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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

          Thursday, June 20, 2019, Vol. 20, No. 123

                           Headlines



F R A N C E

MOBILUX FINANCE: Fitch Cuts EUR380MM Secured Notes Rating to 'B'
VIVALTO SANTE: Moody's Assigns B2 CFR, Outlook Stable


I R E L A N D

BLACK DIAMOND 2019-1: Moody's Gives (P)B2 Rating to Class F Notes


L U X E M B O U R G

GALAPAGOS HOLDING: Moody's Lowers CFR to Caa3, Outlook Negative


N E T H E R L A N D S

DCDML BV 2016-1: Moody's Affirms B2 Rating on EUR4.4MM Cl. E Notes
STEINHOFF INT'L: Seeks Another Debt Restructuring Extension


R U S S I A

NIZHNIY NOVGOROD: Fitch Affirms BB LT IDRs, Outlook Stable
URAL OPTICAL: S&P Withdraws 'B' Long-Term Issuer Credit Rating
UZBEKISTAN: S&P Affirms BB-/B Issuer Credit Rating, Outlook Stable


T U R K E Y

TURKEY: Moddy's Lowers LT Issuer Ratings to B1, Outlook Negative


U K R A I N E

LVIV CITY: Fitch Affirms B- Issuer Default Ratings, Outlook Stable


U N I T E D   K I N G D O M

FRONERI INTERNATIONAL: S&P Affirms 'B+' ICR Amid Tip Top Deal
HUTCHINSON NETWORKS: PlanNet21 Communications Acquires Business
INDIGO CLEANCO: Moody's Withdraws B1 CFR Due to Insufficient Info
JAMIE'S ITALIAN: SSP Group Acquires Remaining UK Restaurants
NIGEL FREDERICKS: Financial Difficulties Prompt Administration

SNAP TRAVEL: Suspends Operations Due to Lack of Funding
TESCO PLC: S&P Alters Outlook to Positive & Affirms 'BB+/B' ICRs
TWIN BRIDGES 2017-1: Fitch Hikes Class X2 Notes to 'BB+sf'
UNIVERSITY OF WALES: Cash Issues Raise Going Concern Doubt
WOODFORD EQUITY: Hargreaves Lansdown Earns GBP40MM+ Client Fees


                           - - - - -


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F R A N C E
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MOBILUX FINANCE: Fitch Cuts EUR380MM Secured Notes Rating to 'B'
----------------------------------------------------------------
Fitch Ratings has affirmed French furniture, electrical and
decoration retailer Mobilux 2 SAS's (BUT) Long-Term Issuer Default
Rating at 'B'. The Outlook remains Stable. Fitch has downgraded
Mobilux Finance SAS's EUR380 million senior secured notes rating to
'B'/'RR4' from 'B+'/'RR3'. The IDR and the senior secured rating
are now at the same level.

The affirmation of the IDR and the Stable Outlook reflect BUT's
satisfactory business profile, comfortable liquidity as well as the
strong performance seen during YTD19. This offsets the
slower-than-expected deleveraging due to the company's
underperformance for the financial year ended June 2018, and its
expectation that the competitive environment will remain
challenging. It also reflects its confidence that liquidity will be
maintained at current levels, with no large cash outflows through
distribution to shareholders or M&A activities. The current rating
and outlook incorporate deleveraging with funds from operations
(FFO) net leverage below 6.0x in FY19 and trending below 5.5x by
FY21.

The downgrade of the senior secured rating reflects a
weaker-than-expected Fitch-defined going concern EBITDA resulting
in a 'RR4' rather than 'RR3' in its previous analysis.

KEY RATING DRIVERS

Satisfactory Business Model: BUT has been able to outperform the
market during 9MFY19 and is now taking advantage of an improved
product offer and availability, leading to increases in traffic and
conversion rates. Fitch views the recovery on margins seen in
9MFY19 as sustainable once certain logistic issues at BUT have been
resolved. In addition, the company should still have some room for
further improvement due to additional synergies with XXXLutz Group,
although it forecasts Fitch-defined operating EBITDA margin to
remain stable at 5.5%-5.6% as the market remains challenging,
partly prompted by competition from pure online retailers.

New Credit Agreement Enhances Liquidity: During FY18, BUT renewed
its credit activity contract with BNPP, through which it entered
into a pure commission model instead of equity interest within a
common entity. Under this new credit arrangement, BUT received a
EUR50 million exit indemnity and EUR53.5 million advance on
complementary commission. Consequently, the cash buffer
significantly improved to EUR154 million in FY18 from EU12 million
in FY17. Management has confirmed no plans for dividends or large
M&As. Erosion of the liquidity cushion could lead to a rating
downgrade.

Slower Deleveraging Path: Fitch expects slow deleveraging, with FFO
adjusted net leverage trending towards 5.2x in FY22 from 5.7x in
FY19. Fitch believes that free cash flow (FCF) generation will
remain weaker than expected due to fierce competition pressuring
margins, as well as an expected increase in capex in the coming
years, as BUT expands its network and remodels its stores. The IDR
currently has limited financial headroom even though Fitch
forecasts FCF will remain positive. However, deleveraging based on
profit or cash flow expansion could be vulnerable under stress and
lead to some re-leveraging in the event of further adverse market
conditions.

Changing Consumer Habits: Changes in consumer habits observed in
retail markets such as clothing are gaining traction in BUT's
market (furniture, decoration, household appliances). Online sales
are gaining share in the furniture market and represent 12% of
furniture sales according to IPEA and FNAEM. BUT's online sales
represented 7% of total sales in 9MFY19. The company successfully
implemented same-day delivery in big cities, and benefits from its
extensive store network allowing an efficient click & collect
selling strategy. However, Fitch sees these measures as neutral for
the current ratings, with other peers exploiting similar
strategies.

Manageable Refinancing Risk: Refinancing risk is manageable due to
an expected conservative financial policy, comfortable liquidity
and a long 2024 bond maturity. However, slower-than
previously-expected deleveraging means BUT would rely more heavily
on credit market conditions to be favourable when maturities fall
due. Furthermore in case of further deterioration of the company's
performance, refinancing risk may become high.

Average Recoveries for Noteholders: The rating of 'B'/'RR4' for the
senior secured notes reflects average recovery prospects for
noteholders in a default but also their contractual subordination
to BUT's EUR100 million revolving credit facility (RCF).

DERIVATION SUMMARY

BUT maintains a satisfactory business profile for the 'B' category,
which balances a deteriorated and more fragile financial profile.
It is rated similarly to Shop Direct Limited (B/Negative), the
UK-based pure online retailer, with a similar scale and which
enjoys a sustainable business model but has high leverage and lack
of commitment to reduce debt over time. BUT has a small scale and
is concentrated in France, where however it is a leading player
with a robust market share.

BUT shows weaker profitability and more vulnerable leverage metrics
than other larger peers such as Kingfisher plc (BBB/Stable). Whilst
overall BUT's profit margins and leverage are more commensurate
with a 'B-' rating, its satisfactory business model, comfortable
liquidity and the positive operating performance of YTD FY19
support the current ratings at 'B' with Stable Outlook.

KEY ASSUMPTIONS

Revenue to grow 5.6% in FY19 and towards 1.6% thereafter driven by
moderate LfL growth and moderate network expansion;

EBITDA margin recovering to 5.6% in FY21 (FY18: 4.9%), driven by
gross margin improvement and lower operating expenses due to the
resolution of logistic issues;

Average annual capex at 2.2% of revenue per annum over FY19-FY22
(FY18: 1.7%);

No dividend payments over FY19-FY22;

Average annual FCF of 1.1% of revenue over FY19-FY22;

M&A activity limited to small bolt-on acquisitions.

Key Recovery Assumptions

Fitch assumes that BUT would be considered a going concern in
bankruptcy and that it would be reorganised rather than liquidated.
It has assumed a 10% administrative claim in the recovery
analysis;

Fitch has adjusted the EBITDA discount to 30% from 29%, leading to
a post-restructuring EBITDA of EUR61 million, which it believes
should be sustainable post-restructuring;

Fitch has maintained the distressed enterprise value/EBITDA
multiple at 5.0x;

Based on the payment waterfall the RCF of EUR100 million ranks
super senior to the senior secured debt. Therefore, after deducting
10% for administrative claims, its waterfall analysis generates a
ranked recovery for the senior secured bonds in the 'RR4' band,
indicating a 'B' instrument rating. The waterfall analysis output
percentage on current metrics and assumptions was 46% (previously
54%). The IDR and senior secured rating are now at the same level.

RATING SENSITIVITIES

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

Further improvement in scale and diversification leading to FFO
margin above 5% (FY18: 3.1%) and FCF margin above 3% (FY18: 1%) on
a sustained basis

FFO fixed charge cover sustained above 2.0x (FY18: 1.5x)

FFO adjusted gross leverage below 5.0x (net: 4.5x) on a sustained
basis

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

A significant deterioration in revenue and profitability reflecting
for example an increasingly competitive operating environment or an
over-ambitious, ill-executed expansion plan

FFO fixed charge cover below 1.5x on a sustained basis

FFO adjusted gross leverage failing to fall below 6.5x (net: 6.0x)
by end-FY20

Average three-year FFO margin below 3%

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: BUT had Fitch-defined readily available cash
of EUR154 million at FYE18. Fitch expects liquidity to remain
stable over the next four years, supported by a comfortable
maturity schedule with senior secured debt maturing in 2024 as well
as a neutral-to-slightly positive FCF generation. Additionally,
Fitch forecasts neither shareholder distributions nor significant
M&A activity over the rating horizon that could lead to an erosion
of this liquidity buffer. BUT has access to an undrawn EUR100
million RCF maturing in 2022.


VIVALTO SANTE: Moody's Assigns B2 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service has assigned a corporate family rating of
B2 and a probability of default rating of B2-PD to Vivalto Sante
Investissement. Concurrently, Moody's has assigned a B2 rating to
the EUR300 million worth of senior secured Term Loan due 2026 and
to the EUR100 million worth of senior secured Revolving Credit
Facility due 2025 raised by Vivalto and certain subsidiaries. The
outlook on the ratings is stable.

The proceeds from the loans will be used to repay the existing
financial debt of the company and for related fees and expenses.

Assignments:

Issuer: Vivalto Sante Investissement

Probability of Default Rating, Assigned B2-PD

Corporate Family Rating, Assigned B2

Senior Secured Revolving Credit Facility, Assigned B2

Senior Secured Term Loan, Assigned B2

Outlook Actions:

Issuer: Vivalto Sante Investissement

Outlook, Assigned Stable

RATINGS RATIONALE

The B2 CFR assigned to Vivalto is supported by (i) a track record
of solid organic growth driven by the high quality of the
facilities and ongoing recruitment of practitioners, which Fitch
believes will continue to attract patients; (ii) Vivalto's overall
high degree of visibility in terms of future operating performance
supported by social considerations and more particularly favourable
demographics and the role of Social Security (the French National
Health System) as the payor;(iii) the overall high barriers to
entry resulting from the need to obtain necessary authorizations
and attract qualified personnel; (iv) adequate liquidity and
positive free cash flow generation; and (v) some financial
flexibility resulting from the ownership of around 60% of its
facilities.

Conversely, the B2 rating is constrained by (i) the company's small
scale in total revenues terms, when compared to Moody's rated
healthcare universe; (ii) its high leverage, measured by
Moody's-adjusted (gross) debt/EBITDA, expected to be 5.0x at the
end of 2019, pro-forma of the acquisitions concluded until Q1 2019,
(iii) the high exposure to a regulated sector where continued
pressure on reimbursement levels will limit organic growth; (iv)
and a certain degree of event risk as Moody's expects Vivalto to
continue being among the more active players in the consolidation
of the French private hospital market.

Moody's forecasts Vivalto's Moody's adjusted (gross) debt to EBITDA
to be high at around 5.0x at the end of 2019 and pro forma of the
acquisitions concluded until Q1 2019. Moody's adjusts for
capitalized operating leases using a 4x multiple. However, Moody's
recognises that Vivalto's operating lease payments represent only
around 3.5% of the company's revenues, compared to around 7.5% for
similar private hospital groups. The company owns 17 out of its 27
clinics and that creates a degree of financial flexibility compared
to leased properties and reduces the off-balance sheet operating
lease liability which Moody's considers as financial debt.

Moody's expects that Vivalto will gradually deleverage in the next
12-18 months as the company will grow organically its revenues by
around 2% per annum and EBITDA by around 4% per annum bringing
Moody's adjusted leverage towards 4.5x by 2020. Vivalto's sales
growth will be driven by organic volume growth of around 2% per
annum, above the average 1.5% growth for the sector estimated by
Moody's, thanks to the ongoing development of the group's high
quality facilities. Vivalto's shared ownership model is another
driver of volume growth as the company manages to attract and
retain practitioners, which in turn attract new patients. Volume
growth in the sector is supported by an increasing need for
hospital care in France due to an ageing population. The company's
EBITDA growth will be driven by topline growth and by the ongoing
integration and ramp-up of facilities acquired to date. Moody's
also expects Vivalto to offset the ongoing inflationary pressure on
costs through cost efficiencies.

However, Moody's expects Vivalto to continue participating to the
consolidation of the healthcare industry in France. As such,
Moody's cautions that deleveraging from organic EBITDA growth may
be largely offset by potential debt-funded acquisitions as the
company uses its free cash flow generation and raises additional
debt to fund these transactions.

After a peak in capital expenditure in 2019 to fund certain real
estate developments and IT projects, Moody's expects Vivalto to
generate positive free-cash flows. Cash flow generation, before
acquisitions, will be driven by the limited working capital and
maintenance capex requirements of the company.

From a governance point of view, the company is controlled by group
of financial investors which own around 59% of the company, the
company of the founding family Vivalto International (with around
8% ownership) and by practitioners (with around 33% ownership).
Moody's recognises that Vivalto's ownership, the representation of
all parties to the board and an experienced CEO (and founder)
support the long term strategy of the group, though there is a lack
of independent board members, a credit negative. The high leverage
of the company and appetite for acquisitions with policies which
may favor shareholders over creditors are tempered by decision to
retain a large chunk of owned properties compared to its peers and
to maintain a selective approach in the selection of its
acquisition targets. Moody's has factored these considerations into
its assessment of the credit risks associated with Vivalto.

Moody's expects Vivalto's liquidity profile to be satisfactory over
the next 12-18 months. The company's liquidity, pro forma for the
transaction, is supported by cash at closing of around EUR56
million; expected positive free cash flow; and access to a fully
undrawn EUR100 million revolving credit facility (RCF). Moody's
expects Vivalto's liquidity sources to fully cover the company's
annual maintenance capex of around EUR15 million as well as the
EUR55 million growth capex expected in the next two years. Growth
capex is mainly related to real estate developments including
extensions and refurbishments and to IT projects. Moody's expectes
growth capex to normalize to around EUR10 million per annum after
2020. The next debt maturity will occur in 2026 when the new EUR300
million Term Loan expires. All senior secured debt facilities,
including the RCF, will be subject to a net leverage financial
covenant tested quarterly which will step down over the life of the
facilities. The initial threshold will be set at 7.1x with a 50%
headroom from the closing leverage of 4.1x and Moody's expects the
company will maintain ample headroom during the life of the
facilities.

STRUCTURAL CONSIDERATIONS

The B2 rating assigned to the EUR300 million worth of senior
secured term loan and the EUR100 million worth of senior secured
RCF reflects their pari passu ranking in the capital structure and
the upstream guarantees from material subsidiaries of the group
representing 80% of EBITDA. The B2-PD PDR, in line with the CFR,
reflects Moody's assumption of a 50% family recovery rate typical
for bank debt structures with a loose set of financial covenants.

Rating Outlook

The stable outlook reflects Moody's expectation that Vivalto will
continue to grow, mainly through bolt-on acquisitions, while
maintaining a leverage, as measured by Moody's-adjusted (gross)
debt/EBITDA, below 5.5x. The stable outlook reflects also Moody's
expectation that the company will continue to generate positive
free cash flows and will maintain an adequate liquidity profile.

What Could Change The Rating Up/Down

Positive pressure could arise if the company's Moody's-adjusted
debt/EBITDA ratio falls sustainably towards 4.5x as the company
further grows earnings and margins supported by a successful
execution of its strategy, including the smooth integration of
bolt-on acquisitions, and a solid liquidity profile including
positive free cash flows.

Vivalto is adequately positioned in the B2 rating category.
However, negative pressure could arise if (i) the company's
Moody's-adjusted (gross) debt/EBITDA ratio would rise above 5.5x on
a sustained basis or if (ii) its free cash flow generation and
liquidity profile were to weaken or (iii) its profitability were to
deteriorate due to competitive, regulatory and/or pricing pressure
or (iv) in case of large debt-financed acquisitions or material
distributions to shareholders.

PRINCIPAL METHODOLOGY

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

Vivalto Sante Investissement (Vivalto) is the third largest
France-based private hospital group. In fiscal year 2018, Vivalto
reported revenue of EUR505 million and EBITDA of EUR58 million.
Founded in 2009, Vivalto manages 27 clinics focused on three
regional clusters in Brittany-Normandy, Rhone-Alpes and Ile de
France.

Vivalto's ownership is shared between practitioners (33%), Vivalto
Sante Holding (66%) and management (1%). Vivalto Sante Holding is
owned by a group of investors including MACSF (27.8%), BPI France
(18.3%), Mubadala (18.3%), Arkea (11.3%), Credit Agricole (10%),
BNP Paribas (6.7%) and Vivalto International (7.6%). Vivalto
International is Daniel Caille's family holding.




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I R E L A N D
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BLACK DIAMOND 2019-1: Moody's Gives (P)B2 Rating to Class F Notes
-----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Black
Diamond CLO 2019-1 Designated Activity Company:

EUR3,000,000 Class X Senior Secured Floating Rate Notes due 2032,
Assigned (P)Aaa (sf)

EUR187,000,000 Class A-1 Senior Secured Floating Rate Notes due
2032, Assigned (P)Aaa (sf)

USD34,360,000 Class A-2 Senior Secured Floating Rate Notes due
2032, Assigned (P)Aaa (sf)

USD25,000,000 Class A-3 Senior Secured Fixed Rate Notes due 2032,
Assigned (P)Aaa (sf)

EUR27,000,000 Class B-1 Senior Secured Floating Rate Notes due
2032, Assigned (P)Aa2 (sf)

EUR25,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2032,
Assigned (P)Aa2 (sf)

EUR22,000,000 Class C Senior Secured Deferrable Floating Rate Notes
due 2032, Assigned (P)A2 (sf)

EUR25,000,000 Class D Senior Secured Deferrable Floating Rate Notes
due 2032, Assigned (P)Baa3 (sf)

EUR22,000,000 Class E Senior Secured Deferrable Floating Rate Notes
due 2032, Assigned (P)Ba3 (sf)

EUR11,000,000 Class F Senior Secured Deferrable Floating Rate Notes
due 2032, Assigned (P)B2 (sf)

Moody's issues provisional ratings in advance of the final sale of
financial instruments, but these ratings only represent Moody's
preliminary credit opinions. Upon a conclusive review of a
transaction and associated documentation, Moody's will endeavour to
assign definitive ratings. A definitive rating (if any) may differ
from a provisional rating.

RATINGS RATIONALE

The rationale for the ratings is based on a consideration of the
risks associated with the CLO's portfolio and structure as
described in its methodology.

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

Black Diamond CLO 2019-1 Adviser, L.L.C. 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-year reinvestment period. Thereafter, subject to certain
restrictions, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from sales of credit
risk obligations or credit improved obligation.

Interest and principal amortisation amounts due to the Class X
Notes are paid pro rata with payments to the Class A-1 Notes, Class
A-2 Notes and Class A-3 Notes. The Class X Notes amortise by 12.5%
or EUR 375,000 over the first eight payment dates starting on the
1st payment date.

In addition to the ten classes of notes rated by Moody's, the
Issuer will issue EUR24,500,000 of Class M1 Notes and USD8,512,000
of Class M2 Notes which will note 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
March 2019.

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

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

Moody's used the following base-case modeling assumptions:

Par Amount: EUR 400,000,000

Diversity Score: 54*

Weighted Average Rating Factor (WARF): 2900

Weighted Average Spread (WAS): 3.8%

Weighted Average Coupon (WAC): 6.0% for EUR assets /7.0% for USD
assets

Weighted Average Recovery Rate (WARR): 45.0%

Weighted Average Life (WAL): 8.5 years

  * The covenanted base case diversity score is 55, however Moody's
has assumed a diversity score of 54 as the deal documentation
allows for the diversity score to be rounded up to the nearest
whole number whereas usual convention is to round down to the
nearest whole number.

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



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L U X E M B O U R G
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GALAPAGOS HOLDING: Moody's Lowers CFR to Caa3, Outlook Negative
---------------------------------------------------------------
Moody's Investors Service downgraded to Caa3 from Caa1 the
corporate family rating and to Ca-PD from Caa1-PD the probability
of default rating of Galapagos Holding S.A. Moody's also downgraded
to C from Caa3 the rating pertaining to the senior unsecured notes
of Galapagos and to Caa2 from B3 the rating pertaining to the
senior secured notes issued by Galapagos S.A., a subsidiary of
Galapagos. The outlook remains negative.

RATINGS RATIONALE

"Moody's decision to take this rating action was triggered by the
announcement made by Galapagos S.A. on June 7, 2019 related to a
proposed balance sheet restructuring transaction," said Oliver
Giani, Moody's lead analyst for Galapagos. "The announcement
clearly states that Galapagos intents not to pay the next interest
payments when due on June 15, 2019, which would lead under Moody's
definition to an interest payment default on July 15, when the 30
days grace period lapses," he added.

The Ca-PD probability of default rating and the Caa3 CFR reflect
Galapagos' unsustainable capital structure and Moody's expectation
that the proposed restructuring will lead to a recovery of above
50% on corporate family level (in relation to EUR 703 million debt
outstanding), based on the expectation that the recent
restructuring proposal will be implemented.

The rating also factors in: (1) the improved outlook for the
business driven by the restructuring measures initiated and
supported by some market tailwind, (2) the criticality of the heat
exchange product, which typically represents a small percentage of
the overall cost of a large power plant or asset; (3) a strong
position in the global heat exchange market with a broad product
portfolio, global production capability and geographic
diversification; (4) long-standing customer relationships as well
as technological know-how and last not least (5) continuing support
from the sponsor Triton, evidenced by its willingness to provide up
to EUR 140 million of equity and/or subordinated debt.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects the expected interest payment default
on the senior secured notes and the senior unsecured notes and the
execution risk of the announced debt restructuring transaction
which, if not successful, could result in a potentially even lower
recovery impacting not only the unsecured creditors but also more
severely the secured noteholders.

LIQUIDITY

While the current weakness of liquidity has been among the factors
that led to the expected default, after the debt restructuring,
Galapagos' liquidity position should be improved to pursue its
operations. As part of the proposed transaction Triton Fund IV will
provide an EUR24.8 million interim funding to Galapagos Bidco
S.a.r.l. by way of an additional revolving credit facility which
should leave the company with around EUR 10 million headroom
against its business plan.

WHAT COULD CHANGE THE RATING -- UP/DOWN

The CFR of Galapagos could be downgraded should the restructuring
transaction fail with recovery prospects materially lower than
currently expected.

An upgrade of the ratings could result from the debt restructuring,
which will reduce the debt burden and if supported by a recovery in
operating performance.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Galapagos Holding S.A. is a holding company, incorporated in
Luxembourg, for a group of entities involved in the manufacturing
of heat exchangers for a variety of different industrial
applications. These primarily include HVAC & refrigeration, the
power generation and oil & gas sectors but also the food &
beverages, chemicals and marine business areas. Galapagos was
formed through a de-merger from its previous parent - GEA AG (a
German engineering company) in May 2014 - and was acquired by
Triton Partners, a private equity group. In 2018, Galapagos
achieved pro-forma revenues of EUR901 million from continuing
operations.




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DCDML BV 2016-1: Moody's Affirms B2 Rating on EUR4.4MM Cl. E Notes
------------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of two Notes and
affirmed the ratings of three Notes in DCDML 2016-1 B.V., a Dutch
RMBS transaction. The rating action reflects better than expected
collateral performance as well as increased levels of credit
enhancement for the affected Notes.

EUR250.2M Class A Notes, Affirmed Aaa (sf); previously on Nov 7,
2016 Definitive Rating Assigned Aaa (sf)

EUR6.9M Class B Notes, Upgraded to Aa1 (sf); previously on Nov 7,
2016 Definitive Rating Assigned Aa2 (sf)

EUR6.7M Class C Notes, Upgraded to Aa3 (sf); previously on Nov 7,
2016 Definitive Rating Assigned A1 (sf)

EUR3.7M Class D Notes, Affirmed Baa2 (sf); previously on Nov 7,
2016 Definitive Rating Assigned Baa2 (sf)

EUR4.4M Class E Notes, Affirmed B2 (sf); previously on Nov 7, 2016
Definitive Rating Assigned B2 (sf)

DCDML 2016-1 B.V. is a static cash securitisation of Dutch prime
mortgage loans backed by residential properties located in the
Netherlands and originated by Dynamic Credit Woninghypotheken B.V.

RATINGS RATIONALE

The rating action is prompted by a decreased key collateral
assumption, namely the MILAN CE, due to better than expected
collateral performance, as well as an increase in credit
enhancement for the affected tranches. Moody's affirmed the ratings
of the tranches that had sufficient credit enhancement to maintain
their current ratings.

Revision of Key Collateral Assumptions

Collateral performance of the transaction has continued to be
stable since closing. As of the April 2019 IPD, total delinquencies
stood at 0.13% of the portfolio current balance, however, the
transaction has so far never suffered arrears in excess of 60 days.
Cumulative losses stand at 0.00% of the original pool balance.

Moody's has assessed loan-by-loan information as a part of its
detailed transaction review to determine the credit support
consistent with target rating levels and the volatility of future
losses. As a result, Moody's has decreased the MILAN CE assumption
to 10.00% from 11.00% previously.

Moody's has maintained its expected loss assumption at 1.50% as a
percentage of the original pool balance.

Increase in Available Credit Enhancement

Sequential amortization and non-amortizing reserve fund led to the
increase in the credit enhancement available in this transaction.

The credit enhancement for Classes B and C increased to 9.5% and
6.5% from 7.8% and 5.3% since closing respectively.

The rating action took into consideration the Notes' exposure to
relevant counterparties, such as servicer, account bank or swap
provider.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
March 2019.

The analysis undertaken by Moody's at the initial assignment of
these ratings for RMBS securities may focus on aspects that become
less relevant or typically remain unchanged during the surveillance
stage.

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

Factors or circumstances that could lead to an upgrade of the
ratings include: (1) performance of the underlying collateral that
is better than Moody's expected; (2) increase in available credit
enhancement; and (3) improvements in the credit quality of the
transaction counterparties.

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


STEINHOFF INT'L: Seeks Another Debt Restructuring Extension
-----------------------------------------------------------
Janice Kew at Bloomberg News report that Steinhoff International
Holdings NV is seeking another extension to restructure almost
US$12 billion of debt as the retailer strives to keep shop doors
open and increase the value of some of its assets.

According to Bloomberg, the South African retailer will probably
miss a June 30 deadline for agreeing a debt deal, the owner of
Conforama in France and Mattress Firm in the U.S. said in its 2018
annual report published late on June 18.  Steinhoff said the
company needs time to prepare some divisions for an eventual sale
that will enable it to repay creditors, Bloomberg relates.

The way the debt restructuring has been put together "is to avoid
fire sales and to rather give the company a few years to run the
business and see what value it can get," Charles Allen, an analyst
at Bloomberg Intelligence, said by phone on June 19.

Alongside the annual report, Steinhoff published its second set of
full-year audited earnings in as many months, Bloomberg relays.
While the company reduced its loss by 70% to EUR1.2 billion (US$1.3
billion) in the year through September, that wasn't enough to
appease investors, Bloomberg notes.

Steinhoff's payment-in-kind interest payments of about 10% on the
EUR10.4 billion euros of gross debt means "equity holders are
unlikely to even receive crumbs," Bloomberg quotes Mr. Allen as
saying.

Steinhoff's assets were valued at EUR16.4 billion as of September,
compared with EUR17.5 billion the previous year, the company, as
cited by Bloomberg, said in a presentation on its website.  The
retailer had previously made EUR15.3 billion of writedowns because
of accounting irregularities, as former management led by ex-Chief
Executive Officer Markus Jooste allegedly oversaw a series of
related-party transactions that inflated profit and asset values,
Bloomberg notes.

In addition to the debt restructuring, Steinhoff is keeping a tight
grip on spending to help strengthen its cash position, Bloomberg
says.  Sales in 2019 are expected to drop because of further asset
disposals, more competition and a weak trading environment,
according to Bloomberg.

Steinhoff International Holdings NV's registered office is located
in Amsterdam, Netherlands.




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

NIZHNIY NOVGOROD: Fitch Affirms BB LT IDRs, Outlook Stable
----------------------------------------------------------
Fitch Ratings has affirmed Russia's Nizhniy Novgorod Region's
Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR)
at 'BB' with Stable Outlooks and Short-Term Foreign-Currency IDR at
'B'. The region's senior unsecured debt ratings have been affirmed
at 'BB'.

The affirmation is based on a 'Weaker' assessment of the region's
risk profile and debt sustainability assessment of 'aa' according
to Fitch's rating case. Nizhniy Novgorod's standalone credit
profile (SCP) is assessed at 'bb', which reflects a combination of
weaker risk profile and sound debt metrics, resulting in a 'aa'
debt sustainability assessment. The SCP also factors in appropriate
rated peers' positioning. Fitch does not apply any asymmetric risk
or extraordinary support from upper-tier government, which results
in the 'BB' IDR.

Nizhniy Novgorod is a Russian region located in the European part
of the country. Its capital city - Nizhniy Novgorod - also serves
as an administrative centre for Volga Federal District and is the
fifth-largest city in Russia. The region's economic profile is
dominated by the industrial sector and is on par with the national
average for regions. In accordance with budgetary regulation,
Nizhniy Novgorod can borrow domestically, while accounts are
presented on a cash basis, with the law on budget being approved
for three years.

KEY RATING DRIVERS

Revenue Robustness (Weaker)

In its view, Nizhniy Novgorod's tax base has modest growth
prospects over the medium term. The region's revenue demonstrated
close to zero growth in real terms in 2013-2018 (average 0.2% yoy),
while real economic growth for the period averaged 1.7%. Growth
remains modest and close to that of Russia's economy, reflecting
the overall sluggish national macro-economic environment.

Taxes are the prime source of the region's total revenue,
representing 81% in 2018. Personal income tax (PIT) and corporate
income tax (CIT) are the most important taxes, accounting for 30%
and 26% of the region's total revenue in 2018, respectively.
Collection of both PIT and CIT was stable in 2013-2018, and has not
been subject to volatility associated with economic cycles.
However, as PIT and CIT are federal taxes, their allocation between
government tiers is centrally regulated by the Budgetary Code,
which exposes the region to some volatility from regulatory risk.

Revenue Adjustability (Weaker)

We assess Nizhniy Novgorod's ability to generate additional revenue
in response to possible economic downturns as limited. The federal
government holds significant tax-setting authority, which limits
Russian local and regional governments' (LRG) fiscal autonomy and
revenue adjustability. The regional governments have limited
rate-setting power over three regional taxes: the corporate
property tax, the gambling tax and the transport tax. The
proportion of these taxes in Niznhniy Novgorod region's tax
revenues is low (2018: 16%). In addition, the maximum tax rates for
these taxes are determined in the National Tax Code, which further
limits the region's capacity to adjust revenue.
Expenditure Sustainability (Midrange)
The region's control of expenditure is prudent, with a track record
of keeping spending below revenue in 2013-2018. In line with the
national regulatory framework, Nizhniy Novgorod is vested with
responsibilities in education, healthcare, certain social benefits,
public transportation and road construction.

Education and healthcare, being of a counter-cyclical nature,
accounted for 35% of regional spending in 2018. In line with other
Russian regions, Nizhniy Novgorod is not required to adopt
counter-cyclical measures, which would inflate expenditure related
to funding social benefits in downturns. Nonetheless, as the
region's budgetary policy is dependent on federal government
decisions, it could negatively affect expenditure dynamic in the
medium term.

Expenditure Adjustability (Weaker)

In line with most of Russian LRGs, Fitch assesses Nizhniy
Novgorod's expenditure adjustability as low. This is due to rigid
structure of the region's expenditure; the vast majority of
spending responsibilities are mandatory for Russian subnationals.
Therefore the bulk of expenditure could be difficult to cut in
response to potential revenue shrinking. Fitch notes that the
region retains some limited flexibility to cut or postpone capital
outlays in case of stress (capex averaged 14% of total spending in
2013-2018). Nonetheless this ability is constrained by the
relatively low level of the region's per capita investment compared
with international peers.

Liabilities and Liquidity Robustness (Midrange)

According to national budgetary regulation, subnational governments
are subject to debt stock and new borrowing restrictions as well as
limits on annual interest payments. Derivatives and floating rates
are prohibited for LRGs in Russia. The limitations on external debt
are very strict and in practice no Russian region borrows
externally. Nizhniy Novgorod region follows a prudent debt policy,
as evidenced by its moderate debt level, measured by the fiscal
debt burden (net adjusted debt/operating revenue) averaging 52% in
2013-2018.

The region's 2018 debt structure was dominated by domestic bonds
(57% of the total debt stock), followed by bank loans (16%) and
low-cost federal budget loans (27%). The region's contingent
liabilities are limited to modest issued guarantees and debt of its
public sector, with immaterial exposure to off-balance sheet risks.


Liabilities and Liquidity Flexibility (Midrange)

As the national budgetary regulation supports liquidity flexibility
of Russian regions, federal government provides intra-year treasury
loans to cover occasional cash gaps in the region's budget. Nizhniy
Novgorod follows a conservative approach in liquidity management
and maintains an adequate cash balance as well as committed credit
lines with the state-owned banks. The counterparty risk associated
with the liquidity providers of the region is 'BBB-', which drives
its assessment of this risk factor at Midrange.

Debt Sustainability Assessment: 'aa'

Like other Russian sub-nationals Fitch classifies Nizhniy Novgorod
region as a Type B LRG, which are required to cover debt service
from cash flow on an annual basis. The 'aa' assessment of debt
sustainability is driven by a strong payback ratio (net adjusted
debt/operating balance), which is the primary metric of the debt
sustainability assessment for Type B LRGs. According to Fitch's
rating case, which envisages some stress on both revenue and
expenditure to capture historical volatility, the payback ratio
will remain below 9x over the five-year projected period (2018:
2.9x).

For the secondary metrics, Fitch's rating case assumes that the
fiscal debt burden will not exceed 50% in 2023, while the actual
debt service coverage ratio (operating balance to the debt service,
including short-term debt maturities) will be below 1x in
2019-2023.

RATING DERIVATION

Fitch assesses Nizhniy Novgorod's SCP at 'bb', which reflects a
combination of 'Weak' risk profile and sound debt metrics with a
'aa' assessment of debt sustainability. The notch-specific rating
positioning is assessed against the region's international peers.
The IDRs are not affected by any asymmetric risk or extraordinary
support from an upper tier of government. As a result, the region's
IDRs are equal to its SCP.

KEY ASSUMPTIONS

Fitch's key assumptions within its base case include:

- Growth of CIT in line with nominal GRP growth.

- Growth of other taxes and current transfers in line with
inflation.

- Decline of other operating revenue to average five-year
historical level excluding outlier.

- Decline of interest revenue in line with depletion of cash
reserves.

- Growth of operating expenditure in line with inflation.

- Stable capex.

Fitch's rating case applies the following stress compared with the
base case:

- Stress of CIT to reflect its historical volatility and
dependence on economic cycles.

- Stress of current transfers made 0.5 pp on an annual basis.


URAL OPTICAL: S&P Withdraws 'B' Long-Term Issuer Credit Rating
--------------------------------------------------------------
S&P Global Ratings withdrew its 'B' long-term issuer credit rating
on optical systems supplier, Ural Optical & Mechanical Plant JSC
(UOMZ) at the company's request.

The outlook was stable at the time of the withdrawal. This
reflected our view on the company's ability to refinance or roll
over its short- and medium-term debt as it comes due. S&P said, "We
also expected UOMZ to benefit from ongoing state support and
maintain adequate liquidity in the next 12 months. Furthermore, we
assumed that UOMZ would be able to maintain its sole-supplier
status for its main customers in the defense industry in Russia."

The company had no rated debt at the time of the withdrawal.


UZBEKISTAN: S&P Affirms BB-/B Issuer Credit Rating, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' long-term and 'B' short-term
issuer credit ratings on Uzbekistan with a stable outlook.

Outlook

S&P said, "The stable outlook reflects our expectation that, over
the next year, Uzbekistan's fiscal and external positions will
remain strong but decline slightly, due to current account deficits
and government borrowing.

"We could raise the ratings if Uzbekistan's increased integration
with the global economy and government reforms of state-owned
enterprises (SOEs) result in increased growth potential and
resiliency for the economy. We could also raise the ratings if
monetary policy effectiveness were to improve, for example through
a decline in dollarization of the economy. Further diversification
of the government's revenue base or the composition of the
economy's exports would also be supportive of the ratings.

"We could lower the ratings if Uzbekistan's integration with the
world economy were to result in a significant deterioration in the
fiscal and external balance sheets. This could be due to imports
remaining elevated and current account deficits continuing to be
funded by debt-creating flows and asset drawdowns. We could also
lower the ratings if we observed increasing weakness in key SOEs,
leading to growing contingent liabilities for the government."

Rationale

S&P said, "Our ratings on Uzbekistan are supported by the external
creditor position of the economy and the government's low debt
burden. These strengths predominately arise from the government's
net asset position, which stems from the policy of transferring
some revenue from commodity sales to the Uzbekistan Fund for
Reconstruction and Development (UFRD).

"Our ratings are constrained by Uzbekistan's low economic wealth,
as measured by GDP per capita. In our view, future policy responses
may be difficult to predict, given the highly centralized
decision-making process and the relatively undeveloped
accountability and checks and balances between institutions. Our
ratings are also constrained by low monetary policy flexibility."

Institutional and economic profile: Broad-based policy reforms have
improved institutions and opened up the economy, but from a low
base.

-- The authorities began a process of economic reforms in 2017
aimed at modernizing the economy, but challenges--such as SOE
sector reforms and increasing foreign direct investment--remain.

-- Progress with institutional reforms is also continuing but S&P
expects decision-making to remain centralized despite improvements
to governance.

-- GDP per capita remains low, at an estimated $1,800 in 2019, but
S&P expects real GDP growth to remain relatively strong, averaging
just over 5% over its forecast period to 2022.

The government of Uzbekistan has initiated a series of broad-based
policy reforms, including attempts to increase the independence of
the judiciary, remove some restrictions on free expression, and
increase the government's accountability to its citizens. Changes
have also included the implementation of an anti-corruption law, an
increase in transparency regarding economic data, and the
liberalization of trade and the foreign exchange regimes.
Relationships with neighbors have also greatly improved, shown by
increased co-operation in border demarcation with Kyrgyzstan and
improvements in transportation links with Kazakhstan and
Tajikistan.

Notwithstanding the positive trend in strengthening institutions,
in S&P's view, Uzbekistan is starting from a low base. S&P believes
that decision-making will remain highly centralized in the hands of
the president, making future policy responses more difficult to
predict. S&P observes that checks and balances between institutions
remain weak. In addition, uncertainty over any future succession
remains, despite the relatively smooth transfer of power to
President Mirziyoyev.

Further reforms began recently in the SOE, minerals, and utilities
sectors, notably with the creation of the Ministry of Energy, which
will have regulatory purview over the oil, gas, and electricity
sectors. S&P believes reforms in the SOE sector could coincide with
reforms in the banking sector, given their interconnected nature.
At the beginning of 2019, the simplified tax system went into
effect and in December 2018 the government issued local currency
treasury bonds for fiscal purposes and to develop the nascent
domestic financial markets.

Over its forecast period through 2022, S&P expects real GDP growth
to average just over 5%, supported by growth in the services,
manufacturing, and natural resources sectors. The construction
sector is a small but growing part of GDP. The economy has been
government-led for many years, and is still dependent on SOEs,
which contribute a large share of GDP.

Nevertheless, successful reforms of the SOE sectors, including
modernizing their operations and bringing them to cost recovery
levels, could lead to increased growth potential for Uzbekistan.
The country has a significant endowment of natural resources,
including large reserves of diverse commodities, the export of
which has supported past current account surpluses. Globally, the
country is one of the top 20 producers of natural gas, gold,
copper, and uranium.

Attracting foreign direct investment (FDI) is a priority for the
government. Currently, FDI inflows are low and concentrated in the
extractive industries, particularly natural gas. If government
reforms attract more FDI, this would reduce the debt-financing of
the current account balance and help to preserve the government's
large external asset position.

In 2018, credit to the economy expanded by about 50%, well above
nominal GDP growth. Although S&P expects elevated credit growth due
to the pent-up investment needs of the economy, sustained high
credit growth can result in asset bubbles and less conservative
bank lending practices. Such outcomes could weaken our long-term
assessment of the economy.

Uzbekistan's population is young, with almost 90% at or below
working age, which presents an opportunity for labor supply-led
growth. However, it will remain a challenge for job growth to match
demand. Despite steady growth, GDP per capita remains low, at about
$1,800 at year-end 2019, but is higher when measured on a
purchasing-power-parity basis.

Flexibility and performance profile: A surge in imports led to a
significant current account deficit in 2018, which S&P expects to
be maintained over the forecast period

-- S&P expects the current account to remain in deficit, averaging
about 6% of GDP over the forecast period, to meet the consumption
and investment demands of the more outward-facing economy.

-- The government's debt burden will remain low despite ongoing
fiscal deficits, averaging about 3.5% of GDP over the forecast
period.

-- High dollarization, which may only decrease as confidence in
the domestic currency increases, continues to hamper monetary
policy effectiveness. S&P does not expect single-digit inflation
within its forecast horizon through to 2022.

The current account opened up more than anticipated in 2018, with a
deficit of about 7% of GDP. This was the result of increased
capital goods imports and wider statistical coverage of previously
informal sectors of the economy. S&P expects the current account
balance to average a deficit of about 6% over its forecast period
to fulfill the economy's need for the capital goods and high
technology goods required to modernize. Additionally, consumer
goods imports should remain elevated, given the increased ease of
trade.

Better trade relations with neighbors should boost Uzbekistan's
exports, especially agricultural goods. However, exports remain
heavily dependent on commodities, with gold, other metals, and
natural gas making up approximately 50%. Remittances and income
from abroad are an important component of Uzbekistan's current
account, given the large number of Uzbeks working abroad,
particularly in Russia.

S&P said, "We expect sustained current account deficits to mean
liquid external assets exceed external debt by about 6% of current
account payments on average over the forecast period, compared with
28% in 2017. In our view, the economy's external balance sheet will
remain strong. We estimate our measure of external liquidity (gross
external financing needs to current account receipts, plus usable
reserves) to be relatively modest at 97%, because of the long-dated
nature of the economy's external debt and high level of reserves.

"We include in our estimate of the central bank's reserve assets
its significant holdings of monetary gold. The central bank is the
sole purchaser of gold mined in Uzbekistan. It purchases the gold
with local currency then sells dollars in the local market to
offset the increase in reserves from the gold. We do not include
UFRD assets in the central bank's reserve assets but instead
consider them government external assets, because we view them as
fiscal reserves.

"We expect the government's fiscal balance to remain in a deficit
of about 2% of GDP over the forecast period. We anticipate the
government will increase social spending on areas such as education
and health care, but we also expect an increase in capital
expenditure, given the economy's infrastructure needs. Currently,
wages make up the largest component of expenditure, at over 50%.
The government implemented tax reforms in 2019. The reforms
simplified the tax code and lowered some tax rates. Although this
may help expand the tax base and increase collection rates, we
believe initially it could lead to weaker revenue.

"We estimate the general government sector will be in a net debt
position by year-end 2020. Government assets, used for both
domestic fiscal and external purposes declined in 2018. We estimate
government assets will average about 18% of GDP over our forecast
period. The government's assets are mostly kept in the UFRD.
Founded in 2006, and initially funded with capital injections from
the government, the UFRD has received revenue from gold, copper,
and gas sales above certain cut-off prices. We include only the
external portion of UFRD assets in our estimate of the government's
net asset position because we view the domestic portion--which
consists of loans to SOEs and capital injections to banks--as
largely illiquid.

"The government issued a $1 billion eurobond in February 2019 and
issued its first local currency treasury bonds since 2012 in
December 2018. We estimate general government debt at $13.6 billion
(22% of GDP) at year-end 2019. Besides the eurobond, most debt is
split roughly equally between official bilateral and multilateral
creditors. General government debt is almost all external and
denominated in foreign currency, making it susceptible to exchange
rate movements. In our estimate of general government debt, we
include external debt of SOEs guaranteed by the government, due to
the closeness of the government to the SOEs and the ongoing support
for the SOEs from the government. General government debt service
is low, due to its concessional nature. We estimate interest
payments at 1% of revenue on average over our forecast period.

"In addition to the SOE's external debt that we include in our
definition of general government debt, the government also
guarantees about $4.5 billion (11.5% of GDP) of
foreign-currency-denominated but domestically-held debt of SOEs.
These loans are from the UFRD and we consider this government
expenditure. As reforms on SOEs begin, if it becomes apparent that
sizable government financial support will be necessary, we could
reconsider our assessment of contingent liabilities.

One of the most significant economic reforms that Uzbekistan has
made was the liberalization of the exchange rate regime in
September 2017 from a crawling peg, over-valued in comparison with
the black market rate, to a managed float. S&P said, "Although we
believe the central bank initially intervened heavily in the
foreign exchange market, it now only intervenes intermittently to
smooth volatility. The relatively short track record of the float
constrains our assessment of monetary flexibility, as does our
perception of the potential for political interference in the
central bank's decision-making. Our assessment of monetary policy
is also constrained by high inflation and the high dollarization of
the economy, which limits the effectiveness of monetary policy
transmission mechanisms. Positively, the central bank is moving
toward inflation targeting, but we expect this transition will take
a few years."

S&P said, "We expect inflation to remain above 10% for our forecast
period and to average 15% over 2019. Despite the effects of the
September 2017 currency devaluation having mostly worked through
the economy, inflation should remain high. More open trade policies
have allowed domestic prices to move toward regional and
international prices, putting inflationary pressure on domestic
goods. Growth in public sector wages and the liberalization of
regulated prices should also add to inflationary pressure over the
forecast period. We note that in September 2018, in response to
these inflationary pressures, the central bank raised its
refinancing rate to 16%. We expect monetary policy to remain
tight."

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  Ratings Affirmed
  Uzbekistan

  Sovereign Credit Rating              BB-/Stable/B
  Transfer & Convertibility Assessment BB-
  Senior Unsecured                      BB-




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

TURKEY: Moddy's Lowers LT Issuer Ratings to B1, Outlook Negative
----------------------------------------------------------------
Moody's Investors Service downgraded the Government of Turkey's
long-term issuer ratings to B1 from Ba3 and has maintained the
negative outlook. The senior unsecured bond ratings and senior
unsecured shelf ratings have also been downgraded to B1 and (P)B1
respectively from Ba3/(P)Ba3.

Concurrently, Moody's has downgraded to B1 from Ba3 the backed
senior unsecured bond ratings of Hazine Mustesarligi Varlik
Kiralama A.S., a special purpose vehicle wholly owned by the
Republic of Turkey from which the Turkish Treasury issues sukuk
lease certificates, and has maintained the negative outlook.

The downgrade reflects Moody's view that the risk of a balance of
payments crisis continues to rise, and with it the risk of a
government default. The B1 rating balances these risks against the
country's fundamental credit strengths, particularly its large,
diversified economy and still-moderate levels of government
indebtedness.

In a related decision, Moody's lowered Turkey's long-term country
ceilings: the foreign currency bond ceiling to B1 from Ba2; its
foreign currency deposit ceiling to B3 from B2; and its local
currency bond and deposit ceilings to Ba2 from Ba1. The short-term
foreign currency bond ceiling and short-term foreign currency
deposit ceiling remain at Not Prime (NP). Ceilings generally act as
the maximum ratings that can be assigned to a domestic issuer in
Turkey, including structured finance securities backed by Turkish
receivables. The decision to align the foreign currency bond
ceiling and the government bond ratings reflects Moody's view that
exposure to a single, common threat -- loss of external confidence
and capital -- means that the fortunes of public and private sector
entities in Turkey are, from a credit perspective, increasingly
intertwined.

RATINGS RATIONALE

The impact of the continued erosion in institutional strength and
policy effectiveness on investor confidence is increasingly
outweighing Turkey's traditional credit strengths including its
large, diverse economy and the low level of government debt. Turkey
is structurally highly reliant on external capital flows, and
Moody's confidence in its ability to continue to attract the large
sums needed each year to repay debt and sustain growth is waning.
It remains highly vulnerable to a further prolonged period of acute
economic and financial volatility. Foreign exchange reserve buffers
are weak and Moody's expects them to weaken further over the next
two years relative to economy-wide short-term liabilities. While
policy announcements have been made, the political authorities have
yet to implement a plan that would allow the economy to adjust to a
new, more sustainable equilibrium due to the negative short-term
economic impact that this adjustment would entail.

The government's willingness or ability to implement policies that
will sustain external investor confidence in the economy and
financial system by addressing underlying weaknesses remains
uncertain. Since mid-2018, the government has announced a number of
economic reform packages. Ultimately, these announcements have been
either reactive to particular pressures on the economy or a
restatement of measures that would be credit positive if
implemented, but have been discussed for years, and where little
concrete has been done to execute on these policy aspirations. Most
government measures, including those targeting the banking system,
continue to be focused on the near-term priority of propping up
economic activity at the expense of eroding the underlying
resilience of the economy and its banking system to external
shocks, in part by increasing its fragility to shifts in market
sentiment.

The longer that remains the case, the more the weakness implied by
Turkey's very high reliance on external capital across all sectors
of the economy comes to dominate Moody's analysis; and the greater
the risk of further externally-sourced shocks involving further
capital outflows, loss of reserves, weakening in the exchange rate,
rises in inflation and severe damage to medium-term growth. As a
result, Moody's believes that the country's vulnerability to an
acute and highly disruptive balance of payment crisis that
ultimately would significantly constrain the capacity and perhaps
the willingness of the government to service its debt is now more
aligned to a single B rating, despite its still moderate debt
burden relative to similarly-rated peers.

Turkey is indeed once again facing intermittent currency crises
after a period of relative calm that lasted from late September
2018 through February 2019. In consequence, both gross and net
reserves have fallen since February, with the decline in net
reserves being particularly pronounced. Gross and net reserve
levels have been structurally weak for many years, but this decline
contributes to a significant increase in external vulnerability for
the country. In 2019, Moody's expects that short-term external debt
repayments, currently maturing long-term external debt, and total
non-resident deposits will total more than 2.6 times the level of
FX reserves. Moreover, funding costs have risen rapidly, with
yields up by around 400 basis points since February.

The fall in FX reserves seems contrary to the central bank's
longstanding policy to allow the exchange rate to float freely, and
raises further concerns about the transparency and independence of
the central bank and, by extension, Turkey's broader institutional
framework.

External pressures are exacerbated by the ongoing disagreement
between Turkey and the United States, this time relating to
Turkey's purchase of the S-400 missile system from Russia. The
sanctions which the US Congress will consider if the purchase goes
ahead, while largely undefined to date, cast a further shadow over
Turkey's economy and financial system.

RATIONALE FOR THE NEGATIVE OUTLOOK

The balance of risk is firmly tilted to the downside. The risk of
an acute balance of payments crisis remains relatively low in the
very near term, consistent for now with the highest rating level in
the single-B rating category. However, weakening external buffers
point to this being an unstable equilibrium, and the more time
passes the more the government's ability to steer the economy away
from a more credit-negative path of a balance of payments crisis is
diminished. This, in turn, increases the probability of more credit
negative outcomes involving the need for capital controls,
restrictions on access to foreign currency and (sanctions
permitting) external support.

There are a number of possible near-term drivers for further
instability. In Moody's view, the re-run of the Istanbul mayoral
election on June 23, 2019 creates potential for political unrest
that could trigger a further material decline in the value of the
lira and a further depletion of FX reserves. The imposition of
sanctions on Turkey could also lead to a further, highly credit
negative, market reaction. Moreover, depending on the sanctions
imposed, it could also raise doubts over Turkey's ability to access
an IMF program, should one be needed in the future to avoid an
escalation of a balance of payments and economic crisis. Even if
Moody's does not currently expect that to be needed, the potential
tension between sanctions and external support could in itself
further undermine investor confidence in the credit.

WHAT COULD CHANGE THE RATING DOWN/UP

Moody's would likely downgrade Turkey's rating if it were to become
clear that avoiding a more credit-negative path was becoming
increasingly unlikely, perhaps because of the currency crisis
deepening further. Any indication that capital controls were
becoming more likely or that Turkey's fiscal strength was
deteriorating in a significant way would be credit negative. A
material deterioration in relations with the US in the form of
sanctions would also put downward pressure on the rating due to the
implications that might have for receiving IMF assistance.

Given the negative outlook, upward rating movement is unlikely.
However, the rating could be stabilized if the authorities were
able to present and, crucially, implement a credible and
broad-based program for addressing external pressures and
engineering a re-balancing of the economy. Significant external
financial support, and the policy agenda that would likely
accompany it, would also be supportive for the rating.




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

LVIV CITY: Fitch Affirms B- Issuer Default Ratings, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed the Ukrainian City of Lviv's Long-Term
Foreign- and Local-Currency Issuer Default Ratings at 'B-'. The
Outlooks are Stable. Fitch has also assigned the city a National
Long-Term Rating of 'AA-(ukr)' with Stable Outlook.

The affirmation reflects Fitch's unchanged view that the city's
rating is constrained by the Ukraine sovereign rating (B-/Stable).
Fitch also assesses the city's Standalone Credit Profile (SCP) at
'bb-', based on the combination of Lviv's vulnerable risk profile
and debt sustainability assessment at 'aaa'.

The affirmation also reflects Fitch's expectations that the city's
sound operating results will be maintained over the medium term, as
well as sound debt metrics. This is despite the projected moderate
growth of the city's net adjusted debt following the implementation
of an ambitious capex programme by its municipal companies, which
is financed from debt incurred from international financial
institutions and guaranteed by the city.

Lviv is the biggest city in the west part of Ukraine with a
population of about 700,000. It is the capital of the
seventh-largest region, which contributed 4.8% to Ukraine's GDP in
2016 and 6% of the total population in 2017. Its economy is
diversified across manufacturing and services. Although Lviv's
economy is well-positioned among domestic peers, it significantly
lags international peers, with GRP per capita well below the EU
average.

KEY RATING DRIVERS

Revenue Robustness Assessed as Weaker

The city's revenue framework is unstable amid continuous shaping of
tax and budgetary regulation. Lviv's operating revenue is dominated
by taxes, which are all collected by the national tax office, and
represented over 50% in the last four years (57% in 2018).
Transfers from the central government accounted for about 30% of
the city's revenue. The city's operating margin has historically
been sound, at over 20% in 2015-2018. However, the ongoing
amendments to national fiscal regulations and the dependence on a
weak counterparty for a material portion of the city's revenue
drive the Weaker assessment of the robustness of Lviv's revenue
framework.

Revenue Adjustability Assessed as Weaker

We assess Lviv's ability to generate additional revenue in response
to possible economic downturns as limited, similar to other
Fitch-rated Ukrainian cities. Although the city has rate-setting
power over a number of local taxes, which accounted for 21% of the
city's operating revenue in 2018, the real ability to generate
additional revenue is limited. Any potential increase in local tax
rates is constrained by both legally set ceilings and the
relatively low income of the city's residents.

Expenditure Sustainability Assessed as Weaker

The spending dynamic during the last five years has been influenced
by high, albeit lowering, inflation and reallocation of spending
responsibilities. Currently, the city's main spending
responsibilities are in education and healthcare, which are of a
counter-cyclical nature. However, the city is only responsible for
the maintenance of schools and healthcare institutions while the
salaries of teachers and healthcare personnel are financed by
transfers from the national budget. Due to the overall structural
weakness of Ukraine a further transfer of some of these
responsibilities to the municipal level is probable as has been the
case with the recent transfer of certain social benefits. Therefore
the city's expenditure framework is characterised as fragile,
leading to a Weaker assessment of its sustainability.

Expenditure Adjustability Assessed as Weaker

Fitch assesses the city's ability to reduce spending in response to
shrinking revenue as weak, similar to other Fitch-rated Ukrainian
cities. This is evidenced by a material proportion of inflexible
items in the city's operating expenditure and overall low per
capita spending compared with international peers. Although the
city's capital expenditure averaged 25% of total spending in
2015-2018, it does not provide the city with much expenditure
flexibility in light of the city's high overall infrastructure
needs amid serious infrastructure underfinancing during a prolonged
period of time.

Liabilities and Liquidity Robustness Assessed as Weaker

Ukraine's framework for debt and liquidity management is weak. The
national capital market is underdeveloped, while the unfavourable
credit history of the sovereign, including Ukraine's default in
2015, exerts further downward pressure. The 2015 sovereign default
impaired Ukrainian local and regional governments' (LRG) access to
debt capital markets. This is why like many other national peers,
Lviv did not borrow from the market and maintained a debt-free
status in 2014-2017. Lviv resumed borrowing in 2018 following
Ukraine's return to the capital market. In June 2018, Lviv issued
bonds of UAH440 million with three-year maturity. Ukraine's key
policy rate was reduced to 17.5% at end-April 2019 from 18% set on
1 December 2018.

The city's administration supports investments in the city's
infrastructure through its municipal companies, which benefit from
the advantageous loans and non-returnable grants from the
international institutions like EBRD/EBI. The loans are taken by
the municipal companies but guaranteed by the city. Fitch has
included the guaranteed incurred debt of the municipal companies
into "Other Fitch classified debt" and thus in Lviv's adjusted debt
as many of those companies have been posting losses in recent years
and the city provides them with capital injections, including
amounts equal to the guaranteed debt coming due in a particular
year.

The total value of the guarantees issued by the city reached about
UAH5 billion at the end-2018, but the actual debt withdrawn by the
municipal companies was lower, at UAH1.2 billion (ie. 12% of the
city's operating revenue). Under Fitch's rating case Fitch expects
the latter to rise to UAH2 billion in 2020 and UAH3 billion in
2023, but the actuals may deviate from those assumptions, depending
on the pace of projects' implementation.

Liabilities and Liquidity Flexibility Assessed as Weaker

Similar to other Ukrainian cities, Lviv's available liquidity is
restricted to the city's own cash reserves. The city has no undrawn
committed credit lines. Potential liquidity providers are local
banks ('b-' rated counterparties) justifying a Weak assessment for
the liquidity profile. There are no emergency bail-out mechanisms
from the national government in place due to the fragile capacity
and hence weak public finance position of the sovereign, which is
dependent on IMF funding for the smooth repayment of its external
debt.

Debt Sustainability Assessment: 'aaa'

Under Fitch's rating case the city's debt payback ratio (net
adjusted risk-to-operating balance) - the primary metric of the
debt sustainability assessment - will remain sound and far below
five years over the rating horizon, which justifies the city's debt
sustainability assessment of 'aaa'. The secondary metric - fiscal
debt burden (net adjusted risk to operating revenue) - also
supports strong debt sustainability assessment, as well as the
actual debt service coverage ratio (ADSCR, operating balance/debt
service, including short-term debt maturities).

According to Fitch's rating case, the payback ratio will remain
strong over the projected period, gradually rising to about 3.8x in
2023 from about 0.7x in 2018. The fiscal debt burden will gradually
increase to about 50% in 2023 from 15% in 2018 following the
implementation of an ambitious capex programme by the city's
municipal companies. The ADSCR, which is currently very strong, may
weaken in years of expected debt repayment (planned bond redemption
of PLN440 million in 2020), but should remain sound, above 2x under
Fitch's rating case scenario.

RATING DERIVATION

The city's IDRs are capped by the Ukrainian sovereign IDRs. Lviv's
SCP is assessed at 'bb-', which reflects a combination of a
'Vulnerable' risk profile and the debt sustainability assessment of
'aaa'. The SCP also factors in national peer comparison. The IDRs
are not affected by any asymmetric risk or extraordinary support
from the central government.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for 2019-2023
include:

- Nominal growth of operating revenue close to expected inflation,
with income tax and single tax revenue rising well above inflation
and compensating the projected decline of current transfers from
the state budget;

- Nominal growth of operating expenditure by about 2pp. above
inflation;

- Capex exceeding 20% of the city's total expenditure, in line
with the four-year historical average.




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

FRONERI INTERNATIONAL: S&P Affirms 'B+' ICR Amid Tip Top Deal
-------------------------------------------------------------
S&P Global Ratings noted that shortly after reporting good 2018
results, Froneri announced the acquisition of Tip Top, a New
Zealand-based branded ice-cream player, for NZ$380 million. Froneri
will finance the acquisition via a EUR200 million add-on to its
euro-denominated term loan B and by drawing EUR28 million on its
revolving credit facility (RCF). Froneri also increased its RCF by
EUR120 million for general corporate purposes.

S&P recognizes the acquisition brings another strong brand into the
Froneri group and helps geographical diversification. However, the
incremental debt raised and the associated integration costs push
S&P's expectation of Froneri's adjusted debt to EBITDA to 6.5x in
financial year 2019 from 5.6x in 2018.

S&P is thus affirming its 'B+' rating on Froneri.

S&P's rating affirmation reflects Froneri's strong 2018 results,
with adjusted EBITDA margins reaching 15% in 2018, and positive
FOCF of about EUR60 million after restructuring costs. The 3.6%
revenue growth was mostly volume-driven, especially thanks to the
group's "A-brands" (Extreme, Drumstick, Mondelez, and Kids brands),
which now represent about 30% of the group's overall revenues. The
group's strategy to introduce A-brands to new geographies, support
local brands, and generate volumes from private labels is helping
Froneri to affirm its strong position as one of the leading ice
cream players globally.

Froneri was formed in 2016 from the integration of the ice cream
businesses of R&R and Nestle in a joint venture. The process of
integration is still underway. In 2018, Froneri incurred about
EUR131 million of restructuring costs, which S&P considers about
two-thirds still related to the merger process, mostly linked to
factory closures. The group integrated a significant part of the IT
systems, and only a few TSAs (transition service agreements) are
left, after almost three years of integration. However, S&P
understands that more restructuring remains.

S&P considers that the acquisition of Tip Top is positive for the
group's business position, as it increases the group's geographic
diversity to the Southern Hemisphere, marginally lowering the
intrayear seasonality of the ice cream business. Tip Top is a
leading branded ice cream player in New Zealand, with potential for
Froneri to develop the brand's offering by "premiumizing" the
existing product range, and to leverage its position to increase
its presence in Asian markets.

S&P said, "We understand that Froneri will continue to focus on
growing externally to strengthen its position as one of the two
leading global ice cream players, alongside Unilever. At the same
time, it is still engaging in restructuring and reorganization
programs. After a strong improvement in adjusted debt to EBITDA in
2018 to 5.6x, down from 7.4x in 2017, we forecast that the group
will report adjusted debt to EBITDA of about 6.5x in 2019. We
believe adjusted debt to EBITDA will stay between 6x-7x in the next
12 months, as we anticipate potential further drawing down on the
RCF to finance acquisitions and restructuring costs. We will now
for the most part include such costs in our measure of adjusted
EBITDA considering their ongoing nature.

"Our positive outlook reflects our view that even though the group
may engage in further debt-financed mergers or acquisitions in the
coming years, it will benefit from the previous years' cost
efficiency programs, which may lead to higher underlying EBITDA
margins, strong FOCF generation after restructuring costs, and
deleveraging closer to 6x.

"In 2018, our adjusted EBITDA of EUR391 million included about
EUR44 million of restructuring costs. We excluded about two-thirds
of the EUR131 million incurred restructuring costs, as we
considered that they were linked to the transformative merger. Our
adjusted debt of EUR2,189 million included the reported debt of
EUR1,735 million, as well as half of the EUR1,097 million
shareholder loan that we treat as debt and the EUR49 million
preference shares that we treat as debt. We deducted about EUR285
million of available cash from our gross debt calculation. The
group generated EUR60 million FOCF after restructuring costs.

"We continue to assess Froneri as being of moderately strategic
importance to Nestle. This reflects our view that Nestle is
unlikely to sell Froneri and remains strategically committed to ice
cream products, and that Froneri is likely to be operationally
successful. We also consider that Froneri could receive some
extraordinary support from Nestle should it fall into financial
difficulty. Our rating therefore incorporates one notch for
extraordinary credit support above its 'b' stand-alone credit
profile (SACP).

"The positive outlook indicates that we could upgrade Froneri in
the next 12 months if it continues to improve its adjusted EBITDA
margin to the higher end of 14%-16%, generate positive FOCF after
restructuring costs, and if adjusted debt to EBITDA moved to the
lower end of the forecast 6x-7x range. This would most likely
result from the benefit of faster accrual of benefits from cost
efficiency initiatives and meaningful cash contribution from
acquisitions. In addition, the group would have to continue to
perform well organically, especially thanks to strong contribution
from its branded business, supporting long-term profitability
margin.

"We could revise the outlook to stable or lower the rating if the
group's adjusted debt to EBITDA remained close to 7x or higher.
This could be due to a significant setback in the integration
process, or to an increase in competition leading to loss of market
shares, with adjusted EBITDA margin shrinking and cash generation
turning significantly negative as a result. This could also be the
result of the group engaging in further debt-funded acquisitions."


HUTCHINSON NETWORKS: PlanNet21 Communications Acquires Business
---------------------------------------------------------------
Hannah Burley at The Scotsman reports that Hutchinson Networks, the
Edinburgh-based tech firm that last month went bust with the loss
of almost 100 jobs, has been sold to an overseas buyer.

According to The Scotsman, in a deal which could safeguard up to 13
staff, the Scottish business has been acquired by Irish tech group
PlanNet21 Communications.

Hutchinson fell into administration on May 13 after failing to
raise additional investment and implement cost control measures,
The Scotsman relates.

Administrators at KPMG said that at the time that they had "no
other option" than to make 94 staff redundant, The Scotsman notes.
The business retained 13 employees to provide a range of limited
services to customers while KPMG explored a sale of the business
and its assets, The Scotsman discloses.


INDIGO CLEANCO: Moody's Withdraws B1 CFR Due to Insufficient Info
-----------------------------------------------------------------
Moody's Investors Service has withdrawn the B1 Corporate Family
Rating and the B2-PD Probability Default Rating of Indigo Cleanco
Limited, due to insufficient information. This follows the
company's announcement of the refinancing of its debt facilities.

Moody's has also withdrawn the B1 ratings of the senior secured
term loan B due 2021, the senior secured acquisition facility due
2020 and the senior secured revolving credit facility due 2020, all
issued by Indigo Bidco Limited, due to insufficient information.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings because it believes it
has insufficient or otherwise inadequate information to support the
maintenance of the ratings.


JAMIE'S ITALIAN: SSP Group Acquires Remaining UK Restaurants
------------------------------------------------------------
Henry Saker-Clark at Press Association reports that Jamie Oliver's
last remaining UK restaurants have been saved from closure, after
being snapped up by food-to-go specialist SSP Group.

According to Press Association, the three outlets at Gatwick
Airport -- Jamie Oliver's Diner, Jamie's Italian and Jamie's Coffee
Lounge -- have been bought out of administration by the owner of
Upper Crust and Ritazza.

The rescue deal, which has saved 250 jobs, comes three weeks after
administrators closed the other 22 of the celebrity chef's 25
restaurants, Press Association notes.

Insolvency specialists at KPMG closed the restaurants, leading to
around 1,000 redundancies, after investment could not be secured to
keep them trading, Press Association relates.

The celebrity chef, as cited by Press Association, said he was
"devastated" by the collapse of his restaurant business, which
included Jamie's Italian, Barbecoa and Fifteen.

Mr. Oliver offered GBP4 million to support a last-minute search for
funds to save the chain, but with "no investment forthcoming" and
in light of difficult trading conditions, administrators were
drafted in, Press Association recounts.

KPMG has now confirmed that SSP has agreed to take over operations
at the remaining Gatwick sites, with staff transferring to the
travel food specialists, Press Association relays.

The acquired restaurants will add to the portfolio of 12
international Jamie Oliver restaurants the company currently
operates -- in Austria, Finland, France, the Netherlands, Norway
and Spain, Press Association states.


NIGEL FREDERICKS: Financial Difficulties Prompt Administration
--------------------------------------------------------------
Business Sale reports that financial difficulties at the Nigel
Fredericks Trading Limited, a London-based meat and poultry
distribution facility founded in 1890, have forced the company into
administration.

Located in Colindale, North London, with distribution operations
run from Mansfield, the company was forced to cease its trading
operations and close its doors, Business Sale relates.  It
appointed professional advisory firm and business recovery
specialists Dow Schofield Watts to handle the administration
process, with partners Lisa Moxon and Ben Barratt appointed as
joint administrators, Business Sale discloses.

The company previously fell into administration in September 2018
but was immediately bought out by independent shareholders and
directors, Business Sale recounts.

However, the business ran into cash flow difficulties again due to
rising costs and a drop in credit insurance, forcing it to appoint
administrators, Business Sale relays.  Brexit was also cited as one
of the reasons for a decline in trade, and therefore financial
issues, Business Sale notes.

The company's assets, which include a range of new meat-processing
equipment, will be auctioned off in due course, Business Sale
states.


SNAP TRAVEL: Suspends Operations Due to Lack of Funding
-------------------------------------------------------
Oliver Gill at The Telegraph reports that an app that allows the
public to travel on luxury coaches made for Premier League
footballers has suspended operations after running low on cash.

According to The Telegraph, Snap Travel Technology, dubbed the
"Uber for coaches", has written to customers telling them that it
has "been unable to secure funding to continue to run and expand
the business".

Launched in 2016, Snap connects unused luxury coaches with
travellers looking for lower fares during peak hours.  It has
raised more than GBP6 million to date, GBP2 million from venture
capitalist ADV, The Telegraph discloses.

Founder Thomas Ableman remained confident that Snap could be
revived in September, which is traditionally a busy month as
students return to university, The Telegraph notes.



TESCO PLC: S&P Alters Outlook to Positive & Affirms 'BB+/B' ICRs
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Tesco plc to positive
from stable and affirmed its 'BB+' long- and 'B' short-term issuer
credit ratings.

Three consecutive half-year reporting periods of like-for-like
(LFL) sales growth, and a reported operating margin increasingly
over 2.5%, show that the improvement in the group's operating
performance is sustainable.

S&P's positive outlook indicates that the group is poised to
benefit from steady growth in retail earnings over the next
two-to-three years, and that its stronger profitability margins are
sustainable. The expansion of its range of own label products
(Exclusively at Tesco) and the success of Tesco's Jack's discount
chain in the U.K. should support the group's ability to attract
value-oriented customers and defend its position against the
discounters--the fastest-growing segment of the market in recent
years.

The group's leading position in the U.K. online grocery market and
its omnichannel model foster customer loyalty and e-commerce
efficiency. Tesco's exit from loss-making operations (the Tesco
Direct closure being the most recent), the rollout of its private
label products in international markets, and realization of GBP120
million in remaining synergies with Booker will support
profitability. That said, S&P anticipates that Tesco's share of the
U.K. market will continue the slow decline observed in recent
years, unrelenting competition will persist, and overall trading
conditions will stay challenging.

Tesco's focus on cash generation is fueling further growth in free
operating cash flows (FOCF), and clear financial policy targets
will support expected deleveraging. S&P said, "In FY2019, Tesco
exceeded our forecast for adjusted EBITDA by GBP500 million. It
posted EBITDA of GBP4.4 billion with a 7% margin largely reflecting
higher purchasing efficiency and cost savings than we anticipated
as well as profitability-driven product-mix management. Its track
record of generating robust retail free cash flows should continue
in medium term. For example, the group intends to keep tight
control of capital expenditure (capex); the one-off factors that
affected working capital in FY2019 will subside; and its interest
burden will lessen because of its lower overall financial debt and
the lower average interest rate following several bond repurchasing
transactions. Therefore, we forecast that Tesco will post adjusted
FFO of GBP3.5 billion-GBP3.7 billion annually over FY2020-FY2022
compared with GBP3.3 billion in FY2019. Furthermore, the group's
reported lease-adjusted leverage and coverage metrics--communicated
under its financial policies--will temper excessive shareholder
remuneration other than ordinary dividends. This will support
positive discretionary cash flow (DCF), which could be used for
debt reduction. As such, we anticipate that the credit metrics
posted in FY2019 will improve over the next three years."

Hefty operating lease costs and long-term commitments will continue
to hold back faster deleveraging, further exacerbated by rapid
growth in dividend payments. Tesco has sizable debt on a lease- and
pension-adjusted basis. Adjusted debt of GBP13.9 billion as of Feb.
23, 2019 comprised an operating lease adjustment of GBP7.0 billion
and a GBP2.3 billion adjustment for pension and post-retirement
obligations. According to Tesco's guidance on the effect of the new
lease accounting standard IFRS 16, if it were applied in FY2019
(lease-adjusted basis), its S&P Global Ratings-adjusted debt would
have been GBP17.3 billion as of the same date. As such, in FY2019
adjusted FFO to debt was 23.9% as reported, declining to 18.8% on a
pro forma lease-adjusted basis. S&P said, "As IFRS 16 will be
applied in reported accounts from FY2020, we calculate all our
credit metrics on a lease-adjusted basis. We forecast that by
FY2022 Tesco will see its adjusted FFO to debt increase to 20%-22%.
As the group pursues a policy of 2x dividend cover, we forecast
that dividend payments will rise to GBP700 million-GBP800 million
in FY2020 and to GBP1.0 billion-GBP1.2 billion in FY2021 from the
GBP357 million paid in FY2019." Alongside higher volatility of
working capital related to Brexit uncertainty, this could prolong
the time it takes Tesco to reach this FFO to debt ratio or preclude
it from gaining further headroom.

S&P said, "The positive outlook reflects our expectation that, over
the next 12 months, Tesco's management will continue to
successfully mitigate the competitive pressure on its revenue
growth and margins, and progress its operational and strategic
initiatives. As a result, growth in its earnings and cash flows
will offset the effects of higher dividends and of a GBP3.3 billion
increase in adjusted debt attributable to operating lease
commitments. We anticipate that management will stand by its
financial policies aimed at maintaining lease-adjusted reported
debt to EBITDA of less than 3x, and a fixed-charge ratio of more
than 3x.

"We could raise the ratings on Tesco if the group continues to
strengthen its adjusted credit metrics sustainably. We consider
adjusted FFO to debt of more than 20% and adjusted DCF to debt of
more than 5% as commensurate with a higher rating. Tesco's
commitment to generating meaningful discretionary cash flow (DCF)
sufficient to enable debt reduction would be a prerequisite for an
upgrade.

"We could revise the outlook to stable if market conditions were to
soften beyond our expectations, if numerous competitors were to
increasingly gain market share from Tesco, or if the group raised
shareholder remuneration more rapidly than it generated free cash
flows. This would preclude sustainable deleveraging such that FFO
to debt stayed lower than 20% on a lease-adjusted basis, adjusted
DCF to debt fell to less than 5%, or reported DCF trended to
neutral."


TWIN BRIDGES 2017-1: Fitch Hikes Class X2 Notes to 'BB+sf'
----------------------------------------------------------
Fitch Ratings has upgraded three classes in each of Twin Bridges
2017-1's (TB 17-1) and Twin Bridges 2018-1's (TB 18-1) notes.

The transactions are secured by residential mortgages originated
and serviced by Paratus AMC Limited (Paratus), an experienced
mortgage servicer that started originating buy-to-let mortgages in
2015. The loans are exclusively buy-to-let (BTL) and secured
against properties located in England and Wales.

KEY RATING DRIVERS

Lender Adjustment Reduced

A lender adjustment of 1.15x has been applied to the frequency of
foreclosure (FF) for all loans. This is reduced from the levels
applied previously for these transactions. The reduction was based
on an updated assessment of Paratus' lending policy and
underwriting standards, and in particular comparison with peers.
This change is a key factor leading to the upgrades in both
transactions.

Increasing Credit Enhancement

Credit enhancement has continued to increase for TB 17-1 due to
sequential amortisation of the notes alongside a non-amortising
reserve fund. The increased credit enhancement has also contributed
to the upgrades of the notes. Credit enhancement for TB 18-1,
however, has only marginally increased since closing.

Payment Interruption Risk (PIR)

The class C and D notes in each transaction only have access to the
general reserve fund for liquidity purposes. The general reserve
fund may be depleted to cover losses and therefore not be available
to cover PIR, subject to the rating scenario. Consequently the
ratings of the class C notes in TB 17-1 and of the class C and D
notes in TB 18-1 are presently constrained at their current levels.
These notes were affirmed given that there is no expectation of a
depletion of the reserves over the short- to medium-term. In
contrast, cash flow modelling suggests that the reserve fund should
remain funded and available to cover PIR for the class D notes of
TB 17-1 up to the assigned rating for these notes, resulting in the
upgrade. The class A and B notes benefit from a specific liquidity
reserve fund mechanism.

Excess Spread Notes Redemption

The significant level to which excess spread notes have been
redeemed in each transaction to this point leaves less balance
outstanding on each of these notes to be paid through excess
spread. Given this and the strong performance of the transactions,
the chance of these notes defaulting has decreased. This has in
turn contributed to the upgrade of the class X2 notes in TB 17-1
and class X1 and X2 notes in TB 18-1.

Excess Spread Notes Constrained

Excess spread is used to make payments of interest and principal on
the class X2 notes in TB 17-1 and X1 and X2 notes in TB 18-1. The
repayment of these notes is reliant on the availability and timing
of excess spread, which is highly dependent on asset performance.
Due to the high volatility and sensitivity to stress scenarios
(especially to prepayment rates), Fitch has constrained the class X
notes at 'BB+sf'.

RATING SENSITIVITIES

Adverse macroeconomic conditions could result in high unemployment
or a decline in property values, which may compress rental yields.
This would impact a BTL transaction such as this through reduced
excess spread and potential losses, leading to negative rating
actions.

The transactions feature a significant proportion of interest-only
loans, with a concentration between 2040 and 2042 for TB 17-1 and
2041 and 2043 for TB 18-1. In the event that borrowers are unable
to refinance these loans at maturity, increased foreclosures may
result, with the potential for losses to be incurred by the
transaction.

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

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

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. There were no findings that affected
the rating analysis Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Prior to the transactions' closing, Fitch reviewed the results of a
third-party assessment conducted on the asset portfolio information
and concluded that there were no findings that affected the rating
analysis.

Prior to the transactions' closing, Fitch conducted a review of a
small targeted sample of Paratus' origination files and found the
information contained in the reviewed files to be adequately
consistent with the originator's policies and practices and the
other information provided to the agency about the asset
portfolio.

Overall and together with the assumptions, Fitch's assessment of
the information relied upon for the agency's rating analysis
according to its applicable rating methodologies indicates that it
is adequately reliable.

Twin Bridges 2017-1
   
Class A (XS1622306972); LT AAAsf Affirmed; previously AAAsf

Class B (XS1622307947); LT AAAsf Upgrade; previously AA+sf

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UNIVERSITY OF WALES: Cash Issues Raise Going Concern Doubt
----------------------------------------------------------
Bethan Lewis at BBC News reports that University of Wales Trinity
Saint David is facing financial uncertainty that could cast
"significant doubt" over future operations.

According to BBC, the University's latest accounts show that it
might not have enough cash to continue as a going concern if some
key sources of income did not materialize.

UWTSD, as cited by BBC, said the risk was remote and it had acted
to secure its "resilience".

It confirmed it was looking at 110 possible job cuts and had nearly
completed a process to save GBP6.5 million, BBC discloses.

The university has received 94 applications for voluntary
redundancy and made 16 compulsory redundancies, but said it was
working with staff and unions to reduce the need for the latter,
according to BBC.

UWTSD is based across three locations in west Wales -- Lampeter,
Carmarthen and Swansea -- and employs 1,500 people.  It had more
than 10,000 students in 2017-18.

Its latest accounts showed a GBP30 million HSBC bank loan, for its
development on Swansea's waterfront, had to be rearranged because
it breached one of the conditions, BBC relays.

They warned there was uncertainty over four expected sources of
income -- if a combination of them do not materialize, it could
give rise to a "material uncertainty" over whether the university
will have enough cash, BBC recounts.

A UWTSD spokeswoman said there was no "significant doubt" and the
university was "responding to a risk", BBC notes.


WOODFORD EQUITY: Hargreaves Lansdown Earns GBP40MM+ Client Fees
---------------------------------------------------------------
Harriet Russell at The Telegraph reports that Hargreaves Lansdown
earned more than GBP40 million in client fees on the now-suspended
Woodford Equity Income Fund since its launch in 2014, with more
than GBP20 million generated in the last two years despite the
fund's increasingly poor performance.  

Responding to a letter from Treasury select committee chair Nicky
Morgan, Hargreaves Lansdown said platform fees on client
investments in Neil Woodford's flagship fund had totalled GBP41.1
million to the end of April, The Telegraph relates.

Hargreaves charges a flat 0.45% fee on all fund investments,
regardless of the type of fund or its manager, The Telegraph
discloses.

As reported by the Troubled Company Reporter-Europe on June 5,
2019, The Telegraph related that trading of Neil Woodford's
flagship Equity Income fund has been suspended "with immediate
effect and until further notice" due to high levels of withdrawals
from investors.  According to The Telegraph, the GBP3.7 billion
fund has suffered heavy outflows since its assets peaked at GBP10.2
billion in June 2017 -- with GBP560 million pulled out of the fund
in the last month alone.  It has been among the worst performing
income funds since it peaked in 2017 and for investors that bought
at the launch positive returns made at the start have been all-but
wiped out, The Telegraph noted.



                           *********


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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

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delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
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