---

       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

          Tuesday, March 10, 2020, Vol. 21, No. 50

                           Headlines



C R O A T I A

3 MAJ: Croatian Gov't to Issue New Guarantees for New Orders


G E O R G I A

JSC PARTNERSHIP: Fitch Withdraws BB IDR Over Incorrect Info


M O N T E N E G R O

MONTENEGRO: Moody's Alters Outlook on B1 Issuer Rating to Stable


N O R W A Y

WR ENTERTAINMENT: Delisted From Merkur Market After Bankruptcy


R U S S I A

KALUGA GAS: Bank of Russia Okays Financial Resolution Plan
NEVSKY BANK: Bankruptcy Hearing Scheduled for March 17
RUSSNEFT PJSC: Fitch Lowers LT Issuer Default Rating to CCC+
SOVCOM CAPITAL: Fitch Assigns B Rating to $300MM AT1 Notes


U K R A I N E

UKRAINE: Fitch Affirms B LongTerm IDRs, Outlook Positive


U N I T E D   K I N G D O M

CASH ON GO: Enters Administration, Issuance of New Loans Halted
FLYBE GROUP: UK Government Ready to Support Regional Airports
MAGENTA PLC 2020: S&P Assigns BB+(sf) Rating on Class E Notes
PREMIER LOGISTICS: In Stronger Position After Trading Through CVA

                           - - - - -


=============
C R O A T I A
=============

3 MAJ: Croatian Gov't to Issue New Guarantees for New Orders
------------------------------------------------------------
SeeNews reports that the Croatian government will issue new
guarantees to local shipyard 3. Maj to help the troubled enterprise
take out loans in order to finance the planned construction of new
ships, economy minister Darko Horvat said.

"The Australian corporation that wants to build six new luxury
yachts at 3. Maj will not seek credit arrangements in Croatia, and
we will accept to issue state guarantees for the amount of up to
48% of the construction cost, on which the client has already
agreed," SeeNews quotes
Mr. Horvat as saying in a statement.

He added that the customer is ready to make the first investment in
the shipyard in the amount of EUR10 million (US$11 million) as
early as this week and the total investment will reach up to EUR50
million, SeeNews notes.

"The construction of the first ship was agreed upon without state
guarantees but we will accompany it with a state guarantee of up to
48% of the cost," Mr. Horvat, as cited by SeeNews, said.

According to SeeNews, the economy minister said the government will
issue the guarantees one by one for each new ship that 3. Maj will
build, in order to make sure that the ships will be completed and
the state guarantees not invoked.

Last year, 3. Maj narrowly avoided the launch of bankruptcy
proceedings thanks to a government decision to issue guarantees for
a HRK150 million life-saving loan from state-owned development bank
HBOR to help the shipyard pay wage arrears and restart production,
SeeNews recounts.

                       About 3 Maj

3 Maj is part of troubled Croatian shipbuilding group Uljanik,
which is heading into liquidation after its creditors decided in
January that there are no opportunities for restarting its
production.




=============
G E O R G I A
=============

JSC PARTNERSHIP: Fitch Withdraws BB IDR Over Incorrect Info
-----------------------------------------------------------
Fitch Ratings withdrew Georgia-based JSC Partnership Fund's
Long-Term Foreign- and Local-Currency Issuer Default Ratings 'BB'
with Stable Outlooks. The agency has also withdrawn PF's Short-Term
Local-Currency IDR at 'B'.

The ratings were withdrawn due to incorrect or insufficient
information provided.

KEY RATING DRIVERS

Fitch is withdrawing the ratings as PF has chosen to stop
participating in the rating process. Therefore, Fitch will no
longer have sufficient information to maintain the ratings and has
withdrawn PF's ratings without affirmation. Accordingly, Fitch will
no longer provide ratings or analytical coverage for PF, which
includes its related Environment, Social and Governance Relevance
Scores.

RATING SENSITIVITIES

Not applicable




===================
M O N T E N E G R O
===================

MONTENEGRO: Moody's Alters Outlook on B1 Issuer Rating to Stable
----------------------------------------------------------------
Moody's Investors Service changed the outlook on the Government of
Montenegro's ratings to stable from positive. Concurrently, Moody's
has affirmed the B1 issuer and senior unsecured debt ratings as
well as Montenegro's Not Prime short-term issuer rating.

The key driver for the change in outlook to stable from positive is
Montenegro's exposure to the significant fiscal risks that relate
to the completion of the four-stage Bar-Boljare highway project.
Whilst the first section of the Bar-Boljare highway project is
fully funded and completion is expected in the second half of 2020,
in Moody's view, the visibility regarding the funding of the
remaining three sections is impaired. The overall costs of the
highway project are estimated at about 45% of GDP, out of which
about 25% of GDP relate to the still-to-be funded three sections.
Montenegro's debt-to-GDP at the end of 2019 stood at about 79% of
GDP, higher than the median of B1-rated sovereigns of around 41% of
GDP. Employing public-private partnerships (PPPs) to realize the
remaining three sections is expected to be challenging in light of
the economic risks the project entails as well as considering the
country's limited institutional capacities, but even if achieved,
PPPs are not likely to materially reduce the repayment burden on
the government.

The affirmation of Montenegro's B1 sovereign ratings reflects (1)
Montenegro's favourable medium-term growth outlook balanced by the
economy's small size and low level of diversification; (2) the
country's improved underlying fiscal position which partially
mitigates the significant fiscal risks that relate to the
Bar-Boljare highway.

Montenegro's long-term foreign currency bond and deposit ceilings
remain at Ba1 and B2, respectively. The short-term foreign currency
bond and deposit ceilings remain Not Prime (NP).

RATINGS RATIONALE

RATIONALE FOR CHANGING THE OUTLOOK TO STABLE FROM POSITIVE

The key drivers of Moody's decision to change the outlook on
Montenegro's B1 rating to stable are the significant fiscal risks
that relate to the four-stage Bar-Boljare highway in combination
with an impaired visibility on the funding of the remaining three
sections, complicated by the economic risks that weigh on the
project's commercial viability as well as the country's limited
institutional capacities.

The 169km Bar-Boljare highway project consists of four sections
which will connect the port of Bar in the south of Montenegro and
Boljare on the Montenegrin-Serbian border in the north. Building
the first section of the highway (41km; from Smokovac to Matesevo)
was started in 2015, and the government expects this section to be
completed by September 2020, a delay compared to the initially set
completion date of May 2019. That said, there could be further
delays caused by the coronavirus outbreak which has hindered
Chinese construction workers to return to Montenegro after the
Chinese New Year celebrations. The first section costs about 20% of
GDP (based on the EUR/USD exchange rate as of March 3, 2020). It is
funded via a loan from the Export-Import Bank of China (A1 stable)
denominated in USD (85% of the overall costs) and by funds from the
budget of the central government (15% of the overall costs).

The remaining three sections of the highway project are necessary
to fully reap the economic benefit from the first section, as only
all four sections together connect the port of Bar via the capital
Podgorica to the Montenegrin-Serbian border; to make the connection
to the Serbian capital Belgrade, the completion of the highway on
the Serbian side is needed, too, which is also pending. The
additional costs of the remaining three sections on the Montenegrin
side are estimated at about 25% of GDP.

In Moody's view, the visibility regarding the funding of the
remaining three sections is impaired. Potential usage of public
funds for building the remaining three sections of the Bar-Boljare
highway poses a significant fiscal risk. The Montenegrin government
is looking into several options to fund the remaining sections of
the highway. The options include a PPP approach, as well as a
structure that includes funding from European partners and IFIs. In
Moody's view, it will be challenging to structure a PPP which
materially reduces the liability burden for the government.

Apart from the complexities that weigh on the funding options, the
fiscal risks include further cost overruns related to the first
section of the highway and (as there is no hedging) foreign
currency risks associated with the dollar-denominated loan taken
from the Export-Import Bank of China. Moody's estimates the overall
costs of the first section are around EUR1 billion or 20% of GDP
(based on the EUR/USD exchange rate as of March 3, 2020), which is
about 25% higher than initially planned. Similar cost overruns for
the remaining three sections of the highway project are a
possibility and add to the fiscal risks.

RATIONALE FOR THE AFFIRMATION OF MONENEGRO's B1 RATINGS

The first key driver of Moody's decision to affirm Montenegro's B1
ratings relates to the country's favourable medium-term growth
outlook. This is driven by significant investment projects, the
country's EU accession prospects as well as structural reforms.
Moody's estimates potential growth at around 3.5%. That said, the
economy's size, which is one of the smallest among Moody's
sovereign rated universe, and its low level of diversification are
constraints to Montenegro's economic strength.

The realization of large investment projects currently underway in
the tourism, construction, energy and to a lesser extent in the
agriculture sector will support the country's growth perspectives
and gradually reduce the sizeable current account deficit. Those
projects are typically funded by foreign direct investments (FDI).
Moody's forecast net FDIs to remain solid with an average of around
9.5% in 2020 and 2021. In this context, large energy projects
support investment and the country's export potential. The most
important of these is an undersea power cable connecting Montenegro
and Italy (Baa3 stable) that was put into operation in November
2019. This project makes Montenegro an important energy hub in the
region, increasing the country's competitiveness and encouraging
investments in new energy sources, particularly renewables.

Tourism is the country's most important sector, accounting for
almost 22% of GDP when including positive spill-overs to other
sectors. The number of tourists visiting Montenegro has more than
doubled over the past decade to a record of more than 1.2 million
in 2019, supported by new flight routes opened to additional
Western European locations and by increasing capacities of high-end
hotels. Moody's expects the Bar-Boljare highway will improve the
country's economic prospects by facilitating access to main coastal
hubs and diversifying the tourism sector further by opening links
to the mountainous north of the country. However, Moody's expects
the first section of the highway once in full operation will have
very limited positive spill-over effects on the economy, but more
substantial economic gains once the entire highway is completed and
linked to Serbian capital Belgrade, which Moody's does not expect
to be realized in the foreseeable future.

The second key driver of Moody's decision to affirm Montenegro's B1
ratings relates to the completion of most of the fiscal
consolidation measures of the 2017 consolidation strategy which
partially mitigates the fiscal risks related to the Bar-Boljare
highway. The fiscal consolidation measures, which include measures
on the revenue and expenditure side, have a volume of almost 3% of
GDP over the period from 2017 to 2020 and translate in an
improvement of the underlying fiscal position. This
counter-cyclical fiscal policy contrasts with the pro-cyclical
policy which eroded the government's fiscal space in the past. In
Moody's view, it is especially important for Montenegro to regain
fiscal space because of the full euroization of the economy as the
main macro tool to mitigate economic shocks is fiscal policy.

Fiscal consolidation in combination with improved tax collection
and solid economic growth resulted in a narrowing of the fiscal
deficit of the general government to 2.0% of GDP in 2019 and
Moody's expects a balanced budget in 2022 compared to an average of
almost -5% over 2014-2018. Moody's expects the debt-to-GDP ratio to
have peaked at about 79% in 2019 and -- assuming no crystallization
of contingent liabilities that relate to the highway project -- to
be on a firm downward trend thereafter, driven by solid growth,
primary surpluses and favourable stock-flow adjustments.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

Moody's takes account of the impact of environmental (E), social
(S), and governance (G) factors when assessing sovereign issuers'
economic, institutional and fiscal strength and their
susceptibility to event risk. In the case of Montenegro, the
materiality of ESG to the credit profile is as follows.

Environmental considerations currently exert limited influence on
Montenegro's credit profile. This is highlighted by Montenegro not
being among the 37 sovereigns whose credit quality is identified as
most susceptible to climate change. The share of energy from
renewable sources in gross final energy consumption was 38.8% in
2018 in Montenegro, which was one of the highest among EU countries
and significantly above the EU average of 18.9%.

Social risks are a factor affecting Montenegro's credit profile
given that its ageing population and low birth rate pose risks to
the country's growth potential, and therefore also to its fiscal
flexibility and the sustainability of its social security systems.
In addition, labour market mismatches constrain medium-term growth,
as highlighted by the persistently high, though decreasing, youth
unemployment rate of 21.8% and a high share of long-term unemployed
at 80.0% of the total unemployed in the third quarter of 2019.

Montenegro's framework of governance affects its credit profile.
The country's operating environment has been constrained by
regulatory and administrative weaknesses since its independence in
2006. However, several legal, administrative and procedural reforms
are underway in preparation for EU accession which are expected to
improve Montenegro's framework of governance.

WHAT COULD CHANGE THE RATING UP/DOWN

The rating would likely be upgraded if the government broadened its
consolidation measures beyond current plans and at the same time
significantly mitigated the fiscal risks related to the Bar-Boljare
highway, resulting in an improvement of government's debt metrics
and restoration of the government's fiscal space. In addition,
significant progress on the completing of most of the EU's Acquis
Communautaire with more chapters being closed and supporting
progress towards EU accession would also be credit positive because
of the resulting strengthening of the institutions and governance.
Moreover, a material reduction in external vulnerabilities would
also support Montenegro's credit profile.

Conversely, downward pressure on Montenegro's credit profile would
develop should the government's consolidation efforts slow
materially resulting in a deterioration of debt metrics. Cost
overruns for the three remaining parts of the Bar-Boljare highway
project that would go beyond the current estimates and would result
in contingent liabilities would be credit negative, too. Other
negative factors include a weakening of Montenegro's external
position, for example, because of worsening competitiveness in the
areas of tourism and other export-oriented industries.

GDP per capita (PPP basis, US$): 19,172 (2018 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 5.1% (2018 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 1.4% (2018 Actual)

Gen. Gov. Financial Balance/GDP: -3.7% (2018 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: -17% (2018 Actual) (also known as
External Balance)

External debt/GDP: [not available]

Economic resiliency: ba1

Default history: No default events (on bonds or loans) have been
recorded since 1983.

On March 03, 2020, a rating committee was called to discuss the
rating of the Montenegro, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have not materially changed. The
issuer's institutions and governance strength has not materially
changed. Montenegro is exposed to substantial fiscal risks related
to the completion of the full Bar-Boljare Highway project. The
issuer's susceptibility to event risks has not materially changed.

The principal methodology used in these ratings was Sovereign
Ratings Methodology published in November 2019.




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

WR ENTERTAINMENT: Delisted From Merkur Market After Bankruptcy
--------------------------------------------------------------
The Oslo Stock Exchange passed the following decision on WR
Entertainment ASA:

"The Oslo Stock Exchange considers that WR Entertainment ASA,
issuer of shares with ISIN NO0010755077, is not suitable for
listing on the Merkur Market, and has resolved to delist the shares
from trading, cf. section 12.1 of the Continuing Obligations, cf.
section 9-30 (1) of the Securities Trading Act. The last listing
date for the Company's shares will be April 3, 2020."

The Oslo Stock Exchange's decision to delist a company from Merkur
Market cannot be appealed.

A brief summary of the case:

The Oslo Stock Exchange considers that WR Entertainment ASA is not
suitable for listing on Merkur Market as no longer satisfy the
conditions and rules for Merkur Market.  The Company's shares have
been suspended from trading since the Company filed for bankruptcy
in June 2019.  The Company does not fulfil several of the
conditions for listing on Merkur Market.  There are also ongoing
violations of the continuing obligations related to amongst other,
financial reporting and payment of the Oslo Stock Exchange's
listing fees.





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

KALUGA GAS: Bank of Russia Okays Financial Resolution Plan
----------------------------------------------------------
The Bank of Russia reviewed and approved amendments to the plan for
the State Corporation Deposit Insurance Agency to participate in
bankruptcy prevention measures for the Kaluga Gas and Energy
Joint-Stock Bank Gazenergobank (Joint-Stock Company) (the Bank)
(Registration No. 3252, Kaluga), including the plan for financial
resolution of the Bank.

The Bank's core business will be retail lending, which will be
developed in cooperation with PJSC SKB-Bank, the Bank's Investor.

The plan for financial resolution provides for a merger of the Bank
with the Investor by the end of 2028.  The joint venture will
comply with the Bank of Russia's mandatory requirements, including
buffers to the capital adequacy requirements, for financial
stability of credit institutions.



NEVSKY BANK: Bankruptcy Hearing Scheduled for March 17
------------------------------------------------------
The provisional administration to manage PJSC Nevsky Bank
(hereinafter, the Bank) appointed pursuant to Bank of Russia Order
No. OD-2849, dated December 13, 2019, following the revocation from
the Bank of its banking license, carried out an inspection at the
Bank and established circumstances suggesting that officials of the
Bank had committed actions to unlawfully receive payments from the
compulsory deposit insurance fund.

According to the assessment by the provisional administration, the
value of the Bank's assets is insufficient to fulfill its
obligations to creditors.

On December 23, 2019, the Bank of Russia applied to the Court of
Arbitration of Saint Petersburg and the Leningrad Region to declare
the Bank insolvent (bankrupt).  The hearing is scheduled for March
17, 2020.

The Bank of Russia submitted the information on the financial
transactions suspected of being criminal offences that had been
conducted by the Bank's officials to the Prosecutor General's
Office of the Russian Federation and the Investigative Committee of
the Ministry of Internal Affairs of the Russian Federation for
consideration and procedural decision-making.


RUSSNEFT PJSC: Fitch Lowers LT Issuer Default Rating to CCC+
------------------------------------------------------------
Fitch Ratings downgraded Russia-focused PJSC Russneft's Long-Term
Issuer Default Rating to 'CCC+' from 'B/Positive'.

The downgrade of Russneft reflects its worsened liquidity position
and recent transactions with companies affiliated with Russneft's
main shareholder that have increased its Fitch-adjusted leverage.
The latter has cast doubt on Russneft's corporate governance
practices. Fitch projects Russneft to generate moderately positive
FCF, which however will be insufficient to cover maturities under
the current repayment schedule. Its ability to attract external
funding is constrained by its loan agreement with its major
creditor, VTB.

Russneft's business profile, however, remains good. The company's
production (around 140 thousand barrels per day (kb/d), excluding
non-consolidated assets in Azerbaijan) and reserves are
commensurate with the 'BB' rating category.

KEY RATING DRIVERS

Weakened Liquidity: Russneft's liquidity position has deteriorated
due to lower oil prices and higher projected dividends on preferred
shares. While Fitch expects Russneft to generate positive FCF over
2020-2022, it is likely to be insufficient to meet repayments under
Russneft's loan with VTB (around USD90 million p.a.) and its
long-term prepayment deal with Glencore (around USD50 million
p.a.). For 2020 Fitch projects liquidity score of a low 0.4x, which
is reflected in the rating downgrade. Potential liquidity sources
(excluded from its liquidity analysis) include capex reduction,
short-term prepayment deals, additional funding from VTB and funds
provided by the shareholder.

High Dependence on a Single Creditor: The ability of Russneft to
attract funding elsewhere, except for prepayment deals, is limited
by its loan agreement with VTB. Absent such restriction, Fitch
believes it could be able to attract additional funding from
Russian banks, though this is untested. Its base case is for VTB to
continue cooperating with Russneft, including by providing
additional funding or extending maturities, when required, given
their relationship record and Russneft's good business profile.
However, Russneft's high dependence on a single major creditor
makes the company more vulnerable to liquidity risk.

High Adjusted Leverage: Fitch projects Russneft's funds from
operations (FFO) net leverage (adjusted for operating leases,
long-term prepayments and guarantees) to average 4.5x over
2020-2022. This is higher than its previous base case (around 3x
over the same period), primarily because of certain transactions
with affiliated companies. Russneft's leverage excluding Fitch's
adjustments for the prepayment deals, preferred stock and
guarantees is significantly lower at 2.8x over 2020-2022.

Prepayments Deals: Glencore, Russneft's second-largest shareholder
(31% of the common stock), has been supporting Russneft through
long-term prepayments for future oil supplies. In 2019, it also
attracted a long-term prepayment from VTB (used to fund a
transaction with an affiliated company) and a short-term prepayment
from a private trader (used for general corporate purposes). Fitch
estimates Russneft's total prepayment balance at end-2019 amounted
to around RUB42 billion, up from RUB28 billion at end-2018. Fitch
views prepayments as effectively a debt-like instrument.

Concentrated Ownership: Russneft's shareholding structure is
concentrated, with Mikhail Gutseriev and his family controlling 47%
of ordinary shares. Russneft and other businesses controlled by Mr
Gutseriev are consolidated under the umbrella of the Safmar group,
which does not prepare public accounts. Moreover, most of Mr
Gutseriev investments are not public companies and it is not
possible to assess the financial position of the group.

Transactions with Affiliated Parties: In 2019, Russneft entered
into several transactions with affiliated companies, including a
guarantee for a EUR267 million loan to fund Mr Gutseriev's stake
purchase in PJSC Kuzbass Fuel Company, and a short-term loan
granted to an affiliated company for around EUR200 million (funded
by the long-term prepayment from VTB). Russneft expects the latter
loan will be repaid in 2020, which is not taken into account in its
rating case. These recent transactions signal weak corporate
governance practices and high exposure to key man risk, which is
reflected in the 'CCC+' rating.

Preferred Shares: In 2019, VTB purchased one-third of Russneft's
preferred shares previously owned by Mr. Gutseriev's family and
subsequently transferred to Rost Bank. The bank became part of the
rescued and nationalised B&N Bank, now owned by the Central Bank of
Russia (CBR). CBR later transferred the shares to Trust bank. In
2019, VTB purchased a third of the shares from Trust, while
Russneft guaranteed to purchase back the shares from VTB for RUB21
billion in 2026, which Fitch adds to Russneft's adjusted debt.
Russneft has also committed to increase its preferred dividend
payments from USD16 million-USD40 million to a minimum USD60
million, and has provided a guarantee to VTB with regard to the
minimum dividends payable to the bank.

Preferred Shares Treated as Debt: Fitch continues to allocate the
preferred stock as 100% debt according to Fitch's Corporate Hybrids
Treatment and Notching Criteria. Even though the shares are
non-cumulative, a decision not to pay preferred dividends would
trigger the guarantee issued in favour of VTB and could, in its
view, result in adverse reputational consequences for the company's
main shareholder.

Tax Incentives Support Earnings: Russneft benefits from tax
incentives enacted by the government to stimulate production from
depleted and hard-to-recover reserves, where production costs are
higher. Its strategy is to ramp up production at such fields, eg,
Tagrinskoye and Verkhne-Shapshinskoye in western Siberia, through
the application of enhanced oil recovery techniques, such as
horizontal drilling and multi-stage fracking. In 2019, Russneft
continued to increase the share of produced oil subject to tax
incentives, which enabled it to generate broadly flat EBITDA
year-on-year despite lower oil prices.

Stable Production and Reserves: Fitch assumes Russneft's production
to marginally fall in 2020 and remain broadly stable over
2020-2023. Russneft's oil production and reserves are commensurate
with the 'BB' rating category; however, the company has higher
production costs than Russian peers' and higher susceptibility to
potential changes in taxation (eg, reduction in tax incentives).

ESG Influence: Russneft has an ESG Relevance Score of 5 for Group
Structure factor (eg Complexity, Transparency and Related-Party
Transactions) due to material transactions with affiliated
companies, including a loan and guarantees, which have been
provided despite the company's already limited liquidity and have
resulted in materially higher adjusted leverage. This has a
negative impact on the credit profile, and is highly relevant to
the rating, contributing to the downgrade.

Russneft has an ESG Relevance Score of 4 for Governance Structure
(eg Board Independence and Effectiveness; Ownership Concentration).
Fitch believes that the recent affiliated company transactions
point to weak corporate governance practices and exposure to the
key man risk, which has a negative impact on the credit profile,
and is relevant to the rating in conjunction with other factors.

DERIVATION SUMMARY

Russneft's downgrade reflects the company's weak liquidity
position, high adjusted net leverage on the back of recent
transactions with affiliated parties and corporate governance
risks. The company's production (around 140kb/d in 2018) and proved
reserves (around 1 billion barrels) are in line with the 'BB'
rating category and its business profile and cash-flow generation
are better than those of Seplat Petroleum Development Company
(B-/Positive) and Lonestar Resources US, Inc. (B-/Stable), though
Russneft has higher refinancing risks and weaker liquidity.

KEY ASSUMPTIONS

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

  - Exchange rate: USD/RUB 65.1 in 2020, 66.5 in 2021 and 66.5
thereafter;

  - Upstream production falling 3% in 2020 and stagnant up to
2022;

  - Improving per-barrel profitability due to higher share of
production from greenfields with a favourable tax treatment;

  - Capex averaging RUB20 billion in 2020-2022;

  - Annual preferred dividends of USD60 million;

  - No dividends paid to ordinary shareholders.

RATING SENSITIVITIES

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

  - Structural improvement in liquidity (liquidity score above
1.0x) and/or demonstrated ability to attract external funding.

  - Improved corporate governance practices, including fewer
transactions with affiliated parties and efficient and independent
corporate governance structure in place.

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

  - Deteriorating liquidity position.

  - FFO-adjusted net leverage (including preferred stock and
prepayments) sustainably above 7x.

LIQUIDITY AND DEBT STRUCTURE

Weak Liquidity: Fitch assesses Russneft's liquidity as weak with a
projected one-year liquidity score at 0.4x. Alternative liquidity
sources could include capex reduction, short-term prepayment deals,
additional funding from VTB and funds provided by the shareholder.
The company's liquidity position over the next three-to-five years
is likely to remain weak based on the current debt maturity
profile.

SUMMARY OF FINANCIAL ADJUSTMENTS

  - Russneft's operating lease expenses are capitalised at 6x and
added to adjusted debt.

  - Fitch treats preferred shares of Russneft as debt. The value of
shares was RUB27 billion at end-2018.

  - Fitch treats prepayments for oil deliveries from Glencore and
other traders as debt (RUB28 billion at end-2018).

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or to the way in which they are being
managed by the entity.

Russneft has an ESG Relevance Score of 5 for Group Structure factor
(eg Complexity, Transparency and Related-Party Transactions) due to
material transactions with affiliated companies, including a loan
and guarantees, which have been provided despite the company's
already limited liquidity and have resulted in materially higher
adjusted leverage. This has a negative impact on the credit
profile, and is highly relevant to the rating, contributing to the
downgrade.

Russneft has an ESG Relevance Score of 4 for Governance Structure
(eg Board Independence and Effectiveness; Ownership Concentration).
Fitch believes that the recent affiliated company transactions
point to weak corporate governance practices and exposure to the
key man risk, which has a negative impact on the credit profile,
and is relevant to the rating in conjunction with other factors.


SOVCOM CAPITAL: Fitch Assigns B Rating to $300MM AT1 Notes
----------------------------------------------------------
Fitch Ratings assigned SovCom Capital DAC's USD300 million 7.75%
perpetual Additional Tier 1 (AT1) notes a final long-term rating of
'B'.

SovCom Capital DAC, registered in Ireland, is a financing special
purpose entity of Russia-based PJSC Sovcombank (SCB,
BB+/Stable/bb+).The proceeds from the issue have been used solely
for financing a perpetual subordinated loan to SCB, which will
count as regulatory Tier 1 capital at the bank.

The notes do not have an established redemption date. However, SCB
will have an option to repay the notes every five years starting
from 2025, subject to the Central Bank of Russia's (CBR) approval.

The assignment of the final rating follows the completion of the
issue and receipt of documents conforming to the information
previously received. The final rating is in line with the expected
rating assigned on January 22, 2020.

KEY RATING DRIVERS

The notes are rated four notches below SCB's 'bb+' Viability Rating
(VR). According to Fitch's Bank Rating Criteria, this is the
highest possible rating that can be assigned to deeply subordinated
notes with fully discretionary coupon omission issued by banks with
a VR anchor of 'bb+'. The notching reflects the notes' higher loss
severity in light of their deep subordination and additional
non-performance risk relative to the VR given a high write-down
trigger and fully discretionary coupons.

The notes qualify as AT1 capital in SCB's regulatory accounts due
to a full coupon omission option at the bank's discretion and full
or partial write-down in case either (i) CET1 falls below 5.125%
(versus a 4.5% regulatory minimum) for six or more operational days
in aggregate during any consecutive period of 30 operational days;
or (ii) the CBR approves a plan for the participation of the CBR in
bankruptcy prevention measures in respect of SCB, or the Banking
Supervision Committee of the CBR approves a plan for the
participation of the Deposit Insurance Agency in bankruptcy
prevention measures in respect of the bank.

Fitch expects any coupon omission to occur before the bank breaches
the notes' 5.125% CET1 trigger, which is more likely if the CET1
capital ratio falls below the minimum capital requirement with
buffers (7%, including capital conservation buffer of 2.5%
applicable from January 1, 2020). SCB is not included in the list
of Russia's domestically systemically important banks and does not
need to maintain a systemic importance buffer (1% from January 1,
2020). The risk of coupon omission is reasonably mitigated by SCB's
stable financial profile, healthy profitability, moderate growth
and reasonable headroom over capital minimums including buffers
(consolidated CET1 ratio was 9.6% at end-3Q19).

RATING SENSITIVITIES

The issue rating could be downgraded if SCB's VR is downgraded.
This is not likely given the Stable Outlook on the bank's ratings.
If the VR is upgraded, similar rating action may be taken on the
notes.

Fitch may widen the rating notching if non-performance risk
increases. For example, this could arise if SCB fails to maintain
reasonable headroom over the minimum capital adequacy ratios
(including the buffers) or if the instrument becomes
non-performing, i.e. if the bank cancels any coupon payment or at
least partially writes off the principal. In this case, the AT1's
rating would be downgraded based on Fitch's expectations about the
form and duration of non-performance.




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

UKRAINE: Fitch Affirms B LongTerm IDRs, Outlook Positive
--------------------------------------------------------
Fitch Ratings has affirmed Ukraine's Long-Term Foreign- and
Local-Currency Issuer Default Ratings at 'B'. The Outlook is
Positive.

KEY RATING DRIVERS

Ukraine's ratings balance improved policy consistency and
credibility, a record of multilateral support, and low government
debt against low external liquidity relative to high financing
needs associated with large sovereign debt repayments, a
vulnerable, albeit improving, banking sector, and weak governance
indicators.

The Positive Outlook reflects Fitch's expectation that continued
engagement with the IMF under a new multi-year programme will help
support a sustained reduction in refinancing risks by facilitating
access to additional external financing (official and market),
entrench improved macrofinancial stability and fiscal
sustainability, and reduce the scope for reform reversals.

Ukraine has made significant progress in obtaining legislative
approval for a series of reforms that if effectively and credibly
implemented, could help address structural weaknesses that weigh on
growth prospects and institutional quality. A new government has
been recently appointed by parliament under the leadership former
Deputy Prime Minister Denys Shmyhal. The near-term challenges for
the new cabinet will be to avoid uncertainty over continuity of
economic policy, manage a smooth transition in the negotiation
process towards a new IMF programme and reinforce the credibility
of the Zelensky administration's commitment to reform.

The IMF and Ukraine reached a staff level agreement for a new
three-year USD5.5 billion Extended Fund Facility (EFF) in early
December. Final approval by the IMF's Board is dependent on prior
actions that include the approval of legislation to strengthen the
bank resolution framework, which will be submitted to Parliament
after the second-reading vote of the land market reform.

Fitch's baseline scenario is that Ukraine obtains final IMF Board
approval for a new programme in 1H20, but further delays cannot be
ruled out. Risks to the EFF's approval and implementation stem from
Ukraine's weak track record in completing previous programmes,
potentially negative judicial rulings that lead to reform
reversals, execution risks after reforms are approved in
parliament, disruptive cabinet overhauls, potential fragmentation
of the President party's Rada representation and the influence of
still powerful oligarchs and other vested interests.

The National Bank of Ukraine's (NBU) net FX purchases rose to
USD7.9 billion in 2019, bringing international reserves to USD25.3
billion and lifting current external payments (CXP) coverage to 3.6
months, closer to the current 3.8 months 'B' median. Fitch expects
reserve coverage to remain stable in 2020-2021. External liquidity,
measured by the ratio of the country's liquid external assets to
its liquid external liabilities, rose to 93% for 2020 but is still
below the 'B' median of 122%.

External financing needs will remain high relative to peers (70% of
international reserves) due to still large debt repayments and
wider current account deficits. External sovereign amortisations
(government plus NBU) will rise to USD5.0 billion in 2020 and
USD4.8 billion in 2021 (external bond repayments averaging USD2.4
billion). Fitch expects the current account deficit to widen to
3.0% and 4.0% of GDP in 2020 and 2021, respectively, from a low
0.7% in 2019, driven by continued import growth boosted by domestic
demand and reduced gas transit fees.

Fitch considers that continued engagement with the IMF remains key
to obtaining official disbursements from the EU, potential new
multilateral financing, and continued access to external markets on
favourable terms. Ukraine issued a EUR1.25 billion bond in
international markets in early 2020. Foreign investors have
markedly increased their share of domestic debt, reaching 26% of
the total (not including NBU holdings) in January 2020. Continued
non-resident inflows into the domestic market, albeit at a smaller
scale than 2019, favourable domestic liquidity conditions and
government cash holdings provide short-term financing flexibility.
Ukraine has also approved changes to the budget code that allows
the government to pre-finance debt repayments.

Ukraine's strengthened policy framework continues to deliver
improved macroeconomic stability underpinned by exchange rate
flexibility, the NBU's independence and commitment to its inflation
target (5% plus or minus 1% in 2020), and moderate fiscal
imbalances. The hryvnia strengthened by 14% versus the US dollar in
2019 due to increased agricultural exports after a record harvest
and portfolio inflows (USD4.3 billion) into the domestic government
debt market. Fitch considers that the NBU's easing cycle, lower
portfolio inflows, a wider current account deficit and increased
global uncertainty will lead to a weaker hryvniain 2020 relative to
2019.

Inflation declined rapidly in 2H19, bringing the year-inflation
rate (4.1%) down to the NBU's target. As inflationary pressures
remain subdued (3.2% in January), Fitch expects inflation to
average 4.6% in 2020 and 5.3% in 2021, close to the forecast 4.9%
and 5.0% 'B' medians. The NBU has cut its key policy rate by 700bp
to 11% since the beginning of 2019 and revised its policy rate
forecast downto 7% by end-2020. Risks from international financial
market volatility, delays in the IMF programme approval or
stronger-than-anticipated domestic demand pressures will determine
the future pace and scale of the easing cycle.

Government debt declined sharply to 44.4% of GDP (50.4% including
guarantees) in 2019, 25pp lower than the 2016 peak (69.2%) and
below the current 56.3% 'B' median, aided by a strong hryvnia.
Primary surpluses, stable growth, lower financing costs and
moderate exchange rate depreciation will support continued
government debt reduction, albeit at a gradual pace, to 42.3% in
2021. Debt dynamics remain exposed to currency risk, but Ukraine
has increased the local currency share of government debt to 41% in
2019, from 33% in 2018, supported by greater non-resident
investment.

Ukraine's fiscal deficit remains below peers. Fitch estimates the
general government deficit reached 2% of GDP in 2019, as weaker
trade-related revenue growth was compensated by lower-than-budgeted
debt service (stronger hryvnia and lower financing costs) and
energy subsidies. Fiscal risks for 2020 stem from weaker revenue
growth due to a stronger than budgeted hryvnia and lower
privatisation revenues in addition to still to be defined social
expenditure increases announced by the incoming authorities.
Receipts from the Naftogaz arbitration award will help cushion
government revenues and provide room to accommodate expenditure
commitments under the 2020 budget, targeting a 2.1% of GDP
deficit.

According to official estimates, the economy grew by 3.2% in 2019
and Fitch expects growth of 3.5% in 2020 and 3.8% in 2021 supported
by private consumption and investment. The revised version of the
land market legislation will be positive for economic growth in the
near term through increased consumption (as result of land sales)
and expected increase in the demand for credit for the agricultural
sector. Nevertheless, the scale of potential investment and
productivity improvements will be constrained by limits on foreign
investors' participation.

Fitch considers that growth and investment prospects depend on the
adequate and timely implementation of reforms to address constrains
such as the rule of law, corruption, customs and taxation and law
enforcement. As with other emerging markets, downside risks to the
growth outlook have increase due to uncertainty of the impact of
COVID-19 on global growth and commodity prices.

Near-term risks for financial stability have declined due to
improved bank capitalisation, and a more favourable macroeconomic
backdrop. State-owned banks (60.4% of total assets) will present a
strategy to deal with non-performing loans (48.4% of total loans
although 95% covered by provisions) by end-March 2020, and
legislation is currently being developed to allow them to write-off
bad loans given the high provision levels. Retail lending growth
remains strong and the NBU will introduce increased risk weights on
consumer credit (including outstanding loans) in 2021 to prevent a
build-up of risks. Deposit (39%) and credit (36.9%) dollarisation
has declined but remains higher than peers. The NBU has introduced
foreign currency deposit reserve requirements to encourage reduced
dollarisation.

Under President Zelensky, relations with Russia have taken a
constructive tone with high level meetings, prisoner swaps, moves
towards de-escalation in the frontline and openness to continue
with the dialogue. Fitch has yet to perceive a significant shift in
the Ukrainian and Russian positions regarding key issues such as
the control of the conflict area and borders with Russia, the
status of the temporarily occupied territories in the Donetsk and
Luhansk regions and the timing and type of elections in those
territories.

Naftogaz and Gazprom agreed on a new five-year contract at the end
of 2019, which avoided an abrupt interruption of gas transit.
Naftogaz also received a UD2.9 billion payment from the 2018
Stockholm Arbitration award.

The case regarding the USD3 billion debt legal dispute with Russia
was heard in the UK Supreme Court in late 2019. A ruling will be
likely later in 2020, but Fitch currently does not expect the
dispute resolution to impair the sovereign's capacity to access
external financing and meet external debt service commitments.

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

Fitch's proprietary SRM assigns Ukraine a score equivalent to a
rating of 'B' on the Long-Term Foreign-Currency (LT FC) IDR scale.

Fitch's sovereign rating committee did not adjust the output from
the SRM to arrive at the final LT FC IDR.

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

RATING SENSITIVITIES

The main factors that could, individually or collectively, lead to
an upgrade are:

  - Reduction in external financial vulnerabilities, for example
due to a strengthened external balance sheet and greater financing
flexibility.

  - Increased confidence that progress in reforms will lead to
improvement in governance standards and higher growth prospects
while preserving the improvements in macroeconomic stability.

  - Further declines in government indebtedness and improvements in
the debt structure.

The main factors that could, individually or collectively, lead to
the Outlook being revised to Stable are:

  - Re-emergence of external financing pressures or increased
macroeconomic instability, for example stemming from failure to
agree an IMF programme or delays to disbursements from it.

  - External or political/geopolitical shocks that weaken the
macroeconomic performance and Ukraine's fiscal and external
position.

  - Failure to improve standards of governance, raise economic
growth prospects or reduce the public debt to GDP ratio.

KEY ASSUMPTIONS

Fitch does not expect resolution of the conflict in eastern Ukraine
or escalation of the conflict to the point of compromising overall
macroeconomic performance.

Fitch assumes that the debt dispute with Russia will not impair
Ukraine's ability to access external financing and meet external
debt service commitments.

ESG CONSIDERATIONS

Ukraine has an ESG Relevance Score of 5 for Political Stability and
Rights as World Bank Governance Indicators have the highest weight
in Fitch's SRM and are therefore highly relevant to the rating and
a key rating driver with a high weight. A major escalation of the
conflict in the East of Ukraine represents a risk.

Ukraine has an ESG Relevance Score of 5 for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
World Bank Governance Indicators have the highest weight in Fitch's
SRM and in the case of Ukraine weaken the business environment and
investment prospects; this is highly relevant to the rating and a
key rating driver with high weight.

Ukraine has an ESG Relevance Score of 4 for Human Rights and
Freedoms as World Bank Governance Indicators have the highest
weight in Fitch's SRM and are relevant to the rating and a rating
driver.

Ukraine has an ESG relevance Score of 4 for Creditors Rights as
willingness to service and repay debt is relevant to the rating and
a rating driver, as for all sovereigns.




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

CASH ON GO: Enters Administration, Issuance of New Loans Halted
---------------------------------------------------------------
The Financial Conduct Authority disclosed that on March 5, 2020,
Cash on Go, trading as Peachy.co.uk and Uploan.co.uk, was placed
into administration.  Adam Stephens, Gilbert Lemon and Henry
Shinners of Smith & Williamson LLP were appointed as Joint
Administrators.

Cash on Go is a high cost short term lender, otherwise known as a
payday lender, which lends small sums to customers until the next
payday or up to 12 months.  The Joint Administrators will update
customers as soon as possible.

If you have any questions in the meantime about your loan, please
contact Cash on Go customer support team:

Peachy customer support team: www.peachy.co.uk  and 0800 0124743

Uploan customer support team: www.uploan.co.uk and 0800 0239209

The FCA is in close contact with the firm and the administrator
with regard to the fair treatment of customers.

All existing loan agreements remain in place and will not be
affected by the proposed administration.  However, the firm is no
longer able to issue new loans.

Customers who are struggling financially can get free and impartial
guidance from the Money Advice Service.


FLYBE GROUP: UK Government Ready to Support Regional Airports
-------------------------------------------------------------
Sarah Young at Reuters reports that Britain "stands ready" to
support regional airports after the collapse of airline Flybe on
March 5, Kelly Tolhurst, a junior minister with responsibility for
aviation, told parliament.

"We recognize the impact that this will have on UK airports
particularly those which have large-scale Flybe operations.
Government stands ready to support this sector," Reuters quotes Ms.
Tolhurst as saying.

"We are urgently working with industry to identify opportunities to
fill routes," she added.

According to Reuters, while she expressed sympathy for employees
and passengers affected by the collapse, she said that in a
competitive market, companies do fail and it was not the role of
government to prop them up.

Flybe is headquartered in Essex and flies from many UK regional
airports, operating almost 40% of UK domestic flights.  It is
Europe's largest independent regional airline, carrying around 8
million passengers per year from 81 airports in the UK and EU,
operating 210 routes in 15 countries.  The company employed around
2,400 staff across the UK.


MAGENTA PLC 2020: S&P Assigns BB+(sf) Rating on Class E Notes
-------------------------------------------------------------
S&P Global Ratings assigned credit ratings to Magenta 2020 PLC's
class A to E notes. At closing, Magenta 2020 PLC also issued
unrated class X1 and X2 certificates.

The transaction is backed by one loan, which Goldman Sachs Bank USA
(Goldman Sachs) originated to facilitate the acquisition of 17
full-service hotel properties in the U.K. by DTGO Corp. Ltd. from
Marathon Asset Management.

The securitized loan in this true-sale transaction equals GBP270.9
million and is secured by seven Crowne Plaza, three Doubletree by
Hilton, three Hilton Garden Inn, one Holiday Inn, one Hotel Indigo,
and two AC Hotel by Marriott branded hotels spread throughout the
U.K.

As part of EU and U.S. risk-retention requirements, the issuer and
the issuer lender (Goldman Sachs) entered into a GBP13.98 million
(representing 5% of the senior loan and the liquidity reserve)
issuer loan agreement. The issuer lender advanced the issuer loan
to the issuer on the closing date. The proceeds of the issuer loan
were applied by the issuer as partial consideration for the
purchase of the senior loan from the senior loan seller.

Magenta 2020 PLC also issued an additional GBP8.3 million of class
A notes, the proceeds of which, together with a portion of the
issuer loan, will be held in cash in the transaction account. These
funds serve as a liquidity reserve in lieu of a traditional
liquidity facility. The total note issuance is therefore larger
than the outstanding loan balance.

The market value of the portfolio of 17 full-service hotels is
GBP435.55 million, which equates to a loan-to-value (LTV) ratio of
62.2%. The five-year loan has scheduled amortization. The loan's
event of default covenants are triggered if the LTV exceeds 72.19%
or if the debt yield is less than 8.75% during the first six months
of the loan, less than 8.41% in the following six months, less than
8.08% in the following two years, or less than 8.75% thereafter.

S&P said, "Our ratings address Magenta 2020 PLC's ability to meet
timely interest payments and principal repayment no later than the
legal final maturity in December 2029. Our ratings on the notes
reflect our assessment of the underlying loan's credit, cash flow,
and legal characteristics, and an analysis of the transaction's
counterparty and operational risks."

  Ratings List

  Class     Rating     Amount (GBP)
  A         AAA (sf)   115,300,000
  B         AA (sf)    42,000,000
  C         A (sf)     40,000,000
  D         BBB- (sf)  45,000,000
  E         BB+ (sf)   23,346,000
  X1        NR         N/A
  X2        NR         N/A

  NR--Not rated.
  N/A--Not applicable.


PREMIER LOGISTICS: In Stronger Position After Trading Through CVA
-----------------------------------------------------------------
Insider Media reports that Premier Logistics, a
Leicestershire-based logistics company, has said it is in a
stronger position after trading through a company voluntary
arrangement (CVA) period.

According to Insider Media, the company concentrated on its core
services during the 18-month CVA which ended in February.

The business stripped back its assets, separated out non-profitable
contracts and focused on delivering excellent service to a core
group of loyal customers, Insider Media discloses.

Being in a CVA had meant Premier Logistics wasn't able to tender
for certain contracts, Insider Media notes.

The company now runs an efficient fleet of 40 vehicles, reduced
from 120 two years ago, Insider Media states.

"With the support of a loyal customer base and our workforce, I'm
proud to say that Premier Logistics has successfully traded through
the CVA and is now in a much stronger position for the future,"
Insider Media quotes Managing director Lee Christopher as saying.

"There's been a lot of hard work to review the business, reduce our
assets and cost base and become more efficient to build a strong
foundation for the future."



                           *********


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 2020.  All rights reserved.  ISSN 1529-2754.

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

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

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


                * * * End of Transmission * * *