---

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

                          E U R O P E

          Thursday, May 14, 2020, Vol. 21, No. 97

                           Headlines



B U L G A R I A

EUROHOLD BULGARIA: Fitch Maintains 'B' LT IDR on Watch Negative
HUVEPHARMA EOOD: S&P Alters Outlook to Stable & Affirms 'BB' ICR


F R A N C E

AUTONORIA 2019 FCT: S&P Puts B-(sf) F-Dfrd Note Rating on Watch Neg
MAVIC: Placed in Receivership by Grenoble Court
RUBIS TERMINAL: Moody's Rates EUR410MM Senior Secured Notes 'B1'
RUBIS TERMINAL: S&P Assigns 'B+' Long-Term ICR, Outlook Stable


G R E E C E

[*] Moody's Deposit Rating Outlook on 5 Greek Banks Now Stable


I R E L A N D

LUNAR FUNDING I: S&P Puts Series 6 Notes' 'BB' Rating on Watch Neg.


R U S S I A

IC STERKH: Liabilities Exceed Assets, Inspection Shows


S W E D E N

[*] SWEDEN: Bankruptcies Amid Coronavirus Outbreak Slowing in May


U N I T E D   K I N G D O M

DAWSONS MUSIC: Enters Administration, Seeks Buyer for Business
GODIVA GROUP: Enters Administration, 35 Jobs Affected
KCA DEUTAG: S&P Cuts Issuer Rating to 'D' on Standstill Agreement
NEXT CREDIT: Enters Liquidation After Shareholder Pulls Funding
PETRA DIAMONDS: Moody's Cuts CFR to Caa3, Outlook Negative


                           - - - - -


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

EUROHOLD BULGARIA: Fitch Maintains 'B' LT IDR on Watch Negative
---------------------------------------------------------------
Fitch Ratings has maintained Eurohold Bulgaria AD and its core
insurance subsidiaries' ratings on Rating Watch Negative.

KEY RATING DRIVERS

The rating actions are based on Fitch's current assessment of the
impact of the coronavirus pandemic, including its economic impact,
under a set of rating assumptions. These assumptions were used by
Fitch to develop pro-forma financial metrics for Eurohold that are
compared with both rating guidelines defined in its criteria, and
relative to previously established Rating Sensitivities for
Eurohold.

The RWN reflects that under its rating case assumptions Eurohold's
pro-forma financial leverage ratio weakens to above 80% from 69% at
end-2019. Fitch excludes the portion of goodwill created in common
control transactions from the FLR calculation. However, it
anticipates a weaker pro-forma FLR to be offset by stable retained
earnings driven by reduced claims frequency in Eurohold's motor
insurance business.

In addition, the RWN also considers Eurohold's stated intention to
continue to pursue the acquisition of CEZ a.s.'s Bulgarian assets
(CEZ assets) despite the rejection of the proposed deal by
Bulgaria's competition authority in October 2019.

The group's consolidated capital strength measured by Fitch's Prism
Factor-Based Capital Model (Prism FBM) was 'Weak', both at end-2019
and under its pro forma rating case assumptions. Fitch fully
deducts goodwill from available capital, which significantly
reduces the Prism FBM score due to the large amount of goodwill
carried on Eurohold's balance sheet. Fitch expects capitalisation
of the Euroins Insurance Group and its key operating subsidiaries
to remain fully in compliance with regulatory solvency
requirements, and to maintain solvency capital requirement ratios
above 100%.

Eurohold's fixed charge coverage improved to 3x in 2019 due to
lower interest expenses but would weaken to 2x under its pro-forma
rating assumptions. The FCC remains pressured by rapid debt
accumulation between 2014 and 2016.

Eurohold has no significant refinancing need until 2021 when PLN45
million Euro Medium Term Notes and EUR10 million subordinated debt
mature. Fitch believes Eurohold's liquidity situation will remain
adequate for 2020 based on the high cash balance of BGN92 million
at end-2019. However, in Fitch's view, Eurohold has high overall
refinancing risk due to the relatively short-term and concentrated
maturity profile of its debt.

KEY ASSUMPTIONS

Assumptions for Coronavirus Impact (Rating Case):

Fitch used the following key assumptions, which are designed to
identify areas of vulnerability, in support of the pro-forma
ratings analysis:

  -- Decline in key stock market indices by 35% relative to 1
January 2020.

  -- Increase in two-year cumulative high-yield bond default rate
to 13%, applied to current non-investment grade assets, as well as
12% of 'BBB' assets.

  -- Both upward and downward pressure on interest rates, with
spreads widening (including high-yield by 400bp) coupled with
notable declines in government rates

  -- For the non-life and reinsurance sectors, a negative impact on
the industry level accident year loss ratio from COVID-19-related
claims at 3.5pp, partially offset by a favourable impact from the
auto line averaging 1.5pp.

RATING SENSITIVITIES

The ratings remain sensitive to a material change in Fitch's
rating-case assumptions with respect to the coronavirus pandemic.
Periodic updates to its assumptions are possible given the rapid
pace of changes in government actions in response to the pandemic,
and the pace with which new information is made available on the
medical aspects of the outbreak.

Factors that could, individually or collectively, lead to a
negative rating action/downgrade:

  -- A material adverse change in Fitch's rating assumptions with
respect to the coronavirus impact

  -- The group's FLR weakening to above 70%

  -- Approval of the proposed acquisition of CEZ assets combined
with an adverse impact of the financing structure on the key
financial ratios of the enlarged Eurohold group.

  -- FCC falling below zero on a sustained basis

  -- The Solvency 2 ratios of the group's main operating
subsidiaries falling below 100%

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

  -- A material positive change in Fitch's rating assumptions with
respect to the coronavirus impact

  -- Fitch could resolve the RWN and assign a Stable Outlook if the
FLR does not breach the 70% downgrade trigger in 2020 and if the
proposed acquisition of CEZ assets is rejected by the regulator.

  -- The FLR improves below 55% for a sustained period and FCC
improves above 1.5x for a sustained period

  -- Prism FBM score improves to 'Somewhat Weak'

Stress Case Sensitivity Analysis

  -- Fitch's stress case assumes a 60% stock market decline,
two-year cumulative high-yield bond default rate of 22%, high-yield
bond spreads widening by 600bp, more prolonged declines in
government rates, and an adverse non-life industry-level loss ratio
impact of 7pp for COVID-19 claims that is partially offset by a
favourable 2pp impact for motor.

  -- The implied-rating impact under the stress case would be a
one- or two-notch downgrade of the rating.

ESG CONSIDERATIONS

The highest level of ESG credit relevance, if present, is a score
of 3. This means ESG issues are credit-neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

Eurohold Bulgaria AD

  -- LT IDR B; Rating Watch Maintained

  -- Senior unsecured; LT B; Rating Watch Maintained

Insurance Company EIG Re AD

  -- Ins Fin Str BB-; Rating Watch Maintained

Euroins Romania Asigurare-Reasigurare S.A.

  -- Ins Fin Str BB-; Rating Watch Maintained

Insurance Company Euroins AD

  -- Ins Fin Str BB-; Rating Watch Maintained

HUVEPHARMA EOOD: S&P Alters Outlook to Stable & Affirms 'BB' ICR
----------------------------------------------------------------
S&P Global Ratings revised the outlook to stable from positive and
affirmed the 'BB' long-term issuer credit rating on Huvepharma
EOOD.

The outlook revision to stable from positive reflects increased
financial leverage as result of slower-than-expected returns on
investments and profitability erosion.  Huvepharma embarked on a
strategic investment phase comprising a new fermentation facility
in Peshtera and new production unit in Razgrad. This saw capital
expenditure (capex) increase to EUR131 million in 2019 and EUR103
million in 2018, from EUR61 million in 2017. The Peshtera project
was completed by year-end 2019, after being initially slated for
June. Similarly, the new production unit in Razgrad should be fully
operational by the end of second-half 2021, after being initially
expected at year-end 2019. The group's profitability deteriorated
in 2019 despite strong revenue growth of 12.9% to EUR548 million.
S&P Global Ratings-adjusted EBITDA remained stable at EUR121.6
million and consequently S&P Global Ratings-adjusted EBITDA margin
reduced. This was the result of higher operational expenses due to
external active pharmaceutical ingredient (API) sourcing, some
restructuring costs related to recent acquisitions, and aggressive
enzyme pricing from competition. The latter reflects that the group
can be subject to pricing pressure due to the commoditized nature
of part of its products, but management believes that price cuts
have already been absorbed and does not anticipate additional
pressure.

S&P said, "We remain confident that strategic investments will
translate into profitable growth.  Historically, the group
benefited from its vertical integration as an API producer.
However, over the years and with increased growth, it has had to
source a more meaningful portion of APIs externally in order to
meet demand from customers. With the completion of investment
projects, including a 50% increase in fermentation capacity, the
group can now meet at least 90% of its API needs, which we believe
should materially reduce costs and support profitability
improvement. Furthermore, we understand that Huvepharma will be
supplying other players in the animal pharmaceutical industry at
good levels of profitability. We note that the shortage in the
global API market a few years ago (by year-end 2017) followed the
Chinese government's decision to implement more stringent
environmental requirements." This saw many players reduce
production and others close down, leading to increased API prices.
Huvepharma's EBITDA margin should also be supported by a more
favorable business mix thanks to increased sales of highly
profitable products such as Moninsin, Monimax, and OptiPhos and
portfolio rationalization following recent acquisitions including
Agrilabs (closed Jan. 5, 2018) in the U.S. and Qalian (closed Sept.
5, 2018) in France.

S&P said, "We believe that Huvepharma has a reasonable pipeline of
products, but approvals could be delayed.  Huvepharma's products
include feed additives such as Monimax, OptiPhos Plus, and
Ractopamine; anti-inflammatory products such as generics of
Ketoprofen and Meloxicam; and a portfolio of vaccines. The latter
is a more complex segment where the group has no established
presence at this stage. In recent years, Huvepharma's performance
in the U.S. was below budget due to increased scrutiny on
ionophores and antibiotics usage. Globally, the group has gained
market share in this segment following the exit of larger players.
We note that in 2019 Huvepharma obtained Food and Drug
Administration (FDA) approval for Monovet in the U.S. and it plans
to very gradually gain market share in the country's cattle market.
The approval is an important milestone, but the group will have to
obtain additional approvals to succeed. This is because bundled
offerings will contribute to market share gains.

"We believe Huvepharma is positioned in a favorable end market,
with solid demand and lower risks compared with the human
pharmaceutical industry.  Despite limited patents, we believe the
animal health industry bears less risk because of the very long
life cycle of products, much more limited investments in research
and development (R&D), and the absence of patent cliffs.
Furthermore, the global animal health market, excluding the
companion animal segment should continue to expand. Although new
product launches remain important, the nature of the industry puts
somewhat less pressure on small players to get steady streams of
approvals.

"We believe that the COVID-19 pandemic should have minimal effects
on the company and will not reduce growth prospects.  The companion
animal market will be affected by COVID-19 as visits to veterinary
practices are constrained by lockdowns. Huvepharma is not present
in this segment and 92% of its production is linked to the food
chain, which we believe should remain resilient overall despite
some challenges--as recently experienced by U.S. meat processing
companies in their factories. Furthermore, we have no concerns
regarding the supply chain as Huvepharma is vertically integrated
and has internally secured production. We believe the effects
should remain very limited and could mainly translate into
additional distribution costs. The group's first-quarter results
are encouraging, with revenue growth of 14% to EUR144.7 million
compared with EUR127 million for the same period of 2019, and
improving EBITDA margin.

S&P acknowledges scrutiny of antibiotics usage in the animal market
and management's stance on the issue.  An important portion of
Huvepharma's sales stems from ionophores and antibiotics.
Management argues against the use of these antibiotics for
preventive purposes but only as a treatment in necessary
situations. This is because unnecessary use of antibiotics' reduce
their efficacy. Instead, management sees enzymes and probiotics as
an indirect antibiotics replacement for preventive usage.

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 stable outlook reflects our view that the company
will demonstrate strong revenue growth while progressively
improving its EBITDA margin. This should translate into adjusted
debt to EBITDA decreasing toward 3x. The stable outlook also
reflects our assumption of positive free operating cash flow
(FOCF).

"We would downgrade Huvepharma if it fails to reduce its adjusted
debt to EBITDA toward 3x in 2020. This could happen due to
lower-than-expected demand or the absence of profitability
improvement.

"We could also take a negative rating action if FOCF remained
negative or there was heightened refinancing risk because the
company did not refinance its debt in the coming months.

"We would take a positive rating action if Huvepharma increased its
S&P Global Ratings-adjusted EBITDA margin toward 27% and
demonstrated its ability and commitment to sustain S&P Global
Ratings-adjusted debt to EBITDA comfortably at 2.0x-2.5x while
generating FOCF approaching EUR100 million per year."




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

AUTONORIA 2019 FCT: S&P Puts B-(sf) F-Dfrd Note Rating on Watch Neg
-------------------------------------------------------------------
S&P Global Ratings placed on CreditWatch negative its ratings on
seven classes of notes issued by four German, French, and Spanish
ABS transactions.

The rating actions follow our updated credit and cash flow
assumptions that S&P applies in its European auto and consumer ABS
analysis. The adjustments reflect the effects of COVID-19 and the
associated lockdown and social distancing measures introduced
across Europe by the respective governments since early March.

S&P said, "Following the application of our COVID-19 adjustments on
European auto and consumer ABS transactions we rate, we have placed
on CreditWatch negative seven ratings in four transactions. In our
analysis, we have increased our base-case default rate assumptions
for each transaction. As we do not currently believe that the
expected level of macroeconomic stress warrants an overarching
revision to the stressed default assumptions at the 'BBB' rating
level or higher, we left these assumptions unchanged. We have also
tested the impact of forbearance measures, like payment holidays,
and disruptions in recovery processes in these transactions.

"Based on our updated credit and cash flow analysis, tranches rated
'BBB-' and below in these transactions are exposed to a decline in
transaction performance due to the lower structural credit
enhancement available. Further, all four transactions are still in
their revolving phase, and consequently all rated notes did not
benefit from an increase of credit enhancement since closing.

"For ABS tranches rated 'B-' and below, in addition to the above
factors, we apply our 'CCC' criteria. Our rating analysis makes
additional considerations before assigning ratings in the 'CCC'
category or 'B-' ratings.

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 will continue to review the ratings on our remaining
transactions in light of these macroeconomic events and transaction
performance. We will take further rating actions, including
CreditWatch placements, as we deem appropriate. We will seek to
resolve the CreditWatch placements within the next 90 days."

  Ratings List

  Rating

  Issuer name            Class              To         From
  Autonoria 2019 FCT     F-Dfrd   B- (sf)/Watch Neg    B- (sf)
  Autonoria 2019 FCT     E-Dfrd   BB (sf)/Watch Neg    BB (sf)
  BBVA Consumo 10 Fondo
     De Titulizacion     C        B (sf)/Watch Neg     B (sf)
  E-Carat 10 FCT         F-Dfrd   B- (sf)/Watch Neg    B- (sf)
  E-Carat 10 FCT         E-Dfrd   BB (sf)/Watch Neg    BB (sf)
  E-Carat 10 FCT         G-Dfrd   CCC+ (sf)/Watch Neg  CCC+ (sf)
  RevoCar 2019-2 UG
   (haftungsbeschrankt)  D-Dfrd   BB (sf)/Watch Neg    BB (sf)


MAVIC: Placed in Receivership by Grenoble Court
-----------------------------------------------
Peter Stuart at Cyclist reports that wheel manufacturing giant
Mavic has been placed in receivership by a Grenoble court according
to reports from French national news sources, meaning the business
will likely be in control of its creditors.

French wheel brand Mavic employs around 250 staff, and has long
since been a prevalent wheel choice amongst high-end road bikes --
with wheels such as the Ksyrium and Aksium series being amongst the
best-selling in the UK.

Entering into receivership, slightly different to entering into
administration, will mean that Mavic has been appointed a
"receiver" by the court, likely on behalf of creditors, Cyclist
discloses.

The court has granted six months for the judicial redress
(redressement judiciaire) process, in which Mavic will be in the
control of a receiver and will need to find a business plan going
forward and potentially a new buyer for the company, Cyclist
relates.


RUBIS TERMINAL: Moody's Rates EUR410MM Senior Secured Notes 'B1'
----------------------------------------------------------------
Moody's Investors Service has assigned a Ba3 corporate family
rating and Ba3-PD probability of default rating to Rubis Terminal
Infra. Concurrently, Moody's assigned B1 instrument rating to the
company's EUR410 million senior secured notes maturing in 2025,
which the company intends to issue over the next days. The outlook
on all ratings is stable.

Its rating action assumes a successful conclusion of the envisaged
bond issuance in order to refinance the EUR410 million bridge loan
in relation with the separation of Rubis T from its parent company
Rubis SCA. With the funds obtained by this transaction Rubis T
redeemed EUR233 million of shareholder loans and refinanced EUR195
million of existing debt, with the remaining funds used for
transaction fees. The transaction follows the disposal of 45% of
the 99.4% equity stake of Rubis T by Rubis SCA to the
infrastructure fund I Squared on January 21, 2020. Rubis SCA
remains committed to Rubis T and deems its controlling holdings as
strategic.

RATINGS RATIONALE

The Ba3 corporate family rating of Rubis T is underpinned by its
(1) established and entrenched position in Europe, France in
particular, in a market with high entry barriers; (2) good revenue
visibility, with over 80% of it coming from fixed rental fees and
around 90% of the contracted capacity is based on three or more
year tenor / or the contracts consistently renewed for the last
five years; (3) generally competitive asset base in good locations,
with some assets having no or limited competition in their
catchment areas; (4) healthy EBITDA margin in fifties %, which is
among the best in the industry; (5) already relatively high and
growing share of chemicals (around 30%), with good structural
growth; (6) long-standing relationships with customers; and (7)
shareholders' willingness to support growth of RT, with Rubis SCA
being a listed company with established access to market and
healthy capital structure.

At the same time Rubis T is primarily constrained by its (1)
relatively small scale and lower geographic diversification
compared to other rated peers in the bulk liquid storage
operations; (2) somewhat higher volatility of results compared to
peers, primarily owed to speculative storage in Turkey; (3) fairly
high starting proforma leverage (6.3x as adjusted by us at end of
2019) and expected to decline towards 5.5x by end of 2020, which
positions the company weakly in the rating category, leaving
limited cushion for underperformance; (4) track record of negative
free cash flow (FCF) generation in the past three years, which is
unlikely to turn meaningfully positive in the coming two years
given the company's expansion plans; (5) exposure to pricing risk
at contract renewals; (6) some M&A risk, yet subject to debt
incurrence covenants (5.5x net leverage); and (7) longer-term risks
with regards to lower trade flows for refined products in Europe.

In Moody's view the impact of COVID-19 on Rubis T results should be
fairly limited in 2020 as the lower amount of throughput volumes
and related fees is offset to a large degree by improved activity
in its Turkey terminal which provides storage mainly for contango
traders. Furthermore, currently strong demand for hydrocarbon
products as a result of oil production exceeding demand should
allow moderate price increases of storage rents in 2020. However,
at the same time Moody's identifies the risk that storage rents and
volumes could come under pressure in the medium term depending on
the duration and severity of the recession caused by Covid-19 in
Rubis T main market France.

LIQUIDITY

The company's liquidity is good, as the company is able to cover
all the basic cash obligations, including maintenance capital
spending and upcoming debt maturities in the next 12-18 months. As
of December 31, 2019 Rubis, T, had EUR34 million cash on balance,
of which EUR16 million expected to be consumed in the proposed
refinancing transaction. Moody's expects the company to be largely
free cash flow neutral in the next 12-18 months. As part of the
proposed transaction, the company will also have a EUR75 million
committed revolving credit facility available, which the company at
times plans to use for its expansion programme. The facility
contains a springing net leverage covenant, which will be only
tested when the facility is more than 40% drawn. Even though
Moody's does not expect Rubis T to draw more than 40%, there is
currently ample headroom under the covenant.

STRUCTURAL CONSIDERATIONS

The rating of the EUR410 million senior secured notes at B1 one
notch below the CFR of Ba3 is primarily driven by the relatively
sizable amount of debt ranking ahead of the notes contractually
and/or structurally and hence likely to receive an above-average
recovery in a default scenario. These instruments include the EUR75
million super senior RCF, as well as a number of bank loans at
operating subsidiaries including: EUR75 million drawn under the ABN
AMRO Credit Facility for the terminal in Rotterdam, EUR18.3 million
in the Turkish terminal, EUR17.4 million in Antwerp subsidiary and
about EUR10.5 million in various French subsidiaries. In addition,
the security package of the bond is relatively weak consisting of
share pledges of the guarantor group representing a minimum of 75%
of the group's EBITDA and pledges on holding and intercompany bank
accounts.

ESG CONSIDERATIONS

Rubis T stores hazardous liquids, including petroleum and chemical
products, as well as agri-food products including molasses and
edible oils. Its facilities in Europe are therefore subject to
stringent regulations. Storage operations do not involve any
industrial processing, that is why air discharges and energy
consumption are limited. Overall, the company works on reducing its
carbon footprint, as per the company's statement, they have already
achieved zero CO2 emissions in its Rotterdam terminal.

Corporate risks balance Rubis T's business risks with a relatively
aggressive starting leverage and limited track record of the
company's ability and willingness to sustainably reduce leverage.

OUTLOOK

The stable outlook reflects its expectation that Rubis T will be
able to deliver EBITDA growth in the next 12-18 month that would
improve its Moody's adjusted debt/EBITDA below 6.0x, while
maintaining an adequate liquidity position.

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

Moody's could consider to upgrade Rubis T' rating if adjusted
debt/EBITDA declines to or below 5.0x on a sustainable basis, while
maintaining a good liquidity position.

The ratings could be downgraded if Rubis T's Moody's adjusted
debt/EBITDA remains 6.0x and/or EBITDA/Interest Expense declines to
below 3.0, on a sustainable basis. Weakened liquidity and
materially lower headroom under the financial covenants could also
exert negative pressure on the rating.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Midstream
Energy published in December 2018.

COMPANY PROFILE

Rubis T is one of the leading terminal operators in Europe with 13
facilities and capacity of 3.6 million m3 across four countries
(France, Netherlands, Belgium and Turkey). Rubis T's core activity
is to provide storage for wide and diversified range of liquid
products including refined products such as diesel and gasoline,
chemical products, fertilizers and biofuels, but it also provides
additional value-added services such as blending and coloring. The
company also owns a wholesale distribution business in France that
represented around half of its group revenues, but just 1% of its
reported EBITDA in 2019.

On January 21, 2020, I Squared and Rubis SCA have signed an
agreement, whereby I Squared would indirectly purchase 45% of the
99.4% equity stake held by Rubis SCA in Rubis T, which will be
jointly controlled by both investors. Both shareholders contributed
equity to Rubis T.

RUBIS TERMINAL: S&P Assigns 'B+' Long-Term ICR, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings assigned its 'B+' long-term issuer credit and
issue ratings to Rubis Terminal S.A. (Rubis Terminal) and the
senior secured notes, which have a recovery rating of '3'.

Rubis Terminal's credit quality reflects its leading position in
France's liquid bulk product storage segment, but smaller size and
limited diversification compared with peers, and its expectation of
significant debt-funded investments.

S&P said, "We view Rubis Terminal as a small player in the liquid
storage industry, with expected S&P Global Ratings-adjusted EBITDA
of about EUR100 million in 2020, and EBITDA growth subject to a
significant expansion plan. The company's high concentration in
French fuel storage and limited protection offered by its
short-weighted-average contract life are compensated by high
profitability thanks to its solid incumbent position in its key
market. We understand that the company's objective, with support
from its new shareholding structure, is to focus on its expansion
plan in core midstream activities in key markets and
internationally. We think the completion of the brownfield
expansion projects--new tanks built at its existing terminals--in
the ARA zone will reinforce its risk profile, providing further
diversification in profitable specialty chemicals. At year-end
2020, the company's gross debt is expected to be about EUR510
million, translating into S&P Global Ratings-adjusted debt to
EBITDA of about 5.8x (equivalent to reported net debt to EBITDA of
slightly above 5.5x). Rubis Terminal will be jointly controlled by
the energy group Rubis SCA and American infrastructure fund I
Squared. We expect debt metrics to stay at current levels on the
back of positive FOCF, disciplined investments, and prudent
financial management.

"Rubis Terminal's day-to-day operations have continued despite the
COVID-19 pandemic and we expect the effect on credit metrics to be
contained.

"The current market contango structure, due to petroleum fuel
consumption declines and industrial supply chain disruption, has
led to higher demand for storage of petroleum, chemicals, and other
fuels. We expect Rubis Terminal to benefit from higher utilization
rates at its terminals versus 2019, while storage revenue is
relatively protected by the take-or-pay contracted nature of most
of activities. Should COVID-19-related effects be extended, we view
the company as well-positioned to renew contracts efficiently and
at higher prices, supporting EBITDA margin. We do not expect Rubis
Terminal's capacity expansion and maintenance works to be
significantly delayed.

"In our view, the company's business risk profile is constrained by
its limited scale, exposure to few geographies, and substantial
re-contracting risk.

"We view the company as a small storage player, similar to LBC Tank
Terminals and smaller than many rated peers in the midstream
industry. Rubis Terminal has some geographically strategic
terminals in France and the ARA zone. It operates 13 terminals with
a storage capacity of 3.6 million cubic meters across four
countries, with 70% of capacity concentrated in France. Terminals
in France, Belgium, and the Netherlands mainly store chemicals and
petroleum products and together accounted for about 90% of EBITDA.
The Turkish terminal is exposed to high geopolitical risk in the
business environment associated with U.S. sanctions, which have
hampered cash flow generation in recent years, rendering it less
strategic in the long term, in our view. Rubis Terminal has
significant contract renewal risk as the short-weighted-average
life of its contracts is less than three years, exposing it to
demand fluctuations and ultimately competition. The company is not
directly exposed to commodity-price volatility, since 83% of
storage revenue is covered by firm take-or-pay contracts where
customers pay a fixed fee for the storage capacity, which is
independent of usage and provides a certain level of cash-flow
stability. These contracts typically have price escalation clauses
and evergreen provisions with automatic rollovers for an additional
12 months. The company's remaining storage revenue is derived from
volume-dependent throughput fees and ancillary value-added services
such as heating, blending, and drumming (putting product into steel
drums), which could vary if adverse macroeconomic and industry
trends (such as lower demand for chemicals or current disruption of
exchange flows due to the COVID-19 pandemic and related-lockdowns)
lead to reduced throughput and utilization levels. Rubis Terminal's
client base is relatively solid, in our view, with a majority of
investment-grade customers and long-term client relationships.
Given the high level of uncertainties related to the pandemic and
our expectation of oil price recovery in 2020 (to about $50 per
barrel), we are not accounting for high storage demand in 2021."

However, this business risk is partially offset by the company's
leading positions in France, where high barriers to entry partly
protect it from higher competition, and the strategically located
ARA zone.

"In France, the scarcity of new strategic storage locations is
supported by heavy permitting process to store highly risky fuels,
notably to benefit from the switch in demand for storage to
gasoline from diesel, for which Rubis Terminal is well positioned.
The company has a good credit quality customer base, with long-term
relationships with key clients and diversity across more than 100
contracts. In France, Rubis Terminal's client base quality is
reinforced by the presence of state-owned Societe Anonyme de
Gestion de Stocks de Securite (AA/Stable/A-1+; SAGESS), the French
strategic reserves manager. Petroleum storage for SAGESS accounts
for about 16% of Rubis Terminal's 2018 storage revenue, with
take-or-pay long-term contracts. We view positively Rubis
Terminal's presence in the strategic ARA zone, a European trading
hub for chemicals products, since the location faces sustained high
demand for independent storage by major industrial players present
on the site. These assets primarily handle specialty chemicals as
well as petroleum products and have good competitive positions, in
our view, with access to deep-water ports and historical
utilization rates close to 100%. As a result, the company benefits
from high barriers to entry and relatively stable earnings through
the cycle, with reported EBITDA of EUR90 million-EUR110 million in
2016-2019, including 50% of EBITDA from the Antwerp terminal joint
venture (JV), as well as relatively high EBITDA margins of
50%-60%.

"Rubis Terminal's current high debt and ambitious expansion plans
underpin our highly leveraged financial risk assessment.

"Although we view positively the company's actions to expand its
storage capacity with an enhanced capital structure, the high
financial leverage constitutes a credit weakness. After the planned
transaction, the company will have reported gross debt of about
EUR520 million, with limited potential for debt reduction depending
on the pace of investments and acquisitions. Rubis Terminal will
use its new EUR410 million bridge loan to refinance its shareholder
loan with Rubis SCA, pay an equity premium, and refinance some of
its debt. It expects to use its own cash flow generation, a new
EUR75 million credit facility, and potential financial support from
its shareholders to fund its expansion plan. We note the healthy
positive FOCF generation of the existing asset base, absent any
expansionary investments. We expect these investments to be focused
on expanding terminal capacity in France and at its Antwerp and
Rotterdam facilities, and be funded primarily with debt. We thus do
not expect significant deleveraging in the next two-to-three years,
with minimal FOCF (operating cash flow minus capital spending) in
2020 before gradually improving in 2021 and 2022 on the back of
improving EBITDA. We also take into consideration Rubis Terminal's
stated financial policy to maintain reported debt to EBITDA lower
than 5.5x (lower than 6.5x on an S&P Global Ratings-adjusted
basis). We view positively the commitment from shareholders Rubis
SCA and I Squared to support Rubis Terminal's growth plan, while
maintaining reported leverage lower than 5.5x, implying potential
capital injections if needed."

S&P bases its 'B+' issuer credit rating on the post-issuance
capital structure.

This includes:

-- About EUR410 million of senior secured notes.

-- Remaining debt of about EUR95 million, including the drawn
portion of a EUR75 million term loan maturing in 2027.

-- A new EUR75 million revolving credit facility (RCF), maturing
in 2027.

S&P said, "The stable outlook on Rubis Terminal reflects our
expectation that leverage will stay at about 5.6x in 2020-2021 as a
result of higher capital expenditure (capex) than the historical
average. The stable outlook is also based on our view that there
will be resilient demand for Rubis Terminal's storage products in
Europe, and the company will successfully execute its growth
capital plans.

"We could lower the rating if sector fundamentals deteriorated,
competition in Europe eroded storage pricing significantly, or
planned expansions were delayed, such that financial leverage were
higher than 6.5x on a sustained basis.

"We could also lower the rating on Rubis Terminal if we perceived
less willingness from Rubis SCA to support the company or if the
credit quality of the group deteriorated.

"Although unlikely in the near term, we could raise the rating if
Rubis Terminal successfully increases its size and scale,
demonstrating solid operating performance amid the COVID-19-related
economic recession, and reduced financial leverage to less than
5.0x on a sustained basis."




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

[*] Moody's Deposit Rating Outlook on 5 Greek Banks Now Stable
--------------------------------------------------------------
Moody's Investors Service has changed the outlook to stable from
positive on the long-term deposit ratings of Alpha Bank AE, Attica
Bank S.A., National Bank of Greece S.A., Pancretan Cooperative Bank
Ltd and Piraeus Bank S.A. The rating agency has also affirmed all
outstanding ratings of the five Greek banks, and said that the
outlook change takes into consideration the negative impact that
the Coronavirus pandemic will have on the economy and on these
banks' plans to further improve their asset quality and
profitability.

RATINGS RATIONALE

RATINGS RATIONALE FOR STABLE OUTLOOKS

The primary driver for its rating action on Greek banks is Moody's
expectation of a delay in implementing the banks' strategic plans
to further improve their asset quality and profitability in
2020-21, due to the impact on the Greek economy of the Coronavirus
pandemic. According to Moody's the coronavirus-induced slowdown in
economic activity will not only weigh on Greek banks' already weak
earnings, but also significantly challenge their ability to reduce
their elevated nonperforming exposures. Policy support measures and
regulatory forbearance will offset the adverse impact on their loan
quality to some extent. In addition, the rating agency expects
banks' capital to deteriorate moderately but remain above the
relaxed regulatory requirements. The revised rating outlook also
takes into consideration the improvements in banks' funding and
liquidity, which are unlikely to be significantly affected by the
pandemic.

Moody's regards the coronavirus outbreak as a social risk under its
environmental social and governance framework, given the
substantial implications for public health and safety.

Moody's expects economic conditions in Greece will worsen, with a
sharp slowdown in economic activity in 2020, when GDP is likely to
contract by around 5%, recovering to 4% growth in 2021. The
coronavirus outbreak has led to widespread shutdowns aimed at
halting the spread of the virus, which will stifle large sections
of the economy. Coronavirus-related travel restrictions will hit
the tourism sector in particular, which is one of the main pillars
of the Greek economy accounting for around 12% of the country's
GDP. At the same time, the rating agency anticipates a steep drop
in domestic demand will weigh on the transportation and logistics,
trade and manufacturing sectors, which will impact the
affordability of banks' related borrowers.

As a result of this economic slowdown, banks' asset quality will
remain weak, with NPEs persisting at high levels, around the 40% of
gross loans reported at the end of 2019. Banks' previously positive
rating outlook took into account the rating agency's expectation of
an improvement in Greek banks' asset quality, mainly via
securitisations or sales in 2020. However, Moody's now expects that
these transactions will be delayed and are likely to be completed
in 2021. Concurrently, rising unemployment and deteriorating
conditions in the tourism and trade sectors, which between them
account for 15% of banks' loan books, will likely lead to an
increase in new NPEs although the extent of the deterioration is
uncertain. Government support measures including additional
liquidity and subsidised credit facilities for businesses will help
slow new NPE formation, as will payment moratoriums and extended
loan repayment periods for banks' more vulnerable companies and
households.

The rating outlook change to stable from positive, also considers
banks' already weak profitability that will come under pressure in
the next 12-18 months, Moody's said. Banks' profitability will
weaken as coronavirus-related economic and financial market
disruption will likely impact good quality lending growth and erode
fee and commission income, impacting core pre-provision income. Net
interest income will remain low, due to falling loan balances and
reduced new business, but it expects limited deterioration since
banks will continue to accrue interest despite the government
relief measures for borrowers, while robust disbursements to
corporates in the first quarter 2020 will also be supportive.
Continued high loan-loss provisioning needs will weigh further on
profitability, although a regulatory exemption allowing banks not
to immediately categorise loans affected by the coronavirus
outbreak as nonperforming "Stage 3" loans will mitigate the
negative impact on banks' performance.

Moody's added that the outlook change also reflects its expectation
that regulatory capital adequacy will decline marginally but remain
above minimum requirements that have been relaxed throughout the
EU. Banks' weak profitability will undermine capital retention,
pressuring their core capital metrics.

The stable outlook also considers the rating agency's view that
banks' funding and liquidity has strengthened significantly in the
last few years and will remain broadly unchanged over the outlook
period. Greek banks will likely make increased usage of European
Central Bank funding facilities at lower cost, while customer
deposits should remain on balance stable assisted by the government
support measures and reduced household consumption, providing a
cheap and stable funding source.

RATIONALE FOR AFFIRMATION OF INDIVIDUAL BANKS' RATINGS

ALPHA BANK AE

The affirmation of Alpha Bank AE's Caa1 long-term deposit ratings,
as well as the affirmation of all other outstanding ratings, is
driven by the bank's Baseline Credit Assessment of caa1 that was
also affirmed, with no resulting rating uplift through the rating
agency's loss given failure analysis.

The bank's BCA balances the future prospects for further
enhancements in its asset quality and profitability against the
negative impact from the recession expected in 2020. The bank's
immediate challenge includes its still-very-high NPEs of 44.8% of
gross loans as at December 2019. Alpha Bank's updated strategy for
2020-22 envisages the acceleration of NPE reduction, which Moody's
expects to be delayed given the current setback to the Greek
economy caused by the pandemic. The bank's BCA also takes into
account its relatively high regulatory capital ratios with a
reported Common Equity Tier 1 ratio of 17.9% as of December 2019,
the highest among its local peers. The ratings affirmation also
considers the bank's still weak profitability (EUR145 million
profit before tax in 2019), which will be pressured in 2020,
although has good prospects to improve significantly when the
economy recovers in 2021 and the bank completes its NPE
securitisations.

ATTICA BANK S.A.

The affirmation of Attica Bank S.A.'s Caa3 long-term deposit
ratings reflects the affirmation of its BCA of caa3, with no rating
uplift from Moody's LGF analysis.

Attica Bank's BCA reflects its high level of NPEs at 46% of its
gross loans as at December 2019, which although significantly lower
in absolute terms (approximately EUR850 million) than other local
banks, remains the most immediate challenge and the biggest
solvency risk for the bank. It also considers its modest capital
levels, with a CET1 capital ratio of 11.4% as at December 2019,
which is lower than that of its larger domestic peers, and also
includes a high level of deferred tax credits. The bank's losses
before tax amounted to EUR23.7 million for 2019, and it will be
challenged to report positive profitability in 2020, constrained by
the downside risks of the pandemic on the Greek economy.

NATIONAL BANK OF GREECE S.A.

National Bank of Greece S.A.'s long-term deposit ratings
affirmation at Caa1 is driven by the BCA affirmation at caa1, with
Moody's LGF analysis resulting in no rating uplift from its BCA.

The bank's BCA reflects the immediate challenge to reduce its very
high level of group NPEs, which represented 31.3% of gross loans as
at December 2019, and also improve further its recurring
profitability (EUR235 million core operating profit before tax in
2019). NBG's BCA also takes into consideration its sufficient
regulatory capital, with a CET1 capital ratio of 16.1% as at
December 2019, including a high level of DTCs. The bank's BCA
balances the ongoing enhancements and better prospects for the
bank's asset quality and profitability, as well as the strongest
funding/liquidity position among its local peers, counterbalanced
by the downside risks stemming from the impact of the coronavirus
outbreak on the Greek economy.

PANCRETAN COOPERATIVE BANK LTD

The affirmation of Pancretan Cooperative Bank Ltd's Caa2 long-term
deposit ratings reflects the affirmation of the bank's BCA at caa3
and also Moody's assessment of potential loss severity for senior
creditors and counterparties through the agency's advanced LGF
analysis, which provides one notch of rating uplift from its BCA.

The BCA takes into consideration the bank's relatively narrow
franchise, which caters to the financing needs of small and
medium-sized enterprises, mainly on the island of Crete, which
limits the geographical diversification of its assets and earnings.
The BCA also takes into account the expected increase in loan
impairments in 2020-21 in view of the pandemic and the potential
impact on the tourism sector that the bank is highly exposed. The
ratings are constrained by the bank's high level of problem loans
at 63.4% of gross loans, combined with a modest provisioning
coverage of 36% as at December 2019, which pose downside risks to
its solvency. The bank had the lowest CET1 capital ratio among
Greek banks at around 10.2% as of December 2019, which incorporates
a high level of DTCs.

PIRAEUS BANK S.A.

The affirmation of Piraeus Bank S.A.'s Caa2 long-term deposit
ratings is consistent with the affirmation of the bank's BCA at
caa2, with no rating uplift through the agency's LGF analysis.

Piraeus Bank's BCA of caa2 reflects its weak asset quality with
very high level of group NPEs, which were 49% of its gross loans as
at December 2019, the highest among its large domestic peers.
Moody's believes that further improvements in the bank's
fundamentals are currently constrained by the downside risks
stemming from the negative effects of the coronavirus outbreak on
the Greek economy. Piraeus Bank's BCA also takes into account its
capital levels that are currently above its Supervisory Review and
Evaluation Process requirement, with a pro forma CET1 capital ratio
of 14.8% as of December 2019, although incorporating a high level
of DTCs.

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

Over time, upward deposit and senior unsecured debt rating pressure
could arise following improvements in the country's macro-economic
environment, and once the economy normalises from the effects of
the Coronavirus resulting in better asset quality, profitability
and capitalisation. The return of more deposits back to the banking
system would also increase the pool of unsecured obligations
available to banks, which could trigger a deposit and senior debt
rating upgrade driven by the rating agency's LGF approach.

Greek banks' deposit and senior unsecured debt ratings could be
downgraded in the event that the pandemic substantially affects
domestic consumption and economic activity for an extended period
of time, which will severely affect banks' underlying financial
fundamentals that have gradually been recovering from a very low
base.

LIST OF AFFECTED RATINGS

Issuer: Alpha Bank AE

Affirmations:

Long-term Counterparty Risk Ratings, affirmed B3

Short-term Counterparty Risk Ratings, affirmed NP

Long-term Bank Deposits, affirmed Caa1, outlook changed to Stable
from Positive

Short-term Bank Deposits, affirmed NP

Long-term Counterparty Risk Assessment, affirmed B2(cr)

Short-term Counterparty Risk Assessment, affirmed NP(cr)

Baseline Credit Assessment, affirmed caa1

Adjusted Baseline Credit Assessment, affirmed caa1

Senior Unsecured Medium-Term Note Program, affirmed (P)Caa1

Backed Senior Unsecured Medium-Term Note Program, affirmed (P)B1

Subordinate Regular Bond/Debenture, affirmed Caa2

Subordinate Medium-Term Note Program, affirmed (P)Caa2

Outlook Action:

Outlook changed to Stable from Positive

Issuer: Alpha Credit Group plc

Affirmations:

Backed Senior Unsecured Regular Bond/Debenture, affirmed Caa1,
outlook changed to Stable from Positive

Backed Senior Unsecured Medium-Term Note Program, affirmed (P)Caa1

Backed Subordinate Regular Bond/Debenture, affirmed Caa2

Backed Subordinate Medium-Term Note Program, affirmed (P)Caa2

No Outlook assigned

Issuer: Alpha Group Jersey Limited

Affirmations:

Backed Senior Unsecured Medium-Term Note Program, affirmed (P)Caa1

Backed Subordinate Medium-Term Note Program, affirmed (P)Caa2

Backed Preferred Stock Non-cumulative, affirmed Ca(hyb)

No Outlook assigned

Issuer: Attica Bank S.A.

Affirmations:

Long-term Counterparty Risk Ratings, affirmed Caa1

Short-term Counterparty Risk Ratings, affirmed NP

Long-term Bank Deposits, affirmed Caa3, outlook changed to Stable
from Positive

Short-term Bank Deposits, affirmed NP

Long-term Counterparty Risk Assessment, affirmed B3(cr)

Short-term Counterparty Risk Assessment, affirmed NP(cr)

Baseline Credit Assessment, affirmed caa3

Adjusted Baseline Credit Assessment, affirmed caa3

Outlook Action:

Outlook changed to Stable from Positive

Issuer: Emporiki Group Finance Plc

Affirmations:

Backed Senior Unsecured Regular Bond/Debenture, affirmed Caa1,
outlook changed to Stable from Positive

No Outlook assigned

Issuer: National Bank of Greece S.A.

Affirmations:

Long-term Counterparty Risk Ratings, affirmed B2

Short-term Counterparty Risk Ratings, affirmed NP

Long-term Bank Deposits, affirmed Caa1, outlook changed to Stable
from Positive

Short-term Bank Deposits, affirmed NP

Long-term Counterparty Risk Assessment, affirmed B1(cr)

Short-term Counterparty Risk Assessment, affirmed NP(cr)

Baseline Credit Assessment, affirmed caa1

Adjusted Baseline Credit Assessment, affirmed caa1

Senior Unsecured Medium-Term Note Program, affirmed (P)Caa1

Backed Senior Unsecured Medium-Term Note Program, affirmed (P)B1

Subordinate Regular Bond/Debenture, affirmed Caa2

Subordinate Medium-Term Note Program, affirmed (P)Caa2

Backed Other Short Term, affirmed (P)NP

Outlook Action:

Outlook changed to Stable from Positive

Issuer: NBG Finance plc

Affirmations:

Backed Senior Unsecured Medium-Term Note Program, affirmed (P)Caa1

Backed Subordinate Medium-Term Note Program, affirmed (P)Caa2

No Outlook assigned

Issuer: Pancretan Cooperative Bank Ltd

Affirmations:

Long-term Counterparty Risk Ratings, affirmed B3

Short-term Counterparty Risk Ratings, affirmed NP

Long-term Bank Deposits, affirmed Caa2, outlook changed to Stable
from Positive

Short-term Bank Deposits, affirmed NP

Long-term Counterparty Risk Assessment, affirmed B3(cr)

Short-term Counterparty Risk Assessment, affirmed NP(cr)

Baseline Credit Assessment, affirmed caa3

Adjusted Baseline Credit Assessment, affirmed caa3

Outlook Action:

Outlook changed to Stable from Positive

Issuer: Piraeus Bank S.A.

Affirmations:

Long-term Counterparty Risk Ratings, affirmed B3

Short-term Counterparty Risk Ratings, affirmed NP

Long-term Bank Deposits, affirmed Caa2, outlook changed to Stable
from Positive

Short-term Bank Deposits, affirmed NP

Long-term Counterparty Risk Assessment, affirmed B2(cr)

Short-term Counterparty Risk Assessment, affirmed NP(cr)

Baseline Credit Assessment, affirmed caa2

Adjusted Baseline Credit Assessment, affirmed caa2

Senior Unsecured Medium-Term Note Program, affirmed (P)Caa2

Subordinate Regular Bond/Debenture, affirmed Caa3

Subordinate Medium-Term Note Program, affirmed (P)Caa3

Outlook Action:

Outlook changed to Stable from Positive

Issuer: Piraeus Group Finance Plc

Affirmations:

Backed Senior Unsecured Medium-Term Note Program, affirmed (P)Caa2

Backed Subordinate Medium-Term Note Program, affirmed (P)Caa3

No Outlook assigned

PRINCIPAL METHODOLOGY

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



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

LUNAR FUNDING I: S&P Puts Series 6 Notes' 'BB' Rating on Watch Neg.
-------------------------------------------------------------------
S&P Global Ratings placed on CreditWatch negative its 'BB' credit
rating on Lunar Funding I Ltd.'s series 6 notes.

The CreditWatch negative placement follows S&P's April 17, 2020,
rating action on Mitchells & Butlers Finance PLC.

Under S&P's "Global Methodology For Rating Repackaged Securities"
criteria, we weak-link our rating on Lunar Funding I Ltd.'s series
6 notes to the lowest of:

-- S&P's rating on the fixed- and floating-rate asset-backed class
C1 notes issued by Mitchells & Butlers Finance PLC;

-- S&P's issuer credit rating (ICR) on NatWest Markets PLC as the
fee payer;

-- S&P's ICR on Deutsche Bank AG (London Branch) as custodian;

-- S&P's ICR on NatWest Markets as bank account provider; and

-- S&P's ICR on the Bank of New York Mellon (London Branch) as
custodian, which it derives from its ICR on the Bank of New York
Mellon as branch parent.

Therefore, following S&P's recent CreditWatch negative placement of
its 'BB (sf)' rating on Mitchells & Butlers Finance PLC class C1
notes, it has consequently place on CreditWatch negative its 'BB'
rating on Lunar Funding I Ltd.'s series 6 notes.

The CreditWatch placements on Mitchells & Butlers Finance PLC
reflected the potential effect that the U.K. government's measures
to contain the spread of COVID-19 could have on both the U.K.
economy and the relevant business sectors. In S&P's view, the
credit quality of the transaction may decline due to health and
safety fears related to COVID-19. S&P believes this may negatively
impact the cash flows available to the issuer.

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




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

IC STERKH: Liabilities Exceed Assets, Inspection Shows
------------------------------------------------------
The provisional administration to manage JSC IC Sterkh
(hereinafter, the Company) appointed by virtue of Bank of Russia
Order No. OD-2482, dated October 27, 2019, following its insurance
license revocation, in the course of the inspection of the Company,
established facts suggesting syphoning off assets through
conducting operations with securities and real estate items, as
well as stealing of accountable OSAGO forms.

The provisional administration estimates the value of the Company's
assets to be insufficient to meet its liabilities to creditors and
mandatory payments obligations.  Taking into account these
findings, on January 9, 2020, the Arbitration Court of the Republic
of Sakha (Yakutia) recognized the Company as insolvent (bankrupt).
The State Corporation Deposit Insurance Agency was appointed as
receiver.

As the Bank of Russia had a reasonable assumption that the
Company's officials had performed financial transactions suspected
of being criminal offences, the Bank of Russia submitted this
information to the Prosecutor General's Office of the Russian
Federation and the Investigative Committee of the Ministry of
Internal Affairs of the Russian Federation for consideration and
procedural decision-making.

The reference to the Press Service is mandatory if you intend to
use this material.




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

[*] SWEDEN: Bankruptcies Amid Coronavirus Outbreak Slowing in May
-----------------------------------------------------------------
Simon Johnson at Reuters reports that credit information firm UC
said on May 13 the wave of bankruptcies that has followed in the
wake of the outbreak of the novel coronavirus in Sweden looks like
slowing in May.

UC said that, based on figures from May 1 to May 12, it expected 21
companies per day to register as bankrupt, compared with 20 in the
same month in 2019, Reuters relates.

However, UC said it expected continued problems in the restaurant
and hotel sectors, with the number of bankruptcies likely to rise
by 50% in May compared with the same month a year earlier, Reuters
notes.

In April, overall bankruptcies increased 30% compared to the same
month in 2019, Reuters discloses.






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

DAWSONS MUSIC: Enters Administration, Seeks Buyer for Business
--------------------------------------------------------------
Gary Porter at The Standard reports that iconic retailer Dawsons
Music has gone into administration putting the future of its
Chester city centre store in doubt.

The company will continue to trade online while it attempts to find
a buyer for the business, The Standard discloses.

Employing around 75 people, Dawsons Music is one of the oldest
retailers of musical instruments in the UK.  Dawsons Music, which
was established in Warrington in 1898, has six stores -- in Pepper
Street, Chester, as well as Manchester, Liverpool, Leeds, Reading
and Belfast.

According to The Standard, Rick Harrison, partner at KPMG and joint
administrator, said: "While all stores remain closed due to the
restrictions imposed as a result of the Covid-19 pandemic, we will
continue to trade the business via its online platforms while we
assess options for the business.

"The majority of staff were furloughed prior to our appointment,
and we will be speaking to them as a matter of priority over the
days and weeks ahead, as we seek a buyer for the business.

"We are presently in advanced discussions with a number of
interested parties with a view to a possible sale but would invite
any other party who may have interest in acquiring the business and
its assets to contact us at the earliest opportunity."


GODIVA GROUP: Enters Administration, 35 Jobs Affected
-----------------------------------------------------
Daniel Norton at ScaffMag reports that Godiva Group has gone into
administration leaving around 35 staff jobless.

The Coventry based business with offices also in Manchester and
Leeds called in the administrators on May 7, ScaffMag relates.
According to ScaffMag, the company has said work on all ongoing
projects has stopped.

ScaffMag understands that in recent months, the scaffold contractor
had suffered from challenging trading conditions resulting in
reduced margins and contract disputes with slow or non paying
clients.  And the onset of the current Covid-19 crisis has delayed
the commencement of a number of significant projects for the firm
has subsequently sent Godiva to the wall, ScaffMag notes.



KCA DEUTAG: S&P Cuts Issuer Rating to 'D' on Standstill Agreement
-----------------------------------------------------------------
S&P Global Ratings lowered its issue ratings on U.K.-based KCA
Deutag Alpha's notes due 2021 and the term loan due 2023 to 'D'
from 'CC' and affirmed the remaining debt instrument ratings of
'D'.

The rating action follows the company's announcement that it has
entered into a standstill agreement with holders of its debt
instruments. The agreement will last until at least July 31, 2020,
and the company will not make any payments due under these
facilities until that date. Any further payments at this stage are
very uncertain. S&P therefore reflects this in its 'D' ratings on
the company's debt instruments.

S&P said, "In our view, the decision to enter a standstill is part
of a wider capital improvement review that the company initiated in
late 2019, and which has been accelerated due to the recent events
in relation to falling oil prices and COVID-19.

"We expect that during the standstill period, KCA will discuss the
capital structure with lenders. Once the company completes the
restructuring we will reassess the ratings based on the new capital
structure."



NEXT CREDIT: Enters Liquidation After Shareholder Pulls Funding
---------------------------------------------------------------
Marcel LeGouais at Credit Strategy reports that short-term lender
Next Credit has entered liquidation, after a prolonged period of
dealing with redress claims, defaults and more recently its
shareholder pulling funding.

Based in Tewkesbury in Gloucestershire, Next Credit was
incorporated in 2011 with the aim of providing high-cost short-term
credit to individuals.

In 2017, the business model was realigned, with a revised focus on
an alternative consumer lending market, Credit Strategy recounts.
However, the company was under considerable strain because of a
large number of customer defaults, Credit Strategy notes.

Next Credit ceased new lending in September 2018 and following a
notification issued by the Financial Conduct Authority (FCA),
reviewed past lending practices to determine whether any customers
were due any redress, due to unaffordable lending (including repeat
lending), Credit Strategy relates.

There could still be around 9,000 Next Credit customers who may
have a claim against the company, Credit Strategy states.

The company has been gradually winding down its operations since
the end of 2018, having been unsuccessful in selling its distressed
loan book, Credit Strategy discloses.  During the winding down
process, the company's shareholder provided significant financial
support but was unable to continue, Credit Strategy relays.

On March 5, 2020, BM Advisory was instructed by the company to help
the directors place the business into a creditors' voluntary
liquidation (CVL), according to Credit Strategy.  

Mike Solomons and Richard Keley of BM Advisory, the restructuring,
recovery and insolvency firm, were appointed joint liquidators on
April 28, Credit Strategy states.


PETRA DIAMONDS: Moody's Cuts CFR to Caa3, Outlook Negative
----------------------------------------------------------
Moody's Investors Service has downgraded Petra Diamonds Limited's
corporate family rating to Caa3 from Caa2 and its probability of
default rating to Ca-PD from Caa2-PD. Moody's has also downgraded
to Ca from Caa3 the rating on the $650 million guaranteed senior
secured second lien notes due in May 2022 issued by Petra Diamonds
US$ Treasury Plc, a wholly owned subsidiary of Petra. The outlook
is negative.

Moody's has downgraded Petra's ratings following the company's
decision to suspend the semi-annual coupon payment on the notes
that was due on May 1, 2020. If the company does not pay the coupon
before the end of the 30-day grace period, Moody's will consider
this as a default. In this event, Moody's expects to assign a "/LD"
to the PDR at that time.

RATINGS RATIONALE

The downgrade of Petra's CFR to Caa3 reflects the company's failure
to make the semi-annual interest payment, due on May 1, 2020, on
its $650 million senior secured second lien notes. The company
intends to utilise the 30-day grace period to agree with
bondholders a forbearance agreement in relation to the May coupon
and to finalize conditions with its bank lenders to be able to
access ZAR400 million under its revolving credit facility. The PDR
of Ca-PD reflects that a default is highly likely at the end of the
grace period. Even if the coupon is ultimately paid within the
grace period, Moody's believes that the risk of a debt
restructuring is very high given the company's weak cash flow
generation outlook and rapid deterioration in the operating
environment. The Ca rating on the notes reflects Moody's view on
the recovery on the notes given the likelihood of a debt
restructuring.

The announcement by Petra follows the production disruptions caused
by the rapid and widening spread of the coronavirus outbreak and
the company's exposure to depressed diamond prices, exacerbated by
the deteriorating global economic outlook. Moody's regards the
coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.

STRUCTURAL CONSIDERATIONS

Petra's $650 million senior secured second lien notes rank behind
the senior secured first lien working capital and revolving credit
facilities as well as the $49 million BEE loan guarantee obligation
which is part of the first lien creditor class.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook on the ratings reflects the depressed diamond
market, weak liquidity and the uncertainties surrounding the final
recoveries for bondholders in the event of default.

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

Moody's would consider assigning a "/LD" to the PDR if Petra does
not pay the bond coupon on or before the 30-day grace period i.e.
30 May 2020.

Moody's would consider a downgrade of the current ratings if
recoveries are lower than those assumed in the Caa3 CFR and Ca bond
ratings.

In view of its action and the negative rating outlook, Moody's does
not currently anticipate upward rating pressure in the near term.

LIST OF AFFECTED RATINGS

Issuer: Petra Diamonds Limited

Downgrades:

Probability of Default Rating, Downgraded to Ca-PD from Caa2-PD

Corporate Family Rating, Downgraded to Caa3 from Caa2

Outlook Action:

Outlook, Remains Negative

Issuer: Petra Diamonds US$ Treasury Plc

Downgrade:

Backed Senior Secured Regular Bond/Debenture, Downgraded to Ca from
Caa3

Outlook Action:

Outlook, Remains Negative

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Mining
published in September 2018.

COMPANY PROFILE

Petra is a rough diamond producer listed on the London Stock
Exchange, registered in Bermuda and with its group management
office domiciled in the United Kingdom. The company's primary
assets are the Cullinan, Finsch and Koffiefontein underground mines
in South Africa and Williamson open pit mine in Tanzania. For the
last twelve months ended December 31, 2019, Petra produced 3.9
million carats of diamonds and reported $450 million in revenues.


                           *********


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 * * *