/raid1/www/Hosts/bankrupt/TCREUR_Public/200611.mbx        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, June 11, 2020, Vol. 21, No. 117

                           Headlines



C R O A T I A

3 MAJ: Net Loss Down 85% to HRK103.3 Million in 2019


G E R M A N Y

OXEA HOLDING: S&P Lowers ICR to 'B', Outlook Negative


I R E L A N D

VENDOME FUNDING: S&P Assigns Prelim BB- Rating on Cl. E Notes


I T A L Y

MARCOLIN SPA: Moody's Confirms B3 CFR & Alters Outlook to Negative
PRO.GEST SPA: S&P Cuts ICR to 'CCC+' on Ongoing Liquidity Concerns
SAFILO SPA: Moody's Cuts CFR to B3 & Alters Outlook to Negative


L U X E M B O U R G

EUROPEAN MEDCO 3: Fitch Assigns 'B(EXP)' IDR, Outlook Stable
PACIFIC DRILLING: S&P Withdraws 'CCC-' Issuer Credit Rating


R O M A N I A

AVIA INVEST: Repays RON22.6MM Debt to State Budget


R U S S I A

[*] S&P Revises Outlook on Four Uzbekistan-Based Banks to Negative


S P A I N

GRUPO MASMOVIL: S&P Puts 'BB-' LongTerm ICR on Watch Negative


S W I T Z E R L A N D

SWISSPORT GROUP: Moody's Cuts CFR to Caa2, Outlook Negative


U N I T E D   K I N G D O M

EVRAZ PLC: Fitch Affirms LT IDR & Sr. Unsecured Rating at 'BB+'
KAST RETAIL: Quiz to Put Subsidiary Into Administration
MONSOON AND ACCESSORIZE: Adena Acquires Business in Pre-Pack Deal
NORD ANGLIA EDUCATION: S&P Affirms 'B-' ICR on Debt & Equity Raise
TUDOR ROSE 2020-1: S&P Assigns Prelim BB+ Rating on X1-Dfrd Notes

UNIQUE PUB: Fitch Cuts Ratings on 2 Tranches to 'B'
[*] UK: Coach Operators Seek GBP370MM Taxpayer Bailout

                           - - - - -


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C R O A T I A
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3 MAJ: Net Loss Down 85% to HRK103.3 Million in 2019
----------------------------------------------------
SeeNews reports that Croatian shipyard 3. Maj said the company
pared its net loss to HRK103.3 million (US$15.3 million/EUR13.6
million) last year, from HRK713 million in 2018, as operating costs
decreased sharply.

Operating revenue rose to HRK116.6 million in 2019 from HRK112.5
million a year earlier, while operating costs shrank to HRK197.7
million from HRK704.9 million, the company, as cited by SeeNews,
said in an annual financial statement on June 3.

Financial expenses also decreased, falling by 71% year-on-year to
HRK46 million, SeeNews discloses.

3 Maj avoided the launch of bankruptcy proceedings in September
2019 after the government decided to issue guarantees for a HRK150
million loan from state-owned development bank HBOR to the
shipbuilding company, SeeNews recounts.

                      About Uljanik Group

Uljanik Group is a shipbuilding company and shipyard in Pula,
Croatia.  It comprises of Uljanik Shipyard and 3.Maj.  It employed
about 1,000 people at May 2019.

On May 13, 2019, the commercial court in Pazin launched bankruptcy
proceedings against the Uljanik Group.  Marija Ruzic is named as
bankruptcy trustee.

The Company's accounts have been frozen for more than 200 days by
the time if filed for bankruptcy.  Uljanik encountered financial
troubles in the past years due to a global crisis in the
shipbuilding sector.  The Croatian government also declined to
support a restructuring of the Company in early 2019.




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

OXEA HOLDING: S&P Lowers ICR to 'B', Outlook Negative
-----------------------------------------------------
S&P Global Ratings lowered its long-term ratings on German
chemicals firm Oxea Holding Vier to 'B' from 'B+'.

The downgrade reflects the weakening of OQ's group credit profile.
Oxea is a 100% subsidiary of OQ (previously Oman Oil Company),
which is wholly owned by the government of Oman. Following OQ's
merger with ORPIC (Oman Oil Refineries and Petroleum Industries
Co.) in 2019, it became a vertically integrated national oil and
gas company, covering the entire hydrocarbon value chain. Although
the consolidation of ORPIC results in a significant expansion of
OQ's asset and revenue base, as well as stronger diversification
toward downstream activities, it also considerably increases the
group's leverage. S&P said, "Furthermore, we expect the material
decline in oil prices this year and the COVID-19 pandemic to push
down market demand, hampering OQ's operating performance in 2020.
Although we anticipate a swift recovery from 2021, OQ's leverage is
likely to remain elevated due to ongoing negative free operating
cash flow (FOCF) stemming from ambitious growth targets and
significant capital requirements. As a result, we have removed the
notch of uplift in our rating on Oxea, since we no longer believe
that OQ has the capacity to provide extraordinary support to Oxea
if needed. Nevertheless, we still consider Oxea a moderately
strategic subsidiary and strategic investment of OQ."

S&P said, "We expect reduced demand in Oxea's main markets due to
the effects of the pandemic to weigh on operating performance.  The
economic effects of social-distancing measures to contain the
spread of the coronavirus, and plummeting consumer and business
confidence, have dealt a heavy blow to global economic growth
prospects in the near term. In the eurozone and the U.S., where
Oxea generates nearly 80% of its sales, we now expect a sharp
economic contraction this year. Asia, where the company generates
about 17% of its sales, will also face much lower GDP growth in
2020. Despite good end-market and geographic diversity, we note
that more than 35% of Oxea's revenue stems from cyclical industries
like construction and automotive, the latter expected to suffer
from declining demand this year. Besides weaker market demand, a
production setback in the first quarter of 2020 at Oxea's
Oberhausen site--due to a technical disruption at a supplier's
synthesis gas plant--may result in a one-off EBITDA decrease of
about EUR15 million, according to management's estimates. In our
base case, we assume a 5%-15% decline in Oxea's volumes in 2020,
with adjusted EBITDA down by 20%-25% to EUR130 million-EUR135
million, followed by a gradual recovery in 2021-2022.

"We expect Oxea's leverage to peak this year but recover swiftly in
2021.   In our base case, we now expect Oxea's adjusted debt to
EBITDA to weaken to 7.0x-7.5x this year from 5.8x in 2019. We
expect Oxea's leverage to recover to below 6.5x by the end of next
year, thanks to higher volumes as demand picks up and EBITDA
increases, assuming no further operational disruptions.
Nevertheless, rating headroom has diminished compared with the
5.0x-6.5x range we view as commensurate with Oxea's 'b' stand-alone
credit profile."

Cash flow generation will remain positive, despite weaker earnings
and rising investments in new production capacity.  Oxea's FOCF
increased to nearly EUR35 million in 2019, thanks to
well-controlled working capital and lower capital expenditure
(capex). S&P said, "However, we expect it will reduce to EUR5
million-EUR10 million in 2020 due to the decline in EBITDA. We
expect capex to remain stable at EUR60 million-EUR65 million." Oxea
has planned higher capex of about EUR80 million due to larger
investments in a new carboxylic acids production plant in Germany.
However, the company is committed to cutting non-essential capex by
about 20% this year to preserve FOCF and liquidity in the current
challenging market environment. Growth capex should peak in 2021,
with FOCF falling to low-single-digit millions before strengthening
again once capex returns to more normal levels of EUR55
million-EUR65 million from 2022. In addition, the company has been
focusing on more efficient working capital management. The force
majeure in the first quarter has pushed down the inventory level,
which will increase again in line with recovering volumes,
resulting in only slightly negative net working capital outflow for
the full year.

S&P said, "We expect Oxea's management and shareholders will
maintain a supportive financial policy.  We understand the key
focus of the group's financial strategy is unchanged. It aims to
achieve reported leverage below 3.25x versus about 4.8x at year-end
2019, and generate stable free cash flow to support growth. We
expect Oxea will remain disciplined regarding its capex program and
do not foresee any major shareholder distribution in the next few
years."

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 indicates that we could lower the
rating if the decline in market demand and Oxea's EBITDA and FOCF
this year is more severe than in our base case, such that a rebound
in 2021 will be slower than we currently expect. We also see the
risk of possible further deterioration of the parent company's
credit quality.

"We could lower the rating if Oxea is unable to generate positive
FOCF, or if its EBITDA continues to decline in 2021, such that
adjusted debt to EBITDA remains above 6.5x without prospects of a
near-term recovery. In our view, this could happen if the company
faces continuously weakening market demand and declining margins,
or if the new acid project incurs significant delays or cost
overruns. Downward rating pressure could also arise if OQ's credit
quality were to further deteriorate due, for example, to the
downgrade of Oman, potential weakening of the likelihood of
sovereign support for OQ, or additional oil price pressure."

Upside scenario

S&P said, "We could revise the outlook to stable if we observe a
swift recovery in Oxea's performance resulting in adjusted debt to
EBITDA recovering to below 6.5x and positive FOCF generation in the
next 12 months. We would also expect stabilization of OQ's credit
quality."




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I R E L A N D
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VENDOME FUNDING: S&P Assigns Prelim BB- Rating on Cl. E Notes
-------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
Vendome Funding DAC's class A, B-1, B-2, C, D, and E notes. At
closing, the issuer will also issue unrated subordinated notes.

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

The portfolio's reinvestment period will end approximately 1 year
after closing, and the portfolio's maximum average maturity date
will be approximately 11 years after closing

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

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

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

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

  Portfolio Benchmarks
                                                        Current
  S&P Global Ratings weighted-average rating factor    2,466.35
  Default rate dispersion                                664.57
  Weighted-average life (years)                            5.18
  Obligor diversity measure                               85.10
  Industry diversity measure                              14.15
  Regional diversity measure                               1.49

  Transaction Key Metrics
                                                        Current
  Total par amount (mil. EUR)                            350.00
  Defaulted assets (mil. EUR)                              0.00
  Number of performing obligors                              95
  Portfolio weighted-average rating derived
   from S&P's CDO evaluator                                 'B'
  'CCC' category rated assets (%)                          0.00
  Covenanted 'AAA' weighted-average recovery (%)          37.25
  Covenanted weighted-average spread (%)                   3.25
  Covenanted weighted-average coupon (%)                   3.75

S&P said, "Our preliminary ratings reflect our assessment of the
preliminary collateral portfolio's credit quality, which has a
weighted-average rating of 'B'. We consider that the portfolio will
be well-diversified on the effective date, primarily comprising
broadly syndicated speculative-grade senior secured term loans and
senior secured bonds. Therefore, we conducted our credit and cash
flow analysis by applying our criteria for corporate cash flow
collateralized debt obligations.

"In our cash flow analysis, we used the EUR350 million par amount,
the covenanted weighted-average spread of 3.25%, the covenanted
weighted-average coupon of 3.75%, and the covenanted
weighted-average recovery rates for all rating levels. We applied
various cash flow stress scenarios, using four different default
patterns, in conjunction with different interest rate stress
scenarios for each liability rating category.

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

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

"At closing, we consider that the transaction's legal structure
will be bankruptcy remote, in line with our legal criteria.

"Our credit and cash flow analysis indicates that the available
credit enhancement for the class B notes could withstand stresses
commensurate with higher rating levels than those we have assigned.
However, as the CLO is still in its reinvestment phase, during
which the transaction's credit risk profile could deteriorate, we
have capped our assigned ratings on the notes. In our view the
portfolio is granular in nature, and well-diversified across
obligors, industries, and asset characteristics when compared to
other CLO transactions we have rated recently. As such, we have not
applied any additional scenario and sensitivity analysis when
assigning ratings on any classes of notes in this transaction."

Until the end of the reinvestment period on July 20, 2021, the
collateral manager is allowed to substitute assets in the portfolio
for so long as our CDO Monitor test is maintained or improved in
relation to the initial ratings on the notes. This test looks at
the total amount of losses that the transaction can sustain as
established by the initial cash flows for each rating, and compares
that with the default potential of the current portfolio plus par
losses to date. As a result, until the end of the reinvestment
period, the collateral manager may, through trading, deteriorate
the transaction's current risk profile, as long as the initial
ratings are maintained.

Following S&P's analysis of the credit, cash flow, counterparty,
operational, and legal risks, it believes that its preliminary
ratings are commensurate with the available credit enhancement for
the class A, B-1, B-2, C, D, and E notes.

In light of the rapidly shifting credit dynamics within CLO
portfolios due to continuing rating actions (downgrades,
CreditWatch placements, and outlook changes) on speculative-grade
corporate loan issuers, S&P is making qualitative adjustments to
its analysis when rating CLO tranches to reflect the likelihood
that changes to the credit profile of the underlying assets may
affect a portfolio's credit quality in the near term. This is
consistent with paragraph 15 of S&P's criteria for analyzing CLOs.
To do this, S&P reviews the likelihood of near-term changes to the
portfolio's credit profile by evaluating the transaction's specific
risk factors, including, but not limited to, the percentage of the
underlying portfolio that comes from obligors that:

-- Are rated in the 'CCC' range;
-- Are currently on CreditWatch with negative implications;
-- Are rated with negative a negative outlook; or
-- Sit within a static portfolio CLO transaction.

Based S&P's review of these factors, it believes that the minimum
cushion between this CLO tranches' break-even default rates (BDRs)
and scenario default rates (SDRs) should be 1% (from a possible
range of 1%-5%).

As noted above, the purpose of this analysis is to take a
forward-looking approach for potential near-term changes to the
underlying portfolio's credit profile.

S&P said, "Taking the above into account and following our analysis
of the credit, cash flow, counterparty, operational, and legal
risks, we believe that our ratings are commensurate with the
available credit enhancement for all of the rated classes of
notes.

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

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."

Vendome Funding is a European cash flow CLO securitization of a
revolving pool, comprising euro-denominated senior secured loans
and bonds issued mainly by sub-investment grade borrowers. CBAM CLO
Management Europe LLC will manage the transaction.

  Ratings List

  Class   Prelim     Prelim      Sub (%)     Interest rate*  
          Rating     amount
                     (mil. EUR)
  A       AAA (sf)    210.00     40.00    Three/six-month EURIBOR
                                            plus 1.86%
  B-1     AA (sf)     23.40      29.89    Three/six-month EURIBOR

                                            plus 2.34%
  B-2     AA (sf)     12.00      29.89    2.90%
  C       A- (sf)     35.50      19.74    Three/six-month EURIBOR
                                            plus 3.00%
  D       BBB-(sf)    17.30      14.80    Three/six-month EURIBOR
                                            plus 4.70%
  E       BB- (sf)    12.40      11.26    Three/six-month EURIBOR
                                            plus 7.25%
  Sub. Notes   NR     37.20      N/A      N/A

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


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




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I T A L Y
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MARCOLIN SPA: Moody's Confirms B3 CFR & Alters Outlook to Negative
------------------------------------------------------------------
Moody's Investors Service has confirmed the B3 corporate family
rating and the B3-PD probability of default rating of Italian
eyeglass manufacturer Marcolin S.p.A. Moody's has also confirmed
the B3 rating of Marcolin's EUR250 million senior secured notes due
in February 2023. The outlook was changed to negative from rating
under review.

This rating action concludes the review for downgrade initiated by
Moody's on March 31, 2020.

"The confirmation of the rating reflects its view that while the
company's liquidity has weakened as a result of the coronavirus
outbreak, Moody's expects that Marcolin will shortly strengthen its
liquidity through new debt financing and a shareholder loan, that
will allow the company to cover this liquidity gap," says Lorenzo
Re, a Moody's VP-Senior Analyst and lead analyst for Marcolin.

"The negative outlook reflects the risk that Marcolin may not be
able to restore a more sustainable capital structure in case of a
prolonged subdued operating performance," Mr. Re added.

RATINGS RATIONALE

The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The consumer
product sector has been one of the sectors most significantly
affected by the shock given its sensitivity to consumer demand and
sentiment. More specifically for Marcolin, the temporary closure of
retail stores in most of the regions in which the company operates,
has impaired its ability to distribute its products.

As a result, Marcolin's sales during Q1 2020 declined by 28% and
EBITDA (as reported by the company) dropped to EUR10 million from
EUR16 million in Q1 2019. Moody's expects the revenue and EBITDA
contraction to be materially higher in the second quarter, with a
partial recovery in the second half of the year, as lockdown
measures are progressively eased across countries and their
economies reopen. Overall, Moody's estimates that Marcolin's
Moody's adjusted EBITDA could decline by almost 40% in 2020, which
would increase the company's Moody's-adjusted gross leverage to
above 10x.

Moody's expects the company's operating performance to recover in
2021, with EBITDA potentially returning to levels around EUR50
million owing to (1) the contribution from the optical frame
segment, which represents almost 50% of the company's sales, and
which should be relatively resilient to the recession given its
non-discretionary nature; and (2) revenue growth from new licenses
launched in 2020. However, visibility on the pace of recovery
remains very low, as the impact of macroeconomic recession, reduced
consumer confidence and lower consumer disposable income may hamper
sales and margins.

Despite the fact that the company adjusted its cost structure to
lower volumes preserving its EBITDA margin and adopted a number of
cash preservation measures, Marcolin's operating cash flow was
negative by approximately EUR27 million in Q1 2020 (-EUR8.8 million
in Q1 2019).

Moody's expects the cash burn to continue in the next months. The
current cash balance of around EUR25 million leaves very little
headroom to accommodate the expected cash burn. The EUR40 million
committed revolving credit facility maturing in November 2022 was
fully drawn as of March. However, Marcolin's controlling
shareholder has already committed to provide financial support to
the company via a shareholder loan. In addition, Marcolin is
currently negotiating a new State-backed loan which is part of the
support measures made available by the Italian government to
corporates.

While these measures will support the company's liquidity in the
short-term, the impact on the long-term capital structure is still
uncertain, as it will depend on the final amount and the mix
between these two instruments, which is currently not yet defined.

The RCF includes a springing financial covenant of 7.5x net
leverage, tested when drawings exceed 40% of the RCF. Net leverage
was 6.2x as of March, but Moody's expects that a deterioration in
EBITDA would likely lead to a breach of the covenant in June. The
company is currently negotiating a covenant waiver and the current
rating assumes that this waiver will be achieved.

Marcolin's credit profile is supported by the company's solid
market position in the global eyewear market, with a well-balanced
product and geographic diversification that could further improve
in the long term thanks to the strategic agreement with the French
luxury group LVMH. The rating also factors the company's modest
size and the risk of licenses not being renewed, owing to the lack
of significant proprietary brands and the high sales concentration
in a few brands.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

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

With regards to specific governance considerations, Marcolin is
tightly controlled by PAI Partners which — as it is often the
case in highly levered, private equity-sponsored deals — has a
high tolerance for leverage, while governance is comparatively less
transparent. The shareholder has been supportive of the business in
the current challenging environment, committing to provide
additional liquidity via a shareholder loan.

STRUCTURAL CONSIDERATIONS

The rating of the senior secured notes is in line with the CFR,
reflecting the fact that the EUR250 million bond constitutes most
of the group's financial debt. The notes are secured by share
pledges and are guaranteed (with some limitations under Italian
law) by subsidiaries, representing at least 85% of the group's
EBITDA. The notes are junior to the EUR40 million RCF, which
benefits from a first-ranking priority on the same collateral as
the notes and a special lien (privilegio speciale) over the movable
assets of Marcolin. The size of the RCF is not enough to cause a
notching down of the notes compared to the company's CFR.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook reflects the risk that Marcolin financial
metrics will remain weak after 2020 in case of a slow recovery of
the company's operating performance.

The rating assumes that the company will be able to successfully
raise the State-backed loan and the shareholder loan, as well as
renegotiate headroom under its covenants. Failure to successfully
close these negotiations would lead to further downward pressure on
the rating.

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

Negative pressure on the rating could materialise in case of (1)
further liquidity deterioration; (2) failure to restore a
sustainable capital structure after 2020, with leverage, measured
as Moody's adjusted gross debt /EBITDA not returning towards 6.5x;
and (3) continued negative free cash flow for an extended period of
time.

Positive ratings pressure could result over time if (1) the
company's Moody's-adjusted debt/EBITDA returns to below 5.5x on a
sustained basis; (2) its liquidity improves; and (3) its EBIT
margin returns to high single-digit levels in percentage terms.

LIST OF AFFECTED RATINGS

Issuer: Marcolin S.p.A.

Confirmations:

Probability of Default Rating, Confirmed at B3-PD

Corporate Family Rating, Confirmed at B3

Senior Secured Regular Bond/Debenture, Confirmed at B3

Outlook Action:

Outlook, Changed To Negative From Ratings Under Review

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Headquartered in Italy, Marcolin S.p.A. is a leading designer,
manufacturer and distributor of eyewear, with a portfolio of around
30 licensed brands. The group has a global presence in both
sunglasses and prescription frames. In 2019, the group reported
EUR487 million in revenue and EUR46 million in Moody's-adjusted
EBITDA. Since 2012, Marcolin has been controlled by private equity
firm PAI Partners.


PRO.GEST SPA: S&P Cuts ICR to 'CCC+' on Ongoing Liquidity Concerns
------------------------------------------------------------------
S&P Global Ratings lowered its ratings on Pro.Gest SpA and its
fixed-rate senior unsecured notes to 'CCC+' from 'B-'.

S&P said, "We think Pro.Gest's liquidity will remain vulnerable in
the next 12 months. We anticipate that large scheduled debt
repayments of EUR69 million and a high amount of capital
expenditure (capex) payables will continue to undermine the
company's liquidity position in 2020. So far this year, liquidity
has benefited from the receipt of EUR30 million in cash from an
associated company--Pro.Gest expects to receive a further EUR10
million in the fourth quarter of 2020--and from an extension in the
payment terms of the company's antitrust fine payments. We also
understand Pro.Gest will receive about EUR11 million in government
subsidies and loans by the end of the year. Nonetheless, we expect
liquidity to remain vulnerable to unforeseen events.

"We expect low cash levels during 2020-2021. Pro.Gest has generated
negative free operating cash flows (FOCF) in each of the past three
years (2017-2019). In 2019, this reflected a sharp decline in
containerboard prices combined with a large working capital
outflow. In 2020, we expect high capex, along with the payment of
capex incurred in 2019, to undermine the company's FOCF. We now
expect the sale of its plant in Monza for about EUR50 million to
complete in 2021. The group's liquidity position in 2021 will
depend greatly on the successful sale of the Monza site and on the
ramping up of operations at the reopened Mantova mill."

S&P thinks Pro.Gest might breach its covenants in December 2020.

In March 2020, Pro.Gest obtained waivers relating to the breach of
the December 2019 leverage covenants under its minibonds and other
various bilateral lending agreements. S&P said, "We think the
company is likely to breach these covenants again in December 2020.
In 2020, the COVID-19 pandemic and a limited contribution from
Mantova--which we expect to restart in the second half of
2020--will undermine EBITDA and cash generation. Nevertheless, we
think lenders could again waive such a breach, especially now that
the reopening of the mill at Mantova has been approved."

The negative outlook reflects a one in three likelihood that S&P
could lower the ratings if it saw a further deterioration in
liquidity in the short term or if a covenant breach in December
2020 seemed inevitable.

S&P could lower its rating on Pro.Gest if it thought there was an
increased risk of default in the next 12 months. For example, this
could stem from:

-- Deteriorating liquidity leading to a shortfall in the short
term; or
-- A covenant breach by year-end 2020.

S&P could revise the outlook to stable if liquidity improved on a
sustained basis and the group generated positive FOCF on a
sustained basis.

Pro.Gest is an Italian vertically integrated producer of
containerboards (31% of 2019 revenue), corrugated cardboard (32%),
and packaging and other solutions (37%). The company was founded by
Bruno Zago in 1973 and is now run by his son, Francesco Zago.
Pro.Gest is headquartered in Treviso, Italy, and has about 1,036
employees. All of its 23 plants are in Italy. In 2019, revenue
amounted to EUR449 million and S&P Global Ratings-adjusted EBITDA
was EUR71 million.

Assumptions

Revenue growth of about 2% in 2020 due to the full-year
contribution from the Tolentino Tissue division and Mantova's
reopening. S&P assumes the mill in Mantova will operate for four
months in 2020. S&P expects revenue growth of about 11% in 2021,
supported by the full-year contribution of the plant in Mantova.

Adjusted EBITDA margin of 17.5% in 2020 due to lower exceptional
costs--in 2019, these costs were related to the shutdown of the
plant in Mantova and maintenance repairs at the Villa Lagarina
plant. S&P expects EBITDA margins to improve to about 18% in 2021
as production ramps up at the Mantova plant.

Capex of about EUR48 million in 2020, about EUR40 million of which
relates to payables for capex incurred in 2019. S&P expects capex
of about EUR15 million in 2021.

An inflow of about EUR5 million related to working capital, since
S&P expects the company to reduce some of its accumulated
inventory.

Key metrics

-- Adjusted debt to EBITDA of approximately 5.0x in 2020,
improving to about 3.7x in 2021.

-- Adjusted funds from operations (FFO) to debt of about 13% in
2020, improving to about 18% in 2021.

S&P said, "We continue to assess Pro.Gest's liquidity as less than
adequate and expect liquidity sources to cover uses by only 1.2x in
the next 12 months. Our assessment continues to reflect the
company's weak FOCF generation, no availabilities under committed
credit facilities, and a low cash balance."

S&P expects principal liquidity sources for the 12 months from
March 31, 2020 will include:

-- Cash balance of EUR63 million;

-- Cash FFO of about EUR39 million;

-- Government subsidies and loans for EUR11 million, forecast
    to be received by December 2020; and

-- Payables from an associated company of EUR10 million, which
    Pro.Gest expects to receive in November 2020.

S&P expects principal liquidity uses over the same period will
include:

-- Capex of about EUR40 million, including EUR32 million of
    capex payables due in 2020; and

-- Debt repayments of about EUR66 million.

Pro.Gest received waivers for the covenant breaches of December
2019 and June 2020. Some of Pro.Gest's minibonds and bilateral loan
agreements include a leverage covenant, set at 4.0x for December
2020. S&P thinks the company could breach its financial covenants
in December 2020. Should that be the case, S&P does not rule out a
successful covenant waiver by lenders.

S&P said, "We are lowering our issue rating on the EUR250 million
3.25% fixed-rate unsecured notes due 2024 to 'CCC+' from 'B-', in
line with the rating action on the issuer credit rating. The
recovery rating remains '4' and reflects our expectation of average
recovery (30%-50%; rounded estimate: 40%) in the event of payment
default."

Due to restrictions under the Cartiere Villa Lagarina (CVL)
bilateral facility agreements, the unsecured notes are not
guaranteed by CVL, which accounts for 34% of Pro.Gest's EBITDA.
Furthermore, these restrictions prevented CVL from making dividend
payments before September 2019, and greatly restricted payments
thereafter.

Some of Pro.Gest's bilateral debt agreements cap leverage at 4.0x
in December 2020. S&P thinks the company could breach this covenant
in December 2020, as it did in December 2019 when it was waived by
lenders.

S&P said, "Our hypothetical default scenario assumes continued cash
burn, worsening liquidity, sustained weak market conditions, and an
ongoing stoppage of production at the Mantova plant. Because of
this, we assume the company would not be able to meet its scheduled
debt repayments in a hypothetical default scenario. We value
Pro.Gest as a going concern, given its leading niche position and
longstanding customer relationships."

-- Year of default: 2021
-- Emergence EBITDA after recovery adjustments: EUR56.6 million
-- Implied enterprise value multiple: 5.5x
-- Jurisdiction: Italy
-- Gross enterprise value at default: EUR312 million
-- Net recovery value after administrative expenses (5%):
    EUR296 million
-- Estimated priority claims (mainly bilateral facilities and
    mini-bonds): EUR185 million*
-- Remaining recovery value: EUR111 million
-- Senior unsecured debt claims: EUR274 million*
-- Recovery range: 30%-50% (rounded estimate: 40%)
-- Recovery rating: 4

*All debt amounts include six months of prepetition interest.


SAFILO SPA: Moody's Cuts CFR to B3 & Alters Outlook to Negative
---------------------------------------------------------------
Moody's Investors Service has downgraded to B3 from B2 the
corporate family rating and to B3-PD from B2-PD the probability of
default rating of Italian eyeglass manufacturer Safilo S.p.A. The
outlook was changed to negative from ratings under review.

This rating action concludes the rating review process initiated on
March 19, 2020.

"The downgrade of Safilo to B3 reflects its view that the
coronavirus outbreak and subsequent global macroeconomic recession
will have a deeper than expected impact on Safilo's cash generation
in 2020 resulting in a long-lasting deterioration in the company's
credit metrics, which Moody's only expects to recover in line with
a B3 rating in 2021/2022," says Paolo Leschiutta, a Moody's Senior
Vice President and lead analyst for Safilo. "The downgrade also
reflects the company's weaker liquidity owing to the expected cash
burn in 2020," continued Mr. Leschiutta.

RATINGS RATIONALE

The spread of the coronavirus outbreak across Europe, which Moody's
regards as social risk because of its effects on public health and
safety, and the subsequent prolonged lockdown measures in most of
European and American countries have resulted in significant
disruption in the production and distribution activities for those
companies with facilities across Italy, like Safilo, and more
generally across Europe and North America. During the lockdown,
most of the stores were closed while sales agents could not visit
retailers to collect new orders. Although most markets are now
reopening, consumer sentiment remains weak in light of higher
unemployment and the global macroeconomic recession.

In this context, Moody's expects Safilo's operating performance in
2020 to be well below previous expectations. The company's EBITDA
during the first quarter ending March 2020 was EUR5.8 million, or
71% below prior year. Safilo also expects that EBITDA in the second
quarter will be negative. Although Moody's expects a degree of
recovery in demand during the second half of the year, this will
not be enough to offset an extremely weak first half. As a result,
Moody's expects the company's free cash flow to be materially
negative and its credit metrics to remain well below the levels
commensurate with a B3 rating at the end of 2020.

In addition, over the coming months the company needs to build up
inventories for its important summer collection and this will
require working capital investments putting pressure on its
liquidity resources. The current rating, however, assumes that in
case of need, the company would successfully access government's
funds put in place to support the economy (i.e. "Decreto
liquidita") and obtain bank support to waive covenants test.

However, any additional new debt, together with depressed earnings
this year, will result in significantly increased leverage in 2020,
with the company's Moody's-adjusted gross debt to EBITDA to
increase to well above 10x.

The B3 rating assumes that the company's operating performance will
recover next year and stronger cash generation will allow for
credit metrics improvements during 2021. Albeit this recovery is
exposed to some execution risk, the rating assumes that Safilo will
reduce its financial leverage towards 6.5x and improve its Moody's
adjusted EBIT interest coverage ratio towards 1.0x by the end of
2021.

Safilo's ratings were already weakly positioned before the
coronavirus outbreak. This was because of the uncertainty around
the company's ability to compensate for the expiration of one of
its major licenses, Dior, from December 2020. In addition, the
company completed recently two small acquisitions for a total of
approximately EUR118 million which also resulted in a higher amount
of debt. Out of this amount, EUR90 million was financed through a
shareholder loan that Moody's considers as debt in its leverage
calculation.

On the positive side, Moody's notes that the company was able to
contain the level of cash burn during the first months of 2020 and
that its prescription business, representing 40% of revenues, is
likely to benefit from a more rapid recovery in the second half of
the year. In addition, despite some disruption at the beginning of
the year, the company's Asian business (8% of revenues) is now
performing strongly, while its online business is also growing at
double digit rates. These are, however, not enough to compensate
for the difficulties in the core wholesale channel across Europe
and the US.

Moody's also recognizes some of the progress achieved by the
company over the last 12 to 18 months including (1) a capital
increase completed in early 2019 and the extension to 2023 of
Safilo's debt maturity profile; (2) the disposal of the loss-making
US-based retail business Solstice; (3) the renewal of a number
important licences, the signing of new agreements and a number of
small acquisitions; and (4) the initiation of a renewed
cost-restructuring programme. All these measures should help the
company to withstand some earnings contraction due to the
coronavirus outbreak in 2020 and the termination of the Dior
licence at the end of the year.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

The coronavirus outbreak and deteriorating global economic outlook
created a severe and extensive credit shock across many sectors,
regions and markets. The combined credit effects of these
developments are unprecedented. The consumer durables sector is one
of the sectors most significantly affected by the shock given its
sensitivity to consumer discretionary spending. More specifically,
the weaknesses in Safilo's credit profile have left it vulnerable
to shifts in market sentiment in these unprecedented operating
conditions and Safilo remains vulnerable to the outbreak continuing
to spread. Moody's regards the coronavirus outbreak as a social
risk under the ESG framework, given the substantial implications
for public health and safety.

With regards to specific governance considerations, Safilo's main
shareholder is the Dutch investment company HAL Holding N.V.,
through its subsidiary Multibrands Italy B.V., which holds a 49.8%
stake. The remaining 50.2% is free float, as the company is listed
in the Milan stock exchange, a positive from a governance
perspective. The reference shareholder has been supportive of the
business in the past, guaranteeing the capital injection of EUR150
million completed in early 2019 and, more recently, providing the
EUR90 million shareholder loan to fund most of the acquisitions of
Privé Goods, LLC and Blenders Eyewear LLC, two small US eyewear
manufacturers. The company's strategy over the next 12 to 18 months
entails some execution risks as Safilo will focus on offsetting the
loss of the Dior and other licenses with new brands.

LIQUIDITY

Moody's expects Safilo's liquidity to deteriorate over the coming
months. Moody's expects free cash flow generation to remain
negative in both 2020 and 2021 owing to the deterioration in
operating performance in 2020 and the extraordinary cash outflows
associated with the company's cost reduction programme.

As a result of the negative free cash flow generation and the need
to repay the annual maturities of the term loan, Safilo will need
to rely on new credit lines which will result in a long-lasting
increase in its financial leverage. Along with negative free cash
flow, Moody's also expects a potential breach in financial
covenants in the June and December 2020 testing dates and as
covenants step down over the next 12 to 18 months.

The company's debt consists mainly of the EUR150 million bank
facility (comprising a EUR75 million term loan and a EUR75 million
revolving credit facility, fully drawn at the moment), signed in
2018 and maturing in June 2023. The company's term loan will start
amortizing in 2020 with EUR10 million becoming due this year. In
addition, the company also received recently a EUR90 loan million
from its main shareholder HAL Holding which Moody's treats as debt
under its ratio calculations. This loan was used to finance most of
the two recent acquisitions.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects the uncertainty regarding the
potential recovery in operating performance and credit metrics in
2021, after a very weak 2020, at a time when the company's
liquidity has deteriorated. The outlook also recognizes some,
albeit limited, execution risk related to the need to secure new
funds under the Decreto Liquidita and renegotiate its covenants, as
well as the execution risk of integrating the recent acquisitions.

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

Negative pressure on the rating could materialise in case of
deterioration in the company's liquidity profile and if the company
fails to contain the level of cash burn this year and to improve
its top-line and profitability over the coming quarters. Downward
pressure on the rating would also arise in case of failure to
reduce its Moody's-adjusted gross debt/EBITDA towards 6.5x by 2021
or to improve its Moody's-adjusted EBIT interest cover to above
1.0x or if free cash flow generation remains significantly negative
beyond 2020.

The rating could be upgraded if Safilo sustainably maintains
positive free cash flow generation and debt/EBITDA at less than
5.5x, on a Moody's-adjusted basis. This would imply a significant
increase in Safilo's profitability. An upgrade would also require a
proven ability to compensate for the loss of LVMH's licenses.

LIST OF AFFECTED RATINGS

Issuer: Safilo S.p.A.

Downgrades, previously placed on review for downgrade:

Probability of Default Rating, Downgraded to B3-PD from B2-PD

Corporate Family Rating, Downgraded to B3 from B2

Outlook Action:

Outlook, Changed To Negative From Ratings Under Review

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Headquartered in Padua, Italy, Safilo S.p.A. is a global
manufacturer and seller in the premium eyewear sector, offering a
strong portfolio of both owned and licensed brands. The group sells
sunglasses, prescription glasses and sport-specific eyewear in more
than 130 countries. In 2019, Safilo reported sales and a company
adjusted EBITDA of EUR939 million and EUR51.8 million,
respectively. These stood at EUR221.1 million and EUR5.8 million,
respectively, during the first quarter of 2020.




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

EUROPEAN MEDCO 3: Fitch Assigns 'B(EXP)' IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has assigned European Medco Development 3 S.a.r.l. a
first-time expected Long-Term Issuer Default Rating of 'B(EXP)'
with Stable Outlook.

Fitch has also assigned an expected senior secured rating of
'B+(EXP)'/'RR3' to the EUR290 million term loan B borrowed by
European Medco Development 4 S.a.r.l. The debt is used to acquire
the Luxembourg-based manufacturer of active pharmaceutical
ingredients PharmaZell.

The assignment of the final ratings is subject to a review of
financing documentation following completion of the syndication.

The IDR of 'B(EXP)' reflects PharmaZell's small scale with
portfolio and customer concentration risks mitigated by
well-entrenched market positions in specialty API, long-standing
customer relationships and an adequate financial risk profile. The
Stable Outlook encapsulates Fitch's expectations of strong organic
growth with sustained positive free cash flows and organic
deleveraging prospects towards 5.0x on a FFO gross leverage basis
by 2024.

KEY RATING DRIVERS

Niche Player with High Entry Barriers: The rating reflects
PharmaZell's small scale with product and customer concentrations
as a rating constraint. This is mitigated by a focus on a
technologically complex niche in API, supported by its proprietary
process know-how and strong client relationships with a large
number of generics drug manufacturers, where product quality and
supply reliability and cost efficiency play a key role. Tight
regulation is an additional barrier to entry, limiting
competition.

Stable Margins Mitigate Revenue Volatility: Revenue is subject to
volatility driven by the commercial success of the target drugs,
but the rating is supported by steadily expanding EBITDA and stable
margins of around 30%, reflecting PharmaZell's value proposition
and proven ability to improve profitability.

Asset-Heavy Operations: As a supplier of specialty API to generic
drug manufacturers, PharmaZell's business model is akin to that of
a contract manufacturing organisation, albeit with greater
operational flexibility reinforced by proprietary production
know-how. It also requires high capex in maintenance, optimisation
and expansion which Fitch estimates on average at 9% of sales in
the next four years. Although this capital intensity consumes a
large part of its cash flows from operations, these investments are
critical for its medium- and long-term growth and productivity.

Self-funded Capex: Fitch believes that PharmaZell will be able to
fund its extensive capex programme entirely from internal cash
flow, which supports its ratings. Inability to adequately support
the asset production base could undermine revenues, earnings and
cash flow expectations and put the ratings under pressure.

Cash-Generative Operations: Fitch projects PharmaZell's FCF margins
at mid-single digit rates, following completion of the
restructuring in connection with a production site closure in
Switzerland. Such positive FCF differentiates the company's credit
profile from that of lower rated peers lacking sustained cash
generation.

Deleveraging Capacity: After a funds from operations gross leverage
of 7.0x in financial year to March 2021 post-buyout Fitch projects
deleveraging towards 5.0x by FY24 on the back of revenue growth
following construction of new plants and capacity expansion across
all of PharmaZell's production facilities. This pace of
deleveraging and financial risk is adequate for the ratings, and in
combination with expected FCF margins, are the main drivers of the
company's credit quality.

Latent M&A Risk: Fitch understands from management that while the
business plan assumes organic growth, the company may engage in
selective bolt-on M&A, including raw material suppliers. Fitch
regards the possibility of large-scale M&A as low, and consider
this as an event risk.

Supportive Market Fundamentals: PharmaZell's credit profile
benefits from a supportive sector environment in the broader
pharmaceuticals market due to growing and ageing populations and
increasing access to medical care, with generics drugs receiving
government support as a means to contain rising healthcare costs.
In the API market, which is projected to grow at high single-digits
in percentage terms, PharmaZell is well-placed to capitalise on the
continuing trend for outsourcing by pharmaceutical companies of
non-core and technologically complex processes and to leverage on
its proprietary know-how, product pipeline and well-established
client relationships.

DERIVATION SUMMARY

Fitch rates PharmaZell according to its global Ratings Navigator
for Pharmaceutical Companies. Under this framework, PharmaZell's
small-scale operations constrain the rating to the 'B' category
with certain product portfolio and customer concentration risks,
which are mitigated by the company's well-entrenched niche position
in specialty API, strong customer relationships and a highly
regulated environment supporting stable operating margins.
PharmaZell's leverage metrics are adequate and the company is able
to self-finance organic business growth, resulting in only moderate
execution risks.

Fitch regards capital- and asset-intensive businesses such as the
French animal health company Financiere Top Mendel (Ceva Sante,
B/Stable) and privately rated CMOs as the closest peers in their
operating risk profile, which relies on large ongoing investments
in manufacturing assets to grow at or above market of 10% and to
maintain operating margins. However, Ceva Sante's larger business
scale allows a higher leverage tolerance with at least a 1.0x
higher target FFO gross leverage than that of PharmaZell.

In contrast, asset-light pharmaceutical companies outsourcing
capital- and asset-intensive activities such as IWH UK Finco
Limited (Theramex; B/Stable), Cheplapharm Arzneimittel GmbH
(B+/Stale) and Antigua Bidco Limited (Atnahs, B+/Stable) reflect
different operating risks with emphasis on drug IP rights
management, or marketing and distribution capabilities, resulting
in overall stronger FCF margins than PharmaZell's. While all three
companies have product concentrations, higher- rated Cheplapharm
and Atnahs show considerably higher FCF and more conservative
financial policies than Theramex's.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within its Rating Case for the Issuer:

  - Revenue growth of 7% driven by core product portfolio (4%-5%
increase) plus contribution from growth products (e.g. UDCA, I-18,
Cysteine) over the next four years

  - Fitch-adjusted EBITDA margin stable around 29%-30% up to FY24

  - Cash working capital outflows of EUR4 million-EUR6 million per
annum for the next four years

  - Capex at around 7%-11% of sales up to FY24

  - No acquisitions for the next four years

  - No dividends paid over the next four years.

KEY RECOVERY ASSUMPTIONS

  - Its recovery analysis assumes that PharmaZell would be
restructured as a going concern rather than liquidated in a default
scenario.

  - Given some product and customer concentration risks a
contraction in EBITDA at distress could be significant. Fitch
estimates a post-distress EBITDA of EUR45 million, which would be
required for the business to remain a going concern assuming cash
debt service, maintenance and optimisation capex, along with trade
working capital and tax payments. A fall in earnings of that
magnitude would most likely be the result of a significant loss of
sales of one of PharmaZell's products in the concentrated portfolio
(e.g. top three steroids contribute an estimated 15% to sales;
5-ASA product comprises 21% of sales) due to some severe
manufacturing disruption, regulatory issues, market-share loss from
a superior competitive product or unsuccessful drug
commercialisation by one of PharmaZell's customers.

  - PharmaZell has developed substantial technical know-how and
proprietary technologies over the past 20+ years. It also has a
sticky (15+ years) blue-chip customer base. These are factored into
the distressed valuation as are the attractive pharma market
fundamentals that support overall growth of 6%-8% in core product
lines (steroids, 5-ASA and amino acids).

  - In the recovery analysis, Fitch estimates that around EUR20
million of asset-backed financing comprising receivables factoring
facilities of approximately EUR15 million, together with export
advance financing facilities of some EUR5 million, will be
available to the business post-distress.

  - After deducting 10% for administrative claims, its principal
waterfall analysis generated a ranked recovery in the 'RR3' band
for the all-senior secured capital structure, comprising the TLB of
EUR290 million and the EUR75 million revolving credit facility
(RCF), which Fitch assumes to be fully drawn prior to distress, and
ranking equally among themselves.

  - This indicates a 'B+'/'RR3' instrument rating for the senior
secured debt with an output percentage based on current metrics and
assumptions at 55%.

RATING SENSITIVITIES

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

  - Increasing business scale and product diversification
supporting EBITDA margins expansion toward 35%;

  - FCF margins sustained at high single digits; and

  - FFO gross leverage sustained at below 5.0x.

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

  - Declining revenues due to product, or production issues or as a
result of customer losses leading to EBITDA margin declining
towards 25%;

  - FFO gross leverage remaining at or above 7.0x after FY21; and

  - FFO interest cover tightening to below 2.5x.

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 Non-Financial Corporate
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.

LIQUIDITY AND DEBT STRUCTURE

Satisfactory Liquidity: Fitch projects satisfactory liquidity with
cash from operations averaging at EUR35 million, which will be
sufficient to self-fund annual capex of EUR15 million-EUR22
million. After a deduction of EUR6 million deemed as restricted
cash to support intra-year trade working capital, Fitch estimates
sufficient year-end cash balances of EUR40 million-EUR60 million,
in addition to the committed RCF of EUR75 million, which Fitch
expects to remain undrawn.

PharmaZell has a concentrated debt structure with a TLB due 2027
translating into manageable refinancing risks given long-dated debt
maturities, underlying positive FCF and supportive industry
dynamics.

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.


PACIFIC DRILLING: S&P Withdraws 'CCC-' Issuer Credit Rating
-----------------------------------------------------------
S&P Global Ratings withdrew all of its ratings on Pacific Drilling
S.A., including the 'CCC-' issuer credit rating, at the company's
request. The rating outlook was negative at the time of the
withdrawal.




=============
R O M A N I A
=============

AVIA INVEST: Repays RON22.6MM Debt to State Budget
--------------------------------------------------
SeeNews reports that Avia Invest, the operator of the Chisinau
airport, announced that it has repaid a total RON22.6 million
(US$1.3 million/EUR1.15 million) of debt to the state budget and
demanded that the Moldovan government ease its pressure on the
company.

"The repayment was made despite the authorities' unprecedented
actions and their desire to seize the company by blocking funds
from our investor.  Therefore, the insolvency proceedings and and
all pressure on the company must stop immediately," SeeNews quotes
the company as saying in a press release on May 20.

In response, prime minister Ion Chicu said the company has still
not covered fully its liabilities, SeeNews notes.

On May 18, Mr. Chicu said that the government will launch
insolvency proceedings against Avia Invest, SeeNews recounts.
During 2017-2019, Avia Invest accumulated over RON118 million in
debts, which it agreed to repay gradually starting July 2019,
SeeNews discloses.  However, it managed to repay only a little more
than half of its liabilities and currently owes the government some
RON50 million, the prime minister, as cited by SeeNews, said on May
18.

For its part, representatives of Avia Invest's mother company
Komaksavia Airport Invest said the company will file an EUR885
million (US$956 million) lawsuit against the government for what it
claims is unlawful actions, SeeNews recounts.  The company, SeeNews
says, is contesting a government decree requesting that the company
transfer half of their passenger fees to the state budget in order
to help authorities mitigate the economic effects of the
coronavirus outbreak.  Cyprus-based Komaksavia Airport Invest owns
95% of Avia Invest, SeeNews states.

According to SeeNews, Mr. Chicu said if the company enters
insolvency, the government will have solid legal grounds to
terminate the 49-year concession contract.

Avia Invest won a 49-year concession for Chisinau International
Airport in 2013, SeeNews relays.




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

[*] S&P Revises Outlook on Four Uzbekistan-Based Banks to Negative
------------------------------------------------------------------
S&P Global Ratings said it revised its outlooks on National Bank
For Foreign Economic Activity Of The Republic Of Uzbekistan (NBU),
Uzpromstroybank, Ipoteka Bank JSCM, and KDB Bank Uzbekistan to
negative from stable. At the same time, S&P Global Ratings affirmed
its ratings, including the 'BB-' long-term issuer credit rating, on
each bank.

Rationale

The outlook revisions mirror the similar rating action on
Uzbekistan and reflects the negative impact that potential
deterioration of the sovereign's creditworthiness can have on the
banks' credit profile. The negative outlook on Uzbekistan reflects
S&P's view that the sovereign's external and fiscal debt could
continue increasing rapidly over at least the next 12 months,
potentially faster, for instance because of COVID-19-related
spending, while benefits of government investment related to
increased borrowing will only become apparent in the medium term.
S&P said, "We expect current account deficits will remain elevated,
and government borrowing will finance reforms and investment
programs aimed at improving infrastructure and modernizing the
economy. We expect growth will decelerate this year to 1% because
of the fallout from COVID-19, and weakness in key trading partners
due to low oil prices. We expect real GDP growth will average just
under 5% over our forecast period through 2023, supported by growth
in the services, manufacturing, and natural resources sectors."

The outlook revisions on the three state-owned banks (NBU,
Uzpromstroybank, and Ipoteka) also reflect the application of S&P's
criteria, given that all banks are owned by the government and all
of them are exposed predominantly to the Uzbekistan market.

Outlook

NBU

The negative outlook on NBU mirrors that on Uzbekistan.

S&P said, "We could take a negative rating action in the next 12
months if we were to lower our sovereign credit ratings on
Uzbekistan. We could also take a negative rating action if the
adverse economic environment in Uzbekistan would lead to higher
problem assets and credit losses than we currently anticipate.

"We could consider revising the outlook to stable if we took a
similar action on the sovereign, provided that asset quality
dynamics are in line with our expectations and the bank maintains
an adequate capital buffer, with our forecast risk-adjusted ratio
(RAC) higher than 7.0%."

A positive rating action is unlikely over the next 12 months, in
S&P's view.

Uzpromstroybank

The negative outlook on Uzpromstroybank mirrors that on
Uzbekistan.

S&P said, "We could take a negative rating action in the next 12
months if we were to lower our sovereign credit ratings on
Uzbekistan. We could also take a negative rating action if the
adverse economic environment in Uzbekistan would lead to higher
problem assets and credit losses than we currently anticipate.

"We could consider revising the outlook to stable if we took a
similar action on the sovereign, provided that asset quality
dynamics are in line with our expectations and the bank maintains
an adequate capital buffer, with our forecast RAC higher than
7.0%."

A positive rating action is unlikely over the next 12 months, in
S&P's view.

Ipoteka Bank JSCM

The negative outlook on Ipoteka Bank mirrors that on Uzbekistan.

S&P said, "We could take a negative rating action in the next 12
months if we were to lower our sovereign credit ratings on
Uzbekistan. We could also take a negative rating action if the
adverse economic environment in Uzbekistan would lead to higher
problem assets and credit losses than we currently anticipate.

"We could consider revising the outlook to stable if we took a
similar action on the sovereign, provided that asset quality
dynamics are in line with our expectations and the bank maintains
an adequate capital buffer, with our forecast RAC higher than
7.0%."

A positive rating action is unlikely over the next 12 months, in
S&P's view.

KDB Bank Uzbekistan JSC

S&P said, "The negative outlook on KDB Bank Uzbekistan reflects our
view that, despite the material liquid assets in foreign currency
placed in developed countries and high capitalization, the bank
would become more exposed to domestic risks in the medium term as
per the approved strategy. We do not rate KDB above the sovereign.
This is because of the likely direct and indirect influence of
sovereign distress on domestic banks' operations, including their
ability to service foreign and local currency obligations. We
believe the bank would likely not withstand hypothetical sovereign
stress, because it might accelerate pressure on liquidity."

The negative outlook on KDB also mirrors that on Uzbekistan.

S&P said, "We could take a negative rating action in the next 12
months if we were to lower our sovereign credit ratings on
Uzbekistan. We could also consider a negative rating action if
asset quality would deteriorate, with the amount of nonperforming
assets and credit losses materially exceeding our expectations.
Also, significant lending growth, which could compromise the bank's
superior asset quality and capitalization, might also lead to us to
take a negative rating action."

A positive rating action is unlikely over the next 12 months, in
S&P's view.

  Ratings List

  Ipoteka Bank JSCM
  Ratings Affirmed; Outlook Action  
                                     To          From
  Ipoteka Bank JSCM
   Issuer Credit Rating       BB-/Negative/B   BB-/Stable/B

  KDB Bank Uzbekistan JSC
  Ratings Affirmed; Outlook Action  
                                     To          From
  KDB Bank Uzbekistan JSC
   Issuer Credit Rating       BB-/Negative/B   BB-/Stable/B

  National Bank For Foreign Economic Activity Of The Republic Of
  Uzbekistan

  Ratings Affirmed; Outlook Action  
                                     To          From
  National Bank For Foreign Economic Activity Of The Republic Of
  Uzbekistan
   Issuer Credit Rating       BB-/Negative/B   BB-/Stable/B

  Uzpromstroybank
  Ratings Affirmed; Outlook Action  
                                     To          From
  Uzpromstroybank
   Issuer Credit Rating       BB-/Negative/B   BB-/Stable/B

  Ratings Affirmed  
  Uzpromstroybank
   Senior Unsecured           BB-




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

GRUPO MASMOVIL: S&P Puts 'BB-' LongTerm ICR on Watch Negative
-------------------------------------------------------------
S&P Global Ratings placed its 'BB-' long-term issuer ratings on
Spanish telecom operator Grupo MasMovil on CreditWatch with
negative implications.

The CreditWatch placement follows the June 1 announcement that
Providence Equity Partners, KKR, and Cinven registered a voluntary
takeover bid with CNMV for the entirety of MasMovil's shares. The
offer is for EUR22.5 per share, a premium of about 20% compared to
the stock price pre-announcement. The acquisition is subject to
more than 50% of shareholders' acceptance, and the approval of
several institutions (European Commission, the Spanish government,
and CNMV). If successful, S&P believes the transaction would close
at the end of 2020.

S& said, "We think MasMovil's credit quality is likely to weaken if
the transaction goes through because we expect the bidding sponsors
will use debt instruments to maximize shareholder returns, pushing
leverage up. However, we do not yet have enough information to
provide credit-metric forecasts post-transaction. Also, we believe
rating pressure will come from weaker financial risk and not from a
change in business risk, given the bidders' commitment to
maintaining MasMovil's strategy, staff, and management team.

"We have not placed the issue rating on the senior secured debt on
CreditWatch because we believe that, should the transaction go
through, the existing loan would be repaid in full.

"We plan to resolve the CreditWatch if and when the transaction
closes or fails. We believe it will likely close at the end of
2020, if successful.

"We could lower our ratings on MasMovil if the acquisition goes
through. The magnitude of the downgrade would ultimately depend on
the capital structure of the group after the transaction, and its
financial policy.

"We could also remove the CreditWatch and leave the ratings
unchanged if the transaction fails or is structured in a way that
MasMovil's credit quality remains similar."




=====================
S W I T Z E R L A N D
=====================

SWISSPORT GROUP: Moody's Cuts CFR to Caa2, Outlook Negative
-----------------------------------------------------------
Moody's Investors Service has downgraded Swissport Group S.a r.l.'s
Corporate Family Rating to Caa2 from B3 and Probability of Default
Rating to Caa2-PD from B3-PD. Concurrently, Moody's has downgraded
to Caa1 from B2 the instrument rating on the term loan B, senior
secured notes and delayed draw loan facility, to Caa3 from Caa2 the
rating on the senior unsecured notes, all issued by Swissport
Financing S.a r.l Moody's has also downgraded to Caa1 from B2 the
rating on revolving credit facility at Swissport International AG
level.

In addition, the agency also downgraded to Ca from Caa3 the
instrument rating on the senior secured notes and on the senior
unsecured notes issued by Swissport Investments S.A. The outlook on
all ratings has been changed to negative, from ratings under
review. This rating action concludes a review for downgrade that
began on March 25, 2020.

The action reflects the increasing duration and severity of the
coronavirus outbreak. Moody's estimates that Swissport's existing
financial resources are insufficient to fund operational cash burn
over a prolonged period of time, while the airline industry volumes
will remain deeply constrained this year and next.

RATINGS RATIONALE

The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The passenger
airline sector has been one of the sectors most significantly
affected by the shock given its exposure to travel restrictions and
sensitivity to consumer demand and sentiment. Its action reflects
the impact on Swissport of the breadth and severity of the shock,
and the broad deterioration in credit quality it has triggered.

Swissport was initially impacted by the coronavirus outbreak in
February and early March 2020 with restrictions on flights to and
from China, Asia Pacific and other regions. As the outbreak spread
Swissport's revenue from ground handling operations reduced by 90%
in April and May. Moody's expects flight activity to resume over Q3
and Q4 of 2020, but remaining severely depressed, with domestic
flights recovering earlier and a slower return for international
and long-haul flights. Swissport has a global presence and Moody's
estimates its mix of domestic and international flights to largely
replicate the airline industry average in the countries Swissport
operates.

Approximately 80% of Swissport's revenue is linked to the number of
flights, which although is somewhat less volatile than passenger
traffic, has been also significantly affected. Around 20% of
Swissport's business is cargo handling, which is less vulnerable to
a complete shutdown scenario compared to passenger traffic, but in
Moody's view will also be depressed due lower economic activity and
supply chain disruption.

The International Air Transport Association currently forecasts
that 2020 global passenger numbers will be 48% down year-on-year,
with 2021 volumes around 30% below 2019, and only recovering to
2019 levels by 2023. Moody's base case also assumes around 20%
lower cargo handling revenues in 2020 which will gradually recover
to pre-crisis level by 2022. Given high levels of uncertainty of
the trajectory of the pandemic there are a wide range of possible
outcomes and Moody's credit assessment considers deeper downside
scenarios incorporating the risks of a slower recovery. In
particular Moody's considers that 2021 is likely to remain a
severely depressed year for the industry, with continued travel
restrictions, health screening and social distancing, consumer
concerns over travel, a weak economic environment and threats of
further coronavirus outbreaks. This is likely to be partially
mitigated by better preparedness by governments and healthcare
systems, international coordination, pent-up consumer demand and
the economic importance of resuming air travel. The timing and
profile of a recovery beyond 2021 also remains highly uncertain.

Moody's acknowledges that Swissport managed to significantly reduce
its total operating cost and so far, was able to preserve its cash
liquidity. This was thanks to pro-active reduction of personnel
costs with staff layoffs, unpaid leaves and enrolling to government
support programmes as well as tight working capital management and
capex cuts.

However, the rating agency estimates that significantly lower
traffic will result in around half a billion-euro negative free
cash flow in 2020, a weakening liquidity profile with a resultant
need for additional external sources of liquidity. Moody's
understands the company is currently exploring different financing
options, and is pursuing the scheme of arrangement to achieve the
consent from its credit agreement lenders to raise up to EUR380
million senior secured debt. On the 4th of June the company already
obtained the required consent from its bondholders. As a result of
potential extra debt and significantly reducing EBITDA, Moody's
expects Swissport's leverage to remain very high at double-digit
next year and only reduce towards 8x in 2022.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook reflects the continued uncertain prospects for
the airline industry, with risks of extended disruption to travel
causing further strain on the company's liquidity.

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

The ratings are unlikely to be upgraded in the short term. Positive
rating pressure would not arise until the coronavirus outbreak is
brought under control, travel restrictions are lifted, and
passenger volumes return to more normal levels. At that stage
Moody's would evaluate the balance sheet and liquidity strength of
the company and positive rating pressure would require evidence
that the company is capable of substantially recovering its
financial metrics and restoring liquidity headroom within a
1-2-year time horizon.

Moody's could downgrade Swissport's rating if there are
expectations of deeper and longer declines in airport passenger
volumes resulting in more significant than expected negative free
cash flow, or if liquidity deteriorates further.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety, and as detailed above the impact of the crisis on the
company's credit quality has been the key driver of the downgrade
and review.

Moody's would like to draw attention to certain governance
considerations related to Swissport. The company is controlled by
HNA, which had a track record of pursuing an aggressive financial
policy, including Swissport issuing an intra-group loan to the
parent and pledging Swissport's shares in a breach of the company's
financial covenants.

LIQUIDITY

Swissport's liquidity is challenged by the decline in free cash
flow generation. The company had EUR350 million cash as of May
2020, including fully drawn the revolving credit facility (RCF) and
capex facility, although additional funds will be required to cover
the expected cash outflows in 2020.

STRUCTURAL CONSIDERATIONS

The Caa1 rating for the TLB, SSN and the RCF is one notch above the
CFR, benefiting from a sizeable amount of subordinated debt in the
form of senior notes (SN, EUR280 million), which provides loss
absorption in Moody's Loss Given Default model. Conversely, the SN
instrument rating of Caa3 reflects the subordination of the
instrument in the capital structure. The Ca rating on the EUR52
million old notes issued by Swissport Investments S.A. reflects
their position outside of the restricted group and subordination to
all liabilities within the restricted group.

PRINCIPAL METHDOLOGY

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
LIST OF AFFECTED RATINGS

Downgrades:

Issuer: Swissport Group S.a r.l.

LT Corporate Family Rating, Downgraded to Caa2 from B3 review for
downgrade

Probability of Default Rating, Downgraded to Caa2-PD from B3-PD
review for downgrade

Issuer: Swissport Financing S.a r.l.

Backed Senior Secured Bank Credit Facility, Downgraded to Caa1 from
B2 review for downgrade

Backed Senior Secured Regular Bond/Debenture, Downgraded to Caa1
from B2 review for downgrade

Backed Senior Unsecured Regular Bond/Debenture, Downgraded to Caa3
from Caa2 review for downgrade

Issuer: Swissport International AG

Senior Secured Bank Credit Facility, Downgraded to Caa1 from B2
review for downgrade

Backed Senior Secured Bank Credit Facility, Downgraded to Caa1 from
B2 review for downgrade

Issuer: Swissport Investments S.A.

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

Backed Senior Unsecured Regular Bond/Debenture, Downgraded to Ca
from Caa3 review for downgrade

Outlook Actions:

Issuer: Swissport Financing S.a r.l.

Outlook, Changed To Negative From Ratings Under Review

Issuer: Swissport Group S.a r.l.

Outlook, Changed To Negative From Ratings Under Review

Issuer: Swissport International AG

Outlook, Changed To Negative From Ratings Under Review

Issuer: Swissport Investments S.A.

Outlook, Changed To Negative From Ratings Under Review

COMPANY PROFILE

Headquartered near Zurich Airport, Swissport is the world's largest
independent ground handling services company, based on revenue and
the number of airport locations. In 2019, Swissport serviced
flights at 300 airports in 50 countries. The Ground Services
segment accounts for roughly 80% of Swissport's group revenue, with
cargo handling contributing the remainder. In 2019 Swissport
generated revenues and management-adjusted EBITDA of EUR3.1 billion
and EUR413 million, respectively. The company is owned by the
Chinese investment group HNA Group Co., Ltd.




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

EVRAZ PLC: Fitch Affirms LT IDR & Sr. Unsecured Rating at 'BB+'
---------------------------------------------------------------
Fitch Ratings has affirmed Russia-based steel producer EVRAZ plc's
Long-Term Issuer Default Rating and senior unsecured debt
instrument rating at 'BB+'. The Outlook for the Long-Term IDR is
Stable.

The affirmation and Stable Outlook reflect that EVRAZ management
has decided to prudently cut capex and its expectation that the
company will reassess future dividends (within the bounds of the
existing dividend policy) in these uncertain times of the
coronavirus pandemic. Earnings will be considerably lower in 2020
due mainly to weaker steel prices.

EVRAZ is a leading supplier of steel for the Russian rail and
construction markets, placing mostly long products in the market.
It has fully integrated operations, high self-sufficiency in raw
materials and a competitive cost profile, which underpins the sound
profitability of its Russian assets.

Its forecast indicates that measures taken by the company in
response to the market downturn should help to maintain broadly
neutral free cash flow on a cumulative basis over the next three
years. Fitch expects funds from operations net leverage of around
2.5x for 2020 and below 2.0x from 2021, in line with its rating
sensitivities.

KEY RATING DRIVERS

Transparent Financial Policies: Evraz has expressed its commitment
to a net debt/EBITDA target of 2.0x and absolute net debt of USD3
billion-USD4 billion (which includes leases and accrued interest,
whereas Fitch excludes those items from its definition), even under
stressed market conditions. Fitch generally expects management to
consider the medium-term commodity price environment when incurring
capex or recommending any dividends above the minimum USD150
million every half-year.

Fitch anticipates that in response to the pandemic driven market
weakness, the company will limit dividends to the minimum payout
over the next 18 months in line with the company's commitment to
remain within financial policy targets. Fitch also expects that
expansion projects will be postponed and capex will be reduced as
mid-term outlook for steel industry is more lackluster than
projected before.

Lower EBITDA for 2020: Fitch now estimates a significantly lower
EBITDA for 2020 at around USD1.6 billion linked to weak demand
across commodity markets (while Fitch had already factored in lower
coking coal and vanadium prices before the pandemic). Fitch also
anticipates lower contribution from the North American segment
because of lower demand for tubular products. Fitch forecasts a
recovery in 2021 in EBITDA to above USD2 billion and a mid-cycle
target of USD2.1 billion-USD2.2 billion thereafter.

Moderate Leverage: FFO net leverage will be elevated in 2020,
before easing to 1.7x-1.8x for subsequent years, in line with its
rating sensitivities. Fitch expects net debt to remain at or below
USD3.5 billion (as per EVRAZ definition) over the next four years.

Oversupplied Steel Markets: Steel consumption is expected to
contract this year by high single-digit percentage terms globally.
COVID-19 restrictions have impacted manufacturing activity more
extensively than construction, weakening flat steel demand more
than for longs. Russian crude steel production decreased in January
through April 2020 by 4% yoy, holding up better than in other major
steel-producing regions. Due to decreased demand steel mills
brought forward planned maintenance; enacted lockdown measures did
not extend to steelmaking.

Focus Turns to Exports: Major Russian producers are using their
low-cost competitive advantage to divert volumes to export markets,
a high proportion of which is semi-finished steel. Similarly, to
other domestic producers EVRAZ will lose domestic premium and be
more exposed to competitive prices on export markets, which for
EVRAZ is mostly southeast Asia. In these unusual market conditions
EVRAZ is incrementally less affected due to its focus on long
products, with leading market position in construction and rail in
Russia (including a long-term contract with JSC Russian Railways).

Crisis Protocols in Place: To date EVRAZ has only detected isolated
cases among the workforce without any disruptions of production.
EVRAZ has implemented various controls to protect employees,
including travel restrictions, temperature controls at entrance
checkpoints to facilities, provision of personal protection
equipment to all staff that need to attend the workplace as well as
social distancing and hygiene protocols. The company also has
restricted the access of foreign specialists and contractors to
sites where possible.

Cost-Competitive Position: EVRAZ owns competitive metallurgical
coal resources in excess of own requirements (221% self-coverage)
and high-cost iron-ore assets (70% self-coverage). Its NTMK plant
is in the first quartile of the global long products cost curve (on
an integrated basis). A tight iron ore market, a depreciating
rouble and low freight rates are allowing EVRAZ to place additional
volumes of semi-finished products on export markets, maintain high
capacity utilisation and generate adequate cash flow contributions,
albeit at lower margins than mid-cycle assumptions.

Growth Capex Likely Reduced: The management is assessing and
prioritizing capex plans. For 2020, the company will reduce capex
by at least 20%. The fact that Evraz's capex is largely uncommitted
gives the company flexibility on the timing of final investment
decision and project execution. Fitch therefore expects that the
company will focus on projects with high returns and lower
execution risk. The final investment decisions on Evraz's key
growth projects: USD500 million long rail mill at EVRAZ Pueblo,
USD650 million integrated flat casting and rolling facility at ZSMK
and beam mill at NTMK could be postponed in case steel market
weakness persists. Given its expectations that steel market will
not fully recover after the pandemic until 2022 and softening raw
material prices, Fitch anticipates that actual investments could be
20%-30% below the initial guidance.

DERIVATION SUMMARY

Evraz is one of the leading integrated long steel producers in
Russia with 13.5 million tonnes of steel products output in 2019.
It has top market positions for domestic rail and construction
steel as well as coking coal in Russia. EVRAZ is highly integrated
in met coal and iron ore; the latter is rich in vanadium which
contributed material upside to EBITDA in 2018 and to a lesser
extent in 2019.

Similar to PJSC NLMK (BBB/Stable), PAO Severstal (BBB/Stable) and
PJSC MMK (BBB/Stable) EVRAZ benefits from a first quartile position
on the global cost curve for steel-making (on an integrated basis),
but compared with peers it is placed closer to the threshold
towards the second quartile as steelmaking operations are
incrementally higher-cost and iron-ore resources are more expensive
than at Severstal and NLMK.

EVRAZ has higher leverage than Russian peers with FFO gross
leverage of 2.0x-2.5x on a through-the-cycle basis versus 1.0x-1.5x
for Severstal and NLMK and 0.5x for MMK.

KEY ASSUMPTIONS

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

  - Hard coking coal price at USD140/tonne in 2020 and beyond; iron
ore price of USD75/tonne in 2020, USD60/tonne in 2021-2023

  - Vanadium (ferrovanadium) prices at USD20-USD25/kg for the next
three years

  - Coronavirus impact resulting in low double-digit decline in
steel prices in 2020 followed by recovery in 2021

  - EBITDA per tonne in the steel segment (net of vanadium and iron
ore contribution) declines by up to 30% in 2020 due to pressure on
steel prices and increase in less profitable low value-added
product exports; EBITDA margins to recover in 2021

  - Coal volumes to increase by low- to mid-single-digit percentage
terms annually over the next three years

  - EBITDA per tonne for the coal segment to re-base at lower level
linked to lower price assumptions for the coming years

  - Capex reduced to around USD700 million on average in the next
three years

  - Approved USD580 million paid based on 2H19 results and minimum
dividend of USD150 million per half year paid for the next 18
months. Thereafter dividend payout increases in line with the
dividend policy

RATING SENSITIVITIES

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

  - A more conservative financial policy with FFO net leverage
below 1.25x (FFO gross leverage below 1.75x) mid-cycle and not
exceeding FFO net leverage of 1.5x (FFO gross leverage of 2.0x)
through the cycle

  - FFO interest coverage above 9.0x on a sustained basis (2019:
7.5x)

  - Further strengthening of cost position in Russian steel, either
through efficiencies achieved in the production of finished steel
products or iron-ore supplies

  - A lower share of semi-finished products, a higher proportion of
value-added products and better diversification of end-markets
enhancing earnings profile over time

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

  - FFO gross leverage sustained above 2.5x (2019: 2.3x)

  - FFO net leverage sustained above 2.0x (2019: 1.6x)

  - Failure to maintain neutral FCF post-dividend

  - FFO interest coverage below 6.0x on a sustained basis (2019:
7.5x)

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
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.

LIQUIDITY AND DEBT STRUCTURE

Robust Liquidity: At end-2019, EVRAZ had available USD1,423 million
of cash and cash equivalents as well as RUB5 billion committed
revolving credit facility that was drawn at end-1Q20 (three-year
bullet maturity) and an available USD116 million of asset-based
lending facility with an October 2022 maturity. To address the
upcoming USD750 million Eurobond maturity, EVRAZ has signed a
USD750 million committed bank facility with international banks
that is available until March 2021 and has a three-year grace
period before amortisation commences.

The Fitch rating case indicates broadly neutral FCF on an aggregate
basis over the next three years (potentially some negative FCF in
2020 offset by positive FCF in the following two years). EVRAZ is
funded at least until end-2022.

SUMMARY OF FINANCIAL ADJUSTMENTS

  - USD117 million of lease liabilities excluded from the total
debt amount.

  - USD30 million of depreciation and USD8 million of interest for
leasing contracts treated as operating expenditure, reducing
EBITDA.

  - Added the unamortised issue premium to reflect bond notional at
their nominal value.

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.

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).


KAST RETAIL: Quiz to Put Subsidiary Into Administration
-------------------------------------------------------
Business Sale reports that Glasgow-based fashion retailer Quiz will
put its subsidiary Kast Retail into administration, before buying
its stock and assets back for GBP1.3 million and renegotiating its
leases across the UK.

According to Business Sale, announcing a wide restructuring, the
company said that the "economics of operating stores on traditional
leases" was "becoming increasingly difficult".

Quiz is reportedly seeking to appoint Blair Nimmo and Alistair
McAlinden of KPMG as administrators for Kast Retail, which operates
as its wholly owned subsidiary, with 82 standalone stores in the UK
and Republic of Ireland, Business Sale discloses.

If the proposed reacquisition of Kast from administrators goes
through, its other wholly owned subsidiary Zandra Retail Limited
will take on the business assets of Kast, Business Sale notes.

Business Sale states that 822 of Kast Retail's 915 employees will
transfer to Zandra, with job losses expected at the company's
Glasgow head office and Bellshill distribution centre.  The company
will also seek new lease agreements, which Quiz says would enable
it to run an "economically viable store portfolio alongside its
online, UK concession and international channels", according to
Business Sale.

The company, as cited by Business Sale, said that the closure of
its stores due to COVID-19 had caused the administration.

"Physical retail in the UK was facing a major structural challenge
prior to the outbreak of COVID-19," Business Sale quotes Chief
executive Tarak Ramzan as saying.

"While we have taken pro-active actions over the past 18 months to
drive footfall to our stores and renegotiate leases to improve
performance, the significant economic uncertainty we now face as
consumers and businesses emerge from the COVID-19 pandemic has
meant that, in order to ensure a sustainable future for the group,
we have taken this decision to place the subsidiary which operates
our stores into administration."

Quiz says that it has cash of GBP5.93 million along with additional
banking facilities of GBP1.75 million and that it is in discussions
over securing a longer-term line of credit, Business Sale relays.


MONSOON AND ACCESSORIZE: Adena Acquires Business in Pre-Pack Deal
-----------------------------------------------------------------
James Davey at Reuters reports that British fashion retailers
Monsoon and Accessorize will close 35 stores, make 545 staff
redundant and seek rent cuts for remaining shops as part of a
restructuring led by its founder to survive the COVID-19 crisis.

Administrators from business advisory firm FRP were appointed late
on June 9 and immediately sold the companies' business and assets
to Adena Brands, a company ultimately controlled by Peter Simon,
who owned and founded Monsoon in 1973, Reuters relates.

The coronavirus pandemic and the subsequent national lockdown had
made the business unviable, Reuters notes.

According to Reuters, Adena acquired the Monsoon and Accessorize
brands, their digital business, along with the intellectual
property, the head office and design teams, and the group's
distribution centre in Wellingborough, central England.

As part of the deal, Simon will inject up to GBP15 million (US$19.1
million) into the business, Reuters states.

Adena, Reuters says, will now enter talks with the landlords of
Monsoon and Accessorize's 162 remaining stores to see if they can
reach terms to reopen them when the current lockdown ends.  Adena,
as cited by Reuters, said it hopes to save up to 100 stores and
2,300 jobs.


NORD ANGLIA EDUCATION: S&P Affirms 'B-' ICR on Debt & Equity Raise
------------------------------------------------------------------
S&P Global Ratings affirmed its long-term issuer credit rating on
Nord Anglia Education (Bach Finance Ltd.) at 'B-'. S&P also
affirmed its 'B-' issue rating on the upsized EUR1.46 billion
first-lien term loan, with an unchanged recovery rating of '3'
(rounded estimate: 60%).

The COVID-19 pandemic has affected the education provider's
traditional service delivery model, and uncertainty remains as
schools are allowed to reopen in the coming weeks.

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 COVID-19 pandemic continues to harm regions in which Nord
Anglia has a significant presence: China, Southeast Asia, the
Middle East, Europe, and North and Latin America. However, thanks
to Nord Anglia's global presence, government-imposed lockdown
periods and mandated school closures have had a staggered, rather
than sudden, effect on the group's operations. While its campuses
have been closed, the group has continued its operations through
its online platform.

Nord Anglia made fee reductions and hardship funds available in
certain schools, although it has not reported generalized
discounting across its portfolio. Potential delays in fee
collection and an increase in bad debts could harm Nord Anglia's
cash flow generation over the next 12 months, although we note that
this is not currently the case.

S&P said, "We think the COVID-19 pandemic's effect on the global
macroeconomic environment will likely lead to a temporary period of
low utilization rates and stalled topline and EBITDA growth, since
demand will likely struggle to keep up with Nord Anglia's
expansionary efforts. As a result, we anticipate S&P Global
Ratings-adjusted debt to EBITDA to remain above 10.0x (8.0x-9.0x
excluding preference shares) over the course of FY2020 and FY2021,
compared with our previous expectation of progressive leverage
reduction toward 9.0x (7.5x-8.5x excluding preference shares) over
the same period."

The proposed transaction will strengthen Nord Anglia's liquidity
position for the next 12-18 months.   Specifically, it will
increase the group's liquidity sources by about $310 million, since
it will use the proceeds from the term loan add on and the equity
injection to repay the drawings on the upsized RCF. Following the
transaction's completion, Nord Anglia will hold more than $380
million of cash on balance sheet, with about $268 million available
under the $295 million RCF. S&P thinks this will leave Nord Anglia
with a sound liquidity position as it faces increasing uncertainty
around the slowdown in global macroeconomic growth and its
potential effect on future enrollment rates and academic fees.

S&P said, "However, we also note that the proposed transaction adds
to Nord Anglia's already high financial debt burden of $2.1 billion
(excluding the proposed debt issuance, lease liabilities, and
debt-like shareholder instruments).

"We continue to view Nord Anglia's capital structure as
sustainable, aided by ongoing support from its financial sponsors,
good revenue visibility, relatively inelastic demand patterns, and
a favorable cash flow profile.   The nature of the primary and
secondary education industry results in strong revenue visibility.
Furthermore, Nord Anglia's premium orientation reflects relatively
inelastic demand patterns. In the majority of regions where the
group operates, it collects tuition fees a term in advance,
allowing for good revenue visibility and resulting stable demand
patterns--it is less likely for a child to move to a different
school in the middle of an academic year. In addition, we view
positively that Nord Anglia's average student tenure is about 4.5
years." In the past, the group has been able to pass cost inflation
to its customer base through tuition fee increases, supporting
stable profitability margins. These dynamics result in favorable
and steady cash flow patterns, which support liquidity management
and free cash flow and help ensure the sustainability of the
current capital structure.

Baring Private Equity Asia (BPAE) and Canada's Pension Plan
Investment Board (CPPIB), Nord Anglia's majority shareholders, have
also shown a track record of ongoing support, funding some of the
group's past acquisitions and providing additional funds to improve
its liquidity position through the pandemic. With the proposed
transaction, the sponsors will have contributed at least $300
million in additional common equity over the course of FY2019 and
FY2020. S&P thinks such funding is key to ensuring the
sustainability of Nord Anglia's capital structure, and it could
support credit metrics going forward.

S&P said, "The stable outlook reflects our expectation that Nord
Anglia will achieve strong year-on-year growth of 11%-13% in 2020,
aided by acquisitions and new school openings, with relatively flat
revenue growth in FY2021. Although we anticipate adjusted EBITDA
margins will dip slightly in FY2020, we expect a recovery toward
30% in FY2021 as operations normalize and the amount of exceptional
charges falls. We forecast that adjusted debt to EBITDA will remain
at 10x-11x, including shareholder instruments, by the end of FY2021
(8x-9x, excluding shareholder instruments). However, we anticipate
leverage metrics to swiftly improve in FY2022, with adjusted debt
to EBITDA below 10x (below 8x excluding shareholder instruments)
and positive free operating cash flow (FOCF) generation after
expansionary capital expenditure (capex). The stable outlook also
reflects the track record of shareholder support, with at least
$300 million of common equity injections in the past two years.

"We could lower our ratings on Nord Anglia if the group were to
underperform our base case, reporting a fall in revenue or
profitability. We could also lower our ratings if the group failed
to reduce its adjusted debt to EBITDA toward 8.5x (excluding
shareholder loans). This could happen if the current global
macroeconomic conditions caused Nord Anglia's enrollment rates and
fee growth to deteriorate over a prolonged period, harming the
group's growth prospects.

"We could also lower our ratings if the group or its financial
sponsor were to consider buying back a proportion of its
outstanding loans at a discount to its par value. We would consider
such a transaction akin to a distressed exchange and therefore
tantamount to a default.

"Although a positive rating action is unlikely over the next 12
months, we could raise our ratings on Nord Anglia if its
performance materially exceeded our base case. For example, we
could consider an upgrade if the group reduced its adjusted debt to
EBITDA to below 7.5x, excluding shareholder instruments, and we saw
sizable FOCF generation on a sustainable basis. An upgrade would
also require EBITDA cash interest coverage well above 2.0x at all
times, with its owners' financial policy supporting these ratios."


TUDOR ROSE 2020-1: S&P Assigns Prelim BB+ Rating on X1-Dfrd Notes
-----------------------------------------------------------------
S&P Global Ratings has assigned preliminary credit ratings to Tudor
Rose Mortgages 2020-1 PLC's class A to X1-Dfrd notes (excluding the
RFN notes). At closing, the issuer will also issue unrated class
RFN, X2, Z, and residual certificates.

Tudor Rose Mortgages 2020-1 is a U.K. pool of residential loan
mortgages (first-ranking and BTL in England and Wales). S&P has
received loan-level data as of Jan. 31, 2020.

At closing, the issuer will purchase the beneficial interest in a
portfolio of U.K. BTL residential mortgages from the seller, using
the proceeds from the issuance of the rated and unrated notes. This
same portfolio will have been purchased initially from the
originator by the seller.

S&P said, "The issuer is an English special-purpose entity, which
we assume to be bankruptcy remote for our credit analysis. We
expect to assign credit ratings on the closing date subject to a
satisfactory review of the transaction documents and legal
opinions."

The notes will pay interest quarterly on the interest payment dates
in March, June, September, and December, beginning in September
2020. The rated notes pay interest equal to compounded Sterling
Overnight Index Average (SONIA) plus a class-specific margin with a
further step-up in margin following the optional call date in June
2023. All of the notes reach legal final maturity in June 2048.

The transaction has an early optional redemption date, a first
optional redemption date, and a second optional redemption date. On
the EORD (December 2021), on the FORD (June 2023), and on the
interest payment date following the FORD (September 2023), the call
option holder has the possibility to exercise its call option.

The transaction is exposed to basis risk as the mortgages reference
to a fixed rate while the notes reference compounded SONIA.

The issuer benefits from a fixed-floating swap to hedge the
mismatch of the exposure to the fixed rate. The swap's notional
follows a fixed schedule. The issuer pays a fixed rate and receives
SONIA.

S&P applied basis risk once the swap expires and spread compression
during the fixed-rate period and once all the loans have reverted
to floating.

Under the transaction documents, interest payments on all classes
of rated notes (excluding the class A notes) can be deferred.
Consequently, any deferral of interest on the class B-Dfrd, C-Dfrd,
D-Dfrd, E-Dfrd, F-Dfrd, and X1-Dfrd notes would not constitute an
event of default.

S&P said, "Our preliminary ratings address the timely payment of
interest and the ultimate payment of principal on the class A notes
and the ultimate payment of interest (including interest on
deferred interest) and principal on the other rated notes.

"We have analyzed the effect of increased defaults by testing the
sensitivity of the ratings to two different levels of movements.
Under our scenario analysis, the preliminary ratings on the notes
in both scenarios would not suffer a rating transition outside of
that considered under our credit stability criteria."

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."

  Preliminary Ratings

  Class    Prelim. Rating    Prelim. amount (EUR)
  A         AAA (sf)          TBD
  B-Dfrd    AA (sf)           TBD
  C-Dfrd    A+ (sf)           TBD
  D-Dfrd    A- (sf)           TBD
  E-Dfrd    BBB- (sf)         TBD
  F-Dfrd    BB (sf)           TBD
  RFN       NR                TBD
  X1-Dfrd   BB+ (sf)          TBD
  X2        NR                TBD
  Z         NR                TBD
  Residual
  Certificates   NR           TBD

  NR--Not rated.
  TBD--To be determined.


UNIQUE PUB: Fitch Cuts Ratings on 2 Tranches to 'B'
---------------------------------------------------
Fitch Ratings has affirmed Unique Pub Finance Company Plc's class
A4 notes at 'BB+' and downgraded the class M and class N notes to
'B' from 'B+' and removed them from Rating Watch Negative. The
Outlook is Negative.

Unique Pub Finance Company Plc      

  - Unique Pub Finance Company Plc/Debt/2 LT; LT BB+; Affirmed

  - Unique Pub Finance Company Plc/Debt/3 LT; LT B; Downgrade

  - Unique Pub Finance Company Plc/Debt/4 LT LT B; Downgrade

RATING RATIONALE

The rating actions reflect its expectation that the credit profile
and free cash flow debt service coverage ratios will continue to be
negatively impacted by a severe demand shock related to the
coronavirus pandemic. The affirmation of the class A4 notes reflect
significant headroom in the projected metrics, which allows them to
withstand the current stress. The downgrade of the class M notes is
driven by their concentrated amortisation profile in 2021-2024
coinciding with the demand shock and also reflects limited room for
notes' deferral. The downgrade of the class N notes is due to their
subordination to the class M notes and therefore their rating being
capped by the class M notes, despite their stronger metrics.

The Negative Outlook reflects significant uncertainty around the
duration of government ordered lockdown measures, which are
severely damaging to the UK economy, with the UK pub sector being
particularly exposed. The Outlook also reflects concurrent rapid
amortisation of the class M notes with the senior class A4 notes
and potential need for use of the debt service reserve account
(DSRA) and liquidity facility, which is indicative of a weaker
credit profile for all notes.

Under Fitch's revised rating case, projected DSCRs have fallen
closer to downgrade sensitivity levels driven by the significant
projected near-term cash flow stresses, despite ongoing stability
in long-term metrics. The issuer's liquidity position remains
comfortable throughout 2020. Fitch currently assumes the 2020 shock
to be progressively recovered by 2022, but if the severity and
duration of the outbreak is longer than expected, Fitch will revise
the rating case will accordingly.

KEY RATING DRIVERS

Coronavirus Affecting Demand

The coronavirus pandemic has resulted in an unprecedented and
ongoing impact on pub businesses as government lockdown measures
continue to be enforced that prevent people from visiting pubs.
Revenues may fall to zero while these measures remain in place. The
potential extent of the near-term stresses is unprecedented. During
early March, many pubs were experiencing significant declines in
revenues as people were starting to voluntarily limit their
movement. The impact on revenue increased during the month as the
UK government ordered all pubs to close and a full countrywide
lockdown.

Under its revised Fitch rating case, Fitch assumes significant
revenue declines reflective of ongoing lockdown measures, with the
government currently planning to start reopening pubs from July 4,
2020. If this timetable is maintained, this means pubs will have
been fully closed for around 3.5 months. Fitch then assumes gradual
recovery during the remainder of 2020 and 2021. This results in an
annual decline of around 60% in 2020. Revenue will then
progressively normalise and reach 2019 levels by 2022.

Defensive Measures

Unique has some flexibility to partially offset the impact of the
expected significant revenue shortfall. In its revised FRC, for
managed pubs Fitch assumes a significant reduction in fixed costs
to reflect the period of full pub closure, during which Fitch
understands it will be possible to significantly reduce most
components of operating expenditure. Fitch expects tenanted pubs to
have some cost flexibility at the pub level. Fitch also assumes
some reduction in maintenance capex.

Credit Metrics - Recovery from 2021

Under the updated FRC, the class A4, M and N metrics deteriorate to
2.1x, 0.9x and 1.5x, respectively, versus 2.5x, 0.9x and 1.7x at
the last review in March 2020. This is driven by the negative
short-term impact of reduced cash flow under the updated FRC. After
the 2020 shock, Unique's projected cash flows progressively recover
from the impact, which despite the deterioration in outlook since
the previous review, still indicates a temporary impairment of its
credit profile. This reflects its view that demand levels within
the pub sector will return to normal in the medium term. However,
Fitch is closely monitoring the development in the sector as
Unique's operating environment has substantially worsened and Fitch
will revise the FRC if the severity and duration of coronavirus is
longer than expected.

Solid Liquidity Position with Potential Erosion

Unique has sufficient liquidity to cover at least 2020-2021 needs.
As of end-May Unique had GBP109 million in cash (including GBP65
million debt service reserve account cash) and GBP152 million
liquidity facility, while scheduled debt service is GBP46.7 million
in 2020 and GBP119.4 million in 2021.

Under the FRC, Unique has a FCF deficit for class M rapid
amortisation in 2021-2024, but this is covered by available cash
and the DSRA. Consequently, the class M amortisation profile may
erode protective features for the senior class A4 notes and the
most junior class N notes.

Sensitivity Case

Fitch has also run a more severe sensitivity case that builds on
the rating case, and assumes the crisis worsens materially from its
current levels with a longer demand shock versus the revised rating
case, resulting in significant revenue reductions of around 70%
during 2020 and progressive recovery by 2025. Mitigation measures
are unchanged compared with the FRC. The sensitivity shows that
under this scenario projected FCF DSCRs for the class A4, M and N
notes fall to 1.7x, 0.5x and 1.5x, respectively.

RATING SENSITIVITIES

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

Fitch does not anticipate an upgrade, as reflected in the Negative
Outlook. A quicker than assumed recovery from the COVID-19 shock,
supporting sustained credit metrics recovery to levels stronger
than outlined in the negative sensitivities below could allow us to
revise the Outlook to Stable.

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

A slower than assumed recovery from the COVID-19 shock resulting in
projected FCF DSCRs below 1.3x for the class A4 notes. For the
class M notes and N notes the use of DSRA and liquidity facility
could increase the chance of further negative rating actions as it
would be indicative of a weaker credit profile. The class N notes'
rating is also capped by the class M notes' rating.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Public Finance 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 three 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.

TRANSACTION SUMMARY

Unique is a whole business securitisation of a portfolio of 1,877
tenanted in the UK owned and operated by Stonegate Pub Company.

Key Rating Drivers - Summary Assessments

  - Industry Profile - Midrange

  - Sub-KRDs: Operating Environment - Weaker; Barriers to Entry -
Midrange; Sustainability - Midrange

  - Company Profile - Midrange

  - Sub-KRDS: Financial Performance - Weaker; Company Operations -
Midrange; Transparency - Weaker; Dependence on Operator - Midrange;
Asset Quality - Midrange

  - Debt Structure: Class A - Midrange; Class M and N - Weaker

  - Sub-KRDs: Debt Profile: Class A - Midrange; Class M and N -
Weaker; Security Package: Class A - Stronger; Class M and N -
Midrange; Structural Features: Class A - Midrange; Class M and N -
Weaker.

The coronavirus pandemic and related government containment
measures worldwide create an uncertain environment for pubs sector
in the near term. While Unique's most recent performance data may
not have indicated significant impairment so far, material changes
in revenue and cost profile likely to worsen in the coming weeks
and months as economic activity suffers and government restrictions
are maintained or broadened. Fitch's ratings are forward-looking in
nature, and Fitch will monitor developments in the sector for the
severity and duration of the crisis and its impact, and incorporate
revised base- and rating-case qualitative and quantitative inputs
based on expectations for future performance and assessment of key
risks.

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.

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).


[*] UK: Coach Operators Seek GBP370MM Taxpayer Bailout
------------------------------------------------------
Oliver Gill at The Sunday Telegraph reports that coach operators
are pleading for a GBP370 million taxpayer bailout amid fears for
the future of more than 40,000 jobs across the industry.

A letter from the Confederation of Passenger Transport to Rishi
Sunak, seen by The Sunday Telegraph, warns school bus services
could grind to a halt if ministers fail to act quickly.

Industry chiefs want a cash injection of GBP65 million a month
until the end of the year, a bespoke job retention scheme and coach
tour operators to be reclassified as leisure businesses so that
they can access additional Covid-19 support, The Sunday Telegraph
discloses.

Some 550 operators have signed the letter including larger firms
such as Selwyns Travel, Park's of Hamilton and Lucketts Travel, an
arm of National Express, The Sunday Telegraph relates.

According to The Sunday Telegraph, they said: "If we want to bring
tourists back into our local areas, get people back in our
theatres, shops, restaurants, cafés and bars, not to mention get
people back to school and work, it is vital that coach businesses
have the financial support to withstand the current crisis."



                           *********


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

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

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

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