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

                          E U R O P E

          Wednesday, April 22, 2020, Vol. 21, No. 81

                           Headlines



F I N L A N D

TEOLLISUUDEN VOIMA: S&P Downgrades ICR to 'BB', Outlook Negative


F R A N C E

FAURECIA SE: S&P Places 'BB+' Long-Term Rating on Watch Negative
ISABEL MARANT: S&P Assigns 'B-' Long-Term ICR, Outlook Negative
LOUVRE BIDCO: S&P Downgrades ICR to 'B+', Outlook Stable
PEUGEOT SA: Egan-Jones Lowers Senior Unsecured Ratings to BB+


G E R M A N Y

ATHENA BIDCO: S&P Assigns 'B' Long-Term ICR, Outlook Negative
CONTINENTAL AG: Egan-Jones Lowers Senior Unsecured Ratings to BB+
DIOK REAL ESTATE: S&P Withdraws Prelim 'B' Issuer Credit Rating


G R E E C E

NAVIOS MARITIME: S&P Alters Outlook to Negative & Affirms 'B' ICR


I R E L A N D

APTIV PLC: Egan-Jones Lowers Senior Unsecured Ratings to B-
CARLYLE EURO 2020-1: S&P Assigns B- (sf) Rating on Class E Notes
ST. PAUL'S CLO XII: S&P Assigns B- (sf) Rating on Class F Notes


I T A L Y

ATLANTIA SPA: Egan-Jones Lowers Senior Unsecured Ratings to B+
FIAT SPA: Egan-Jones Lowers Senior Unsecured Ratings to BB-


L U X E M B O U R G

INTELSAT SA: Moody's Cuts CFR to Ca, Alters Outlook to Negative
INTELSAT SA: S&P Cuts Rating to 'SD' on Missed Interest Payment


N E T H E R L A N D S

BME GROUP: Moody's Cuts CFR to B3, Outlook Stable


N O R W A Y

NAVICO GROUP: S&P Lowers ICR to 'CCC-' Amid COVID-19 Disruptions
PGS ASA: Moody's Cuts CFR to B3 & Reviews Ratings for Downgrade


R U S S I A

FG BCS: S&P Alters Outlook to Stable & Affirms 'B/B' ICR
UZBEKISTANI TASHKENT: S&P Suspends 'BB-' LT Issuer Credit Rating


S W E D E N

STENA AB: Moody's Cuts CFR to B2, Outlook Revised to Stable


U N I T E D   K I N G D O M

CATH KIDSTON: Closes 60 UK Stores, 900+ Jobs Affected
CNH INDUSTRIAL: Egan-Jones Withdraws BB- Senior Unsecured Ratings
FINASTRA LTD: S&P Downgrades ICR to 'CCC+', Outlook Negative
GKN HOLDINGS: Moody's Reviews Ba1 Sr. Notes Rating for Downgrade
LE PAIN QUOTIDIEN: UK Arm at Risk of Falling Into Administration

MATALAN: S&P Lowers ICR to 'CCC', Outlook Negative
RICHMOND UK: S&P Downgrades ICR to 'CCC+', Outlook Negative
SHANKLY HOTEL: Coronavirus Pandemic Prompts Administration
SIGNATURE AVIATION: S&P Alters Outlook to Neg. & Affirms 'BB' ICR
VIRGIN ATLANTIC: Told to Resubmit Coronavirus Bailout Proposal

[*] UK: Number of Companies Ceasing Trading Up in March 2020

                           - - - - -


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F I N L A N D
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TEOLLISUUDEN VOIMA: S&P Downgrades ICR to 'BB', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered the long-term issuer credit rating on
Teollisuuden Voima Oyj (TVO) to 'BB' from 'BB+' and affirmed its
'B' short-term rating.

The recently announced postponement of fuel-loading raises
questions about OL3's commercial start-up date.

On April 8, 2020, TVO announced the postponement of the expected
fuel loading in June 2020. The delay is mainly a consequence of the
pandemic's effects on service providers. In addition, there have
been significant delays in testing since Dec. 2019. S&P said, "TVO
expects the Areva Siemens consortium (ASC) will update the schedule
for OL3 when this is more visibility on the spread and effects of
COVID-19, but we see the risk the delay could be several months.
The project has already been delayed by 11 years. It is our
understanding that the additional four-month operational testing
period added in Dec. 2019 is already used up as a consequence of
weak project management from Areva, which underestimated how long
testing would take. That said, we understand that the delay does
not stem from any technical issues surrounding the nuclear plant
construction." Lock-down measures and travel bans to prevent the
spread of COVID-19 are affecting progress due to limitations on
part deliveries by sub suppliers. This is despite TVO and work
related to nuclear power plants being excluded from official
COVID-19 restrictions.

There are increasing uncertainties as the call-off date closes in.
The settlement agreement signed in 2018 includes a clause stating
that, if a provisional takeover is not achieved by June 30, 2021
(the call-off date), TVO has the right to terminate the OL3
contract. Regardless, a delay post the call-off date would increase
risk, since it would open the way for further contractual
discussions that could lead to a less favorable outcome for the
company. TVO will also not be automatically compensated beyond June
2021, but we believe the company is committed to the project. S&P
believes that TVO will be compensated for accrued capitalized
interest costs from Jan. 2020 until provisional take-over or June
2021 at the latest. S&P understands compensation could reach a
maximum of EUR400 million.

The delay increases costs for ASC and could lead to a potential
liquidity shortage.  S&P said, "We understand a top-up of the trust
mechanism is necessary for Areva to meet all its obligations and
costs until the end of the guarantee period because of delays. We
see an increased risk that Areva might not have timely financial
capacity until the end of the plant unit's guarantee period--two
years after provisional takeover. In our view, this could
potentially lead to a disagreement with involved parties and result
in new legal procedures, further delays, and ultimately that TVO
will not be fully compensated for the delay. Furthermore, we
believe Areva likely will be dependent on asset sales to honor such
obligations. The plant contract stipulates, however, that the
supplier consortium (ACS) companies have joint and several
liability for the contractual obligations."

The company's deleveraging plan is pushed forward and refinance
risk increases due to postponed fuel loading .  TVO's net debt
continues to increase, mainly as a result of capitalized interest.
This is because further start-up delays postpone debt repayments
and increase the need to finance and refinance loans. S&P said, "We
forecast that interest costs will increase and delay deleveraging
even further as market conditions for refinancing have changed
dramatically in recent weeks as a result of the pandemic. Current
electricity prices in Finland, (averaging EUR23 per megawatt [MW]
in 2020) are below the estimated production costs when OL3 is
operational, but at this stage we continue to believe that
shareholders are likely to remain supportive of the company as they
have a long-term view." Moreover, current prices are unusually low
compared with historical prices.

S&P said, "Following several delays, we are revising TVO's
management and governance score. It is our understanding that OL3's
commercial start-up will now be about 12 years behind the original
schedule. In our view, this mainly reflects poor project management
from the ASC, but also shows that TVO has not managed or been able
to meaningfully affect the process. We are therefore changing the
management and governance score to fair from satisfactory."

Environmental, social, and governance (ESG) factors relevant to the
rating action:

-- Health and safety.
-- Governance.

The negative outlook indicates that S&P could lower the 'BB'
long-term and 'B' short-term issuer credit ratings over the next
12-24 months.

This could happen if:

-- Further delays resulting in cost-overruns for TVO are not fully
compensated by ASC.

-- Any operational or regulatory issues arise.

-- There are continued or worsened effects from COVID-19
restrictions, implying risk of commercial start-up beyond the
call-off date of more than a few months.

-- Areva fails to replenish the trust mechanism as stipulated in
the settlement agreement.

-- Uncertainty surrounding the call-off clause is not clarified
with a reasonable margin before June 2021.

-- TVO's owners indicate a change in support, for example, if
shareholder loan facilities are not extended, or if the owners
start to question the ownership or Mankala model.

S&P could potentially downgrade TVO by more than one notch if more
than one of the above-stated factors are realized.

S&P could revise its outlook to stable if it sees a clear path of
improvement, including completion of fuel loading within the next
six months and that ASC has a clear financing plan to meet all its
obligations related to OL3.



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F R A N C E
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FAURECIA SE: S&P Places 'BB+' Long-Term Rating on Watch Negative
----------------------------------------------------------------
S&P Global Ratings put its ratings on the following issuers on
CreditWatch with negative implications:

-- Faurecia SE: S&P puts the 'BB+' long-term rating on CreditWatch
negative.

-- Gestamp Automocion: S&P puts the 'BB' long-term rating on
CreditWatch negative.

-- Garrett Motion Inc. S&P puts the 'BB-' long-term rating on
CreditWatch negative.

-- Novem Group GmbH. S&P puts the 'B+' long-term rating on
CreditWatch negative.

-- Bright Bidco B.V. S&P puts the 'CCC+' long-term rating on
CreditWatch negative.

Auto production shutdowns will be longer than initially planned.  
S&P said, "We anticipate production shutdowns will be longer than
auto producers initially planned in Europe and the U.S., owing to
weak evidence of progress against the pandemic in these two
regions. Adding to the uncertainty of when restrictive measures
will loosen and allow restarting operations at auto producers,
reinstatement of confinement measures cannot be ruled out as long
as a reliable vaccine is not available. We thus expect COVID-19 to
cause potential revaluation of 2020 results and leave auto
suppliers low visibility when it comes to managing and preparing
for restarting operations."

The focus is now on liquidity management.  Securing additional
liquidity sources--and for some companies seeking covenant
waivers--will dominate the second quarter. Progress on either front
might be faster or slower, depending on auto suppliers' operating
performance before the COVID-19 pandemic, the flexibility of their
cost structures, on the options available to access debt or equity
sources, on the soundness of their banking relationship, as well as
on the very different responses in Europe by national governments
in terms of short- and long-term stimulus instruments made
available to address the increasingly bleak economic scenario.

Faurecia SE

S&P believes that Faurecia's credit metrics will weaken materially
in 2020 after a weaker-than-expected 2019, when the company posted
adjusted free operating cash flow (FOCF) to debt at 10% versus our
15% threshold for the rating.

The unexpected developments linked to COVID-19 could interfere with
the turnaround of Clarion and offset the cost reduction measures it
implemented to secure a recovery of operating results in 2020. S&P
said, "We have no specific concerns on liquidity due to the
residual availability under the existing EUR1.2 billion revolving
credit facility (RCF), the proactive management initiatives to
secure new funding sources, and the potential support extended by
the French government in the form of guarantees on funding. This is
despite Faurecia's significant consumption in working capital we
assume will take place in first-half 2020. We expect Faurecia will
maintain comfortable headroom under its maintenance covenant (net
leverage ratio of 2.79x) throughout 2020."

CreditWatch

S&P said, "We intend to resolve the CreditWatch once we refine our
view on Faurecia's competitive position, which could support a
faster recovery than the market's once demand normalizes, given
that some of its key competitors could suffer more than Faurecia in
this crisis. At this stage we believe a downgrade would likely be
limited to one notch. An affirmation would hinge on our
expectations that Faurecia could deliver funds from operations
(FFO) to debt above 30% and FOCF to debt above 15% by 2021."

Gestamp Automocion

S&P said, "In early March 2020, we already incorporated a weakening
of Gestamp's performance owing to the COVID-19 virus and revised
our outlook to negative. However, recent developments have led to
industrywide automotive production shutdowns in the European and
U.S. markets, and suggest that the stress we previously assumed
could be even more severe.

"We believe the group has some flexibility to reduce its variable
costs, such as raw materials, and understand it has imposed
cost-cutting measures on some of its overhead costs. Although we
believe this will mitigate the impact of declining revenue, Gestamp
will likely take a significant hit on its earnings generation in
2020, against the S&P adjusted EBITDA margin at about 11% it posted
in 2019.

"We also think that Gestamp has the capacity to reduce its capital
expenditure following years of expansionary growth when Gestamp
spent more than EUR800 million per year, and will likely see some
reduction of working capital requirements in the early phase of the
shutdown in the second quarter. Still, we now expect a significant
cash burn in the second quarter. The magnitude of the earnings
decline and cash consumption will depend on the length of
production shutdowns, which also depend on when automotive demand
will stabilize.

"While Gestamp's headroom under its financial covenants at year-end
2019 was significant (about 30%), we see a risk of significant
tightening of covenants in first-half 2020. The group's financing
package includes a covenant stipulating a net leverage ratio of
lower than 3.5x."

CreditWatch

S&P intends to resolve the CreditWatch in the next 90 days once it
reassesses COVID-19's impact on Gestamp and the headroom under its
covenants.

Garrett Motion Inc.

Lingering questions around when auto production will resume in
Europe and the U.S. represent a major downside risk for Garett
Motion. The company just withdrew its full-year guidance for 2020
and will reassess the impact of COVID-19 in its first quarter
results scheduled in May 2020.

Liquidity is not an immediate concern, as Garett Motion fully drew
the remaining funds available under its RCF of approximately $470
million to increase its financial flexibility in the current
environment. With the additional funds, Garrett has supplemented
its cash position, which totaled approximately $250 million as of
March 31, 2020, including a draw down on the revolver of $66
million in the first quarter. As a result, total liquidity
available at the start of the second quarter is approximately $655
million.

The company has no significant debt maturities before September
2023. The headroom under its maintenance covenant will narrow to
below 15% in second-half 2020, however, coinciding with a step down
in the gross leverage covenant to 3.75x from 4.00x from September
2020. Garrett Motion's loan documentation includes two financial
maintenance covenants: A gross leverage ratio and an interest
coverage ratio. S&P understands the company intends to reduce gross
debt through early repayments. However, this measure might not be
enough to restore headroom to about 15% at all times.

CreditWatch

S&P intends to resolve the CreditWatch once it forms a view on the
effects of COVID-19 on Garrett Motion and on its progress in
obtaining covenant relief.

Novem Group GmbH

In response to the significant decline of automotive demand and
production shutdowns of its key customers, such as premium original
equipment manufacturers Daimler or BMW, Novem has drawn down its
EUR75 million RCF as one measure to preserve its liquidity. Novem
has no near-term maturities before its RCF comes due in 2024, which
should benefit its financial flexibility. The group's RCF is
subject to a springing covenant (net consolidated leverage of
4.25x) that the group would now need to comply with since its RCF
is fully drawn. Although headroom is ample for now, we believe that
Novem's sales, profitability and cash flow will face significant
pressure in light of production shutdowns, which could erode its
headroom under the covenant, depending on the duration and severity
of the weaker demand for its products.

S&P said, "Novem has shut plants and decreased production while
taking decisive measures to contain costs through part-time work
schemes and has used its flexibility for certain overhead costs by
reducing purchasing, but we still expect a severe impact for its
earnings and cash flow generation in 2020. We note positively the
group's relatively low leverage with an adjusted gross
deb-to-EBITDA ratio of about 2.4x in the fiscal year ended March
31, 2019, as well as solid profitability in 2019."

CreditWatch

S&P intends to resolve the CreditWatch once it forms a view on the
effect of COVID-19 on Novem and its covenant headroom.

Bright Bidco B.V. (Lumileds)

S&P assumes that the current restrictions from governments on
people movements in Southern Asia, Europe, and the U.S. will hit
demand for lighting manufacturer Lumileds' products, as well as
impairing its manufacturing operations.

With a highly leveraged capital structure including an S&P Global
Ratings-adjusted debt to EBITDA ratio of above 15x expected at the
end of 2019, and a thin liquidity cushion, the timing of
stabilization in demand will be key to avoiding a liquidity
shortfall. S&P said, "We understand that management is focusing on
cutting costs and is also evaluating options to get access to
additional sources of liquidity, such as sale-and-leaseback
transactions. Within the next 90 days, we will also evaluate the
appetite of Lumileds' shareholders to buy back its debt, given that
it is trading significantly below par. Such an action would likely
qualify as a default under our definitions."

CreditWatch

S&P intends to resolve the CreditWatch once it forms its view on
how effective the issuer will be in securing additional funding to
weather the current situation.

  Ratings List
                              To              From
  Faurecia SE           BB+/Watch Neg/--   BB+/Stable/--
  Gestamp Automocion    BB/Watch Neg/--    BB/Negative/--
  Garrett Motion Inc.   BB-/Watch Neg/--   BB-/Negative/--
  Novem Group GmbH      B+/ Watch Neg/--   B+/Stable/--
  Bright Bidco B.V.     CCC+/Watch Neg/--  CCC+/Negative/--

  NB: This list does not include all the ratings affected.



ISABEL MARANT: S&P Assigns 'B-' Long-Term ICR, Outlook Negative
---------------------------------------------------------------
S&P Global Ratings assigned its 'B-' long-term issuer credit rating
and senior secured debt rating to IM Growth SAS, the holding
company of Isabel Marant (IM), which is in line with the
preliminary rating.

S&P said, "We estimate that IM will face a sharp decline in volume
sold in 2020 in the context of the COVID-19 outbreak.  Demand for
IM's ready-to-wear and accessories will decline because wholesalers
and IM's network of retail stores are facing a sharp decline in
traffic due to quarantine and lockdown measures affecting several
European countries and the U.S. We anticipate that demand for IM's
products will slowly resume after the outbreak, thanks to
supportive customer engagement."

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 about
midyear, and we are using this assumption in assessing the economic
and credit implications. We believe the measures adopted to contain
COVID-19 have pushed the global economy into recession. As the
situation evolves, we will update our assumptions and estimates
accordingly."

S&P said, "We anticipate that the decline in volume can be
partially accommodated, thanks to IM's flexible cost structure.  
We forecast sales will decline by about 35%-40% in 2020, which will
lead to much lower EBITDA. In our view, IM can leverage its
flexible operating cost structure to mitigate the impact of lower
volumes on its EBTIDA, especially in relation to purchase of
finished goods, commissions paid as part of the wholesale activity,
marketing, and communication. In our base-case scenario, we
anticipate that IM's adjusted debt-to-EBITDA ratio will increase
this year to 7.5x-8.0x compared with our estimate of about
5.0x-5.5x in 2019."

Liquidity should remain adequate despite the likely difficult
collection of trade receivables.   IM generates about 50% of
revenue through its network of wholesale partners that comprises
department stores and specialty multi-brands stores. S&P said, "We
expect some of these wholesalers to be under financial distress due
to the ongoing shutdown of their activities and therefore might ask
for payment delays or might not be able to pay for goods they
purchased. We estimate that IM has about EUR46 million of cash
available as of March 2020, which should help to accommodate
potentially larger working capital requirements and service debt in
the next 12 months. We view positively the absence of significant
maturities in the next 12 months following the recent EUR200
million of senior notes issued that mature in 2025."

The negative outlook reflects the risk that IM's liquidity might
come under pressure over the next 12 months because of the lockdown
measures in Europe and in the U.S., affecting traffic in stores for
several months this year. S&P said, "Our base-case scenario
reflects a significant decline in revenue and EBITDA this year,
which is likely to reduce cash flow. That said, we believe the
business has enough liquidity available to remain self-funding if
there is a slow recovery starting from the second half of 2020."

S&P said, "We could lower the rating if IM's liquidity comes under
pressure due to highly negative free operating cash flow in 2020.
This could happen in case of prolonged closure of shops in Europe
and in the U.S. because of the COVID-19 outbreak, combined with
IM's inability to reduce its cost base and a spike in working
capital requirements.

"We could also take a negative rating action if IM was not able to
expand its EBITDA base after the COVID-19 outbreak and if its
debt-to-EBITDA ratio permanently deteriorated beyond our base case,
such that we considered its capital structure unsustainable. This
would likely happen in case of continued lower demand from IM's
wholesale partners or in case of insufficient investment in store
openings and in marketing to expand in Asia.

"We could revise our outlook to stable if IM's EBITDA base
increases after the COVID-19 outbreak, such that its adjusted
debt-to-EBITDA ratio gradually approaches 5.0x on a sustained
basis. This could happen in case of supportive customer engagement
in the company's core market, combined with successful
international expansion in Asia. Under this scenario, we would also
expect funds from operations (FFO) cash interest coverage to
sustainably exceed 2.0x and the company to remain free of liquidity
pressure."


LOUVRE BIDCO: S&P Downgrades ICR to 'B+', Outlook Stable
--------------------------------------------------------
S&P Global Ratings said that it has taken the following rating
actions on European distressed debt purchasers:

-- Placed S&P's 'B+' issuer and issue level ratings on AFE on
CreditWatch with negative implications.

-- Affirmed S&P's 'BB-' issuer credit rating on Arrow, and the
'BB' issue level rating on its senior secured notes. The outlook
was revised to negative from stable.

-- Lowered S&P's long-term issuer credit rating on B2Holding and
the issue level rating on its senior unsecured note to 'B+' from
'BB-'. The outlook is negative.

-- Affirmed the 'BB-'issuer and issue level on Cabot. The outlook
was revised to negative from stable.

-- Affirmed the 'B-' issuer level rating on FCB. The outlook was
revised to stable from developing.

-- Affirmed S&P's 'B+' issuer credit rating on Garfunkelux Holdco
2. The outlook on the rating remains negative. S&P also affirmed
the 'BB' issue level on the group's revolving credit facility
(RCF), 'B+' rating on the group's senior secured notes, and the
'B-' rating on the senior unsecured notes.

-- Lowered S&P's issuer credit ratings and the issue-level ratings
on Intrum's senior unsecured debt to 'BB' from 'BB+'. The outlook
is negative.

-- Lowered S&P's long-term issuer credit rating on Louvre Bidco to
'B+' from 'BB-', and the issue level rating on its senior secured
notes to 'B+' from 'BB-', with a recovery rating of '4', based on
S&P's expectation of meaningful recovery prospects (30%-50%). The
outlook is stable.

The rating actions reflect a more conservative view on rated
European distressed debt purchasers, amid the ongoing COVID-19
pandemic and its severe repercussions on capital markets and the
European economy. S&P said, "Importantly, as a consequence of the
pandemic, we expect the earnings, collections, and liquidity
profile of all of the sector's credits to come under a period of
sustained pressure. Specifically, the sector must find ways to
absorb falls in portfolio and servicing revenue, and shortfalls in
collections over the next six to 12 months, as the outbreak
continues across Europe. With several countries in lockdown because
of COVID-19, operational capabilities to collect may be somewhat
curtailed, and as unemployment rises rapidly we forecast materially
weaker cash flows in 2020. In addition, although we currently
anticipate an economic recovery in 2021, the magnitude of the
rebound is uncertain."

S&P said, "Furthermore, our rated entities all depend on regular
and affordable market funding to sustain their growth, because we
do not expect them to be sufficiently cash generative to repay debt
from free cash flow only. Importantly, after a sustained period of
strong growth and frequent mergers and acquisitions (M&A), leverage
has remained persistently high over the past two-to-three years and
most of these companies have failed to meet their deleveraging
objectives. We see debt as being generally high across the sector,
compared with other corporate-like financial institutions, and
already considered this a notable credit weakness before the
emergence of the pandemic, and the expected recession in most
European economies. A combination of weaker cash flows in 2020 and
potentially more-complicated market access could weigh on the
financial profile of the distressed debt purchasers, and the
negative rating actions we are taking reflect this heightened
risk.

"Our rating actions are not uniform--some entities were downgraded,
while others saw CreditWatch placements, and outlook revisions.
This diversity captures the differing levels of headroom at each
company at the previous rating level in areas such as our
liquidity/covenant analysis; debt leverage; coverage of interest by
EBITDA; exposure to the countries most affected by COVID-19; and
diversity of earnings streams, by geography and business.

"Our negative outlooks on Arrow, B2Holding, Cabot, Garfunkelux
HoldCo 2, and Intrum, and the CreditWatch negative placement for
AFE, all signify our concern regarding the growing uncertainty
posed to collections and earnings performance as COVID-19 spreads
across Europe. We expect annual servicing and portfolio incomes,
alongside cash collections on portfolios, to reduce significantly
for our issuers, worsening our EBITDA forecasts, and straining
issuer cash flow and liquidity profiles. These reductions come as
the outbreak continues to test collections infrastructure, notably
the Southern European court system, and as employment levels begin
to come under pressure in core European markets.

"That being said, the liquidity and funding positions of most of
our rated entities are relatively solid as we enter a period of
sustained economic pressure. Notably, only two issuances in the
sector mature within the next 12 months--floating-rate notes issued
separately by B2Holding and Intrum (Swedish krona 1 billion or
about EUR90 million), maturing in 2020--and we note very low
volumes of committed portfolio acquisition in the sector for the
remainder of the year, even where portfolios are purchased on a
forward-flow basis. Furthermore, we understand that collections
activities--meaning in-house collections staff--have not been
materially disrupted by social distancing and lockdown measures in
Europe, with the majority able to work remotely. However, certain
names in the sector--notably B2Holding--have very little headroom
in their maintenance covenants, threatening their liquidity and
funding positions in the near term.

"We have updated our forecasts for 2020 for this review. Our
expectations for debt to EBITDA and EBITDA interest coverage are
showing a deterioration compared with 2019 levels, and compared
with our previous forecasts for 2020, across the board. This
calculation of EBITDA for distressed debt purchasers includes an
adjustment to add back collections applied to principal, or
portfolio amortization, which flows through the cash flow
statement. This is to reflect the entire cash flow associated with
collections on distressed receivables, since these collections
could be used in theory for debt repayment. This adjustment makes
EBITDA larger than statutory accounting figures. That said,
distressed debt purchasers consistently purchase new distressed
receivables to replenish their income-generating asset base and
maintain profitability over the cycle. Although they have some
discretion over the timing, this can significantly deplete
collections applied to principal and we rate the companies assuming
ongoing activities (that is, not assuming a rapid contraction of
activities or a run-off scenario). Therefore, our EBITDA measure
may overstate the true cash available to repay debt. With this in
mind, we also consider in our analysis the impact of the add-back
for collections applied to principal. Adjusting for this in an
additional calculation of profitability, we believe that leverage
and coverage would be weaker.

"When determining the financial risk profile (FRP) of a company,
whether a distressed debt purchaser or others, we have always
looked at various supplemental ratios, to fine-tune our view. These
include funds from operations (FFO) to debt, or tangible equity
metrics, alongside leverage and interest coverage ratios."
In the eight cases discussed in this review, all credit ratios are
showing a deterioration in 2020.

AnaCap Financial Europe (AFE): B+/Watch Neg/--

S&P said, "Our 'B+' rating on AFE reflects its relatively niche and
profitable position in the European market for distressed debt,
alongside its highly leveraged, if relatively cash generative,
financial profile.

"We expect debt to EBITDA to exceed 6x at end-2020 (from
approximately 4.2x at end-2019), due to the group's substantial
exposure to the Spanish and Italian economies, which are under
stress. Furthermore, although we expect 2021 leverage metrics to
improve, as delayed collections from 2020 are realized, the timing
and visibility of these cash flows remain somewhat uncertain in our
view, as economic pressure in these geographies will persist for
the remainder of 2020 at least. In addition, we expect cash flows
to remain more volatile than for most peers. Therefore, we see at
least a one-in-two chance that we could lower our rating on AFE in
the next three months.

"The CreditWatch placement is consistent with our outlook statement
published on March 20, 2020. In this published outlook, we stated
that we would take a negative rating action if the ongoing COVID-19
outbreaks in Southern Europe result in further delays in
collections, as well as material impairments and forecast
revisions, such that expected debt to EBITDA remains materially
above 4x in 2020 and 2021."

CreditWatch

S&P said, "Our CreditWatch placement captures the risk that the
pandemic's effect on the group's financial performance and
liquidity could mean that AFE's rating is no longer commensurate
with the current 'B+' rating level.

"We aim to resolve the CreditWatch placement in the next three
months, after the publication of first-quarter results in May 2020.
This will give us more clarity on the initial impacts of COVID-19
on AFE's collections, liquidity, and financial position in 2020. We
will also assess the extent to which we could expect a recovery in
credit metrics in 2021, or not.

"At this stage, we see the possibility of a one-notch downgrade of
the long-term rating on AFE. This may happen if leverage and
interest coverage in 2020 deteriorate beyond our current estimates,
shown in the table below, or if 2021 metrics do not show material
improvement toward the levels seen pre-pandemic, in 2019."

  Table 1

  Anacap Financial Europe
                                   2018a    2019a    2020e
  Debt/EBITDA (x)                  4.1      4.2      >6
  Debt/EBITDA* (x)                 9.4      7.8      >11
  EBITDA interest coverage (x)     5.4      4        10
  EBITDA interest coverage (x)   5.7       5.9      8.6
  EBITDA interest coverage (x)   4.8      5        11
  EBITDA interest coverage (x)    2.4      2.6        10
  EBITDA interest coverage (x)  6.5       5.5      10
  EBITDA interest coverage (x)   5.4      5.0-5.5  

PEUGEOT SA: Egan-Jones Lowers Senior Unsecured Ratings to BB+
-------------------------------------------------------------
Egan-Jones Ratings Company, on April 6, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Peugeot SA to BB+ from BBB-.

Headquartered in Paris, France, Peugeot is a French automotive
manufacturer, part of Groupe PSA.




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

ATHENA BIDCO: S&P Assigns 'B' Long-Term ICR, Outlook Negative
-------------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issuer credit rating
and a negative outlook to Athena Bidco GmbH, the new holding
company that acquired P&I. S&P also assigned its 'B' issue rating
and '3(50%)' recovery rating to the EUR475 million senior secured
term loan issued by Athena Bidco.

The buyout will lead to a substantial increase in leverage, but
cash flow metrics will remain fairly robust.   Hg funded the deal
with a EUR475 million senior term loan, EUR300 million of PIK
notes, and EUR1.2 billion of sponsor equity. S&P said, "Including
the PIK notes, which we treat as debt, this will increase our
adjusted debt to EBITDA to about 11.0x on March 31 (the end of
fiscal 2020), substantially higher than our previous forecast of
5.2x-5.4x and above our previous downside trigger of 7.5x. Although
we acknowledge that the PIK facility is subordinated to the
proposed loans and will not require any ongoing debt-servicing, our
debt treatment reflects the fact that it carries a high
accumulating interest burden, which could increase the refinancing
risk at maturity, especially if the company's valuation drops
significantly. However, in our view the meaningful share of
non-cash-paying PIK debt in the structure partly cushions the
impact on cash flow metrics. In our forecast, we expect adjusted
FOCF to debt to remain between 4%-6% in fiscals 2020–2022 (7%-9%
excluding PIK). This is weaker than the level of 9.6% in fiscal
2019 and our previous base case of 10%-13% in 2020-2021, but still
consistent with that of peers at the 'B' rating level, in our view.
We also note that we expect adjusted debt to EBITDA at closing,
excluding the PIK instruments, to be at 6.5x–7.5x, materially
lower than our fully loaded ratio."

S&P said, "The negative outlook reflects our view that setbacks to
P&I's growth strategy could suffice to derail the company's
moderate pace of de-leveraging.   Under the new owner, P&I is
planning to accelerate the transition to SaaS with its
subscription-based software offering LogaAll-in (LAI), which
includes P&I's complete suite of human capital management (HCM)
modules, as well as its payroll offering. Although P&I's revenue
growth quickened to 7.7% in the first half of fiscal 2020, we think
there are some execution risks associated with the migration of its
existing client base to the new SaaS platform. This could deplete
the limited headroom under our downside triggers and undermine our
projection that leverage will gradually recede to 9.5x–10.5x
(5.0x–6.0x excluding PIK) by fiscal 2022. In our view, any
unexpected and material operating underperformance that emerges
over time could significantly compress P&I's valuation versus the
buy-out multiple of about 32x (based on fiscal 2019 reported
EBITDA) and fuel default risk following the sponsor's possible
unsuccessful exit attempt closer to the PIKs' maturity."

Growth from LAI primarily stems from the migration of existing
customers to the solution, which, given its "all-in" nature, often
results in up-selling of additional modules.   This supports
favorable pricing that is currently about 2.5x higher than the
annual recurring revenue of customers using P&I's on-premises
software. Although not our base case, we see a risk that higher fee
levels, coupled with product or customer services issues, could
lead to higher churn of clients wishing to procure only a limited
set of modules such as payroll, slow down the migration process,
and hamper growth. At this point, P&I has migrated about 16% of its
total base of 4.9 million payslips to the new solution, meaning
that the bulk of the customers remain yet to be migrated if P&I is
to achieve its target of 65% penetration by the end of fiscal
2025.

Consistently high profitability and growing share of recurring
revenue have improved our assessment of P&I's business.   S&P said,
"Despite the current negative outlook, our assessment of P&I's
business has strengthened, mainly due to our view of the company's
solid track record of high profitability, low churn, a growing
share of recurring revenue, and stronger medium-term growth
prospects as P&I markets its new SaaS-based suite of products.
P&I's adjusted EBITDA margins of 47%-49% in the last three fiscal
years outperformed most small-to-midsize software peers, thanks to
a very lean operating model and efficient cost structure. Our base
case foresees further expansion by about one percentage point
annually over fiscals 2020-2022, mainly thanks to margin-accretive
up-selling and SaaS migration, as well as the potential to
nearshore additional functions, such as research and development
(R&D)."

P&I enjoys an established position as the No.2 HR software provider
in Germany after SAP, including a No.1 position in the payroll
segment for midsize customers with 250-3,000 employees.   Its
market share in this segment is about 25%, ahead of SAP with about
19% and DATEV with about 18%. The SaaS transition is also set to
boost the share of recurring revenue (consisting mainly of SaaS and
maintenance fees) to more than 80% in fiscal 2022 from about 70% in
the first half of fiscal 2020. Moreover, following an initial
increase after the launch of LAI, churn is back in line with the
historical average of about 4% of annual contract value.

S&P said, "However, we think key risks for P&I's business remain
the company's focus on the niche market of HR software and services
and its limited geographic diversification.   We consider HR
software as less mission-critical than solutions that cover a wider
range of business functions, such as fully-fledged enterprise
resource planning platforms, which results in lower switching costs
for clients. In fiscal 2019, P&I generated 81% of total revenue
from Germany and the remainder from Switzerland and Austria. We
think strong geographic concentration makes P&I more exposed to
adverse changes in macroeconomic or industry conditions in these
countries, which could particularly affect customers in the small
and midsize enterprise segment. Moreover, P&I is much smaller than
tier-1, more broadly diversified software peers like SAP, Oracle,
Workday, etc. Among other things, we think small scale could
constrain the company's ability to spend on R&D for new products or
enhancements (current R&D spending is about EUR20 million per
year), which we consider essential to maintaining a stable market
position in the long term."

The ratings are in line with the preliminary rating S&P assigned to
Athena Bidco GmbH on Feb. 4, 2020.

S&P said, "The negative outlook reflects the risk that
slower-than-expected progress with P&I's roll-out of SaaS solutions
could cause revenue growth and organic leverage reduction to fall
short of our expectations. This could result in our adjusted debt
to EBITDA exceeding 11x and FOCF to debt falling materially below
5% in fiscal year 2021.

"We could lower the rating if P&I faced difficulties with
accelerating top-line and EBITDA growth through the transition to
SaaS, up-selling, and price increases, indicated by challenges with
migrating existing customers and higher churn, or a bigger than
currently assumed impact of COVID-19 on new customer sales and
growth. This could lead to adjusted debt to EBITDA exceeding 11x
and FOCF to debt decreasing materially below 5% in fiscal 2021.
Although we do not expected it at this stage, we could also lower
the rating if leverage increased further through debt-funded
shareholder returns or material acquisitions.

"Rating upside is remote because of higher expected leverage
following the leveraged buyout, and our expectation that the new
sponsor owner is unlikely to pursue significant leverage reductions
on a sustained basis. However, we could raise the rating if P&I
improved FOCF to about 10% of adjusted debt. This is most likely to
materialize through gross debt repayments combined with strong
EBITDA growth. In addition, we would require a firm financial
policy commitment to maintain metrics at this level."


CONTINENTAL AG: Egan-Jones Lowers Senior Unsecured Ratings to BB+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on April 6, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Continental AG to BB+ from A.

Headquartered in Hanover, Germany, Continental AG manufactures
tires, automotive parts, and industrial products.


DIOK REAL ESTATE: S&P Withdraws Prelim 'B' Issuer Credit Rating
---------------------------------------------------------------
S&P Global Ratings withdrew its preliminary 'B' issuer credit
rating on DIOK Real Estate AG. At the same time, S&P withdrew the
preliminary 'B' issue rating on the company's senior unsecured bond
due 2023. S&P had assigned the preliminary ratings on Nov. 4, 2019,
based on the company's proposed issuance of the third tranche of
its senior unsecured bond to finance acquisitions. However, the
company has not issued the tranche within the time frame S&P
expected, so it is withdrawing its preliminary ratings.

Certain terms used in this report, particularly certain adjectives
used to express our view on rating relevant factors, have specific
meanings ascribed to them in our criteria, and should therefore be
read in conjunction with such criteria.




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

NAVIOS MARITIME: S&P Alters Outlook to Negative & Affirms 'B' ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on dry bulk shipping and
logistics company Navios Maritime Holdings Inc. (Navios Holdings)
to negative and affirmed its 'B' long-term issuer credit rating, as
well as its 'B' issue and '3' recovery ratings on the $498 million
outstanding, 7.375%, first priority ship mortgage notes due Jan.
2022.

S&P is also lowering its issue rating to 'B-' from 'B' and recovery
rating to '5' from '4' on the $305 million, 11.25% senior secured
notes due Aug. 2022 because of the lower value of the underlying
collateral package.

Navios Holdings faces increasing refinancing risk for its 2021-2022
debt maturities.   Despite an attempt to tap debt capital markets,
Navios Holdings did not refinance the $100 million outstanding term
loan B (TLB) due Nov. 2021 and $375 million senior unsecured notes
due April 2022 (both issued by subsidiary Navios South American
Logistics Inc. [Navios Logistics]). The company is facing
increasing refinancing risk, with close to $1 billion of bullet
debt (issued by Navios Logistics and Navios Holdings) due late 2021
and early 2022, aggravated by the expected performance headwinds
and currently constrained capital markets due to the COVID-19
pandemic.

S&P said, "Our expectation of rating-commensurate credit measures
and timely refinancing underpin the rating.  Under our base case,
Navios Holdings will maintain rating-commensurate credit measures,
but they will be weaker this year than in 2019. We forecast lower
reported EBITDA of about $150 million in 2020, compared with close
to $170 million last year, held back by softer shipping charter
rates and somewhat lower Navios Logistics earnings on deteriorating
economic conditions in Latin America. This decrease, accompanied by
slightly higher debt based on our assumptions that operating cash
flows will not fully cover cash needs--including $120 million-$130
million of interest expense and about $50 million of scheduled debt
amortization--points toward adjusted funds from operations (FFO) to
debt worsening to 6%-8% in 2020 (from about 10% in 2019) and
adjusted debt to EBITDA to 6x-8x in 2020 (from about 5.5x in 2019).
In 2021, we expect a gradual upturn in shipping charter rates that
will boost EBITDA generation and help restore headroom under the
'B' rating. We factor in that Navios Holdings will obtain timely
external funding, necessary to refinance maturing bullet debt. We
recognize that the closest maturity, namely the $100 million TLB
due Nov. 2021 and issued by Navios Logistics, is secured by
first-priority liens on certain assets, including vessels, and a
20-year take-or-pay logistics contract with Vale International S.A.
(Vale) with a minimum of over $40 million in annual EBITDA. This
should help Navios Logistics to refinance its capital structure
once COVID-19 is contained and the knock-on effect on capital
markets eases."

Dry bulk shipping has come under pressure in 2020.  A combination
of factors has kept charter rates under strain. These include
China's (the world's largest consumer accounting for about 35% of
dry bulk imports) disrupted industrial activity and its reduced
demand for commodities after the COVID-19 pandemic; disruption to
Brazilian iron ore exports; and higher bunker costs (after
International Maritime Organization [IMO] 2020 low-sulfur
regulation made shipments more expensive), aggravated by typical
seasonal lows. According to Clarkson Research, average bulker
earnings (including large scrubber-fitted vessels) are down by 24%
year to date versus the same period in 2019. The one-year-time
charter rate for large capesize dry bulk vessels dropped to about
$11,000 per day (/day) at March 31, 2020, compared with $15,000/day
at the start of the year.

Dry bulk shipping conditions are set to rebound from second-half
2020.   The Chinese government's new stimulus measures to prop up
the country's economy amid the COVID-19 pandemic include
construction of highways and social housing, which indicates the
need for commodities such as iron ore and coal. Combined with other
factors hindering active ship capacity growth--such as significant
delays in dry-docking works and scrubber retrofitting, active ship
demolition, and IMO 2020-related slow steaming--could result in
demand-and-supply growth reaching equilibrium, supporting charter
rates toward year-end 2020. S&P said, "We believe that the industry
will also remain in balance in 2021. In our forecast, we assume
that China's imports of dry bulk commodities will stabilize and
underpin low-single-digit global trade growth." Supply growth will
be similar because of the current all-time-low order book
(accounting for 9% of the global fleet, according to Clarkson
Research), delays in ship construction, and ships sent to
shipbreaking yards to potentially offset the effects from
scrubber-equipped dry bulkers resuming operation.

The negative outlook reflects uncertainty around the severity and
longevity of the COVID-19 pandemic, currently limited funding via
debt capital markets, and the risk that Navios Holdings might find
it increasing difficult to refinance its bullet debt maturities in
a timely manner.

S&P said, "We would downgrade Navios Holdings by year-end 2020 if
the COVID-19 pandemic cannot be contained or economic recession
gets worse, leading to sluggish demand for commodities, lower ship
utilization rates, and consequently charter rates falling short of
our expectations,. This combined would increase Navios Holdings'
leverage and hinder its ability to refinance late-2021 and
early-2022 debt maturities in a timely manner, which we consider to
be at least 12 months ahead of maturity.

"We could also downgrade Navios Holdings if adjusted FFO to debt
appears to decline sustainably below 6% or negative free cash flows
resulted in a liquidity shortfall in 2020."

Furthermore, a deterioration of Navios Maritime Acquisition Corp.'s
(Navios Acquisition's) liquidity, resulting in a downward revision
of its stand-alone credit profile (SACP) to 'ccc', would put
pressure on Navios Holdings' creditworthiness.

S&P said, "We could revise the outlook to stable if Navios Holdings
refinances its 2021-2022 bullet debt maturities. We would also
expect gradually recovering dry-bulk charter rates, moderate
earnings growth at Navios Logistics, adjusted FFO to debt remaining
above 6% in 2020-2021, and liquidity sources to uses stabilizing at
well above 1.2x."

The stable outlook would also reflect S&P's view that our group
credit profile (GCP) assessment of 'b' will remain unchanged.




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

APTIV PLC: Egan-Jones Lowers Senior Unsecured Ratings to B-
-----------------------------------------------------------
Egan-Jones Ratings Company, on April 6, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Aptiv PLC to B- from B. EJR also downgraded the
rating on FC commercial paper issued by the Company to B from A3.

Aptiv PLC is a Jersey-domiciled auto parts company headquartered in
Dublin, Ireland.


CARLYLE EURO 2020-1: S&P Assigns B- (sf) Rating on Class E Notes
----------------------------------------------------------------
S&P Global Ratings assigned credit ratings to the class A1 to E
European cash flow collateralized loan obligation (CLO) notes
issued by Carlyle Euro CLO 2020-1 DAC. At closing the issuer also
issued unrated subordinated notes.

The ratings 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 is bankruptcy remote
in accordance with S&P's legal rating framework.

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

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

At closing, the portfolio is well-diversified, primarily comprising
broadly syndicated speculative-grade senior secured term loans and
senior secured bonds. Therefore, S&P has conducted its credit and
cash flow analysis by applying its criteria for corporate cash flow
collateralized debt obligations.

S&P said, "In our cash flow analysis, we used the EUR450 million
target par amount, the covenanted weighted-average spread (3.70%),
the reference weighted-average coupon (4.50%), and the actual
weighted-average recovery rate. 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.

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

"Until the end of the reinvestment period in October 2024, the
collateral manager can substitute assets in the portfolio for so
long as our CDO Monitor test is maintained or improved in relation
to the initial ratings on the notes. This test looks at the total
amount of losses that the transaction can sustain as established by
the initial cash flows for each rating, and compares that with the
default potential of the current portfolio plus par losses to date.
As a result, until the end of the reinvestment period, the
collateral manager can, through trading, deteriorate the
transaction's current risk profile, as long as the initial ratings
are maintained.

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

"The transaction's legal structure is bankruptcy remote, in line
with our legal criteria.

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

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 we are 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.

In addition to S&P's standard analysis, to provide an indication of
how rising pressures among speculative-grade corporates could
affect our ratings on European CLO transactions, S&P has also
included the sensitivity of the ratings on the class X to D notes
to five of the 10 hypothetical scenarios it looked at in its recent
publication. The results are as follows:

-- Increase in 'CCC' category asset exposure to 15%: the class D
notes would be downgraded by one notch.

-- Increase in 'CCC' category asset exposure to 25%: the class A-1
and C notes would be downgraded by one notch.

-- 10% portfolio default assuming a weighted average recovery rate
at the 'AAA' rating level: the class A-1, B, and C notes would be
downgraded by one notch and class D notes by three notches.

-- All the underlying names in the portfolio had their ratings
lowered by one notch: the class A-1, A-1A, A-2B, and B notes would
be downgraded by one notch and class D by two notches.

-- 10% decline in the weighted-average recovery rate assumptions:
the class A-1 and D notes would be downgraded by one notch.

Please note that these sensitivities were based on the covenanted
spreads and actual recovery assumptions.

The transaction securitizes a portfolio of primarily senior secured
leveraged loans and bonds, and will be managed by CELF Advisors
LLP, a wholly owned subsidiary of Carlyle Investment Management
LLC, which is a Delaware limited liability company, indirectly
owned by The Carlyle Group L.P.

  Ratings List

  Issuer
  Carlyle Euro CLO 2020-1 DAC

  Class      Rating
  A-1        AAA (sf)
  A-2A       AA (sf)
  A-2B       AA (sf)
  B          A (sf)
  C          BBB- (sf)
  D          BB- (sf)
  E          B- (sf)
  Sub notes  NR

  NR--Not rated.


ST. PAUL'S CLO XII: S&P Assigns B- (sf) Rating on Class F Notes
---------------------------------------------------------------
S&P Global Ratings assigned its credit ratings to St. Paul's CLO
XII DAC's class X, A, B-1, B-2, C-1, C-2, D, E, and F notes. At
closing, the issuer also issued unrated subordinated notes.

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 reinvestment period will end approximately 4.5
years after closing, and the portfolio's maximum average maturity
date is approximately 8.5 years after closing.

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.

  Portfolio Benchmarks
                                                      Current
  S&P Global Ratings weighted-average rating factor 2,678.32
  Default rate dispersion                             481.96
  Weighted-average life (years)                       5.67
  Obligor diversity measure                           99.44
  Industry diversity measure                          18.01
  Regional diversity measure                          1.34

  Transaction Key Metrics
                                                      Current
  Total par amount (mil. EUR)                         400
  Defaulted assets (mil. EUR)                         0
  Number of performing obligors                       124
  Portfolio weighted-average rating
   derived from our CDO evaluator                     'B'
  'CCC' category rated assets (%)                     1.50
  Covenanted 'AAA' weighted-average recovery (%)      35.53
  Covenanted weighted-average spread (%)              3.50
  Covenanted weighted-average coupon (%)              4.75

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 EUR400 million par amount,
the covenanted weighted-average spread of 3.50%, the covenanted
weighted-average coupon of 4.75%, 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."

The transaction's documented counterparty replacement and remedy
mechanisms adequately mitigate its exposure to counterparty risk
under our current counterparty criteria.

S&P said, "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.

"At closing, we considered 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 F notes could withstand
stresses commensurate with higher rating levels than those we have
assigned. However, as the CLO is still in its reinvestment phase,
during which the transaction's credit risk profile could
deteriorate, we have capped our assigned 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 to 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 all of the
rated classes of notes.

"In addition to our standard analysis, to provide an indication of
how rising pressures among speculative-grade corporates could
affect our ratings on European CLO transactions, we have also
included the sensitivity of the ratings on the class X to E notes
to five of the 10 hypothetical scenarios we looked at in our recent
publication.

"As our ratings analysis makes additional considerations before
assigning ratings in the 'CCC' category, and we would assign a 'B-'
rating if the criteria for assigning a 'CCC' category rating are
not met, we have not included the above scenario analysis results
for the class F notes.

"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 we are using this assumption in assessing the economic
and credit implications. We believe the measures adopted to contain
COVID-19 have pushed the global economy into recession. As the
situation evolves, we will update our assumptions and estimates
accordingly."

St. Paul's CLO XII DAC 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.
Intermediate Capital Managers Ltd. will manage the transaction.

  Ratings List

  Class    Rating    Amount   Sub (%)    Interest rate*            
  
                  (mil. EUR)
  X      AAA (sf)    2.0       N/A      Three/six-month EURIBOR
                                         plus 0.35%
  A      AAA (sf)    244.00    39.00    Three/six-month EURIBOR
                                         plus 0.92%
  B-1    AA (sf)     14.00     28.00    Three/six-month EURIBOR
                                         plus 1.60%
  B-2    AA (sf)     30.00     28.00    1.90%
  C-1    A (sf)      22.50     20.50    Three/six-month EURIBOR
                                         plus 2.00%
  C-2    A (sf)      7.50      20.50    2.10%
  D      BBB (sf)    24.00     14.50    Three/six-month EURIBOR
                                         plus 3.20%
  E      BB- (sf)    20.00     9.50     Three/six-month EURIBOR
                                         plus 5.32%
  F      B- (sf)     11.00     6.75     Three/six-month EURIBOR
                                         plus 8.05%
  Sub Notes   NR     35.65     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
=========

ATLANTIA SPA: Egan-Jones Lowers Senior Unsecured Ratings to B+
--------------------------------------------------------------
Egan-Jones Ratings Company, on April 6, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Atlantia SpA to B+ from BB-.

Headquartered in Rome, Italy, Atlantia SpA manages, expands, and
maintains transport infrastructures under concession.


FIAT SPA: Egan-Jones Lowers Senior Unsecured Ratings to BB-
-----------------------------------------------------------
Egan-Jones Ratings Company, on April 6, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Fiat S.p.A. to BB- from BB.

Headquartered in Turin, Italy, Fiat S.p.A. manufactures and markets
automobiles, commercial vehicles, and agricultural and construction
equipment.




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

INTELSAT SA: Moody's Cuts CFR to Ca, Alters Outlook to Negative
---------------------------------------------------------------
Moody's Investors Service downgraded Intelsat (Luxembourg) S.A.'s
corporate family rating to Ca from Caa2, probability of default
rating to Ca-PD from Caa3-PD, senior unsecured notes ratings to C
from Ca, speculative grade liquidity rating to SGL-4 from SGL-3,
and changed the outlook to negative from stable. Moody's also
downgraded Intelsat Jackson Holdings S.A.'s senior secured credit
facilities ratings to B3 from B1, senior secured notes ratings to
B3 from B1, and senior unsecured notes ratings to Ca from Caa2. In
addition, Moody's downgraded Intelsat Connect Finance S.A.'s senior
unsecured notes rating to C from Ca. The rating action follows the
company's announcement that Jackson has elected to withhold an
interest payment of about $125 million due on April 15, 2020 [1].

Jackson has a 30-day grace period to make the missed interest
payment before it triggers an event of default. If the interest
payment is not made within the 30 days, Moody's will consider the
event a limited default and will appended the "/LD" designation to
the PDR.

"The downgrade reflects the high likelihood of a debt restructuring
in the near term", said Peter Adu, Moody's Vice President and
Senior Analyst.

Ratings Downgraded:

Issuer: Intelsat (Luxembourg) S.A.

Corporate Family Rating, to Ca from Caa2

Probability of Default Rating, to Ca-PD from Caa3-PD

Gtd. Senior Unsecured Notes, to C (LGD6) from Ca (LGD5)

Speculative Grade Liquidity Rating, to SGL-4 from SGL-3

Issuer: Intelsat Jackson Holdings S.A.

Gtd. Senior Secured Bank Credit Facilities, to B3 (LGD2) from B1
(LGD1)

Gtd. Senior Secured Notes, to B3 (LGD2) from B1 (LGD1)

Gtd. Senior Unsecured Notes, to Ca (LGD4) from Caa2 (LGD3)

Issuer: Intelsat Connect Finance S.A.

Gtd. Senior Unsecured Notes, to C (LGD5) from Ca (LGD4)

Outlook Action:

Issuer: Intelsat (Luxembourg) S.A.

Outlook, Changed to Negative from Stable

RATINGS RATIONALE

Intelsat's Ca CFR is constrained by: (1) expectations that it will
pursue a debt restructuring in the near term because of the missed
interest payment; (2) unsustainable capital structure given its
large debt load and expectations that leverage (adjusted
Debt/EBITDA) will be sustained above 10x in the next 12 to 18
months (10.5x for 2019); (3) declining revenue and EBITDA due to
pressures in its business segments; and (4) weak liquidity. The
rating benefits from: (1) the company's large satellite fleet and
revenue backlog.

Intelsat's environmental risk is evolving. The company owns
operational satellites as well as ones that have lived out their
useful lives and have become space debris. Given the number of
satellites to be launched in the future, this debris will be
increasingly costly for operators.

Intelsat is exposed to social risk. Technological advancement is
impacting the way customers consume data. As a result of the
sensitive nature of information Intelsat handles, the company will
be impacted meaningfully if data security breaches occur.

Intelsat's governance risk is elevated. The company capital
structure is unsustainable due to high leverage and large debt
load.

Intelsat has weak liquidity (SGL-4). Sources amount to $811 million
of cash at Q4/2019 while uses will exceed $800 million in the next
18 months. Uses of liquidity include $421 million of debt due in
June 2021, at least $100 million of expected negative free cash
flow generation in the next 18 months, while upfront costs to clear
C-band spectrum in order to receive proceeds totaling $4.85 billion
in September 2021 and September 2023 could be significant.
Intelsat's only source of liquidity is its balance sheet cash as it
has no revolving credit facility. The company has limited ability
to generate liquidity from asset sales in the near term.

The outlook is negative because the company is likely to
restructure its debt in the near term.

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

The ratings will be downgraded if the company restructures its
debt. The ratings will be upgraded if the company reduces debt
materially and improves its liquidity profile.

The principal methodology used in these ratings was Communications
Infrastructure Industry published in September 2017.

Headquartered in Luxembourg, and with administrative offices in
McLean, VA, Intelsat is one of the largest fixed satellite services
operators in the world. Revenue for the fiscal year ended December
31, 2019 was $2.1 billion.

INTELSAT SA: S&P Cuts Rating to 'SD' on Missed Interest Payment
---------------------------------------------------------------
S&P Global Ratings downgraded Luxembourg-based satellite provider
Intelsat S.A. to 'SD' from 'CCC+'. S&P also lowered its unsecured
issue-level ratings to 'D'.

Intelsat failed to make the semi-annual $125 million interest
payment due on the $2.9 billion 8.5% unsecured notes due 2024
issued by Intelsat Jackson Holdings S.A. S&P expects that the
company will enter into a restructuring agreement with its lenders
and bondholders or file for Chapter 11 bankruptcy.





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

BME GROUP: Moody's Cuts CFR to B3, Outlook Stable
-------------------------------------------------
Moody's Investors Service, has downgraded the corporate family
rating of the Dutch building materials distributor BME Group
Holding B.V. to B3 from B2 and the probability of default rating
has been downgraded to B3-PD from B2-PD. Concurrently, the
instrument rating on EUR700 million 1st lien senior secured term
loan B, EUR280 million 1st lien senior secured term loan A and
EUR195 million 1st lien senior secured revolving credit facility
was downgraded to B2 from B1 while the rating on EUR218 million 2nd
lien senior secured TLB was downgraded to Caa2 from Caa1. The
rating outlook is stable.

RATINGS RATIONALE

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, and Moody's views
them as a social risk factor under its assessment of ESG
considerations.

Its rating action reflects Moody's belief that BME will face
challenging operating conditions across Europe amid store closures
and declining demand as recently announced lockdowns and social
distancing will seriously affect demand for non-essential products.
Moody's expects that this will hurt the company's earnings and
already thin margins and ultimately result in negative free cash
flow generation in 2020. Consequently, BME's already significant
financial leverage (Moody's adjusted gross debt/ EBITDA of around
6.9x in 2019) will likely deteriorate in 2020. Moreover, adverse
market environment and the expected recession in BME's core markets
makes it very challenging for the company to reach metrics
commensurate with its previous B2 rating also in the following
year.

BME's rating is supported by its leading position in the building
materials distribution market in Europe with diversification across
six core European markets and the relative resilience of the
business model due to high proportion of more stable renovation and
maintenance (RMI) end-market sales. But more importantly, the
rating is supported by BME's good liquidity position, which was
substantially improved by the sale of the company's 21% stake in
French distributor SAMSE for EUR136 million end of February 2020.
Together with higher than Moody's expected cash position at the
year-end 2019 of EUR177 million (of which EUR5 million restricted
and EUR61 million results from the RCF drawing), BME has enough
liquidity to cover the eventual negative free cash flow in 2020
even in case of a very large drop in earnings. EUR195 million
revolving credit facility, fully undrawn as of mid-March 2020,
provides additional and sufficient liquidity buffer.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation that the company's
strengthened liquidity would allow it to cushion the earnings and
cash flow setback in 2020 while the recovery in the following year
would enable credit metrics to return to metrics more commensurate
with its B3 rating.

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

Positive rating pressure could arise if:

  - Moody's adjusted gross debt/EBITDA declines sustainably below
6.5x;

  - Operational improvements evident in growing Moody's adjusted
operating margin

  - Strengthening liquidity profile supported by positive free cash
flow generation

Conversely, negative rating pressure could arise if:

  - Moody's adjusted gross debt/EBITDA increases above 8x;

  - Moody's adjusted operating margin deteriorates;

  - Moody's adjusted EBITA/ Interest below 1x;

  - Negative free cash flow resulting in deteriorating liquidity

STRUCTURAL CONSIDERATION

In the loss-given-default assessment for BME, Moody's ranks pari
passu the senior EUR700 million TLB, EUR280 million TLA and EUR195
million RCF, which share the same security and are guaranteed by
certain subsidiaries of the group accounting for at least 80% of
consolidated EBITDA. The term loan is covenant-light with a spring
net leverage covenant set at 8.4x only applicable to the revolver
if it is drawn over 45%. The B2 ratings on these instruments
reflect their priority position in the group's capital structure
and the benefit of loss absorption provided by the junior ranking
debt.

The EUR218 million of senior secured second lien loans are ranked
junior to the 1st lien TLB, TLA and the RCF. They share the same
security as the 1st lien TLB, TLA and RCF and are also guaranteed
by subsidiaries of the group accounting for at least 80% of
consolidated EBITDA. This is reflected in the Caa2 rating assigned
to these loans.

LIQUIDITY

The liquidity profile of the company is good. This is reflected in
EUR172 million of unrestricted cash at the year-end 2019 and EUR134
million availability under the EUR195 million RCF. After the
seasonal working capital build-up in the beginning of the year and
including EUR136 million proceeds from the sale of Samse stake, BME
reported to have EUR224 million of cash and a fully undrawn RCF as
of 20 March 2020.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Distribution &
Supply Chain Services Industry published in June 2018.

PROFILE

Based in Schiphol, the Netherlands, BME Group is the third-largest
European building materials distributor operating in Germany, the
Netherlands, Belgium, France, Switzerland and Austria. In November
2019, the company was acquired by Blackstone from CRH Plc, one of
the world's largest building materials companies, for a total
consideration of EUR1.7 billion as CRH decided to focus on its
heavy side building materials business. In 2019, BME generated
EUR3.8 billion in revenues and EUR179 million of
management-adjusted EBITDA.



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

NAVICO GROUP: S&P Lowers ICR to 'CCC-' Amid COVID-19 Disruptions
----------------------------------------------------------------
S&P Global Ratings lowered to 'CCC-' from 'CCC' its long-term
issuer credit rating on Norway-based marine electronics producer
Navico Group and its issue rating on its first-lien term loan.

Heightened uncertainty around Navico's 2020 EBITDA and cash flow
from COVID-19 is putting more pressure on Navico's liquidity.

S&P Global Ratings acknowledges a high degree of uncertainty about
the rate of spread and peak of the coronavirus outbreak. S&P said,
"As the situation evolves, we will update our assumptions and
estimates accordingly. However, our view is that disruptions caused
by COVID-19, like lockdown on non-essential services and weak
consumer confidence, is disrupting demand in the marine electronics
market. Assuming weaker demand primarily in the second quarter,
which has historically been stronger, we now expect Navico's
revenue to decline by 15%-20% in 2020, compared with our previous
estimate of a 3%-5% decline. To offset lower revenues, we
understand that Navico has initiated several cost reduction
initiatives to reduce its operating expenses and capital
expenditure (capex) in 2020. However, for 2020 we forecast negative
S&P Global Ratings-adjusted EBITDA (this is after deducting
capitalized R&D) and negative FOCF."

Navico's liquidity still remains under pressure after it received
external financing due to higher-than-expected cash burn.

S&P said, "We forecast that Navico's liquidity sources over uses
will be about 0.5x in the next 12 months, compared with our
previous forecast of less than 0.6x. This is despite the additional
three-year credit facility of $20 million, which Navico has
partially drawn as of April 8, 2020. This is because we now
forecast a more negative FOCF at -$40 million in 2020 in our
current forecast, compared with the -$15 million we previously
forecast. As a result, we think a risk of default is now closer
than in our previous base case."

The negative outlook indicates that Navico's liquidity and revenue
will remain under pressure for the next few quarters.

S&P could lower the rating on Navico if it expects default to be a
virtual certainty, regardless of time to default, in particular if
Navico announces:

-- Missing a payment on its obligations;
-- Its intention to file for bankruptcy;
-- Its intention to undertake an exchange offer or similar
restructuring that we classify as distressed; or
-- It is going to breach the covenant on the RCF.


PGS ASA: Moody's Cuts CFR to B3 & Reviews Ratings for Downgrade
---------------------------------------------------------------
Moody's Investors Service downgraded PGS ASA's corporate family
rating to B3 from B2, its probability of default rating to B3-PD
from B2-PD and the ratings assigned to its senior secured term loan
B and revolving credit facility to B3 from B2. Concurrently,
Moody's placed PGS's ratings on review for further downgrade and
changed PGS's outlook to Rating Under Review. The previous outlook
on the company was stable.

RATINGS RATIONALE

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 oilfield
services sector has been one of the sectors most significantly
affected by the shock given its sensitivity to oil prices and
investment activity within the oil and gas sector. Moody's regards
the coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety, as
well as the associated economic impact.

Its action reflects the impact on PGS of the breadth and severity
of the shock, and the broad deterioration in credit quality it has
triggered. Given the unprecedented conditions currently prevailing
in the oil markets, Moody's expects demand for seismic services to
significantly weaken amid ongoing downward revisions of 2020
capital expenditure budgets by oil and gas majors and independent
E&P (exploration and production) companies. While PGS indicated on
3 April that it had not yet received any contract cancellations,
Moody's believes that the group is likely to experience a
considerable shortfall in revenues and deterioration in operating
profitability against initial expectations for 2020 and 2019
actuals.

Moody's also acknowledges that the significant improvement in cost
structure achieved since the 2015-2016 downcycle should benefit
PGS's resilience in the current low oil price environment.
Furthermore, in order to reduce costs, PGS recently decided to
cold-stack two of the eight currently operated 3D vessels early in
Q2 2020, after completion of current projects. Further capacity
adjustments may be considered in coming months and Moody's expects
the group's 2020 capex budget of $80 million to be significantly
reduced.

Despite the refinancing completed in February 2020, which included
a NOK850 million rights issue, Moody's expects PGS's liquidity
position to come under renewed strain in the next few months given
the impact the sudden deterioration in seismic market conditions
will likely have on the group's financial performance and cash flow
generation.

At the end of Q1 2020, PGS had fully drawn its $350 million RCF (up
from $180 million drawn on December 31, 2019), boosting its
unrestricted cash balances of $41 million at year-end 2019.
However, the reduction in the size of its RCF to $215 million
scheduled in September 2020, will trigger the obligation for the
group to repay drawings of $135 million. Also, while the senior
secured TLB is covenant-lite and has no financial maintenance
covenants, the RCF is subject to a net total leverage and minimum
liquidity covenant, under which headroom may significantly reduce
should the group's cash flow generation sharply deteriorate in
coming months.

In this context, the review will focus on (i) PGS's decision
whether to seek the deferral of the reduction in the RCF beyond
September 2020 and the response from the banks to such a request;
(ii) the terms and structure of a possible extension of all or part
of the $135 million tranche of the RCF falling due in September
2020; (iii) the actions concomitantly taken by the group in order
to conserve cash and protect its balance sheet; (iv) the potential
operational disruptions resulting from the coronavirus outbreak;
and (v) taking into account the foregoing, Moody's view of the
sustainability of the current capital structure.

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

While unlikely at this juncture, a rating upgrade is predicated on
a sustainable market recovery leading to an improved financial
profile reflected in a Moody's-adjusted EBIT margin above 5% and
adjusted total debt to EBITDA (excluding multiclient capital
spending) falling below 4.5x on a sustained basis. An upgrade would
also require the group to be consistently free cash flow positive
and maintain healthy liquidity.

The B3 rating would come under pressure should the group fail to
shore up its liquidity profile in advance of the $135 million
repayment falling due in September 2020. A rating downgrade would
also be considered should pronounced market weakness keep the
group's EBIT margin negative and Moody's-adjusted total debt to
EBITDA (excluding multiclient capital spending) above 6.0x for an
extended period.

STRUCTURAL CONSIDERATIONS

The senior secured TLB and RCF are rated B3 in line with the
corporate family rating. They are guaranteed by the material
subsidiaries of the group representing at least 80% of group EBITDA
and assets. In addition, they benefit from a first security
interest in substantially all the assets of the borrowers and
guarantors, with the exception of Titan-class vessels, in which
lenders will hold an indirect second priority security interest.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Oilfield
Services Industry Rating Methodology published in May 2017.

COMPANY PROFILE

PGS ASA is one of the leading offshore seismic acquisition
companies with worldwide operations. PGS headquarters are located
at Oslo, Norway. The company is a technologically leading oilfield
services company specializing in reservoir and geophysical
services, including seismic data acquisition, processing and
interpretation, and field evaluation. PGS maintains an extensive
multi-client seismic data library. For the year ended December 31,
2019, PGS reported Segment EBITDA of $556 million on Segment
revenues of $880 million. PGS is a public limited company
incorporated in the Kingdom of Norway and is listed on the Oslo
Stock Exchange.



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

FG BCS: S&P Alters Outlook to Stable & Affirms 'B/B' ICR
--------------------------------------------------------
S&P Global Ratings revised its outlook on FG BCS Ltd. and its
operating subsidiaries BrokerCreditService (Cyprus) Ltd.,
BrokerCreditService Structured Products PLC, and BCS Prime
Brokerage Ltd. (BCS Prime) to stable from positive. S&P also
affirmed its 'B/B' long- and short-term issuer credit rating on FG
BCS and 'B+/B' long- and short-term issuer credit ratings on its
operating subsidiaries.

The outlook revision reflects S&P's view that the global capital
markets downturn and sharply increased volatility and weaker
macroeconomic conditions in Russia and worldwide due to the
COVID-19 pandemic and decline in oil prices are likely to
negatively affect FG BCS's and its subsidiaries' profitability and
risk-adjusted capital (RAC) this year.

FG BCS is one of the largest and most diversified brokers in the
Russian market. It serves 10%-15% of domestic retail brokerage
clients and is the largest operator in the equities and derivative
market on the Moscow Exchange, with 20%-25% market share throughout
2019.

S&P said, "We expect that our forecast of a 0.8% GDP contraction in
Russia in 2020, which could potentially be revised down, will have
negative effects on the revenue and growth prospects of BCS Global
Markets' Investment Banking division (about one-third of 2018-2019
group revenue). In our view, underwriting, initial public offering,
and merger and acquisition deals will slow down this year so long
as high uncertainty related to COVID-19 remains."

However, revenue in the retail segment for fee-based brokerage and
asset management is likely to increase because of an influx of new
retail clients and expanding client balances following the recent
introduction of a tax on deposits interest, drop in equity prices
and increased volatility in capital markets (since mid-Feb. 2020).
The retail segment accounted for about one-third of revenue in
2018-2019.

Furthermore, the group expects growth to continue this year in
structured products sold to high net worth individuals and retail
investors, which accounted for about one-third of 2019 revenue. S&P
sees a risk, amid declining capital markets, of a potential rise in
miss-selling claims. Moreover, stock market declines may also
expose the firm to margin calls on structured product hedges in the
form of derivative contracts with market counterparties. This would
strain liquidity at a time it is most needed and potentially also
expose the company to trading losses (including foreign-exchange
risk) if some hedges prove inefficient. Historically, FG BCS hedged
through trading assets with underlying sold structured products.

Since the beginning of 2020, FG BCS has been gradually reducing its
trading positions. Its trading bond portfolio was about Russian
ruble (RUB) 20 billion and equities about $1 million at March 31,
2020.

S&P said, "We anticipate that our RAC ratio is likely to
substantially decline in 2020 due to higher risk charges in light
of increased capital market volatility and lower retained earnings.
Nevertheless, we expect RAC to stay above 10% by year-end 2020,
compared with 14.8% at year-end 2018.

"We expect the group to maintain adequate liquidity and stable
funding to withstand difficult conditions and potential increases
in margin calls (notably in its structured products segment) and
losses of clients' confidence-sensitive deposits at U.K. subsidiary
BCS Prime." To cope with these risks, the group had about RUB162
billion in unencumbered liquid assets as of April 1, 2020, which is
over 40% of its balance sheet.

In addition, FG BCS has access to the Russian central bank's
repurchase agreement (repo) mechanisms via its banking subsidiary.
S&P also notes that the repo and reverse-repo transactions are
generally matched in tenor, and there are no material mismatches
between group entities. In addition, FG BCS benefits from more
stable and diversified retail customer accounts than domestic
peers; its large portion of repo liabilities that are created
self-funded assets; and high quality of collateral.

S&P said, "Our stand-alone credit profile (SACP) assessment for BCS
Prime is 'b' reflecting its limited size, concentrated clientele,
and focus on prime brokerage services for institutional clients and
professional investors. We assess the company's capital and risk
position as adequate for the risks it faces. We view the company's
funding as moderate reflecting its confidence-sensitive nature and
elevated funding and liquidity risks in the prime brokerage
business in current market conditions. We view BCS Prime as a core
subsidiary of FG BCS and believe that it would benefit from group's
support under most foreseeable circumstances.

"The stable outlook on FG BCS and its core subsidiaries reflects
our expectation that unfavorable market and economic conditions
will likely negatively affect profitability, but that the company
will operate with sufficient but declining capital and adequate
liquidity to withstand potential stresses over the next 12 months.

"Over the same time horizon, a negative rating action could follow
if we see higher pressure on FG BCS's RAC ratio and/or liquidity,
and if there are additional operational and execution risks arising
from the new organizational structure.

"An upgrade is unlikely over the next 12 months. However, over the
longer term, a positive rating action could follow if we view FG
BCS as a clear outperformer in 2020 among rated Russian securities
companies, demonstrated by more sustained and less volatile
performance, higher capital buffers, and adequate liquidity."


UZBEKISTANI TASHKENT: S&P Suspends 'BB-' LT Issuer Credit Rating
----------------------------------------------------------------
On April 15, 2020, S&P Global Ratings suspended its 'BB-' long-term
issuer credit rating on the Uzbekistani Tashkent Oblast.

As a "sovereign rating" (as defined in EU CRA Regulation 1060/2009
"EU CRA Regulation"), the ratings on Tashkent Oblast are subject to
certain publication restrictions set out in Art 8a of the EU CRA
Regulation, including publication in accordance with a
pre-established calendar. Under the EU CRA Regulation, deviations
from the announced calendar are allowed only in limited
circumstances and must be accompanied by a detailed explanation of
the reasons for the deviation. In this case, the reason for the
deviation is Tashkent Oblast rating suspension due to the lack of
information of satisfactory quality to make a rating decision.

Rationale

S&P said, "We suspended our rating on Tashkent Oblast because of a
lack of information we consider of sufficient quality from the
oblast on its financial, economic, liquidity, and debt indicators.
This action follows repeated attempts by S&P Global Ratings to
obtain timely information of satisfactory quality to maintain our
rating, in accordance with our applicable criteria and policies.

"We understand that all of Uzbekistan's regions are under
indefinite COVID-19 related lockdowns. If we receive information
that we consider sufficient and of satisfactory quality, after the
country quarantine measures are lifted, or within 182 days of the
rating suspension, we will conduct a review and take a rating
action. However, failure to receive the requested information will
likely result in our withdrawal of the rating."

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
  Not Rated Action  
                          To      From
  Tashkent Oblast
   Issuer Credit Rating   NR   BB-/Stable/--

  NR--Not rated.




===========
S W E D E N
===========

STENA AB: Moody's Cuts CFR to B2, Outlook Revised to Stable
-----------------------------------------------------------
Moody's Investors Service has downgraded Stena AB's corporate
family rating to B2 from B1, its probability of default rating to
B2-PD from B1-PD and its senior unsecured notes rating to Caa1 from
B3. Furthermore, Moody's downgraded the backed senior secured notes
rating of subsidiary Stena International S.A. to B1 from Ba3. The
outlook was changed to stable from negative.

RATINGS RATIONALE

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. For Stena, the
effects are already being felt by Stena Line, where closed borders
in Europe has made passenger traffic impossible. Although cargo
traffic is still allowed, Moody's understands EBITDA will
significantly decrease during 2020. Furthermore, the collapse in
oil prices will mean that the anticipated recovery for offshore
drilling will instead turn out to be another year of negative
EBITDA as most of the company's vessels have no new assignments
after June/July. Although the very low oil price has translated to
spiking rates for Suezmax vessels, currently benefitting Stena
Bulk, the coronavirus's impact on global oil demand depend on how
long it takes until the outbreak is contained. Despite Stena's very
stable real estate business, Moody's views expected credit ratios
no longer commensurate with a B1 rating, also factoring in that the
rating was weakly positioned already prior to the virus outbreak
with a gross debt and net debt/EBITDA at 8.0x and 7.2x respectively
end of Q4 2019. Underpinning the rating action furthermore, Moody's
has revised its forecast for free cash flows, which it no longer
believes will reach break-even levels over the next quarters.

RATING OUTLOOK

Despite the very challenging macroeconomic environment, the stable
outlook is anchored in (1) Stena's historically very supportive
shareholder, the Olsson family, which historically has supported
the company by injecting liquidity through various actions and is
expected to remain supportive going forward; (2) good track record
of management through volatile industry environments; (3)
substantial amount of available liquidity that is more than
sufficient to meet expected weak operational performance over the
next 12 months and (4) expectations of peaking leverage in 2020
which should revert to current levels as Stena Line returns to
normal operations.

ESG CONSIDERATION

In terms of environmental, governance and social factors, Stena's
rating reflects the elevated environmental risk facing the shipping
sector. Although not currently a major concern due to record low
oil prices, the IMO2020 regulation which came into force 1 January
2020 may increase bunker costs for shipping companies initially
before they will be able to pass it through to shippers. Moody's
notes as positive that Stena ordered scrubbers for its tanker fleet
very early, and almost its entire fleet is using or will be using
scrubbers. For its ferry business, Stena Line, only a limited part
of its network will be affected as the majority of routes are
within Emission Control Areas (ECAs), were the maximum the allowed
sulfur content in bunker is 0,1% (IMO2020 stipulates a maximum of
0,5%).

LIQUIDITY

Stena's liquidity profile is solid, supported by SEK10.2 billion in
cash, short term investments and marketable securities as well as
SEK4.3 billion in availability under various RCFs end of December
2019. Moody's understands a large part of capex is not committed
and that the company has already taken actions to reduce what was
planned before the virus outbreak. For the remainder of 2020 (as of
March 31), the company has SEK2.5 billion of regular debt
amortizations to which the company has enough liquidity to cover.
Despite the current adverse market environment, Moody's foresees
the company being able to respect its covenants under its RCFs.

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

The ratings could be downgraded should Stena fail to bring leverage
towards 8.0x debt/EBITDA in the next 24 months, its free cash flow
remains meaningfully negative for a prolonged period and its
liquidity materially weakens from currently solid levels.
Furthermore, an FFO Interest coverage (FFO+Interest
expense)/Interest expense sustainably below 2x would also excerpt
negative ratings pressure.

Albeit currently unlikely, Moody's would consider an upgrade action
should Stena manage to reduce its gross adjusted debt/EBITDA below
7.0x on a sustainable basis, generate positive FCF, achieving an
FFO Interest coverage ratio above 3x and maintain a solid liquidity
profile.

PRINCIPAL METHODOLOGY

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

LIST OF AFFECTED RATINGS:

Downgrades:

Issuer: Stena AB

LT Corporate Family Rating, Downgraded to B2 from B1

Probability of Default Rating, Downgraded to B2-PD from B1-PD

Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1 from
B3

Issuer: Stena International S.A.

Backed Senior Secured Regular Bond/Debenture, Downgraded to B1 from
Ba3

Outlook Actions:

Issuer: Stena AB

Outlook, Changed to Stable from Negative

Issuer: Stena International S.A.

Outlook, Changed to Stable from Negative

COMPANY PROFILE

Stena AB (Stena) is one of the largest privately-owned groups in
Sweden (100% owned by the Olsson family). For the twelve months
ending 30 September 2019, the group generated consolidated turnover
of SEK34.5 billion ($3.6 billion) and EBITDA (ex IFRS 16) of SEK6.0
billion ($630 million). Stena is a holding company, which controls
the group's five business divisions (1) Stena Line, the group's
ferry operator; (2) Stena Drilling, the group's offshore drilling
company; (3) Shipping Operations (comprising Stena's RoRo, Bulk and
LNG operations, as well as Northern Marine, the fleet manager); (4)
Stena Property, the group's real estate company; and (5) Stena
Adactum, the group's investment arm. Stena Property and Stena
Adactum are outside of the restricted group, as defined by the
terms and conditions of the indentures governing Stena's bonds.



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

CATH KIDSTON: Closes 60 UK Stores, 900+ Jobs Affected
-----------------------------------------------------
Simon Foy at The Telegraph reports that more than 900 staff at Cath
Kidston are to be made redundant with immediate effect after the
retailer announced it was closing all 60 of its UK stores as part
of a rescue deal with its Hong Kong-based owner.

According to The Telegraph, the fashion label confirmed its UK
stores will not reopen after the coronavirus lockdown ends, with a
total of 908 staff being let go.  The firm said only 32 jobs would
be secured as part of the deal, The Telegraph relates.

The business will effectively become a digital-only retailer in the
UK, but will continue to trade through its wholesale and franchise
businesses around the world, which includes more than 100 stores,
The Telegraph discloses.



CNH INDUSTRIAL: Egan-Jones Withdraws BB- Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on April 8, 2020, withdrew it 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by CNH Industrial NV.

Headquartered in London, United Kingdom, CNH Industrial NV through
its brands, designs, produces and sells trucks, commercial
vehicles, buses, special vehicles, agricultural and construction
equipment, in addition to engines and transmissions for those
vehicles and engines for marine applications.


FINASTRA LTD: S&P Downgrades ICR to 'CCC+', Outlook Negative
------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
financial services software provider Finastra Ltd. to 'CCC+' from
'B-'. S&P also lowered its issue ratings on Finastra's debt.

Finastra's Q3 FY2020 results were weaker than expected, and the
COVID-19 pandemic will harm results for Q4 FY2020, with a potential
knock-on effect in FY2021.   Finastra's operating performance
faltered in Q3 FY2020, with adjusted revenue declining by about 3%
year-on-year. This stemmed from an approximate 12% decline in
services revenue and an approximate 3% decline in recurring product
revenue. Excluding one-off factors, adjusted recurring revenue
growth was a subdued 1% due to higher-than-expected attrition in
products for North American community markets.

Upfront product revenue was again strong in Q3 due to Loan IQ
upgrades, but a sizable portion of the sales were on a subscription
basis, meaning they were not immediately cash generative. This was
reflected in a net working capital inflow in Q3 that was about $70
million lower than expected.

S&P said, "We anticipate additional weakness in operating
performance and cash flow in Q4 FY2020 due to the COVID-19
pandemic. Our base case assumes adjusted revenue decline of about
10% year-on-year, driven by a sharp decline in nonrecurring
services revenue because consultants will be unable to carry out
billable work onsite, as well as decline in upfront product revenue
due to the postponement or cancelation of some deals. We also think
there could be a greater decline in the noncore cheques division as
retail activities sharply reduce. We expect cost savings of about
$20 million from short-term COVID-19 measures will partly offset
this decline, but adjusted EBITDA will still be weaker than we
expected in Q4 FY2020 due to additional nonrecurring costs--mostly
severance." This will burn cash in the short term, before enabling
Finastra to deliver cost savings of about $66 million, mostly in
FY2021.

Finastra's high leverage, low interest coverage, and cash burn
point to a capital structure that is potentially unsustainable over
the medium term.   S&P said, "We now expect Finastra to report an
overall 3%-4% decline in adjusted group revenue in FY2020 and an
approximate 8% decline in adjusted EBITDA after high nonrecurring
costs. This should translate into a very high adjusted debt to
EBITDA of above 12x excluding PECs--or above 14.5x total
leverage--and low EBITDA cash interest coverage of about 1.2x (or
1.3x excluding exceptional interest). Our adjusted EBITDA
calculation includes nonrecurring costs and expenses capitalized
research and development costs."

S&P said, "In addition, due to forecasted statutory net working
capital outflow of over $100 million, we expect negative FOCF of
$180 million-$200 million in FY2020. We view these weak credit
metrics as indicative of a capital structure that is potentially
unsustainable over the medium term absent a very significant
improvement in operating performance.

“Expected cash burn points to potential liquidity risk if
performance or collection is significantly weaker than our base
case.   Our expectation of cash burn over the next two to three
quarters points to potential liquidity risk. Although we assume in
our base case that liquidity sources will exceed uses over the next
six to 12 months, there is downside risk in the case of more
severe-than-expected short-term revenue decline and working capital
outflow.

"We think there could be further pressure on cash flow in the short
term from higher-than-expected working capital outflow if the
COVID-19 pandemic results in delayed receivables collections. We
view this risk as higher for smaller customers such as North
American community banks and credit unions, which contribute to
about 30% of Finastra's recurring revenue.

"That said, we think Finastra currently benefits from a significant
amount of liquidity sources with about $235 million in net
available cash as of Feb. 29, 2020, pro forma the full drawdown of
the revolving credit facility (RCF) in March 2020."

Significant cost-cutting actions should deliver substantial
savings, enabling Finastra to transition to positive FOCF in the
second half of FY2021.   Aside from core operating cost savings,
S&P assumes a reduction in capex by about $10 million, an improved
working capital profile thanks to measures to improve receivables
collections, and gradually diminishing nonrecurring costs.

S&P said, "We also anticipate that a return to revenue growth from
Q2 FY2021 onward could support cash generation. We base this on our
assumption of a reduced negative impact from the COVID-19 pandemic
on services and upfront product revenue, and stronger growth in
recurring revenue based on the company's strategy to focus on
higher growth products especially in corporate banking and
payments. That said, we note that the delays in customer
installations--as reflected in lower service revenue--over the next
couple of quarters, as well as potential delays in new customers
signing up for Finastra's products, could have a knock-on effect on
the company's revenue in FY2021. We therefore assume a slower
recovery in revenue compared with our previous base case.

"We forecast positive FOCF of about $40 million-$60 million in
FY2021, but still regard this as relatively minimal compared with
reported debt of about $7.05 billion.

"Our view of Finastra's business has not fundamentally changed.  
We still think the mission-critical nature of the company's
software to financial institutions supports its business risk
profile, as reflected by a high client retention rate of 97% in
FY2019, meaningful switching costs, and a relatively high recurring
revenue share--about 73% of core revenue. We also view the
continued shift to a subscription model as ultimately positive for
the visibility and predictability of cash flow, despite the
negative cash impact in the short term."

Environmental, social, and governance (ESG) factors relevant to the
rating action:

-- Health and safety. The COVID-19 pandemic directly harms
services revenue because consultants cannot carry out billable work
onsite.

The negative outlook reflects the potential for a downgrade if
Finastra's liquidity weakens significantly beyond S&P's base case,
or if a potential debt restructuring becomes a more likely
scenario.

S&P could lower our rating if short-term revenue decline is much
more severe than currently anticipated, or if working capital
outflow is significantly higher. This could stem from the delayed
collection of receivables in the context of the COVID-19 pandemic,
for example, leading to significant liquidity tightening.

S&P could also lower the rating if a potential debt restructuring
becomes a more likely scenario.

S&P said, "We could revise the outlook to stable if Finastra
manages to limit the extent of its cash burn in the short term, in
line with our base case. We would then expect to see a gradual
transition to positive FOCF on the back of its significant cost
cutting actions. We could also revise the outlook to stable if
Finastra receives liquidity support from its owner, Vista
Partners."


GKN HOLDINGS: Moody's Reviews Ba1 Sr. Notes Rating for Downgrade
----------------------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
Ba1 senior unsecured notes ratings of GKN Holdings Limited. GKN is
a British multinational automotive and aerospace components
manufacturer, which is owned by Melrose Industries plc.

RATINGS RATIONALE/FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS

GKN's bond ratings were solidly placed at the Ba1 rating after a
solid financial performance in 2019 and good restructuring progress
with operating margin improvements despite a challenging
environment, for example in Automotive. However, the Automotive and
Powder Metallurgy segments of Melrose, accounting for 48% of
Melrose's 2019 reported revenue, are affected by the disruption in
the auto sector with factories outside of China and Japan largely
closed. In the Aerospace segment, accounting for 35% of revenue,
factories are largely open but are running with reduced
requirements. There is also considerable uncertainty regarding the
demand evolution in both automotive and commercial aerospace end
markets in the coming months and also potential for longer term
implications, for example regarding commercial aircraft production
rates.

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 auto and
aerospace sectors (and issuers within other sectors that rely on
those sectors) have been some of the sectors most significantly
affected by the shock given sensitivity, ultimately, to consumer
demand and sentiment. More specifically, the weaknesses in the
company's credit profile, including the exposure ultimately to
final consumer demand for light vehicles and air travel have left
it vulnerable to shifts in market sentiment in these unprecedented
operating conditions and the companies remain 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. Its action
to place the ratings under review for downgrade reflects the impact
on GKN of the breadth and severity of the shock, and the broad
deterioration in credit quality it has triggered.

The review will consider (i) the severity and duration of the
outbreak's impact on the manufacturing operations of GKN and
Melrose and related financial implications, (ii) the impact on
demand particular from automotive and aerospace end markets and any
potential impact on the medium term demand outlook, for example
around aircraft production and deliveries, (iii) the impact of any
governmental action to support corporates and consumers in the main
end markets, and (iv) the impact of mitigating actions GKN and
Melrose may be taking. While the review will also take into account
the liquidity profile, Moody's currently considers that liquidity
is adequate taking into account the size of the available committed
revolving credit facility and the absence of any near-term debt
maturities. Moody's also positively notes the proactive covenant
waiver obtained by Melrose regarding its net leverage covenant in
this context, as well as focus to preserve cash by cutting the
final 2019 dividend and non-essential cost, restructuring and
capital expenditure. Moody's expects to conclude the review within
90 days.

GKN is fully owned by Melrose. While Moody's does not have a
corporate rating on Melrose, the parental guarantee provided by
Melrose and its disclosure as a publicly listed company enable
Moody's to continue to rate the GKN notes. The rating of the notes
originally issued by GKN Holdings now reflects Melrose's credit
quality. In 2019, GKN represented 83% of Melrose's reported revenue
and 77% of its adjusted operating income (before central costs).

Environmental considerations play a role for GKN, because its end
market exposure to auto and aerospace exposes it to the carbon
transition-related trends in these sectors. For example, the change
to electric vehicles requires different driveline solutions and
while the company has an offering in this regard (also considering
its recent cooperation with a technology provider) the market
position and pricing achieved in these newer and fast changing
markets may be different to its more established operations. Social
considerations also include general health & safety issues as a
manufacturer. Governance considerations include the limited track
record of Melrose running a company of this size, although it has
achieved good results in the last year. Moody's also notes that the
GKN acquisition was a hostile takeover and that GKN had corporate
governance issues in the months prior to the transaction. Melrose
has a track record of buying, restructuring and selling assets, but
this strategy also carries significant execution risks at times and
may provide for a changing business profile and related credit
strength.

Previously, Moody's has stated that positive pressure on the
ratings would require an established track record of Melrose as
GKN's owners, the maintenance of a strong liquidity profile, and
clear visibility that Melrose can further improve its credit
strength by maintaining its leverage at a level of below 2.5x debt/
EBITDA (Moody's adjusted) through the cycle (3.5x at December
2019), EBITA margins (Moody's adjusted) consistently exceeding 9.0%
(9.5% in 2019), both on a sustainable basis. It would also require
a financial policy, which supports an investment-grade rating.

Conversely, Moody's has previously stated that downward pressure
would arise upon a sustainable deterioration of earnings and cash
flow. Such a development would be exemplified by negative free cash
flow, an increase in leverage to more than 3.75x debt/EBITDA, or
EBITA margin falling below 7.0% (both Moody's adjusted). Likewise,
larger than expected shareholder distributions or a weakening of
liquidity could lead to negative pressure.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: GKN Holdings Limited

BACKED Senior Unsecured Regular Bond/Debenture, Placed on Review
for Downgrade, currently Ba1

Outlook Actions:

Issuer: GKN Holdings Limited

Outlook, Changed to Rating Under Review from Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Manufacturing
Methodology published in March 2020.

Headquartered in the UK, GKN is a global tier one supplier to the
automotive and aerospace industry with operations in more than 35
countries. The group operates through three main divisions:
Automotive (46% of 2019 revenues), Aerospace (42%), and Powder
Metallurgy (12%). The Automotive driveline and Powder metallurgy
activities primarily address the automotive industry. Aerospace
supplies the commercial and military aircraft market. In 2019,
GKN's main activities, reported under Melrose's business divisions
Automotive, Aerospace and Powder Metallurgy, recorded revenues of
GBP9.1 billion. Since June 2018, GKN has been a fully-owned
subsidiary of Melrose Industries plc (Melrose) and accounts for
approximately 83% of Melrose's 2019 sales of GBP11.0 billion.


LE PAIN QUOTIDIEN: UK Arm at Risk of Falling Into Administration
----------------------------------------------------------------
Alice Hancock at The Financial Times reports that the UK arm of the
Belgian-owned bakery chain Le Pain Quotidien is at risk of falling
into administration within days, putting 500 jobs under threat
unless a buyer is found this week.

The restructuring experts Alvarez & Marsal are running an emergency
sale of the 26-site cafe business with the deadline for bids [last]
April 15, the FT relays, citing people with knowledge of the
process.

According to the FT, if no buyer is found during the sale process,
known as Project Sunburst according to one person, administrators
will be appointed.

Le Pain Quotidien is the latest in a string of struggling UK high
street restaurant businesses to have been brought close to collapse
by the coronavirus crisis, the FT discloses.


MATALAN: S&P Lowers ICR to 'CCC', Outlook Negative
--------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Matalan by two notches to 'CCC' from 'B-'. The outlook is
negative.

S&P said, "We are also lowering our issue ratings on the first-lien
secured debt and second-lien secured debt from 'B-' to 'CCC' and
from 'CCC' to 'CC', respectively. At the same time, we are
affirming our recovery ratings on the first-lien secured debt and
second-lien secured debt at '3' (50%-70%; rounded estimate: 65%)
and '6' (rounded estimate: 0%)."

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 about midyear, and we are using this assumption in assessing
the economic and credit implications. We believe the measures
adopted to contain COVID-19 have pushed the global economy into
recession. We consider that the restrictions imposed by the U.K.
government on out-of-home activities leave Matalan susceptible to
further downside risks to earnings and cash flows, especially if
the pandemic is not contained by mid-2020. As the situation
evolves, we will update our assumptions and estimates
accordingly."

Store closures and feeble consumer demand will have a dramatic
effect on the company's topline, with a gradual recovery only in
the second half of the year.

On March 24, 2020, Matalan announced that it had closed all of its
232 stores, complying with the government-mandated shutdown of
non-essential businesses. Although the online store remains open,
this channel accounts for only about 12% of annual revenues and
will therefore only marginally benefit the company's topline amid
depressed consumer demand for discretionary items. Moreover, its
warehouse capacity is reduced because of staff going on voluntary
furlough to help observe social distancing measures. S&P said,
"Therefore, we anticipate that Matalan's revenues will drop
significantly between March and May, with a gradual recovery mostly
in the second half of the year. We estimate that Matalan's sales
will decline by 25%-30% in the fiscal year (FY) ending Feb. 28,
2021, before rebounding in FY2022."

Despite cost-saving and cash-preservation measures, earnings and
cash flows will likely turn negative, resulting in substantial
releveraging and weak credit measures.

S&P said, "We expect the company to respond to the decline in sales
with moderate cost cutting and possibly negotiating rent deferrals
with its landlords. In addition, we believe Matalan will take
advantage of a number of initiatives announced by the U.K.
government aimed at mitigating the effect of COVID-19 on the
economy. These include the government's intention to pay up to 80%
of workers' salary in the most affected sectors (which may include
part of Matalan's workforce) for at least three months, a 12-month
business-rates holiday, and deferral of VAT payments to 2021.

"All things considered, we believe these overall cost reduction
measures will generate savings of about GBP 50 million-GBP 70
million in FY2021. However, this amount will not be enough to
compensate for the expected decline in sales, in our view. We
forecast reported EBITDA--excluding the impact of International
Financial Reporting Standard (IFRS) 16--will decline from GBP 80
million expected for FY2020 to possibly negative EBITDA in FY2021
and result in substantially negative reported free operating cash
flows (FOCF). We foresee a more than GBP 50 million outflow,
including the effect of the relatively high interest bill (about
GBP 30 million-GBP 35 million per year excluding leases). We
believe COVID-19-related effects will inevitably result in
substantial releveraging with adjusted debt to EBITDA increasing
significantly above 10x in FY2021, and remaining close to 8x even
after the expected rebound in performance in FY2022. In our view,
this will render Matalan's capital structure unsustainable, with an
increased risk of a distressed debt exchange or a conventional
default over the next 12 months."

Despite the absence of near-term debt maturity, store closures and
fixed costs will cause a substantial cash drag, increasing the risk
of a liquidity shortfall.

Store closures and weak expected online trading will deprive the
company of most of its inflows for several weeks. S&P said, "As a
result, we believe Matalan can only count on its existing liquidity
reserves to cover its cash charges over the next few weeks. We
estimate the company held about GBP 60 million in cash at the end
of February 2020. On April 11, 2020, Matalan announced that it has
fully drawn its GBP 50 million RCF and is exploring options to
raise additional short-term funding. Matalan is subject to a
financial maintenance covenant that springs upon drawing 35% (GBP
17.5 million) of the total RCF commitment. Compliance with the
covenant is tested on the last day of each quarter and, if
breached, could constitute an event of default and accelerate the
repayment of the whole capital structure (unless cured or waived).

"We anticipate that the company's operations could absorb between
GBP 50 million-GBP 90 million in cash over the next 12 months,
including in capital expenditure (capex) and interest payments.
Therefore, absent any unforeseen favorable economic developments or
additional liquidity sources, Matalan might not have sufficient
resources to meet its future payments."

Environmental, social and governance (ESG) factors relative to the
rating action:

-- Health and safety related to COVID-19.

The negative outlook reflects the heightened risk of default or
distressed exchange because of Matalan's extremely subdued
performance in the next three months, before only a slow pickup in
the third quarter, resulting in a possible liquidity shortfall.

S&P said, "We could lower our rating on Matalan if we believe the
company is at risk of a distressed exchange, debt restructuring, or
a conventional default within the next six months. This could occur
if pandemic-related disruption further weakens its operating
performance, the sustainability of its capital structure, or its
liquidity, increasing the chances of a near-term payment crisis.

"We could raise the rating or revise the outlook to stable if cash
flow generation is better than we forecast, reducing the drag on
liquidity and the risk of a near-term payment crisis or of the
company announcing a transaction that we could view as a distressed
exchange. Such a scenario would likely entail a relaxation of
social-distancing measures and some evidence that discretionary
consumer spending will rebound sooner. At that time, we would
assess the group's ability to restore its earnings, cash flows, and
reduce leverage while maintaining sufficient liquidity."


RICHMOND UK: S&P Downgrades ICR to 'CCC+', Outlook Negative
-----------------------------------------------------------
S&P Global Ratings said that the closures of holiday parks across
Europe due to COVID-19 containment measures will be detrimental for
the operating performance of European holiday park operators.

S&P is therefore taking the following actions:

-- S&P is downgrading Richmond UK Holdco Ltd. (Parkdean Resorts)
to 'CCC+' from 'B-', and assigning a negative outlook.

-- S&P is downgrading Awaze (vacation rentals and holiday resorts)
to 'B-' from 'B', and assigning a negative outlook.

-- S&P is placing its 'B' ratings on Koos Holding Cooperatief U.A.
(Roompot) on CreditWatch with negative implications.

A prolonged shutdown of holiday parks could materially constrain
the credit quality of Parkdean Resorts, Awaze, and Roompot.  Over
the past few weeks, the number of COVID-19 cases has increased
markedly across Europe, with several countries introducing or
moving toward lockdowns and all but basic societal functions placed
on hold. This has forced holiday park operators to temporary close
or delay the annual opening of their establishments. S&P Global
Ratings' base case is that COVID-19 will likely peak globally
between June and August 2020, meaning that European holiday parks
will be closed until June 2020. While these parks may somewhat
benefit from staycation trends during the prime summer months,
risks remain if the lockdowns are extended. As such, although S&P
believes Parkdean Resorts, Awaze, and Roompot do not face any
imminent liquidity risk over the next few months, a prolonged
shutdown could substantial weigh on their credit quality and
liquidity.

Parkdean Resorts' already-high debt, alongside potential liquidity
constraints, questions the sustainability of the group's capital
structure.  The downgrade of Parkdean Resorts primarily reflects
the group's very high leverage, well above 9.0x, before facing
COVID-19 fallout. In our previous base case, the long-term
sustainability of the group hinged on a marked improvement in
operating performance, both in terms of revenue growth and in
operating margins in 2020. This has been jeopardized by the park
closures and by a further decline in cash flows, which translates
into a likely unsustainable capital structure. While advance
bookings is a feature that usually enhances the group's liquidity
in the short term, the rise in request for refunds given the
COVID-19-related cancellations is likely to squeeze Parkdean
Resorts' liquidity in the medium to long run, assuming the bookings
remain subdued over a prolonged period.

Awaze's credit metrics will remain stretched in 2020 and flag the
risk of an unsustainable capital structure.   S&P said, "The
downgrade of Awaze reflects our assumptions that the group will no
longer see a material improvement in its credit metrics this year.
Although we had expected that the benefits of prior years'
restructuring efforts would materialize this year, we now
anticipate a revenue decline of 30% in 2020 that will result in
leverage staying above 9.0x." Awaze has yet to complete any of the
planned acquisitions for which it raised EUR130 million additional
debt in the latter part of 2019. This add-on will provide crucial
liquidity support in the coming months, but the concomitant
additional debt will increase the likelihood of an unsustainable
capital structure.

S&P said, "Roompot is relatively better placed, but we need to
assess its medium-term resources to withstand the potential
downside to our base case.  The CreditWatch reflects credit
distresses stemming from the temporary closure of several of
Roompot's parks in the Netherlands and in Germany. We estimate
Roompot's available liquidity should sufficiently cover its needs
over the coming few months. Furthermore, given the severity of the
COVID-19 situation, the group announced several cost-cutting
measures to protect cash flows and liquidity through 2020. However,
we acknowledge the uncertainty around the rate of spread and timing
of the virus' peak increases the risk to our forecast, particularly
if parks cannot reopen during the prime summer months. We plan to
resolve the CreditWatch once we have assessed the impact of
COVID-19 on Roompot's capital structure, liquidity, and financial
performance and position.

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 about
midyear, and we are using this assumption in assessing the economic
and credit implications. We believe the measures adopted to contain
COVID-19 have pushed the global economy into recession. As the
situation evolves, we will update our assumptions and estimates
accordingly."

Environmental, social, and governance (ESG) factors relevant to the
rating action:

-- Health and safety

  Ratings List

  Awaze Ltd.

  Downgraded  
                                 To          From
  Awaze Ltd.
   Issuer Credit Rating    B-/Negative/--   B/Negative/--

  Koos Holding Cooperatief U.A.

  CreditWatch Action  
                                 To           From

  Koos Holding Cooperatief U.A.
   Issuer Credit Rating    B/Watch Neg/--    B/Stable/--

  Richmond UK Holdco Ltd.
  Downgraded  
                                 To            From
  Richmond UK Holdco Ltd.
   Issuer Credit Rating    CCC+/Negative/--  B-/Negative/--

  N.B. This list does not include all ratings affected.


SHANKLY HOTEL: Coronavirus Pandemic Prompts Administration
----------------------------------------------------------
Business Sale reports that Liverpool's well-known Shankly Hotel,
run by Lawrence Kenwright's Signature Living Group, has gone into
administration, citing the pressure put on its business by the
coronavirus pandemic.

The 83-bedroom hotel, named after legendary Liverpool FC manager
Bill Shankly, was put on the market for GBP40 million last year,
but a deal did not materialize, Business Sale notes.

Matthew Ingram -- matthew.ingram@duffandphelps.com -- and Michael
Lennon -- Michael.Lennon@duffandphelps.com -- of Duff & Phelps have
now been appointed joint administrators of the hotel's management
company Signature Shankly, saying they will work with directors to
explore "the future trading outlook of the hotel", Business Sale
relates.

According to Business Sale, joint administrator Michael Lennon said
"The hospitality industry as a whole has seen increased pressures
in recent years and has now been instantly hit incredibly hard by
the Covid-19 pandemic.  As a result, the Shankly is temporarily
closed, Management's expectation is that once the lockdown is
lifted trading will continue as normal."

Signature Shankly's last full accounts were made up to the year
ending March 31 2018, Business Sale discloses.  In that period, the
company registered a loss of GBP568,343, down from GBP663,115
profit the year before, Business Sale states.  At that time, the
company had fixed assets of GBP2.7 million, current assets of
GBP11.1 million and net assets of GBP1.6 million, Business Sale
relays.

Shankly Hotel, established in 2015, has 59 aparthotel-style
bedrooms, as well as a bar and restaurant, two event suites, two
rooftop terraces and an underground car park.


SIGNATURE AVIATION: S&P Alters Outlook to Neg. & Affirms 'BB' ICR
-----------------------------------------------------------------
S&P Global Ratings revising its outlook on U.K.-based Signature
Aviation PLC to negative from stable and affirmed its 'BB' issuer
credit rating and its 'BB' issue rating on Signature Aviation
senior unsecured notes. The '3' recovery rating is unaffected.

The negative outlook indicates that S&P expects demand for
Signature Aviation's services to decline in 2020 due to mandatory
and self-imposed travel restrictions.

Signature Aviation operates the world's largest fixed-based
operation (FBO) network in the business and general aviation (B&GA)
market. It has a meaningful concentration on North America, where
it generates over 85% of its revenue. The company's offerings
include jet fueling, ground handling, hangarage, passenger and
pilot services and amenities, jet fuel sales, and other ground
support services. Demand correlates directly with flight activity,
primarily in the U.S. S&P anticipates that business prospects for
FBOs will be constrained by the:

-- Growing number of U.S. cities and states enacting restrictions
on public gatherings to limit the spread of COVID-19;

-- Widespread cancellation of popular leisure and sporting events
that typically support demand for private air travel; and

-- Self-imposed restrictions on nonessential travel and social
distancing.

S&P said, "The level of general aviation tends to be closely
correlated with GDP growth and our economists expect the U.S.
economy to enter a recession in 2020. Flying activity across the
U.S. FBO network was normal until mid-March 2020, and we even saw a
temporary uptick in demand for private flights when commercial
planes started to withdraw capacities.

"Although flight activity will plunge over the next couple of
months, we expect nonfuel revenue, which accounts for approximately
one-third of Signature's consolidated revenue, to show more
resilience. This should help to partly offset the impact of the
pandemic. Nonfuel revenue predominately relates to real estate and
maintenance, and the engine repair and overhaul (ERO) segment,
which provides engine services to global B&GA operators, the
rotorcraft market, and regional airline fleets. All in all, we
forecast that Signature's consolidated revenue could decline by as
much as 15% in 2020.

"We expect Signature Aviation to take decisive action to curtail
spending and preserve cash amid depressed demand conditions."

About 75% of Signature's cost is flexible. Management took
immediate action to curb some fixed costs, such as closely matching
labor cost to flight activity and suspending variable pay-plans
across the group. Furthermore, S&P anticipates that Signature will
maintain a prudent approach to overall spending. Maintaining the
flexibility to reduce nonessential capital expenditure (capex) and
discretionary investments will be key to preserving cash.
Signature's public commitment to maintaining its debt leverage at
2.5x-3.0x (which translates into S&P Global Ratings-adjusted debt
to EBITDA of about 4.0x-4.5x), implies the company's readiness to
take action to preserve its leverage levels, where it can. For
example, Signature suspended its final 2019 dividend and linked
future distributions to the strength of both trading conditions and
prospects and the leverage ratio.

S&P said, "We see no imminent liquidity risks.Signature has a
substantial liquidity buffer to withstand the pressure on cash
flows in 2020. The liquidity cushion of about $431 million, as of
March-end 2020, comprises unrestricted cash and available undrawn
funds in its syndicated loan facility, complemented by free
operating cash flows (FOCF). The company prepaid its $450 million
acquisition facility due in 2020 and now has no maturities before
2025. Signature is also in process of selling its ERO business. We
expect it will use the proceeds in line with its capital allocation
policy, which takes into account leverage levels."

Environmental, social, and governance (ESG) factors relevant to the
rating action:

-- Health and safety

S&P said "The negative outlook captures the possibility of a
downgrade over the next 12 months if we no longer expect COVID-19
to be contained in the second half of 2020. This would prevent the
start of a recovery in demand for private aviation and thus mean
credit measures that are worse than our current forecast. The
outlook also incorporates the high degree of uncertainty in our
updated base-case assumptions, which are subject to revision in
response to developments in COVID-19 containment and industry
demand."

S&P could lower the ratings if:

-- The prolonged weakness in jet aviation demand results in
Signature being unable to restore its adjusted funds from
operations (FFO) to debt to above 15%;

-- The company generates negative FOCF that materially erodes its
available liquidity; or

-- Once the demand rebounded, the management prioritizes
shareholder distributions, rather than leverage reduction,
preventing adjusted FFO to debt from showing a swift recovery to a
level commensurate with the rating.

To revise the outlook to stable, S&P would need to be confident
that demand conditions are normalizing and the recovery robust
enough to enable Signature to strengthen its adjusted FFO to debt
to above 15% and maintain adequate liquidity.


VIRGIN ATLANTIC: Told to Resubmit Coronavirus Bailout Proposal
--------------------------------------------------------------
Tanya Powley, Daniel Thomas and Sebastian Payne at The Financial
Times report that Virgin Atlantic has been told to resubmit its
proposal for a GBP500 million coronavirus bailout package after the
UK government was left unimpressed with its initial bid.

According to the FT, the carrier is the first UK airline to seek a
bespoke support package from the government as it battles one of
the worst crises in the history of aviation with many countries
having restricted air travel to contain the disease.

However, Virgin Atlantic's proposal for a GBP500 million package of
commercial loans and guarantees has failed to impress the
government, the FT discloses.  One person familiar with the matter
said the airline had not done enough to show it had explored other
options to bolster cash before asking for state aid, the FT notes.


Virgin Atlantic was asked to resubmit its bid by the Treasury,
after the department was left "unimpressed by the initial bid",
according to one government official, the FT relates.

Virgin Atlantic on April 17 told the FT it had this week appointed
the investment bank Houlihan Lokey to assist the process of
securing private sector funding.

Morgan Stanley has been hired by the UK government to advise on
Virgin Atlantic's request for a package of financial support, the
FT discloses.  Both Rothschild and EY had previously been brought
in to help with any potential airline state aid, the FT relays.

The request by the government for Virgin Atlantic to submit an
improved proposal is likely to cause further delay to any potential
bailout offer, the FT states.  The carrier submitted its initial
bid at the beginning of April, the FT recounts.

One person familiar with the matter, as cited by the FT, said
concerns had also been expressed within the government that Virgin
Atlantic's plan did not fully take into account the weaker demand
expected in the aviation market following the pandemic.


[*] UK: Number of Companies Ceasing Trading Up in March 2020
------------------------------------------------------------
William Schomberg at Reuters reports that the number of British
companies ceasing trading jumped in March in a potential early sign
of the impact of the coronavirus crisis on the country's economy,
according to academic research published on April 20.

According to Reuters, analysis from the Enterprise Research Centre
-- led by staff at the University of Warwick and Aston University
in central England -- showed a 70% jump in company dissolutions to
just over 21,000 in March 2020 compared with the same month a year
before.

Compared with February, the increase was just over 19%, Reuters
discloses.

Academics at the ERC said further analysis was needed to explore
the trends as the process for dissolving a company in Britain can
take months, suggesting worries about the economy and Brexit might
have influenced the figures before the coronavirus crisis deepened
in Britain in March, Reuters relates.



                           *********


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.

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