---

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

                          E U R O P E

          Tuesday, April 28, 2020, Vol. 21, No. 85

                           Headlines



F R A N C E

AIR FRANCE-KLM: Obtains EUR9 Billion in Government Aid
NOVARTEX SAS: S&P Downgrades ICR to 'CCC-', Outlook Negative
STELLAGROUP: S&P Alters Outlook to Negative & Affirms 'B' Rating


G E R M A N Y

CONDOR: Germany, Hesse Agree to Provide EUR550-Mil. Loan
SPEEDSTER BIDCO: S&P Assigns 'B-' Long-Term ICR, Outlook Stable


I C E L A N D

LBI EHF: EUR540MM Bank Debt Trades at 82% Discount


I R E L A N D

ADIENT PLC: S&P Rates New Sr. Sec. Notes 'B+', On Watch Negative


I T A L Y

LIMA CORPORATE: S&P Downgrades ICR to 'B-', Outlook Stable


L U X E M B O U R G

LSF10 EDILIANS: S&P Alters Outlook ot Negative & Affirms 'B' Rating


N O R W A Y

NORWEGIAN AIR: New Restructuring Law May Help Save Business


P O L A N D

ZAKLADY MIESNE: Cedrob Seeks Approval of Sale Condition Changes


R U S S I A

ETALON LENSPETSSMU: S&P Places 'B' Rating on CreditWatch Negative
PIK GROUP: S&P Alters Outlook to Stable & Affirms 'B+' ICR
SETL GROUP: S&P Affirms B+/B Ratings, Outlook Stable


S P A I N

JOYE MEDIA: S&P Lowers ICR to 'B' on COVID-19 Impact on Earnings
LSFX FLAVUM: S&P Alters Outlook to Negative & Affirms 'B' ICR


S W E D E N

PERSTORP HOLDING: S&P Downgrades ICR to 'B-' on Weakened Demand


U N I T E D   K I N G D O M

NMC HEALTH: Intends to Delist Shares from London Stock Exchange
SYNLAB BONDCO: S&P Alters Outlook to Negative & Affirms 'B+' ICR
VALARIS PLC: S&P Downgrades ICR to 'CCC-', Outlook Negative
[*] UK: Start-Ups May Get Gov't Lifeline as Part of Rescue Plan


X X X X X X X X

[*] Moody's: More Companies in Crossrover Zone Amid Pandemic
[*] Unparallelled Global Recession Underway, Fitch Says

                           - - - - -


===========
F R A N C E
===========

AIR FRANCE-KLM: Obtains EUR9 Billion in Government Aid
------------------------------------------------------
BBC News reports that Air France-KLM has secured at least EUR9
billion (GBP7.9 billion; US$9.7 billion) in government aid, as the
Franco-Dutch airline group struggles to stay afloat because of the
coronavirus outbreak.

According to BBC, the French authorities said Air France would get
EUR3 billion in loans and another EUR4 billion in state-guaranteed
funds.

Meanwhile, the Dutch government said it was preparing between EUR2
billion and EUR4 billion in aid to KLM, BBC relates.

Earlier this year, Air France-KLM estimated the outbreak would cost
the group between EUR150 million and EUR200 million in
February-April, BBC recounts.

Company Chief Executive Ben Smith warned on April 24 that the
government aid was "not a blank cheque" and would require tough
action on costs and performance, Reuters discloses.

With a fleet of 550 aircraft, it covers 312 destinations in 116
countries around the world.  In 2018, Air France-KLM's passenger
traffic exceeded 100 million.


NOVARTEX SAS: S&P Downgrades ICR to 'CCC-', Outlook Negative
------------------------------------------------------------
S&P Global Ratings lowered to 'CCC-' from 'B-' its issuer credit
rating on Novartex SAS, the parent of French apparel and footwear
retailer Vivarte.

The downgrade follows the start of Vivarte's safeguard procedure
for La Halle due to the subsidiary's rapid earnings and liquidity
deterioration.

The downgrade follows Vivarte's recent announcement that its
subsidiary La Halle, representing about 60% of the group's total
sales, has filed a request for a safeguard procedure with the
French courts. Vivarte's other subsidiaries and banners were not
included. This follows the closure of all Vivarte's stores due to
the public health measures to contain the spread of COVID-19,
including in France, where the group derives more than 90% of its
sales. Consequently, Vivarte estimates La Halle will lose revenue
of about EUR106 million between March 15, 2020, the beginning of
the lockdown, and May 11, 2020. This loss, regardless of a
potential reopening and recovery prospects, exacerbates the group's
low liquidity and inability to get additional state-guaranteed
funding and impedes La Halle from paying suppliers or landlords
over the next few months.

Despite the absence of financial debt, S&P expects the rapid
liquidity deterioration will increase the risk of insolvency for
Vivarte.

Although the company has enacted measures to limit cash burning in
the absence of inflows--such as achieving more favourable supplier
payment terms, activating partial unemployment solutions, and
seeking rent relief--the group's other banners will have materially
less liquidity. If the safeguard were accepted for La Halle in line
with the group's expectations, Vivarte would only count on its
existing liquidity--EUR75 million of cash on the balance sheet at
end-March 2020--to cover the following months' expenses at its
remaining banners. Without a positive economic development or a
liquidity injection, S&P deems the risk of a liquidity shortfall
very high over the next few months. Furthermore, S&P believes the
group's decision to let one of its main banners file for safeguard
is likely to hurt its reputation on the market and may trigger
requests of immediate payments from suppliers and landlords tied to
the remaining brands, heightening event risk and, in particular,
insolvency risk.

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

-- Health and safety

S&P said, "The negative outlook reflects the possibility of a
downgrade if we believed the group was facing either a liquidity
crisis or an insolvency event at the parent's level.

"We could lower our rating if we believed Vivarte was on the brink
of insolvency or similar procedures over the next six months. This
could occur if the group's operating performance and liquidity
position erodes further, increasing the likelihood of a near-term
payment crisis or a safeguard procedure at the Vivarte level.

"We could raise the rating or revise the outlook to stable if the
group's earnings resumed such that cash flow becomes better than we
expect, reducing the drag on liquidity and the risk of a near-term
payment crisis. Such a scenario would likely hinge on confidence
that discretionary consumer spending will rebound on the back of
eased social distancing measures. At that time, we would assess the
group's ability to raise profitability and earnings while
maintaining sufficient liquidity."

Vivarte is a French apparel and footwear retailer, operating in the
'Boutique brands' (Caroll and Minelli) and out-of-town stores
segment (La Halle footwear and apparel). The group had revenue of
about EUR1.2 billion as of August 2019. It is among the largest
apparel and footwear retailers in Europe, with the majority of its
presence in France.


STELLAGROUP: S&P Alters Outlook to Negative & Affirms 'B' Rating
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Stellagroup to negative
from stable, and affirmed its 'B' long-term rating on the company.

Stellagroup closed its French manufacturing sites in mid-March
2020.   Orders stopped after the French government's lockdown
announcement. Its small U.K. plants also closed in late March.
Positively, Stellagroup's manufacturing sites in the Netherlands
and Germany (about 40% of the group sales) are operational and
still generating sales and operating cash flows. In our view, this
helps to mitigate the short-term negative impact. S&P Global
Ratings understands that the French operations are gradually
reopening from mid-April and are resuming production, although with
a limited order book.

S&P said, "We expect adjusted debt to EBITDA to peak at 8x in 2020,
before returning to about 6.5x next year.   This is based on our
assumption that EBITDA will decline by no more than 15%-20% in
2020, with most of the impact happening in the second quarter of
the year. In our view, recovery of demand in the second part of the
year will be key for the credit metrics. Our base case also
considers an interest coverage ratio of above 2.5x. Our debt
adjustments include the EUR56 million payment-in-kind (PIK)
instrument held by the noncontrolling sponsor Intermediate Capital
Group, and do not include the cash holdings.

"We still forecast positive free operating cash flow of more than
EUR10 million for 2020.   Capital expenditure (capex) has been
postponed until the situation stabilizes. We anticipate that capex
will not exceed EUR10 million in 2020.

"Liquidity remains adequate, in our view.   The ratio of liquidity
sources to uses is over 3.0x by our estimate. The company drew its
EUR60 million revolving credit facility (RCF) in April 2020, and
now has more than EUR100 million of cash on its balance sheet. We
understand that this is a precautionary measure and that the
company intends to repay its RCF once the situation stabilizes. We
acknowledge Stellagroup's variable cost structure and the fact that
the company already benefits from the French government's measures
to support staff costs during the COVID-19 outbreak. However, we
will monitor closely the company liquidity position in the coming
quarters.

"We acknowledge a high degree of uncertainty about the rate of
spread and peak of the coronavirus outbreak.   Some government
authorities estimate the pandemic will peak 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.

"The negative outlook reflects the risks that the economic impact
from COVID-19 could be more pronounced that we anticipate in our
base case, leading to a further weakening of the credit metrics.

"We could lower the ratings if demand were to remain very low in
the second half of the year and in early 2021 due to the COVID-19
outbreak, which would result in a much weaker operating performance
and adjusted debt to EBITDA sustainably above 6.5x. Under this
scenario, free operating cash flow (FOCF) would be limited and
liquidity pressure could arise.

"We could revise the outlook to stable if we observed a swift
recovery in Stellagroup's performance and continuous solid FOCF
generation in the next 12 months. A stable outlook would require
Stellagroup to maintain an adequate liquidity position."




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

CONDOR: Germany, Hesse Agree to Provide EUR550-Mil. Loan
--------------------------------------------------------
Thomas Seythal at Reuters reports that the German government and
the federal state of Hesse have agreed to provide Condor with loans
worth EUR550 million (US$596.31 million), the economy minister said
on April 27, after the owner of Poland's LOT pulled out of a deal
to buy the airline.

Condor said in a separate statement that it would receive a loan of
EUR294 million as coronavirus aid and an additional EUR256 million
to completely refinance a bridging loan it received after the
collapse of parent company Thomas Cook, Reuters relates.

According to Reuters, with planes unable to fly because of travel
restrictions, Condor grounded its fleet and called for state aid.



SPEEDSTER BIDCO: S&P Assigns 'B-' Long-Term ICR, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings assigned a 'B-' long-term issuer credit rating
to AutoScout24's parent company, Speedster Bidco GmbH. At the same
time, S&P assigned its 'B-' issue rating and '3(60%)' recovery
rating to the company's first-lien facilities and its 'CCC' issue
rating and '6(0%)' recovery rating to the company's second-lien
term loan.

S&P's 'B-' rating reflects AS24's highly leveraged capital
structure after the acquisition by the financial sponsor, H&F, with
delayed deleveraging prospects due to the impact of the novel
coronavirus on earnings growth.

H&F completed its acquisition of AS24 from Scout24 AG on April 1,
2020. The final capital structure was in line with the one
initially presented, consisting of EUR1.9 billion equity
contribution and EUR1.1 billion of debt including:

-- A revolving credit facility (RCF) of EUR50 million with
interest margin 300 basis points (bps) over Euribor due in
September 2026;

-- A term loan of EUR875 million with interest margin 325 bps over
Euribor due in March 2027; and

-- A second-lien term loan of EUR225 million with interest margin
of 625 bps over Euribor due in March 2028.

S&P said, "We also note the presence in the group structure of the
EUR1.9 billion equity injection from H&F, which mostly consists of
preferred equity certificates, that we treat as equity-like in line
with our non-common equity criteria, and hence exclude from our
adjusted debt and credit metrics calculations. In addition, there
are shareholder loans (SHLs), most of which we view as debt-like
obligations and include in our debt and credit ratio calculations.

"We anticipate that S&P Global Ratings-adjusted debt to EBITDA will
be elevated in 2020, and exceed our initial expectation.  We
forecast leverage above 12x in 2020, exceeding our initial
expectation of 8.7x-9.2x (excluding SHLs and 12 months of pro-forma
performance contribution of AS24 and FinanceScout24 [FS24])
outlined in our February 2020 publication. AS24's deleveraging path
will include mainly absolute growth of EBITDA starting from 2021,
as we believe that 2020 EBITDA will be negatively affected by the
COVID-19 pandemic. Nevertheless, we believe that the
subscription-based, asset-light business model should support the
company's operating performance and a sound recovery after the
virus is contained. We think positive FOCF generation, supported by
EBITDA, should result in S&P Global Ratings-adjusted debt to EBITDA
improving to 9.3x-9.8x including SHLs (7.9x-8.4x excluding SHL) in
2021. Despite the expected deleveraging from 2021, we view the
EUR1.1 billion quantum of cash-paying debt as very high.

"Europe's COVID-19 pandemic will weigh negatively on AS24's
performance and credit metrics in 2020, although we expect them to
improve in 2021.   We understand that the European used car
markets' and car dealerships' activity have declined significantly
since March 2020 since the COVID-19 pandemic and lockdowns in many
European countries, including AS24's largest markets of Germany and
Italy. We now project that the group's pro-forma revenue in 2020
will decline by 12%-17% in 2020 versus 2019. The revenue
contraction mainly reflects a negative impact of discounts to
AS24's customers and a drop in advertising-related revenue amid the
weak macroeconomic environment in 2020. In our view, AS24 can
partially offset the negative impact from the lower revenue on
earnings generation by cutting costs (mainly personnel and
marketing costs). That said we expect pro-forma reported EBITDA in
2020 to be significantly below our initial expectation of more than
EUR127 million (pro forma 12 months contribution in 2020).
Therefore there is a high degree of uncertainty surrounding the
timeline for recovery once the virus is contained. Our current base
case assumes that the virus will wane by mid-2020, and the group's
operations will start rebounding from that point and AS24 will
sustain its customer base and its strong market standing.

"The relatively small size of operations and limited
diversification weigh on the rating.   Albeit growing, we view the
size of AS24's operations as relatively small (revenue of EUR213
million for the 12 months ended Sept. 30, 2019) in the context of
the online classifieds industry and compared with rated media
peers. We also view its limited diversification across business
lines as a constraining factor, as AS24 is a pure car classifieds
platform."

Potentially increasing competition from other classifieds platforms
could threaten AS24's competitive standing and put it under pricing
pressure.   The online classified ad market is very competitive,
and AS24's market position could be at risk if new or existing
players backed by well-capitalized parent companies adopt
aggressive tactics. This would include offering car classified ads
for free or at significantly lower prices than AS24's to attract
additional traffic, listings, and customers, thereby gaining
traction in the respective markets. In such a situation, AS24 might
be forced to increase its marketing spending or reduce its prices,
thus negatively affecting its profitability. That said, over the
past two years the leadership situation in AS24's markets remained
relatively stable, supported by the company's growing number of
listings, increasing traffic, and stable customer base. For
example, in Italy and the Netherlands, despite well-capitalized
No.2 players Subito (Italy, Shibsted-owned) and Marktplaats (the
Netherlands, EBAY-owned), AS24 has maintained its leading
positions.

Exposure to a fast-moving technological environment could also
weaken AS24's competitive position.   As a digital classifieds
platforms operator, AS24 is exposed to technological changes that
might disrupt its operations and result in loss of traffic and
customers, or higher investments in product development and
information technology (IT) capabilities. That would will translate
into declining profitability and EBITDA margins. These risks are
partially offset by AS24's track record to introduce adjacent or
new services to its clients and its up-to-date IT technologies.

Its strong market position and well-recognized brand support our
rating on AS24.   AS24 holds leading market positions in four
European markets including Italy, the Netherlands, Belgium, and
Austria, and a No.2 position in its home market. In Germany, AS24's
largest market, it ranks behind mobile.de, an EBAY-owned online
classifieds platform. AS24 enjoys high brand recognition,
especially in Germany, which helps to sustain its customer base.

The rating also benefits from high recurring revenue share in
AS24's total revenue base and sound profitability generation.   S&P
said, "We view the company's large recurring customer base, which
includes car dealers, as supportive for revenue and profitability
generation. AS24 generated 83% of its revenue in the first half of
2019 from car dealers, a sticky customer base, with the share of
this type of revenue growing over the last two years. The COVID-19
pandemic could push some smaller car dealerships out of the market
and, hence, we expect the dealer base will be rather stable or grow
marginally in the next few years thanks to AS24's ability to win
and sustain new customers in the underpenetrated markets where the
company operates. Between 2017 and the first half of 2019, the
dealer base declined from 48,100 to 43,100, mainly due to loss of
less-profitable, smaller car dealers as clients in Germany." That
said, the average number of listings grew somewhat despite the
dealers loss.

S&P said, "Asset light business model supports cash flow generation
in our base case.   The moderate capital expenditure (capex) needs
and manageable working capital variations that AS24's business
model imply will enable the company to continue generating positive
and growing free operating cash flow (FOCF). This is despite
expected high interest payments after the closure of the
transaction. We estimate that AS24 will generate on average about
EUR40 million reported FOCF annually in 2020-2021 (pro-forma 12
months contribution in 2020) taking into account the COVID-19
impact." The company's asset-light business model suggests no car
inventory on AS24 books, and the variation of its working capital
investments mainly relates to payments.

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

-- Health and safety.

S&P said, "The outlook is stable because we expect AS24's credit
metrics will remain elevated in 2020 amid increased uncertainty
around the impact from the COVID-19 pandemic on the company's
performance and deleveraging. However, based on our current
assumption that the virus will wane by mid-2020, we expect the
group will be able to deleverage to 9.3x-9.8x including SHLs
(7.9x-8.4x excluding SHLs) by 2021, and generate positive FOCF,
while maintaining adequate liquidity.

"We could lower the rating over the next 12 months if the financial
impact of COVID-19 is more severe than we currently expect,
resulting in a higher decline in revenue and earnings that will not
be fully offset by cost cuts. This would result in weaker EBITDA
and cash flow generation, negative FOCF, and a deterioration in
liquidity, such that the group's capital structure would become
unsustainable in the medium term.

"We view an upgrade as remote over the next 12 months, owing to
high financial leverage and unsupportive macroeconomic prospects in
the group's markets. However, we could raise the rating if AS24
posted revenue, EBITDA, and margin growth above our forecast while
creating a track record of proactive debt repayment. This would
lead S&P Global Ratings-adjusted leverage to decline below 7x and
FOCF to debt to exceed 5%, along with sustainable material FOCF
generation in absolute terms. In our view, the reduction of
leverage and strengthening of credit metrics will depend on the
group's adoption of a moderate financial policy, including no
debt-funded acquisitions and shareholder returns."




=============
I C E L A N D
=============

LBI EHF: EUR540MM Bank Debt Trades at 82% Discount
--------------------------------------------------
Participations in a syndicated loan under which LBI ehf is a
borrower were trading in the secondary market around 18
cents-on-the-dollar during the week ended Fri., April 24, 2020,
according to Bloomberg's Evaluated Pricing service data.

The EUR450 million term loan matured on July 26, 2009.  As of April
24, 2020, the full amount has been drawn and is outstanding.

The Company's country of domicile is Iceland.



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

ADIENT PLC: S&P Rates New Sr. Sec. Notes 'B+', On Watch Negative
----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating and '3'
recovery rating to Adient PLC's proposed senior secured notes and
placed the issue-level rating on CreditWatch with negative
implications.

S&P said, "At the same time, we lowered our issue-level rating on
the company's outstanding term loan B and senior secured notes to
'B+' from 'BB-' and revised our recovery rating to '3' from '2'.
The rating remains on CreditWatch, where we placed it with negative
implications on March 27, 2020. The '3' recovery rating indicates
our expectation for meaningful (50%-70%; rounded estimate: 55%)
recovery for the secured lenders in the event of a payment
default.

"In addition, our 'B' issue-level rating and '5' recovery rating on
Adient's unsecured notes remain unchanged on CreditWatch, where we
placed them with negative implications on March 27, 2020. The '5'
recovery rating indicates our expectation for modest (10%-30%;
rounded estimate: 15%) recovery for the unsecured lenders in the
event of a payment default.

"While we generally view an increase in a company's debt leverage
as worsening its credit risk, we see this issuance as a prudent
action by Adient to shore up its liquidity in response to the
unprecedented global economic uncertainty stemming from the
coronavirus pandemic.

"The CreditWatch reflects that there is at least a 50% chance we
will lower our ratings on Adient by one notch if its plants remain
idle for longer than we expect, causing its cash flow generation to
turn negative, eroding its liquidity, and increasing its debt
leverage with no signs of an imminent improvement. The length of
the shutdown will depend on how soon the coronavirus infection
curve flattens, how soon governments relax their restrictions on
movement, and how soon consumers regain the confidence to purchase
big-ticket items, such as vehicles, after the pandemic ends."

  Ratings List

  Adient plc
   Issuer Credit Rating     B+/Watch Neg/--    B+/Watch Neg/--

  New Rating

  Adient US LLC
   Senior Secured  
   US$500 mil nts due 2025   B+ /Watch Neg
    Recovery Rating             3(55%)

  Ratings Affirmed/ Recovery Expectations Revised

  Adient Global Holdings Ltd.
   Senior Unsecured         B /Watch Neg       B /Watch Neg
    Recovery Rating             5(15%)             5(20%)

  Ratings Lowered/ Recovery Ratings Revised

  Adient US LLC
   Senior Secured           B+ /Watch Neg     BB- /Watch Neg
    Recovery Rating             3(55%)            2(70%)




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

LIMA CORPORATE: S&P Downgrades ICR to 'B-', Outlook Stable
----------------------------------------------------------
S&P Global Ratings lowered the issuer credit rating on Lima
Corporate to 'B-' from 'B'. At the same time, S&P lowered itsr
issue ratings on the company's super senior revolving credit
facilities (RCFs) to 'B' from 'B+' and on the notes to 'B-' from
'B' maturing in 2023.

Lower sales volumes will hinder Lima's deleveraging trend in 2020
and 2021.   Lima's solid revenue growth over the past three
quarters had positioned the company to continue a steady
deleveraging path this year. However, public and private hospitals
and clinics have suspended a high number of non-essential medical
procedures, including orthopedic surgeries, to prioritize the
treatment of COVID-19 patients. S&P said, "As a result, demand for
Lima's orthopedic implants started to decline toward end-March
2020, and we expect sales will drop by 25%-30% this year. We now
project that Lima's debt to EBITDA, as adjusted by S&P Global
Ratings, will materially surpass 10x at end-2020, versus 7x-8x at
end-2019 according to our preliminary estimates. Our adjusted debt
calculation considers about EUR110 million-EUR120 million
payment-in-kind (PIK) notes (including accrued interests) issued at
Lima's parent level. We believe that by end-2021 Lima's leverage
will not return toward 7x, a level commensurate with our 'B'
rating. We note that the company's S&P Global Ratings-adjusted
funds from operations (FFO) cash interests will remain at about
2.5x in 2020, while free operating cash flow (FOCF) will likely
turn negative in 2020."

A recovery in Lima's performance will depend on when hospitals and
clinics can turn back to non-urgent procedures.  Europe and the
U.S. represent core geographies for Lima, particularly in Italy
where the company generates 20% of its sales. Public hospitals
across both regions have restructured their priorities to address
the COVID-19 health emergency, and numerous private clinics have
stepped in to alleviate the increasing burden on the public health
system. S&P assumes the rebound for less-discretionary procedures
will start with private segment, since they will have a high
incentive to return to their full offering of services, and run at
full capacity (or above). The timing of a bounce back in
non-essential procedures in the public health system is difficult
to assess at this time. It will depend on the level of operating
and financial stress public hospitals face when the situation
stabilizes.

Cash preservative measures will support Lima's liquidity in the
near term while the company seizes growth opportunities.  
Containment measures imposed by government have not directly
affected operations at Lima's two manufacturing facilities in
Italy. However, the company is revising its manufacturing
activities in line with the reduced demand expected in the coming
months, and this will translate into lower operating leverage. S&P
said, "At the same time, we acknowledge that Lima is using
temporary lay-off measures and reducing discretionary marketing
costs to preserve cash. This should allow the company to avoid
material deterioration of its adjusted EBITDA margin, which we
forecast at approximately 20% at end-2020, compared with 22%-23%
estimated in 2019 (including non-recurring costs). We currently
believe the company has adequate liquidity to withstand the dip in
sales without massively cutting its capital expenditure (capex). In
particular, ongoing investments in instrument sets are required to
allow a faster sales recovery when the rebound of surgical
procedures occurs. Furthermore, although some investments in
inventories might be necessary, we do not anticipate meaningful
cash requirements or pronounced liquidity stress in the near
term."

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.

"The stable outlook reflects our expectation that Lima's S&P Global
Ratings-adjusted FFO cash interest coverage will remain at about
2.5x in 2020 despite the material performance setbacks. At the same
time, we believe the company's liquidity and covenant headroom are
likely to remain adequate over the next 12 months.

"We could lower the rating if liquidity becomes tighter and we see
heightened risk of covenant breach. This could happen if Lima
cannot get through the current environment on its cash-saving
measures and if we observe higher-than-usual working capital
requirements that erode the company's liquidity cushion. At the
same time, a slower-than-expected rebound in sales could result in
an S&P Global Ratings-adjusted debt to EBITDA materially above 10x
for an extended period, leading us to view the capital structure as
unsustainable.

"We could raise the rating if we see a solid pick-up in sales
toward year-end and into 2021--indicating that orthopedic surgeries
have resumed sooner than expected--and a stabilization of
profitability at levels seen before the pandemic. Under this
scenario, we would expect Lima's S&P Global Ratings-adjusted debt
to EBITDA to approach 7x and positive FOCF."




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

LSF10 EDILIANS: S&P Alters Outlook ot Negative & Affirms 'B' Rating
-------------------------------------------------------------------
S&P Global Ratings revised its outlook on LSF10 Edilians Investment
to negative from stable, and affirmed its 'B' long-term rating on
the company.

Activity stopped suddenly after the lockdown measure announcements
in mid-March.  Similar to peers, Edilians has been unable to sell
its products due to the temporary closure of major building
material distributors. As a result, Edilians has also been forced
to shut down most of its manufacturing sites, which resulted in
very limited sales in the second half of March. S&P Global Ratings
expects sales and EBITDA to be much lower in March and April, more
than 40% lower than the same months last year. S&P understands that
distributors are now gradually reopening, although demand remains
weak and current sales of clay tiles represent about 40%-50% of
normal sales on average in France.

S&P said, "Our base case assumes that EBITDA decline will not
exceed 20%-25% this year, with most of the impact in the second
quarter.  Based on this assumption, we expect our adjusted debt to
EBITDA to peak above 7x in 2020, from 5.8x in 2019. Recovery of
demand in the second part of the year will be key for the credit
metrics. We expect adjusted debt to EBITDA to reduce to about
6.1-6.2x in 2021. The negative outlook also reflects our view that
credit metrics could be much weaker than we anticipate, if
Edilians' end-market remains weak in the second half of the year.

"We forecast positive free operating cash flows of EUR5
million-EUR10 million in 2020.  We note that cash flows in 2019
were impaired by the residual transaction fees of over EUR10
million associated with the Lone Star acquisition in 2018. We
expect lower transaction fees in 2020. We also understand that
non-essential capital expenditure (capex) is frozen for the moment,
and we anticipate capex of about EUR20 million for this year.

"We believe that liquidity is adequate.  Our ratio of liquidity
sources to uses is more than 2.5x over the next 12 months. The
company fully drew its EUR90 million revolving credit facility
(RCF), and had about EUR110 million of cash on balance sheet on
March 31. It has no upcoming debt maturities. Management estimates
that it would need to cover up to EUR25 million operating expenses
per quarter in case of no sales (which is not the situation at the
moment). We believe that it has sufficient cash to cover its
liquidity needs. However, liquidity will remain an area of focus in
the coming quarters.

"We acknowledge a high degree of uncertainty about the rate of
spread and peak of the coronavirus outbreak.  Some government
authorities estimate the pandemic will peak 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."

The negative outlook reflects the risks that the economic impact
from COVID-19 could be more pronounced than in our base case,
leading to a further weakening of credit metrics and cash flows.

S&P said, "We could lower the ratings if demand were to remain very
low in the second half of the year and early 2021 due to the
COVID-19 outbreak, which would result in a much weaker operating
performance and adjusted debt to EBITDA sustainably above 6.5x.
Under that scenario, free operating cash flow (FOCF) would be
limited and liquidity pressure could arise.

"We could revise the outlook to stable if we observed a swift
recovery in Edilians' performance and continuous solid FOCF
generation in the next 12 months. Under that scenario, adjusted
leverage would be sustainably below 6.5x. A stable outlook would
require Edilians to maintain an adequate liquidity position."




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

NORWEGIAN AIR: New Restructuring Law May Help Save Business
-----------------------------------------------------------
Victoria Klesty at Reuters reports that Norway's parliament voted
through a new company restructuring law on April 24 that could help
save Norwegian Air and many other companies from potential
bankruptcy as a result of the restrictions to stem the spread of
COVID-19.

According to Reuters, the legislation replaces current regulation
on debt negotiations and relaxes rules for converting debt into
equity.

"(The new law) is a more efficient tool to . . . sort out what
parts of a business can be strong enough to survive," Reuters
quotes Justice Minster Monica Maeland as saying.

Her comments were not aimed at any specific firms, but budget
carrier Norwegian Air is among those likely to benefit, said
Kristoffer Aaseboe, a lawyer at Oslo-based law firm Bull & Co.,
Reuters notes.

"This temporary restructuring law will increase the likelihood to
get restructurings in place," Mr. Aaseboe, who specializes in
insolvency and reconstruction, told Reuters.

The airline is seeking to convert debt to equity to qualify for
state guarantees in a bid to survive the coronavirus crisis, which
has grounded all but a handful of its nearly 160 aircraft, Reuters
discloses.

Bull & Co lawyer Klemet Gaski said the law will mean only 50% of
the debtors and 50% of shareholders have to agree to a solution,
which is less strict than under the current law, Reuters relates.

The company still aims to emerge from the crisis, and will hold
meetings of bondholders and shareholders ahead of a vote on its
proposed plan on May 4, Reuters states.




===========
P O L A N D
===========

ZAKLADY MIESNE: Cedrob Seeks Approval of Sale Condition Changes
---------------------------------------------------------------
Reuters reports that Zaklady Miesne Henryk Kania said on April 24
the court appointed administrator has received a letter from Cedrob
on the change of conditions of the sale of the organized part of
the company's enterprise to Cedrob.

According to Reuters, Zaklady Miesne Henryk Kania said that Cedrob
has filed motion for approval of conditions on acquiring organized
part of the company's enterprise for PLN82.1 million plus VAT.




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

ETALON LENSPETSSMU: S&P Places 'B' Rating on CreditWatch Negative
-----------------------------------------------------------------
S&P Global Ratings placed 'B' ratings on Etalon Group's fully owned
subsidiaries Etalon LenSpetsSMU JSC (Etalon LSS) and Leader Invest
JSC (Leader) on CreditWatch with negative implications.

S&P said, "We see an increasing risk that we may downgrade both
companies.  This is due to higher anticipated group leverage,
following weaker-than-expected operating performance in 2019 and
first-quarter 2020, and a slowdown of the company´s operations
amid the COVID-19 pandemic. The CreditWatch placement reflects our
view that Etalon Group's S&P Global Ratings-adjusted debt to EBITDA
is likely to exceed 7.0x in 2020 and its EBITDA to cash interest
coverage would be below 2.0x." This would likely result in a
downward revision of the 'b' GCP, which caps the stand-alone credit
profiles (SACPs) of Etalon LSS and Leader.

Some construction deliveries were back-loaded within existing
construction schedules in 2019, which negatively affected Etalon
Group's revenue and EBITDA and led to S&P Global Ratings-adjusted
debt to EBITDA of close to 7.0x, with further weakening expected in
2020.  Etalon Group posted weaker-than-expected revenue and EBITDA
in 2019, resulting from the consolidation of Leader and some
construction deliveries being back-loaded to the later stages of
the schedule, affecting the reported rate of project completion.
S&P said, "We understand that, after the acquisition of Leader,
Etalon Group's construction capacity in Moscow was not sufficient
to equally support all its projects in the city, given the
portfolio increase and some delays, which it was trying to
compensate for in first-quarter 2020. We expect 2020 EBITDA to
weaken further, largely constrained by COVID-19-related lockdown
measures. A significant part of Etalon Group's portfolio is located
in Moscow where construction work has been frozen under wider
government attempts to contain the spread of COVID-19. It is
unclear at this stage when construction will resume. We factor that
all of Etalon Group's first-quarter 2020 deliveries (88,500 square
meters; up 156% year on year) were in Moscow, with none in St.
Petersburg. Our new revised base case includes an expected 20%-25%
year-on-year revenue decline for 2020 with a gradual recovery in
2021. We will update our forecast in the next few weeks, when we
have better visibility regarding the duration of construction
freeze and self-isolation measures in Russia, and their effect on
Etalon Group's performance."

Government support to the development industry may somewhat offset
the negative effects of COVID-19, but there are many uncertainties.
  S&P said, "We believe that any potential government measures
could mitigate downside risk. However, none of the measures
currently announced have been included in our base-case scenario.
We will adjust our forecast and any effect on the rating as soon as
there is more visibility."

S&P said, "We continue to assess Etalon Group's liquidity as
adequate.   Etalon Group's near-term maturities of about Russian
ruble (RUB) 15 billion include loan amortizations of about RUB6
billion and repayments for Etalon LSS's domestic bonds of about
RUB4 billion (in several installments) and Leader's domestic bond
of RUB5 billion with a put option in Feb. 2021. These are covered
by its about RUB30 billion cash balances (about half of which are
available for financing construction and half for other corporate
purposes, according to management) and about RUB14 billion of
long-term committed lines, including Leader's RUB12.5 billion
committed facility from Sberbank for construction of the
Lobachevsky project. S&P also understands that the group is
negotiating project finance facilities for new construction
projects and is working to arrange financing for the put option
under Leader's domestic bond in Feb. 2021.

However, protracted self-isolation measures in Russia, could
negatively affect liquidity through a substantial decrease in cash
sales.   S&P said, "We note a 10% year-on-year decline in group
sales in first-quarter 2020, despite a 20% increase in the average
selling price. In the second quarter, we expect group sales to be
even lower due to constrained business activity. At the same time,
we factor in that the announced share buyback of 10% of Etalon
Group's global depositary receipts, which are worth about RUB2.3
billion as of April 21, 2020, can be executed at any time during
the year, with the timing at management's discretion. We understand
that the group may revise its dividend downward or even cancel it
in a stress situation or as required by lenders. Furthermore, we
believe that the acquisition of Leader has boosted the group's land
bank, and new material capital outlays are unlikely. That being
said, we note that the group's 2019 report mentioned a RUB7.3
billion claim for the ZIL South project, which we understand may
result in additional cash outflows starting from 2021."

The CreditWatch negative reflects the increased probability of a
downgrade in the next one-to-two months. A downgrade may result
from expected lower sales or weaker margins, leading to S&P Global
Ratings-adjusted debt to EBITDA remaining above 7.0x without any
improvement potential, or EBITDA to cash interest sustainably below
2.0x. Any liquidity stress (including due to untimely refinancing)
at Etalon LSS, Leader, or the Etalon Group level, would lead to a
downgrade.

S&P intends to resolve the CreditWatch placement over the next few
months, once we have more transparency on government and group
measures taken during the COVID-19 pandemic, along with the group's
ability to further manage leverage and liquidity.


PIK GROUP: S&P Alters Outlook to Stable & Affirms 'B+' ICR
----------------------------------------------------------
S&P Global Ratings revised its outlook on PIK Group to stable from
positive and affirmed its 'B+' issuer credit rating on the
company.

S&P said, "The outlook revision reflects our expectation that PIK
Group JSC (PIK)'s growth rate will fall in 2020-2021 due to
measures taken to contain the outbreak of COVID19 in Russia. For
example, we factor a construction freeze starting from mid-April in
both Moscow and the Moscow region, where a significant share of
PIK's projects are located. We also expect PIK's sales in
second-quarter 2020 will suffer due to the government-imposed
vacation for all Russian citizens in April 2020 to facilitate
social distancing measures, which makes physical viewing of new
housing and in-person office visits impossible.

"The impact of the COVID-19-related measures is somewhat mitigated
by PIK's online sales channels. In mid-April, PIK announced its new
online mortgage product launched in cooperation with VTB Bank JSC,
PIK's key lender and important shareholder. We believe this could
help PIK attain some homebuyers, even in the current challenging
environment. We also understand that some banks resumed offline
operations as of mid-April, which should facilitate mortgage-backed
sales.

"Our rating affirmation reflects our expectation that PIK's
adjusted debt to EBITDA will remain below 3.5x in a stress
scenario, and our view of it's sustained market-leading position.
Our revised base case incorporates a drop in revenue of about 15%
compared with our previous assumptions, and we now forecast PIK's
S&P Global Ratings adjusted debt to EBITDA at 3.0x-3.5x. This is
commensurate with the current rating, but higher than our previous
expectation of well below 3.0x. Our new forecast is also supported
by our expectation that PIK will draw less project-finance lines to
finance new construction if the adverse market environment means it
has to halt construction plans. We also consider that PIK's
leverage was strong in 2019, at close to or below 2.5x, largely
supported by EBITDA margin improvement to above 20%. We also
understand that, in first-quarter 2020, PIK benefited from strong
sales volumes that allowed it to maintain a strong cash balance and
repay some of its debt (other than project-finance debt).

"We see a downside risk for longer–term housing demand, which
should be partly mitigated by government industry rescue measures.
We expect the pandemic will put jobs and household incomes at risk,
and assume that lower oil prices will impact Russia's economic
growth. This will likely put pressure on the affordability of new
homes, and could result in decreased demand. That said, the Russian
government has proposed a number of measures to support the
industry and stimulate demand, including a subsidized mortgage rate
of 6.5% and government guarantees. Although this is not part of our
base case, we expect that, in a stress scenario, PIK will be one of
the key beneficiaries of these measures given it is a systemically
important company and the largest construction company in Russia.

"The stable outlook indicates our expectation that PIK will
maintain adjusted debt to EBITDA of 3.0x-3.5x in 2020-2021, with
more than half of its debt being project finance loans covered by
cash in escrow accounts. We also expect the company will
demonstrate a prudent financial policy and will keep its liquidity
at least adequate, implying minimal refinancing risk.

"We could take a negative rating action if operating cash flow or
profitability is lower than our base-case projections, resulting in
debt (including project-finance loans) to EBITDA higher than 3.5x,
or a five-year weighted-average EBITDA interest coverage lower than
3x. This could occur in the event of a higher-than-expected cost
base or lower demand for new apartments and lower pre-sales, or
project-finance debt increasing faster than pre-sales and
completions. Rating pressure might also materialize if PIK's debt
maturity profile shortens, liquidity deteriorates, or due to a more
aggressive financial policy, including dividends above Russian
ruble (RUB) 15 billion-RUB18 billion per year or any major merger
and acquisition transactions that leads to weaker metrics.

"Rating upside is currently constrained by risks related to the
COVID-19 pandemic. We could consider a positive rating action once
the market environment supports at least stable completions and
revenue from development business, PIK's EBITDA margin is
sustainably above 20%, and we see improvement in cash collections
from pre-sales. An upgrade would depend on PIK maintaining its
adjusted debt to EBITDA sustainably below 3.0x, with more than half
of debt being project finance loans covered by cash in escrow
accounts. The company should also demonstrate a prudent financial
policy and keep its liquidity at least adequate, implying minimal
refinancing risk."


SETL GROUP: S&P Affirms B+/B Ratings, Outlook Stable
----------------------------------------------------
S&P Global Ratings affirmed its 'B+/B' long- and short-term ratings
on Russia-based homebuilder Setl Group.

S&P said, "Our rating affirmation reflects Setl's moderate metrics
in a stress scenario of a 15% revenue decline in 2020.   Setl
Group's reported debt remained low at RUB12.7 billion (about EUR180
million) of bonds and loans, as per management at year-end 2019
(compared with about RUB14 billion at year-end 2018), translating
into a solid adjusted debt-to-EBITDA ratio below 1.0x, in our
estimate. We also calculate that Setl's EBITDA to cash interest was
strong at over 10x in 2019. As Setl plans to gradually contract new
project finance loans to fund new construction starting from 2020,
its debt will increase to reach RUB50 billion-RUB60 billion by 2022
in our estimate. Nevertheless, we expect that Setl Group will not
build up any debt other than project finance loans, which at
maturity will be repaid with cash accumulated in escrow accounts.
We also take into account that if Setl decides to defer launch of
new projects, this would result in lower utilization of project
finance loans, balancing potential pressure on EBITDA. We envisage
that in case of a revenue decline of about 15% and 1-2
percentage-point margin compression, Setl's adjusted debt to EBITDA
would remain below 1.5x excluding project finance loans and below
3.5x with project finance loans, while EBITDA to cash interest
would be above 5.0x in 2020-2021. To factor in the expected
leverage increase due to new project finance loans, we have revised
our assessment of Setl's financial risk profile to significant from
intermediate."

Setl's construction sites continue to operate, in line with the
local government decision, but sales activity is likely to slow in
April and May.   As COVID-19 is spreading across Russia, the
Russian government announced a several-week vacation for all of the
population in order to ensure social distancing. The decision about
whether to keep construction sites open was delegated to the local
governments. Apart from Moscow and Moscow region, most regions so
far have decided not to freeze construction. In St Petersburg and
Leningrad region, where Setl's key operating assets are located,
construction sites remain operational, subject to proper
precautionary measures. S&P said, "Although Setl's sales offices
continue to operate remotely, we understand that sales are likely
to be very low during the period of self-isolation in Russia, as
real estate purchases generally require physical viewings and
office visits. That said, we understand that banks have partially
resumed operations starting from mid-April, which should facilitate
mortgage-backed sales."

S&P said, "We see risk to longer-term housing demand, which should
be partly offset by the government industry rescue measures.   We
expect that the pandemic will put jobs and households' income at
risk, while lower oil prices will reduce Russian economic growth.
This will likely lead to pressure on affordability and could
decrease demand for new homes. That said, the Russian government
has proposed a number of measures to support the industry and
stimulate demand, including a subsidized mortgage rate of 6.5% and
government guarantees. Although this is not part of our current
base case, we expect that in a stress scenario, Setl Group will
likely be one of the beneficiaries of these measures, also because
it has been included in the list of systemically important
companies. An additional positive factor is that Setl's key
operations are concentrated in St. Petersburg, where the household
wealth levels, although lower than in Moscow, still remain above
the Russian average.

"Our rating remains supported by Setl Group's strong market
position.   Although Setl's operations are confined to St.
Petersburg and Leningrad region with only minimal diversification
in Kaliningrad region, our business risk assessment for Setl is
supported by its strong position of the third-largest player in
Russia (following PIK Group and LSR), with a market share of 2.59%,
according to the Russian agency Dom.rf. In St. Petersburg and the
surrounding Leningrad region, Setl occupies the leading market
position, holding a market share of about 15% of new housing
offered for sale in 2019, and about 19% of actual sales, according
to management. Setl group demonstrates some product
diversification, with the majority of sales generated in the
mid-segment, roughly 10%-15% of sales in the higher-end segment,
and a very low share in the low-end segment. Our business risk
assessment for Setl factors in its sizable landbank of 764.4
hectares as of year-end 2019 (including 124.4 hectares under
construction and 640.6 hectares in a design stage), supporting
several years of operations. We assess Setl's profitability as
average, with EBITDA margins of about 15%-17%.

"We expect that Setl's financial policy will prove to be supportive
even in a stress scenario.  Setl Group has proven its commitment to
a balanced financial policy over several years. More specifically,
dividends have remained broadly stable, supporting the improvement
of the debt-to-debt-plus-equity ratio to below 60%, from 89% on a
reported basis. We also factor in that Setl has a track record of
avoiding aggressive mergers and acquisitions. As a result, we have
revised our assessment of Setl's financial policy to neutral from
negative previously.

"The stable outlook on Setl Group captures the company's adequate
liquidity and our view that strong cash interest coverage and low
debt to EBITDA should support its current credit quality despite
the negative impact of COVID-19 related measures. We forecast that
Setl's established business model should enable the company to
remain resilient under our base-case assumptions. In particular, we
expect that Setl Group will maintain a ratio of debt to EBITDA
below 1.5x excluding new project finance loans and a ratio of below
3.5x including project finance loans. We also expect Setl to
maintain EBITDA to cash interest coverage of above 5.0x, and debt
to debt plus equity of less than 75% over the next two years.

"We could lower the rating if Setl's S&P Global Ratings-adjusted
debt to EBITDA were to exceed 1.5x when excluding project finance
debt and 3.5x when including project finance debt. This could
happen because of weaker operating performance brought about by
COVID19 measures or macroeconomic headwinds resulting in
unfavorable industry trends, margin pressure, or adverse working
capital movements. Pressure on the rating could intensify if the
company's external financial flexibility deteriorated and its
overall liquidity management became more aggressive.

"Rating upside is currently remote, but could follow a substantial
increase in scale and better diversification, coupled with
supportive macroeconomic conditions. We could also raise the
ratings if we saw a steady and sustainable improvement in Setl's
EBITDA margin to a level comparable with that of its vertically
integrated peers, in the 20%-30% range. Rating upside might also
come from a financial policy that leans toward a more conservative
approach, in terms of maximum debt to EBITDA and dividend payout
ratio, with substantial improvement in the company's
debt-to-debt-plus-equity ratio."




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

JOYE MEDIA: S&P Lowers ICR to 'B' on COVID-19 Impact on Earnings
----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Joye Media S.L. (parent of European audiovisual group Mediapro) to
'B' from 'BB-', the first-lien debt rating to 'B+' from BB, and the
subordinated debt rating to 'CCC+' from 'B'. In addition, S&P
placed all ratings on CreditWatch with negative implications.

The downgrade partly reflects weaker-than-expected performance in
2019

In 2019, Joye Media generated negative free operating cash flow
(FOCF) for the second consecutive year, totalling around negative
EUR30 million, excluding exceptionally negative working capital
outflows of EUR221 million related to the joint venture with beIN.
S&P said, "This contrasts with our previous expectation of positive
FOCF of above EUR100 million. The negative FOCF is due to weak
operating performance, with normalized (company-reported) EBITDA
decreasing 4% in 2019, as well as by large negative working capital
swings, which continue to weigh on the company's free cash flow
generation." This is despite the company's switch in 2018 to an
agency contract for its international rights with LaLiga, whereby
Joye Media now acts as an agent to sell LaLiga rights in exchange
for commission payments.

The downgrade also reflects the impact of COVID-19 on Joye Media's
earnings and credit metrics, and the continuing uncertainty about
the 2019/2020 European football season.  S&P said, "We estimate
that the lockdowns, expected to last at least until May, will
significantly affect Joye Media's earnings and cash flows in 2020.
Moreover, there is still high uncertainty about when--if at
all--European football leagues will resume. If these leagues are
cancelled, we estimate an EBITDA loss of at least EUR30 million in
2020, translating to a significant deterioration in credit metrics.
If the main European football leagues restart later than June, we
cannot rule out that sports rights and audiovisual revenues for the
2020/2021 season could be postponed to the following fiscal year.
In this scenario, we would also expect that a material share of the
revenue from content production would be postponed to 2021.
Consequently, we estimate that Joye Media's reported EBITDA would
be below EUR180 million in 2020, leading to an S&P Global
Ratings-adjusted leverage close to 5.5x."

S&P said, "We now view Joye Media's liquidity as less than adequate
due to its thin cash buffer and expected lack of covenant headroom
Pro forma for the EUR49 million payment to the selling
shareholders in connection with the Prisa settlement compensation
and the EUR45 million debt amortization due in June 2020, Joye
Media's available liquidity amounts to EUR85 million-EUR90 million.
Depending on the extent of the lockdown and whether the 2019/2020
Spanish football league is restarted or cancelled, we estimate that
the company could burn from EUR5 million up to EUR20 million of
cash per month, meaning that it promptly needs an injection of new
liquidity."

The company's capital structure consists of EUR740 million in
first-lien debt, including EUR60 million revolving credit facility
(RCF; fully drawn as of December 2019), EUR180 million of
second-lien debt, and EUR67 million of short-term credit lines
(fully drawn as of March 31, 2020). S&P anticipates little to no
headroom under the group's maintenance covenants on adjusted gross
financial leverage and adjusted senior leverage when the covenants
are next tested in June and September. In the latter test date,
these covenants' thresholds step down from 5.5x to 4.5x and from
4.5x to 4x, respectively, entailing a very significant risk of
breach, in our view.

S&P said, "We estimate that Joye Media needs to raise further
liquidity and negotiate a covenant waiver.  The placement of all
ratings on CreditWatch with negative expectations points to the
risk that if the company cannot raise further liquidity in the
short term, we could lower the rating by several notches. We
understand that Joye Media is attempting to raise further liquidity
and negotiate covenant waivers. Consequently, we will reassess the
company's liquidity, capital structure, and recovery once it
undertakes its recapitalization."

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

-- Health and safety

S&P said, "To resolve the CreditWatch placement, we will evaluate
new information regarding the extent of the lockdown, the restart
date of the football leagues, and the impacts on Joye Media's
trading, cash flows, liquidity, and headroom of covenant
compliance. We expect to resolve our CreditWatch placement in the
next few weeks or months."

S&P would lower the rating on Joye Media if:

-- It cannot promptly raise enough liquidity to withstand the
subdued earning levels;

-- It appears unlikely that it will obtain covenant waivers well
ahead of any potential breach; or

-- European football leagues--particularly in Spain and
France--cancelled the ongoing 2019-2020 season, exposing Joye Media
to a significant revenue and EBITDA loss, and this was not
sufficiently mitigated through new significant funding.

S&P could affirm its rating on Joye Media if:

-- It raises sufficiently liquidity to withstand any of the
possible scenarios that could unfold, including a potential
cancellation of the 2019/2020 season;

-- It averted a covenant breach or renegotiated covenant waivers,
such that there is sufficient covenant headroom for at least next
12-24 months; or

-- European football leagues restarted in the coming months and
finished their ongoing seasons.

LSFX FLAVUM: S&P Alters Outlook to Negative & Affirms 'B' ICR
-------------------------------------------------------------
S&P Global Ratings revised its outlook on LSFX Flavum Bidco
(Esmalglass-Itaca-Fritta) to negative from stable and affirmed its
'B' issuer credit rating.

Lockdown measures affect Esmalglass-Itaca-Fritta's production and
demand in end markets.  The group's Spanish manufacturing sites
have shut down for two weeks, and the Brazilian sites for three
weeks in April. S&P Global Ratings believes demand from ceramic
tile manufacturers will decline over the coming months, although
uncertainties remain on the magnitude at which
Esmalglass-Itaca-Fritta will be affected. Esmalglass-Itaca-Fritta
also has a small exposure to China (6% of sales), although S&P
understands that COVID-19 did not significantly impair the group's
performance in the first quarter of 2020.

S&P said, "In our base case, the EBITDA decline would not exceed
20%-25%, and mainly occur in the second quarter of the year.  Based
on this assumption, we expect our adjusted leverage metric for
Esmalglass-Itaca-Fritta to peak to about 7.0x in 2020, pro forma
the Ferro tile coatings business, before reducing to about 6.0x.
Positively, adjusted leverage at end-2019 was relatively low at
about 5.0x, compared with that of other 'B' rated peers. Recovery
of demand in the second part of the year would be a key support for
the company's credit metrics. Nevertheless, we anticipate that
credit metrics could be much weaker than we anticipate if the
company's end market remains weak in the second half of the year.

"Liquidity is adequate in our view.   We estimate that liquidity
sources exceed uses by over 2.5x in the next 12 months.
Esmalglass-Itaca-Fritta has no major upcoming debt maturities and
suspended non-ssential capital expenditure (capex). The company has
fully drawn its EUR60 million revolving credit facility (RCF) as a
precautionary measure, and we will closely monitor its liquidity
usage in the coming quarters.

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 siad, "The negative outlook reflects the risks that the
economic impact from COVID-19 could be more pronounced than we
anticipate in our base case, leading to a further weakening of
credit metrics and cash flows.

"We could lower our ratings if demand remains very low in the
second half of 2020 and early 2021 due to the COVID-19 pandemic,
which would result in much weaker operating performance and
adjusted leverage staying above 6.5x. Under that scenario, free
operating cash flow (FOCF) would be limited and liquidity pressure
could arise.

"We could revise the outlook to stable if we observed a swift
recovery in the company's performance and continuous solid FOCF
generation in the next 12 months. Under that scenario, adjusted
leverage would be sustainably below 6.5x. A stable outlook would
require Esmalglass-Itaca-Fritta to maintain an adequate liquidity
position."




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

PERSTORP HOLDING: S&P Downgrades ICR to 'B-' on Weakened Demand
---------------------------------------------------------------
S&P Global Ratings lowered to 'B-' from 'B' its issuer credit and
issue ratings on Perstorp Holding AB and its senior secured
facilities.

The economic recession in many parts of the world, including the
U.S. and Europe, will weaken Perstorp's EBITDA and credit metrics
in 2020.

S&P said, "We believe that the debilitating economic effects of
COVID-19 will lead to a further reduction in Perstorp's 2020 EBITDA
and weaker credit measures. The group's operations are heavily
exposed to cyclical end markets such as transportation (19%
including auto and aviation), industrial (21%), and construction
(27%). As a result, we anticipate revenue will decline by 5%-10% in
2020, resulting in a 8%-13% adjusted EBITDA contraction. We now
anticipate Perstorp's debt to EBITDA, as adjusted by S&P Global
Ratings, will surpass 8.5x in 2020, then deleverage to slightly
below 8.0x in 2021. As such, we no longer think that Perstorp will
improve its leverage in 2020 to adjusted debt to EBITDA below 6.5x,
the threshold for our 'B' rating."

Perstorp will likely generate free operating cash flow (FOCF) over
the next 12 months.

S&P said, "We understand the company expects to implement several
strategic measures to protect margins and preserve cash. These
include reducing fixed costs and postponing growth capital
expenditure (capex). Following this, we forecast temporary positive
FOCF in 2020 on the back of a material reduction in capex. Most of
this capex is related to an expansion project in India that should
resume when demand bounces back. At the same time, Perstorp
recently drew down fully on its EUR100 million revolving credit
facility (RCF), due 2025, as a precaution, and we assume these
funds will stay on the balance sheet. Since we assess its business
risk profile as weak and consider its financial-sponsor ownership,
we do not net cash from debt in calculating Perstorp's leverage."

Perstorp has maintained adequate liquidity so far, but constraints
could appear given the concerns on COVID-19 fallout.

S&P siad, "We expect the company to have sufficient liquidity over
the next 12 months. At end-March 2020, we anticipate the company to
have Swedish krona (SEK) 900 million-SEK1,000 million of available
cash on the balance sheet, supported by the EUR100 million from the
RCF. Over the next 12 months, we expect the company will see
positive funds from operations (FFO) and curb capex. Limited debt
repayments also support our liquidity assessment. We acknowledge,
however, that liquidity pressure could intensify given the economic
and credit distresses stemming from the COVID-19 pandemic."

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.

"The negative outlook on Perstorp reflects potentially
weaker-than-expected earnings and credit. In our base case, we
assume a contraction in the U.S. and European economies and a
pronounced slowdown in Asia-Pacific that will hinder demand for the
company's products. Factoring in potential demand obstacles from a
weaker macroeconomic environment, we expect S&P Global
Ratings-adjusted debt to EBITDA of between 7x and 8x on a
weighted-average, forward-looking basis. That said, we incorporate
in our outlook further risks to our projections given the
possibility of a greater economic slowdown

"We could lower the rating by at least one notch if demand for
Perstorp's products declined further, leading to a material EBITDA
deterioration to below SEK1.1 billion and weakening overall
liquidity. Liquidity sources to uses below 1.2x or the prospect of
negative FOCF could also prompt a negative rating action.

"We could revise the outlook to stable over the next 12 months if
Perstorp's earnings do not weaken as much as we anticipate or if we
see signs of a faster-than-expected recovery in end markets that
strengthens the group's debt to EBITDA. We could raise the rating
over the next year if the company's business and performance
strengthens materially beyond our expectations, such that debt to
EBITDA improves to below 6.5x on a sustained basis. We would also
expect the liquidity sources to uses ratio to remain above 1.2x."




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

NMC HEALTH: Intends to Delist Shares from London Stock Exchange
---------------------------------------------------------------
Vinjeru Mkandawire at The Telegraph reports that troubled
healthcare provider NMC Health intends to delist its shares from
the London Stock Exchange following a two-month suspension.  

The FTSE 100 group, which runs hospitals, medical centres and care
facilities in the Middle East, was pushed into administration after
discovering more than US$4 billion of undisclosed debt, The
Telegraph discloses.  NMC is now estimated to have debt of about
US$6.6 billion, The Telegraph notes.

The delisting follows a series of damaging revelations about the
company's finances after short-seller Muddy Waters raised questions
about its accounts in December, The Telegraph states.  Doubts had
also been raised over the incorrect reporting of shares owned by
its top shareholders, The Telegraph relays.

NMC fired chief executive Prasanth Manghat earlier this year after
an independent review found the company had guaranteed loans of up
to US$335 million (GBP260 million) without reporting the
arrangement to the market or its board, The Telegraph recounts.


SYNLAB BONDCO: S&P Alters Outlook to Negative & Affirms 'B+' ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable and
affirmed its 'B+' long-term issuer credit rating on Synlab Bondco
PLC.

Synlab's operating performance will come under pressure, diverting
the company from its deleveraging track and increasing its
refinancing risk.   S&P said, "We estimate the leverage will remain
above 7x in 2020 as margins deteriorate because of a loss in sales
volume from the coronavirus outbreak. Although we see 2020 as an
exceptional year, we believe the pandemic could delay the
deleveraging and lead to adjusted debt to EBTIDA remaining above 7x
in 2021, which is not commensurate with a 'B+' rating. Furthermore,
a situation where leverage stays above 7x for a prolonged period
could weigh on Synlab's refinancing because a substantial part of
its debt comes due in July 2022. We believe Synlab would need to
achieve an adjusted EBITDA of EUR450 million-EUR470 million by 2021
to maintain a leverage below 7x."

Sales drop materially as confinement measures delay some important
services.   Restrictions have stressed volumes as patients stopped
getting routine checks and blood collection points closed in some
of the group's key European markets, where the majority of Synlab's
activity concentrates. Given the circumstances, patients are giving
priority to first-need medical services, postponing other services.
As a result, the company's EBITDA and sales from its services,
mainly centered on routine and specialty tests, will deteriorate in
2020. This sales erosion will only be partially offset by
SARS-CoV-2 testing revenue as laboratories are proactively
leveraging their diagnostic capabilities to offer support to
different health authorities in containing the pandemic.

S&P said, "We expect the essential nature of laboratories to
mitigate downside risks.   As the pandemic ends and business
returns to normal, we believe the industry in general and Synlab in
particular should benefit from a strong recovery. The ability to
perform serology tests for COVID-19 could be an additional
opportunity. Furthermore, Synlab comes out of a strong position in
2019, growing organically by 5.5% to EUR2.1 billion revenue
generation and reported AEBITDA of EUR444 million. This also is
reflective of its position in an end market with favorable long
term trends, size and diversification of the services and payer
profile. We also think the company's management will take the
necessary mitigating measures to smooth the hit on margins and
confront the situation in a quickly evolving environment.
Consequently, after a temporary drop in performance in 2020, we
anticipate a substantial recovery in 2021, as volumes pick up to
pre-crisis levels. In terms of pricing, the cuts initially planned
by health care authorities were based on the assumption of volume
growth, so we believe they will likely be postponed. We also
believe prices of COVID-19 tests will be regulated and monitored.

"We believe Synlab's liquidity remains solid and could absorb
shocks such as longer-than-expected lockdowns or prolonged
reduction in volumes.   In our view, the company will maintain
sufficient liquidity to withstand the following 12 months despite
the shortfall in operating performance. We estimate Synlab has
about EUR443 million in cash on the balance sheet (including EUR219
million already drawn on the revolving credit facility [RCF]) that
will sufficiently cover its fixed costs by more than 1.2x.
Furthermore, we believe it will profit from different types of
government support in terms of delaying tax payments or temporary
staff support that will ease some of these costs, allowing for a
continued adequate liquidity profile."

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, "The negative outlook reflects our view that the pandemic
could delay the deleveraging path for Synlab such that adjusted
debt to EBITDA could remain above 7x beyond 2020. Moving from the
7x benchmark could create problems because the company will need to
refinance an important amount of its capital structure by 2022.
Leverage reduction will depend not only on the recovery in testing
volumes but also ramp-up in profitability and contained
discretionary spending.

"We could lower the rating if in the next 12-18 months we lack
evidence that adjusted debt-to-EBITDA could be at around 7x by
2021. This could happen if the group does not achieve growth to
pre-crisis levels and has difficulty to cut costs further.

"Similarly, we could lower the ratings if the company has
difficulties refinancing on time its capital structure coming due
in 2022.

"We would revise the outlook to stable if we believe Synlab's
leverage can recover to its normal track and reach 7x as well as
having a fixed charge ratio substantially above 2x."


VALARIS PLC: S&P Downgrades ICR to 'CCC-', Outlook Negative
-----------------------------------------------------------
S&P Global Ratings lowered itsr issuer credit rating on U.K.-based
offshore drilling contractor Valaris PLC to 'CCC-' from 'CCC+'. S&P
also lowered its issue-level ratings on the company's unsecured
guaranteed debt to 'CCC' from 'B-' (recovery rating: '2').

The collapse in oil prices has led to a sharp drop in demand for
oilfield services, and we expect offshore activity to take a
substantial hit.  The recent material drop in oil prices--kicked
off by the Saudi-Russian price war and worsened by the
unprecedented drop in demand as a result of the coronavirus
pandemic--has led to sharp reductions in oil producers' capital
spending plans for 2020. This will significantly reduce demand for
the oilfield services sector. S&P said, "We expect offshore
activity to be hit particularly hard, given the higher costs,
higher operating risk, and longer payback periods for offshore
projects relative to onshore plays. Although we believe most
ongoing development projects will continue (as long as crews and
supplies are available), we expect postponements in reaching final
investment decisions on new projects and minimal exploration
activity." Offshore producers will likely remain more cautious
about committing capital to longer-term projects until oil price
fundaments are more stable and prices recover, which could affect
Valaris' revenues beyond the next several months.

The negative outlook reflects Valaris' unsustainable leverage,
deteriorating liquidity, and the likelihood that the company could
announce a debt exchange or restructuring that S&P would view as
distressed.

S&P said, "We would lower the rating if we foresee a default as
inevitable. This would most likely occur if the company announced a
debt exchange or restructuring we viewed as distressed. This could
also occur if the company missed an interest payment or filed for
bankruptcy.

"We could raise the rating if we no longer foresee a specific
default scenario in the next six months. This could occur if we no
longer believe a distressed debt exchange is likely and the company
improves its liquidity position."


[*] UK: Start-Ups May Get Gov't Lifeline as Part of Rescue Plan
---------------------------------------------------------------
Matthew Field, Hannah Boland and James Cook at The Telegraph report
that Britain's billion-dollar start-ups could be handed a
government lifeline as part of rescue plans under discussion to
support firms too big to benefit from the Treasury's GBP250 million
bailout fund.

According to The Telegraph, later stage technology firms, known as
"unicorns" that are valued at more than US$1 billion, have been
growing increasingly concerned about the lack of support available
to them.

Earlier this month, companies including Bulb, Graphcore and
Deliveroo wrote to the Treasury cautioning they were being cut out
of relief packages and calling for "urgent changes", The Telegraph
relates.

Since then, some steps have been taken to protect Britain's
burgeoning tech scene, with new Innovate UK funds and grants opened
up, and a GBP250 million Future Fund established, allowing the
Government to take stakes in businesses, The Telegraph notes.
Under the scheme, businesses can apply for as much as GBP5 million
of taxpayer cash, which then needs to be matched by outside
investors, The Telegraph discloses.





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

[*] Moody's: More Companies in Crossrover Zone Amid Pandemic
------------------------------------------------------------
Moody's Investors Service relates that the number of non-financial
companies in the "Crossover Zone" swelled to 96 through the first
quarter, a record high and up 26 from the end of 2019. The increase
was driven by the deteriorating global economic outlook, sharp
commodity price declines and significant financial market
volatility attributable to the spread of the coronavirus. These
factors resulted in a severe and extensive credit shock across many
sectors, regions and markets that led to potential fallen angels
soaring to 76, from 43 in the prior quarter. Potential rising stars
declined to 20 from 27.

* Twenty-one companies crossed over to speculative grade, and more
will likely be forthcoming with potential fallen angels climbing to
the highest level since Moody's began tracking this data in 2008.

Forty-seven new potential fallen angels entered the zone in Q1,
with fundamental credit developments accounting for all but one,
which was tied to M&A activity. Forty-three potential fallen angels
were affected by the expectation that worldwide economic growth
will contract due to broad weakness in leisure travel and
discretionary consumer spending, as well as production disruptions
directly attributable to social-distancing measures. Fourteen
companies exited the zone with 13 crossing over to speculative
grade, while one had its rating withdrawn. An additional eight
companies skipped the zone altogether, being downgraded straight to
speculative grade.

* Potential fallen angels held $593 billion in debt at the end of
Q1, with both non-US and US debt piles at record highs.

That figure is a significant increase from the $341 billion at the
end of 2019, and more than double the prior four-year average of
about $275 billion. The increase was primarily attributable to
General Motors (Baa3 review for downgrade) and Kraft Heinz Foods
Company (Baa3 negative), each with about $29 billion in debt,
entering the zone along with Delta Air Lines Inc. (Baa3 review for
downgrade) and its $22 billion in debt and A.P. Moller-Maersk A/S
(Baa3 negative) and its $17 billion in debt. Debt among non-US
companies rose to $383 billion, from $294 billion, while debt among
US companies increased to $210 billion, from $47 billion. Both are
at the highest level since we began tracking this data in 2008.
Non-US debt levels are likely to recede next quarter as Petroleos
Mexicanos (PEMEX Ba2 negative) and its $166 billion in debt exits
the zone since it was downgraded in April 2020. The companies that
skipped the crossover zone going straight to speculative grade,
held about $92 billion in debt, with $40 billion from Occidental
Petroleum Corporation (Ba1 ratings under review for downgrade)
alone. » Twelve potential rising stars exited the zone, nine
because of negative rating or outlook actions. Seven of the nine
actions were related to the coronavirus outbreak, two due to
fundamental reasons, while three were upgraded to Baa3 because of
positive credit developments. Five companies entered the zone as
potential rising stars. Four because of improved credit
fundamentals and the other because of M&A activity. Potential
rising stars held $160 billion in debt at the end of the first
quarter.

The entire Moody's report is Moody's report is available at
https://bit.ly/2YaY3qd


[*] Unparallelled Global Recession Underway, Fitch Says
-------------------------------------------------------
Fitch Ratings has made further large cuts to global GDP forecasts
in its latest Global Economic Outlook (GEO) in response to
coronavirus-related lockdown extensions and incoming data flows.

"World GDP is now expected to fall by 3.9% in 2020, a recession of
unprecedented depth in the post-war period," said Brian Coulton,
Chief Economist at Fitch Ratings. "This is twice as large as the
decline anticipated in our early April GEO update and would be
twice as severe as the 2009 recession."

The decline in GDP equates to a USD2.8 trillion fall in global
income levels relative to 2019 and a loss of USD4.5 trillion
relative to our pre-virus expectations of 2020 global GDP. Fitch
expects eurozone GDP to decline by 7%, US GDP by 5.6%, and UK GDP
by 6.3% in 2020.

The biggest downward revisions are in the eurozone, where the
measures to halt the spread of the coronavirus have already taken a
very heavy toll on activity in 1Q20. Fitch has cut Italy's 2020 GDP
forecast to -8% following official indications that GDP already
fell 5% in 1Q20 and after a recent extension of the lockdown there.
Official estimates also point to France and Spain experiencing near
5% declines in GDP in 1Q20, with the Spanish outlook hit
particularly hard by the collapse in tourism. Even allowing for a
slightly less negative outlook for Germany - where the headroom for
policy easing is greater and the benefits of a recovery in China
will be felt more directly - eurozone GDP is expected to shrink by
7% this year.

No country or region has been spared from the devastating economic
impact of the global pandemic. Fitch now anticipates that GDP in
both the US and the UK - where lockdowns started a little later
than in the eurozone - will decline by more than 10% (not
annualised) in 2Q20, compared to forecasts of around 7% in our
early April update. This will result in annual GDP declines of
around 6%, despite aggressive macro policy easing.

A notable feature of this update is sharp further downward
revisions to GDP forecasts for emerging markets (EM). Falling
commodity prices, capital outflows and more-limited policy
flexibility are exacerbating the impact of domestic
virus-containment measures; Mexico, Brazil, Russia, South Africa
and Turkey have all seen big GDP forecast adjustments. "With China
and India both now expected to see sub-1% growth, we expect an
outright contraction in EM GDP in 2020, a development unprecedented
since at least the 1980s. We expect supply responses and a
relaxation of lockdowns to help oil prices to recover in 2H20 from
current lows, which are being exacerbated by storage capacity
issues in the US and elsewhere," Fitch said.

Several major economies recently have extended lockdown measures,
and Fitch now needs to incorporate national lockdowns of around
eight or nine weeks as a central case assumption for most major
advanced economies. This contrasts to Fitch's previous assumption
of around five weeks. An extra month of lockdown would, all else
being equal, reduce the annual flow of income (GDP) by around 2pp,
as outlined in Fitch's previous GEO update.

In addition, incoming data - including official 'flash' GDP
estimates for 1Q20, monthly activity indicators for March and
weekly labour market data - point to a daily loss of activity
through lockdown episodes of closer to 25% than the 20% assumed
previously. This is consistent with the recently released outturn
for growth in China when GDP declined by 10% qoq in 1Q20, a period
encompassing entry to and exit from a five-week lockdown.

"Macro policy responses have been unprecedented in scale and scope
and will serve to cushion the near-term shock. But with job losses
occurring on an extreme scale and intense pressures on small and
medium-sized businesses, the path back to normality after the
health crisis subsides is likely to be slow. Our forecasts now show
US and eurozone GDP remaining below pre-virus (4Q19) levels through
the whole of 2021," added Coulton.



                           *********


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

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

Copyright 2020.  All rights reserved.  ISSN 1529-2754.

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

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

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


                * * * End of Transmission * * *