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

                          E U R O P E

          Wednesday, September 18, 2019, Vol. 20, No. 187

                           Headlines



F R A N C E

ALTICE FRANCE: Moody's Rates New EUR2.5 Billion Secured Notes 'B2'
HORIZON HOLDINGS: S&P Puts 'B+' ICR on CreditWatch Positive


G E R M A N Y

INFINEON TECHNOLOGIES: S&P Assigns 'BB+' Rating on Hybrid Notes


I R E L A N D

ST. PAUL DAC II: S&P Assigns Prelim. B- Rating on Class F Notes
WEATHERFORD INT'L: Texas Judge Confirms Prepackaged Plan


I T A L Y

BORMIOLI PHARMA: Moody's Lowers CFR to B3, Outlook Stable
STEFANEL SPA: Admitted to Extraordinary Administration by Court


K A Z A K H S T A N

EURASIAN BANK: Moody's Assigns B2 Deposit Ratings, Outlook Stable


N E T H E R L A N D S

ARES EUROPEAN XII: Fitch Assigns B-sf Rating on Class F Notes
DRYDEN 48 EURO 2016: S&P Assigns Prelim. B-(sf) Rating on F-R Notes


N O R W A Y

NORWEGIAN AIR: Strikes Deal to Restructure GBP300MM+ Debts


R U S S I A

ALMAZERGIENBANK JSC: Fitch Affirms 'B+' LongTerm IDRs


S P A I N

BOLUDA TOWAGE: Fitch Assigns BB(EXP) LongTerm IDR
DEOLEO SA: S&P Lowers ICR to 'CCC-', On CreditWatch Negative
NAVIERA ARMAS: Moody's Lowers CFR to B2, Outlook Negative


S W I T Z E R L A N D

SCHMOLZ + BICKENBACH: S&P Lowers ICR to 'B-' on Profit Warning


U K R A I N E

KHARKOV CITY: Fitch Raises LT IDRs to B, Outlook Positive
KYIV CITY: Fitch Raises LT IDRs to B, Outlook Positive
LVIV CITY: Fitch Raises LongTerm IDRs to B, Outlook Positive


U N I T E D   K I N G D O M

BRITAX GORUP: Moody's Lowers CFR to Caa3, Outlook Negative
EDDIE STOBART: In Talks with Lenders, Mulls Equity Raising
SIRIUS MINERALS: Pulls Junk Bond Issue, Market Value Halved
VTB CAPITAL: Moody's Withdraws Ba3 LongTerm Issuer Rating
WRIGHTBUS: Lord Bamford in Talks to Rescue Business


                           - - - - -


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F R A N C E
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ALTICE FRANCE: Moody's Rates New EUR2.5 Billion Secured Notes 'B2'
------------------------------------------------------------------
Moody's Investors Service, assigned B2 ratings to the proposed
EUR2,000 million equivalent and EUR500 million senior secured notes
due 2027 and 2024, respectively, to be issued by Altice France
S.A., a subsidiary of Altice Luxembourg S.A. The outlook is
negative.

Proceeds from this debt issuance will be used to fully redeem
EUR1,000 million equivalent of Altice Luxembourg 2022 senior notes
and to fully repay Altice France's 2024 senior secured notes.
Following the refinancing, no major debt maturity will be due at
group level until 2023, when EUR2,300 million equivalent
outstanding at Altice International S.a.r.l. (B2, negative) will
mature.

"The refinancing will further extend Altice's group debt maturity
profile with a weighted average maturity of approximately 7 years
and no major maturity before 2023, at the consolidated Altice
Luxembourg level. Moreover, the refinancing will bring substantial
interest savings which will support free-cash-flow generation from
2020 onwards," says Ernesto Bisagno, a Moody's VP-Senior Credit
Officer and lead analyst for Altice.

"However, reported leverage at Altice France will increase from
3.9x to 4.1x as the entity will upstream EUR1,000 million of
proceeds from this issuance to its parent, Altice Luxembourg," adds
Mr Bisagno.

RATINGS RATIONALE

The B2 rating of Altice France's proposed senior secured notes is
at the same level as the company's B2 Corporate Family Rating
(CFR). This reflects the pari-passu ranking with Altice France's
pre-existing senior secured notes, bank credit facilities
(including RCF) and trade payables.

While the refinancing will bring annual run-rate interest savings
of approximately EUR60 million, supporting free-cash-flow
generation from 2020 onwards, the transaction is leverage neutral
at Altice Luxembourg level. Moody's expects that debt reduction as
part of the infrastructure sales together with ongoing improvements
in operating performance in its key markets will lead to a
Moody's-adjusted leverage of around 5.5x in 2019, under IFRS 16,
from 6.5x in 2018 for Altice Luxembourg.

While the refinancing is leverage neutral at Altice Luxembourg
level, Moody's adjusted leverage will increase from 4.4x to 4.6x at
Altice France level, as a large part of the proceeds from this
issuance will be upstreamed to its parent company.

Altice France S.A.'s (owner of SFR) B2 corporate family rating
primarily reflects (1) the company's position as one of the leading
convergent companies in the competitive French market; (2) its
scale and ranking as the second-largest telecom company in France;
(3) its integrated business profile and relatively well invested
networks, after a history of underinvestment; (4) ongoing operating
performance turn-around after years of revenue declines; (5) the
competitive, although easing, nature of the French telecom market;
and, (6) adequate liquidity, with no maturities until 2024.

Moody's notes that the financial strength of Altice France is
weakened by the overhang from Altice Luxembourg's high leverage and
the potential use of Altice France's leverage capacity for
corporate purposes including dividend distributions. Moody's
considers the group's financial policy to be aggressive.

RATIONALE FOR THE NEGATIVE OUTLOOK

Despite the ongoing operating improvements in its key markets, the
ratings of Altice France and Altice Luxembourg continue to be
constrained by their high leverage, with a year end 2019 Moody's
adjusted leverage, inclusive of IFRS 16, expected at 4.4x and 5.5x,
respectively, and by the complex financial structure of the group
with no expectation of positive free-cash-flow generation before
2020.

The rating agency believes that the group's management will be
stretched as the company continues to look into asset disposals to
reduce debt.

Moody's also notes that Altice's capital structure has a modest
equity cushion, estimated at around 15% of the group's enterprise
value.

WHAT COULD MOVE THE RATING UP/DOWN

Moody's notes that the financial strength of Altice France is
weakened by the overhang from Altice Luxembourg's high leverage and
the potential use of Altice France's leverage capacity for
corporate purposes including dividend distributions. As a
consequence, the triggers for upward and downward pressure on the
rating of Altice France are aligned with those at Altice
Luxembourg.

Downward pressure on the ratings may develop if Altice Luxembourg's
underlying operating performance weakens beyond current
expectations, with sustained declines in revenues and deteriorating
KPIs (including churn and ARPU) in France and Portugal, leading to
a deterioration in the group's credit fundamentals, such as (1)
Moody's adjusted leverage remaining consistently above 5.5x; (2)
there is a significant deterioration in free cash flow generation;
(3) there are material setbacks in achievement of synergies in
existing company businesses, (4) there are material debt-financed
acquisitions at either the Altice Luxembourg or Altice Europe N.V.
level; or (5) there are signs of a deterioration in liquidity.

Moody's sees no near-term upward pressure on the rating, although
such pressure may develop over time if the company demonstrates
sustained improvement in underlying revenues and KPIs (e.g. churn,
ARPU) with growing EBITDA in main markets, especially in France,
leading to an improvement in credit metrics such as: (1) Moody's
adjusted leverage sustainably below 5.0x; (2) significant
improvement in free cash flow generation on a consistent basis; and
(3) a strong liquidity profile with no refinancing risks.

LIST OF AFFECTED RATINGS

Assignments:

Issuer: Altice France S.A.

Backed Senior Secured Regular Bond/Debenture, Assigned B2

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was
Telecommunications Service Providers published in January 2017.

COMPANY PROFILE

Altice France S.A. was formed in November 2014 when Numericable
Group S.A., the only large cable operator in France, completed the
acquisition of SFR, France's largest alternative communications
provider. Altice France is ultimately wholly owned by Altice Europe
N.V. (formerly known as Altice N.V.), an Amsterdam-listed company
investing in telecommunications and cable assets. For the 12 months
ended June 2019, Altice France reported revenue and adjusted EBITDA
(as defined by the company and proforma for the group
reorganisation) of EUR10.3billion and EUR3.9 billion,
respectively.


HORIZON HOLDINGS: S&P Puts 'B+' ICR on CreditWatch Positive
-----------------------------------------------------------
S&P Global Ratings placed the 'B+' ratings on France-based glass
packaging producer Horizon Holdings I (Verallia) on CreditWatch
with positive implications.

The CreditWatch placement follows Verallia's announcement that its
parent intends to proceed with an IPO, subject to favorable market
conditions. If successful, the IPO is likely to result in a slight
reduction in the company's leverage, as well as a more transparent
financial policy. The company has publicly stated that it would aim
for a reported net leverage of 2.0x-3.0x (3.2x-4.2x on an S&P
Global Ratings-adjusted basis) over 2020-2022. It would also pay
about 40% of its net income as dividends, with minimum annual
dividend payments of EUR100 million over 2020-2022.

Upon completion of the IPO, S&P expects the current
sponsors--Apollo Global Management (90% of shares before the IPO)
and Bpifrance Participations (10%)--to retain majority control of
company.

Verallia also announced its intention to refinance its senior
secured facilities--comprising a EUR1.125 billion term loan B,
EUR550 million term loan C, and EUR325 million undrawn revolving
credit facility (RCF)--with EUR2 billion unsecured facilities.
These new facilities would comprise a EUR1.5 billion term loan A
and a EUR500 million RCF. The refinancing depends upon the
successful completion of the IPO. As part of the refinancing,
Verallia would also issue an additional EUR124 million commercial
paper and use some of the cash from its balance sheet for debt
repayments.

S&P said, "We expect the parent to repay the outstanding EUR350
million PIK toggle notes (owned by the sponsors) with the proceeds
from the IPO. The parent has not yet released the expected amount
of IPO proceeds.

"We expect that the proposed operations would reduce Verallia's
adjusted debt to EBITDA to 4.3x and improve funds from operations
to debt to about 17% by year-end 2019.

"We view positively these transactions because we think that
Verallia, as a listed company, will adhere to a more conservative
financial policy and maintain debt to EBITDA below 4.5x.

"The CreditWatch reflects a one-in-two likelihood of a one-notch
raising of the issuer credit rating. We expect to resolve the
CreditWatch in the coming three months or when the IPO has been
finalized."




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INFINEON TECHNOLOGIES: S&P Assigns 'BB+' Rating on Hybrid Notes
---------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue ratings to the two
tranches of hybrid notes Germany-based semiconductor manufacturer
Infineon Technologies AG (BBB/Watch Neg/--) plans to issue.
Infineon will use the proceeds to partly finance its acquisition of
Cypress Semiconductor Corp. The subordinated notes have no maturity
date and carry a fixed interest rate until the first reset date.
S&P expects that the amount of issued hybrid notes will not exceed
15% of the group's capitalization in the next five years.

The proposed notes have a non-call period from issuance of 5.25
years for tranche one and 8.25 for tranche two. The notes are
callable thereafter, and are optionally deferrable and
subordinated. According to the documentation, the notes can be
redeemed early in the event of an "acquisition event," which would
occur if Infineon failed to close the Cypress acquisition.

S&P said, "We consider that the proposed hybrid notes will have
intermediate equity content until 2025 for tranche 1, and until
2028 for tranche 2, once Infineon closes the acquisition or waives
its right to call the notes due to having not closed the
acquisition. Until that time, we assess the equity content as
minimal, since we do not view the hybrid notes as a permanent part
of Infineon's capital structure."

The two-notch difference between S&P's 'BB+' issue rating on the
proposed hybrid notes and its 'BBB' issuer credit rating (ICR) on
Infineon comprise:

-- One notch for the proposed notes' subordination because the ICR
on Infineon is investment grade; and

-- An additional notch for the optional deferability of interest.

S&P said, "This notching approach takes into account our view that
there is a relatively low likelihood that Infineon will defer
interest payments. Should our view change, we may significantly
increase the number of notches we deduct from the ICR to derive the
issue rating.

"We understand that the interest to be paid on the proposed notes
will increase by 25 basis points (bps) five years after the first
reset date, and by an additional 75 bps 20 years after the first
reset date. We consider the cumulative 100 bps to be a moderate
step-up that creates an incentive for Infineon to redeem the
instruments at that time."

Key factors in S&P's assessment of the notes' permanence

Although the proposed notes are perpetual, Infineon can redeem
tranche one in December 2024, that is, 5.25 years after issuance.
The proposed tranche two notes can be redeemed in December 2027, or
8.25 years after the issuance. If this occurs, the company intends
to replace the proposed instruments, although it is not obliged to
do so.

Key factors in S&P's assessment of the notes' subordination

The proposed securities are deeply subordinated. They will rank
ahead of Infineon's outstanding share capital, pari passu with
other subordinated claims, and behind all other claims.

Key factors in S&P's assessment of the instrument's deferability

S&P said, "In our view, Infineon's option to defer payment on the
proposed securities is discretionary. This means that Infineon may
elect not to pay accrued interest on an interest payment date
because it has no obligation to do so. However, any outstanding
deferred interest payment would have to be settled in cash if an
equity dividend or interest on equal-ranking securities is paid, or
if common shares or equal-ranking securities are repurchased.

"We still consider the notes' deferability to be discretionary
because, once the issuer has settled the deferred amount, it can
choose to defer payment on the next interest payment date. The
issuer retains the option to defer coupons throughout the life of
the notes. The deferred interest on the proposed securities is cash
cumulative and not compounding."




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ST. PAUL DAC II: S&P Assigns Prelim. B- Rating on Class F Notes
---------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to St.
Paul's CLO II DAC's class X, A, B, C, D, E, and F notes (the 2019
notes). At closing, the issuer will also issue unrated subordinated
notes.

The transaction is a reset of St. Paul's CLO II.

The preliminary ratings assigned to the 2019 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.

-- The transaction's legal structure, which S&P expects to be
bankruptcy remote.

Under the transaction documents, the rated notes will pay quarterly
interest unless there is a frequency switch event. Following this,
the notes will permanently switch to semiannual payment. The
portfolio's reinvestment period will end approximately four and
half years after closing.

At the time of assigning final ratings on the closing date, the
issuer will use the issue proceeds of the 2019 notes to redeem the
original notes at their full par amount plus accrued interest.

S&P said, "In our cash flow analysis, we used the EUR401 million
target par amount, the covenanted weighted-average spread (3.75%),
the covenanted weighted-average coupon (4.50%; where applicable),
and the weighted-average recovery rates at each rating level.

"We applied various cash flow stress scenarios, using four
different default patterns, in conjunction with different interest
rate stress scenarios for each liability rating category.

"At closing, we anticipate that the documented downgrade remedies
will be in line with our current counterparty criteria.

"At closing, we consider that the issuer will be bankruptcy remote,
in accordance with our legal criteria.

"Under our structured finance sovereign risk criteria, we consider
that the transaction's exposure to country risk is sufficiently
mitigated at the assigned preliminary ratings.

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe our preliminary ratings
are commensurate with the available credit enhancement for the
class A to E notes. Our credit and cash flow analysis indicates
that the available credit enhancement could withstand stresses
commensurate with the same or higher rating levels than those we
have assigned. However, as the CLO is still in its reinvestment
phase, during which the transaction's credit risk profile could
deteriorate, we have capped our assigned preliminary ratings on the
notes.

"For the class F notes, our credit and cash flow analysis indicates
that the available credit enhancement could withstand stresses that
are commensurate with a 'CCC+' rating. However, following the
application of our 'CCC' rating criteria, we have assigned a 'B-'
rating to this class of notes."

The one notch of ratings uplift (to 'B-') from the model generated
results (of 'CCC+'), reflects several key factors, including:

-- Credit enhancement comparison: S&P noted that the available
credit enhancement for this class of notes is in the same range as
other CLOs that it rates, and that have recently been issued in
Europe.

-- Portfolio characteristics: The CLO manager has identified most
of the assets in this reset portfolio. Following S&P's credit
analysis, it concluded that there were no anomalies in the
portfolio. At the same time, the average credit quality of the
portfolio is similar compared to other recent CLOs.

-- S&P's model generated portfolio default risk at the 'B-' rating
level at 26.12% (for a five-year portfolio with an average credit
quality of 'B') versus 15.5% if it was to consider a long term
sustainable default rate of 3.1% for five years which would result
in a target default rate of 15.5%.

-- S&P also noted that the actual portfolio is generating higher
spreads and recoveries versus the covenanted thresholds that it has
modeled in its cash flow analysis.

S&P said, "For us to assign a rating in the 'CCC' category, we also
assessed if; a) whether the tranche is vulnerable to non-payments
in the near future, b) if there is a one in two chances for this
note to default, and c) if we envision this tranche to default in
the next 12-18 months.

"Following this analysis, we consider that the available credit
enhancement for the class F notes is commensurate with the 'B-
(sf)' rating assigned."

  Ratings List

  St. Paul's CLO II DAC

  Class    Prelim. rating    Amount
                           (mil. EUR)
  X         AAA (sf)        2.00
  A          AAA (sf)      245.00
  B          AA (sf)        44.90
  C          A (sf)         24.90
  D          BBB (sf)       23.30
  E          BB (sf)        22.90
  F          B- (sf)        11.20
  Sub notes  NR             62.0

NR -- Not rated. S&P's ratings on the class X, A, and B notes
address timely payment of interest and ultimate payment of
principal. S&P's ratings on the class C to F address ultimate
interest and principal payments.


WEATHERFORD INT'L: Texas Judge Confirms Prepackaged Plan
--------------------------------------------------------
Judge David R. Jones of the U.S. Bankruptcy Court for the Southern
District of Texas approved the disclosure statement and confirmed
the second amended joint prepackaged plan of reorganization for
Weatherford International PLC and its debtor affiliates.

"The plan allows Weatherford to emerge from bankruptcy a more
competitive company," Weatherford attorney Lisa Lansio, Esq., told
the judge, Tom Corrigan of The Wall Street Journal related.

Courts in Ireland and Bermuda also must approve the debt-cutting
plan before it can take effect, according to Ms. Lansio, the
Journal further related.

"We obviously don't expect to have any issues with those
proceedings," the Journal cited Ms. Lansio as saying in court.

As a result of the Prepetition Solicitation, the Debtors have
received votes in favor of the Plan from 99.79% in amount of the
Class 7 Prepetition Notes Claims that voted and 97.53% in number of
Holders of Prepetition Notes Claims that voted.  As a result of the
Postpetition Solicitation, the Debtors have received votes in favor
of the Plan from 79.38% in amount of the Class 10 Existing Common
Stock Claims that voted.

The Debtors modified their Plan before the Confirmation Hearing and
the Court approved the modifications finding that the Plan
Modifications satisfy the requirements of Section 1127 of the
Bankruptcy Code and Bankruptcy Rule 3019.

The Debtors also filed Plan Supplement, including their First
Amended Plan of Reorganization; Redline of First Amended Plan of
Reorganization to Original Plan of Reorganization; Restructuring
Support Agreement; First Amendment to the Restructuring Support
Agreement; and Second Amendment to the Restructuring Support
Agreement.  Full-text copies of the Plan Supplement are available
at https://tinyurl.com/y5lsmy5j from PrimeClerk.com at no charge.

GAMCO Asset Management, Inc. and its affiliates, on behalf of
itself and all similarly situated common shareholders of
Weatherford, said it is investigating filing a class action against
certain of Weatherford's directors and officers for violations of
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on
behalf of themselves and all other persons or entities that
purchased or otherwise acquired the publicly traded securities of
Weatherford during the period November 1, 2017 through May 10,
2019, inclusive, and were damaged thereby.

GAMCO said its Potential Securities Action does not intend to name
Weatherford or any other Debtor subject to the automatic stay as a
defendant.  GAMCO, however, pointed out that the Plan contains a
broad-definition of "Released Parties" for purposes of the general
release and related injunction that could impact the Potential
Securities Action.  Specifically, the Plan's definition of Released
Parties, which includes "Related Person" comprised of "current and
former officers, directors" and other corporate personnel, could
potentially be invoked by some or all of the directors and officers
who GAMCO is investigating for its Potential Securities Action to
claim they are released under the Plan.

GAMCO objects to the Plan to the extent that it does not contain
the terms of the Equity Settlement and thus does not provide an
adequate description of the recovery to existing shareholders.
GAMCO further objects to the Plan to the extent the third-party
release and injunction purport to bar claims against the directors
and officers GAMCO is investigating for its Potential Securities
Action.

Weatherford, struggling with steep debt for years, has spent much
of the past year selling off assets to right its balance sheet, the
Journal noted. The company hasn't reported an annual profit since
2011, the Journal said.

"I know what Weatherford is, and I know the issues Weatherford
faces in the business it's in," Judge Jones said at the conclusion
of the hearing, the Journal related.  The judge said Weatherford
now has a responsibility to be a good corporate citizen in exchange
for the second chance it is getting, the Journal added.

"I expect you to remember this," the Journal cited Judge Jones as
saying.

A full-text copy of the Confirmation Order is available at
https://tinyurl.com/y253vwza from PrimeClerk.com at no charge.

Counsel for GAMCO:

     Andrew J. Entwistle, Esq.
     ENTWISTLE & CAPPUCCI LLP
     500 W. 2nd Street, Suite 1900-16
     Austin, Texas 78701
     Telephone: (512) 710-5960

                        About Weatherford

Weatherford (NYSE: WFT) (OTC-PINK:WFTIQ), an Irish public limited
company and Swiss tax resident -- http://www.weatherford.com/-- is
a multinational oilfield service company providing innovative
solutions, technology and services to the oil and gas industry.
The Company operates in over 80 countries and has a network of
approximately 650 locations, including manufacturing, service,
research and development and training facilities and employs
approximately 26,000 people.

Weatherford reported a net loss attributable to the company of
$2.81 billion for the year ended Dec. 31, 2018, compared to a net
loss attributable to the company of $2.81 billion for the year
ended Dec. 31, 2017.  

As of March 31, 2019, Weatherford had $6.51 billion in total
assets, $10.62 billion in total liabilities, and a total
shareholders' deficiency of $4.10 billion.

On July 1, 2019, Weatherford International plc, Weatherford
International, LLC, and Weatherford International Ltd. sought
Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 19-33694).

The Hon. David R. Jones is the case judge.

The Debtors tapped Hunton Andrews Kurth LLP and Latham & Watkins
LLP as counsel; Alvarez & Marsal North America LLC as financial
advisor; Lazard Freres & Co. LLC as investment banker; and Prime
Clerk LLC as claims agent.

Henry Hobbs Jr., acting U.S. trustee for Region 7, on July 17,
2019, appointed three creditors to serve on an official committee
of unsecured creditors in the Chapter 11 cases.  The law firms of
Ropes & Gray LLP and Norton Rose Fulbright US LLP have been
retained as counsel to the Committee.




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BORMIOLI PHARMA: Moody's Lowers CFR to B3, Outlook Stable
---------------------------------------------------------
Moody's Investors Service downgraded Bormioli Pharma S.p.A.'s
corporate family rating to B3 from B2, its probability of default
rating to B3-PD from B2-PD and the rating on the company's EUR280
million senior secured floating rate notes due 2024 to B3 from B2.
Bormioli Pharma is an Italian plastic and glass pharmaceutical
packaging company. The outlook is stable.

"The downgrade to B3 is driven by a weaker than expected
performance at EBITDA level that combined with higher drawn debt
led Moody's adjusted leverage to increase to 6.8x in June 2019,
well above our downward trigger of 6.0x. In addition, we expect
that leverage will further increase to around 7.0x by December 2019
as the planned capital spending for the new furnace in San Vito and
the major refurbishment at Bergantino will be partly funded with
debt," says Donatella Maso, Moody's lead analyst for Bormioli
Pharma.

RATINGS RATIONALE

The downgrade to B3 from B2 reflects the steady rise in Moody's
adjusted gross leverage to 6.8x as of LTM June 2019 from 5.9x in
2018, driven by weaker than expected operating performance at
EBITDA level and increased debt due to higher drawings under the
non-recourse factoring program and new committed bank facilities.
Moody's expects that leverage will further increase to around 7.0x
at year-end because additional debt will be drawn to fund planned
capital spending and that the deleveraging will be slow thereafter.
This elevated level of leverage is more commensurate with a B3
rating considering the scale of the company and its niche product
focus.

On September 11, 2019, the company announced it had entered a
binding agreement for the acquisition of R&G Beteilingungs GmbH
(R&G), a German plastic and glass pharmaceutical packaging company.
While this acquisition, expected to complete in Q4, is credit
positive for the company's scale and business profile because it
will add EUR26 million of revenue, EUR4 million of EBITDA and it
will allow the company to access new customers and geographies, the
impact on leverage is negligible because the acquisition will be
partly funded with debt.

Bormioli Pharma's standalone EBITDA (as adjusted by Moody's) has
been adversely impacted by lower volumes from a few key customers
mainly in the glass segment, and pressure from rising energy costs,
partially offset by increased selling prices and increased
production activity in plastic. Lower volumes in the glass segment
have been primarily driven by customers's inventory focus but also
by the major refurbishment of the soda amber furnace in Bergantino
that has reduced the available volumes to be sold, and will only be
recovered in 2020. As a result, LTM June 2019 Moody's adjusted
EBITDA stood at EUR49 million, below the EUR52 million EBITDA
achieved on average over the period 2016-2018.

While EBITDA will likely remain around EUR50 million in 2019 before
the impact of the acquisition, the rating agency expects that some
of the management's strategic initiatives such as additional
capacity built in San Vito for soda glass, the new commercial
set-up in Pennsylvania and synergies from the acquisition, could
translate in modest growth starting from 2020, leading to a gradual
deleveraging towards 6.4x. Furthermore, Bormioli Pharma's free cash
flow will benefit from the lack of major plant refurbishments in
2020-2021 and will likely turn positive.

Moody's would like to draw attention to certain governance
considerations with respect to Bormioli Pharma, which is owned by
private equity firm Triton. As is often the case in highly levered,
private equity sponsored deals, owners have a high tolerance for
leverage/risk and this has been factored into its assessment of the
credit risk associated with Bormioli.

Despite the deterioration in leverage metrics, Bormioli Pharma's
liquidity position remains adequate for its near-term needs. At the
end of June 2019, the company had (1) EUR33 million of cash on
balance sheet; (2) full availability under its EUR40 million of
super senior revolving credit facility (RCF); (3) EUR10 million of
new committed bank lines; (4) EUR21 million of new uncommitted bank
lines still undrawn; and (5) certain factoring arrangements, which
are expected to be renewed on an ongoing basis. These sources of
liquidity are deemed sufficient to support the EUR40 million
capital expenditures planned for the remainder of 2019 for the new
furnace in San Vito, the refurbishment of the Bergantino plant as
well as inventory build-up and extraordinary costs for corporate
reorganization.

The super senior RCF has one springing financial covenant (net
leverage ratio), set with large headroom at 7.9x versus current
reported leverage of 5.0x, to be tested on quarterly basis when the
RCF is drawn by more than 35%. Moody's expects Bormioli Pharma not
to test the covenant as the RCF will be mostly undrawn in the next
12 to 18 months.

STRUCTURAL CONSIDERATIONS

The B3-PD PDR is in line with the CFR. This is based on a 50%
recovery rate, as is typical for transactions with bank debt and
bonds. The B3 rating on the EUR280 million senior secured floating
rate notes due 2024 is also in line with the CFR, because this
instrument represents the majority of the capital structure. The
notes are guaranteed by Bormioli Pharma (main operating company)
but are structurally subordinated to the liabilities of Bormioli
France and the other operating subsidiaries. The notes share the
same security as the super senior RCF consisting in pledges over
stocks and certain operating bank accounts, which is considered
weak. However, the notes rank junior to the super senior RCF upon
enforcement under the provisions of the intercreditor agreement.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's view that the company will be
able to return to growth in 2020-2021 in its core business and
gradually delever while maintaining an adequate liquidity profile.
The stable outlook also assumes that the company will not lose any
material customer and it will not engage in material debt-funded
acquisitions or shareholder distributions.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on the ratings is unlikely in the near term but
could arise over time if (1) the company demonstrates a positive
growth trajectory; (2) its Moody's adjusted Debt/EBITDA falls below
6.0x on a sustainable basis; and (3) its Free Cash Flow to Debt
stays positive.

Conversely, downward ratings pressure could be considered if (1)
Moody's adjusted Debt/EBITDA rises above 7.0x on a sustainable
basis; (2) the Free Cash Flow remains negative for a prolonged
period after 2019; or (3) if liquidity concerns arise.

LIST OF AFFECTED RATINGS:

Downgrades:

Issuer: Bormioli Pharma S.p.A.

Corporate Family Rating, Downgraded to B3 from B2

Probability of Default Rating, Downgraded to B3-PD from B2-PD

Backed Senior Secured Regular Bond/Debenture, Downgraded to B3 from
B2

Outlook Actions:

Issuer: Bormioli Pharma S.p.A.

Outlook, Remains Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Packaging
Manufacturers: Metal, Glass, and Plastic Containers published in
May 2018.

COMPANY PROFILE

Headquartered in Italy, Bormioli Pharma is an European producer of
plastic and glass pharmaceutical packaging serving approximately
900 customers in 120 countries. Bormioli has five manufacturing
facilities, four in Italy and one in France and had around 1,000
employees. For the last twelve months to June 30, 2019, Bormioli
Pharma generated EUR229 million of revenue and EUR51 million of
company adjusted EBITDA (or EUR49 million as adjusted by Moody's).


STEFANEL SPA: Admitted to Extraordinary Administration by Court
---------------------------------------------------------------
Reuters reports that Stefanel SpA said on Sept. 16 the court in
Venice had admitted the company to the procedure of extraordinary
administration.

As reported by the Troubled Company Reporter-Europe on June 7,
2019, Claudia Cristoferi at Reuters related that shares in Stefanel
were suspended on June 6 until further notice after the troubled
Italian clothing group said it would apply for special
administration under bankruptcy law.  In recent years, the company
has been heavily hit by increasing competition from fast-fashion
giants and e-commerce, Reuters said.  In 2017, after a debt
restructuring, investment fund Attestor Capital took control of the
financially stressed company through a capital increase that
diluted the stake of founder Giuseppe Stefanel to 16%, Reuters
disclosed.  According to Reuters, the re-launch failed to succeed
and Stefanel, which has been without a CEO since July last year,
decided in December to seek creditor protection.  It had time until
mid-June to present a restructuring plan to a bankruptcy court but
it couldn't reach agreement with the holders of its EUR40 million
debt -- creditor banks and Attestor itself, Reuters stated.




===================
K A Z A K H S T A N
===================

EURASIAN BANK: Moody's Assigns B2 Deposit Ratings, Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service assigned the following ratings to
Kazakhstan-based Bank Eurasian Bank: long-term local and foreign
currency bank deposit ratings of B2, Baseline Credit Assessment of
b3 and Adjusted BCA of b3, long-term Counterparty Risk Assessment
of B1(cr), long-term Counterparty Risk Ratings of B1, short-term
bank deposit ratings and CRRs of Not Prime and short-term CR
Assessment of Not Prime(cr). The outlook assigned to the long-term
deposit ratings and overall entity outlook is stable.

Moody's has also assigned a national scale long-term bank deposit
rating of Ba1.kz and national scale long-term CRR of Baa2.kz to
Eurasian Bank.

Eurasian Bank's deposit ratings incorporate high probability of
government support.

According to the National Bank of Kazakhstan (NBK), Eurasian Bank
is the ninth-largest Kazakh bank as of August 1, 2019, with a 4%
market share in total banking assets. The bank's strategy is to
develop as a universal bank, focusing on servicing retail and
corporate clients.

RATINGS RATIONALE

Eurasian Bank's BCA of b3 is primarily constrained by its weak
asset quality, high related parties exposure and low profitability.
At the same time, the bank's BCA is underpinned by sufficient loss
absorption capacity and strong liquidity metrics.

The bank's asset quality remains weak: problem loans (defined as
Stage 3 loans and POCI under IFRS 9) accounted for 22% of total
loans at end-2018. Going forward, Moody's expects that the
continuing problem loan workout process and new loan issuances will
dilute the legacy problem loans.

The bank's BCA of b3 is constrained by a number of weaknesses in
its risk governance structure as identified by Moody's, such as
high lending to related parties. At end-2018, exposure to related
parties accounted for the majority of tangible common equity giving
rise to potential asset quality concerns, which reflected in a
one-notch downward adjustment to the bank's BCA.

The bank's performance has been weak as a result of high
provisioning charges, as the bank continues to create provisions
for its legacy loan portfolio. Moody's does not expect significant
improvement in profitability in the next 12 months due to still
significant amount of reserves for loan losses which need to be
created under the conditions of the financial rehabilitation
program. At the same time, the bank's pre-provision income is
strong, supported by strong net interest margin (over 5%) and fees
(over 2% of average total assets), while its efficiency is good
with cost to income ratio below 40% in H1 2019. In the longer term,
this will result in much better profitability as the provisioning
charges decrease.

The bank reported Tangible Common Equity to Risk Weighted Asset
ratio of around 8% at H1 2019 while its strong pre-provision income
significantly mitigates the additional provisioning charges.

Eurasian Bank's liquidity cushion has been strong with liquid
assets exceeding 35% of tangible assets at H1 2019. Moody's expects
the bank's liquidity cushion to remain high despite its partial
utilization in the growing loan portfolio.

HIGH GOVERNMENT SUPPORT

Eurasian Bank's deposit ratings of B2 incorporate one notch of
uplift from the bank's b3 BCA, which reflects Moody's assessment of
a high probability of support from the Kazakh government in case of
need. This assessment is based on the history of support reflected
in the inclusion of Eurasian Bank in National Bank of Kazakhstan's
financial rehabilitation programme along with other systemically
important banks. In addition, the bank has notable market shares in
total banking assets (4%) and in retail customer deposits (5%) as
of August 1, 2019.

STABLE OUTLOOK

Eurasian Bank's long-term ratings carry a stable outlook which
reflects Moody's expectations of relative stability of the key
credit metrics like asset quality, capital and liquidity in the
next 12-18 months.

COUNTERPARTY RISK ASSESSMENT

Eurasian Bank's global scale CR Assessment is positioned at
B1(cr)/NP(cr). Such assessments are opinions of how counterparty
obligations are likely to be treated if a bank fails and relates to
a bank's contractual performance obligations (servicing),
derivatives (e.g., swaps), letters of credit, guarantees and
liquidity facilities. Senior obligations represented by the CR
Assessments are more likely to be preserved to limit contagion,
minimize losses and avoid disruption of critical functions.

COUNTERPARTY RISK RATINGS

Eurasian Bank's global CRRs are positioned at B1, two notches above
the bank's Adjusted BCA. CRRs are opinions of the ability of
entities to honor the uncollateralized portion of non-debt
counterparty financial liabilities (CRR liabilities) and also
reflect the expected financial losses in the event such liabilities
are not honored. CRR liabilities typically relate to transactions
with unrelated parties. Examples of CRR liabilities include the
uncollateralized portion of payables arising from derivatives
transactions and the uncollateralized portion of liabilities under
sale and repurchase agreements. CRRs are not applicable to funding
commitments or other obligations associated with covered bonds,
letters of credit, guarantees, servicer and trustee obligations,
and other similar obligations that arise from a bank performing its
essential operating functions.

WHAT COULD MOVE THE RATINGS UP/DOWN

Eurasian Bank's ratings could be upgraded if it 1) considerably
improves profitability, 2) creates sufficient reserves for the loan
portfolio and 3) improves asset quality. The ratings could be
downgraded in case of materialization of asset quality problem
beyond Moody's expectations. Moody's reassessment of government
support to lower levels may lead to downward pressure on the
ratings.

PRINCIPAL METHODOLOGY

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

LIST OF ASSIGNED RATINGS

Issuer: Eurasian Bank

Assignments:

LT Bank Deposits, Assigned B2, Stable Outlook Assigned

ST Bank Deposits, Assigned Not Prime

Adjusted Baseline Credit Assessment, Assigned b3

Baseline Credit Assessment, Assigned b3

LT Counterparty Risk Assessment, Assigned B1(cr)

ST Counterparty Risk Assessment, Assigned Not Prime(cr)

LT Counterparty Risk Ratings, Assigned B1

ST Counterparty Risk Ratings, Assigned Not Prime

NSR LT Bank Deposits, Assigned Ba1.kz

NSR LT Counterparty Risk Rating, Assigned Baa2.kz

Outlook Action:

Stable Outlook Assigned



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

ARES EUROPEAN XII: Fitch Assigns B-sf Rating on Class F Notes
-------------------------------------------------------------
Fitch Ratings has assigned final ratings to Ares European CLO XII
B.V.

The transaction is a cash flow collateralised loan obligation of
mainly European senior secured obligations. Net proceeds from the
issue of the notes are used to fund a portfolio with a target
amount of EUR450 million. The portfolio is managed by Ares European
Loan Management LLP. The CLO features a 4.6-year reinvestment
period and a 8.5-year weighted average life (WAL).

ARES EUROPEAN CLO XII B.V.

Class A;    LT AAAsf  New Rating;  previously at AAA(EXP)sf
Class B-1;  LT AAsf   New Rating;  previously at AA(EXP)sf
Class B-2;  LT AAsf   New Rating;  previously at AA(EXP)sf
Class C;    LT Asf    New Rating;  previously at A(EXP)sf
Class D;    LT BBB-sf New Rating;  previously at BBB-(EXP)sf
Class E;    LT BB-sf  New Rating;  previously at BB-(EXP)sf
Class F;    LT B-sf   New Rating;  previously at B-(EXP)sf
Sub. Notes; LT NRsf   New Rating;  previously at NR(EXP)sf
Class X;    LT AAAsf  New Rating;  previously at AAA(EXP)sf

KEY RATING DRIVERS

'B'/'B-' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'/'B-'
category. The Fitch- weighted average rating factor (WARF) of the
identified portfolio is 33.9.

High Recovery Expectations

At least 90% of the portfolio comprises senior secured obligations.
Recovery prospects for these assets are typically more favourable
than for second-lien, unsecured and mezzanine assets. The
Fitch-weighted average recovery rating (WARR) of the identified
portfolio is 64.7%.

Diversified Asset Portfolio

The transaction has four Fitch test matrices corresponding to two
top 10 obligor limits of 15% and 23%, and two maximum fixed-rate
asset limits of 0% and 10%, respectively. The manager can
interpolate within and between the matrices. The transaction also
includes various limits, including the maximum exposure to the
three-largest Fitch-defined industries in the portfolio at 40%.
These covenants ensure that the asset portfolio will not be exposed
to excessive concentration.

Portfolio Management

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

Cash Flow Analysis

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

RATING SENSITIVITIES

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


DRYDEN 48 EURO 2016: S&P Assigns Prelim. B-(sf) Rating on F-R Notes
-------------------------------------------------------------------
S&P Global Ratings assigned preliminary credit ratings to Dryden 48
Euro CLO 2016 B.V.'s class X-R to F-R reset cash flow CLO notes. At
closing, the issuer will also issue unrated subordinated notes.

Dryden 48 Euro CLO 2016 is a reset European cash flow CLO
transaction securitizing a portfolio of primarily senior secured
leveraged loans and bonds. The transaction will be managed by PGIM
Ltd.

The preliminary ratings reflect S&P's assessment of:

-- The diversified collateral pool, which consists primarily of
broadly syndicated speculative-grade (rated 'BB+' and below) 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.

-- The transaction's legal structure, which is expected to be
bankruptcy remote at closing.

-- The transaction's counterparty risks, which S&P expects to be
in line with its counterparty rating framework on the closing
date.

Under the transaction documents, the rated notes will pay quarterly
interest unless there is a frequency switch event. Following this,
the notes will permanently switch to semiannual payment.

The portfolio's reinvestment period will end approximately 4.5
years after closing.

S&P said, "Our preliminary ratings reflect our assessment of the
preliminary collateral portfolio's credit quality, which has a
weighted average rating of 'B'. We consider that the portfolio will
be well-diversified on the effective date, primarily comprising
broadly syndicated speculative-grade senior secured term loans and
senior secured bonds. Therefore, we conducted our credit and cash
flow analysis by applying our criteria for corporate cash flow
collateralized debt obligations.

"In our cash flow analysis, we used the EUR399.29 million par
amount, the actual weighted-average spread of 3.83%, the actual
weighted-average coupon of 5.10%, and the actual weighted-average
recovery rates for all rating levels.

"We applied various cash flow stress scenarios, using four
different default patterns, in conjunction with different interest
rate stress scenarios for each liability rating category.

"Elavon Financial Services DAC is the bank account provider and
custodian. At closing, we anticipate that the documented downgrade
remedies will be in line with our current counterparty criteria.

"Under our structured finance ratings above the sovereign criteria,
the transaction's exposure to country risk is sufficiently
mitigated at the assigned preliminary rating levels.

"At closing, we consider that the issuer will be bankruptcy remote,
in accordance with our European legal criteria.

"We note that using our actual credit and cash flow assumptions,
the class F cushion is (0.85%). Based on the actual characteristics
of the portfolio and additional overlaying factors, including our
long-term corporate default rates and the class F notes' credit
enhancement of 6.5%, this class is able to sustain a steady state
scenario, where the current market level of stress and collateral
performance remain steady. Consequently, we assigned our
preliminary 'B- (sf)' rating to the class F notes, in line with our
criteria.

"Taking into account the above-mentioned factors and following our
analysis of the credit, cash flow, counterparty, operational, and
legal risks, we believe our preliminary ratings are commensurate
with the available credit enhancement for each class of notes."

  Ratings List

  Dryden 48 Euro CLO 2016 B.V.

  Class       Preliminary rating    Preliminary amount
                                     (mil. EUR)
  X-R             AAA (sf)              1.00
  A-1-R           AAA (sf)             220.00
  A-2-R           AAA (sf)              28.00
  B-1-R           AA (sf)               25.00
  B-2-R           AA (sf)               15.00
  C-1-R           A (sf)                16.00
  C-2-R           A (sf)                15.00
  D-R             BBB (sf)              22.00
  E-R             BB- (sf)              23.00
  F-R             B- (sf)               10.00
  Subordinated
  notes           NR                    43.00

  NR--Not rated.




===========
N O R W A Y
===========

NORWEGIAN AIR: Strikes Deal to Restructure GBP300MM+ Debts
----------------------------------------------------------
Oliver Gill at The Telegraph reports that Norwegian Air has struck
a deal to restructure more than GBP300 million of debts, giving the
heavily indebted airline breathing space on its quest to return to
profitability.

According to The Telegraph, a majority of bondholders agreed to
delay the repayment of debts by up to two years.

The world's fifth-largest low-cost airline made a series of
commitments to bondholders that included putting its Gatwick slots
up as a collateral, The Telegraph relates.

Acting chief executive Geir Karlsen said the agreement showed
support for strategic changes that the airline hopes will return it
to profitability, The Telegraph notes.

Two bonds totalling US$380 million (GBP315 million) were due to be
repaid in December and August 2020, The Telegraph discloses.  These
have been pushed out until 2021 and 2022, The Telegraph states.




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

ALMAZERGIENBANK JSC: Fitch Affirms 'B+' LongTerm IDRs
-----------------------------------------------------
Fitch Ratings has affirmed Almazergienbank's Long-Term Issuer
Default Ratings at 'B+' with a Stable Outlook and Viability Rating
at 'b-'.

KEY RATING DRIVERS

IDRS AND SUPPORT RATING

The affirmation of AEB's Long-Term IDRs at 'B+' and Support Rating
at '4' reflects Fitch's view of a limited probability of support
from Russia's Republic of Sakha (Yakutia) (BBB-/Stable). Its
assessment of support favourably considers (i) the regional
authorities' majority ownership (86% direct stake); and (ii) the
region's operational and strategic control over the bank (the local
administration sits on the bank's supervisory board).

At the same time, AEB's Long-Term IDRs remain four notches below
those of Sakha, reflecting (i) AEB's limited strategic importance
for the region; and (ii) the low flexibility of the local
authorities to swiftly provide support. The latter resulted in
significant delays to the recent recapitalisation of the bank,
which was eventually completed in 3Q18 after having first been
identified as necessary by the Central Bank of Russia (CBR) during
its review of AEB in 2017. The delay in provision of support, which
was equal to 10% of risk-weighted assets (RWAs) and needed to
reserve sizable credit risks, made the bank reliant on regulatory
forbearance for a deferral of provisioning over that period,
although this was agreed in advance with the regulator.

VR

The affirmation of AEB's VR at 'b-' reflects vulnerable asset
quality due to sizeable volumes of potentially risky assets and
high borrower and industry concentrations (including construction
and public finance sectors), and the bank's modest loss absorption
capacity through capital and earnings. Positively, Fitch expects
some moderation of asset quality vulnerabilities and hence reduced
pressure on AEB's core capital within the next 12 months. The
bank's liquidity and funding profile remain adequate and stable.

Impaired (Stage 3) loans were a high 18% of gross loans at end-1H19
and 79% covered by specific reserves, while Stage 2 added another
11% and were modestly reserved. Fitch also notes high loan
concentration by sectors. Around 18% of loans mainly classified as
Stage 1 were issued to local public finance entities, which are
vulnerable on a standalone basis due to generally high leverage,
and reliant on Sakha for financial support. Another 16% of loans
were to finance construction of social objects under a
Sakha-sponsored programme. The construction exposures were mostly
classified as Stage 1 and Stage 2.

AEB's Fitch Core Capital (FCC) ratio was a modest 9% at end-1H19,
although it would likely be somewhat higher if the bank disclosed a
RWA calculation based on IFRS accounts (Fitch calculates the ratio
as FCC divided by regulatory RWA). In addition, there is also AT1
perpetual debt ultimately held by the shareholder (equal to 4.3% of
RWAs), which could be potentially converted into common equity, if
needed. The regulatory Core Tier 1 ratio of 9.2% at end-7M19 had
moderate headroom above the fully-loaded mandatory minimum of 7%,
effective from January 1, 2020.

The bank's core capitalisation is vulnerable in light of the
considerable volume of potential risks. Net of specific reserves,
Stage 3 and Stage 2 loans made up 0.3x and 0.8x FCC, respectively,
at end-1H19, while on-balance sheet exposure to low-liquid real
estate property was equivalent to another 0.2x FCC. Positively,
Fitch expects net Stage 2 exposures to significantly reduce to 0.3x
FCC within the next year, as the above-mentioned construction
projects are approaching completion and are likely to be
reclassified into Stage 1 due to elimination of non-completion
risk. This could reduce pressure on the bank's core capital,
provided there are no newly-generated risks.

AEB's pre-impairment operating profit of 2.5% of average gross
loans in 1H19 was also modest relative to potential risks.
Bottom-line results have been volatile, largely depending on the
size of provisioning charges. ROAE in 2018 was negative 12%, while
the ratio in 1H19 was positive 9%.

AEB is mainly deposit-funded (91% of liabilities at end-2Q19),
while concentrations are low, with around 70% of deposits granular
retail accounts. The cushion of highly liquid assets covered a
reasonable 27% of customer accounts at end-July 2019, while
liquidity risks are additionally mitigated by rather sticky
customer funding.

RATING SENSITIVITIES

IDRS AND SUPPORT RATING

Upside potential for AEB's IDRs is limited given the support
notching considerations. The bank's support-driven ratings could be
downgraded if (i) Sakha is downgraded; or (ii) the propensity of
the parent to provide support diminishes.

VR

The bank's VR could be upgraded if the bank's asset quality
strengthens, thereby reducing pressure on capitalisation, in line
with Fitch's expectations. Downward pressure on AEB's VR could stem
from a marked deterioration in asset quality leading to capital and
profitability erosion, in the absence of parental support.




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

BOLUDA TOWAGE: Fitch Assigns BB(EXP) LongTerm IDR
-------------------------------------------------
Fitch Ratings has assigned Boluda Towage, S.L., an expected
Long-Term Issuer Default Rating of 'BB(EXP)' with a Stable Outlook.
Fitch has also assigned Boluda's EUR890 million senior secured term
loan B, a 'BB(EXP)' rating with Stable Outlook.

The assignment of final ratings is contingent on the receipt of TLB
documentation post syndication phase conforming to the information
already received.

KEY RATING DRIVERS

The rating considers the group's relatively high leverage profile,
its single bullet debt structure as well as the stable cash flow
generation resulting from a geographically diversified portfolio of
operations with a solid presence in some markets where it is the
sole operator (approximately 80% of consolidated EBITDA).

The recently acquired Kotug-Smit Towage (KST) will further
strengthen Boluda's international diversification. However, it
could also increase the historically moderate cash flow volatility,
as KST operates in large Northern European ports with material
exposure to competition. In its view, the limited visibility of
KST's cash flow stability and its exposure to competition weights
on the group's credit profile, although the size of Boluda's
operations compared with KST's (approximately 20% of consolidated
EBITDA) and the group's ability to sign multi-port contracts with a
diversified customer base, mitigate these risks.

The bullet debt structure is unhedged and entails refinancing risk
at maturity, especially if Boluda's competitive environment
deteriorates and licenses or concessions are not renewed. However,
Fitch notes the issuer's track record of extending existing
licenses and the fact that Boluda owns the vessels and could find
new markets if concessions were not extended.

Good Operating Track Record - Operation Risk - Midrange
Boluda is a family-owned business that started operating in the
towage industry in 1920. The company provides tug services under
concessions (approximately 20% of EBITDA) and licenses
(approximately 80% of EBITDA) signed with port authorities. Boluda
operates 288 tugboats after the KST acquisition, and has a strong
track record in operations with a successful history of license
renewals.

The group has a dominant position in most of the markets where it
operates, which creates operational efficiencies. For example, the
company could move tugboats between ports, in case of specific
needs (e.g. extraordinary dry docking). In some jurisdictions, the
port authority allows periodic upward tariff adjustments to offset
the increases of some costs like fuel.

Costs structure mainly comprises personnel costs (around 50% of
total costs), which could be downsized in case of economic downturn
as the stafflevel is 25% above the minimum concession/licence
requirements. The towage business is structurally exposed to
operational risk, such as accidents in daily operations, although
this risk is partially mitigated by the insurance policy in place.

Diversified and Resilient Volumes - Volume Risk - Stronger
The company is well diversified in terms of geographical footprint
and cargo mix. After the KST acquisition, it operates in 15
countries and 63 ports, with Spanish and French markets accounting
for approximately 40% and 20% of EBITDA, respectively. Although
Boluda acts as sole operator in its traditional markets, after the
KST acquisition the group has increased its exposure to more
competitive Northern European markets. Fitch expects volume
performance to be more stable in markets where Boluda acts as
sole-operator (approximately 80% of EBITDA) than in markets with
competition (approximately 20% of EBITDA).

The evolution of revenues has been strong since 2008, with a low
peak to trough close to -8% for Spain, France, Africa and Mexico
Compania Maritima del Pacifico S.A. de C.V. (on a like-for-like
basis), thanks to the geographical diversification, and its
position as sole operator in most ports. This volume data excludes
KST and Germany, as 2008-2018 historical volumes are not
available.

The increase in vessel size has increased the number of tug
services, as larger vessels require a higher number of tugboats per
port call. The average size of vessels arriving in Spanish ports
where Boluda operates increased by almost 50% between 2007 and
2013. Customer concentration is low as the top five clients
accounted for around 18.3% of 2018 revenue, with the fifth top
client only accounting for 1.2%. Technological improvements that
could reduce the requirements for tug services are not perceived as
a major risk at present.

The main threats for Boluda are the implementation of measures to
facilitate competition in markets where it acts as sole operator,
or that further consolidation in the towage services industry may
attract big players that have the financial resources to make the
required investments to operate in bigger ports where there could
be space for competitors and Boluda acts as sole operator. However,
so far regulatory measures have not affected Boluda, and the
tugboat sector is still very fragmented. Although Boluda's current
position is strong, additional competition in the company's
traditional markets cannot be discounted.

Limited Flexibility on Tariffs. Price Risk -Midrange
Boluda has limited pricing flexibility, as the pricing of its
services is capped under the licenses or concession agreements, and
because of the competition it faces in some ports, which pushes
prices down. Boluda signs global agreements with most of its
clients, which include discounts on tariffs, in order to favits the
use of Boluda's services in ports where they face competition.
However, historical price evolution has been quite positive, with a
CAGR of 2.6% in the last 10 years in markets like Spain, France,
Africa and Mexico.

Port authorities, are not incentivised to make tugboat operators a
loss-making sector, as the priority is to provide a good and safe
service to ensure smooth operations in the port. Fitch expects port
authorities to address significant costs increases, so tugboat
operators can provide a good level of service. In Mexico and
France, the tariff review process routinely addresses fuel cost
increases.

Revenue from global agreements that include discounts make up
approximately 43% (excluding KST), and the average discount depends
on the client and type of contract. This provides Boluda with some
flexibility, as even if the pricing of the contracts is linked to
the price cap established under the license, it might be able to
renegotiate the terms of the contracts if the tariff is
significantly reduced, or the company could renegotiate the
discount in the next contract renewal. The company intends to
increase the percentage of revenues from global contracts to
protect its position as sole operator in some ports, but this could
have a negative effect on pricing, as observed in Spain during the
last five years.

Recently Renovated Fleet. Infrastructure Development and Renewal -
Stronger
The company has significant flexibility on its capex requirements,
as demonstrated by the postponement of tugboat acquisitions during
the crisis. The company is now making up for under expenditure on
capex, and has made significant investment in new tugboats, both
for renovating the fleet and for organic growth, adding 30 tugs to
its fleet in France, Spain and Africa between 2014 and 2018,
against 21 being scrapped.

The capex plan is self-funded, and includes mainly the acquisition
of 18 vessels for around EUR86 million between 2019 and 2020. These
relate to 10 tugboats in France and Africa, three in Spain, two in
Mexico and three for KST. The capex plan includes the acquisition
of some tugboats that are now leased, which means that Boluda will
fully own all tugboats it operates. This is why expected capex is
relatively high in 2019 and 2020.

From 2021, capex is expected to be lower given the well maintained
and modern fleet (average life of 16 years, with total useful life
of around 50 years), and the expected slowdown in growth, as the
company will focus on integrating KST's operations. For maintenance
capex, the company has a detailed plan for dry docking activities,
which is based on its own experience and ensures adequate
conditions of the fleet. Although the company is exposed to
extraordinary dry docking, Fitch believes this risk is manageable
given the size of the fleet. The company complies with current
environmental requirements as it has already invested in adapting
its fleet to comply with environmental standards for CO2 and
sulphur emissions.

Refinancing and Interest Rate Risk. Debt Structure - Weaker
The rated debt is secured and ranks senior but is fully exposed to
interest rate risk. The significant exposure to the refinancing of
the bullet structure weighs on its assessment. The covenant package
is looser than in a traditional project finance debt structure.
There is no financial default covenant and the structure only
benefits from a springing leverage financial covenant for the
benefit and protection of revolving credit facility lenders.

There is some flexibility for additional financial indebtedness, as
the company could increase leverage by 1x (net debt to EBITDA as
calculated under the finance documentation) above the ratio at
closing, with a basket of other permitted financial indebtedness.
There is an excess cash flow sweep and lock up features but are
less protective than in a traditional project finance structure,
weakening the ring fencing. Boluda Corporacion Maritima, the
parent, currently has no debt after the recent Boluda group
reorganisation. However, if this changes, Fitch might revises its
approach and include the parent in the rated perimeter. As a
family-owned business Fitch expects Boluda to take a conservative
approach in extracting value from the ring-fenced perimeter.

The current weighted average concession life of 10 years will
reduce to around six years at refinancing, with two concessions
maturing in 2020, which is already factored into its Fitch rating
case. However, the key mitigants are that the company owns the
tugboats and will find new markets to provide their services if it
fails to renew concessions, and the limited percentage of EBITDA
coming from concessions. However, if Boluda found new markets, the
profitability and quality of the business profile could be
affected, as demonstrated by Boluda's entry into Germany in 2017.

Financial Profile

Under Fitch;s base and rating cases, Fitch expects Boluda's average
gross debt to EBITDAR in 2019-2023 to be 5.5x and 5.9x,
respectively. The rating case shows slightly decreasing leverage
from 6.1x in 2019 to 5.8x in 2021, which could be accelerated if
the company effectively implements its deleveraging target.

PEER GROUP

Fitch has compared Boluda with Euroports (BB-), Russian Global Port
Investment Plc (GPI; BB+), and Mersin (MIP; BB+).

Euroports has a similar leverage finance type debt structure, with
relatively weak creditors protective features, but Boluda benefits
from better geographic and cargo diversification, and stronger
resilience in its historical volumes, which is driving the higher
rating level. Boluda's operating leverage is also lower than
Euroports.

GPI is rated one notch higher than Boluda. Boluda has higher
geographical diversification and higher volume resilience but GPI
has much lower leverage, which justifies the one-notch difference.

MIP's higher rating than Boluda is largely driven by its lower
leverage of around 2.3x in the next five years. Mersin's rating is
currently capped by the Country Ceiling.

RATING SENSITIVITIES

Developments that may, individually or collectively, lead to
positive rating action include:

  - Gross debt to EBITDAR below 5.0x on a sustained basis
    from 2020 onwards.

Developments that may, individually or collectively, lead to
negative rating action include:

  - Gross debt to EBITDAR above 6.0x on a sustained basis
    from 2020 onwards.

  - Worsening of the company's business risk profile, such as
    technological developments that may reduce the need for
    tug services.

  - Failure to find new markets if major concessions or
    licenses are not renewed.

TRANSACTION SUMMARY

Boluda has contracted the TLB to refinance its financial debt and
fund KST's acquisition.

In March 2019, Boluda made an offer to acquire KST for
approximately EUR300 million. The acquisition was closed at the end
of July. KST provides towage services in 11 European ports
(Germany, The Netherlands, Belgium and UK). The ports where KST is
present account for 72% and 100% of total port activity in
Netherlands and Belgium, respectively.

In this context, Boluda is reorganising its corporate structure,
including the acquisition of some business owned by different
members of the family, and has refinanced the existing debt at
Boluda. Its analysis and rating reflects the new perimeter of
Boluda Towage, S.L.

Fitch Cases

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

  - Revenue projected to grow by 0.5% (CAGR) between 2018 and
2023.

  - Zeebrugge and Doulala concessions are not renewed.

  - Costs including some adjustments to company's assumptions,
including higher inflation, and adjustments due to the company no
longer operating in Zeebrugge and Doulala in its rating case.

  - Capex in line with the company's projections.

Asset Description

Boluda provides maritime towage services to a wide range of
vessels, ports and oil & gas terminals. The company has increased
its activity through several acquisitions and organic growth.
Boluda is the second-largest operator of towage services globally,
with a fleet of 288 tugs (including 68 KST tugs), more than 3,000
employees, and presence in 63 ports across Europe, Latin America
and Africa (operating in eight of the 10 largest ports in the EU).

The combined company achieved revenues of EUR489 million and EBITDA
of EUR148 million in 2018, including both the Boluda business and
KST's results. Europe accounts approximately for 82%, Latin America
4% and Africa 15%. Boluda has a strong position in the markets
where it operates, providing operational efficiencies.


DEOLEO SA: S&P Lowers ICR to 'CCC-', On CreditWatch Negative
------------------------------------------------------------
S&P Global Ratings lowered its ratings on Deoleo, S.A. and on its
senior debt instruments to 'CCC-' from 'CCC+', and placed them on
CreditWatch with negative implications.

The downgrade follows Spanish olive oil bottler Deoleo, S.A.'s
announcement on Sept. 11, 2019, that negotiations with creditors
regarding debt refinancing and group restructuring are nearing
conclusion. S&P anticipates these discussions will result in debt
restructuring, and believe the likelihood that Deoleo will announce
such a transaction within the next three months has therefore
increased materially.

S&P said, "We believe Deoleo's liquidity position remains
unchanged. We understand the group is maintaining about EUR80
million of cash balances that, together with factoring lines,
should enable it to fund its day-to-day operations and service its
debt. However, we continue to assess Deoleo's liquidity position as
less than adequate given we forecast negative free operating cash
flow in 2019, there are no available undrawn committed credit
lines, and the company is facing debt maturities of EUR60 million
in June 2020, which are drawings under its revolving credit
facility (RCF). We understand that Deoleo has limited its drawings
under the RCF in order to avoid covenant tests.

"Our base-case expectations for 2019 are unchanged, including
negative FOCF generation and S&P Global Ratings adjusted debt to
EBITA of over 15x."

CreditWatch

S&P said, "The CreditWatch negative placement reflects our view
that there is a high likelihood that Deoleo will announce debt
restructuring in the next three months.

"We will revisit the CreditWatch placement when we have more
details regarding any potential debt restructuring or refinancing
transaction.

"We are lowering to our issue rating on Deoleo's EUR85 million RCF
and EUR460 million first-lien notes to 'CCC-' from 'CCC+' The
recovery rating on the debt remains '4', reflecting our expectation
of average recovery (30%-50%; rounded estimate 30%) in the event of
a payment default. The recovery ratings are constrained by the
covenant-lite nature of the debt and by the nonrecourse factoring
line that we consider as priority claim in the waterfall.

"Our 'CC' issue rating with a recovery rating of '6' on the
second-lien term loan reflects the loan's subordination to the
sizeable first-lien loan facilities.

"Our hypothetical default scenario envisages intensifying
competition in the group's domestic market (Spain) following a new
increase in raw material price, putting pressure on the group's
margins. It also assumes unsuccessful international expansion
despite re-launches of some core brands such as Carapelli and
recent product innovation toward organic blends and super-premium
products."

-- Year of default: 2019

-- Jurisdiction: Spain

-- EBITDA at emergence: EUR24.8 million

-- Capital expenditure represents 1.0% of forecasted three-year
annual average revenue, based on the group's average minimum
capital expenditure requirement trend stemming from its asset
business model characteristic.

-- No standard cyclicality adjustment for the branded non-durables
industry.

-- Implied enterprise value multiple: Despite a multiple for the
branded non-durables industry of 6x, we use 5.5x to reflect the
vulnerable business risk profile.

-- Gross value recovery: EUR192.8 million

-- Net enterprise value after administrative costs (5%): EUR183.1
million

-- Priority claims: EUR16.3 million

-- Secured debt claims: EUR536.4 million*

-- Recovery expectation: 30%-50% (rounded estimates 30%)

-- Unsecured debt claims: EUR57.5 million*

-- Recovery expectation : 0%

*All debt amounts include six months prepetition interest.


NAVIERA ARMAS: Moody's Lowers CFR to B2, Outlook Negative
---------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating of
Bahia de las Isletas, S.L., a holding company owner of Spanish
ferry operator Naviera Armas, S.A, to B2 from B1, and its
probability of default rating to B2-PD from B1-PD. At the same
time, Moody's has downgraded Naviera Armas, S.A.'s senior secured
notes to B2 from B1. The outlook on the ratings of both entities
have been changed to negative from stable.

"The rating action was prompted by Naviera's higher leverage and
weaker liquidity profile than initially expected for the B1 rating
category", says Guillaume Leglise, a Moody's Assistant
Vice-President and lead analyst for Naviera.

"The negative outlook reflects the uncertainty around the company's
plan and ability to comply with the upcoming International Maritime
Organization's (IMO) 2020 lower global sulfur cap on marine fuel,
which will require substantial capital expenditures and will
potentially strain free cash flows and liquidity in the next 18
months" adds Mr Leglise.

RATINGS RATIONALE

The action reflects Moody's expectations of a slower deleveraging
trajectory for Naviera in the next 18 months. Moody's expects the
company's gross debt/EBITDA ratio (as adjusted by Moody's) will
remain above 6.0x in fiscal year 2019. This reflects a weaker
trading performance than expected in the last few quarters and
additional debt recourse to finance large capital spending. In the
last 12 months to June 2019, Naviera's reported EBITDA (before the
impact of IFRS 16 and excluding implementation costs of synergies)
declined to EUR72 million, compared to EUR75 million in 2018 and
well below 2017 levels (EUR102 million pro forma for
Trasmediterranea acquisition).

The realization of synergies following the integration of
Trasmediterranea, S.A. (Trasmediterranea), the current favorable
business fundamentals and modest oil price levels expected in the
next 12 months should support earnings in the next 12 to 18 months.
However, these favorable developments in support of earnings are
likely to be offset by the large capital spending needed to comply
with the upcoming IMO 2020 lower global sulfur cap on marine fuel.
The company plans to install scrubbers on most of its vessels to
comply with the regulation. Moody's estimates that a large portion
of the scrubber investments will be financed via debt. As such the
company's leverage is likely to remain above 5.0x over the next 18
months, which is above Moody's parameter to maintain the B1
rating.

In addition, the company's liquidity profile is more stretched than
Moody's initially expected owing to aggressive investment policies
over the last two years, with high capital spending to purchase new
vessels having negatively weighed on the company's future free cash
flow generation. The debt-financing portion of these vessels sits
outside the restricted group, but the equity portion (around 20%)
is financed by Naviera. Moody's understands that at this stage the
company does not plan any additional vessel orders.

As at July 1, 2019, Naviera had around EUR43.9 million of
unrestricted cash on balance sheet and had fully drawn on its EUR31
million super senior revolving credit facility (RCF), which leaves
limited financial flexibility to the company. The drawdown of its
RCF is partly due to seasonality, but also to finance some
maintenance and expansion capital requirements (notably equity
payments of new vessels). Moody's anticipates that liquidity is
likely to remain adequate, owing to positive free cash flows
expected during the second half of the year and the company's
intention to potentially sell some of its vessels. However, in the
absence of vessel disposals, Moody's expects Naviera's liquidity to
remain stretched considering the expected capital requirements to
adhere to the upcoming IMO 2020 regulation.

In addition, Moody's cautions that there is an increased
uncertainty around the company's ability to comply with its net
leverage covenant. The RCF contains a springing net leverage
covenant of 5.5x, which is very close to the company's current net
leverage (5.4x at end-June 2019). This covenant is tested if the
RCF is drawn by at least 40% (or EUR12.4 million) at year-end. The
company is usually free cash flow positive during the second half
of the year, thanks to the peak third-quarter activity, and Moody's
base case assumes that the company will be able to repay part of
its RCF by year-end, in order to avoid a testing under its
financial covenant.

The B2 CFR is also constrained by (1) the executions risks related
to the achievement of synergies following the acquisition of
Trasmediterranea; (2) the company's high fixed-cost structure with
sizeable exposure to bunker fuel price volatility; and (3) the
still heavy investment cycle expected over the next 18 months.

More positively the B2 CFR reflects (1) the company's
well-established market positions, with a large ferry fleet and
multiple routes creating some barriers to entry; (2) the supportive
macroeconomic conditions and favorable tourist environment; (3) the
company's prospects of profitability improvement and earnings
growth mostly derived from the achievement of synergies over the
next 12-18 months; and (4) Moody's expectations of modest fuel
prices which should support earnings in the next 12 months.

Naviera's rating incorporates environmental, social and governance
(ESG) considerations, in particular the large capital spending
needed to comply with the upcoming IMO 2020 regulation, which
Naviera will have to comply with from the January 1, 2020. This
regulation bans ships using fuel with a sulfur content higher than
0.5%, compared with 3.5% currently, unless a vessel is equipped to
clean up its sulfur emissions. Moody's expects this regulation will
lead to increased operational costs, from the use of lower-sulfur
fuels, or increased capital spending to equip vessels with
scrubbers to clean up exhaust emissions. The rating also takes into
consideration the company's aggressive financial policy, as
illustrated by its high leverage and the large investments made in
recent quarters to expand the fleet.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook reflects Moody's expectations of negative free
cash flow generation and stretched liquidity profile over the next
18 months. Despite the solid underlying business of the company,
Moody's expectations that the company will generate synergies as
part of the integration of Trasmediterranea and still relatively
modest bunker prices, Moody's believes that Naviera's earnings
growth will be largely offset by substantial capital investments
and aggressive financial policies, which will continue to weigh on
free cash flows and liquidity in the next 18 months.

Moody's could stabilize the outlook if Naviera's profitability
improves such that Naviera's gross debt/EBITDA (as adjusted by
Moody's) trends towards 5.0x over the next 18 months and there is a
strengthening in liquidity.

WHAT COULD CHANGE THE RATINGS DOWN/UP

Upward pressure is unlikely following the rating action. However,
over time, Moody's could upgrade the ratings if Naviera: (1)
successfully achieves the synergies planned as part of the
integration of Trasmediterranea; (2) displays a positive and
recurring free cash flow generation of at least EUR30 million per
year; (3) and displays an adequate liquidity profile.
Quantitatively, stronger credit metrics such as a Moody's adjusted
(gross) debt/EBITDA below 4.5x on a sustainable basis and
Moody's-adjusted EBIT/interest expense comfortably above 2.0x could
trigger an upgrade.

Conversely, Moody's could downgrade the ratings if Naviera's
operating performance weakens and deviates from Moody's current
expectations. Quantitatively, failure to bring adjusted (gross)
debt/EBITDA below 5.5x or EBIT/interest expense above 1.0x in the
next 18 months could trigger a downgrade. Downward pressure on the
rating could also be exerted if free cash flows or liquidity
profile weaken further from current levels (EUR44 million of
available cash resources, including committed credit lines, as of
July 1, 2019).

STRUCTURAL CONSIDERATIONS

The B2 ratings (LGD3) on the issuer's EUR300 million senior secured
notes due 2024 and the EUR282 million senior secured notes due 2023
are in line with the CFR. This reflects the notes' position in the
capital structure behind the committed EUR31 million super senior
RCF. The senior secured notes and RCF benefit from a guarantor
package, including upstream guarantees from Naviera Armas, S.A. and
guarantor subsidiaries, representing more than 100% of the
company's EBITDA. Both instruments are also secured on a
first-priority basis by certain share pledges, pledges of certain
insurance claims and mortgages over five vessels. However, the
senior secured notes are contractually subordinated to the RCF with
respect to the collateral enforcement proceeds.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Shipping
Industry published in December 2017.

COMPANY PROFILE

Headquartered in Las Palmas, Naviera is a Spanish ferry operator.
The company provides passenger and freight maritime transportation
services mainly in the Canary Islands and Balearic Islands (between
islands and to/from the Iberian peninsula), as well as in the
Strait market (between southern mainland Spain and northern
Morocco, Algeria and the Spanish cities of Ceuta and Melilla). At
end-June 2019, Naviera operated a fleet of 23 wholly-owned vessels
as well as 13 additional ferries chartered in (including
Trasmediterranea). The company also operates the largest land
transportation business in Spain with a fleet of more than 500
trucks. In the 12 months to June 30, 2019 the company reported
consolidated revenues of EUR619 million and an EBITDA of EUR72
million. The company has been operating for over 75 years and
remains under the Armas family ownership.




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

SCHMOLZ + BICKENBACH: S&P Lowers ICR to 'B-' on Profit Warning
--------------------------------------------------------------
S&P Global Ratings lowered its ratings on Swiss steelmaker Schmolz
+ Bickenbach (S+B) to 'B-' from 'B' and placed them on CreditWatch
with negative implications.

The rating actions follow S+B's second profit warning in the past
two months, with the company cutting its latest EBITDA guidance in
half to EUR70 million-EUR100 million after weak operating results
in July and August. S&P said, "Under our current base case, the
company's capital structure is becoming unsustainable, with
adjusted debt to EBITDA higher than 10x in 2019 and above 8x in
2020. In addition, the company faces a likely covenant breach in
the second half of the year. In this respect, without any concrete
signs of support from S+B's shareholders or core banks in the
coming weeks, we are likely to lower the rating by one notch or
more."

S&P said, "The CreditWatch indicates the likelihood that we could
lower the ratings on S+B by another notch or more in the coming
weeks, unless it obtains support from its shareholders and reaches
an agreement with its core banks.

"As part of the CreditWatch resolution, we will examine the
company's ability to maintain a sustainable EBITDA of EUR150
million or more, an adjusted debt to EBITDA of no more than 6x
during a downturn, and improving its liquidity position, including
a fair amount of headroom under its credit facilities and
sufficient sources to meet its obligation over the coming 12
months. Absent of meeting those, we could further lower the
rating."




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

KHARKOV CITY: Fitch Raises LT IDRs to B, Outlook Positive
---------------------------------------------------------
Fitch Ratings upgraded the City of Kharkov's Long-Term Foreign and
Local-Currency Issuer Default Ratings to 'B' from 'B-'. The Outlook
is Positive. The upgrade of Kharkov's Long-Term ratings follows
that of Ukraine as Fitch continues to view Kharkov's ratings as
being constrained by that of the sovereign.

Fitch has also assigned the City of Kharkov's newly issued UAH250
million domestic bond a senior unsecured 'B' rating.

Kharkov is the second-largest city in Ukraine in population, which
is close to 1.5 million. The city has a diversified urban economy,
supported by a large number of companies across various sectors,
which underpins the city's tax capacity and attracts investments.
The most important sectors are machine- building and food. However,
its economic metrics are weak in international comparison with GRP
per capita below EUR3,000. According to budgetary regulation,
Kharkov has the right to borrow on the domestic market and
externally.

Budget accounts are presented on a cash basis while the law on
budget is approved for one year.

KEY RATING DRIVERS

The upgrade of the city reflects the following key rating drivers
and their relative weights:

HIGH

The City of Kharkov's standalone credit profile (SCP) is assessed
at 'bb-', which leads to the city's IDRs being constrained by the
sovereign IDRs. In Fitch's view, the city's ratings will remain
capped by the sovereign ratings over the medium-term.

MEDIUM

Debt Sustainability Assessment: 'aaa'

Fitch classifies City of Kharkov as a type-B local and regional
government (LRG), as it covers debt service from cash flow on an
annual basis. Fitch's rating case expects the debt payback ratio
(net adjusted debt-to-operating balance) - the primary metric of
debt sustainability assessment for type B LRGs - will remain far
below five years over the next four years, which justifies the
city's debt sustainability 'aaa' assessment. Secondary metrics -
fiscal debt burden (net direct risk-to-operating revenue) and
actual debt service coverage ratio (ADSCR, operating balance/debt
service, including short-term debt maturities) - also support our
strong debt sustainability assessment.

According to Fitch's rating case, the debt payback ratio will
remain strong over the next four years at 2.4 years by 2023. The
fiscal debt burden will gradually rise over the rating horizon, but
will remain below the threshold of 50%. The ADSCR will deteriorate
to a still sound 3.4x in 2023, due to a weakening of operating
balance under our rating case, from a strong 44x expected in 2019.
However, our ADSCR assessment for four out of the projected five
years still corresponds to a 'aaa' score.

LOW

Revenue Robustness and Adjustability Assessed as Weaker

The city's revenue framework continues to evolve alongside changes
to tax and budgetary regulation. Its fiscal base is made up of
taxes, which are not exposed to economic cycles and are dominated
by personal income tax. Taxes averaged 55% of total revenue in
2014-2018. A high reliance on transfers from the weak sovereign
(B/Positive), which historically represented around 40% of
Kharkov's revenue, coupled with on-going amendments to national
budget regulation, drives our 'Weaker' assessment of Kharkov's
revenue robustness.

Fitch views Kharkov's ability to generate additional revenue in
response to economic downturns as limited. The region has formal
rate-setting authority over several local taxes and fees, which
accounted for 20% of total revenue and were stable in 2015-2018.
However, its ability to increase revenue is constrained by both
legally set ceilings and the low income of residents.

Expenditure Sustainability and Adjustability Assessed as Weaker

The spending dynamic during the last five years has been influenced
by high, albeit slowing, inflation and reallocation of spending
responsibilities. Currently, the city's main spending
responsibilities are socially-oriented. Education and social
policy, which together composed 45% of total expenditure, are
counter-cyclical. However, the city is responsible only for the
maintenance of schools while the salaries of teachers are financed
by transfers from the national budget. Owing to the overall
structural weakness of Ukraine's public finances, transfer of
certain state responsibilities to the municipal level is highly
likely, as was the case with the recent transfer of certain social
benefits. Therefore the city's expenditure framework is fragile,
leading to our 'Weaker' assessment of its sustainability.

Fitch assesses the city's ability to reduce spending in response to
shrinking revenue as weak. The city formally follows a balanced
budget rule, as evident in its track record of delivering
close-to-balanced budgets. In its analysis Fitch puts more weight
on the high rigidity of operating expenditure and overall low per
capita spending compared with international peers'. Capital
expenditure was volatile at between 14% and 25% of total spending
in 2014-2018, as it depended more on the availability of resources
rather than on investment strategy. Its flexibility on capital
expenditure is further limited by severe infrastructure
under-financing for more than a decade.

Liabilities and Liquidity Robustness and Flexibility Assessed as
Weaker

Ukraine's framework for debt and liquidity management is weak. The
national debt capital market is underdeveloped, which is heightened
by unfavourable credit history of the sovereign, including
Ukraine's default in 2015. The 2015 sovereign default impaired
Ukrainian LRGs' access to debt capital markets. Consequently, as
with the majority of national peers, Kharkov did not borrow from
the market and remained debt-free in 2015-2018. At end-August 2019
the city issued a UAH250 million three-year 18% domestic bond
(Ukraine's policy rate is currently 17%). This is the first tranche
of a UAH1billion bond to be placed in 2019-2020. Another UAH250
million tranche is planned for November 2019.

The city remains exposed to contingent risk. The debt of municipal
companies increased to UAH1.6 billion in early 2019, which
corresponded to 11% of operating revenue. The debt is long-term and
mostly in foreign currency, which creates FX risk. The city also
provided UAH2billion guarantees to four municipal companies with
the largest guarantee at UAH1.3billion issued in favor of Kahrkov's
metropolitan for rolling-stock modernisation. Fitch currently does
not expect any of the contingent liabilities to crystalise into
Kharkov's direct debt.

Kharkov's available liquidity is restricted to the city's own cash
reserves, which are low (end-2018: UAH0.4 billion). The city has no
undrawn committed credit lines. Potential liquidity providers are
local banks (B category), justifying our 'Weak' assessment of the
liquidity profile. There are no emergency bail-out mechanisms from
the national government due to the sovereign's fragile fiscal
capacity and weak public finances, which are dependent on IMF
funding for the smooth repayment of its external debt.

DERIVATION SUMMARY

Kharkov's 'bb-' SCP which reflects a combination of a 'Vulnerable'
risk profile and our 'aaa' debt sustainability assessment. The SCP
also factors in national peer comparison. The IDRs are not affected
by any asymmetric risk or extraordinary support from the central
government.

Kharkov's latest UAH250 million senior unsecured domestic bond is
rated 'B'. The bond has a three-year maturity and a fixed coupon
rate at 18%. The proceeds of the bond will be used to address the
city's infrastructure needs.

KEY ASSUMPTIONS

Fitch's key assumptions within our rating case for 2020-2023
include:

  - Transfers, single tax and property tax to decline 1pp of
expected inflation

  - Other revenue to decline 1pp of expected GDP nominal growth

  - Expenditure to grow 2pp of expected inflation

  - Fiscal debt burden to rise to 35% by 2023

RATING SENSITIVITIES

Kharkov's IDRs are currently constrained by the sovereign ratings.
Therefore, any rating action on the sovereign will be mirrored on
the city's IDRs.


KYIV CITY: Fitch Raises LT IDRs to B, Outlook Positive
------------------------------------------------------
Fitch Ratings upgraded the City of Kyiv's Long-Term Foreign and
Local-Currency Issuer Default Ratings to 'B' from 'B-'. The Outlook
is Positive. The upgrade of Kyiv follows that of Ukraine's as Fitch
views the city's ratings as being constrained by that of the
sovereign.

Kyiv benefits from its status as Ukraine's capital and remains the
largest and wealthiest city in the country, with a population
approaching three million inhabitants and gross city product
accounting for about 23% of the country's GDP. According to
budgetary regulation, Kyiv has the right to borrow on the domestic
market and externally. Budget accounts are presented on a cash
basis while the law on budget is approved for one year.

KEY RATING DRIVERS

The upgrade of the City of Kyiv reflects the following key rating
drivers and their relative weights:

HIGH

The City of Kiyv's standalone credit profile (SCP) is 'bb-', which
leads to the IDRs of the city being constrained by the sovereign
IDRs. In Fitch's view, the city's ratings will remain capped by
that of the sovereign over the medium term.

MEDIUM

Debt Sustainability Assessment: 'aaa'

Fitch classifies The City of Kyiv as a type-B local and regional
government (LRG), as it covers debt service from cash flow on an
annual basis. Following material deleveraging over the last five
years, Kyiv's fiscal debt burden declined to a moderate 18.4% of
current revenue at end-2018 from a peak of 64.4% in 2014. In
combination with a sound operating balance this has led to a strong
payback debt payback ratio (net adjusted debt-to-operating
balance), which will remain far below five years in Fitch's rating
case, underpinning our 'aaa' debt sustainability assessment. Its
fiscal debt burden (net direct risk-to-operating revenue) and
actual debt service coverage ratio (ADSCR; operating balance/debt
service, including short-term debt maturities) also remain sound
under Fitch's rating case.

LOW

Revenue Robustness and Adjustability Assessed as Weaker

The city's revenue framework continues to evolve alongside changes
to tax and budgetary regulation. The city's main revenue source is
taxes (64% of total revenue in 2018), followed by transfers from
the central budget (27%). Its tax base is exposed to a weak
economic environment, which together with inter-governmental
transfers from the financially weak sovereign, drives our 'Weaker'
assessment of the city's revenue robustness.

Fitch views Kyiv's ability to generate additional revenue in
response to economic downturns as limited. The city has formal
tax-setting authority over several local taxes and fees. The
largest local taxes are property tax and single tax for SMEs, which
amounted to UAH18.9billion in 2018, or close to 33% of total taxes.
However, affordability of additional taxation is limited due to
both legally set ceilings and high social-political sensitivity to
tax increases.

Expenditure Sustainability and Adjustability Assessed as Weaker

The dynamic of spending during the last five years has been
influenced by high, albeit slowing, inflation and reallocation of
spending responsibilities. Owing to the overall evolving budgetary
system in Ukraine further reallocation of responsibilities between
government tiers is very likely as has been the case with a recent
transfer of certain social benefits. Therefore the city's
expenditure framework is fragile, leading to our 'Weaker'
assessment of its sustainability.

Currently, the city's main spending responsibilities are linked to
social items of non- or moderately counter-cyclical nature such as
education and healthcare and social protection (about 60% of total
expenditure). Another 30% is related to the local economy and
infrastructure development.

Fitch assesses the city's ability to curb spending in response to
shrinking revenue as weak due to the high rigidity of operating
expenditure and overall low per capita spending compared with
international peers'. Capital expenditure was volatile at between
14% and 25% of total expenditure during 2014-2018, as it depended
more on the availability of resources rather than on investment
strategy. The leeway to cut capex is limited by the city's material
needs for infrastructure modernisation.

Liabilities and Liquidity Robustness and Flexibility assessed as
Weaker

Ukraine's framework for debt and liquidity management is weak. The
national debt capital market is underdeveloped, which is
exacerbated by the unfavourable credit history of Ukraine,
including its own and the city's defaults in 2015. The city is
exposed to a high interest-rate environment with Ukraine's policy
rate being set at 17% as of September 1, 2019. As of mid-2019, the
city's outstanding direct debt was fully US dollar-denominated,
exposing the city to unhedged FX risk.

Liquidity available to the city is restricted to the city's own
cash reserves, which totaled UAH2.45 billion as of January 1, 2019.
The city has no undrawn committed credit lines in place. Local
banks, which are potential liquidity providers, are 'B' category
counterparties, which justify our weak assessment of liquidity.
There are no emergency bail-out mechanisms from the national
government due to weak public finances, which leaves Ukraine
dependent on IMF funding for a smooth repayment of its external
debt.

DERIVATION SUMMARY

Kyiv's SCP of 'bb-' is based on a combination of a 'Vulnerable'
risk profile and debt sustainability assessment of 'aaa'. The SCP
also factors in national peer comparison.

The city's IDRs are not affected by any asymmetric risk or
extraordinary support from the central government and Fitch
continues to view Kyiv's IDRs as being capped by the sovereign's
ratings. Its National Long-Term Rating is upgraded to reflect
continuous improvement of the city's financial profile, and
expectation of further deleveraging following settlement of the
city's obligations to Ukraine's Ministry of Finance.

The loan participation notes (LPNs) issued by PBR Kyiv Finance PLC
are upgraded as LPNs are rated in line with Kyiv's ratings. PBR
Kyiv Finance PLC is the city's financial SPV, and the LPNs were
issued on a limited recourse basis for the sole purpose of
financing a loan made to the city. They therefore represent direct,
unconditional, unsecured and unsubordinated obligations of Kyiv and
at all times rank pari passu with all its unsecured and
unsubordinated obligations.

KEY ASSUMPTIONS

Fitch's key assumptions within our rating case for 2020-2023
include

  - Transfers, single tax and property tax, to decline 1pp of
expected inflation

  - Other revenue to decline 1pp of expected GDP nominal growth

  - Expenditure to grow 2pp of expected inflation

  - Fiscal debt burden to rise to 20% by 2023

RATING SENSITIVITIES

As Kyiv's IDRs are currently constrained by the sovereign's
ratings, any rating action on the sovereign will be mirrored on the
city's IDRs.

LIQUIDITY AND DEBT STRUCTURE

Kyiv's market debt is primarily USD115.1 million Eurobond, in the
form of LPNs issued by PBR Kyiv Finance PLC in September 2018 in
exchange for part of Kyiv's USD250 million Eurobond due in 2015.
The new Eurobond bears a 7.5% semi-annual coupon and is due in in
four equal bi-annual instalments in 2021 and 2022.

The city also has USD351.1 million obligations to Ukraine's
Ministry of Finance (MFU). This is a result of the exchange of
Kyiv's Eurobonds into Ukraine sovereign debt in December 2015.
According to the terms of the debt exchange, Kyiv makes bi-annual
payments to compensate for the coupon payment related to the
Eurobond. The principal is to be repaid in two equal instalments in
2019 and 2020. Fitch treats this debt as an inter-governmental
loan.

Following negotiations with the Ukrainian government the first
instalment (USD175.5 million) of principal debt amortisation in
2019 should be fully reduced by the amount of domestic bonds
redeemed by the city in 2016 and certain capital expenditure in
2017-2018. Fitch expects the city to continue its negotiations with
the central government to write-off the remaining liabilities to
MFU in 2020.

Kyiv's other obligations are UAH3.7 billion of interest-free
treasury loans contracted prior to 2014. As these loans were
granted to the city to finance mandates delegated by the central
government and will be written off by the state in the future Fitch
does not include these treasury loans in its calculation of city's
adjusted debt.

In addition Kyiv remains exposed to contingent risk stemming from
public sector companies. The city had several outstanding
guarantees totalling about EUR32 million as of July 1, 2019 to
support projects in public transportation, infrastructure and
energy-saving. The guaranteed loans are euro-denominated and relate
mostly to two city-owned companies, Kyivpastrans and
Kyivmetropoliten. The guarantees expire in 2021 and Fitch currently
does not expect any of the contingent liabilities to crystalise
into the city's direct liabilities.


LVIV CITY: Fitch Raises LongTerm IDRs to B, Outlook Positive
------------------------------------------------------------
Fitch Ratings upgraded three Ukrainian local and regional
governments' Long-Term Foreign- and Local-Currency Issuer Default
Ratings to 'B' from 'B-'. The Outlooks are Positive. The affected
LRGs are the City of Dnipro, the City of Lviv and the City of
Odesa.

Under EU credit rating agency regulation, the publication of
International Public Finance reviews is subject to restrictions and
must take place according to a published schedule, except where it
is necessary for CRAs to deviate from this in order to comply with
their legal obligations.

Fitch interprets this provision as allowing us to publish a rating
review in situations where there is a material change in the
creditworthiness of the issuer that Fitch believes makes it
inappropriate for us to wait until the next scheduled review date
to update the rating or Outlook/Watch status. In this case the
deviation was caused by the upgrade of the sovereign's IDRs.

Following the recent upgrade of Ukrainian's Long-Term Foreign- and
Local-Currency IDRs to 'B' from 'B-' Fitch has upgraded these
issuers. This is because their IDRs are constrained by the
sovereign ratings due to each of the cities' standalone credit
profiles (SCPs) being higher at 'bb-'.

The next scheduled review date for City of Dnipro is December 6,
2019, for the City of Lviv December 13, 2019 and for the City of
Odesa December 13, 2019.

KEY RATING DRIVERS

The upgrade of the three Ukrainian LRGs reflects the following key
rating drivers and their relative weights:

HIGH

As all the three rated Ukrainian cities' SCPs are assessed at
'bb-', the IDRs of these cities are constrained by the sovereign's
IDRs. In Fitch's view, these LRGs will remain intrinsically strong
over the medium term and their ratings will remain constrained by
the sovereign's.

RATING SENSITIVITIES

The ratings of the City of Dnipro, the City of Lviv and the City of
Odesa are constrained by the sovereign ratings, so any rating
action on Ukraine's sovereign IDRs would lead to corresponding
rating action on the LRGs' IDRs.




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

BRITAX GORUP: Moody's Lowers CFR to Caa3, Outlook Negative
----------------------------------------------------------
Moody's Investors Service downgraded UK-based children's car seat
maker Britax Group Limited's ratings, including its corporate
family rating to Caa3 from Caa1 and probability of default rating
to Caa3-PD from Caa1-PD. Concurrently, Moody's has downgraded to
Caa3 from Caa1 the ratings assigned to the EUR323 million
equivalent first lien term loan (EUR293 million outstanding at June
2019) and the EUR20 million revolving credit facility available at
Britax US Holdings Inc. as lead borrower. The outlook is negative.

"The company's looming debt maturities next year and weak liquidity
give it limited time to turnaround the weak trajectory of profits
and we therefore think losses for lenders look increasingly
likely", says Egor Nikishin, a Moody's lead analyst for Britax.

RATINGS RATIONALE

Despite some signs of modest recovery in recent months over the
last year Britax's operating performance continued to deteriorate
and its reported EBITDA of EUR19 million as of June 2019, on a last
twelve-month (LTM) basis, was 17% lower than at June 2018. This was
significantly below Moody's expectations and led to an increase in
Moody's adjusted debt / EBITDA to around 28x as of June 2019
compared to 10.2x in 2017. As a result of the weakening operating
performance, the rating agency considers the current capital
structure is increasingly unsustainable.

The deterioration was driven by a variety of factors including cost
inflation, IT problems in Europe and soft market conditions in
China. Moody's recognises that some of these issues were one-off in
nature, and that the company restored its IT platform in Europe. In
the first half of 2019 the company's sales in Europe grew by 25%
and EBITDA increased by 16% compared to the prior year. However,
continued flat results in the US and declining profits in Asia
offset part of the improvement. As such, although total EBITDA grew
by approximately 10% in the first half of the year, this also
represents only circa EUR1 million EBITDA growth in absolute terms,
and on an LTM basis is only about 30% its historic peak some six
years ago.

The rating agency believes financial leverage, measured as Moody's
adjusted debt to EBITDA ratio will remain well above 10x in 2019,
as Moody's expects only gradual recovery in EBITDA for the
remainder of 2019. In the circumstances, Moody's believes that the
potential lack of significant improvements in operating performance
over the next few quarters will challenge the company's ability to
refinance its debt ahead of maturities next year without
substantial losses for the lenders.

Moody's considers recent news that Britax has appointed a financial
advisor to assist the company with negotiations with lenders
suggests that preparations may be underway for a potential debt
restructuring. This would represent an aggressive financial policy
although the rating agency acknowledges that shareholders provided
a support to liquidity via a EUR10 million loan zero coupon in
December 2018. Britax changed both CEO and CFO this year and the
new team will naturally need some time before their contribution
will start to bear fruits.In the meantime, Moody's notes that the
company's quarterly reports do not include full IFRS disclosures
and that Britax's 2018 audited accounts have not yet been
published.

Moody's considers the lower than expected profits in the last year
and the looming debt maturities of next year means Britax's already
weak liquidity has deteriorated. The rating agency expects the
company's free cash generation to be slightly negative this year
and notes that as of the end of June the company had only EUR12
million of cash available on balance sheet, having previously drawn
its RCF by EUR8 million, and received the EUR10 million loan from
shareholders in December 2018. Moody's also notes that Britax's
access to the RCF (total size EUR20 million, due in April 2020) is
constrained by the facility's net leverage of 6x, tested if the RCF
is more than EUR10 million drawn.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects the risk of failure in addressing the
upcoming debt maturities, weakening liquidity profile and operating
performance which limit Britax's capability to withstand further
headwinds and operating difficulties.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Given the negative outlook and the weak credit metrics, a rating
upgrade is unlikely in the near term. The ratings could be upgraded
in case of successful renegotiation of the company's main bank
loan, improving operating performance and higher cash balances.

Britax's ratings could be downgraded in case the company fails to
refinance its debt, in case of material increase in expected losses
for the lenders or in case of further deterioration in liquidity.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Britax Group Limited (Britax) designs, assembles and markets a
range of premium children's car seats and wheeled goods. The
company has developed leading brands in each of its principal
markets, including Europe (Britax, Britax Römer and Brio), the US
(Britax and B.O.B) and Australia (Safe-n-Sound and Steelcraft).


EDDIE STOBART: In Talks with Lenders, Mulls Equity Raising
----------------------------------------------------------
Sarah Provan at The Financial Times reports that Eddie Stobart
warned its full-year operating profit would be "significantly below
the board's expectations" as it revealed it was in talks with its
lenders and considering plans to raise new equity.

According to the FT, the UK trucking group backed by troubled
stockpicker Neil Woodford said on Sept. 16 that the cost of
preparations for new contracts it had won amid revenue growth of
almost 20% a year had placed "substantial demands on the group's
working capital".

It added that its balance sheet had taken a further hit from poor
cash collection and the company's dividend policy, and said there
would be no full-year payout for 2019, the FT notes.

Eddie Stobart, whose green and red lorries are a common sight on
Britain's roads, has had a tough few months in which it has
admitted an accounting error, issued a profit warning and had
trading in its shares suspended, the FT discloses.

The group revealed this month it had been approached by DBay
Advisors, one of its shareholders, about a possible takeover, the
FT recounts.

It said on Sept. 16 it expected earnings before interest and tax to
be GBP10 million-GBP11 million for the six months to May 31, on
revenues of roughly GBP450 million, the FT relays.

It said net debt at May 31 was estimated to be about GBP155
million, the FT notes.

The transport group, as cited by the FT, said it had not met an
"ambitious budget", citing delays and underperforming contracts
-- a significant proportion of which it said had ended during the
year.

According to the FT, it said it was "relying more heavily on its
available debt facilities" and that "group net debt has increased
from the amount at the half-year end".

"The company, alongside its advisers, is considering all strategic
options (including the potential for raising new equity) and is
currently engaging with its lenders."

While the company said it expected the second half, as in previous
years, to be better than the first, it "continues to expect the
underlying ebit for FY19 will be significantly below the board's
expectations", the FT notes.


SIRIUS MINERALS: Pulls Junk Bond Issue, Market Value Halved
-----------------------------------------------------------
Neil Hume at The Financial Times reports that Sirius Minerals, the
company developing a huge potash mine under the North York Moors,
shed more than half its market value after it was forced to pull a
US$500 million junk bond issue and the UK government refused to
back the project.

Sirius chief executive Chris Fraser said it was not possible to
issue the bond -- a key plank of its financing plans -- due to
"ongoing poor bond market conditions", the FT relates.  The group
will now slow development of the Woodsmith mine, the FT discloses.

The news on Sept. 17 sent the company's shares tumbling by 60% to
4p, the FT relays.

"The company will now conduct a comprehensive strategic review over
the next six months to assess and incorporate optimizations to the
project development plan and to develop a different financing
structure for the funds required," the FT quotes
Mr. Fraser as saying.  

"The process will incorporate feedback from prospective credit
providers around the risks associated with construction and will
include seeking a major strategic partner for the project."

London-listed Sirius warned in August that it would run out of cash
later this year if it had not been able to unlock a US$2.5 billion
credit facility being provided by JPMorgan, the FT recounts.  That
was contingent on the company successfully issuing a high-yield
bond, the FT notes.

According to the FT, the company said on Sept. 17 it had enough
cash to cover the six month strategic review period, although it
would have to return US$400 million raised via a convertible bond
earlier this year.

It said the UK government has turned down a request to guarantee
US$1 billion of bonds, which "would have enabled the company's
financing to be delivered as planned", the FT relays.


VTB CAPITAL: Moody's Withdraws Ba3 LongTerm Issuer Rating
---------------------------------------------------------
Moody's Investors Service withdrawn the following ratings and the
stable outlook of VTB Capital plc:

  - Long-term issuer ratings of Ba3

  - Short-term issuer ratings of Not Prime

At the time of the withdrawal, VTBC's long-term issuer ratings
carried a stable outlook.

RATINGS RATIONALE

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


WRIGHTBUS: Lord Bamford in Talks to Rescue Business
---------------------------------------------------
Oliver Gill at The Telegraph reports that the son of JCB
billionaire tycoon Lord Bamford is racing to strike a deal to
salvage "Boris Bus" maker Wrightbus.

According to The Telegraph, Jo Bamford is in talks to rescue at
least part of the Northern Irish bus builder after a rescue attempt
by local businessman Darren Donnelly collapsed on Sept. 16.

The withdrawal by Mr. Donnelly leaves Mr. Bamford, long touted as
the next leader of the international digger empire, and Chinese
engineering giant Weichai as the remaining frontrunners, The
Telegraph discloses.

Sources said Mr. Donnelly's deal would have led to about half of
Wrightbus' 1,400-strong workforce being culled, The Telegraph
notes.

It is unclear how many jobs would be saved under Mr. Bamford's
approach, The Telegraph states.



                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.

Copyright 2019.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
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