---

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

                          E U R O P E

          Thursday, April 2, 2020, Vol. 21, No. 67

                           Headlines



A Z E R B A I J A N

[*] Moody's Takes Action on 4 Azeri Banks


B U L G A R I A

VIVACOM: S&P Downgrades ICR to 'B+', On CreditWatch Negative


C R O A T I A

CITY OF ZAGREB: S&P Alters Outlook to Negative & Affirms 'BB' ICR


F I N L A N D

AMER SPORTS: Moody's Cuts CFR to B3, Outlook Negative


G E R M A N Y

[*] GERMANY: Amends Insolvency Laws Amid Coronavirus Pandemic


G R E E C E

ALPHA BANK: S&P Alters Outlook to Stable & Affirms 'B' ICR


I R E L A N D

KINLAY GROUP: Covid-19 Pandemic Effects Prompt Liquidation
MAN GLG VI: S&P Assigns BB- (sf) Rating on Class E Notes


I T A L Y

ESSELUNGA SPA: S&P Downgrades ICR to BB+ on Increased Debt Burden


L U X E M B O U R G

LSF9 BALTA: S&P Downgrades ICR to 'B-', Outlook Negative


N E T H E R L A N D S

FUGRO N.V.: S&P Discontinues Prelim 'B' LT Issuer Credit Rating
SPECIALTY CHEMICALS: S&P Alters Outlook to Stable, Affirms B+ ICR


S P A I N

AERNNOVA AEROSPACE: S&P Assigns 'B+' ICR, Alters Outlook to Neg.


U N I T E D   K I N G D O M

BRISTOL CARS: Goes Into Liquidation, Owes Millions of Pounds
INTERNATIONAL CAR: S&P Lowers ICR to 'B-', Outlook Stable
K3 BUSINESS: Placed Into Administration by Parent Company
OAKLANDS CONSTRUCTION: Coronavirus Crisis Prompts Liquidation
PRAESIDIAD GROUP: S&P Cuts ICR to 'CCC' on Thin Covenant Headroom

SCALLOWAY HOTEL: Enters Administration, Ceases Trading
TODS AEROSPACE: Enters Administration, 25 Jobs Affected

                           - - - - -


===================
A Z E R B A I J A N
===================

[*] Moody's Takes Action on 4 Azeri Banks
-----------------------------------------
Moody's Investors Service took rating actions on four Azeri banks.
Moody's affirmed the Baseline Credit Assessments (BCAs), Adjusted
BCAs and the long-term local and foreign currency deposit ratings
of International Bank of Azerbaijan (IBA), Kapital Bank OJSC, OJSC
XALQ BANK (XALQ), and Joint Stock Commercial Bank Respublika (Bank
Respublika). The outlooks on the long-term local and foreign
currency deposit ratings of IBA were changed to stable from
positive. The outlooks on the long-term local and foreign currency
deposit ratings of Kapital Bank OJSC, XALQ and Bank Respublika were
changed to negative from stable and positive, respectively.

Concurrently, Moody's affirmed the four banks' long-term local and
foreign currency Counterparty Risk Ratings (CRRs) and their
long-term Counterparty Risk Assessments (CR Assessments). The
banks' short-term local and foreign currency deposit ratings and
short-term local and foreign currency CRRs of Not Prime and
short-term CR Assessments of Not Prime(cr) were also affirmed.

RATINGS RATIONALE

The rating actions reflect the deteriorating operating environment
from the coronavirus (COVID-19) outbreak in Azerbaijan, the recent
oil price drop, and the associated downside risks to Azeri banks'
standalone credit profiles. Moody's expects that the spread of the
coronavirus and unprecedented stringent measures taken by the
government of Azerbaijan (Ba2 stable) to stem the spread of
coronavirus will be disruptive to economic activity. These shocks
will be compounded by the oil price collapse, given the importance
of this industry to the country's economy.

Moody's believes that the coronavirus-related restrictions will
likely hit small and medium-sized enterprises (SMEs), as well as
individuals employed in the most affected sectors, in particular,
non-food retail, catering, transportation, tourism and other
services. The BCAs of Azeri banks are particularly exposed to:

  - Worsening asset quality: despite the announced support measures
for economy and SMEs in particular, the rating agency expects a
material increase in problem loans and the cost of risk as
companies and individuals struggle to deal with their sudden change
in economic circumstances;

  - Deteriorating capitalization: the drop in oil prices has
increased the risk of a local currency depreciation which would
inflate the risk-weighted assets (RWAs) of the banks with higher
share of asset dollarization and hence cause a decline in
capitalization.

The negative outlooks assigned to the aforementioned ratings of
Azeri banks (except IBA) reflect the resulting pressure on these
banks' intrinsic financial strength (or BCAs).

  -- IBA

The change of outlook on the bank's local and foreign currency
long-term bank deposit ratings to stable from positive reflects the
relative resilience of IBA's creditworthiness to the aforementioned
external shocks.

The affirmation of the bank's BCA and Adjusted BCA at b3 as well as
local and foreign currency long-term bank deposit ratings at B1
reflects the balanced risk profile of the bank. On the one hand,
IBA is exposed to credit risks stemming from an expected
deterioration of its borrowers' creditworthiness amid a weaker
economic environment and the coronavirus outbreak, as well as
market risks related to its short foreign-currency position at
AZN1.4 billion as of 1 March 2020. On the other hand, the share of
the loan portfolio is relatively limited at about 23% of total
assets as of end-2019, while the largest loans are provided to
state-related companies which may count on state support in case of
need.

Moody's estimates IBA's capital adequacy in terms of tangible
common equity (TCE) to RWA at 33.1% as of end-2019 and considers
its capital cushion along with pre-provision revenue strong enough
to absorb both higher provisioning charges on the loan portfolio as
well as negative revaluation of its short foreign-currency position
in stressed scenario.

  -- Kapital Bank OJSC

In Moody's view high reliance on unsecured consumer lending (73% of
gross loans at mid-2019) exposes the bank to an asset quality
deterioration if economic conditions continue to worsen owing to
either the coronavirus outbreak or a prolonged period of low oil
prices. This is reflected by the change of outlook on the bank's
local and foreign currency long-term bank deposit ratings to
negative from stable.

The elevated credit risks are partially mitigated by (1) the bank's
focus on its existing deposit clientele, including payroll
customers, budget recipients and pensioners with relatively
predictable and stable cash flows; (2) the modest share of net
loans at 36% of total assets at end-2019; and (3) its limited share
of foreign-currency lending (12% of total).

The affirmation of the bank's BCA at b1 also reflects the good
loss-absorption capacity of the bank against the expected pressure
from the worsening environment. The bank posted strong net income
of AZN134.7 million in 2019, which translates into a 3.3% return on
total assets, as well as a high Tier 1 ratio at 14.9% as of 1 March
2020 under local GAAP.

  -- OJSC XALQ BANK

The affirmation of XALQ's B2 deposit ratings and the change of the
ratings outlook to negative from stable reflects, on the one hand,
the high vulnerability of the bank's asset quality metrics to the
potential weakening of the creditworthiness of its borrowers
negatively affected by the coronavirus outbreak and low oil prices,
and on the other hand, the bank's currently solid pre-provision
revenue generation and sound capital adequacy, which are expected
to dampen somewhat the negative effect.

A high 76% of XALQ's loan book was foreign currency-denominated
loans as of 1 February 2020, the highest proportion amongst Moody's
rated banks in Azerbaijan, and the rating agency estimates that
only approximately a half of borrowers have sufficient foreign
currency revenues to match they foreign currency loan repayments,
which makes both XALQ and its borrowers highly vulnerable to the
risks of a devaluation of the Azeri manat in case of a prolonged
period of low oil prices. XALQ has limited exposure to SMEs,
consumer loans and industries most vulnerable to the consequences
of coronavirus outbreak, but approximately 10% of the bank's loans
are issued to trading companies and hotels (including hotel
construction projects). Moody's expects the bank's profitability to
be negatively affected by higher credit losses and net interest
margin contraction. However, the bank' capitalization is solid: its
statutory Tier 1 ratio reported as of February 1, 2019 was 20.4%,
well above the regulatory minimum requirements.

  -- Bank Respublika

The change of outlook on the bank's local and foreign currency
long-term bank deposit ratings to negative from positive reflects
the higher vulnerability of the bank's risk profile to external
shocks largely owing to elevated exposure to borrowers likely to be
more affected, in particular SMEs (55% of gross loans at mid-2019)
and individuals (24%).

The affirmation of the bank's BCA and Adjusted BCA at b3 is driven
by the relatively good loss absorption capacity, strong
underwriting standards, a modest loan book (34% of total assets as
of end-2019) as well as limited foreign-currency lending (16% of
gross loans at end-2019). In 2019, Bank Respublika posted robust
pre-tax net profit of AZN20.4 million and reported a Tier 1 ratio
at 10.3% as of 1 March 2020 under local GAAP.

GOVERNMENT SUPPORT ASSUMPTIONS UNCHANGED FOR ALL AFFECTED BANKS

Moody's considers the probability of government support for IBA's
and Kapital Bank's deposits to remain high, while that for XALQ's
deposits to be moderate. This reflects the first two banks'
respective sizes and systemic importance and results in two and one
notches of uplift, respectively, for these banks' deposit ratings
from their respective BCAs.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The banks have been
one of the sectors affected by the shock given an expected
deterioration in asset quality, profitability and capital
adequacy.

Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety. The action reflects the impact on Azeri banks of the
breadth and severity of the shock, and the deterioration in credit
quality it has triggered.

Moody's does not apply any corporate behavior adjustment to Azeri
banks as a part of the rating action, and does not have any
specific concerns about their corporate governance, which is
nevertheless a key credit consideration, as for most banks.

PRINCIPAL METHODOLOGY

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



===============
B U L G A R I A
===============

VIVACOM: S&P Downgrades ICR to 'B+', On CreditWatch Negative
------------------------------------------------------------
S&P Global Ratings lowered its long-term issue credit rating on
Bulgarian telecom operator Vivacom to 'B+' from 'BB-'. The rating
remains on CreditWatch negative, where it placed it on Nov. 19,
2019.

Shorter debt maturity at the parent level are constraining the
group credit profile (GCP) and the rating.   The downgrade reflects
that the planned maturity extension of the debt at the holding
company is taking longer than we previously anticipated. S&P
understands that the parent company is working on a maturity
extension until the transaction with United Group closes. As a
consequence, it now sees the group's liquidity as weak, which
constrains the GCP at 'b-'. The GCP factors in the shorter debt
maturity at the parent level and a track record of late refinancing
and debt maturity extensions at the parent level, but also higher
level of debt than at the operating subsidiary.

S&P continues to see Vivacom as an insulated entity of the group,
allowing for a two-notch difference between the 'B+' issuer credit
rating and the 'b-' GCP.

The ratings are still on CreditWatch negative following the
announcement of the acquisition.   S&P said, "We placed the rating
on Vivacom on CreditWatch negative when United Group (B/Stable/--)
announced its intention to acquire the company. The transaction has
not closed yet and regulatory approval by the EU is still pending.
We are therefore leaving the ratings on CreditWatch with negative
implications until the transaction closes (expected during the
second quarter of 2020). We expect Vivacom's credit quality will
weaken after the transaction is complete because it will be owned
by a lower-rated company with higher leverage." Finally, the
negative CreditWatch also factors in potential additional delays in
extending the debt maturity at the holding company, independently
from the transaction with United Group.

S&P said, "We continue to assess Vivacom's stand-alone credit
profile as 'bb', reflecting our view that its business position and
cash flow generation remain unchanged.  We anticipate growing
mobile average revenue per user on higher voice and data
consumption, continued uptake in fixed broadband and pay-TV
subscribers, as well as cost efficiency and contained capital
expenditures will continue to support sound cash flow conversion of
about 25% of reported EBITDA (including lease expenses), and
adequate liquidity at the operating subsidiary level. We expect it
will translate into free operating cash flow to debt of 10%-15% and
S&P Global Ratings-adjusted debt to EBITDA heading toward 2.0x.

"We plan to resolve the CreditWatch after the transaction closes,
which is expected in second-quarter 2020. We expect to lower the
rating on Vivacom to that on United Group at closing. This will
depend on the final capital structure at both United Group and
Vivacom, our assessment of Vivacom's strategic importance to United
Group, and the new owner's financial policy. We could also lower
the rating if the debt maturity at Vivacom's parent company, Viva
Telecom (Luxembourg) S.A., is not extended on time, independently
from the transaction with United Group."




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

CITY OF ZAGREB: S&P Alters Outlook to Negative & Affirms 'BB' ICR
-----------------------------------------------------------------
On March 27, 2020, S&P Global Ratings revised its outlook to
negative from stable and affirmed its 'BB' long-term issuer credit
rating on the Croatian city of Zagreb.

Outlook

The negative outlook reflects S&P's view that there is an increased
likelihood that Zagreb's budgetary performance might worsen
considerably due to the combined effects from the COVID-19 outbreak
and earthquakes on March 22.

Downside scenario

S&P said, "We could downgrade Zagreb if the city's financial
profile worsened over the next 12 months, with operating
performance declining beyond our base-case scenario, due to lower
tax revenues and higher spending on repair and public transport
stemming from prolonged recession and effects from the earthquake.
Increasing carried-forward deficits in national accounting terms
could also increase Zagreb's already high debt burden and pressure
the city's cash levels, resulting in accumulation of payables."

Upside scenario

S&P would revise the outlook to stable if over the next 12 months
if Zagreb weathered upcoming budgetary challenges without further
reducing already-low liquidity reserves.

Rationale

S&P said, "The rating reflects our expectation that the recession
following the COVID-19 outbreak will lead to a one-off hit to
Zagreb's budgetary performance, and the city will continue to post
sound operating surpluses thereafter. We expect that the operating
surpluses, together with capital grants, should permit Zagreb to
increase its capital expenditure program also to repair damage
following two major earthquakes on March 22. We believe the city
will increase its borrowings to pay off parts of the accumulated
accrued deficit from 2017-2019, but keep overall debt well below
90% of operating revenues." The rating also reflects Zagreb's very
weak liquidity position, the volatile policy environment, and the
unpredictable institutional framework that is subject to relatively
frequent changes.

The institutional framework and financial management limit the
city's creditworthiness

In S&P's view, Zagreb's creditworthiness remains constrained by the
institutional setup under which Croatian municipalities operate.
With the COVID-19 pandemic, the central government announced tax
holidays of up to three months for some groups of taxpayers. The
cost of these measures to Croatian municipalities, including
Zagreb, is unclear, although the central government announced
interest-free liquidity support up to the amount of the deferred
taxes. The framework changes frequently, and the distribution of
resources is unbalanced and not sufficiently aligned to tasks
delegated to municipalities. This is highlighted by Zagreb's
increased accrued deficit, which reflects the funds the city
expects to receive from the central government in compensation for
delegated tasks. In addition, multiple changes to the tax system
make financial planning difficult.

The unpredictability of the central government's actions constrains
policy effectiveness at the city level, limiting Zagreb's ability
to effectively plan. The three major expenditure items for the city
are education, health care, and maintenance of public space. S&P
views Zagreb's unreliable long-term planning and weak liquidity
policies as key management weaknesses. In addition, the use of
unconventional debt instruments such as factoring deals, and the
sometimes-difficult relationship between the government and city
assembly, further limits our management assessment. S&P assesses
Zagreb's oversight and control over municipal companies as weak.
Although the board of municipal company, Zagrebacki Holding d.o.o.,
maintains very close ties with the city's management, clear
decision-making procedures appear to be lacking.

Zagreb contributes about one-third of total Croatian GDP, and
unemployment has been steadily decreasing and well below the
national level of 6.5% in 2020, although levels might rise
following a recession in 2020. GDP per capita is comparable with
that of similarly rated international peers, while about 70% higher
than the national average. S&P said, "We forecast national and
local GDP per capita will increase similarly, with a contraction in
2020 due to restricted tourism and quarantine measures. We expect
an economic rebound in 2021. The pull Zagreb exerts on the country
has resulted in a growing population, in contrast to the national
trend." This supports the city's economic and tax base to some
degree.

COVID-19 will markedly hinder budgetary results in 2020

S&P said, "We expect that the announced tax holidays will lead to a
significantly weaker budgetary performance in 2020, with the
operating surplus dropping to 8.8% from 10.6% over the previous two
years. Supported by underlying economic growth, this ratio should
get back to 11%-12% thereafter, enabling Zagreb to deliver on its
ambitious capital expenditure program. However, we do not believe
that the city will fully execute all capital expenditure budgeted,
because in February 2020, the city parliament failed to approve the
general urban plan containing the medium-term investments."

Zagreb's budgetary flexibility is limited because most revenue
items depend on central government's decisions, and expenditure
such as salaries tends to be rigid. The city cannot change its main
revenue source, personal income taxes, except for the surtax
charged. Expenditure flexibility is constrained also by large
inflexible subsidies granted to the municipal holding company, and
the now stand-alone Zagrebacki Elektricni Tramvaj (ZET), which both
support the city in the supply of essential public services. Asset
sales have proven difficult in past years and add no flexibility
elements. S&P assumes that the outsourced entities will
debt-finance revenue shortfalls due to fee freezes and fewer ticket
sales following quarantine measures.

S&P said, "We assume Zagreb will accumulate debt in addition to
financing needs over the coming years to help pay off the deficit
of the past two years. We therefore forecast rising net new
borrowing, both at the city level and at Zagrebacki Holding. In our
base-case scenario, we assume that the city's tax-supported debt,
which includes debt of other municipal companies and Zagrebacki
Holding, will increase to 79% of consolidated operating revenue in
2022 from 70% in 2017. In our view, this is high relative to that
of peers in the region, but mitigated by Zagreb's relatively high
operating margins. Direct debt is about half the tax-supported
debt, reflecting the large outsourcing of debt.

"In our view, the city's contingent liabilities are sizable. They
consist of Zagrebacki Holding's and ZET's payables, and the long-
and short-term debt of related entities not already included in
debt. In addition, high exposure to litigation, at 1.1 billion
Croatian kunas (HRK), forms part of this assessment, although the
city is unlikely to be liable for the full amount. Litigation
includes disputes with the Croatian Ministry of Finance.

Zagreb's liquidity situation remains a key credit weakness. S&P
said, "Available liquidity is still limited, with Zagreb's cash
holdings at year-end 2019 at HRK21 million, which we expect to
remain broadly constant, covering only 25% of the next 12 month's
debt service. Also, we view access to external liquidity as
limited, because Croatia's domestic banking sector is relatively
weak, as reflected in our assessment of the banking sector."

The data and ratios above result in part from S&P Global Ratings'
own calculations, drawing on national as well as international
sources, reflecting S&P Global Ratings' independent view on the
timeliness, coverage, accuracy, credibility, and usability of
available information. The main sources are the financial
statements and budgets, as provided by the issuer. bc--Base case
reflects S&P Global Ratings' expectations of the most likely
scenario.

S&P Global Ratings bases its ratings on non-U.S. local and regional
governments (LRGs) on the six main rating factors in this table.
S&P said, "In the "Methodology For Rating Local And Regional
Governments Outside Of The U.S.," published on July 15, 2019, we
explain the steps we follow to derive the global scale foreign
currency rating on each LRG. The institutional framework is
assessed on a six-point scale: 1 is the strongest and 6 the weakest
score. Our assessments of economy, financial management, budgetary
performance, liquidity, and debt burden are on a five-point scale,
with 1 being the strongest score and 5 the weakest."

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

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

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

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


  Ratings List

  Ratings Affirmed; Outlook Action  
                                 To           From
  Zagreb (City of)

  Issuer Credit Rating     BB/Negative/--   BB/Stable/--




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

AMER SPORTS: Moody's Cuts CFR to B3, Outlook Negative
-----------------------------------------------------
Moody's Investors Service downgraded to B3 from B1 the corporate
family rating of Finland-based sporting goods company Amer Sports
Holding 1 Oy. Concurrently, Moody's has downgraded to B3-PD from
B1-PD the company's probability of default rating, and to B3 from
B1 the ratings on the EUR1,700 million term loan B and the EUR315
million revolving credit facility, both borrowed by Amer Sports'
subsidiary Amer Sports Holding Oy. The outlook has been changed to
negative from stable for both entities.

"The downgrade to B3 reflects the severe and protracted adverse
impact that the coronavirus outbreak will have on Amer Sports'
sales and earnings in 2020, resulting in a sharp spike in its
already elevated leverage," says Igor Kartavov, a Moody's lead
analyst for Amer Sports. "Weakening cash flow generation creates
imminent risks for the company's liquidity, including a likely
breach of its maintenance covenant and a possible cash shortfall in
the second and third quarters of 2020," adds Mr. Kartavov.

RATINGS RATIONALE

The downgrade of Amer Sports' ratings reflects the detrimental
impact that the worldwide spread of the coronavirus outbreak,
particularly across Europe and North America, is having and will
continue to have on the company's business in 2020. Amer Sports'
products are highly discretionary for consumers, and demand for
them is linked to a variety of travelling and sports activities,
which are currently restricted in many of the company's key markets
due to the social distancing measures imposed by governments in
response to the coronavirus. Moreover, over 80% of the company's
products are distributed via offline channels, including sporting
goods chains, specialty retailers, fitness clubs and own branded
stores, most of which have been temporarily shut down.

The impact of the growing spread of coronavirus on Amer Sports'
financial and operating results is currently difficult to estimate
because of the significant pace of negative developments, which
creates uncertainty regarding the duration and severity of
containment measures adopted by various countries.

Moody's base case incorporates the assumption that the company's
revenue in 2020 will decline by over 20% year-on-year. Although the
company is implementing a comprehensive set of measures to reduce
operating costs in response to the deteriorated operating
environment, it will be challenging for the company to fully offset
the sharp decline in revenue in 2020. As a result, Moody's expects
that Amer Sports' leverage, measured by Moody's-adjusted gross debt
to EBITDA ratio, will exceed 10x in 2020, up from an already high
level of 7.9x estimated by the rating agency for 2019. This
increase in leverage mainly results from an abrupt drop in EBITDA,
which Moody's estimates at around 40% year-on-year, assuming a
gradual recovery in sales and earnings in the second half of the
year, which normally accounts for 60% of Amer Sports' annual
revenue and 80% of its EBITDA.

Amer Sports' B3 CFR factors in (1) the company's aggressive capital
structure and very high leverage of 7.9x in 2019, expected to peak
at double-digit values in 2020; (2) uncertainty related to the pace
of recovery in the company's performance after the coronavirus
outbreak is tamed, because of the highly discretionary nature of
its products; (3) weak liquidity, exacerbated by significant
seasonality of earnings and net working capital, and a likely
covenant breach in 2020; and (4) significant capital spending and
marketing expenses required to implement expansion in China, which
put pressure on margins and free cash flow.

The company's rating continues to incorporate (1) its leading
market positions supported by a large and diversified portfolio of
globally recognised brands, and its large scale; (2) its broad
diversification across sports segments and geographies; (3)
favorable long-term demand dynamics in the outdoor and sports
market, with additional growth potential from expansion into the
direct-to-consumer channel of the Chinese outdoor apparel market;
and (4) strategic guidance and potential financial support from
ANTA Sports.

LIQUIDITY

The deterioration in earnings in 2020 creates imminent risks for
the company's liquidity. As of December 31, 2019, Amer Sports had
EUR306 million of cash and EUR119 million available under the RCF.
However, the company has to repay around EUR167 million of legacy
bank loans in the first half of 2020. In addition, part of the
consolidated cash is held at the level of operating subsidiaries
based in emerging markets, and may not be immediately available for
general corporate purposes. The company's business is highly
seasonal, with negative EBITDA and operating cash flow typically
generated in the second quarter of the year. Moody's expects that
the large negative cash flow in the second quarter of 2020,
exacerbated by implications of the coronavirus outbreak, will
require Amer Sports to fully draw down its RCF and will
significantly erode its cash cushion. Moody's also notes the high
uncertainty related to the company's net working capital evolution,
particularly with respect to accumulation of unsold inventories and
accounts receivable from distributors. Amer Sports faces
significant net working capital seasonality, with large outflows in
the third quarter of the year, which will put further stress on its
liquidity.

The company's RCF contains a maintenance covenant of senior secured
net leverage not exceeding 8.0x, tested when the facility is over
40% utilised. Moody's expects that Amer Sports' leverage will
exceed this threshold as of 30 June or 30 September 2020. While the
covenant breach can be remedied via a waiver or an equity cure, the
company has not made any such arrangements so far.

Amer Sports is owned by a consortium led by Chinese sportswear
company ANTA Sports Products Limited (ANTA Sports). Given the size
and strategic importance of this investment for ANTA Sports, as
well as its strong financial position, Moody's considers it likely
that the shareholders may provide financial support to Amer Sports
in case of extraordinary liquidity pressure. Moody's understands
that Amer Sports has already reached an agreement not to make a
EUR11.5 million dividend payment in March 2020 to service the
interest on a loan raised outside of the restricted group. However,
any further support from the shareholders remains uncertain at this
stage.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS

The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The consumer
durables sector is one of the sectors most significantly affected
by the shock given its sensitivity to consumer demand and
sentiment. More specifically, the weaknesses in Amer Sports' credit
profile, including its exposure to highly discretionary spending,
have left it vulnerable to shifts in market sentiment in these
unprecedented operating conditions and the company remains
vulnerable to the outbreak continuing to spread. Moody's regards
the coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.
The rating action reflects the impact on Amer Sports of the breadth
and severity of the shock, and the broad deterioration in credit
quality it has triggered.

The rating action also incorporates material governance
considerations. Following its acquisition by a consortium of
investors led by ANTA Sports in 2019, Amer Sports delisted from the
Helsinki Stock Exchange and its transparency and public disclosure
are now inferior to those of a listed company. However, Amer Sports
is a sizeable and strategic investment for ANTA Sports. ANTA Sports
has a strong credit profile and has the capacity to provide support
to Amer Sports, in Moody's view.

STRUCTURAL CONSIDERATIONS

The B3 ratings assigned to the EUR1,700 million senior secured term
loan B due 2026 and the EUR315 million senior secured RCF due 2025
are in line with the CFR, reflecting the fact that these two
instruments rank pari passu and represent substantially all of the
company's financial debt. The term loan and the RCF are secured by
pledges over Amer Sports' major brands as well as shares, bank
accounts and intragroup receivables and are guaranteed by the
group's operating subsidiaries representing at least 80% of the
consolidated EBITDA.

The B3-PD PDR assigned to Amer Sports reflects Moody's assumption
of a 50% family recovery rate, given the limited set of maintenance
financial covenants comprising only a springing covenant on the
RCF, tested when its utilization is above 40%.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook reflects Moody's view that the decline in
revenue may be more severe than the rating agency currently
expects, because of the unpredictable nature of the current
operating environment. The negative outlook also reflects Moody's
view that it will be challenging for the company to achieve the
planned cost reduction to the full extent and in a timely way, and
that it may face a significant net working capital absorption,
which will exert additional pressure on its already strained
liquidity. The negative outlook also captures the uncertainty
related to the recovery in Amer Sports' performance beyond 2020,
including its ability to reduce leverage from a very high level
expected in 2020.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

An upgrade of Amer Sports' ratings is currently unlikely, given the
negative outlook, the challenging operating environment and the
uncertainty related to consequences of the company's likely
covenant breach. Positive pressure on the company's ratings might
build up over time if it (1) improves liquidity and maintains at
least moderate headroom against the covenant threshold; (2)
demonstrates a consistent revenue and EBITDA recovery path; (3)
reduces its leverage, measured by Moody's-adjusted gross debt to
EBITDA ratio, towards 6.5x on a sustainable basis; and (4) returns
to positive free cash flow generation.

The ratings could be downgraded further if the company's credit
metrics deteriorate beyond Moody's current expectations or remain
at very high levels beyond 2020, due to more protracted
implications of the coronavirus outbreak or the company's failure
to adjust its cost base in response to an abrupt revenue drop.
Quantitatively, this would translate into Amer Sports' leverage
remaining above 8.0x in 2021. The ratings would come under
immediate negative pressure if the company's liquidity further
deteriorates, such as if the likelihood of cash shortfall increases
or if the covenant breach occurs and is not remedied.

LIST OF AFFECTED RATINGS

Issuer: Amer Sports Holding 1 Oy

Downgrades:

Probability of Default Rating, Downgraded to B3-PD from B1-PD

Corporate Family Rating, Downgraded to B3 from B1

Outlook Action:

Outlook, Changed to Negative from Stable

Issuer: Amer Sports Holding Oy

Downgrade:

Backed Senior Secured Bank Credit Facility, Downgraded to B3 from
B1

Outlook Action:

Outlook, Changed to Negative from Stable

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Domiciled in Helsinki, Finland, Amer Sports is a global sporting
goods company, with sales in 34 countries across EMEA, the Americas
and APAC. Focused on outdoor sports, its product offering includes
apparel, footwear, winter sports equipment, fitness equipment and
other sports accessories. Amer Sports owns a portfolio of globally
recognised brands such as Salomon, Arc'teryx, Peak Performance,
Atomic, Suunto, Wilson and Precor, encompassing a broad range of
sports, including alpine skiing, hiking, running, diving, tennis,
golf and American football. In 2019, Amer Sports generated a
revenue of EUR2.9 billion (2018: EUR2.7 billion) and EBITDA of
EUR286 million (2018: EUR301 million).



=============
G E R M A N Y
=============

[*] GERMANY: Amends Insolvency Laws Amid Coronavirus Pandemic
-------------------------------------------------------------
Karsten Emmermann, Esq., Torsten Schwarze, Esq., and Christian
Zschocke, Esq., of Morgan Lewis, in an article for JDSupra,
reported that in order to avoid a large number of corporate
insolvencies, the German Parliament adopted a law on March 25 to
mitigate the consequences of the coronavirus (COVID-19) pandemic in
civil, insolvency, and criminal procedural laws.  The law will be
effective retroactive to March 1, 2020.

The core point of the new law passed by the Germany Parliament is a
temporary suspension of the obligation to file for insolvency and
payment prohibitions for managers of insolvent companies from March
1, 2020 (the Effective Date) until September 30, 2020 (the
Suspension Period).  The Federal Ministry of Justice will have the
option to extend the Suspension Period until March 31, 2021, by way
of ordinance.

Suspension of Obligation to File for Insolvency
Generally, not only creditors of insolvent or over-indebted
companies may apply for insolvency, but there is a statutory
obligation pursuant to Section 15a of the Insolvency Act
(Insolvenzordnung) on managers of a respective company to file for
insolvency no later than three weeks after the date of the
occurrence of the inability to pay (Zahlungsunfähigkeit) or the
over-indebtedness (Überschuldung).  In case of a violation of this
obligation, the manager is subject to liability under criminal and
civil law.

This obligation is now generally suspended under the new law,
unless (1) the insolvency is not a consequence of the COVID-19
pandemic or (2) there is no prospect of eliminating the insolvency.
If a company was not insolvent on December 31, 2019, the new law
provides for a statutory assumption that a later insolvency is due
to the COVID-19 pandemic and there are prospects of eliminating the
inability to pay.  The burden to prove otherwise lies with the
insolvency administrator.

Besides the suspension of the obligation to file for insolvency,
the new law provides that applications for the commencement of
insolvency proceedings by creditors of the company which are filed
between March 1 and June 30, 2020, will be only granted if the
insolvency or over-indebtedness already occurred before  March 1,
2020.  This rule only applies to creditor applications which have
not been decided on the date of the announcement of the new law.

Payment Prohibitions for Managers of Insolvent Companies
Another major amendment concerns payments made by managers of
insolvent companies.  Under normal circumstances such payments are
prohibited and the manager of the insolvent company is liable for
such payment.  Further, such payments are voidable by the
insolvency administrator.  Under the new law, such payments that
are made in the ordinary course of business during the Suspension
Period are allowed.  The purpose of this regulation is to enable
the insolvent company to maintain or resume business operations or
to implement a restructuring concept.  Such payments are also
exempted from challenge by the insolvency administrator, unless the
contract partner was aware that the reorganization and financing
efforts of the company were not sufficient to eliminate insolvency
(which, however, has to be evidenced by the insolvency
administrator).

Loans, including secured loans, granted during the Suspension
Period are not considered as an illegal delay of insolvency.  In
order to incentivize the granting of financing to such companies,
the new law provides that until September 30, 2023, repayments of
loans that have been granted during the Suspension Period,
including shareholder loans, shall not be considered a fraud of
creditors and are therefore insolvency proof.

Further, agreements made before September 30, 2020, between an
insolvent company and its contractual partners to shorten payment
terms or grant payment relief; agreements on different forms of
performance or on collateral; and agreements granting security or
satisfaction to which the creditor was not legally entitled at such
time are insolvency proof, i.e., not subject to later challenge by
the insolvency administrator unless the creditor has positive
knowledge that the reorganization and financing efforts of the
company were not sufficient to eliminate insolvency.

The new law to mitigate the consequences of the COVID-19 pandemic
in civil, insolvency, and criminal procedural law constitutes a
quick and suitable action of the German legislator to avoid mass
insolvencies that may occur as a result of the pandemic and provide
companies time to adjust to the new situation or to implement
necessary restructuring measures.  The provisions of the new law
are intended to be broad enough to provide managers with sufficient
protection against personal liability.

Nevertheless, the new law does not entirely suspend manager
obligations under insolvency, civil, and criminal law.  As the new
law applies only on a temporary basis, managers will have to
carefully evaluate the economic situation of their company when
making business decisions or entering into contractual
relationships during the Suspension Period.




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

ALPHA BANK: S&P Alters Outlook to Stable & Affirms 'B' ICR
----------------------------------------------------------
S&P Global Ratings said it revised its outlook on Alpha Bank,
Eurobank Ergasias SA, National Bank of Greece, and Piraeus Bank to
stable from positive. At the same time, S&P Global Ratings affirmed
its 'B' long and short-term issuer credit ratings and 'B'
resolution counterparty ratings on Alpha Bank, Eurobank Ergasias
SA, and National Bank of Greece. S&P also affirmed its 'B-/B' long-
and short-term issuer credit ratings and 'B-' resolution
counterparty rating on Piraeus Bank.

S&P said, "We subsequently withdrew our ratings on Eurobank
Ergasias SA owing to hive-down of its business and operations to
newly created Eurobank SA. Simultaneously, we assigned our 'B'
long- and short-term issuer counterparty ratings and 'B' long and
short term resolution counterparty rating to Eurobank SA. The
outlook is stable."

The COVID-19 outbreak has heightened the risk of a significant
delay in Greek banks' projects to clean up their asset quality and
enhance their earnings. This is due, among other factors, to our
anticipation of a visible impact on the ongoing recovery in
property markets, and the private sector's creditworthiness.

The pace of the recovery of residential and commercial real estate
prices are significant credit drivers for four Greek banks, which
are cleaning up about EUR68 billion of nonperforming exposures
(NPEs) as of Dec. 31, 2019. S&P believes that the pandemic and
associated measures will hinder the property market improvement and
the recovery prospects for small and midsize enterprises and
mortgage loans backed by property, hampering the chances of
recovery of bad loans in these segments.

S&P said, "We anticipate a temporary demand fall for Greek bad
debt, as the recession in Europe could test not only the appetite
of potential buyers for distressed portfolios, but also banks' own
collection ability as well as that of domestic and foreign
distressed debt purchasers operating in Greece. We also believe
that, in this environment, the recent implementation of Hercules,
the Greek government's asset protection scheme, is also unlikely to
speed up the expected pace of problematic asset disposal.

"While it is difficult to assess the outbreak's impact on the pace
of the NPE sales and securitizations that were come to the market
in 2020, we believe now the prospects for a successful and faster
clean-up in the year are much less than what we expected.

As with the rest of the world, the extent of the COVID-19 outbreak
remains uncertain in Greece. The Bank of Greece revised its real
GDP growth expectations to 0% for 2020 from 2.4% previously. In
S&P's view, the crisis should take its toll mostly in the tourism
sector, one of the backbones of the Greek economy. Tourism is a
labor-intensive sector, so there could be a big hit to employment
levels in countries such as Spain and Greece, which are still
posting high structural unemployment. In the eurozone, Greece,
Cyprus, and Portugal would face considerable challenges from a
sudden stop in tourist flows. While these economies are generally
more diversified than other tourist destinations, the very
significant pre-existing external financing needs would amplify the
effect of a tourist shock. In Greece, tourism receipts made up
about 23.5% of current account receipts in 2018. Tourism, commerce,
and services--highly correlated with the former--together accounted
for about 20% of gross loans of Greek banks on Dec. 31, 2019. S&P
said, "We believe that business volumes are likely to contract in
other segments of the economy as well, because the prolonged
lockdown in the country and in the rest of Europe will hinge on
consumption and investment. While we expect a recovery in the
second part of the year, we believe that constrained new lending
and weak capital markets will weigh on already-weak revenue,
including fees and commission income. We also expect a reversal in
the positive trend on new NPE formation." However, the Single
Supervisory Mechanism's decision to give banks more flexibility for
NPE classification should lead to less stress on reported asset
quality metrics. Similarly, the European Central Bank (ECB)
announced several extraordinary measures to provide temporary
capital and operational relief to European banks, as well as
liquidity support in case of need, which to an extent alleviates
risks to the overall financial risk profiles of Greek banks.

Moreover, the ECB launched a EUR750 billion emergency bond purchase
program on March 18, 2020 in response to high market volatility and
stem economic fallout from the Covid-19 pandemic. Of note, the
scheme includes purchases of Greek government debt--estimated at
about EUR12 billion, compared with EUR50 billion held by Greek
banks--which has so far been ineligible for the ECB's government
bond purchases. Greek financial institutions retain access to the
ECB's long-term refinancing lines, while those Greek small and
midsize enterprises most exposed to COVID-19, particularly in
tourism, have access to dedicated targeted longer-term refinancing
operations (TLTRO) III lines on highly accommodative terms. This
should shield the Greek economy from intense external liquidity
pressures.

Simultaneously, the Greek government (specifically, the Ministry of
Finance) announced measures to alleviate the economic impact of the
pandemic. These include, among others:

-- A four-month deferrals of tax and social-contribution payments
for affected businesses (either shut down outright or severely
affected);

-- Rent relief for corporations should their business is
mandatorily suspended: these will be liable to pay 60% of the
agreed rent for their business premises for the months March and
April;

-- A EUR1 billion scheme, under which the state effectively lends
funds directly to companies (bypassing the banking system) to be
repaid at preferential terms;

-- Suspension of the repayment of loan installments owed to banks
until at least Sept. 30, 2020, for affected enterprises. Entities
will pay contractual interest; and

-- The fast-track clearance of state arrears to the private
sector. For example, The Tax Administration, effective immediately,
will proceed with the refund of debts due to the taxpayers up to
EUR30,000.

S&P believes these measures could benefit some corporations
affected from the outbreak and prevent a more significant asset
quality deterioration. The latter is also due to ECB's decision to
exercise flexibility on NPEs and the addendum regarding the
classification of obligors as unlikely to pay, when institutions
call on the COVID-19-related public guarantees.

The ratings withdrawal on Eurobank Ergasias SA follows the bank's
split into two new entities, namely Eurobank S.A., the new
operating entity; and Eurobank Holding & Services S.A., a
non-operating holding company. Following the transaction Eurobank
Ergasisas ceased to exist and all its activities, assets, and
liabilities were transferred to Eurobank S.A., which is now fully
owned by Eurobank Holding & Services (not rated). Our ratings on
the new entity reflect the same rating factors for Eurobank
Ergasias.

Outlook

The stable outlook for the four banks balances, at the current
rating level, the risks over the next 12 months from the COVID-19
outbreak on the ongoing asset quality cleaning up of Greek banks
with the ECB's and Greek government's extraordinary measures. S&P
anticipates that, in this environment, Greek banks should preserve
their financial risk and business risk profiles, specifically,
their deposits base and balanced funding position. Still, S&P
expects a visible slowdown in the sale and securitization of Greek
banks' NPEs during 2020.

Downside scenario

S&P could take a negative rating action if macroeconomic conditions
in Greece substantially worsen, leading to resumed stress on asset
quality, with NPEs rising to levels similar to those in the past
downturn, or if their funding profiles unexpectedly weaken.

Upside scenario

Although unlikely in 2020, S&P could consider a positive rating
action should banks meaningfully progress in cleaning up NPEs,
contrary to our expectations. This could happen if the economic
recovery is higher and faster than anticipated. Therefore, we'll
closely monitor how banks deliver on their de-risking process and
bring their asset quality more in line with those of higher-rated
peers.

Ratings List

  Alpha Bank A.E.
  Ratings Affirmed; Outlook Action  
                                   To            From
  Alpha Bank A.E.
   Issuer Credit Rating        B/Stable/B     B/Positive/B

  Ratings Affirmed  

  Alpha Bank A.E.
   Resolution Counterparty Rating     B/--/B
   Senior Subordinated                CCC+
   Subordinated                       CCC

  Alpha Credit Group PLC
   Senior Subordinated                CCC+

  Alpha Group Jersey Ltd.
   Preference Stock                   D

  Eurobank Ergasias S.A
  Ratings Affirmed; Outlook Action  
                                  To           From
  Eurobank Ergasias S.A
   Issuer Credit Rating        B/Stable/B   B/Positive/B
   
  New Rating  

  Eurobank S.A
   Resolution Counterparty Rating     B/--/B
   Issuer Credit Rating               B/Stable/B

  Ratings Affirmed  
   
  Eurobank Ergasias S.A
   Resolution Counterparty Rating     B/--/B

  National Bank of Greece S.A.

  Ratings Affirmed; Outlook Action  
                                  To          From
  National Bank of Greece S.A.
   Issuer Credit Rating      B/Stable/B    B/Positive/B

  Ratings Affirmed  
   National Bank of Greece S.A.

   Resolution Counterparty Rating       B/--/B
   Subordinated                         CCC

  Piraeus Bank S.A.
  Ratings Affirmed; Outlook Action  
                               To              From
  Piraeus Bank S.A.
   Issuer Credit Rating   B-/Stable/B    B-/Positive/B

  Ratings Affirmed  

  Piraeus Bank S.A.
   Resolution Counterparty Rating   B-/--/B
   Subordinated                       CCC






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

KINLAY GROUP: Covid-19 Pandemic Effects Prompt Liquidation
----------------------------------------------------------
Adam Daly at The Journal.ie reports that The Kinlay Group, which
operates USIT Ireland and The English Studio, has gone into
liquidation due to "the tsunami of effects related to the Covid-19
pandemic".

According to The Journal.ie, the company's board said after
exploring all other possible alternatives, it has had "no option"
but to apply to the court to have a provisional liquidator
appointed to their businesses.   

USIT said its management will support customers to "assess their
options" but that the outcome for people who have recently booked
with the agency is still "uncertain", The Journal.ie relates.

The Kinlay Group, the English Studio, which employs 31 people, had
reached a position where it was no longer possible to trade as a
result of the Covid-19 impacts, leaving the company with "no
option" but to apply to the court for the appointment of the
liquidators, The Journal.ie discloses.

USIT, which specializes in student travel, volunteer and work
abroad programs employs 76 people in Dublin, Cork, Galway, and
Limerick.


MAN GLG VI: S&P Assigns BB- (sf) Rating on Class E Notes
--------------------------------------------------------
S&P Global Ratings assigned its credit ratings to MAN GLG Euro CLO
VI DAC's class A, B-1, B-2, C, D, E, and F notes. The issuer has
also issued unrated subordinated class S-1 and S-2 notes.

MAN GLG EURO CLO VI is a European cash flow CLO securitization of a
revolving pool, comprising euro-denominated senior secured loans
and bonds issued mainly by speculative-grade borrowers. GLG
Partners LP manages the transaction.

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

The portfolio's two-year reinvestment period is shorter than the
typical European CLO, and the portfolio's maximum average maturity
date is six and a half years. The senior and subordinated manager
fees are 20 and 30 basis points, respectively, of the collateral
balance, compared with the typical 15 and 35 basis points S&P
observes generally.

The recharacterization of trading gains as interest proceeds is
subject to the following conditions:

-- The aggregate collateral balance remains above 100.25% of the
reinvestment target par balance, which is a higher threshold than
we have observed in recent European CLOs and provides greater
protection to the rated noteholders;
-- The class F par value ratio is no less than the effective date
class F par value ratio;

-- The class A notes have not been downgraded; and

-- The aggregate amount of trading gains classified as interest
proceeds does not exceed 1% of the target par balance.

The unrated class S-1 notes include a redemption feature where an
amount equal to 50% of remaining interest proceeds that would have
otherwise been distributed to the class S-2 noteholders are used to
redeem the class S-1 notes on a pro rata basis. These payments are
made junior in the waterfall following the cure of the class F par
coverage test (in accordance with the note payment sequence
starting from the class A noteholders) and the reinvestment
overcollateralization test. As the interest payable on the class
S-1 notes is senior to the reinvestment overcollateralization test,
S&P has taken this into account in our cash flow analysis.

In addition, S&P notes that the definition of reinvestment target
par balance, which typically refers to the initial target par
amount after accounting for any additional issuance and reduction
from principal payments made on the notes, excludes any reduction
of the class S-1 notes due to such redemption. The transaction
documentation requires the collateral manager to meet certain par
maintenance conditions during the reinvestment period unless the
collateral balance is greater than or equal to the reinvestment
target par balance after reinvestment. The exclusion of the class
S-1 notes therefore limits the erosion of the collateral balance
through trading following the paydown of the class S-1 notes.

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

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

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

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

-- The transaction's legal structure, which S&P considers
bankruptcy remote.

-- The transaction's counterparty risks, which S&P considers in
line with its counterparty rating framework

  Portfolio Benchmarks
                                                      Current
  S&P weighted-average rating factor                 2,741.48
  Default rate dispersion                              468.16
  Weighted-average life (years)                          5.43
  Obligor diversity measure                            109.96
  Industry diversity measure                            20.03
  Regional diversity measure                             1.18

  Transaction Key Metrics
                                                      Current
  Total par amount (mil. EUR)                             350
  Defaulted assets (mil. EUR)                               0
  Number of performing obligors                           129
  Portfolio weighted-average rating
   derived from our CDO evaluator                         'B'
  'CCC' category rated assets (%)                           0
  Covenanted 'AAA' weighted-average recovery (%)        36.84
  Covenanted weighted-average spread (%)                 3.75
  Covenanted weighted-average coupon (%)                  4.00

S&P said, "Our ratings reflect our assessment of the 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 EUR350 million par amount,
the covenanted weighted-average spread of 3.75%, the covenanted
weighted-average coupon of 4.00%, and the covenanted
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. Our cash flow
analysis also considers scenarios where the underlying pool
comprises 100% of floating-rate assets (i.e., the fixed-rate bucket
is 0%) and where the fixed-rate bucket is fully utilized (in this
case 10%).

"We consider that the transaction's documented counterparty
replacement and remedy mechanisms will adequately mitigate its
exposure to counterparty risk under our current counterparty
criteria.

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

"We consider that the transaction's legal structure is bankruptcy
remote, in line with our legal criteria.

"Our credit and cash flow analysis indicates that the available
credit enhancement for the class B-1 to E notes could withstand
stresses commensurate with higher ratings 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 ratings on the notes.

"In our view the portfolio is granular in nature, and
well-diversified across obligors, industries, and asset
characteristics when compared to other CLO transactions we have
rated recently. As such, we have not applied any additional
scenario and sensitivity analysis when assigning ratings on any
classes of notes in this transaction.

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe that our ratings are
commensurate with the available credit enhancement for the class A,
B-1, B-2, C, D, E, and F notes."

  Ratings List

  Class   Rating   Amount     Credit          Interest rate*  
                  (mil. EUR)  enhancement (%)
  A       AAA (sf)  217.000   38.00       Three/six-month EURIBOR
                                             plus 0.90%
  B-1     AA (sf)   33.235    27.00       Three/six-month EURIBOR
                                             plus 1.80%
  B-2     AA (sf)   5.265     27.00          2.05%
  C       A (sf)    20.125    21.25       Three/six-month EURIBOR  

                                             plus   2.40%
  D       BBB (sf)  23.625    14.50       Three/six-month EURIBOR
                                             plus 3.65%
  E       BB- (sf)  17.710    9.44        Three/six-month EURIBOR
                                             plus 5.39%
  F       B- (sf)   8.540     7.00        Three/six-month EURIBOR
                                             plus 8.63%
  S-1     NR        9.320     4.34        Three/six-month EURIBOR
                                             plus 8.50%
  S-2     NR        17.960    N/A         N/A

  *The payment frequency switches to semiannual and the index
switches to six-month EURIBOR when a frequency switch event occurs.

  EURIBOR--Euro Interbank Offered Rate.
  NR--Not rated.
  N/A--Not applicable.




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

ESSELUNGA SPA: S&P Downgrades ICR to BB+ on Increased Debt Burden
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Esselunga SpA to 'BB+' from 'BBB-'. S&P also assigned a '3'
recovery rating to its senior unsecured debt, indicating its
expectation of meaningful (50%-70%; rounded estimate: 65%) recovery
to creditors in the event of a default.

Due to the recently announced transaction, Esselunga's credit
metrics will weaken materially from 2019 levels.

S&P said, "Once the squeeze-out of the minority shareholders has
been finalized and the subsequent merger of Esselunga with its
holdings completed, we expect Esselunga's adjusted debt to increase
to EUR2.5 billion at end-2020, from about EUR950 million that we
forecast at end-2019. The end-2020 figure includes EUR435 million
of preferred shares for La Villata's minority shareholders, which
we see as debt. This, together with the company's top-line growth,
which we see at about 2%-3% per year, will result in FFO to debt
slightly above 20% for 2020, increasing to about 25% the year
after. Moreover, the company's moderate cash flow after capex and
dividends, which we see at about EUR150 million-EUR200 million for
2020 and 2021, somewhat limits the speed of deleveraging.
Therefore, we assess Esselunga's balance sheet to be weaker than
before, resulting in a one-notch downgrade to 'BB+' from 'BBB-'."

Esselunga's majority shareholders succeeded in squeezing out the
30% of minority shareholders with a transaction that will add more
than EUR1.7 billion of debt to the company's accounts.

This amount includes EUR435 million of preferred shares at La
Villata that we treat as debt. The 30% minority stake has been
evaluated at EUR1.8 billion. Of this EUR1.8 billion, S&P takes the
view that only the EUR100 million of cash directly provided by the
majority shareholders can be excluded from our adjusted debt. The
30% of the acquisition price will be met with a mix of:

-- EUR100 million cash from the majority shareholders; and

-- EUR435 million from the sale of 32.5% of La Villata to a
financial investor in the form of preferred shares.

S&P said, "While Esselunga will continue to consolidate La Villata,
as it owns the remaining 67.5%, in our view the preferred shares
are akin to debt financing for this transaction, and we include
this amount in our adjusted debt. The preferred notes have a
payment-in-kind securities/cash coupon option at Esselunga's
discretion. Moreover, after a lock-up of five years, Esselunga
could call the preferred notes back, which we assume will be
replaced with some form of debt financing or repaid in cash by
Esselunga, thereby weakening the credit metrics. We understand that
the company does not foresee a put option for the financial
investors." Esselunga will contribute to the remaining 70%, which,
through additional debt, includes:

-- A EUR762 million senior unsecured term loan maturing in 2027,
which entails financial covenants; and

-- A EUR550 million bridge facility issued at Esselunga's holding,
which management intends to repay in cash as soon as the merger
with Esselunga and its holdings occurs (expected to be by year-end
2020).
As part of the reorganization of the group structure, Esselunga
will repay EUR300 million of debt sitting at Supermarkets Italiani,
its holding company. This is leverage-neutral with respect to our
adjusted credit calculation and metrics, as S&P was including the
parent's debt in Esselunga's adjusted leverage.

S&P said, "We expect Esselunga, as a food retailer, to maintain
profit margins slightly above 8% and steady revenue growth of about
2%-3% per year in 2020 and 2021, notwithstanding the tough
environment.

"We also anticipate that the company will benefit from the COVID-19
pandemic, which is increasing home consumption of food. Esselunga
has a presence in the wealthiest region of Italy, with sales per
square meter more than double that of the second-largest Italian
grocery retailer. Combined with its wide product range, including a
superior level of customer experience, we expect this to sustain
Esselunga's top-line growth and profit margins. For 2020 and 2021,
we see sales growing by about 2%, and expect the EBITDA margin to
remain slightly above 8%, in line with the preliminary 2019
results, but lower than the 9.5% recorded in 2018."

The slight erosion of EBITDA is mainly linked to Esselunga's
aggressive price positioning, as it is able to offer the lowest
shelf price in its trading areas. It is also the result of some
expected dilution from increasing e-commerce activity and higher
staff costs.

S&P said, "We believe the COVID-19 outbreak in Italy will entail
some execution risks in terms of logistics, monitoring clients'
traffic, and health risks for Esselunga's workers. However, the
pandemic could increase Esselunga's sales in the short term,
because of the prolonged Italian lockdown. We believe that demand
for Esselunga's food range will remain high, even after the initial
stockpiling phase, given that it offers ready–to-eat and
ready-prepared foods, and restaurant closures will force people to
cook and eat at home more often.

"The stable outlook reflects our view that Esselunga will be able
to maintain its established market position in its core food retail
business, gradually increasing its gross revenues by around 2%-3%
on the back of steady new store openings, as well as new product
launches and price supremacy. Although we expect some margin
dilution related to the increased share of e-commerce, some tougher
market conditions, and potentially less efficiency resulting from
the COVID-19 pandemic, we expect the adjusted EBITDA margin to
remain resilient at about 8.0%.

"Moreover, we expect the company's FFO to debt to remain above 20%
and cash distribution to shareholders to be limited to the
dividends paid to the minorities of La Villata, so that
discretionary cash flow (DCF; free operating cash flow minus
shareholders' distributions) remains at about around EUR150
million-EUR200 million per year in 2020 and 2021.

"We would downgrade Esselunga if its FFO to debt were to decline
below 20% on the back of potentially higher capex or increased
distributions to shareholders, or if the harsher market conditions
stemming from the COVID-19 pandemic were to result in a margin and
sales drop due to operational difficulties or logistical
bottlenecks. Additionally, a material decrease of the company's
DCF, which we forecast at around EUR150 million-EUR200 million per
year, could weigh on the rating.

"Moreover, we would consider any additional shareholder
interference in Esselunga's financial policies and use of cash,
while not in our base case, a deficiency in governance, and would
reflect this in our rating on the company.

"Finally, if the company's sales were to drop materially due to our
current recession scenario for Italy, mainly triggered by the
unprecedented COVID-19 outbreak, we would consider lowering the
rating. However, this is not part of our base case today, as the
food sector is considered essential.

"Due to the high level of adjusted debt and the prospect of
continued dividends for the minority shareholders of La Villata, we
consider an upgrade unlikely over the next two years. Esselunga
continues to invest in its physical stores and omni-channel
strategies, which will likely curtail any significant improvement
in the company's credit metrics in the short term beyond the level
we expect.

"However, we could think of raising the rating on Esselunga if its
FFO to debt were to be above 30% on a sustained basis, thanks to
improved cash flow after capex and dividends. An upgrade would also
hinge on a positive track record of Esselunga's management adhering
to a conservative financial policy, with no private ownership
interferences."





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

LSF9 BALTA: S&P Downgrades ICR to 'B-', Outlook Negative
--------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on LSF9 Balta
Issuer S.A. to 'B-', highlighting the uncertainty around cash flow
generation in 2020 and increasing risks to the refinancing plan.

S&P said, "We expect Balta will face a sharp decline in its volumes
sold in 2020 in the context of the global recession following the
COVID-19 outbreak.  We think Balta will face a sharp decline in
demand in all its divisions: rugs, commercial, residential, and
non-woven. This is because we think retailers will face
difficulties and sharp reduction in traffic due to the quarantines
and confinements affecting many European countries and the U.S.
Furthermore, commercial offices and individuals could postpone
non-essential expenses, such as refurbishing offices and homes, in
the context of recession, possibly coupled with lower disposable
income for corporates and individuals."

S&P said, "We acknowledge a high degree of uncertainty about the
rate of spread and peak of the coronavirus outbreak. Some
government authorities estimate the pandemic will peak between June
and August, and we are using this assumption in assessing the
economic and credit implications. We believe measures to contain
COVID-19 have pushed the global economy into recession and could
cause a surge of defaults among nonfinancial corporate borrowers.
As the situation evolves, we will update our assumptions and
estimates accordingly.

"We think this will lead to a reducing EBITDA base in 2020, despite
lower raw material prices and the NEXT program.

"We forecast a sales volume decline of about 20%-30% in all
divisions in 2020, especially in the first half of the year. This
sharp decline will lead to a diminished EBITDA base, despite the
implementation of the NEXT program, which includes previously
planned price increases and efforts to shift to a more favorable
product mix. The sharp decline in oil prices will also lead to
lower raw material prices for Balta--polypropylene and polyamide
prices are linked to oil--but we understand this might only benefit
Balta's cost base in the second half of 2020 because the group
locks in contracts in January for the following six months. We
think the EBITDA base could reduce by 20%-30% on aggregate in
2020.

"Balta faces increasing uncertainty regarding cash flow generation,
especially working capital, at the same time as its RCF matures in
September 2021, leading to potential pressures on liquidity.   In
the context of the unexpected reducing demand, we think Balta's
inventory could build up and receivables could increase if clients
require longer payment delays. This could increase Balta's cash
needs in the short term. The group drew on its two RCF lines in
March 2020 to build up cash balances. Considering the upcoming
maturity of the EUR61 million RCF in September 2021, we think the
group's liquidity could deteriorate in the coming 12 months if the
group is unable to extend its RCF line or refinance it.

"Balta's U.S. dollar-denominated RCF and euro-denominated notes all
mature in 2022.   The current situation in the financial markets
shows the group may be unable to refinance before mid-2021, which
would put pressure on its capital structure. Considering Balta's
entire capital structure matures within the next two years, as well
as tightening access to financial markets, we think the group will
likely have to wait until at least the first quarter (Q1) of 2021
to address its maturities. This would put the group under
significant liquidity stress if it were to face significant
maturities in the following 12 months.

"The negative outlook reflects our view that Balta may face
increased credit pressure in 2020 due to reducing volumes sold,
decreasing EBITDA base, and potentially increasing cash needs
linked to working capital, in the context of the global recession
and given the relative discretionary nature of its product
offering. Considering the 2021 maturity of the group's
euro-denominated RCF and the 2022 maturity of the rest of the
capital structure, we think the group may struggle to refinance its
capital structure in advance, which could lead to pressure on our
rating.

"We could lower our ratings if we thought the group could not
adequately cover its liquidity needs for the next 12 months. This
could be the case if the EBITDA base continued to decline after
2020 while the group faced increasing cash needs. In addition, if
the group were unable to refinance its capital structure by 2021
and therefore cover significant maturities in the following year,
we would lower our ratings.

"We could revise our outlook to stable if the group managed to
refinance its EUR61 million RCF due September 2021 and its EUR235
million notes and $18 million RCF due in 2022. We think Balta would
be better positioned to carry out the refinancing if its S&P Global
Ratings-adjusted debt to EBITDA returned close to 5x, which could
lead us to revise our outlook. This would also alleviate pressures
on liquidity."




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

FUGRO N.V.: S&P Discontinues Prelim 'B' LT Issuer Credit Rating
---------------------------------------------------------------
S&P Global Ratings discontinued its preliminary 'B' long-term
issuer credit rating on geo-data specialist Fugro N.V. The outlook
was stable at the time of the discontinuance. S&P also discontinued
its preliminary 'B' issue ratings on Fugro's EUR500 million senior
secured notes.


SPECIALTY CHEMICALS: S&P Alters Outlook to Stable, Affirms B+ ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on Specialty Chemicals
International B.V. (SCI) to stable from positive and affirming our
'B+' issuer credit rating. S&P's 'BB-' rating and '2' recovery
rating on the term loan B issued in March are unchanged.

As the coronavirus pandemic spreads throughout the world, demand
for SCI's end markets will decrease.   S&P said, "The positive
outlook we had on SCI reflected our expectation of improving credit
metrics on the back of at least sustained earnings in 2020. This
now appears unlikely given the negative impact of the coronavirus
outbreak on GDP and market demand, which is why we revised the
outlook to stable. Europe and the U.S. are increasing restrictions
on person-to-person contact, which presages a demand collapse that
will lower economic activity sharply in the second quarter before a
recovery begins later in the year. S&P Global Ratings now forecasts
a global recession in 2020, with global GDP rising just 1.0%-1.5%
and the risks remaining firmly on the downside. More specifically,
in the eurozone and the U.S., where SCI generates about 85% of
total EBITDA, we now expect the economies to contract 2% and
0%-0.5%, respectively, this year. Given its exposure to cyclical
end markets, especially construction (about 35% of group sales) and
transportation (18%), we expect lower market demand and a decline
in sales volume for SCI in 2020, followed by a moderate recovery in
2021."

S&P said, "We expect the oil price plunge to support SCI's margins,
but it will also lead to lower earnings.   S&P Global Ratings has
lowered its Brent Henry crude oil price assumptions to $30/bbl for
2020, reflecting a severe supply/demand imbalance in second-quarter
2020. We expect the rapid decline in oil prices will support SCI's
solid margins, as raw material prices are declining. In addition,
competitive dynamics have been improving from recent industry
consolidation and capacity rationalization, which will likely
continue in 2020. However, much lower raw material prices will also
lead to a decline in pricing and correspondingly lower sales and
EBITDA.

"We expect leverage to weaken but remain commensurate with the
current rating, with free operating cash flow (FOCF) remaining
solid.   We now expect adjusted FFO to debt to weaken to below 20%
in 2020 but remain comfortably within the 12%-20% range
commensurate with the 'B+' rating. Moreover, despite weakening
market demand and earnings, we expect SCI will be able to maintain
its solid FOCF generation, given its flexibility to postpone growth
capital expenditures under challenging market conditions and
ability to reduce working capital if sales decline."

SCI's recent refinancing has led to a slight reduction in gross
debt and lower interest costs.  The recent issuance of the EUR538
million-equivalent seven-year first-lien term loan B (TLB) has been
used to refinance its existing debt and pay a EUR125 million
dividend. A EUR10 million upsize compared to proposed TLB has been
used to repay bilateral loans. Following the transaction, SCI's
gross debt has decreased by about EUR30 million, and annual
interest costs will be about EUR15 million lower. This reflects a
reduction of the interest rate on the senior secured debt of about
350 basis points. In addition, SCI has put in place a EUR100
million 6.5-year RCF to replace the current EUR60 million super
senior revolving credit facility.

S&P said, ""The stable outlook reflects our expectation that
despite a decline in EBITDA in a recessionary environment, SCI will
continue to generate solid FOCF in the next 12 months, and adjusted
FFO to debt will remain comfortably within the 12%-20% range
commensurate with the current rating. We expect market demand and
credit metrics to recover moderately in 2021."

S&P could lower the rating if:

-- A decline of core end markets or a loss of key customers led to
performance weakening materially, resulting in adjusted FFO to debt
falling below 12%; or

-- In the event of a large debt-funded acquisition or further
significant dividend payment that signaled a change in financial
policy.

S&P could raise the rating if SCI demonstrated a track record of at
least maintaining its current adjusted EBITDA and profitability,
while generating positive FOCF of at least EUR50 million. This
could stem from supportive pricing dynamics in the industry and
sustained focus on cost control. An upgrade would be contingent on
FFO to debt remaining comfortably above 20% and a strong commitment
from both private-equity sponsors to keep adjusted leverage at this
level.




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

AERNNOVA AEROSPACE: S&P Assigns 'B+' ICR, Alters Outlook to Neg.
----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' long-term issuer credit rating
to Spain-based aero structure and engineering services provider
Aernnova Aerospace Corp. S.A. (Aernnova), and its 'B+' issue rating
and '3' recovery rating to the company's term loan B, and revised
its outlook to negative from stable.

S&P Global Ratings acknowledges a high degree of uncertainty about
the rate of spread and peak of the coronavirus outbreak. Some
government authorities estimate the pandemic will peak about
midyear, and S&P is using this assumption in assessing the economic
and credit implications. S&P believes the measures adopted to
contain COVID-19 have pushed the global economy into recession. As
the situation evolves, S&P will update its assumptions and
estimates accordingly.

The recent refinancing, coupled with the acquisition of U.K.-based
aerospace business Hamble, will slightly dilute Aernnova's margins
and raise its leverage.

However, Aernnova exhibits a good track record of integrating
mergers and acquisitions and has robust free operating cash flow
(FOCF) generation that supports its deleveraging prospects.
Aernnova initially used EUR390 million of the term loan B to repay
EUR280 million of existing term debt and planned to fund a one-off
EUR100 million dividend to its shareholders. However, in light of
the ongoing uncertainty caused by the spread of COVID-19,
Aernnova's management decided to not pay the EUR100 million
dividend to shareholders and instead retained the cash on its
balance sheet to bolster its liquidity.

S&P said, "We also understand that the company subsequently drew
the loan's EUR100 million delayed-draw portion and will also use
these funds to strengthen its liquidity position. Finally, Aernnova
drew EUR35 million from its revolving credit facility (RCF). We
therefore estimate that--including existing cash on balance
sheet--the company now has more than EUR280 million of liquidity
sources, putting it in a strong position to weather potential
near-term disruption caused by COVID-19."

As airlines delay taking delivery of new aircraft, Airbus could
potentially lower its production rates.

As Airbus is Aernnova's largest customer, any reduction in Airbus'
production rates would also affect Aernnova's production volumes,
revenues, and absolute EBITDA, which could put pressure on the
company's S&P Global Ratings-adjusted credit metrics. However, S&P
believes that Aernnova's management is well prepared to adapt the
business quickly and preserve margins.

However, as governments attempt to halt the spread of the COVID-19
pandemic, with most global and regional air travel shut down, we
note that the majority of airlines have grounded most or all of
their fleets. S&P siad, "We currently expect a likely fall of about
30% in airline flying hours in 2019. We expect many airlines to
push hard to delay taking delivery of new planes until at least the
end of the summer 2020. This, coupled with the potential for
COVID-19 to cause future temporary production facility shutdowns,
will likely affect delivery and therefore production rates at
Airbus and Boeing."

S&P said, "We therefore expect that Airbus will lower delivery and
production rates in 2020, which will have a knock-on effect further
down its supply chain. Indeed, Airbus recently announced to the
market that it is preparing for a period of lower production by
bolstering its liquidity position and suspending its dividends. We
note that Airbus recently closed its Toulouse and Hamburg
production sites to assess them for COVID-19 risk and Aernnova
followed suit, which is evidence of how closely correlated
Aernnova's production cycle is with Airbus'."

For now, Airbus plans to maintain production and support its supply
chain, meaning that Aernnova will also keep producing in line with
the rates that Airbus decides on, albeit potentially at a lower
rate.

S&P said, "If Airbus lowers production, we would expect Aernnova to
experience a drop in revenues, profitability, and cash flows,
thereby potentially weakening its credit metrics. However, we still
forecast that FOCF should remain strongly positive in 2020. We
continue to forecast that FFO cash interest will remain robust, at
more than 7x in 2020 and 2021. Robust, positive FOCF generation is
one of the supporting factors that underpins the 'B+' ratings.

"We include in Aernnova's adjusted debt for 2020 the EUR390 million
term loan in full (including the recent draw-down of the
delayed-draw portion), then add EUR11 million for operating-lease
obligations and about EUR35 million for factoring.

"We also include in adjusted debt the public institutions debt. Pro
forma the planned amortization schedule, we forecast that the
balance of this debt will have been about EUR115 million in fiscal
2019. Despite incorporating high cash balances in our assessment of
Aernnova's liquidity, we continue to apply a 100% cash haircut when
we calculate leverage and cash flow metrics, as we do for financial
sponsor-owned companies.

"We bear in mind that once COVID-19 uncertainty has abated,
Aernnova might follow a shareholder-friendly policy in terms of
dividends and dividend recapitalizations. However, management has a
clear commitment to keep leverage under 5x, has a large ownership
stake in the business, and the financial-sponsor owners take a
relatively conservative approach to leverage. Although we focus on
S&P Global Ratings-adjusted debt, we note that the current large
cash balances in excess of EUR280 million--to bolster liquidity for
COVID-19 uncertainty--lower the company's reported net leverage
considerably."

Aernnova's fair business risk profile reflects its niche market
leading positions and key relationships with civil aerospace
customers.

The competitive dynamics vary for commercial aerospace companies
depending on their position in the supply chain. Original equipment
manufacturers (OEMs), the companies that design, assemble, and
market complete aircraft, and tier 1 suppliers, those that produce
large assemblies or components, generally face a limited number of
competitors. For tier 2 and lower suppliers, which produce smaller
assemblies or basic parts or components, there are generally many
more competitors. S&P's assessment of Aernnova's fair business risk
profile reflects the company's position as a tier 1 and tier 2
supplier, high customer concentration, and average profitability.
The acquisition of the lower-margin Hamble will slightly dilute
group margins and increase overall customer concentration.

On one hand, Aernnova benefits from leading market positions across
some of its businesses, including composites and empennage, where
it has built a solid track record of designing and manufacturing
over a number of years.

The company's revenue comes mainly from sales to major aviation and
defense companies, including Airbus, Boeing, Embraer, and
Bombardier. Aernnova has a solid and deep backlog with over five
years' revenue coverage, including 87% of aero structure and
component revenues for 2020-2022 already secured. The company
remains the supplier for a typical program's life span, which is
often over 30 years. There are notable barriers to entry given the
expertise required for some of the more complex structures, and
limited scope for customers to switch providers once full
production is underway. Being present for several years on key
contracts and performing as expected with regard to product quality
and delivery deadlines has meant Aernnova stands in good stead to
benefit from further contract awards. The company also has a good
track record of integrating acquisitions.

On the other hand, Aernnova's position as a tier 1 and tier 2
supplier, with high concentration on a single OEM, constrains its
competitive position.

There is significant customer concentration with Airbus, with its
programs accounting for near to 50% of group 2018 revenues; in
particular, the A350 XWB program (32%). Furthermore, S&P believes
the Hamble acquisition will not materially change this high
customer concentration, but will increase concentration on
Aernnova's key customer Airbus, as Airbus is also a core customer
for Hamble. However, Aernnova has a strong presence on many civil
air platforms that are well positioned for good growth, including
the Airbus A350 XWB, A330 NEO, A320 NEO, and A220; the Embraer E1
and E2; and the Boeing 787.

S&P also sees some geographic concentration compared with the peer
group.

The majority of Aernnova's revenue comes from a few core markets:
Spain (46.1% of 2018 revenues), followed by the rest of the EU
(18.5%), the U.S. (10.6%), Brazil (10.5%), Canada (8.2%), and the
U.K. (Hamble).

Aernnova's adjusted margins have been steadily above 18% in recent
years, but will weaken slightly in future.

However, S&P estimates that the Hamble acquisition will slightly
dilute overall group margins from 2020 onward, to about 15%. S&P
considers the company's level of profitability as average for the
industry at 10%-18%.

A strong management team and commitment by the owners to maintain
adjusted leverage of less than 5x support the 'B+' ratings.

S&P said, "We assess Aernnova's management and governance as fair.
This reflects the company's clear strategic planning process and
management being well experienced and incentivized, with the
chairman and CEO, COO, CCO, and CFO benefiting from a combined 57
years of experience at Aernnova. The chairman and CEO and senior
management own a 24.2% stake in the company. Towerbrook is the
largest external shareholder, with an approximately 37.6% share in
the company, with Peninsula Capital and Torreal holding about 14.7%
and 10%, respectively. Towerbrook also holds a 13.6% stake in
Aernnova via ANV Co-invest, but this is a passive investment with
no board seat. Voting rights mirror economic interests. Although
Aernnova is majority owned by financial sponsors, there is clear
evidence of a commitment to keep leverage well below 5x.

"We still consider Aernnova to be relatively immune to potential
disruption from the U.K.'s departure from the EU and the U.S.-China
tariff war.

"We consider Aernnova to be relatively well insulated from the
well-documented geopolitical and major platform risks that some
rated peers are facing--specifically, the U.K.'s withdrawal from
the EU, the ongoing U.S.-China trade disputes, and the grounding of
the Boeing 737 MAX passenger plane. Although Aernnova will have
production facilities, suppliers, and customers in the U.K. and
Europe following the Hamble acquisition, we see the U.K.'s
departure from the EU as having a minimal effect on the business
versus some rated peers. Most of the company's business is local
and there is very little cross-border flow of goods or services.

"We apply a negative comparable ratings analysis of one notch to
arrive at the rating of 'B+'.

"This is because we believe the acquisition of Hamble, coupled with
the refinancing and shareholder return, will result in margins
softening to about 15% and a leverage spike of 4.7x in 2020. It
also reflects Aernnova's relative size and scale, and its high
customer concentration versus rated peers. Therefore, we see the
company's business risk profile post-acquisition at the low end of
the fair category.

"The negative outlook reflects the global suspension of
international and regional travel as governments try to contain the
spread of the coronavirus. We expect Aernnova's main customer
Airbus to lower delivery and production rates in 2020. We now see
some risk that Aernnova might not maintain credit metrics
commensurate with the rating, specifically adjusted EBITDA margins
of about 15%, adjusted debt to EBITDA below 5x, and funds from
operations (FFO) cash interest coverage of more than 3.0x over our
12-month rating horizon.

"We could lower the rating on Aernnova if the company's margins
were to deteriorate toward 10% or lower, debt to EBITDA were to
rise to more than 5.0x on a sustained basis, FOCF were to turn
negative, or the FFO-cash-interest-coverage ratio were to decrease
below 3.0x without the prospect of a swift improvement. We could
also lower the rating if the ratio of liquidity sources to uses
were to decrease to less than 1.2x.

"We consider a positive rating action unlikely at this stage, but
we could raise the rating if Aernnova were to increase margins back
to sustainably more than 18%, with continued positive FOCF, and
improve debt to EBITDA to sustainably below 4x, supported by
positive industry trends and a robust operating performance."




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

BRISTOL CARS: Goes Into Liquidation, Owes Millions of Pounds
------------------------------------------------------------
Enda Mullen at CoventryLive reports that Bristol Cars, an iconic
British company famed for its sought-after and individual high-end
cars, has gone into liquidation after 75 years.

The company reportedly owes millions of pounds to creditors,
CoventryLive relays, citing the Telegraph.

According to CoventryLive, documents on the Companies House website
show a petition to wind up Bristol Cars was brought about by HMRC
in December -- and by January the courts had ordered the company to
pay its creditors through the sale of assets.

The documents show Frost Group were appointed as liquidators in
February, CoventryLive notes.

Bristol Cars first went into administration in 2011 but was bought
out by the current director Kamal Siddiqi, CoventryLive recounts.

Bristol was famous for its exclusive, hand-built luxury cars and
was a perfect example of the gentlemanly way to market high-powered
wheels.


INTERNATIONAL CAR: S&P Lowers ICR to 'B-', Outlook Stable
---------------------------------------------------------
S&P Global Ratings lowered to 'B-' its long-term issuer credit
rating on International Car Wash Group Ltd. (ICWG). At the same
time, S&P lowered its rating on the senior secured first-lien debt
to 'B-', and its rating on the senior secured second lien debt to
'CCC'.

S&P said, "We expect ICWG will face a sharp decline in traffic in
2020 in the context of the COVID-19 outbreak and numerous site
closures.  We anticipate ICWG will face a significant decrease in
traffic in 2020 under quarantine and containment measures affecting
many European countries and the U.S. because of the pandemic.
Currently, the majority of sites in Continental Europe are closed
because of the local containment measures.

"We anticipate a reduced EBITDA base in 2020 and deterioration in
credit metrics, despite ICWG's flexible business model and measures
taken to reduce operating expenses.  We forecast a significant
decline in sales volumes and EBITDA generation in Europe and in the
U.S., especially in the first half of 2020. In our view, ICWG can
implement some measures to reduce its cost base and limit the
impact of lower volumes on its EBITDA generation. Cost-savings
initiatives include the reduction in labor cost, especially outside
of the U.S. where sites are managed by self-employed operators that
can quickly adjust workforce, and the negotiation of delays on rent
payments. We estimate the decline in EBITDA will result in an FFO
cash interest coverage ratio of about 1.6x-1.8x over the next 12
months.

"ICWG has flexibility to protect its cash flow generation and
sufficient liquidity to meet its financial commitments in the short
term.  We anticipate that ICWG can reduce its investment in growth
capital expenditures (capex) and in acquisition of new sites on
short notice, thereby protecting its liquidity. Consequently, we
estimate ICWG will be able to generate neutral or slightly positive
FOCF of about GBP5 million-GBP10 million in 2020. In our view, the
company has sufficient liquidity available, including about $45
million-$50 million of cash available as of December 2019, and $75
million of revolving credit facility (RCF) that is now drawn, to
meet its financial commitments for the short term.

"The stable outlook reflects our view that ICWG should remain
self-funding in 2020 thanks to its large cash balances, and ability
to generate neutral or slightly positive FOCF thanks to the
flexibility of its cost structure and its ability to reduce total
capex on short notice. In our base case for 2020 we project lower
revenues but adjusted EBITDA margin of about 33%-34%. We think ICWG
should be able to maintain an adjusted FFO cash interest coverage
ratio of about 1.5x-2.0x over the next 12 months.

"We could lower the rating if ICWG's liquidity position comes under
pressure due to ICWG generating large negative free cash flow in
2020. This could come for example, from prolonged closure of sites
in reaction to the covid-19 outbreak combined with inability to
efficiently reduce its labor costs or inability to delay capital
expenditures.

"We could raise our rating if we see a significant improvement in
EBITDA generation driven by the company's ability to restore its
growth momentum in Europe and to continue to grow profitably in the
U.S. Under such a scenario, we would expect to witness an
improvement in ICWG's FFO cash interest coverage sustainably above
2x combined with evidence of continued deleveraging from the high
levels of 2020."


K3 BUSINESS: Placed Into Administration by Parent Company
---------------------------------------------------------
Paul Kunert at The Register reports that AIM-listed software and
managed services outfit K3 is to put its loss-making Microsoft
Dynamics reseller division K3 Business Technologies Ltd. into the
hands of administrators amid commercial unpredictability caused by
COVID-19.

The news was delivered to investors on April 1, along with
confirmation that the mid-range ERP house had got a GBP6 million
loan from Barclays and two shareholders and a reiteration that it
was delaying publishing results for the year to Nov. 30, The
Register relates.

The cash funding is going to be used to "strengthen the group's
liquidity position during this period of unprecedented disruption
caused by the Coronavirus pandemic," The Register quotes K3 as
saying.

In addition to Barclays, Kestrel Partners LLP and non-exec director
and stock owner Johan Claesson also contributed to the funding, The
Register notes.  Barclays, The Register says, will extend its
existing loans facilities by GBP3 million to GBP13 million in total
and the two shareholders will provide an unsecured loan of GBP3
million.

K3, as cited by The Register, said the reseller wing, which sells
Microsoft ERP and CRM wares, turned over GBP21 million in its
fiscal 2019, accounts for which have been postponed as mentioned
above.  In that year it generated an operating loss of GBP3
million, The Register relays.

According to The Register, the parent firm added: "Given the
current uncertainties created by the coronavirus crisis, this UK
subsidiary is expected to generate further significant negative
EBITDA (earning before income tax, depreciation and amortization)
and cash outflows in the year to November 30".

This may not be the end for the reseller, with K3 saying it "will
seek interest in the sale of the business and/or its assets".


OAKLANDS CONSTRUCTION: Coronavirus Crisis Prompts Liquidation
-------------------------------------------------------------
Aaron Morby at Construction Enquirer reports that Leeds-based civil
engineering contractor Oaklands Construction has been placed into
liquidation after being hit by the collapse of Clugston and the
Coronavirus crisis.

The firm ran into financial problems when Clugston ceased trading
in the first week of December, owing Oaklands GBP700,000 for works
on Wakefield's Capa College and Asda Worksop, Construction Enquirer
recounts.  Oaklands was also hit for GBP45,000 with other clients
folding over the Christmas period, Construction Enquirer notes.

The firm along with other subcontractors tried to finish off the
Asda store and college project for administrators but ran into
problems around the legality of continuing the contracts,
Construction Enquirer discloses.  Both projects have now been
mothballed, Construction Enquirer states.

According to Construction Enquirer, Oaklands director Mark Lawson
said that many clients that owed Oaklands money, knowing its
predicament, issued significantly reduced, even negative payless
notices in the past weeks, against moneys applied for.

He said that others delayed payments, blaming closed accounts
departments, inability to sign-off payments through homeworking and
isolations caused by Corona, Construction Enquirer relates.

Oaklands turned over GBP9.5 million, employing around 50
operatives, and 20 staff at peak trading.


PRAESIDIAD GROUP: S&P Cuts ICR to 'CCC' on Thin Covenant Headroom
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Praesidiad Group to 'CCC' from 'CCC+'. S&P also lowered the issue
rating on the company's debt to 'CCC' from 'CCC+'.

S&P Global Ratings acknowledges a high degree of uncertainty about
the rate of spread and peak of the coronavirus outbreak. S&P said,
"Some government authorities estimate the pandemic will peak
between June and August, and we are using this assumption in
assessing the economic and credit implications. We believe measures
to contain COVID-19 have pushed the global economy into recession
and could cause a surge of defaults among nonfinancial corporate
borrowers. As the situation evolves, we will update our assumptions
and estimates accordingly."

Despite new management improving Praesidiad's performance in Q4
2019, the company was already exhibiting weaker-than-expected
financial performance before the COVID-19 pandemic increased
economic uncertainty in its core markets. The company's unaudited
reported revenue was EUR329 million in 2019. This was lower than
the budgeted figure of EUR435 million, and it represented a 15%
decline from EUR389 million for 2018. The reduction stemmed from
weaker trading conditions in its Guardiar and Hesco businesses.
Guardiar struggled due to project delays in the U.S., low volumes
in South Africa due to weak economic conditions, and overdue
payments from key customers, which delayed certain projects. The
Hesco business unit experienced decline in Defense Logistics Agency
(DLA) volumes. Praesidiad won a sole source contract extension with
the DLA that is due to cease in September 2020. The tender process
is ongoing.

Praesidiad's topline has also affected reported EBITDA, which was
EUR30.9 million as of Dec. 31, 2019. This was well behind the
budget of EUR54.1 million, and represented a drop from EUR38.2
million for the same period in the previous year. Praesidiad's S&P
Global Ratings-adjusted EBITDA--from which S&P excludes all
exceptional items--is very low at EUR11 million. This leads to very
high leverage and cash flow metrics. Debt to EBITDA peaked in 2018
and is currently above 20x, with negative funds from operations
(FFO) to debt.

The company is now facing a recessionary environment with less than
adequate liquidity and very thin covenant headroom, making a breach
likely.

Praesidiad has fully drawn its EUR80 million revolving credit
facility (RCF), thereby activating the springing leverage covenant,
set at 8.12x debt to pro forma adjusted EBITDA. S&P said, "We think
the company could take a number of actions, such as rationalization
of the manufacturing base, and we have taken these into
consideration in our covenant calculation for the next 18 months.
However, we think the cash cost of these actions will likely reduce
already tight liquidity. We therefore see an increased risk of a
covenant breach, which--as we understand from the debt
documentation--would constitute an event of default."

S&P said, "The CreditWatch negative placement reflects our view
that Praesidiad could breach its quarterly covenant in July 2020,
which we would consider an event of default absent an equity cure.
The CreditWatch placement also acknowledges the potential for
material declines in EBITDA due to reduced demand as a result of
the COVID-19 pandemic. It also reflects execution risk relating to
management's endeavors to turn the business around against the
backdrop of weakening business environment and significant economic
uncertainty caused by the spread of the COVID-19 pandemic.

"We could take the ratings on Praesidiad off CreditWatch if the
company's liquidity improves and underlying free cash flow
generation breaks even, improving its liquidity position and
increasing covenant headroom to a level where we no longer consider
a breach likely."


SCALLOWAY HOTEL: Enters Administration, Ceases Trading
------------------------------------------------------
Shetland News reports that Scalloway Hotel is to close with the
loss of 17 jobs as a downturn in the oil and gas sector and the
coronavirus crisis impacted its financial performance.

The company which operated the hotel has been placed into
administration, Shetland News relates.

All employees have been made redundant with immediate effect,
Shetland News notes.

The award-winning hotel -- run by Caroline and Peter McKenzie --
closed its doors earlier this month due to the coronavirus
pandemic, but it will now not re-open, Shetland News discloses.

The hotel was put up for sale last year but no buyer was found,
Shetland News recounts.

According to Shetland News, joint administrator Stuart Robb said:
"Despite having strong bookings in the tourist season, in recent
years the business had experienced a significant reduction in
turnover during winter periods, mainly due to the downturn in the
oil and gas sector and increasing overheads.  As a result, the
company experienced cashflow difficulties.

"Unfortunately, having assessed the company's trading and financial
performance -- and in light of the current Covid-19 pandemic -- it
is not possible to re-open the hotel and, as such, all 17 employees
have been made redundant with immediate effect."


TODS AEROSPACE: Enters Administration, 25 Jobs Affected
-------------------------------------------------------
Hannah Baker and Stephen D'Albiac at SomersetLive report that Tods
Aerospace has gone into administration with the loss of 25 jobs.

The company has appointed Andrew Sheridan and Geoff Rowley of
specialist business advisory firm FRP as joint administrators,
SomersetLive relates.

According to SomersetLive, the business, which supplies a number of
defense industry giants including Airbus and BAE Systems, is still
trading while the company is for sale, with the firm's remaining
111 employees being retained in the short term.

Tods called in administrators following a reduction in the number
of orders it has received and after suffering with cash flow
problems, SomersetLive discloses.




                           *********


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 * * *