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

                          E U R O P E

          Friday, August 16, 2019, Vol. 20, No. 164

                           Headlines



C Z E C H   R E P U B L I C

[*] CZECH REPUBLIC: Czechia Business Liquidations Hit Record High


G E R M A N Y

THYSSENKRUPP AG: Moody's Cuts CFR to Ba3, Alters Outlook to Stable


I R E L A N D

AURIUM CLO I: S&P Assigns Prelim B- (sf) Rating to Class F-R Notes
CLAVIS SECURITIES 2007-1: S&P Affirms Class B2A Notes Rating to B-


I T A L Y

SESTANTE FINANCE 2: S&P Raises Class C2 Notes Rating to B (sf)


L U X E M B O U R G

KIWI VFS: S&P Alters Outlook to Positive & Affirms 'B' Rating
LECTA SA: Moody's Lowers CFR to B3; Put Under Review for Downgrade
LECTA SA: S&P Cuts Sr. Sec. Notes Rating to 'CCC', Outlook Neg.


N E T H E R L A N D S

EURO-GALAXY V: Moody's Gives B3 Rating on EUR12.3MM Cl. F-R Notes
JUBILEE CLO 2014-XIV: Moody's Affirms Class F Notes Rating to 'B2'
STEINHOFF INTERNATIONAL: Mulls Further Retail-Asset Disposals
[*] NETHERLANDS: Number of Bankruptcies Hardly Changed in July 2019


P O R T U G A L

SATA AIR: Moody's Affirms Ba1 Notes Rating, Alters Outlook to Pos.


R U S S I A

XALQ BANK: Fitch Assigns BB- Issuer Default Rating, Outlook Stable


U N I T E D   K I N G D O M

BRITISH STEEL: Ataer Holding Selected as Preferred Bidder
BURY FC: EFL Suspends August 20 Game Against Rotherham
CO-OPERATIVE BANK: Moody's Puts Caa1 Issuer Ratings, Outlook Pos.
EG GROUP: Moody's Affirms B2 CFR, Outlook Stable
FINSBURY SQUARE 2017-1: Moody's Affirms Class D Notes Rating at Ba2

H2O NETWORKS: Founder Reports Deloitte to Regulators
LIBERTY GLOBAL: S&P Affirms BB- ICR on Asset Sale; Outlook Stable
MIZZEN MIDCO: Moody's Affirms B1 CFR, Outlook Stable
NEWGATE FUNDING 2006-1: S&P Raises Class E Notes Rating to B+(sf)
PERFORM GROUP: Moody's Withdraws B2 CFR due to Debt Repayment

PIONEER HOLDING: S&P Puts 'B-' ICR on Watch Pos. Over Wesco Merger


X X X X X X X X

[*] BOOK REVIEW: THE SUCCESSFUL PRACTICE OF LAW

                           - - - - -


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C Z E C H   R E P U B L I C
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[*] CZECH REPUBLIC: Czechia Business Liquidations Hit Record High
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CTK reports that data of consultancy Bisnode have shown businesses
liquidated in Czechia between 2010 and this June total 53,503, with
last year seeing a record number of 10,198 liquidated entities.

Dissolving a company through liquidation is one of the legal means
of winding up operations.  As a result, the firm is removed from
the Register of Companies.

"At present, 40,583 firms are in liquidation, of which 28,804 (71%)
entered into it between 2010 and 2019," CTK quotes Bisnode analyst
Petra Stepanova as saying.

She said compared to company formation, the liquidation process is
difficult, costly and lengthy, CTK notes.

An average liquidation process took more than 33 months to complete
between 2010 and 2019, CTK states.  However, some companies have
been impossible to liquidate in compliance with the law for
decades, CTK discloses.

According to CTK, Ms. Stepanova said Bisnode records nine
liquidation procedures that started in 1991.

"It generally takes between six to nine months for a professional
firm to complete a simple liquidation of a problem-free company,"
CTK quotes Michael Dobrovolny, manager at Smart Office & Companies,
a unit of Apogeo group specializing in the liquidation of firms, as
saying.



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G E R M A N Y
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THYSSENKRUPP AG: Moody's Cuts CFR to Ba3, Alters Outlook to Stable
------------------------------------------------------------------
Moody's Investors Service downgraded to Ba3 from Ba2 the corporate
family rating and to Ba3-PD from Ba2-PD the probability of default
rating of German steel and diversified industrial company
thyssenkrupp AG. Concurrently, Moody's has downgraded to Ba3 from
Ba2 the ratings on the group's senior unsecured debt instruments,
including the downgrade to (P)Ba3 from (P)Ba2 of the ratings on the
debt issuance programme. Moody's has further affirmed the
short-term ratings of tk at NP/(P)NP. The outlook on all ratings
has been changed to stable from rating under review.

This rating action concludes the review for downgrade, which
Moody's initiated on May 14, 2019.

RATINGS RATIONALE

The downgrade to Ba3 follows tk's weak results for the third fiscal
quarter ended June 30, 2019 (Q3-18/19), which led to a further
deterioration in its Moody's-adjusted leverage and free cash flow
metrics. The rating agency also believes that it will take longer
than previously anticipated for tk to improve its profitability and
negative free cash flow generation in light of an increasingly
challenging economic environment. Particularly sluggish demand from
the automotive industry negatively impacted profitability in the
group's Components Technology (CT), Materials Services (MX) and the
re-integrated Steel Europe (SE) business areas. Margins in SE were
additionally burdened by a surge in raw material costs, especially
for iron ore, which reached a multi-year high in June due to supply
shortages. Although the Elevator Technology (ET) business recorded
higher sales and better margins in Q3-18/19, and losses in the
Industrial Solutions (IS) and Marine Systems (MS) divisions could
be significantly reduced, this was insufficient to offset the
material profit decline in the other businesses.

Tk's company-adjusted EBIT therefore dropped to EUR683 million
(2.2% margin) in the three quarters ended June 2019, from almost
EUR1.3 billion (4.1%) in the prior year, which also significantly
weighed on its cash flow generation. Reported free cash flow (FCF)
before M&A in the nine months ended June 2019, although slightly
improved yoy in Q3-18/19, was a EUR2.5 billion cash drain, leading
to an increase in its net financial debt to EUR5.1 billion from
EUR2.4 billion at fiscal year-end September 2018. Reflecting the
ongoing underperformance and increasingly fragile business
conditions, the group also lowered its adjusted EBIT and FCF before
M&A guidance for the current fiscal year to around EUR800 million
(from EUR1.1-1.2 billion before) and over EUR1 billion negative,
respectively.

Due to the profit deterioration and higher indebtedness, tk's
leverage on a Moody's-adjusted basis increased to over 8x
debt/EBITDA for the 12 months ended June 2019, clearly above the
previous maximum guidance of 5.5x for a Ba2 rating. Moody's
adjustments to tk's debt include its increased defined benefit
obligations after the re-consolidation of SE (around EUR7 billion
adjusted after Moody's current equity credit valuation), operating
leases and factored receivables. Likewise, on a net debt basis,
tk's Moody's-adjusted leverage was around 7x compared to below 4x
historically.

In light of the deteriorated macro environment and heightened
geopolitical risks such as global trade conflicts or a potential
no-deal Brexit, Moody's expects that business conditions in the
next 12-18 months will remain difficult for tk. In addition,
predictability is constrained by a currently challenging steel
industry in Europe, which faces slowing demand, squeezed steel
spreads and increased third country imports.

Although currently weakly positioned in the Ba3 rating category,
Moody's recognizes the group's confirmed strategy to improve the
underlying performance of its businesses and a partial IPO of its
ET business, for which it has received support from its supervisory
board and main shareholders. Potential material cash proceeds from
such IPO, which still carries execution risks in Moody's view,
could help bolster tk's liquidity and support its extensive
restructuring plans and future de-leveraging. However, the group
would also have to share ET's healthy profit and cash flow
generation with minority shareholders after an IPO, resulting in an
increased dependence on its remaining more volatile, lower margin
and currently mostly cash burning businesses.

LIQUIDITY

Tk's liquidity is adequate. The group had EUR2.8 billion of cash on
the balance sheet and EUR3.6 billion of available committed bank
facilities at the end of June 2019. This is sufficient to
accommodate projected negative Moody's-adjusted free cash flow in
the low to mid three million area and debt maturities of around
EUR3.2 billion over the next 12-18 months.

Moody's also expects tk to comply with its gearing maintenance
covenant with a current 200% maximum level, which needs to be
tested at September-end each year. While the ratio was 205% as of
June 2019, projected strong seasonal cash flow generation in the
fourth financial quarter should enable the group to be in
compliance by September 30, 2019.

OUTLOOK

The stable outlook assumes that tk will retain a healthy liquidity
profile and be able to gradually strengthen the profitability
across all business areas and return to positive free cash flows by
2020/21. The outlook also reflects Moody's expectation of tk to
successfully execute its new strategy, including the proposed IPO
of ET, and use related cash proceeds primarily for debt reduction.

WHAT COULD CHANGE THE RATING UP / DOWN

Tk's rating could be downgraded, if (1) market conditions continued
to deteriorate and further pressure tk's already very weak
profitability, (2) leverage remained well above 6x debt/EBITDA, (3)
negative free cash flow could not be materially improved to
positive territory by 2020/21; all on a Moody's-adjusted and
sustainable basis. Downward pressure would also build, if tk's new
strategy, including a partial IPO of ET, could not be executed
successfully and in a timely manner.

Moody's would consider an upgrade, if tk's (1) profitability
significantly improved with EBIT margins exceeding 3%, (2) leverage
reduces to below 5.5x debt/EBITDA, (3) free cash flow turned
positive; all on a Moody's-adjusted and sustainable basis.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Germany based thyssenkrupp AG is a diversified industrial
conglomerate operating in about 79 countries. For the 12 months
ended June 2019, tk reported revenue of EUR41.9 billion and
company-adjusted EBIT of EUR853 million. The group is engaged in
capital goods manufacturing through Elevator Technology (ET),
Industrial Solutions (IS) and Components Technology (CT) divisions,
as well as steel manufacturing and steel related services through
Steel Europe (SE) and Materials Services (MX).



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I R E L A N D
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AURIUM CLO I: S&P Assigns Prelim B- (sf) Rating to Class F-R Notes
------------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
Aurium CLO I DAC's class A-R-R, B-R-R, C-R-R, D-R-R, E-R, and F-R
notes. At closing, the issuer will also issue unrated subordinated
notes.

The transaction is a reset of an existing transaction, which closed
in 2015 and refinanced in 2017.

The proceeds from the issuance of these notes will be used to
redeem the existing rated notes. In addition to the redemption of
the existing notes, the issuer will use the remaining funds to
purchase additional collateral and to cover fees and expenses
incurred in connection with the reset. The portfolio's reinvestment
period will end approximately 4.5 years after the reset closing,
with the portfolio's maximum average maturity date 8.5 years after
the reset closing.

The preliminary ratings assigned to the notes reflect S&P's
assessment of:

-- The diversified collateral pool, which consists primarily of
broadly syndicated speculative-grade senior secured term loans and
bonds that are governed by collateral quality tests.

-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.

-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.

  Portfolio Benchmarks
  Current
  S&P weighted-average rating factor     2,543
  Default rate dispersion (%)            6.82
  Weighted-average life (years)          5.15
  Obligor diversity measure              119.23
  Industry diversity measure              21.03
  Regional diversity measure               1.50

  Transaction Key Metrics
  Current
  Total par amount (mil. EUR)            400
  Defaulted assets (mil. EUR)             0
  Number of performing obligors          154
  Portfolio weighted-average rating
    derived from our CDO evaluator        'B'
  'CCC' category rated assets (%)         1.59
  'AAA' weighted-average recovery
   calculated on the performing assets(%) 37.55
  Covenanted weighted-average spread (%) 3.75
  Covenanted weighted-average coupon (%) 4.75

S&P said, "We expect that the transaction's documented counterparty
replacement and remedy mechanisms will adequately mitigate its
exposure to counterparty risk under our current counterparty
criteria.

"Following the application of our structured finance sovereign risk
criteria, we consider the transaction's exposure to country risk to
be limited at the assigned preliminary ratings, as the exposure to
individual sovereigns does not exceed the diversification
thresholds outlined in our criteria.

"At closing, we consider that the transaction's legal structure
will be bankruptcy remote, in line with our legal criteria.

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe that our preliminary
ratings are commensurate with the available credit enhancement for
the class A-R-R, B-R-R, C-R-R, D-R-R, E-R, and F-R notes."

Aurium CLO I is a cash flow collateralized loan obligation (CLO)
transaction securitizing a portfolio of primarily senior secured
loans and bonds granted to speculative-grade European corporates.
Spire Partners LLP manages the transaction.

  Ratings List
  
  Aurium CLO I DAC

  Class  Prelim. rating  Prelim. amount (mil. EUR)
  A-R-R   AAA (sf)         249.00
  B-R-R   AA (sf)           41.00
  C-R-R   A (sf)                24.00
  D-R-R   BBB- (sf)             26.00
  E-R    BB- (sf)             22.00
  F-R    B- (sf)              12.00
  Sub notes NR                  42.00

  NR--Not rated.


CLAVIS SECURITIES 2007-1: S&P Affirms Class B2A Notes Rating to B-
------------------------------------------------------------------
S&P Global Ratings raised its credit ratings on Clavis Securities
PLC's series 2007-1 class A3a, A3b, Aza, M1a, M1b, M2a, M2b, B1a,
and B1b notes. At the same time, S&P affirmed its ratings on the
class B2a notes.

S&P said, "The rating actions follow the implementation of our
counterparty criteria and assumptions for assessing pools of
residential loans. They also reflect our full analysis of the most
recent transaction information that we have received and the
transaction's current structural features.

"Upon revising our structured finance counterparty criteria, we
placed our ratings on all classes of notes from this transaction
under criteria observation. Following our review of the
transaction's performance, the application of our structured
finance counterparty criteria, and our updated assumptions for
rating U.K. residential mortgage-backed securities (RMBS)
transactions, our ratings on these notes are no longer under
criteria observation.

"Our ratings on this transaction's notes are capped at our
resolution counterparty rating (RCR) on the swap provider, NatWest
Markets PLC ('A'). Under our revised criteria, our collateral
assessment is weak, and considering the downgrade language in the
swap documents and the current resolution counterparty rating (RCR)
on NatWest Markets, the maximum supported rating on the notes is 'A
(sf)'.

"After applying our updated U.K. RMBS criteria, the overall effect
in our credit analysis results in a decrease in the
weighted-average foreclosure frequency (WAFF). This is mainly due
to the loan-to-value (LTV) ratio we used for our foreclosure
frequency analysis, which now reflects 80% of the original LTV
ratio and 20% of the current LTV ratio. Additionally, we no longer
apply the interest-only adjustment to buy-to-let loans. Our
weighted-average loss severity (WALS) assumptions have decreased at
all rating levels due to the revised jumbo valuation thresholds and
the lower current LTV ratio."

  WAFF And WALS Levels
  Rating level WAFF (%) WALS (%)
  AAA         28.46    41.44
  AA          23.11    33.51
  A             20.06    20.54
  BBB         16.59    13.09
  BB            12.97    8.86
  B             12.07    5.74

S&P said, "We have determined that our assigned ratings on the
classes of notes should be the lower of (i) the rating as capped by
our counterparty criteria; and (ii) the rating that the class of
notes can attain under our U.K. RMBS criteria. We have therefore
raised our ratings on the class A3a, A3b, Aza, M1a, M1b, M2a, M2b,
B1a, and B1b notes.

"We have also affirmed our rating on the class B2a notes at 'B-
(sf)'. In our cash flow analysis, this class failed our 'B' rating
level cash flow stresses in a number of our cash flow scenarios, in
particular when we modeled high prepayments and back-loaded
defaults. Therefore, we applied our 'CCC' ratings criteria to
assess if either a 'B-' rating or a rating in the 'CCC' category
would be appropriate. We performed a qualitative assessment of the
key variables, together with an analysis of performance and market
data, and we do not consider repayment of this class of notes to be
dependent upon favorable business, financial, and economic
conditions. Furthermore, the increased credit enhancement and lower
credit coverage assumptions have resulted in improved cash flow
results since our last review. We therefore believe that this class
of notes will be able to pay timely interest and ultimate principal
in a steady-state scenario commensurate with a 'B-' stress in
accordance with our 'CCC' ratings criteria."

Clavis Securities PLC Series 2007-1 is a U.K. nonconforming RMBS
transaction originated by Paratus AMC Ltd., formerly known as GMAC
RFC Ltd.

  Ratings List

  Clavis Securities' Series 2007-01
  
  Class  Rating to Rating from

  A3a    A (sf)   A- (sf)
  A3b    A (sf)   A- (sf)
  Aza    A (sf)   A- (sf)
  M1a    A (sf)   BBB+ (sf)
  M1b    A (sf)   BBB+ (sf)
  M2a    BBB+ (sf) BB+ (sf)
  M2b    BBB+ (sf) BB+ (sf)
  B1a    BB+ (sf) B (sf)
  B1b    BB+ (sf) B (sf)
  B2a    B- (sf)   B- (sf)




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

SESTANTE FINANCE 2: S&P Raises Class C2 Notes Rating to B (sf)
--------------------------------------------------------------
S&P Global Ratings raised its credit ratings on Sestante Finance
S.r.l.'s series 2 class C1 and C2 notes. At the same time, S&P has
affirmed its ratings on the class A and B notes.

S&P said, "Upon publication of our revised criteria for assessing
counterparty and sovereign risk in structured finance transactions,
we placed our ratings in this transaction that could be affected
under criteria observation. Following our review of this
transaction, our rating on the class B notes is no longer under
criteria observation.

"The rating actions follow our credit and cash flow analysis of the
most recent transaction information that we have received, as of
the April 2019 payment date."

The available credit enhancement for all classes of notes has
increased since S&P's previous review.

The reserve fund has not been replenished since its depletion in
October 2009.

S&P said, "The analytical framework in our revised structured
finance sovereign risk criteria assesses the ability of a security
to withstand a sovereign default scenario. We have applied these
criteria and determined the sensitivity of this transaction to
sovereign risk to be low. Even if the sensitivity for this
transaction was considered to be low, our qualitative assessment of
the relative creditworthiness and portfolio cap our ratings in this
transaction at four notches above the unsolicited long-term
sovereign rating on Italy (BBB/Negative/A-2), or 'A+ (sf)', as per
paragraph 23 of our sovereign risk criteria."

Commerzbank AG acts as swap counterparty in this transaction. Under
our previous counterparty criteria, the swap counterparty could
only support a maximum achievable rating of 'A (sf)' on all classes
of notes. S&P said, "We have reviewed the swap agreement under our
revised counterparty criteria and assessed the collateral framework
as weak because the swap documents do not contain downgrade
provisions in line with our counterparty criteria. Therefore, our
rating on the class of notes is capped at the resolution
counterparty rating (RCR) on the swap counterparty, which is 'A
(sf)'."

S&P said, "We continue to apply a commingling stress to Sestante
Finance 2. Like in other Italian residential mortgage-backed
securities (RMBS) transactions, our cash flow analysis considers
commingling risk a loss. All scheduled payments are made via direct
debt to the servicer's collection account, and funds are swept
daily to the transaction account. We have reassessed our view of
this transaction's commingling risk to better reflect the daily
sweep and that prepayments would significantly decline if the
servicer became insolvent. As a consequence, our cash flow results
have improved.

"Taking into account the results of our updated credit and cash
flow analysis, the available credit enhancement for the class A
notes can support a higher rating than that currently assigned even
without the benefit of the swap. However, our sovereign risk
criteria cap our rating on the class A notes at 'A+ (sf)'. We have
therefore affirmed our 'A+ (sf)' rating on this class of notes.

"Our credit and cash flow analysis indicates that the class B notes
can achieve a higher rating than that currently assigned with the
benefit of the swap due to the increased credit enhancement.
However, our current counterparty criteria cap our rating on this
class of notes at 'A (sf)'. We have therefore affirmed our 'A (sf)'
rating on the class B notes.

"The available credit enhancement for the class C1 notes has
increased to 0.19% as of April 2019 from -0.95% as of April 2018.
Additionally, the principal deficiency ledger has been cleared. We
have therefore raised to 'B+ (sf)' from 'B- (sf)' our rating on the
class C1 notes. While the class C1 notes could achieve a higher
rating based on our credit and cash flow results, we have limited
our upgrade due to the delinquency ratios' slight deterioration. We
have also considered the transaction's negative historical
performance, the high level of defaulted assets, and the class C1
notes' subordination to the class A and B notes.

"The class C2 notes rely on excess spread, which has been
sufficient to cure the principal deficiency ledger since our
previous review. In addition, following the reassessment of the
commingling stress, our credit and cash flow results indicate a
higher rating on the class C2 notes compared with our previous
review. However, considering the increase of delinquency ratios,
the high level of defaulted assets, the class C2 notes' reliance on
excess spread, and its position in the capital structure, we have
raised to 'B (sf)' from 'CCC+ (sf)' our rating of class C2 notes."

Sestante Finance series 2 is an Italian RMBS transaction, which
closed in December 2004. It is backed by a pool of residential
mortgage loans originated by Meliorbanca SpA.



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

KIWI VFS: S&P Alters Outlook to Positive & Affirms 'B' Rating
-------------------------------------------------------------
S&P Global Ratings revised the outlook on Luxembourg-based visa
pocessing company Kiwi VFS SUB I S.ar.l (VFS) to positive from
stable and affirmed its 'B' rating on the company.

S&P said, "The outlook revision reflects our view that strong
EBITDA growth, fueled by solid organic growth and the successful
integration of acquisitions in 2018, will result in adjusted debt
to EBIDA below 5x over the next 12 months, compared with 7.4x in
2018.

"EQT has owned VFS since June 2016. Since we assigned our rating to
VFS in June 2016, strong EBITDA growth has reduced debt to EBITDA
to 5x in 2019 from 8x in 2017, despite debt-funded acquisitions of
more than Swiss francs (CHF) 100 million in 2018. The company has
capitalized on favorable trends in the global travel market,
especially in the emerging markets where VFS has good market
share.

"We expect VFS to continue to reduce leverage over the next 12
months to levels commensurate with a higher rating. However, we
have limited evidence of the financial sponsor's commitment to
maintain adjusted leverage below 5x on a sustained basis, including
through periods of high acquisition activity. In addition, VFS has
a limited track record of material positive FOCF generation in the
recent years, given its growth investments.

"For 2019, we expect adjusted debt to EBITDA of 5.0x and reported
positive FOCF of CHF64 million. Our calculation of adjusted debt
includes an operating lease adjustment of CHF110 million and
contingent consideration of about CHF90 million in 2019.

"We expect total sales growth of over 30% and adjusted EBITDA
margin on 29% in 2019 because of an increase in visa applications
and high-margin value-added service business.

"Our rating on VFS reflects its leading position in the visa
application processing market. It has a global market share of
about 54% of the outsourced market. Furthermore, it is well
positioned to benefit from favorable growth prospects stemming from
the increasing trend for governments to outsource administrative
work, including visa application services. We expect volume growth
in visa processing applications to continue given the increasing
popularity of international travel."

Despite the administrative nature of the services it provides, VFS
benefits from some barriers to entry because of its global
coverage, robust IT capabilities, and established relationships
with governments and local partners. S&P thinks a new entrant would
find it difficult to replicate these strengths in the short term.
High revenue visibility through long-term contracts (typically
two-to-three years), along with a good track record of contract
retention (about 95%) and tender win rates (about 85%), provides
additional rating support.

Although recent 2018 acquisitions in the Middle East are a good
strategic fit, VFS' business risk profile is constrained by its
limited product diversity, reliance on a niche segment, significant
customer concentration, and relatively small scale compared to its
peers in the business services sector.

S&P said, "The positive outlook on VFS reflects the at least
one-in-three likelihood that we could raise the rating in the
coming 12 months if we think adjusted leverage will remain below 5x
on a sustained basis, with the company continuing to generate
material positive FOCF.

"We could raise the rating if VFS' adjusted debt to EBITDA remains
sustainably below 5x and the company generates material positive
FOCF. An upgrade would also be dependent on the company's financial
sponsor owner maintaining adjusted leverage of less than 5x,
including during periods of high acquisition activity.

"We could revise the outlook to stable over the next 12 months if
reported FOCF was not comfortably positive as we expect, or if we
no longer thought that adjusted leverage was to fall and remain
below 5x.

"Additionally, a negative rating action could result from any
dividend distribution or a material debt-financed acquisition that
would derail the leverage reduction that we forecast."

Luxembourg-based VFS provides visa-processing services to
governments and embassies across the world.

In addition to this, VFS also provides identity and citizen
services (I&CS) and various value-added services (VAS). VAS mainly
includes courier services, premium lounge access, SMS services, and
priority visas.

VFS operates in 147 countries with about 3,100 application centers.
VFS serves 62 client governments.

S&P Global Ratings expects 2019 sales and reported EBITDA at about
CHF740 million and CHF175 million.


LECTA SA: Moody's Lowers CFR to B3; Put Under Review for Downgrade
------------------------------------------------------------------
Moody's Investors Service downgraded Lecta S.A.'s Corporate Family
Rating to B3 from B2, its probability of default rating to B3-PD
from B2-PD as well as the ratings of the EUR600 million backed
senior secured bonds to B3 from B2. The ratings are placed under
review for downgrade. The outlook has changed to rating under
review from negative.

RATINGS RATIONALE

RATIONALE FOR DOWNGRADE

The rating action reflects that Lecta's envisaged conversion of
Line 8 at its Condat production facility and additional energy
efficiency measures face funding difficulties, which, combined with
weak demand for coated woodfree paper, result in Moody's
expectation that the planned deleveraging will be further
postponed. In contrast to the agency's original expectation, Lecta
has not continued on a deleveraging trajectory during the last
twelve months indicated by Moody's adjusted debt/EBITDA increasing
to 7.7x for the LTM period ended March 2019 from 6.8x debt/EBITDA
for the LTM period ended 2018. This largely reflects weaker than
expected industry conditions with a significant decline in the
demand for coated woodfree (CWF), despite some relief from lower
pulp prices recently. Moody's therefore believes it is unlikely
that Lecta' credit metrics will strengthen sufficiently in the
short term, with its debt/EBITDA moving below 6.5x, a level more
appropriate for the former B2 rating.

Owing to a significant increase in working capital, the company
reported roughly EUR80 million negative free cash flows (as defined
by Moody's, i.e. including gross capital spending and interest
paid) during Q1 2019. This has led to a material reduction of
Lecta's cash balances to around EUR63 million at the end of March
2019 from around EUR107 million at the end of December 2018, making
it more challenging to use Lecta's historically strong liquidity as
compensating factor for its fairly high leverage.

RATIONALE FOR RATINGS UNDER REVIEW FOR DOWNGRADE

The review will focus on Lecta's ability to mitigate demand
pressure in the coated woodfree segment and to protect its
operating profitability over the next quarters and at a level that
would allow for credit metrics in line with the requirements for
the B3 rating level, including debt/EBITDA at or below 7.5x.
Furthermore, the review will focus on the group's prospects for
liquidity, including an assessment of how the company plans to
unwind the significant working capital build-up over Q1 and return
to at least break even free cash flow generation.

LIQUIDITY

Lecta's liquidity deteriorated since Q3 2018, largely because of
increasing working capital financing needs. The next material debt
maturity are the EUR225 million of floating rate notes maturing in
2022. However, Moody's highlights that the company has a relatively
sizeable exposure to various supply chain financing arrangements,
including factoring, some of which are of short-term nature and
uncommitted.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Lecta's ratings could be downgraded if the company is unable to
timely substitute declining volumes in coated wood free products
with a rising share in higher-margin specialty papers.
Quantitatively, Moody's could downgrade the ratings if Lecta is
unable (1) to improve its free cash flow generation to at least
break-even levels, (2) to reduce its reliance on short-term
funding, and (3) improve its interest coverage to well above 1.0x
EBIT/interest expense.

At this stage unlikely, Moody's would consider a positive rating
action if Lecta's operating performance was to improve driven by
successfully executed cost cutting plans and conversion projects
resulting in (1) free cash flow generation leading to an improved
liquidity profile, (2) increasing EBITDA margins towards the high
single-digit range in percentage terms, (3) leverage reducing to
below 6.5x debt/EBITDA sustainably.

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

LECTA SA: S&P Cuts Sr. Sec. Notes Rating to 'CCC', Outlook Neg.
---------------------------------------------------------------
S&P Global Ratings lowered its long-term ratings on Lecta S.A. and
its senior secured notes to 'CCC' from 'B-'. The recovery rating on
the notes is unchanged at '4'.

The downgrade reflects the group's vulnerable liquidity position.
It risks large restructuring costs if line 8 in Condat is closed.
The liquidity position is also exposed to possible further
unexpected large working capital outflows and limited availability
under existing committed undrawn credit facilities.

Although Lecta's trading performance is in line with our base-case
expectations, the coated wood-free paper (CWF) sector is still
suffering from structural decline and margin pressures. We have
seen this in recent high-profile defaults (such as Arjowiggins and
Scheufelen) and ongoing capacity conversions (such as the planned
conversion of Stora Enso's CWF mill in Oulo to packaging paper).

Lecta idled its CWF line 8 in Condat in April 2019. Its plan to
proceed with the conversion of the line from CWF paper to a base
paper largely relies on receiving about EUR35 million in energy
support funds from the French government. EU officials in Brussels
have so far withheld approval for this funding. Lecta's management
is in ongoing discussions with government officials to obtain these
funds and is also looking at other options.

If Lecta does not proceed with the conversion of line 8 at Condat,
it will face employee severance costs that S&P Global Ratings
estimates at up to EUR40 million-EUR50 million. This, together with
the risk of further unexpected working capital outflows and the
limited availabilities under existing credit lines, leads S&P to
believe that it could face liquidity problems in the next 12
months.

S&P said, "We continue to regard Lecta's business risk profile as
weak and its financial risk profile as highly leveraged. We
forecast its net debt to EBITDA at about 6.7x at year-end 2019,
funds from operations (FFO) to debt at about 8.0%-9.5% over
2019-2020, and free operating cash flow as negative.

"Our negative outlook reflects that there is a heightened risk that
Lecta could consider entering into debt restructuring negotiations
with lenders over the next 12 months. We believe that this could
happen if it has to close its mill in Condat, which would result in
material cash restructuring costs, or if it faces further large
unexpected working capital outflows.

"We would consider a downgrade if Lecta experienced further
unexpected large working capital outflows, if it closed its paper
machine in Condat (because this would lead to material
restructuring costs), or operating performance deteriorated
significantly below our base case, resulting in a debt
restructuring or payment default becoming inevitable in the near
term.

"We could consider an upgrade if Lecta's liquidity improved in the
coming 12 months and we no longer considered it vulnerable to
material working capital or other unexpected cash outflows. We
would also expect liquidity sources to exceed liquidity uses by
more than 1.2x on a sustainable basis."




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

EURO-GALAXY V: Moody's Gives B3 Rating on EUR12.3MM Cl. F-R Notes
-----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to refinancing notes issued by
Euro-Galaxy V CLO B.V.:

EUR60,000,000 Class A-R-R Senior Secured Variable Funding Notes due
2030, Definitive Rating Assigned Aaa (sf)

EUR184,000,000 Class A-R Senior Secured Floating Rate Notes due
2030, Definitive Rating Assigned Aaa (sf)

EUR49,200,000 Class B-R Senior Secured Floating Rate Notes due
2030, Definitive Rating Assigned Aa2 (sf)

EUR23,200,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2030, Definitive Rating Assigned A2 (sf)

EUR19,200,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2030, Definitive Rating Assigned Baa3 (sf)

EUR23,300,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2030, Definitive Rating Assigned Ba2 (sf)

EUR12,300,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2030, Definitive Rating Assigned B3 (sf)

RATINGS RATIONALE

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

The Issuer issued the refinancing notes in connection with the
refinancing of the following classes of notes: Class A-R Notes,
Class A Notes, Class B Notes, Class C Notes, Class D Notes, Class E
Notes and Class F Notes, due 2030, previously issued on November
10, 2016. On the refinancing date, the Issuer has used the proceeds
from the issuance of the refinancing notes to redeem in full the
Original Notes.

On the Original Closing Date, the Issuer also issued EUR 39.9
million of subordinated notes, which will remain outstanding. The
terms and conditions of the subordinated notes have been amended in
accordance with the refinancing notes' conditions.

As part of this refinancing, the Issuer has (amongst other
amendments) (i) extended the Weighted Average Life (WAL) Test to
6.25 years (ii) amended the Moody's Test Matrix and associated
modifiers (iii) amended the Modification and Waiver section to
enable modification to the Collateral Quality Tests, Portfolio
Profile Tests , Reinvestment Over Collateralization Test,
Reinvestment Criteria and Eligibility Criteria with consent from
the controlling class, and subject to RAC and written notice from
the collateral manager (iv) allowed for optional redemption on any
business day rather than on any payment date and (v) amended the
reinvestment criteria such that following the expiry of the
reinvestment period the 1) WARF Test will need to be satisfied
after giving effect to such reinvestment and 2) the WAL Test will
need to be satisfied if it was not satisfied on the last business
day of the reinvestment period or if the WAL Test was satisfied on
the last business day of the reinvestment period then either
satisfy or, if not satisfied, then maintained or improved.

The Issuer is a managed cash flow CLO. At least 90% of the
portfolio must consist of secured senior loans or secured senior
bonds and up to 10.0% of the portfolio may consist of unsecured
senior obligations, second-lien loans, mezzanine obligations and
high yield bonds. The underlying portfolio is fully ramped as of
the closing date.

PineBridge Investments Europe Limited will manage the CLO in
collaboration with the Junior Collateral Manager, Credit Industriel
et Commercial SA ("CIC"). 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 remaining 1.25-year reinvestment period.
Thereafter, subject to certain restrictions, purchases are
permitted using principal proceeds from unscheduled principal
payments and proceeds from sales of credit impaired and credit
improved obligations.

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 modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in Section
2.3 of the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in March 2019.

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

Target Par Amount: EUR 400,000,000

Diversity Score: 52

Weighted Average Rating Factor (WARF): 3103

Weighted Average Spread (WAS): 3.60%

Weighted Average Coupon (WAC): 5.25%

Weighted Average Recovery Rate (WARR): 46.0%

Weighted Average Life (WAL): 6.25 years

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, exposures to countries with a LCC of
A1 or below cannot exceed 10%, with exposures to countries with
LCCs of Baa1 to Baa3 further limited to 5%. Following the effective
date, and given these portfolio constraints and the current
sovereign ratings of eligible countries, the total exposure to
countries with a LCC of A1 or below may not exceed 10% of the total
portfolio. As a worst case scenario, a maximum 5% of the pool would
be domiciled in countries with LCCs of Baa1 to Baa3 while an
additional 5% would be domiciled in countries with LCCs of A1 to
A3. The remainder of the pool will be domiciled in countries which
currently have a LCC of Aa3 and above. Given this portfolio
composition, the model was run with different target par amounts
depending on the target rating of each class of notes as further
described in the methodology. The portfolio haircuts are a function
of the exposure size to peripheral countries and the target ratings
of the rated notes and amount to 0.75% for the Class A notes, 0.50%
for the Class B notes, 0.38% for the Class C notes and 0% for
Classes D, E and F.

JUBILEE CLO 2014-XIV: Moody's Affirms Class F Notes Rating to 'B2'
------------------------------------------------------------------
Moody's Investors Service upgraded the ratings on two classes of
notes and affirmed six of the following notes issued by Jubilee CLO
2014-XIV B.V.:

EUR319,500,000 Class A-1-R Senior Secured Floating Rate Notes due
2028, Affirmed Aaa (sf); previously on Nov 12, 2018 Affirmed Aaa
(sf)

EUR5,000,000 Class A-2-R Senior Secured Fixed Rate Notes due 2028,
Affirmed Aaa (sf); previously on Nov 12, 2018 Affirmed Aaa (sf)

EUR51,200,000 Class B-1-R Senior Secured Floating Rate Notes due
2028, Affirmed Aa1 (sf); previously on Nov 12, 2018 Upgraded to Aa1
(sf)

EUR12,800,000 Class B-2-R Senior Secured Fixed Rate Notes due 2028,
Affirmed Aa1 (sf); previously on Nov 12, 2018 Upgraded to Aa1 (sf)

EUR34,400,000 Class C-R Deferrable Mezzanine Floating Rate Notes
due 2028, Upgraded to A1 (sf); previously on Nov 12, 2018 Affirmed
A2 (sf)

EUR28,400,000 Class D-R Deferrable Mezzanine Floating Rate Notes
due 2028, Upgraded to Baa1 (sf); previously on Nov 12, 2018
Affirmed Baa2 (sf)

EUR38,500,000 Class E Deferrable Junior Floating Rate Notes due
2028, Affirmed Ba2 (sf); previously on Nov 12, 2018 Affirmed Ba2
(sf)

EUR18,900,000 Class F Deferrable Junior Floating Rate Notes due
2028, Affirmed B2 (sf); previously on Nov 12, 2018 Affirmed B2
(sf)

Jubilee CLO 2014-XIV B.V., issued in October 2014 is a
collateralised loan obligation backed by a portfolio of mostly
high-yield senior secured European loans. The transaction was
refinanced in July 2017. The portfolio is managed by Alcentra
Limited. The transaction's reinvestment period has ended in January
2019.

RATINGS RATIONALE

The upgrades of the notes are primarily a result of the transaction
having reached the end of the reinvestment period in January 2019.
In light of reinvestment restrictions during the amortisation
period, and therefore the limited ability to effect significant
changes to the current collateral pool, Moody's analysed the deal
assuming a higher likelihood that the collateral pool
characteristics would maintain an adequate buffer relative to
certain covenant requirements. In particular, Moody's assumed that
the deal will benefit from a shorter amortisation profile than it
had assumed at the last rating action in November 2018.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base case,
Moody's analysed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR 542.6M,
defaulted par of EUR 1.2M, a weighted average default probability
of 21.59% (consistent with a WARF of 3072 over a WAL of 4.27
years), a weighted average recovery rate upon default of 46.19% for
a Aaa liability target rating, a diversity score of 44 and a
weighted average spread of 3.52%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analysing.

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.

Counterparty Exposure:

The rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank, using the
methodology "Moody's Approach to Assessing Counterparty Risks in
Structured Finance" published in January 2019. Moody's concluded
the ratings of the notes are not constrained by these risks.

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

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
notes, in light of uncertainty about credit conditions in the
general economy. CLO notes' performance may also be impacted either
positively or negatively by 1) the manager's investment strategy
and behavior and 2) divergence in the legal interpretation of
documentation by different transactional parties because of
embedded ambiguities.

Additional uncertainty about performance is due to the following:

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

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

STEINHOFF INTERNATIONAL: Mulls Further Retail-Asset Disposals
-------------------------------------------------------------
Janice Kew at Bloomberg News reports that Steinhoff International
Holdings NV sees its future as a hands-off investment holding
company and will consider further retail-asset disposals with that
in mind.

According to Bloomberg, Chief Executive Officer Louis du Preez said
on Aug. 13 such a shift would allow better-performing parts of the
group to grow while insulating them from legal battles and help
bring down debt.

The South African company directly operates units like Pepkor
Europe, the owner of European chains such as Poundland, Bloomberg
discloses.

As reported by the Troubled Company Reporter-Europe on May 14,
2019, Bloomberg News related that Steinhoff International Holdings
NV warned it won't be able to keep going longer than 12 months
unless its debt is reorganized and it skirts mounting lawsuits and
possible regulatory fines.  The global retailer at the center of
South Africa's biggest corporate scandal cut the value of its
assets by EUR15.3 billion (US$17 billion) because of accounting
irregularities, according to Bloomberg.

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


[*] NETHERLANDS: Number of Bankruptcies Hardly Changed in July 2019
-------------------------------------------------------------------
Statistics Netherlands reports that the number of corporate
bankruptcies has hardly changed.

There were two more bankruptcies in July 2019 than in the previous
month, Statistics Netherlands discloses.  The trend has been
relatively stable in recent years, Statistics Netherlands notes.

According to Statistics Netherlands, 311 businesses and
institutions (excluding one-man businesses) were declared bankrupt
in July 2019.  With a total of 79, the trade sector suffered most,
Statistics Netherlands states.

Trade is among the sectors with the highest number of businesses,
Statistics Netherlands relays.  In July, the number of bankruptcies
was relatively highest in the sector transport and storage,
Statistics Netherlands recounts.





===============
P O R T U G A L
===============

SATA AIR: Moody's Affirms Ba1 Notes Rating, Alters Outlook to Pos.
------------------------------------------------------------------
Moody's Investors Service changed the outlook to positive from
stable and affirmed the Ba1 rating of the EUR65 million guaranteed
senior unsecured notes due 2028 issued by SATA Air Acores, S.A.

This rating action reflects the change of the outlook to positive
from stable and the affirmation of the Ba1 rating of the Autonomous
Region of Azores (Ba1 positive), which provides an unconditional
and irrevocable guarantee of scheduled principal and interest to
the Notes.

SATA Air is one of six airlines owned by SATA, with headquarters in
the city of Ponta Delgada, isle of Sao Miguel, Azores. These
companies play a major role in providing accessibility for those
who live on the islands. It has also become an invaluable ally in
the growth and development of economic and social activities in the
Azores.

RATINGS RATIONALE

The Ba1 rating of SATA Air's EUR65 million Notes is in line with
the long-term issuer rating of Azores, which provides an
unconditional and irrevocable guarantee of scheduled principal and
interest. The terms of the guarantee are sufficient for credit
substitution in accordance with Moody's Rating Transactions Based
on the Credit Substitution Approach: Letter of Credit-backed,
Insured and Guaranteed Debts methodology. The outlook is positive
reflecting the positive outlook assigned to Azores on August 13,
2019.

Moody's considers that the terms of the guarantee have
characteristics of strong guarantee arrangements:

  - the guarantee is irrevocable and unconditional and ensures that
obligations under the guarantee rank pari and passu with Azores'
present or future, direct, unconditional, unsecured and
unsubordinated obligations.

  - the guarantee promises full and timely payment of the
obligation including interest and principal payments.

  - the guarantee covers payment -- not merely collection.

  - the guarantee extends as long as the term of the underlying
obligation will be reinstated and become effective again if
Noteholders have to return moneys after the date on which guarantee
has expired due to any insolvency proceeding or any court
proceeding.

  - the guarantee is enforceable against the guarantor and also in
accordance with Portuguese law.

The guarantee does not explicitly state that it waives all
suretyship defenses, but there are provisions in the Deed of
Guarantee stating that the guarantor would pay all obligations in
full without any exception, reserve, condition or claim.

All payments to be made by the Guarantor under the guarantee shall
also be made without set off or counterclaim and without deduction
for or on account of any present or future taxes, duties,
withholdings or other charges.

WHAT COULD CHANGE THE RATING UP/DOWN

The guaranteed senior debt rating is fundamentally linked to the
rating of Azores. Any change in Azores' rating would be expected to
translate into a rating change on the Notes.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Rating
Transactions Based on the Credit Substitution Approach: Letter of
Credit-backed, Insured and Guaranteed Debts published in May 2017.



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

XALQ BANK: Fitch Assigns BB- Issuer Default Rating, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has assigned Uzbekistan-based Joint-Stock Commercial
Xalq Bank of the Republic of Uzbekistan Long-Term Foreign- and
Local-Currency Issuer Default Ratings of 'BB-'. The Outlook on the
IDRs is Stable.

KEY RATING DRIVERS

IDRS, SUPPORT RATING AND SUPPORT RATING FLOOR

Xalq's 'BB-' Long-Term IDRs reflect Fitch's view of a moderate
probability of support from the Uzbekistan sovereign (BB-/Stable)
in case of need, as reflected in the bank's Support Rating (SR) of
'3' and Support Rating Floor of 'BB-'. This view is based on (i)
the bank's exclusive policy role where Xalq acts as a pension and
social distribution agent of the government, and accumulates and
manages pension savings for the working population of Uzbekistan
and (ii) the bank's long-term strategic state ownership with no
plans for privatisation, both of which considerations have a high
influence on its assessment of potential support for the bank. The
low cost of potential support relative to the sovereign's foreign
currency reserves, and a track record of support for the country's
public sector banks that dominate the banking sector are also
important considerations in its assessment of support.

Xalq is a successor of Uzbekistan's branch of Sberbank of USSR and
has the widest branch network with over 1,100 offices. However, at
end-1H19, it ranked as the sixth-largest bank in Uzbekistan with 5%
of system assets, 4% of loans and 7% of deposits.

In Fitch's view, Xalq has a stronger policy role than other
Fitch-rated Uzbekistan's policy banks due to its exclusive role in
accumulating and managing individual pension savings accounts (from
2004) as well as distribution of pension and social payments (from
2017). In carrying out its social functions, Xalq has a significant
exposure to interest rate risk, stemming from the required minimum
interest rate being accrued on outstanding pension savings, which
is determined by the government and is typically not lower than
annual inflation. As a result of faster inflation in 2017 and 2018,
funding cost for Xalq increased sharply and exceeded the yield of
related assets, most of which were fixed-rate, long-term customer
loans and bank placements extended in 2016 and earlier.

Net losses reported by Xalq in 2017 and 2018 were UZS131 billion
and UZS334 billion respectively, driven mostly by a tightened net
interest margin (1.5% in 2017 and 3.3% in 2018 versus over 6% in
2015 and 2016), coupled with weak operating efficiency (operating
expenses at over 9% of average assets in 2018) and high credit
costs (3.7% of average loans in 2017 and 3.3% in 2018). Net of
pension-related income and expenses, the bank's results were
positive on a pre-impairment basis, with an adjusted return on
average equity of about 5% in 2018.

Xalq is heavily reliant on state capital and funding support to
maintain high growth and offset losses reported in 2017 and 2018.
Since the start of 2017, the bank has received about UZS1.5
trillion (about USD180 million equivalent) of common equity from
the state, including a capital gain from tax relief. By end-2019,
the bank will receive a further UZS0.7 trillion. Additionally, at
end-1H19, about 40% of the bank's liabilities comprised
state-related funds or borrowings from international financial
institutions guaranteed by the Ministry of Finance (MoF).

The sovereign's ability to provide support is solid, in its view,
given the moderate size of the banking sector relative to the
economy (total banking sector assets of USD25 billion with a
loans/GDP ratio of 41% at end-2018), while Uzbekistan's foreign
currency reserves are relatively large at around USD27 billion.
However, support considerations also factor in the high
concentration of the banking sector, where state-owned banks
represent around 80% of sector assets, and where sector loan
dollarisation is close to 60%. The sector is vulnerable to external
shocks, given a commodities-based economy whose external finances
rely on remittances.

The bank's loan quality is weak, with impaired (Stage 3) loans
making up sizable 8.1% of gross loans at end-2018, which is
significantly above the sector average. Stage 3 loans were just 22%
covered by specific loan loss allowances, which is also weak
coverage compared with other banks' (40%-60%).

Positively, loan book concentration by single borrowers is low,
with the 25-largest exposures making up just 13% of gross loans at
end-2018, while the three-largest exposures (6% of loans) were
represented by low-risk state-owned entities. The remaining loans
are quite granular and comprise loans to SMEs, mostly in the
agriculture (dairy farming and greenhouses) and residential
construction industries. Additionally, Xalq has lower dollarisation
of its loan book (20% at end-2018) than other state-owned banks,
which is credit-positive.

Capitalisation levels are determined by the state, as is the case
for other state banks, and regular capital injections ensure that
regulatory capital adequacy ratios are maintained above minimum
requirements. Its assessment is that capitalisation is tight for
Xalq's risks. At end-2018, the bank's Fitch Core Capital (FCC)
amounted to 16% of regulatory risk-weighted assets, while its Tier
1 regulatory capital ratio was 17.7% and its total capital ratio
was 18%. However, after rapid 90% loan growth in 1H19, Xalq's Tier
1 regulatory capital ratio fell 4pp to just 14% . Anticipated loan
growth in 2H19 will be underpinned by an expected capital injection
of UZS700 billion.

At end-2017, Xalq was funded mostly by pension savings, which made
up 60% of total liabilities at that date. However, the most recent
growth was mainly funded by state funding in the form of direct
loans and deposits from the MoF and state development funds, along
with international borrowings ultimately guaranteed by the MoF.
Their total share increased to 40% of total liabilities at end-1H19
from 6% at end-2017. Liquidity risk is lower than at peers due to a
substantial proportion of long-term pension savings (36% of
liabilities at end-1H19), the early withdrawal of which is
constrained by law, and due to sizable cash and bank placements,
which were equal to 36% of total liabilities, including 10% being
available within three months.

VIABILITY RATING

Fitch does not assign a Viability Rating (VR) to Xalq as its
pension-related business model is not sustainable on a standalone
basis and is entirely dependent on state support. In its view,
Xalq's unique pension-related policy role cannot be carried out on
a commercial basis or transferred easily to another state-owned
bank or public entity.

RATING SENSITIVITIES

IDRS, SUPPORT RATING AND SUPPORT RATING FLOOR

Rating actions on Xalq's support-driven IDRs, SR and SRF will
likely result from strengthening or weakening of the sovereign's
credit profile, mirroring changes to Uzbekistan's sovereign
ratings.

These ratings could be downgraded in the event that the state's
propensity to support Xalq weakens, for example should its policy
role function in the distribution and accumulation of pensions be
transferred to another entity. However, Fitch views this as
unlikely, which is reflected in the Stable Outlook.

VR

The assignment of a VR to Xalq would require a significant
improvement in the bank's commercial franchise and material
reduction of risks associated with carrying out its pension-related
function.



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

BRITISH STEEL: Ataer Holding Selected as Preferred Bidder
---------------------------------------------------------
Alan Tovey at The Telegraph reports that Turkish investor Ataer
Holding has been selected as the preferred bidder for British
Steel, safeguarding thousands of manufacturing jobs, with an
announcement due today, Aug. 16.

According to The Telegraph, sources close to the situation said
that Ataer Holding--backed by a Government support package--had
been picked as having the strongest offer for British Steel, which
collapsed into insolvency in May.

The company was taken over by the Official Receiver, assisted by
managers from consultancy EY, who have been seeking a buyer, The
Telegraph discloses.

Official confirmation of the preferred bidder has been delayed by
what one insider called "minor business questions and queries for
Ataer", The Telegraph notes.

                       About British Steel

British Steel Limited is a long steel products business founded in
2016 with assets acquired from Tata Steel Europe by Greybull
Capital.  The primary steel production site is Scunthorpe
Steelworks, with rolling facilities at Skinningrove Steelworks,
Teesside and Hayange, France.

British Steel has about 5,000 employees.  There are 3,000 at
Scunthorpe, with another 800 on Teesside and in north-eastern
England.  The rest are in France, the Netherlands and various sales
offices round the world.

British Steel was placed in compulsory liquidation on May 22, 2019.
The liquidation came after the Company failed to obtain an
emergency state loan of about GBP30 million.

The Government's Official Receiver has taken control of the company
as part of the liquidation process. Accountancy firm EY has been
named Special Manager in the case, and will be assisting the
Receiver.

The Company will be trading normally as its search for a buyer is
ongoing.


BURY FC: EFL Suspends August 20 Game Against Rotherham
------------------------------------------------------
BBC News reports that Bury's away fixture against Rotherham on Aug.
20 has been suspended by the English Football League--their fifth
successive game to be called off.

The suspension comes as the League One club works towards a Aug. 23
deadline to avoid expulsion from the EFL, BBC notes.

According to BBC, the EFL say they have still not had evidence that
Bury can pay creditors and have funding for the season ahead.

Shakers staff had issued a statement on Aug. 12 which "implored"
Dale to accept an offer for Bury, who are yet to play a competitive
fixture this season, BBC relates.

The game against the Millers is Bury's fourth League One fixture to
be called off, in addition to the Aug. 20  Carabao Cup tie against
Sheffield Wednesday, BBC states.

Owner Steve Dale said earlier this week he has provided the
required evidence and is prepared to sell the club.

Bury have already been given a 12-point deduction after entering
into a Company Voluntary Arrangement (CVA)--which is classed as an
insolvency event by the EFL--as they try to clear some of their
debts, BBC recounts.

A winding-up petition against them was dismissed by the High Court
on July 31, with Dale going on to claim the EFL was "working
against" the club, BBC discloses.  The league's executive chair
Debbie Jevans later said the EFL was "not standing in the way" of
the club's survival, BBC relays.


CO-OPERATIVE BANK: Moody's Puts Caa1 Issuer Ratings, Outlook Pos.
-----------------------------------------------------------------
Moody's Investors Service assigned Caa1/Not Prime issuer ratings in
local and foreign currency to The Co-operative Bank Finance p.l.c.
(The Co-operative Bank Finance), a holding company of The
Co-operative Bank plc (B3 positive, b3). The outlook on the
long-term issuer ratings is positive.

RATINGS RATIONALE

Moody's said that The Co-operative Bank Finance's issuer ratings
reflect: (1) the standalone creditworthiness of The Co-operative
Bank, as indicated by its b3 Baseline Credit Assessment (BCA); (2)
high loss-given-failure for the senior unsecured instruments that
The Co-operative Bank Finance will issue, which results in ratings
one notch below the BCA of The Co-operative Bank; and (3) a low
probability of government support, which results in no uplift.

The Co-operative Bank's b3 BCA is driven by the bank's persistent
losses and very high execution risk, which are only partially
mitigated by a low stock of problem loans, following a substantial
reduction in legacy portfolios, and high capital ratios.

High loss-given-failure for senior unsecured instruments that will
be issued by The Co-operative Bank Finance derives from the limited
loss absorption provided by (1) the residual equity that Moody's
expects in a resolution scenario; (2) The Co-operative Bank
Finance's existing subordinated debt, as well as that the rating
agency expects the group to issue; and (3) the senior unsecured
debt that Moody's expects The Co-operative Bank Finance to issue in
the next 12-18 months.

The Co-operative Bank Finance has not yet issued any senior
unsecured debt.

RATIONALE FOR THE OUTLOOK

The positive outlook on The Co-operative Bank Finance's long-term
issuer ratings is in line with the positive outlook of The
Co-operative Bank's long-term deposit ratings. The outlook reflects
Moody's view that execution risk that The Co-operative Bank is
facing in repositioning its balance sheet and delivering a more
sustainable business model will reduce in the coming years as the
bank continues to deliver on its restructuring and investment
plans.

FACTORS THAT COULD LEAD TO AN UPGRADE

The Co-operative Bank Finance's long-term issuer ratings could be
upgraded following an upgrade of The Co-operative Bank's BCA, a
material increase in the stock of subordinated liabilities issued
by The Co-operative Bank Finance or by The Co-operative Bank, or a
material issuance of senior unsecured debt by The Co-operative Bank
Finance.

The Co-operative Bank's BCA could be upgraded following a
materially reduced execution risk, which could be achieved by the
completion of its separation from The Co-operative Group,
improvements in the bank's IT infrastructure, and a return to
sustainable internal capital generation through earnings.

FACTORS THAT COULD LEAD TO A DOWNGRADE

The Co-operative Bank Finance's long-term issuer ratings could be
downgraded following a downgrade of The Co-operative Bank's BCA.
The Co-operative Bank's BCA could be downgraded following a failure
of its IT transformation, or evidence that the bank will not be
able to return to a sustainable level of net profitability in the
medium-term.

LIST OF AFFECTED RATINGS

Issuer: The Co-operative Bank Finance p.l.c.

Assignments:

Long-term Issuer Ratings, Assigned Caa1 positive

Short-term Issuer Ratings, Assigned NP

Outlook Actions:

Outlook, Assigned Positive

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published
in August 2018.

EG GROUP: Moody's Affirms B2 CFR, Outlook Stable
------------------------------------------------
Moody's Investors Service, affirmed the B2 corporate family rating,
the B2-PD probability of default rating of EG Group Limited and the
B2 and Caa1 instrument ratings of the debt issued by its
subsidiaries EG Finco Limited, EG Global Finance plc , EG America
LLC and EG Group Australia Pty Ltd. The outlook on all ratings is
stable.

The rating action follows the announcement on July 31, 2019 of the
planned acquisition of Cumberland Farms, Inc. (Ba3 stable), a fuel
retailer and convenience store operator in the United States with
563 locations and revenues of $4.1 billion in 2018. The Cumberland
acquisition will be funded by a combination of cash on balance
sheet and new debt structured initially as a mix of senior bridge
facilities and new second lien debt. The company intends to replace
the bridge facilities with new senior secured notes and other
financing. The acquisition is subject to anti-trust approval and is
expected to complete in October.

The rating action was driven by:

  - Moody's expectation of a stable underlying performance of the
group

  - The company's continued positive track record in the execution
of planned synergies from the integration of acquisitions

  - Moody's expectations that pro-forma leverage will improve below
6.5x over the course of the next 12-18 months

RATINGS RATIONALE

Although the pace of its M&A activity has not abated, with the
pending US deal following the Australian deal completed in April
2019 and five transactions during 2018, EG seems to be executing
integration plans well, with a substantial percentage of planned
synergies from previous acquisitions already actioned. For instance
EUR52 million or 42% of EUR124 million planned synergies from the
Kroger acquisition completed in April 2018 have already been
realised. The group's increased scale and geographic
diversification following recent transactions, are further credit
positives as are its strong underlying business profile and cash
generation characteristics; pro-forma for the Cumberland
acquisition, North America will account for nearly half of the
group's gross margin.

That said, it remains difficult to gauge the underlying performance
of the business, i.e. annualised but excluding acquisitions, as EG
does not disclose its operating profits on a like-for-like basis.
EG's EBITDA on a last twelve months basis declined in the first
quarter of 2019 on a sequential basis reflecting a relatively
weaker first quarter this year compared to last.

Whilst acknowledging the good quality of the acquired assets,
Moody's believes EG is paying a high price for Cumberland, valued
at 12.8x pre-synergy EBITDA compared to 10.5x for Kroger and 7.0x
for Woolworths, with the higher valuation paid for Cumberland
partly explained by its higher real estate value. The high multiple
paid for Cumberland makes the realisation of planned synergies even
more important. Also, as EG's size increases with subsequent
acquisitions, the company will need to execute larger and larger
transactions in order to meaningfully increase its EBITDA, or
larger planned synergies, thus increasing the risk of missteps.

The total synergies expected from the Cumberland deal (EUR134
million) represent 47% of Cumberland's pro-forma EBITDA
post-synergies (EUR285 million) compared to 28% in the previous
Kroger deal in the US, although the higher percentage in the new
transaction is at least partly justified by the opportunity to
merge two head offices into one post Cumberland.

Leverage remains high with Moody's-adjusted gross leverage, as
measured by the ratio of adjusted debt to adjusted EBITDA of around
7.1x pro-forma for annualised contributions from the acquired
businesses and factoring in the full year impact of cost savings
initiatives already actioned. This is expected to reduce below 6.5x
over the course of the next 12-18 months as synergy benefits are
realised.

LIQUIDITY

EG's liquidity is currently adequate. Pro-forma for the refinancing
the group has cash balances totaling around EUR219 million and two
revolving credit facilities (RCFs) of GBP250 million and $150
million, respectively, of which only EUR35 million is expected to
be drawn.

STRUCTURAL CONSIDERATIONS

Management intends to initially fund the Cumberland acquisition
through senior secured bridge financing with a similar maturity
profile to the existing senior secured notes due 2025 with similar
covenants and other terms, as well as a new second lien loan.

The PDR of B2-PD, in line with the CFR, reflects the first and
second lien debt structure and the covenant-lite nature of the
facilities which, in Moody's assessment of recovery prospects in
the event of a default, offsets the strong asset backing at the
outset. The B2 rating of the Senior Secured Credit Facilities, in
line with the CFR, reflects the absence of any significant non-debt
liabilities ranking ahead or behind them, while the Caa1 rating of
the second lien debt reflects its position behind the first lien
facilities in the event of a default.

OUTLOOK

The stable outlook reflects Moody's expectations that EG's
financial performance will continue to improve, driven by
successful execution of strategy in respect of the acquisitions
agreed over the course of 2018 and 2019 as well as a stable
underlying performance. Nevertheless EG continues to have limited
room for underperformance in the current rating category given its
high leverage.

WHAT WOULD CHANGE THE RATING UP / DOWN

While unlikely in the short term, the ratings could experience
upward pressure if, following a period where results of the various
recently agreed acquisitions prove to be in line with expectations,
the company achieves i) sustainable earnings growth; ii) positive
free cash flow; and iii) Moody's-adjusted gross pro forma leverage
sustainably below 5.5x.

WHAT COULD CHANGE THE RATING - DOWN

Conversely, the rating could be i) deterioration in underlying
operating performance; or ii) Moody's-adjusted gross pro forma
leverage remaining above 6.5x on a sustained basis; or iii)
negative free cash flow for an extended period; or iv) weaker than
expected liquidity.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Retail Industry
published in May 2018.

Affirmations:

Issuer: EG Group Limited

Corporate Family Rating, Affirmed B2

Probability of Default Rating, Affirmed B2-PD

Issuer: EG America LLC

Senior Secured Bank Credit Facility, Affirmed B2

Backed Senior Secured Bank Credit Facility, Affirmed Caa1

Issuer: EG Finco Limited

Senior Secured Bank Credit Facility, Affirmed B2

Backed Senior Secured Bank Credit Facility, Affirmed B2

Backed Senior Secured Bank Credit Facility, Affirmed Caa1

Issuer: EG Global Finance plc.

Backed Senior Secured Regular Bond/Debenture, Affirmed B2

Issuer: EG Group Australia Pty Ltd

Backed Senior Secured Bank Credit Facility, Affirmed B2

Outlook Actions:

Issuer: EG Group Limited

Outlook, Remains Stable

Issuer: EG America LLC

Outlook, Remains Stable

Issuer: EG Finco Limited

Outlook, Remains Stable

Issuer: EG Global Finance plc.

Outlook, Remains Stable

Issuer: EG Group Australia Pty Ltd

Outlook, Remains Stable

CORPORATE PROFILE

EG is headquartered in Blackburn, England and owned equally by
funds managed by TDR Capital LLP and the two brothers who founded
Euro Garages, Mohsin & Zuber Issa. The business has grown through a
series of acquisitions to become one of the leading independent
motor-fuel forecourt operators in Europe, the US and Australia.

FINSBURY SQUARE 2017-1: Moody's Affirms Class D Notes Rating at Ba2
-------------------------------------------------------------------
Moody's Investors Service upgraded ratings of the Class B Notes and
the Class C Notes in Finsbury Square 2017-1 plc. The rating action
reflects increased levels of credit enhancement for the affected
Notes and better than expected collateral performance.

Moody's affirmed the ratings of the Notes that had sufficient
credit enhancement to maintain the current ratings on the affected
Notes.

GBP380.98M Class A Notes, Affirmed Aaa (sf); previously on Mar 7,
2017 Definitive Rating Assigned Aaa (sf)

GBP23.26M Class B Notes, Upgraded to Aaa (sf); previously on Mar 7,
2017 Definitive Rating Assigned Aa1 (sf)

GBP25.47M Class C Notes, Upgraded to Aa3 (sf); previously on Mar 7,
2017 Definitive Rating Assigned A1 (sf)

GBP13.29M Class D Notes, Affirmed Ba2 (sf); previously on Mar 7,
2017 Definitive Rating Assigned Ba2 (sf)

RATINGS RATIONALE

The rating action is prompted by increased levels of credit
enhancement for the affected Notes and a decreased key collateral
assumption, namely the portfolio Expected Loss (EL) assumption, due
to better than expected collateral performance.

The rating action also took into account the increased uncertainty
relating to the impact of the performance of the UK economy on the
transaction over the next few years, due to the on-going
discussions relating to the final Brexit agreement.

Increase in Available Credit Enhancement:

Sequential amortization and ongoing deleveraging led to the
increase in the credit enhancement available in this transaction.

For instance, the credit enhancement for the Class B Notes affected
by the upgrade action increased from 10.75% to 26.00% since closing
and for the Class C Notes from 5.00% to 12.10%.

Revision of Key Collateral Assumptions:

As part of the rating action, Moody's reassessed its lifetime loss
expectation for the portfolio reflecting the collateral performance
to date.

The performance of the transaction has been better than
anticipated. While delinquencies with 90 days plus arrears
currently stand at 4.74% of current pool balance, cumulative losses
currently stand at only 0.01% of original pool balance.

Moody's decreased the expected loss assumption to 1.70% as a
percentage of original pool balance from 2.20%, due to better than
expected performance.

Moody's has also assessed loan-by-loan information as a part of its
detailed transaction review to determine the credit support
consistent with target rating levels and the volatility of future
losses. As a result, Moody's has maintained the MILAN CE assumption
at 12.00%.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
July 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) deleveraging of the capital
structure; (3) improvements in the credit quality of the
transaction counterparties; and (4) a decrease in sovereign risk.

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.

H2O NETWORKS: Founder Reports Deloitte to Regulators
----------------------------------------------------
Nic Fildes and Tabby Kinder at The Financial Times report that
Deloitte has been dragged into a long-running scandal over a
collapsed telecoms company that laid cables in the UK's sewer
network, after its founder reported the auditor to regulators.

According to the FT, Elfed Thomas, the founder and former chief
executive of H2O Networks, commissioned a forensic accountant to
evaluate Deloitte's performance as the company's auditor during a
period when a GBP160 million financing fraud took place.

This week, Mr. Thomas submitted the report alleging potential
negligence by Deloitte, which became H2O Networks' auditor in 2003,
over its historic audits to the Financial Reporting Council, the FT
discloses.  He has also appointed law firm Keystone to start legal
proceedings against the auditor, the FT states.

It is the latest in a growing number of actions against auditors
accused of negligence for failing to spot fraudulent activity that
led to trading losses, the FT notes.

H2O Networks was seen as a potential challenger to BT and Virgin
Media but collapsed into administration in 2011 after the Serious
Fraud Office launched an investigation into its financing
arrangements, the FT recounts.

A company called Total Asset Finance had arranged loans, based on
the value of H2O Networks' contracts, from KBC and Barclays to
finance expansion, the FT relays.  However, many of the contracts
were inflated in value or did not even exist and four men,
including H2O Networks' finance director Carl Cumiskey, were
convicted of conspiracy to commit fraud in 2017, the FT discloses.

The company's broadband assets were sold out of administration for
a nominal sum to then start up company CityFibre, which floated in
2014 and was sold four years later for GBP538 million to the
Goldman Sachs fund West Street Infrastructure and Antin
Infrastructure Fund, the FT relates.

Mr. Thomas was acquitted as part of the H2O Networks trial, the FT
notes.  He later commissioned John Frenkel, a forensic accountant,
to explore potential negligence by Deloitte, according to the FT.

The report submitted to the FRC alleges that Deloitte's audit of
H2O Networks' 2009 and 2010 accounts had not been thorough and
missed key issues that would have uncovered the fraud and saved the
company from collapse, the FT states.  According to the FT, the
report says that it should have been evident that Total Asset
Finance was "technically insolvent" and that certain contracts in
Bournemouth and Dundee that were sold to TAF to raise new financing
did not exist.


LIBERTY GLOBAL: S&P Affirms BB- ICR on Asset Sale; Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed the long-term issuer credit rating on
Liberty Global PLC at 'BB-'.

While Liberty Global's sale of its operations in Germany, Czech
Republic, Hungary, and Romania to Vodafone translates into a weaker
business risk profile, the group's high cash balances reduce
leverage and offset the impact of materially less diversified
operations. The net cash proceeds from the disposal amount to about
$11.3 billion after debt reduction related to these operations.

The sale markedly reduces Liberty Global's scale and geographic
diversity, leaving the group more concentrated. Now, more than 80%
of the group's revenues stem from its two key remaining assets:
Virgin Media and Telenet. S&P said, "We also consider the loss of
German cable company Unitymedia. In our view, Unitymedia was an
important contribution to Liberty Global's business risk, since it
operates in the wealthy German market, characterized by more
rational competition than in the remaining markets, with
opportunities to continue expanding its broadband base, and a very
sticky base of TV customers coming from the housing associations."

Although Virgin Media and Telenet have solid positions in their
respective markets and benefit from a network speed advantage over
the incumbent telecom operators, both operate in maturing and
highly competitive telecom markets with very limited medium-term
prospects for service revenue growth.

Nevertheless, S&P understands that Liberty Global intends to retain
the majority of its cash balances for liquidity purposes, including
potential acquisitions and possible moderate deleveraging.

Liberty Global announced a $2.5 billion buyback of its shares
through a Dutch auction mechanism. This, plus the proceeds from the
completed asset sales, leads us to expect an S&P Global
Ratings-adjusted leverage of about 4.0x in 2019 versus about 5.6x
in 2018. While S&P sees a substantial risk that Liberty Global will
seek additional buybacks over the next 12-24 months, S&P
anticipates the group will maintain significant headroom to its
downside trigger of 5x adjusted debt to EBITDA.

S&P said, "We see a minimal likelihood that Liberty Global will
return the majority of the proceeds to shareholders given the
complexity of buying such a high amount, in addition to the group's
intentions to explore opportunistic acquisitions within its
footprint. Therefore, Liberty Global is unlikely to return to the
higher end of its unchanged target leverage range of net debt to
EBITDA of 4x-5x absent any sizable acquisitions. We do not
anticipate any acquisitions at this time and will assess the
business and financial risk impacts as they occur."

Furthermore, while Liberty Global continues to generate relatively
limited free cash flows, impacted by high network investments in
the U.K, its gradually improving cash flow profile protects the
group's credit quality. S&P understands the group's 2019 capital
expenditure (capex) will reduce by more than 20%, resulting in free
operating cash flow (FOCF) increasing toward $600 million by
year-end, excluding vendor financing. Nevertheless, the
still-weaker cash flow to debt ratio of less than 5% is a key
constraint to the overall rating.

S&P said, "While we have yet to factor in the group's potential
sale of UPC Switzerland to Sunrise, we do not anticipate any
additional material impact on the group's overall credit quality.
Also, we understand that the UPC Switzerland transaction would
result in further debt reduction on a gross basis, since the
remaining operations in Central and Eastern Europe are only
expected to be leveraged at about 4x.

"The stable outlook reflects our anticipation of only a minor
decline in EBITDA in 2019-2020--excluding the negative impact of
currency movement--and significant cash on balance sheet that would
offset any potential underperformance. The outlook also reflects
our expectation that Liberty Global will generate more than $500
million in annual FOCF, excluding vendor financing, despite
heightened capex of mid-20% of revenue.

"We could lower the rating if we expect that the group's adjusted
debt to EBITDA increased to sustainably above 5x due to
larger-than-anticipated shareholder returns or on the back of
leveraged acquisitions that do not materially enhance our view of
the business."

Increasing competition that results in declining EBITDA margins or
adjusted FOCF to debt materially below 3% in the short term could
also lead us to consider a downgrade.

S&P said, "We do not see any near-term rating upside, primarily
because of the group's aggressive financial policy track record,
which we expect will maintain adjusted leverage at 4x-5x over the
longer term. Moreover, short-term rating upside is limited due to
our expectation of continued relatively weak free cash flows,
resulting in adjusted FOCF to debt excluding the benefits of vendor
financing of 3%-5%. However, if management adopted a deleveraging
policy, we could raise the rating if we expected adjusted leverage
to remain at comfortably less than 5x on a sustainable basis, while
adjusted FOCF to debt (excluding vendor financing) increases to
sustainably above 5%."


MIZZEN MIDCO: Moody's Affirms B1 CFR, Outlook Stable
----------------------------------------------------
Moody's Investors Service affirmed at B1 the Corporate Family
Rating of Mizzen Midco Limited, operating under the name of Premium
Credit Limited. Moody's has also affirmed at B1 the rating of the
GBP189.4 million backed long-term senior notes issued by Mizzen
Bondco Limited, a wholly-owned subsidiary of Mizzen Midco Limited.
The outlooks on the issuers remain stable.

Moody's has also withdrawn the outlook on Mizzen Bondco's existing
instrument ratings for its own business reasons. The withdrawal of
this outlook has no impact on the issuer-level rating outlook for
Mizzen Bondco.

RATINGS RATIONALE

PCL operates in the UK and Irish premium finance market as a
provider of insurance premium finance and other payment
facilitation services to companies and private individuals. The
company, through a diverse network of intermediaries, provides
loans to customers (companies and individuals) enabling them to pay
insurance premiums in monthly instalments instead of an upfront
lump sum. It also provides direct debit management services
(providing financing of professional fees and memberships) and
school fee plans (providing financing for school tuition).

The CFR of B1 reflects PCL's leading franchise positioning in the
UK and Irish premium finance markets, stable cash flows and good
profitability, low levels of credit losses, improved maturity
profile and low concentration risk in terms of end-customers, as
well as its monoline business model and concentration in terms of
intermediaries. The B1 bond rating further reflects the limited
collateral available as security for the senior notes.

The confirmation of the backed senior unsecured debt rating
reflects the application of Moody's Loss Given Default for
Speculative-Grade Companies and their position in the company's
funding structure as well as the notes' terms. The senior notes are
secured by a first ranking security interest over the issued
capital of Mizzen Bondco and Mizzen Mezzco2, a wholly-owned and
immediate subsidiary of Mizzen Bondco. However, Moody's considers
the senior notes issued by Mizzen Bondco as unsecured for the
purposes of the rating. This is due to PCL's existing
securitisation, 1) buys funded receivables daily, and is expected
to buy substantial share of the funded assets of the company in the
foreseeable future, 2) its senior tranches have a priority claim on
the underlying cashflow compared to the notes, and 3) the positive
correlation between the underlying risks for the notes and the
value of the collateral.

RATONALE FOR THE STABLE OUTLOOK

The stable outlook reflects the company's lengthened maturity
profile following the refinancing of its existing facility, stable
earnings generation capacity and its expectation that the company
will continue to improve its solvency profile.

WHAT COULD CHANGE THE RATINGS UP / DOWN

PCL's ratings could be upgraded: (i) as a result of a reduction in
the company's leverage, calculated as secured debt over tangible
assets, falling below 50%; and/or (ii) an increase in its Tangible
Common Equity (TCE) over Tangible Managed Assets (TMA) ratio to 4%;
and/or (iii) a significant improvement in cash flow from
operations, while maintaining other financial metrics ratios at
current levels. The rating of the senior notes may also be upgraded
if the group were to issue substantial amounts of subordinated
debt.

The ratings could be downgraded because of: (i) a significant
deterioration in cash flow from operations, stemming from
decreasing margins or higher than expected credit losses; and/or
(ii) no improvement in capital position and leverage, leading to a
debt ratio which is higher than 75%. The senior notes may be
downgraded if the group were to issue a material amount of secured
recourse debt, which would increase expected loss for unsecured
creditors.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Finance
Companies published in December 2018.

NEWGATE FUNDING 2006-1: S&P Raises Class E Notes Rating to B+(sf)
-----------------------------------------------------------------
S&P Global Ratings raised its credit ratings on Newgate Funding PLC
series 2006-1 class D and E notes. At the same time, S&P has
affirmed its ratings on the class A4, Ma, Mb, Ba, Bb, Ca, and Cb
notes.

S&P said, "In this transaction, our ratings address timely receipt
of interest and ultimate repayment of principal for all classes of
notes.

"The rating actions follow the application of our revised criteria
and our full analysis of the most recent transaction information
that we have received, and reflect the transaction's current
structural features.

"Upon revising our criteria for assessing pools of residential
loans, we placed our ratings on all of the transaction's classes of
notes under criteria observation. Following our review of the
transaction's performance and the application of these criteria,
our ratings on the notes are no longer under criteria observation.

"In our opinion, the performance of the loans in the collateral
pool has improved since our previous full review. Since then, total
delinquencies have decreased to 21.7% from 29.1%.

"The greater proportion of the loans in the pool receiving the
maximum seasoning credit as well as the withdrawal of arrears
projection, which no longer form part of our criteria, benefitted
our weighted-average foreclosure frequency (WAFF) calculations. Our
weighted-average loss severity (WALS) assumptions have decreased at
all rating levels as a result of higher property prices throughout
the U.K., which triggered a lower weighted-average current
loan-to-value ratio."

  WAFF And WALS Levels
  Rating level WAFF (%) WALS (%)
  AAA         43.60  29.26
  AA          37.42  22.60
  A            33.86  12.29
  BBB          29.82  7.33
  BB            25.47  4.65
  B               24.39  2.81

Credit enhancement levels have increased for all rated classes of
notes since our previous full review.

  Credit Enhancement Levels
  Class CE (%) CE as of previous review (%)
  A4    77.2   74.4
  Ma   65.2   62.2
  Mb   65.2   62.2
  Ba   37.0   34.6
  Bb   37.0   34.6
  Ca   22.8   20.7
  Cb   22.8   20.7
  D    9.3    7.5
  E    7.1    5.3
  CE--Credit enhancement.

The notes benefit from a liquidity facility and a reserve fund,
neither of which are amortizing as the respective cumulative loss
triggers have been breached.

S&P said, "Our conclusions on operational, legal, and counterparty
risk analysis remain unchanged since our previous full review. The
liquidity facility and bank account provider (Barclays Bank PLC;
A/Stable/A-1) breached the 'A-1+' downgrade trigger specified in
the transaction documents, following our lowering of its long- and
short-term ratings in November 2011. Because no remedial actions
were taken following our November 2011 downgrade, our current
counterparty criteria cap the maximum potential rating on the notes
in this transaction at our 'A' long-term issuer credit rating on
Barclays Bank.

"Our credit and cash flow analysis indicates that the available
credit enhancement for the class A4, Ma, Mb, Ba, Bb, Ca, and Cb
notes is commensurate with higher ratings than those currently
assigned. However, given the ratings on all the notes are capped at
the ICR on Barclays, we have affirmed our 'A (sf)' rating on these
classes of notes.

"Our analysis also indicates that the available credit enhancement
for the class D and E notes is commensurate with higher ratings
than those currently assigned. However, given the junior position
of these classes of notes in the capital structure, the presence in
the pool of loans with capitalized arrears (16.6%), and the tail
risk in the transaction due to the low pool factor and the high
percentage of interest-only loans, we did not upgrade the notes in
line with our cash flow results. We have therefore raised to 'BB+
(sf)' from 'B (sf)' our rating on the class D notes, and to 'B+
(sf)' from 'B- (sf)' our rating on the class E notes."

Newgate Funding 2006-1 is a U.K. RMBS transaction, which closed in
March 2006 and securitizes a pool of nonconforming loans secured on
first-ranking U.K. mortgages.

  Ratings List

  Newgate Funding PLC (Series 2006-1)
  
  Class    Rating to Rating from

  A4       A (sf)    A (sf)
  Ma       A (sf)    A (sf)
  Mb       A (sf)    A (sf)
  Ba       A (sf)   A (sf)
  Bb       A (sf)   A (sf)
  Ca        A (sf)   A (sf)
  Cb       A (sf)   A (sf)
  D      BB+ (sf)      B (sf)
  E       B+ (sf)  B- (sf)


PERFORM GROUP: Moody's Withdraws B2 CFR due to Debt Repayment
-------------------------------------------------------------
Moody's Investors Service has withdrawn Perform Group Limited's
ratings and outlook. At the time of withdrawal, there was no
instrument rating outstanding.

RATINGS RATIONALE

Moody's withdrew the ratings due to the repayment of the company's
existing debt obligations following the completion of the disposal
of its Content division to Vista Equity Partners on July 12, 2019.


Perform Group Limited is a part of Perform Group of companies,
rebranded as DAZN group in September 2018 which is focused on
monetizing sports rights in digital media.

LIST OF AFFECTED RATINGS

Withdrawals:

Issuer: Perform Group Limited

Corporate Family Rating, Withdrawn, previously rated B2

Probability of Default Rating, Withdrawn, previously rated B2-PD

Outlook Actions:

Issuer: Perform Group Limited

Outlook, Changed To Rating Withdrawn From Negative

PIONEER HOLDING: S&P Puts 'B-' ICR on Watch Pos. Over Wesco Merger
------------------------------------------------------------------
S&P Global Ratings placed its 'B-' issuer credit rating on Pioneer
Holding LLC (Pattonair) on CreditWatch with positive implications.
S&P also affirmed the 'B-' issue rating on Pattonair's senior
secured debt. The recovery rating remains '4', indicating S&P's
expectation of modest recovery (30%-50%; rounded estimate: 35%) in
the event of a default.

S&P said, "The CreditWatch placement is based on expected
improvements in the scale, scope, and diversity of the combined
business. In particular, we think the merger will reduce the high
degree of customer concentration that Pattonair has to Rolls-Royce.
We view this reduction as a key credit positive. The merger would
also expand and diversify the combined entity's customer base in
the U.S.

"We currently do not know what debt and equity tranches the final
capital structure will comprise. We expect Platinum Equity to
finance the transaction with a mix of debt and equity. Pattonair's
S&P Global Ratings-adjusted debt to EBITDA would need to be below
7.0x with operating cash flow (OCF) to debt above 5% on a pro forma
basis for us to consider a one-notch upgrade."

Under the agreement, which Wesco's board of directors has
unanimously approved, Wesco shareholders would receive $11.05 per
share in cash. Wesco will finance the transaction with a
combination of committed equity financing provided by affiliates of
Platinum Equity Capital Partners IV, L.P., and debt financing from
Bank of America Merrill Lynch.

Wesco has experienced inventory management and on-time delivery
issues within its Europe, Middle East, and Africa (EMEA) operations
that have harmed both revenues and earnings. S&P therefore thinks
the transaction will be geographically complementary to the
business, given Pattonair's experience and resources within the
EMEA region.

Wesco has historically had higher EBITDA margins than Pattonair.
However, previous cost reduction initiatives--including reducing
headcount, and internal issues forecasting revenue and inventory
needs--have resulted in lost business, poor customer service, and
weaker earnings.

The combined company would be the largest independent distributor
in a fragmented market with 2018 pro forma revenue of GBP1.6
billion, following Boeing's acquisition of KLX. The combined
company would be fairly balanced between commercial and defense,
with reduced single customer exposure and a strong market presence
in Europe and the U.S. Pro forma EBITDA margins without synergies
in 2018 were 8.5%.

The final rating outcome, following closing of the transaction,
will depend on the proposed capital structure and revenue and cost
synergies. S&P expects Wesco to pay off all of its rated debt as
part of the transaction.

S&P said, "The CreditWatch positive placement reflects our view
that, depending on the final terms of the proposed
merger--including the pro forma capital structure, profitability,
and cost synergies--we could raise the ratings on Pattonair by one
notch. This would depend on the merged group exhibiting pro forma
adjusted debt to EBITDA of less than 7.0x and OCF to debt of more
than 5%. We will resolve the CreditWatch once the transaction
closes, which we expect will be by the end of 2019. We will meet
with management to discuss the rationale for the merger and the
related benefits and risks to the combined company's competitive
position, strategic plans, and financial policy."

Pattonair is a global provider of distribution and value-add supply
chain management services and solutions. It offers high-volume
parts for engines and aircraft systems to original equipment
manufacturers and aftermarket customers in the aerospace and
defense industry. Its machine learning platform, AkrivisID,
provides part forecasting and inventory management services.

U.S.-based Pioneer Holding LLC owns 100% of Pattonair, the group's
main operating entity, via an intermediate holding company based in
the U.K. Pioneer Holding is owned by Platinum Equity, which
acquired Pattonair in October 2017 from Exponent Private Equity.

Wesco Aircraft Holdings Inc. distributes aerospace products and
provides supply chain management services to the aerospace industry
in North America and internationally. Its services include
distribution, supplier relationships management, quality assurance,
kitting, just-in-time delivery, chemical management, third-party
logistics or fourth-party logistics program, and point-of-use
inventory management. Wesco operates out of five segments:
hardware, chemicals, electronic components, bearings, and machined
parts and other.




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

[*] BOOK REVIEW: THE SUCCESSFUL PRACTICE OF LAW
-----------------------------------------------
Author: John E. Tracy
Publisher: Beard Books
Soft cover: 470 pages
List Price: $34.95

Order a copy today at https://is.gd/fSX7YQ

Originally published in 1947, The Successful Practice of Law still
ably serves as a point of reference for today's independent lawyer.
Its contents are based on a series of non-credit lectures given at
the University of Michigan Law School, where the author began
teaching after 26 years of law practice. His wisdom and experience
are manifest on every page, and will undoubtedly provide guidance
for today's hard-pressed attorney.

The Successful Practice of Law provides timeless fundamental
guidelines for a successful practice. It is intended neither as a
comprehensive reference work, nor as a digest of law. Rather, it is
a down-to-earth guide designed to help lawyers solve everyday
problems--a ready-to-tap source of tested proven methods of
building and maintaining a sound practice.

Mr. Tracy talks at length about developing a client base. He
contends that a firemen's ball can prove just as useful as an
exclusive party at the country club in making contacts with future
clients. He suggests seeking work from established firms as a way
to get started before seeking collections work out of desperation.

In his chapter on keeping clients, Mr. Tracy gives valuable lessons
in people skills: "(I)f a client tells you he cannot sleep nights
because of worry about his case, you will ease his mind very much
by saying, 'Now go home and sleep. I am the one to do the worrying
from now on.'" Rather than point out to a client that his legal
predicament is partly his fault, "concentrate on trying to work out
a program that will overcome his mistakes." He cautions against
speculating aloud to clients on what they could have done
differently to avoid current legal problems, lest they change their
stories and suddenly claim, falsely, that they indeed had done that
very thing. He also advises against deciding too quickly that a
client has no case: "After you have been in practice for a few
years you will be surprised to find how many seemingly desperate
cases can be won."

Mr. Tracy advises studying as the best use of downtime. He quotes
Mr. Chauncey M. Depew: "The valedictorian of the college, the
brilliant victors of the moot courts who failed to fulfill the
promise of their youth have neglected to continue to study and have
lost the enthusiasm to which they owed their triumphs on mimic
battle fields." Mr. Tracy advises against playing golf with one's
client every time he asks: "My advice would be to accept his
invitation the first time, but not the second, possibly the third
time but not the fourth."

Other topics discussed by Mr. Tracy, with the same practical, sound
advice, include fixing fees, drafting legal instruments, examining
an abstract of title, keeping an office running smoothly, preparing
a case for trial, and trying a jury case. But some of best counsel
he offers is the following: You cannot afford to overlook the fact
that you are in the practice of law for your lifetime; you owe a
duty to your client to look after his interests as if they were
your own and your professional future depends on your rendering
honest, substantial services to your clients. Every sound lawyer
will tell you that straightforward conduct is, in the end, the best
policy. That kind of advice never ages.

John E. Tracy was Professor Emeritus and Member of University of
Michigan Law School Faculty from 1930 to 1969. Professor Tracy
practiced law for more than a quarter century in Michigan,
New York City, and Chicago before joining the Law School faculty in
1930. He retired in 1950. He was born in 1880. He died in December
1969.



                           *********


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.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000.


                * * * End of Transmission * * *