formed for the purpose of investing in
investment-grade debt, comprising corporate asset-backed and
sovereign debt securities and synthetic securities referencing
assets referred to above, using the proceeds from the issuance of
U.S. commercial paper, U.S. medium-term notes, euro commercial
paper, euro medium-term notes, and subordinated capital notes
under certain issuance programs.

  RATINGS WITHDRAWN

  Nightingale Finance Ltd.

  Class                                        Rating
                                            To       From
  ICR (Local Currency LT)                   NR       A-/Negative
  ICR (Local Currency ST)                   NR       A-2
  ICR (Foreign Currency LT)                 NR       A-/Negative
  ICR (Foreign Currency ST)                 NR       A-2
  US$25 bil Sr Secd med-term note prog
  03/14/2007: sr secd                       NR       A-
  US$25 bil Sr Secd med-term note prog
  03/14/2007: sr secd                       NR       A-
  US$5 bil Sr Secd/Sub med-term note prog
  03/14/2007: sub                           NR       D

  NR--Not rated.


NORTH HERTFORDSHIRE: College Reveals GBP5MM Deficit in 2017/18
--------------------------------------------------------------
Jude Burke at FE Week reports that a cash-strapped college's
2017/18 accounts have revealed a GBP5 million deficit, on the
same day that the insolvency regime came into force.

FE Week relates that the massive shortfall at North Hertfordshire
College is 20 times higher than was budgeted at the beginning of
the year, and twice what was predicted just two months before the
end of the year.

As a result, the college received GBP2.5 million in bailout
funding in just three months, and submitted a last-minute
application for an unspecified sum from the restructuring
facility, the report says.

An FE commissioner report, triggered by the college's request for
exceptional financial support in September which also prompted a
financial notice to improve from the Education and Skills Funding
Agency, is understood to be expected imminently.

According to the report, the college "generated a deficit in the
year of GBP5.03 million" compared with a GBP713,000 surplus in
2016/17, while its income fell from a little over GBP30 million
to nearly GBP24 million in 2017/18.

The deficit includes a GBP4.3 million overspend compared to
income, and a GBP713,000 loss on the sale of a property, the
report relays.

The college "struggled to meet the budgeted revenue targets set,
a situation caused by several factors but most notably the
significant nationwide slowdown in apprenticeship starts
following the introduction of the apprenticeship levy," the
accounts, as cited by feweek.co.uk, said.

Education and Skills Funding Agency figures show North
Hertfordshire had 890 starts in 2017/18, down 29 per cent on the
previous year's total of 1,260, and down 66 per cent on the 2,590
starts in 2015/16, FE Week discloses.

FE Week adds that the college received GBP1 million in
exceptional financial support in September, and a further
GBP500,000 in November, while "approval for a further GBP1
million has been granted and is due in December 2018".

FE Week meanwhile reports that an application to the
restructuring facility in September has been endorsed by the FE
commissioner, Richard Atkins, whose team visited the college in
the same month.

The college also plans to "secure a significant cash injection"
by selling "surplus land", although it was unable to tell FE Week
how much this was expected to raise, citing commercial
confidentiality.

"A new approach has been taken in 2018/19 to managing our cash
position ahead of the implementation of the new insolvency regime
for colleges," the accounts said.

Nonetheless, the principal risk facing the college is that "we
are not able to maintain our target level of cash reserves in
light of the new (sector wide) insolvency regime", which came
into effect on January 31 and which will allow colleges to go
bust for the first time.

"We are now looking forwards," a college spokesperson told FE
Week.

In addition to the apprenticeship slowdown, the college's recent
improvements -- which saw its Ofsted grade increase to 'good' in
November 2017 -- "required considerable investment", she said.

"We have robust recovery plan in place, we are making good
progress towards implementing all the commissioner's
recommendations and we are confident about our future."



                            *********

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
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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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                 * * * End of Transmission * * *