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

                          E U R O P E

          Tuesday, June 16, 2020, Vol. 21, No. 120

                           Headlines



F R A N C E

FAURECIA SE: Fitch Alters Outlook on BB+ LT IDR to Negative


G E R M A N Y

MINDA KTSN: Files for Bankruptcy Protection in Germany
WESER-METALL GMBH: To Commence Sale Talks Next Month


I C E L A N D

ICELAND TOPCO: Fitch Affirms 'B' LongTerm IDR, Outlook Stable


I R E L A N D

LAURELIN 2016-1: Moody's Confirms B2 Rating on Cl. F-R Notes
RYE HARBOUR: Fitch Cuts Class F-R Debt to 'B-sf'


I T A L Y

BANCA FARMAFACTORING: Moody's Alters Outlook to Developing


R U S S I A

KRASNOYARSK REGION: Fitch Alters Outlook on BB+ LT IDRs to Negative
NIZHNIY NOVGOROD: Fitch Affirms BB LongTerm IDRs, Outlook Stable
ORENBURG REGION: Fitch Affirms BB+ LongTerm IDRs, Outlook Stable
TATFONDBANK PJSC: Executives Suspected of US$600MM Embezzlement


S P A I N

PAX MIDCO: Moody's Cuts CFR to B3, Under Review for Downgrade


T U R K E Y

ODEA BANK: Fitch Affirms 'B' LongTerm IDRs, Outlook Negative
OPTIMA FAKTORING: Moody's Withdraws Caa1 Corp. Family Rating
SEKERBAN TAS: Fitch Puts 'B-' LT IDRs on Rating Watch Negative


U K R A I N E

DTEK RENEWABLES: Fitch Cuts LongTerm IDR to B-, on Watch Negative
UKRAINE: Moody's Hikes LT Issuer & Senior Unsecured Ratings to B3


U N I T E D   K I N G D O M

AWAZE LIMITED: Moody's Confirms B3 CFR, Outlook Negative
EDINBURGH FESTIVAL: Warns of Facing Insolvency Amid Pandemic
PICK FISK: Owes Cornelis Vrolijk-Backed Firms Over GBP1.5MM
PJ BROWN: Enters Administration Amid Covid-19 Pandemic
SEAFOOD PUB: Enters Administration After Failing to Secure Loan

TORO PRIVATE I: Fitch Cuts IDR to CCC+, Off Rating Watch Negative
TRAVELODGE: Landlords Demand Further Clarity on CVA Proposal

                           - - - - -


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F R A N C E
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FAURECIA SE: Fitch Alters Outlook on BB+ LT IDR to Negative
-----------------------------------------------------------
Fitch Ratings has revised French automotive supplier Faurecia
S.E.'s Outlook to Negative from Stable, while affirming the
company's Long-Term Issuer Default Rating at 'BB+'.

The Outlook revision reflects the possibility that higher leverage
stemming from the debt-financed acquisition of Clarion in 2019 may
not reduce in line with Fitch's expectations for a 'BB+' rating
before 2022, because of worse-than-expected cash generation induced
by the effects of the coronavirus pandemic.

A protracted weakened economic environment could have a sustained
impact on global vehicle production, further stressing Faurecia's
already weak free cash flow generation in the next two-to-three
years and hindering deleveraging.

KEY RATING DRIVERS

Drop in Automotive Production: Fitch expects global vehicle
production to fall about 20% in 2020, in line with its baseline
macro-economic forecasts, which include a major global economic
downturn this year. Fitch expects vehicle production to be
particularly impacted in 1H20, followed by a recovery in 2H20 and
2021, albeit to lower levels than assumed prior to the pandemic.
Strict lockdown measures in the largest automotive markets
including Europe and North America have led to extended production
stoppages of several weeks, affecting Faurecia's revenue.

Profitability Hit: The fall in revenue will strongly impair
fixed-cost absorption and will have a material effect on
profitability, particularly in 1H20. This will compound the
dilution of operating margin from the consolidation of Clarion,
because of its lower profitability than Faurecia's, as well as
restructuring and integration costs. Fitch expects the operating
margin and funds flow from operations margin to decline to 1% and
5.5%, respectively, in 2020, compared with 6% and 8.3% in 2019,
including restructuring costs and Fitch's adjustments for leases.

Margin Recovery Expected in 2021: The magnitude of the impact will
depend on the duration and extent of the macro-economic shock,
while profitability recovery will depend on the success of recently
announced and upcoming cost-saving initiatives. Fitch projects the
operating margin will rebound to about 5% in 2021 and towards 7% in
2023.

Pressure on FCF: Faurecia's FCF margin has been at the low end of
Fitch's range for a 'BB+' rating, leaving limited rating headroom
following the increase in leverage from the Clarion acquisition.
Its expectations of material working-capital absorption in 2020 and
limited flexibility to cut investment beyond 2020, because of
Faurecia's business refocus and accelerating demand towards
shifting automotive trends, will further constrain FCF in the next
two-to-three years.

Uncertainty over FCF Recovery: Its current base case includes a FCF
margin at around negative 4% this year but significant uncertainty
around working-capital movement makes FCF projection difficult.
Fitch anticipates a recovery to just around breakeven in 2021 and
around 1% thereafter.

Leverage Increasing Further: Fitch expects negative FCF and lower
underlying FFO to trigger a further increase in FFO net leverage to
above 4x at end-2020. This follows an increase to 1.8x at end-2019
from 1.1x at end-2018, because of the fully debt-funded Clarion
acquisition and compares with a mid-point of 2.5x in its Automotive
Suppliers Rating Navigator. Its base case includes some
deleveraging to about 2.5x at end-2021 and towards 2.0x by
end-2023. However, uncertainty regarding the direction of global
production in the next two-to-three years and Faurecia's weak
record of FCF generation could delay or constrain projected
deleveraging.

Protracted Business Integration: The pandemic could lengthen the
integration of the Clarion acquisition that closed in 1H19 and the
overall deployment of the new business group combining Clarion with
the recently-acquired Parrot Automotive and Coagent Electronics.
Fitch expects these acquisitions to bolster Faurecia's positioning
in the higher added-value and faster-growing intelligent cockpit
business, including stronger positions in human-machine interface,
audio systems and cloud-data management, and further opportunities
in aftermarket and fleet solutions.

Electric Vehicle Risk: The risk of lost revenue and earnings
stemming from the growth of electric vehicles with no exhaust line
is significant for Faurecia's clean mobility division. However,
Fitch believes this should be mitigated in the short- to
medium-term by the growth of hybrid vehicles that have both a
combustion engine and an electric powertrain and by the company's
ambitious targets to increase business in the profitable
off-highway and heavy truck segments.

Expected Change in Shareholding Structure: Fitch expects the merger
between Fiat Chrysler Automobiles NV (FCA, BBB-/Stable Outlook) and
Peugeot S.A. (PSA, BBB-/Stable Outlook), Faurecia's parent with
46.3% stake and 63% voting rights, to go through by early 2021.
This should result in PSA distributing to its shareholders its
stake in Faurecia. Fitch does not expect any direct impact on
Faurecia from this transaction, as it already rates Faurecia on a
standalone basis because of its assessment of a weak parent and
subsidiary rating linkage between the two entities.

Large Global Supplier: The 'BB+' rating of Faurecia is supported by
its diversification, size as one of the top-10 global tier-one
automotive suppliers and leading positions in its key markets. Its
large and diversified portfolio of products and systems is a
strength in the global automotive sector, which is being reshaped
by the development of global platforms and the acceleration of new
technologies and demand from large global manufacturers. However,
Faurecia still has limited exposure to the more stable replacement
market as well as somewhat lower customer diversification and a
portfolio of lower value-added products than stronger global auto
suppliers.

DERIVATION SUMMARY

Faurecia's business profile compares adequately with auto suppliers
at the low-end of the 'BBB' category. The share of the aftermarket
business, which is less volatile and cyclical than sales to
original equipment manufacturers, is smaller than at tyre
manufacturers such as CGE Michelin (A-/Stable) and Continental AG
(BBB/Stable). Faurecia's portfolio has fewer products with higher
added-value and strong growth potential than other leading and
innovative suppliers such as Robert Bosch GmbH (F1+), Continental
and Aptiv PLC (BBB/Stable). However, similar to other large and
global suppliers, it has a broad and diversified exposure to
leading international OEMs, as well as a global reach.

With an EBIT margin of 6%-7%, excluding the impact of the
coronavirus pandemic in 2020-2022, profitability is lower than that
of investment grade-rated peers such as Aptiv, Nemak S.A.B. de C.V.
(BBB-/Negative) and Schaeffler AG (BBB-/Negative), but higher than
Tenneco, Inc. (B+/Negative). Faurecia's FCF is weak compared with
auto suppliers rated 'BB+'/'BBB-' in Fitch's portfolio. Net
leverage is higher than investment-grade peers' following the
Clarion acquisition and Fitch believes that significant
deleveraging is at risk in the foreseeable future because of the
pandemic.

Fitch applied its PSL methodology and assessed that Faurecia can be
rated on a standalone basis. No country-ceiling or operating
environment aspects affect the ratings.

KEY ASSUMPTIONS

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

  - Global vehicle production to decline about 20% in 2020 with
only partial recovery in 2021, and low-single-digit growth over the
medium term

  - Organic revenue growth above vehicle production growth up to
2023

  - Higher price pressure from customers, notably in 2020, over the
next two-three years

  - Operating margin to fall to 1% in 2020 and to gradually recover
to 7% by 2023, including restructuring costs and Fitch's
adjustments for leases

  - Aggregate working capital outflows of around EUR0.4 billion in
2020-2023

  - Average annual capex at 7.3% of sales in 2020-2023

  - No dividend paid in 2020, EUR120 million in 2021 and increasing
towards EUR170 million in 2023

  - No share buybacks for the next three years

  - Acquisitions of EUR0.2 billion per year in 2020-2023

RATING SENSITIVITIES

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

  - EBIT margin above 8% (2019: 6%, 2020F: 1%, 2021F: 4.9%)

  - FCF margin above 1.5% (2019: 0.4%, 2020F: -3.8%, 2021F: 0.1%)

  - FFO net leverage below 1.5x (2019: 1.8x, 2020F: 4.2x, 2021F:
2.6x)

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

  - EBIT margin below 5%

  - FCF margin below 0.5%

  - FFO net leverage above 2.5x

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

Strained but Sound Liquidity: Liquidity is supported by around
EUR1.8 billion of readily available cash, incorporating Fitch's
adjustments for minimum operational cash of about EUR0.4 billion at
end-March 2020. This, together with a committed EUR1.2 billion
revolving credit facility (EUR0.6 billion drawn) available until
June 2024, is expected to more than cover debt due by end-2020.
Faurecia also retains access to the euro commercial paper markets
via its EUR1.3 billion programme. Significant FCF absorption
expected by Fitch in 1H20 will, however, strain liquidity but Fitch
expects a return to moderately positive FCF generation after 2020.

Unbalanced Working Capital Structure: Faurecia's balance sheet
included a substantial amount of trade account payables of EUR5.3
billion at end-2019. Payables outstanding have increased to 110-125
days in the past couple of years, much higher than main peers',
although the end-2019 figure was somewhat distorted by the Clarion
consolidation around mid-year. Trade payables have increased by
EUR1.1 billion between 2017 and 2019, which is more than the EUR0.8
billion increase in revenue in the same period. This could lead to
a rise in Faurecia's financial debt if some suppliers are not able
to maintain such long payment arrangement, particularly in the
current unfavorable environment.

Diversified Debt Structure: Faurecia's debt structure consists
mainly of three euro-denominated unsecured bonds for a total
nominal amount of EUR2.2 billion and several euro and US dollar
tranches of Schuldscheindarlehen for EUR0.7 billion-equivalent
nominal amounts. Faurecia also raises debt through various bank
credit lines, including at the level of its subsidiaries and can
use account receivables factoring (several receivables
securitisation programmes in different countries) to fund its
working capital needs. In April 2020, it signed and drew down a new
EUR0.8 billion term loan maturing in April 2021, which can be
extended by six months at Faurecia's option.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch views the profit-and-loss item - restructuring costs - as
operating costs

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).




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G E R M A N Y
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MINDA KTSN: Files for Bankruptcy Protection in Germany
------------------------------------------------------
The Hindu reports that Minda KTSN Plastic Solutions GmbH & Co. KG
(MKTSN), the German subsidiary of auto components maker Minda
Corporation, has filed for bankruptcy protection in Germany after
its Indian parent decided not to infuse any future capital into the
company.

"After extensive deliberations and considerations on the current
and future cash flow requirements of MKTSN clubbed with COVID-19
pandemic impact, the board of directors have decided not to
undertake further financial exposure in MKTSN and advised that the
capital be allocated for growth and profitable business
opportunities," Minda Corporation said in a filing with the BSE,
The Hindu relays.  "Thereafter, MKTSN has filed for insolvency in
Germany," the statement added.

Earlier, the company's board had met to review the request to
infuse further capital in MKTSN.

The debt and other financial details as well as the employee base
of the company have not been made available on the company's
website, the report notes.

MKTSN, a manufacturer of kinematic and non-kinematic plastic
components for the automotive industry, was acquired by Minda
Corporation in 2007.

The company has since infused more than EUR35 million in MKTSN. The
company is headquartered in Germany and has production sites in
Pirna (Germany) and through its subsidiaries in Poland, Czech
Republic and Mexico.

"We expect a positive outcome for all our stakeholders in the long
run despite the insolvency filing. We are focusing on channelising
our precious capital towards tremendous business opportunities of
profitable growth, with the view of enhancing EBITDA Margin and
ROCE," the report quotes Ashok Minda, chairman and group CEO, Minda
Corporation, as saying.  "This move, is expected to enhance Minda
Corp's EBIDTA by 2% and ROCE by 5%," he said.

He said over the years, the group in India had gained expertise in
plastic technology to build kinematic and non-kinematic plastic
parts and set up business in India for light weighting and value
added interior kinematics parts.

R. Laxman, Group CFO, Minda Corporation, said "MKTSN has been
operating in a challenging and competitive market in Europe. We
truly left no stone unturned to improve the fortunes of MKTSN over
the years, however, the onset of COVID-19 has rendered all our and
MKTSN's efforts in vain," The Hindu relays.


WESER-METALL GMBH: To Commence Sale Talks Next Month
----------------------------------------------------
Michael Hogan at Reuters reports that German lead producer
Weser-Metall GmbH has received interest from a "large number" of
potential buyers and plans to start negotiations over a sale next
month, the administrator for the insolvent firm said on June 15.

The Nordenham-based group, which is owned by French metals producer
Recylex, filed for insolvency in May, Reuters recounts.

It is currently working under self-administration, which means
Recylex no longer has control of the company, Reuters notes.

"There are large numbers of interested parties in Weser-Metall,"
Reuters quotes Dirk Schoene, the administrator appointed to
supervise the process, as saying in a statement.

According to Reuters, Mr. Schoene said informal purchase offers
should be submitted by mid-June and it is planned to start
negotiations with potential purchases from mid-July.

Weser-Metall Chief Executive Koen Demesmaeker said in a statement
the company has resumed production but demand is currently very low
because of the impact of the coronavirus crisis, Reuters relates.




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I C E L A N D
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ICELAND TOPCO: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Iceland Topco Ltd's Long-Term Issuer
Default Rating at 'B' with Stable Outlook. Fitch also affirmed the
senior secured notes issued by Iceland Bondco PLC, a fully,
indirectly owned subsidiary of Iceland Foods Topco Ltd, at
'B+'/'RR3'/53%.

The rating reflects Iceland's aggressive financial policy through
its financing of the GBP115 million buyout of sole external
investor Brait's 63% stake with cash at a time of high funds from
operations adjusted gross leverage. Its affirmation reflects the
specialist business model focused on the frozen food and
value-seeking consumer segments, which have proven defensive
through consumer cycles. Fitch expects that these segments could
benefit in a post-pandemic environment of weak consumer confidence
and greater focus on low prices by consumers.

Iceland benefits from strong liquidity following the initial
payment of GBP60 million of the share repurchase. The remaining
payments are deferred, which Fitch expects will be funded by
internal cash flow generation, mainly by reducing capex.

KEY RATING DRIVERS

Tight Rating Headroom: The group's financial headroom remains tight
following the recently announced GBP115 million acquisition of
Brait's shares being funded by Iceland, which signals an aggressive
financial policy in the context of high leverage. FFO adjusted
gross leverage is expected to fall marginally slower to 6.8x in
financial year to March 2023 from 7.6x in FY19, which compares with
its prior forecast of 6.7x by FYE23 and a negative sensitivity of
7.0x. Fitch expects no debt reduction in FY20 while deferred
transaction payments in FY22 and FY23 are expected to be funded
primarily by reduced capex, thus not materially affecting leverage
metrics.

Strong Liquidity Position: A solid liquidity position underpins the
rating. Iceland reported a cash balance in excess of GBP140 million
on 8 June 2020, following the first GBP60 million payment to fund
its share repurchase from Brait. Fitch expects the cash balance to
reduce upon the repayment of its GBP40 million notes due on June
15, 2020. The company has strengthened its liquidity via better
trading performance during the pandemic, increased borrowings under
financial leases (in FY20), and a new GBP20 million bilateral loan
(signed in June 2020) along with the announced capex cutbacks.

Upgraded Forecasts: Fitch's rating case expects that Iceland, along
with other food retailers, will benefit from strong volume growth
during the pandemic with some impact on EBITDA margin due to
coronavirus-related exceptional costs. Fitch expects Iceland to
benefit from a recessionary environment post-pandemic and forecasts
slightly higher EBITDA relative to its previous rating case,
assuming a floor in sales growth in FY21 (at least 4% of the
expected 8% growth in like-for-like sales). Fitch sees, however,
some uncertainty on future sales growth, also due to the announced
reduced capex programme.

Reasonable EBITDA Margins: Profit margins are still satisfactory
relative to other rated UK food retailers, at 4.5% at FYE19),
albeit down from 5.2%-5.7% in 2016-2018. Tough competition on
prices, inflationary wage pressures, increasing online segment
contribution, investment in store openings - which take time to
mature - remain the main drivers of current and projected margins.
Fitch expects Iceland's cost-saving plan, along with the roll-out
of the higher-margin Food Warehouse concept, to mitigate pressures,
leading to stable margins over the medium term.

FCF Generation to Improve: The announced reduced capex programme
(GBP40 million p.a.) is below its previous rating case at 2%
(aligned with historical levels) and will improve the free cash
flow margin towards an average 1% post-FY21. This will support
liquidity when deferred payments under the share buyback
transaction fall due. Its negative FCF margin at 0.5% in FY19
reflected increased investments to refresh its stores, develop
larger store formats, and expand distribution capacity. Fitch
expects prudent capital allocation between modernisation of the
store estate, growth and debt reduction to manage leverage, which
will now be balanced alongside deferred payments to shareholders.

Specialist Business Model: Its rating reflects Iceland's specialist
business model as a niche operator that focuses on the frozen food
and value-seeking consumer segments, which have proven defensive
through consumer cycles. Despite recent shifts in the shopping
habits of the UK consumer and the strong growth of hard
discounters, Iceland mildly increased its share in the UK grocery
market between 2008 and 2020. This has been achieved by greater
differentiation in their product offering, improved pricing,
investment in stores and formats, as well as improved brand
positioning with regard to environmental and sustainability
aspects. All this helps to broaden and diversify its customer
base.

Competitive UK Grocery Market: Fitch expects competitive pressures
to remain intense in the UK food retail industry, which continues
to adapt to changing consumer shopping habits driven by e-commerce,
convenience and the rising numbers of hard discounters. All these
trends have led to a gradual erosion of profitability across the UK
food retailing sector, bringing it more in line with developed
western European markets', despite a still high market
concentration on the top-four players.

Food Retailers Adapting: The UK food retail sector has seen a
significant repositioning with players implementing a clearer focus
on their target customers, pricing, product range and new store
formats. Fitch views the current competitive landscape as more
manageable compared with non-food competition, due to the return of
food price inflation, improved response from traditional retail to
discounters, and limited scope for further large-scale
consolidation following the blocked Sainsbury/Asda merger by the
UK's competition authority.

DERIVATION SUMMARY

Iceland's business risk profile as a mostly UK-based specialist
food retailer is constrained by the company's modest size and
diversification compared with other Fitch-rated European food
retailers such as Tesco PLC (BBB-/Stable) and Ahold Delhaize NV
(BBB+/Stable), all of which have leading market shares in their
core domestic markets, larger scale, as well as greater
diversification by product, store format, distribution channel, and
geography.

Iceland continues to invest in expanding selling space to protect
its market position in the growing UK discount food retail segment.
This leads to modest FCF margins, which are broadly in line with
the sector's, but limit material near-term deleveraging. This,
together with structurally higher financial leverage than larger
peers' and an aggressive financial policy, confines the rating
currently to the 'B' category.

Compared with French specialist food retailer also active in frozen
foods, Picard Bondco SA (B/Negative), Iceland is larger in size,
but weaker in profitability and FFO. Picard operates mostly in the
higher-margin premium segment. On the other hand Picard's financial
risk profile and financial leverage are higher than Iceland's, with
FFO adjusted net financial leverage at 9.4x following two
consecutive dividend recaps in December 2017 and May 2018.

KEY ASSUMPTIONS

  - FY21 revenue growth to benefit from increasing food consumption
at home. Fitch forecasts 8% like-for-like sales growth in FY21, of
which around 50% is sticky (carries over to FY22). For FY22-FY23,
Fitch expects slower growth of sales of 2.1%, underpinned by new
stores.

  - EBITDA margin to decrease to 4% in FY21, on the back of
additional costs in stores and to support a rapid increase in
online sales. EBITDA margin to remain at 4.1% in FY22-FY23.

  - Capex at around GBP40 million over the next three years, on the
back of reduced investments on new stores.

  - No dividends or M&A activity expected in FY20-FY23.

Key Recovery Rating Assumptions

The recovery analysis assumes that Iceland would be considered a
going concern in bankruptcy and that the company would be
reorganised rather than liquidated. Fitch has assumed a 10%
administrative claim.

Iceland's going-concern EBITDA is based on FY20 EBITDA discounted
by 20%. The going-concern EBITDA estimate reflects Fitch's view of
a sustainable, post-reorganisation EBITDA level upon which it bases
the valuation of the company, reflecting the impact of diminished
capex going forward.

An enterprise value (EV)/EBITDA multiple of 4.5x is used to
calculate a post-reorganisation valuation, reflecting the niche
business position, small scale and fairly mature growth prospects.

Its debt waterfall assumptions take into account Iceland's debt
position at March 29, 2020, reflecting the repayment of GBP40
million of bonds in June-July 2020 and a new super senior GBP20
million short-term loan in 1Q21. In addition, Fitch considers its
GBP30 million revolving credit facility (RCF) as fully drawn and
super senior to the senior secured notes.

The allocation of value in the liability waterfall results in a
Recovery Rating 'RR3' for the senior secured notes issued by
Iceland Bondco PLC, indicating a 'B+' instrument rating with an
output percentage based on the current assumptions of 53%.

RATING SENSITIVITIES

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

Fitch views an upgrade of the IDR as unlikely over the next three
years, unless Iceland sees material improvements in operating
performance and adopts more conservative capital allocation.
However, a positive rating action may result from:

  - Evidence of positive and profitable like-for-like sales growth
and maintaining stable market shares leading to resilient
profitability with EBITDA margins trending towards 5%

  - FFO adjusted gross leverage below 6.0x on a sustained basis

  - FFO fixed charge coverage at or above 2.0x on a sustained
basis

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

  - Evidence of negative like-for-like sales growth, with loss of
market shares, due to a competitive environment or to permanently
lower capex leading to prolonged and accelerating EBITDA margin
erosion and/or neutral FCF

  - FFO adjusted gross leverage above 7.0x on a sustained basis

  - FFO fixed charge coverage below 1.5x on a sustained basis

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

Solid Liquidity: Fitch estimates Iceland's liquidity position to
have been solid at FYE20 due to approximately GBP120 million of
readily available cash, along with an undrawn GBP30 million RCF.
Iceland will repay the outstanding GBP40 million senior bonds
maturity this year using a new GBP20 million short-term facility,
leaving the company with no major financial maturities until FY25.

Iceland funding the repurchase of Brait shares for GBP115 million
payable represents a liquidity drain but still manageable on the
back of the current cash position and positive FCF expected over
the next three years.

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).




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I R E L A N D
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LAURELIN 2016-1: Moody's Confirms B2 Rating on Cl. F-R Notes
------------------------------------------------------------
Moody's Investors Service has confirmed the ratings on the
following notes issued Laurelin 2016-1 Designated Activity Company:


EUR26.5 million Class D-R Senior Secured Deferrable Floating Rate
Notes due 2031, Confirmed at Baa3 (sf); previously on Apr 20, 2020
Baa3 (sf) Placed Under Review for Possible Downgrade

EUR23.5 million Class E-R Senior Secured Deferrable Floating Rate
Notes due 2031, Confirmed at Ba2 (sf); previously on Apr 20, 2020
Ba2 (sf) Placed Under Review for Possible Downgrade

EUR10.5 million Class F-R Senior Secured Deferrable Floating Rate
Notes due 2031, Confirmed at B2 (sf); previously on Apr 20, 2020 B2
(sf) Placed Under Review for Possible Downgrade

Moody's has also affirmed the ratings on the following notes:

EUR2.0 million (current outstanding balance of EUR 500,000) Class X
Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf);
previously on Oct 22, 2018 Definitive Rating Assigned Aaa (sf)

EUR238.8 million Class A-R Senior Secured Floating Rate Notes due
2031, Affirmed Aaa (sf); previously on Oct 22, 2018 Definitive
Rating Assigned Aaa (sf)

EUR21.5 million Class B-1-R Senior Secured Floating Rate Notes due
2031, Affirmed Aa2 (sf); previously on Oct 22, 2018 Definitive
Rating Assigned Aa2 (sf)

EUR20 million Class B-2-R Senior Secured Fixed Rate Notes due 2031,
Affirmed Aa2 (sf); previously on Oct 22, 2018 Definitive Rating
Assigned Aa2 (sf)

EUR26.25 million Class C-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed A2 (sf); previously on Oct 22, 2018
Definitive Rating Assigned A2 (sf)

Laurelin 2016-1 Designated Activity Company, issued in July 21,
2016, is a collateralised loan obligation (CLO) backed by a
portfolio of mostly high-yield senior secured European loans. The
portfolio is managed by GoldenTree Asset Management LP. The
transaction's reinvestment period will end in April 2023.

The actions conclude the rating review on the D-R, E-R and F-R
notes announced on April 20, 2020.

RATINGS RATIONALE

The actions conclude the rating review on the Class D-R, E-R and
F-R notes initiated on April 20, 2020 as a result of the
deterioration of the credit quality and/or the reduction of the par
amount of the portfolio following from the coronavirus outbreak.

Stemming from the coronavirus outbreak, the credit quality has
deteriorated as reflected in the increase in the Weighted Average
Rating Factor (WARF) and the proportion of securities from issuers
with ratings of Caa1 or lower. Securities with default probability
ratings of Caa1 or lower make up approximately 7.0% of the
underlying portfolio. In addition, the over-collateralisation (OC)
levels have weakened across the capital structure. According to the
trustee report dated May 2020 the Class A/B, Class C, and Class D
OC ratios are reported at 137.7% [1], 125.9% [1] and 115.9%[1]
compared to November 2019 levels of 142.4%[2] , 130.2%[2], and
119.8%[2] respectively. Moody's notes none of the OC tests are
currently in breach and the transaction remains in compliance with
the following collateral quality tests: Diversity Score, Weighted
Average Recovery Rate (WARR), Weighted Average Spread (WAS) and
Weighted Average Life (WAL).

Despite the increase in the WARF, Moody's concluded that the
expected losses on all the rated notes remain consistent with their
current ratings following the analysis of CLO's latest portfolio
and taking into account the recent trading activities as well as
the full set of structural features of the transaction such as OC
haircuts and Euribor floors. Consequently, Moody's has confirmed
the ratings on the Class D-R, E-R and F-R notes and affirmed the
ratings on the Class X, Class A-R, B-1-R, B-2-R, and C-R notes.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base case,
Moody's analysed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR 392.3 million,
a weighted average default probability of 29.7% (consistent with a
WARF of 3544 over a weighted average life of 6.1 years), a weighted
average recovery rate upon default of 45.8% for a Aaa liability
target rating, a diversity score of 48 and a weighted average
spread of 3.6%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analysing.

Its analysis has considered the effect of the coronavirus outbreak
on the global economy as well as the effects that the announced
government measures, put in place to contain the virus, will have
on the performance of corporate assets.

The contraction in economic activity in the second quarter will be
severe and the overall recovery in the second half of the year will
be gradual. However, there are significant downside risks to its
forecasts in the event that the pandemic is not contained and
lockdowns have to be reinstated. As a result, the degree of
uncertainty around its forecasts is unusually high. Fitch regards
the coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
March 2019.

Counterparty Exposure:

The rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank, using the
methodology "Moody's Approach to Assessing Counterparty Risks in
Structured Finance" published in June 2020.

Factors that would lead to an upgrade or downgrade of the ratings:

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the note,
in light of uncertainty about credit conditions in the general
economy. In particular, the length and severity of the economic and
credit shock precipitated by the global coronavirus pandemic will
have a significant impact on the performance of the securities. CLO
notes' performance may also be impacted either positively or
negatively by 1) the manager's investment strategy and behavior and
2) divergence in the legal interpretation of CDO documentation by
different transactional parties because of embedded ambiguities.

Additional uncertainty about performance is due to the following:

  -- Weighted average life: The notes' ratings are sensitive to the
weighted average life assumption of the portfolio, which could
lengthen as a result of the manager's decision to reinvest in new
issue loans or other loans with longer maturities, or participate
in amend-to-extend offerings. The effect on the ratings of
extending the portfolio's weighted average life can be positive or
negative depending on the notes' seniority.

  -- Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's
over-collateralisation levels. Further, the timing of recoveries
and the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Recoveries higher
than Moody's expectations would have a positive impact on the
notes' ratings.

  -- Other collateral quality metrics: Because the deal can
reinvest, the manager can erode the collateral quality metrics'
buffers against the covenant levels.

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.


RYE HARBOUR: Fitch Cuts Class F-R Debt to 'B-sf'
------------------------------------------------
Fitch Ratings has taken rating actions on Rye Harbour CLO DAC.

Rye Harbour CLO DAC

  - Class A-1-R XS1596795432; LT AAAsf; Affirmed

  - Class A-2-R XS1596796596; LT AAAsf; Affirmed

  - Class B-1-R XS1596796836; LT AAsf; Affirmed

  - Class B-2-R XS1596797487; LT AAsf; Affirmed

  - Class C-1-R XS1596798295; LT Asf; Affirmed

  - Class C-2-R XS1596798881; LT Asf; Affirmed

  - Class D-R XS1596799699; LT BBBsf; Affirmed

  - Class E-R XS1596800372; LT BB-sf; Downgrade

  - Class F-R XS1596800299; LT B-sf; Rating Watch Maintained

TRANSACTION SUMMARY

Rye Harbour DAC is a securitisation of mainly senior secured
obligations (at least 90%) with a component of senior unsecured,
mezzanine and second-lien loans. The transaction is still within
its reinvestment period and is actively managed by the collateral
manager.

KEY RATING DRIVERS

Portfolio Performance Deteriorates

The downgrade reflects the deterioration in the portfolio due to
the negative rating migration of the underlying assets in light of
the coronavirus pandemic. In addition, as per the trustee report
dated 6 May 2020, the transaction is below par by around 80bp. The
trustee-reported Fitch weighted average rating factor of 36.42 is
in breach of its test, and the Fitch-calculated WARF of the
portfolio increased to 37.58 on 6 June 2020.

The RWN on the class E and F notes and the Negative Outlook on the
class D notes reflect Fitch's view that these tranches may be
exposed to the negative impact of the pandemic as they show some
shortfalls under the coronavirus baseline scenario sensitivity
analysis.

Asset Credit Quality

Fitch assesses the average credit quality of obligors to be in the
'B'/'B-' category. The Fitch WARF of the current portfolio is
37.58.

Asset Security

Senior secured obligations comprise 98.20% of the portfolios. Fitch
views the recovery prospects for these assets as more favourable
than for second-lien, unsecured and mezzanine assets. Fitch's
weighted average recovery rate of the current portfolio is 65.14%.

Portfolio Composition

The portfolio is well diversified across obligors, countries and
industries. The top 10 obligors' exposure is 15.43% and no obligor
represents more than 1.85% of the portfolio balance. The largest
industry is business services at 14.58% of the portfolio balance,
followed by healthcare at 10.98% and chemicals at 9.30%.

Cash Flow Analysis

Fitch used a customised proprietary cash flow model to replicate
the principal and interest waterfalls and the various structural
features of the transaction, as well as to assess their
effectiveness, including the structural protection provided by
excess spread diverted through the par value and interest coverage
tests. The transaction was modelled using the current portfolio
based on both the stable and rising interest rate scenario and the
front, mid- and back-loaded default timing scenario as outlined in
Fitch's criteria. In addition, Fitch tested the portfolio with a
coronavirus sensitivity analysis to estimate the resilience of the
notes' ratings. The analysis for the portfolio with a coronavirus
sensitivity analysis was only based on the stable interest rate
scenario including all default timing scenarios.

When conducting its cash flow analysis, Fitch's model first
projects the portfolio scheduled amortisation proceeds and any
prepayments for each reporting period of the transaction life
assuming no defaults (and no voluntary terminations, when
applicable). In each rating stress scenario, such scheduled
amortisation proceeds and prepayments are then reduced by a scale
factor equivalent to the overall percentage of loans that are not
assumed to default (or to be voluntary terminated, when
applicable). This adjustment avoids running out of performing
collateral due to amortisation and ensures all of the defaults
projected to occur in each rating stress are realised in a manner
consistent with Fitch's published default timing curve.

Coronavirus Baseline Scenario Impact: Fitch carried out a
sensitivity analysis on the target portfolio to envisage the
coronavirus baseline scenario. It notched down the ratings for all
assets with corporate issuers on Negative Outlook regardless of
sector. This scenario shows the resilience of the current ratings
with cushions, except for the class D, E and F notes, which show
sizeable shortfalls.

In addition to the base scenario, Fitch has defined a downside
scenario for the current coronavirus crisis, whereby all ratings in
the 'B' category would be downgraded by one notch and recoveries
would be lowered by 15%. For typical European CLOs this scenario
results in a rating category change for all ratings.

RATING SENSITIVITIES

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

The transactions feature a reinvestment period and the portfolio is
actively managed. At closing, Fitch uses a standardised stress
portfolio (Fitch's Stressed Portfolio) that is customised to the
specific portfolio limits for the transaction as specified in the
transaction documents. Even if the actual portfolio shows lower
defaults and losses (at all rating levels) than Fitch's Stressed
Portfolio assumed at closing, an upgrade of the notes during the
reinvestment period is unlikely, given the portfolio credit quality
may still deteriorate, not only by natural credit migration, but
also by reinvestments. After the end of the reinvestment period,
upgrades may occur in case of a better than initially expected
portfolio credit quality and deal performance, leading to higher
credit enhancement for the notes and excess spread available to
cover for losses on the remaining portfolio.

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

Downgrades may occur if the build-up of credit enhancement for the
notes following amortisation does not compensate for a higher loss
expectation than initially assumed due to an unexpectedly high
level of default and portfolio deterioration. As the disruptions to
supply and demand due to the coronavirus for other sectors become
apparent, loan ratings in such sectors would also come under
pressure. Fitch will resolve the RWN over the coming months when it
observes rating actions on the underlying loans.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven 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 seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognised statistical rating organisations and/or European
Securities and Markets Authority-registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information.

Overall, Fitch's assessment of the asset pool information relied
upon for its rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.

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.




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

BANCA FARMAFACTORING: Moody's Alters Outlook to Developing
----------------------------------------------------------
Moody's Investors Service changed the outlook on the Ba1 long-term
issuer rating of Banca Farmafactoring S.p.A. to developing from
positive and affirmed all the bank's ratings and assessments. The
outlook on BFF's Baa3 long-term deposit rating remains positive.

The rating actions follow BFF's announcement of May 13, 2020 that
it reached an agreement for the acquisition of Italian depositary
bank DepoBank, which the bank expects to finalise by the end of
2020, subject to regulatory approvals.

RATINGS RATIONALE

The affirmation of the ba3 Baseline Credit Assessment is driven by
the agency's view that, based on the information available to date
regarding the acquisition of DepoBank, the combined entity will
likely display credit fundamentals consistent with BFF's BCA,
despite DepoBank having a materially different business model.
BFF's venture into depositary banking, in which it has no real
experience, marks a material departure from the bank's core
business focused on factoring receivables from public
administration bodies. DepoBank is also a larger entity than BFF
with total assets of over EUR9 billion at end-2019 against around
EUR5.5 billion for BFF, although DepoBank's assets are mostly
composed of Italian government bonds. While Moody's understands the
transaction will lead to higher regulatory capitalisation, other
capital metrics notably nominal leverage and the agency's Tangible
Common Equity (TCE)/ Risk-Weighted-Assets ratio will decline
markedly. In Moody's preferred TCE metric, Italian government bonds
are weighted at 50% given their Baa3 rating. Similarly, return on
assets would decline, albeit benefiting from greater
diversification. On the other hand, Moody's sees some benefits to
BFF's funding and liquidity profile as the bank will gain access to
an ample deposit base and a large stock of liquid assets, even
though the deposits are essentially wholesale in nature, deriving
from DepoBank's core businesses of depositary bank and payment
services, and hence likely to be more credit-sensitive than retail
deposits.

The affirmations of the ratings and Counterparty Risk Assessment
are driven by the likelihood that the transaction will not be
completed until late 2020 or early 2021 and in the meantime, the
agency's Loss Given Failure analysis remains unchanged.

OUTLOOKS

However, the developing outlook on BFF's long-term issuer rating
reflects Moody's view that there could be positive or negative
pressure on the rating depending on the successful execution of the
acquisition of DepoBank.

If the acquisition is finalised, Moody's sees a downgrade of BFF's
issuer rating as likely because the amount of senior debt relative
to total banking assets would materially reduce, leading to higher
loss-given-failure for these creditors, who are subordinated to
depositors in Italy. This is because DepoBank would bring
substantial assets to BFF but is almost entirely deposit funded,
with little senior debt. BFF's Ba1 issuer rating currently benefits
from two notches of uplift from the bank's ba3 BCA, but with the
acquisition of DepoBank, the loss-given-failure for this debt class
would likely increase, reducing the uplift from the BCA.

If the acquisition is not finalised, BFF's issuer rating could
benefit from pre-existing positive trends in the bank's standalone
BCA, should BFF sustain its fundamentals at the current levels,
including maintaining strong asset quality and good capitalisation.
This also drives the unchanged positive outlook on the deposit
ratings. Moody's considers BFF to be less exposed than other
commercial Italian banks to the downside risks from the coronavirus
pandemic due to its business model, which focuses primarily on
public administration receivables, with limited exposures to
corporate and small and medium-sized enterprises.

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

BFF's long-term deposit and issuer ratings could be upgraded
following an upgrade of the bank's BCA .

BFF's BCA could be upgraded following sustained evidence of sound
profit generation while maintaining sound asset risk and capital
ratios at or above the current levels. The BCA would also benefit
from a funding profile that is less reliant on wholesale funding
and stronger liquidity. The issuer rating could also be upgraded
following a material issuance of bail-in-able debt.

BFF's issuer rating could be downgraded by up to two notches if the
acquisition of DepoBank is finalised and results in a material
diminution of senior debt loss-absorbing capacity relative to its
expanded balance sheet. A downgrade of BFF's BCA could also lead to
a downgrade of the senior unsecured and deposit ratings, which is
unlikely given the positive outlook upon the latter.

LIST OF AFFECTED RATINGS

Issuer: Banca Farmafactoring S.p.A.

Affirmations:

Long-term Counterparty Risk Ratings, affirmed Baa3

Short-term Counterparty Risk Ratings, affirmed P-3

Long-term Bank Deposits, affirmed Baa3, outlook remains Positive

Short-term Bank Deposits, affirmed P-3

Long-term Counterparty Risk Assessment, affirmed Baa3(cr)

Short-term Counterparty Risk Assessment, affirmed P-3(cr)

Long-term Issuer Rating, affirmed Ba1, outlook changed to
Developing from Positive

Baseline Credit Assessment, affirmed ba3

Adjusted Baseline Credit Assessment, affirmed ba3

Senior Unsecured Regular Bond/Debenture, affirmed Ba1, outlook
changed to Developing from Positive

Outlook Action:

Outlook changed to Positive(m) from Positive

PRINCIPAL METHODOLOGY

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




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

KRASNOYARSK REGION: Fitch Alters Outlook on BB+ LT IDRs to Negative
-------------------------------------------------------------------
Fitch Ratings has revised the Outlook on Krasnoyarsk Region's
Long-Term Foreign- and Local-Currency Issuer Default Ratings to
Negative from Stable and affirmed the IDRs at 'BB+'.

The revision of the Outlook reflects Fitch's downward assessment of
the region's debt sustainability due to the negative economic
impact triggered by the coronavirus pandemic and the expectation of
additional stress on the region's financials caused by the
technological accident at the power plant of PJSC MMC Norilsk
Nickel (BBB-/Stable), one of the region's major taxpayers.

While Russian local and regional governments' most recently
available data may not have indicated performance impairment,
material changes in revenue and cost profiles are occurring across
the sector and likely to worsen in the coming months as economic
activity suffers and government restrictions are maintained.
Fitch's ratings are forward-looking in nature, and Fitch will
monitor developments in the sector for their severity and duration,
and incorporate revised base- and rating-case qualitative and
quantitative inputs based on performance expectations and
assessment of key risks.

CRA3 DEVIATION

Under EU credit rating agency regulation, the publication of local
and regional governments' reviews is subject to restrictions and
must take place according to a published schedule, except where it
is necessary for CRAs to deviate from this in order to comply with
their legal obligations. Fitch interprets this provision as
allowing us to publish a rating review in situations where there is
a material change in the creditworthiness of the issuer that Fitch
believes makes it inappropriate for us to wait until the next
scheduled review date to update the rating or Outlook/Watch status.
The next scheduled review date for Fitch's rating on Krasnoyarsk
Region is 09 October 2020, but Fitch believes that developments in
the country warrant such a deviation from the calendar and its
rationale for this.

KEY RATING DRIVERS

The rating action reflects the following key rating drivers and
their relative weights:

HIGH

Debt Sustainability Assessment: 'a'

Fitch expects that the negative effect of the coronavirus pandemic
on the region's revenue, particularly on corporate income tax,
could be heightened by the technological accident at the power
plant in Norilsk. CIT is an important revenue source for the
region, accounting for 47% of tax revenue in 2019 and it is the
most volatile tax revenue item during a downturn. Norilsk Nickel,
which owns the power plant that experienced the accident, is among
the region's largest taxpayers. In Fitch's view, the company's
profit could decline as a result of the accident, which could lead
to a lower tax base, and ultimately lower tax proceeds for the
region. Under its new rating case scenario, Fitch expects CIT in
2020 to drop by 35% compared with 2019, which leads to a downward
assessment of the region's debt sustainability metrics.

Fitch now expects that the region's payback - the primary metric
for debt sustainability assessment for Type B LRGs - will approach
9x in 2024 compared with its previous expectation of about 7x.
Secondary metrics will also deteriorate. The fiscal debt burden
will approach 60% in 2024 compared with its previous expectation of
50% and the actual debt service coverage ratio will remain weak at
0.4x in the final year of the rating case.

LOW

Risk Profile: 'Low Midrange'

Fitch has assessed Krasnoyarsk's risk profile at 'Low Midrange'.
This reflects a 'Midrange' assessment for key risk factors of
revenue robustness, expenditure sustainability, liabilities and
liquidity robustness and flexibility. Revenue and expenditure
adjustability are assessed as 'Weaker'.

Krasnoyarsk is the second-largest Russian region, accounting for
13.8% of the country's territory and located in Siberia.
Krasnoyarsk region is rich in industrially extractable deposits of
nickel, gold, platinum, copper, iron ore and coal, and substantial
reserves of oil and gas. About 45% of the region's land is covered
by forests, while the Yenisey and other rivers provide
opportunities for transport and power generation, and low
generating cost of regional hydroelectric power supports
non-ferrous and particularly the aluminum industry.

DERIVATION SUMMARY

Krasnoyarsk's SCP is assessed at 'bb+', reflecting a combination of
a 'Low Midrange' risk profile and debt sustainability metrics
assessed in the 'a' category under Fitch's rating case scenario.
The SCP, positioned at 'bb+', also reflects the peer comparison.
There are no other factors affecting the ratings, which leads to
Krasnoyarsk's 'BB+' IDRs, in line with its SCP. If the
deterioration of debt sustainability metrics is sustained, it could
lead to a downward reassessment of the SCP.

KEY ASSUMPTIONS

Qualitative assumptions and assessments and their respective change
since the last review April 10, 2020 and weight in the rating
decision:

Risk Profile: Low Midrange, unchanged with Low weight

Revenue Robustness: Midrange, unchanged with Low weight

Revenue Adjustability: Weaker, unchanged with Low weight

Expenditure Sustainability: Midrange, unchanged with Low weight

Expenditure Adjustability: Weaker, unchanged with Low weight

Liabilities and Liquidity Robustness: Midrange, unchanged with Low
weight

Liabilities and Liquidity Flexibility: Midrange, unchanged with Low
weight

Debt sustainability: 'a' category, weakening with High weight

Support: n/a

Asymmetric Risk: n/a

Sovereign Cap or Floor: n/a

Quantitative assumptions - issuer specific

Fitch's rating case scenario is a "through-the-cycle" scenario,
which incorporates a combination of revenue, cost and financial
risk stresses. It is based on the 2015-2019 figures and 2020-2024
projected ratios. The key assumptions for the scenario include:

  - yoy 1.0% increase in operating revenue on average in 2020-2024,
including 0.7% increase in tax revenue;

  - yoy 5.2% increase in operating spending on average in
2020-2024;

  - net capital balance of negative RUB29 billion on average in
2020-2024;

  - 8.5% cost of debt and 3.5 year weighted average maturity for
new debt.

Quantitative assumptions - sovereign related (note that no weights
are included as none of these assumptions was material to the
rating action)

Figures as per Fitch's sovereign actual for 2019 and forecast for
2020 and 2021, respectively:

  - GDP per capita (US dollar, market exchange rate): 11,497,
10,456, 11,127

  - Real GDP growth (%): 1.3, -5.0, 3.0

  - Consumer prices (annual average % change): 4.5, 3.2, 4.0

  - General government balance (% of GDP): 1.9, -5.5, -3.3

  - General government debt (% of GDP): 14.7, 18.7, 20.3

  - Current account balance plus net FDI (% of GDP): 4.4, 1.1, 1.0

  - Net external debt (% of GDP): -36.8, -38.6, -35.5

  - IMF Development Classification: EM

  -  CDS Market Implied Rating: n/a

RATING SENSITIVITIES

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

A deterioration of the region's debt payback towards 9x on a
sustained basis coupled with weak ADSCR at about 1.0x according to
Fitch's rating case could lead to a downgrade.

A prolonged COVID-19 impact and much slower economic recovery
lasting until 2025 would put pressure on net revenues. Should
Krasnoyarsk be unable to proactively reduce expenditure or
supplement weaker receipts from increased central government
transfers, this could lead to a downgrade.

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

The Outlook would be revised back to Stable if the region
demonstrates better than expected resilience to stress and managed
to keep payback sustainably below 7x during the rating case.

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.

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

Krasnoyarsk Region: Biodiversity and Natural Resource Management:
4; Water Resources and Management: 4 Fitch has reassessed the ESG
relative score for the factor 'Biodiversity and Natural Resource
Management' to '4' from '3' after the large-scale technological
accident in the region's city of Norilsk, which resulted in a
massive diesel fuel spill, to reflect the potential negative impact
on the region's economy and ultimately on the region's budget
revenue, which could harm the creditworthiness of the region. Fitch
has also reassessed the ESG relative score for the factor 'Water
Resources and Management' to '4' from '3' after the large-scale
technological accident in the region's city of Norilsk, which
resulted in a massive diesel fuel spill, to reflect potential
negative impact on the region's economy and ultimately on the
region's budget expenditure that could harm the creditworthiness of
the region. Except for the matters discussed above, the highest
level of ESG credit relevance, if present, is a score of 3 - ESG
issues are credit neutral or have only a minimal credit impact on
the entity(ies), either due to their nature or the way in which
they are being managed by the entity(ies). There was an appropriate
quorum at the committee and the members confirmed that they were
free from recusal. It was agreed that the data was sufficiently
robust relative to its materiality. During the committee no
material issues were raised that were not in the original committee
package. The main rating factors under the relevant criteria were
discussed by the committee members. The rating decision as
discussed in this rating action commentary reflects the committee
discussion.

Krasnoyarsk Region

  - LT IDR BB+; Affirmed

  - ST IDR B; Affirmed

  - LC LT IDR BB+; Affirmed

  - Senior unsecured; LT BB+; Affirmed


NIZHNIY NOVGOROD: Fitch Affirms BB LongTerm IDRs, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed the Russian Nizhniy Novgorod Region's
Long-Term Foreign- and Local-Currency Issuer Default Ratings at
'BB' with a Stable Outlook.

The affirmation reflects Fitch's expectations that the region will
be resilient to downside shocks and sustain debt sustainability
ratios that are in line with its current ratings. Nizhniy
Novgorod's Standalone Credit Profile remains unchanged at 'bb'.

The outbreak of coronavirus and related government containment
measures worldwide create an uncertain global environment for local
and regional governments. While LRGs' most recently available
performance data may not have indicated impairment, material
changes in revenue and cost profile are occurring across the sector
and will continue to evolve as economic activity and government
restrictions respond to the coronavirus pandemic. Fitch's ratings
are forward-looking in nature, and Fitch will monitor developments
in the sector for the pandemic's severity and duration, and
incorporate revised base- and rating-case qualitative and
quantitative inputs based on expectations for future performance
and assessment of key risks.

KEY RATING DRIVERS

Risk Profile: 'Low Midrange'

Fitch has re-assessed Nizhniy Novgorod Region's risk profile to
'Low Midrange' from 'Weaker', following the revision of the
region's revenue robustness attribute to 'Midrange' from 'Weaker'.
Four of the region's key risk factors are currently assessed
'Midrange' (revenue robustness, expenditure sustainability,
liabilities and liquidity robustness and flexibility) and two
others are assessed 'Weaker' (revenue adjustability and expenditure
adjustability).

Revenue Robustness: 'Midrange'

The revision is based on its re-calibration across the LRG
portfolio and due to the 'Midrange' economic profile of the region
(2018 GRP per capita at 102% of the Russian regions' median). The
region's economy is fairly well-diversified across sectors and
companies, which supports robust tax revenue-generating capacity.
The region's GRP CAGR for 2013-2018 was on a par with the Russian
average, which together with the region's low historical volatility
of revenue proceeds, underpinned the re-assessment for revenue
robustness.

Revenue Adjustability: 'Weaker'

The assessment reflects its unchanged view that Nizhniy Novgorod's
ability to generate additional revenue in response to possible
economic downturns is limited. The federal government holds
significant tax-setting authority, which limits the region's fiscal
autonomy and revenue adjustability. Similar to other Russian
regional governments Nizhniy Novgorod has limited rate-setting
power over three regional taxes: the corporate property tax,
gambling tax and transport tax. The proportion of these taxes in
the region's tax revenues is low (2019: 18%). In addition, the
maximum rates on those taxes are determined in the National Tax
Code, which further constrains the region's capacity to adjust
revenue.

Expenditure Sustainability: 'Midrange'

The region's control over expenditure is prudent, with spending
growth below revenue growth in 2015-2019. Nizhniy Novgorod, in line
with the national regulatory framework, is vested with
responsibilities in education, healthcare, certain social benefits,
public transportation and road construction. Education and
healthcare, which are counter-cyclical, accounted for 46% of 2019
spending. Nizhniy Novgorod, in line with it national peers, is not
required to adopt counter-cyclical measures, which would inflate
social benefit spending in downturns. Nonetheless, as the region's
budgetary policy is dependent on federal government decisions, the
latter could negatively affect expenditure dynamic in the medium
term.

Expenditure Adjustability: 'Weaker'

In line with most of Russian regions', Fitch assesses Nizhniy
Novgorod's expenditure adjustability as low. This is due to the
rigid structure of the region's expenditure with the majority of
spending responsibilities being mandatory. This makes cutting back
on spending difficult in response to revenue shocks. Additionally,
the region retains limited flexibility to cut or postpone capital
outlays in case of stress given low per capita investment (capex
averaged 13% of total spending in 2015-2019), compared with
international peers.

Liabilities and Liquidity Robustness: 'Midrange'

According to Russia's budgetary regulation subnational governments
are subject to debt stock and new borrowing restrictions as well as
limits on annual interest payments. Derivatives are prohibited and
floating rates are rare for LRGs in Russia. Restrictions on
external debt are strict and in practice no Russian region borrows
externally. Nizhniy Novgorod follows a prudent debt policy as
evident in its moderate debt levels and a fiscal debt burden (net
adjusted debt/operating revenue) averaging 50% in 2015-2019.

Liabilities and Liquidity Flexibility: 'Midrange'

Nizhniy Novgorod maintains a satisfactory liquidity position, with
accumulated cash of RUB12 billion at end-2019 (end-2018: RUB11.7
billion). In addition, its liquidity is supported by intra-year
treasury loans, provided by the federal government to cover
occasional cash gaps in the region's budget, as well as committed
credit lines with state-owned banks. Counterparty risk associated
with the liquidity providers is assessed at 'BBB', resulting in the
'Midrange' risk factor.

The region's 2019 debt stock was broadly stable in volume and
structure, comprising domestic bonds (61% of the total debt stock),
bank loans (14%) and low-cost federal loans (25%). The region's
contingent liabilities are limited to modest issued guarantees and
debt of the public sector, with immaterial exposure to off-balance
sheet risks.

Debt sustainability: 'a' category

Fitch has re-assessed the region's debt sustainability to 'a'
category from 'aa', due to negative effects from the coronavirus
pandemic on the region's revenue, particularly on corporate income
tax (CIT). The latter is an important revenue source for the
region, representing on average 26% of its total revenue in
2015-2019.

Under Fitch's rating case, which envisages some stress on both
revenue and expenditure to capture downside shocks triggered by the
pandemic, the debt payback ratio (primary metric for debt
sustainability assessment) will now deteriorate to about 8x in
2024. However, it should remain below 9x in its five-year forecast
period, which corresponds to an 'a' assessment.

For the secondary metrics, Fitch's rating case projects that the
fiscal debt burden will remain close to 50%, corresponding to a
'aa' assessment. This is counterbalanced by a weak actual debt
service coverage ratio (ADSCR: operating balance-to-debt service,
including short-term debt maturities), which Fitch now expects to
deteriorate to below 1x, corresponding to a 'b' assessment. All
these lead to an overall debt sustainability assessment of 'a'.

Nizhniy Novgorod is located in the central part of European Russia,
and is part of the Privolzhskiy Federal District. As with other
Russian LRGs Fitch classifies Nizhniy Novgorod as a Type B LRG, as
it covers debt service from cash flow on an annual basis.

DERIVATION SUMMARY

Nizhniy Novgorod's 'bb' SCP reflects a 'Low Midrange' risk profile
and 'a' debt sustainability under Fitch's rating case. The SCP also
reflects peer comparison. As the region is not subject to
extraordinary support and has no asymmetric risk, the final IDRs
are in line with the SCP at 'BB'.

KEY ASSUMPTIONS

Qualitative assumptions and assessments:

Risk Profile: Low Midrange

Revenue Robustness: Midrange

Revenue Adjustability: Weaker

Expenditure Sustainability: Midrange

Expenditure Adjustability: Weaker

Liabilities and Liquidity Robustness: Midrange

Liabilities and Liquidity Flexibility: Midrange

Debt sustainability: 'a' category

Support: N/A

Asymmetric Risk: N/A

Rating Cap: N/A

Quantitative assumptions - issuer-specific

Fitch's rating case is a "through-the-cycle" scenario, which
incorporates a combination of revenue, cost and financial risk
stresses. It is based on 2015-2019 figures and 2020-2024 projected
ratios. The key assumptions for the scenario include:

  - 4.5% yoy increase in operating revenue on average in
2020-2024;

  - 5.5% yoy increase in operating spending on average in
2020-2024;

  - Net capital balance of -RUB15.6 billion on average in
2020-2024; and

  - 8.9% cost of new debt and three-year weighted average maturity
for new debt.

RATING SENSITIVITIES

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

  - An improved ADSCR to above 1x on a sustained basis along with
maintenance of a debt payback of 5x-9x under Fitch's rating case.

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

  - Prolonged COVID-19 impact and much slower economic recovery
lasting until 2025 would put pressure on net revenues. Should the
region be unable to proactively reduce expenditure or supplement
weaker receipts from increased central government transfers, this
may lead to a downgrade.

  - Deterioration of the region's debt payback to above 9x on a
sustained basis coupled with weak ADSCR below 1x under Fitch's
rating case.

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.

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).


ORENBURG REGION: Fitch Affirms BB+ LongTerm IDRs, Outlook Stable
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Fitch Ratings has affirmed the Russian Orenburg Region's Long-Term
Foreign- and Local-Currency Issuer Default Ratings at 'BB+' with
Stable Outlook.

The affirmation reflects Fitch's expectations that the region's
resilience to economic shocks triggered by the coronavirus pandemic
will be supported by sufficiently strong debt sustainability.
Orenburg's Standalone Credit Profile remains at 'bb+'.

The outbreak of coronavirus and related government containment
measures worldwide create an uncertain global environment for the
sector. While Orenburg's performance data through most recently
available issuer data may not have indicated impairment, material
changes in revenue and cost profile are occurring across the sector
and will continue to evolve as economic activity and government
restrictions respond to the ongoing situation. Fitch's ratings are
forward-looking in nature, and Fitch will monitor developments in
the sector as a result of the coronavirus outbreak for their
severity and duration, and incorporate revised base and rating case
qualitative and quantitative inputs based on expectations for
future performance and assessment of key risks.

KEY RATING DRIVERS

Risk Profile: 'Low Midrange'

Fitch has reassessed Orenburg's risk profile to 'Low Midrange' from
'Weaker', following the revision of the region's revenue robustness
attribute to 'Midrange' from 'Weaker'. Orenburg's 'Low Midrange'
risk profile currently reflects four 'Midrange' key risk factors
(revenue robustness, expenditure sustainability, liabilities and
liquidity robustness and flexibility) and two 'Weaker' key risk
factors (revenue adjustability and expenditure adjustability).

Revenue Robustness: reassessed to 'Midrange' from 'Weaker'

The reassessment is based on the region's stronger than Russian
median economic profile as Orenburg's GRP per capita remains
sustainably above the national median. The concentration of the
local economy on the oil and gas sector exposes the region's
revenue to some volatility, which is factored into the score of '4'
for 'Biodiversity and Natural Resources Management' ESG factor.

The region's economy contributes to its satisfactory fiscal
capacity with taxes accounting for more than 70% of total revenue
on a sustained basis. In line with the majority of Russian regions,
Orenburg's tax base is dominated by personal and corporate income
taxes, which are subject to economic fluctuations. The proportion
of CIT averaged 34% of total revenue in 2015-2019. The transfers
from the federal budget ('BBB' counterparty) accounted for 26% of
total revenue in 2019. The share of general-purpose grants aimed at
regions' fiscal equalisation was low at 4.6% due to Orenburg's
higher than average fiscal capacity.

Revenue Adjustability: 'Weaker'

Fitch assesses the region's ability to generate additional revenue
in response to possible economic downturns as limited. The federal
government holds significant tax-setting authority, which limits
Russian local and regional governments' fiscal autonomy. Orenburg
has limited National Tax Code rate-setting power over three
regional taxes - corporate property tax, transport tax and gambling
tax - as well as some fees. The proportion of this revenue amounted
to a low 14% of Orenburg's revenue in 2019.

Expenditure Sustainability: 'Midrange'

Like its domestic peers, Orenburg has responsibilities in
education; healthcare; some types of social benefits; public
transportation and road construction. Education and healthcare,
which are of counter-cyclical nature, accounted for 31% of regional
expenditure in 2019. Orenburg is not required to adopt
anti-cyclical measures, which would inflate expenditure related to
social benefits in a downturn. At the same time, the budgetary
policy of Russian regions is dependent on the decisions of the
federal authorities, which could negatively affect the expenditure
dynamic.

Expenditure Adjustability: 'Weaker'

Most spending responsibilities are mandatory for Russian LRGs,
which leads to a dominance of inflexible expenditure items and
leaves little scope for cutbacks in response to potential revenue
shrinking. In case of stress, Orenburg has some flexibility to cut
or postpone capex, which averaged 16% of total in 2016-2019.
However, the ability to curb expenditure is constrained by overall
high demand for infrastructure development.

Liabilities and Liquidity Robustness: 'Midrange'

The assessment is supported by a national budgetary framework with
strict rules on regional debt management. Russian LRGs are subject
to debt stock limits and new borrowing restrictions as well as
limits on annual interest payments. The use of derivatives is
prohibited for LRGs in Russia while limitations on external debt
are very strict and in practice no Russian region borrows
externally.

Liabilities and Liquidity Flexibility: 'Midrange'

The region's liquidity is supported by federal treasury loans
covering intra-year cash gaps. Fitch assesses Orenburg's access to
domestic capital market as reasonable, allowing the region to
borrow in case of need, as evidenced by its track record of
domestic bond issues. As the counterparty risk associated with
domestic liquidity providers is rated 'BBB', Fitch assesses this
risk factor as 'Midrange'.

Debt Sustainability: reassessed to 'a' from 'aa' category

Fitch expects a negative effect from the coronavirus pandemic on
Orenburg's tax proceeds, particularly on CIT, which is the largest
revenue source for the region. This led to a reassessment of its
debt sustainability to 'a' category from 'aa'.

According to Fitch's rating case, which envisages stress on both
revenue and expenditure to capture downside shocks triggered by the
pandemic, the debt payback ratio - the primary metric for debt
sustainability assessment - will still remain sufficiently strong,
hovering around 5.0x during most years of the rating case and
deteriorating to 7.4x in 2024. The fiscal debt burden will
gradually deteriorate, but remain moderate at below 50% by 2024.
Both metrics correspond to a strong 'aa' assessment of debt
sustainability. This is counterbalanced by a weak ADSCR (operating
balance-to-debt service, including short-term debt maturities),
which Fitch now expects to deteriorate to below 1x in 2023-2024,
corresponding to a 'b' assessment. This leads us to the overall
assessment of debt sustainability assessment at 'a'.

Orenburg region lies in the southeast of European Russia, bordering
Kazakhstan (BBB/Stable) to the south. Orenburg's economic profile
is supported by the extraction of oil and gas, and its GRP per
capita is 22% above the national median. According to budgetary
regulation, Orenburg can borrow on the domestic market. The budget
accounts are presented on a cash basis while budget law is approved
for a three-year period.

DERIVATION SUMMARY

Fitch assesses Orenburg's SCP at 'bb+', which reflects a
combination of a 'Low Midrange' Risk Profile and a 'a' assessment
of debt sustainability. The notch-specific SCP also factors in peer
comparison. The IDRs are not affected by any asymmetric risk or
extraordinary support from the federal government, which results in
the region's 'BB+' IDRs.

KEY ASSUMPTIONS

Qualitative Assumptions and assessments:

Risk Profile: 'Low Midrange'

Revenue Robustness: 'Midrange'

Revenue Adjustability: 'Weaker'

Expenditure Sustainability: 'Midrange'

Expenditure Adjustability: 'Weaker'

Liabilities and Liquidity Robustness: 'Midrange'

Liabilities and Liquidity Flexibility: 'Midrange'

Debt sustainability: 'a' category

Support: n/a

Asymmetric Risk: n/a

Sovereign Cap or Floor: n/a

Quantitative assumptions - issuer specific

Fitch's rating case scenario is a "through-the-cycle" scenario,
which incorporates a combination of revenue, cost and financial
risk stresses. It is based on the 2015-2019 figures and 2020-2024
projected ratios. The key assumptions for the scenario include:

  -  yoy 5.0% increase in operating revenue on average in
2020-2024, including tax revenue increase of 3.9% in 2020-2024;

  - yoy 5.6% increase in operating spending on average in
2020-2024;

  - net capital balance of a negative RUB12.5billion on average in
2020-2024;

  - 8.9% cost of debt and five-year weighted average maturity for
new debt.

RATING SENSITIVITIES

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

Improvement of the region's debt payback to below 5.0x or
strengthening of the ADSCR to above 1.2x on a sustained basis.

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

  - Debt payback deteriorating to above 7.5x on a sustained basis
accompanied by weak ADSCR at below 1x under Fitch's rating case.

  - Prolonged COVID-19 impact and much slower economic recovery
lasting until 2025 would put pressure on net revenues. Should
Orenburg be unable to proactively reduce expenditure or supplement
weaker receipts from increased central government transfers, this
may lead to a downgrade.

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.

LIQUIDITY AND DEBT STRUCTURE

Orenburg follows prudent debt policy and is focused on keeping a
moderate debt level (2019: 24% of current revenue). Debt is almost
equally split between domestic bonds (44% of the total) and
intergovernmental loans from federal government (56%). Both types
of debt have amortising structures contributing to a smooth
repayment profile, which stretches until 2034. For 2020 the
region's refinancing needs amounted to RUB0.8 billion,
corresponding to 6% of the total debt, which is covered several
times by Orenburg's accumulated liquidity. The region's contingent
obligations have historically been low. The debt of regional public
companies decreased to RUB0.7 billion compared with an average
RUB1.5 billion in 2015-2018 and is self-serviced by the companies.
As of beginning-2019 the regions was free from guarantees.

The region's accumulated liquidity amounted to RUB6.9 billion at
the beginning of 2020. Fitch expects most of the accumulated cash
will be gradually depleted in 2020-2021 to finance the expected
deficit. The region's liquidity flexibility is also supported by
liquidity instruments in the form of a federal treasury line to
cover intra-year cash gaps. This treasury facility amounted to
1/12th of annual budgeted revenue (excluding intergovernmental
transfers) and can be rolled over during the financial year. For
Orenburg the limit on treasury lines is set at around RUB7 billion
for 2020. As of mid-2020, Orenburg also had RUB6billion of
unutilized revolving credit lines with commercial banks, on which
it can rely in case of stress.

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

Orenburg Region: Biodiversity and Natural Resource Management: 4

Except for the matters discussed, the highest level of ESG credit
relevance, if present, is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.


TATFONDBANK PJSC: Executives Suspected of US$600MM Embezzlement
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Russian Legal Information Agency reports that a criminal case has
been opened against executives of the bankrupt Tatfondbank on
suspicion of embezzling more than RUB41 billion (about US$600
million) belonging to the credit organization, the press service of
the Russian Investigative Committee said.

Moreover, top managers are suspected of falsification of financial
documents, premediated bankruptcy and abuse of power, the report
says.

The case has been launched upon an application of the Deposit
Insurance Agency (DIA) on the results of its 3-year work as
insolvency practitioner, the statement reads, according to RAPSI.

RAPSI relates that investigators from the Republic of Tatarstan
said that in 2015-2016, management of Tatfondbank committed certain
actions resulted in the worsening of the bank's financial standing.
Thus, the bank's assets were formed with technical loan
indebtedness; market assets were replaced with technical
indebtedness; technical emitters' shares were purchased. As a
result, the bank was inflicted damage estimated at more than
RUB41.2 billion.

In 2017, Tatfondbank's licence was revoked and the organization was
declared bankrupt.

Currently, ex-board chair of the bank Robert Musin is on trial on
charges of abuse of office resulted in the infliction of damage
worth over RUB53 billion (about US$750 million), the report notes.




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S P A I N
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PAX MIDCO: Moody's Cuts CFR to B3, Under Review for Downgrade
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Moody's Investors Service downgraded the ratings of Pax Midco
Spain, a leading concession catering company, including the
corporate family rating to B3 from B1 and the probability of
default rating to B3--PD from B1-PD. The ratings on the senior
secured credit facilities at Financiere Pax S.A.S. have also been
downgraded to B3 from B1. The ratings remain under review for
further downgrade.

"Today's rating action reflects the risk that Areas' liquidity
profile could materially weaken in the coming quarters if it fails
to secure additional liquidity sources in the coming months
including state-guaranteed loans", says Eric Kang, a Moody's Vice
President - Senior Analyst and lead analyst for Areas. "We also
expect the coronavirus outbreak will have a protracted impact on
the company's revenue and profitability through at least 2022 given
the large presence of the company's food and beverage outlets at
airports and its expectation that air passenger demand will remain
severely depressed in 2020 and 2021, and will not see a substantial
recovery before 2023", adds Mr Kang.

RATINGS RATIONALE

The review process will focus on (1) the company's liquidity
profile in light of expected negative free cash flow over the
coming quarters, as well as access to new sources of funding; (2)
the recovery in air passenger, railway, and motorway traffic in the
coming months as travel restrictions are gradually lifted; and (3)
the trajectory of Areas' sales and profitability through 2021 given
Moody's expectations of deteriorating global economic conditions,
which are likely to weigh on the travel industry.

Moody's forecasts negative free cash flow of c.EUR170 million in
the second half of the fiscal year ended September 2020 ("fiscal
2020"). This cash flow forecast is based on a reduction in revenue
of c.60% year-on-year, partly offset by governmental measures such
as partial unemployment benefits and other initiatives promptly
undertaken by the company to reduce its cost base. For example, the
company renegotiated the fixed fees embedded in most of its
concession contracts, also known as annual minimum guarantees. The
negative free cash flow forecasts also include working capital
outflow of c.EUR55 million related to deferred supplier payments.

As a result, Moody's expects cash on balance sheet to be around
EUR105 million as of fiscal year-end September 2020, with the
revolving credit facility and capex and acquisition facility both
fully drawn. As of May 28, 2020, the company had cash balances of
c.EUR225 million including the fully drawn RCF and CAF. This
includes EUR24 million of proceeds from Spanish state-guaranteed
loans. Moody's understands the company also has access to
short-term overdraft facilities of c.EUR27 million. As is typical
for restaurant companies, the company's cash balances also include
working cash -- petty cash at each point of sale and cash in
transit -- that Moody's estimates at around 1.5%-2.0% of revenue.

The company must also comply with the springing senior secured net
leverage covenant set at 10.7x, which will be tested every quarter
from September 2020 given that the RCF is drawn by more than 40%.
Moody's assumes that the company will be able to obtain a waiver,
or a covenant reset in the event of a covenant breach. There is
also no debt maturing before 2026, except the Spanish
state-guaranteed loans, which comprises several bilateral
facilities amortizing on a monthly basis over 24 months from either
April or May 2021.

Moody's estimates that Moody's-adjusted debt/EBITDA will
temporarily increase to c.10.5x in fiscal 2020 from around 4.6x in
fiscal 2019. In fiscal 2021, the rating agency expects revenue
growth of c.30% compared with 2020 and c.85% of 2019 revenues to
result in Moody's-adjusted debt/EBITDA of c.6.5x and for free cash
flow to be around breakeven. This reflects Moody's expectation that
air passenger demand will remain severely depressed in 2021, with
passenger volumes only recovering to 35%-55% of 2019 levels.
Furthermore, a substantial recovery before 2023 appears unlikely
because health concerns, changes in corporate travel policies,
potential restrictions on international arrivals, and lower
discretionary spending because of weaker GDP and higher
unemployment will constrain air passenger demand into 2022.

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

Downward rating pressure could arise if Areas fails to raise
additional liquidity sources in the coming months or a prolonged
weakness in demand results in an unsustainable capital structure.
Downward rating pressure could also arise if Moody's-adjusted
(gross) debt/EBITDA remains sustainably above 6.0x or Moody's
EBIT/interest remains sustainably weak at less than 1.0x.

An upgrade is unlikely before a normalization of market conditions
as well as Moody's expectation of sustained organic growth in
revenues and earnings. Over time, upward rating pressure could
develop if Moody's-adjusted (gross) debt/EBITDA is sustainably
below 5.0x, Moody's EBIT/interest is sustainably above 1.5x, and
the company maintains a solid liquidity profile including positive
free cash flow.

STRUCTURAL CONSIDERATIONS

The senior secured credit facilities are rated B3, at the same
level as the CFR, reflecting their pari passu ranking and upstream
guarantees from operating companies. The senior secured credit
facilities benefit from first ranking transaction security over
shares, bank accounts and intragroup receivables of material
subsidiaries. Moody's typically views debt with this type of
security package to be akin to unsecured debt. However, the credit
facilities will benefit from upstream guarantees from operating
companies accounting for at least 80% of consolidated EBITDA.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Restaurant
Industry published in January 2018.

COMPANY PROFILE

Areas, headquartered in Spain, is a leading operator of food and
beverage concessions in travel hubs such as airports, train
stations, and motorway service areas. The company had revenue of
EUR1.9 billion in the fiscal year ended September 2019.



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T U R K E Y
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ODEA BANK: Fitch Affirms 'B' LongTerm IDRs, Outlook Negative
------------------------------------------------------------
Fitch Ratings has affirmed Odea Bank A.S.'s Long-Term Issuer
Default Ratings at 'B' with a Negative Outlook and Viability Rating
at 'b'. The bank's subordinated notes' rating has been downgraded
by one notch to 'CCC+' from 'B-', and removed from Under Criteria
Observation.

KEY RATING DRIVERS

IDRS, VR AND NATIONAL RATING

Odea's IDRs are driven by its standalone strength, as reflected in
its Viability Rating. The VR reflects the bank's very weak asset
quality and profitability, small absolute size, limited franchise
(end-1Q20: less than 1% of sector assets) and concentration in the
high-risk and volatile Turkish operating environment. These factors
are balanced by a reasonable funding profile and limited reliance
on wholesale funding.

Risks to Odea's Standalone Credit Profile, which were already
significant after the Turkish lira depreciation in 2018 and
economic slowdown in 2H18-2019, have been heightened by the
coronavirus outbreak and lockdown measures, given pressure on its
asset quality, capitalisation, performance, funding and liquidity.
This drives the Negative Outlook on the bank's Long-Term IDRs,
which could be downgraded if the recovery of the Turkish economy is
slower and the impact of the pandemic is more severe than
expected.

Fitch forecasts Turkey's GDP will contract 3% in 2020 followed by a
subsequent sharp recovery (5.0% GDP growth) in 2021. Monetary
policy measures and fiscal support for the private sector and
financial markets - including the latest Central Bank of the
Republic of Turkey interest-rate cuts and the expanded Credit
Guarantee Fund - should support borrowers' repayment capacity and
banks' ability to grow to a degree, despite the challenging market
conditions.

Odea provides banking services to corporate, commercial, SME and
retail customers in Turkey, extending loans largely to the
corporate and commercial segments. It has actively deleveraged
lending since 2017 due to asset quality pressures and a focus on
capital and liquidity. However, the introduction of the asset ratio
requirement could force it to increase lending at a time when the
operating environment has weakened, heightening credit risk at the
bank.

Pre-existing risks to asset quality are significant as indicated by
Odea's rising non-performing loans ratio and exceptionally high
Stage 2 loans compared with peers and the sector. However, the
latter is in part attributable to its conservative loan
classification approach, in its view.

NPLs decreased to a still high 12.5% of gross loans at end-1Q20
(end-2019: 14.5%) significantly above the sector average, although
lending also contracted by 12% during this period (FX-adjusted
basis)). Stage 2 loans, concentrated mainly in the real estate and
shopping mall sectors, rose to 33% of gross loans (end-1Q20) and
could migrate to the NPL category as loans season.

NPLs were 76%-covered by total reserves at end-1Q20, which is below
the sector average of 103%. Specific reserves coverage of NPLs was
41%, which is partly a function of the bank's focus on commercial
lending, where collateralisation is typically relatively high.
Nevertheless, current market illiquidity means collateral is likely
to be harder to realise.

Credit risks are heightened by single-name risk and exposure to the
troubled construction sector (28% of loans), mainly comprising
shopping malls. Foreign-currency lending is also material (55% of
the loan book at end-1Q20; sector average: 38%), and heightens
credit risk, given the impact of the Turkish lira depreciation on
often weakly hedged borrowers' ability to service their debt.

In the short term, regulatory forbearance will support Odea's
reported asset quality metrics. Nevertheless, Fitch expects
underlying asset quality to deteriorate and problematic exposures
to rise from their current low level, given the severity and scale
of the current downturn. However, the extent of asset quality
weakening will ultimately depend on the pace of economic recovery.

At end-1Q20 Odea's reported CET1 ratio was 12%. Its total capital
adequacy ratio was a stronger 19.5%, supported by USD282 million of
subordinated Tier 2 capital, which provides a partial hedge against
lira depreciation.

Fitch considers Odea's capital ratios to be only adequate for its
risk profile, small size, significant asset-quality risks,
concentration risk, limited capital generation and high unreserved
NPLs. Underlying capitalisation is also sensitive to potential
further lira depreciation (due to the inflation of foreign currency
risk-weighted assets and market volatility (due to revaluations of
bond portfolios through equity).

In the short term, regulatory forbearance will provide uplift to
Odea's reported capital metrics. Fitch estimates its CET1 ratio
would have been about 80bp lower net of forbearance measures at
end-1Q20.

Fitch expects the bank's profitability to remain under pressure due
to high impairment charges and low growth. Its operating profit/RWA
ratio was a very low 0.6% in 1Q20, as loan impairment charges
absorbed a high 52% of pre-impairment profit. Fitch expects
impairments to remain high, as banks provision for increased risks
despite the easing of regulatory loan classifications. Fitch also
expects increased loan restructurings to weaken revenue quality
across the banking sector. However, the bank's margins will
continue to benefit in the short term from the latest lira rate
cuts, driven by the short-term repricing gap between its assets and
liabilities, before loan yields start to reprice in 2H20.

The bank is largely funded by customer deposits, which represented
83% of non-equity funding at end-1Q20. The Fitch-calculated gross
loans-to-deposits ratio was a solid 82% at end-1Q20. The share of
foreign-currency deposits is very high (66%, versus the sector
average of 52%). As a result, the bank has lower wholesale funding
reliance than larger bank peers. Foreign-currency wholesale funding
amounted to a moderate 17% of non-equity finding at end-1Q20 (about
30% was short-term).

Foreign-currency liquidity is adequate and broadly sufficient to
cover the bank's maturing foreign-currency non-deposit liabilities
over the next 12 months. It comprises mainly interbank assets,
mandatory reserves held against local-currency liabilities in the
reserve option mechanism and cash. However, foreign-currency
liquidity could come under pressure in case of prolonged market
closure and deposit instability.

Odea is owned by Bank Audi S.A.L. The latter was affirmed at 'RD',
due to restrictions imposed by the Banque du Liban on banks'
operations in foreign currency (including for payments on customer
deposits in Lebanon), before its ratings were subsequently
withdrawn in January 2020.

Fitch sees limited contagion risk for Odea from its parent, based
on i) its zero exposure to Lebanon; ii) the fact that Odea has not
paid any dividends to date; and (iii) the relatively strong Turkish
regulator, which Fitch believes would seek to limit transfers of
capital and liquidity to the parent in case of stress at the
latter.

NATIONAL RATING

The affirmation of the National Rating reflects its view that
Odea's creditworthiness in local currency relative to other Turkish
issuers has not changed.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating of '5' and Support Rating Floor of 'No Floor'
reflect Fitch's view that support cannot be relied upon from the
Turkish authorities, due to the bank's small size and limited
systemic importance, nor from the bank's shareholder.

SUBORDINATED DEBT

Odea's subordinated notes' rating is notched down from the VR
anchor rating. Fitch has downgraded the subordinated notes' ratings
by one notch, to 'CCC+' from 'B-', and removed them from Under
Criteria Observation. This is in line with the change in Fitch's
baseline notching from the anchor rating for loss-severity to two
notches from one notch for such instruments, reflecting its
expectation of poor recoveries in case of default.

RATING SENSITIVITIES

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

The bank's IDRs and National Rating are primarily sensitive to the
bank's VR. The most immediate downside rating sensitivity for the
VR is the economic and financial market fallout of the pandemic,
given the negative implications for asset quality, earnings,
capitalisation and funding and liquidity.

The VR could be downgraded due to i) a marked deterioration in the
operating environment, as reflected in adverse changes to the lira
exchange rate, economic growth prospects, and external funding
market access; ii) a weakening of the bank's foreign currency
liquidity position due to foreign currency deposit instability or a
loss of market access; or iii) a greater than expected
deterioration in underlying asset quality that materially weakened
the bank's capital position or was indicative of a further increase
in risk appetite.

A material increase in exposure to Lebanese assets could also lead
to a downgrade (although this is not its base case).

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

Upside for the bank's ratings is limited in the near term given the
Negative Outlook. The Outlook could be revised to Stable if
economic conditions stabilise, supporting Odea's earnings, asset
quality, and funding stability.

SUBORDINATED DEBT

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

The subordinated debt rating is primarily sensitive to a change in
Odea's VR, from which it is notched. Therefore, a downgrade of the
VR would lead to a downgrade of the subordinated debt rating. The
debt rating could also be downgraded should Fitch change its
assessment of non-performance risk.

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

An upgrade of Odea's VR would lead to an upgrade of the
subordinated debt rating.

SUPPORT RATING AND SUPPORT RATING FLOOR

The SR and SRF are sensitive to Fitch's view on the likelihood of
Odea receiving extraordinary support from the Turkish authorities,
in case of need. A positive reassessment of these ratings, although
not impossible, is very unlikely in its view given Odea's limited
systemic importance and the limited ability of the sovereign to
provide support in FC.

BEST/WORST CASE RATING SCENARIO

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

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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

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).

Odea Bank A.S.

  -  LT IDR B; Affirmed

  - ST IDR B; Affirmed

  - LC LT IDR B; Affirmed

  - LC ST IDR B; Affirmed

  - Natl LT BBB(tur); Affirmed

  - Viability b; Affirmed

  - Support 5; Affirmed

  - Support Floor NF; Affirmed

  - Subordinated; LT CCC+; Downgrade


OPTIMA FAKTORING: Moody's Withdraws Caa1 Corp. Family Rating
------------------------------------------------------------
Moody's Investors Service withdrawn the ratings of Optima Faktoring
A.S., including the long-term local and foreign currency issuer
ratings of Caa3, the national scale issuer rating of Caa2.tr and
the long-term corporate family rating of Caa1. Prior to withdrawal,
the ratings had a negative outlook.

Moody's has decided to withdraw the ratings for its own business
reasons.


SEKERBAN TAS: Fitch Puts 'B-' LT IDRs on Rating Watch Negative
--------------------------------------------------------------
Fitch Ratings has placed Sekerbank T.A.S.'s 'B-' Long-Term Issuer
Default Ratings and 'b-' Viability Rating on Rating Watch Negative.
The bank's subordinated notes' rating has been downgraded by one
notch to 'CCC' from 'CCC+', and removed from Under Criteria
Observation. It has also been placed on RWN.

The RWN reflects the bank's weakened capital position amidst the
coronavirus fallout, and uncertainty surrounding the sufficiency
and timeliness of core capital strengthening measures.

Sekerbank's reported Tier 1 ratio fell slightly below its minimum
regulatory requirement at end-1Q20 to 8.3% (including the impact of
forbearance). A potential capital increase is due to be discussed
at the bank's extraordinary shareholder meeting, which has been
delayed until June 18, 2020 due to the pandemic, at which point a
decision regarding the size and timing of any capital injection is
expected to be made.

Fitch expects to resolve the RWN once it has greater clarity of the
size and timing of any capital injection. Fitch would not expect
resolution of the RWN to extend beyond the usual six-month period
for review given the bank's pressured capital position.

KEY RATING DRIVERS

IDRS, VR

Sekerbank's ratings are driven by its standalone creditworthiness,
as reflected in its VR. This reflects the bank's weak
capitalisation, performance and asset quality, weighed down by
rising problematic loans in the challenging Turkish operating
environment. The VR also reflects the bank's small absolute size,
limited franchise (less than 1% share of sector assets at end-1Q20)
and pricing power - although it has a widespread regional presence
in Anatolia - and its concentration in the high-risk and volatile
Turkish operating environment.

The RWN reflects the bank's pressured capital position and
uncertainty about the sufficiency and timeliness of any potential
capital injection.

Downside risks to Sekerbank's credit profile, which were already
significant after the Turkish lira depreciation in 2018 and
economic slowdown in 2H18-2019, have been heightened by the
coronavirus outbreak and lockdown measures. Fitch forecasts
Turkey's GDP will contract 3% in 2020 followed by a subsequent
sharp recovery (5.0% GDP growth) in 2021. A larger than expected
weakening in economic growth and an ensuing weaker recovery in 2021
would add to existing pressure on the bank's credit profile and
could result in a downgrade even if capital is replenished in the
near term.

Monetary policy measures and fiscal support for the private sector
and financial markets, including the Central Bank of the Republic
of Turkey interest-rate cuts, could support borrowers' repayment
capacity. In addition, regulatory forbearance measures will provide
uplift to its reported asset quality, capital and performance
metrics over the short term.

Sekerbank's core capital ratios compare weakly with those of peers
and Fitch views capitalisation as a constraining factor for the VR.
Prior to the 1Q20 breach, the bank had for some time reported thin
capital buffers over regulatory minimum levels and this in turn
constrained growth. Leverage is high and above the sector average,
and the bank was loss making in 2019. Unreserved NPLs are also high
relative to capital (end-1Q20: equal to 47% of CET1 capital).

At end-1Q20, Sekerbank reported a Tier 1 ratio of 8.3% (including
the impact of regulatory forbearance), below its 8.57% regulatory
minimum (the latter including a 2.5% capital conservation buffer
and 0.07% countercyclical buffer). Its CET1 ratio of 7.31% was just
above the minimum level (including buffer) of 7.07%, and its total
capital adequacy ratio of 12.5% marginally exceeded the 12%
recommended regulatory minimum. Fitch regards capitalisation as
tight given the bank's risk profile, small size, asset-quality
pressures, concentration risk, weak internal capital generation and
potential further lira depreciation (due to the inflation of
foreign currency risk-weighted assets; RWA).

In the short term, regulatory forbearance will provide uplift to
Sekerbank's reported capital metrics. Fitch estimates its CET1
ratio would have been 25bp lower net of forbearance measures at
end-1Q20. In addition, a potential core capital increase will be
discussed at the bank's extraordinary shareholder meeting, while
some form of AT1 debt issuance, as seen in 2019, is also possible.
The bank is authorised to issue up to TRY400 million (equivalent to
1.6% of RWA at end-1Q20) of AT1 capital.

Asset quality risks at the bank are significant, given Sekerbank's
exposure to the risky SME and micro-SME segments (end-2019: 54% of
net loans), which are highly sensitive to the downturn from the
pandemic. The bank also has exposure to high-risk sectors,
including construction (18% of gross loans at end-1Q20, albeit
mostly loans to contractors) and agriculture (11%) and single name
risk is high.

Foreign-currency lending is also high (33% of the loan book at
end-1Q20), but below the sector average, and heightens credit risk
given the impact of the Turkish lira depreciation on often weakly
hedged borrowers' ability to service their debt.

Sekerbank's impaired loans ratio increased to 13.3% of loans at
end-1Q20 (end-2018: 5.6%), although lending contracted during this
period, falling by 6% and 4% (FX-adjusted basis) in 2019 and 1Q20,
respectively. Stage 2 loans, concentrated mainly in the
construction and wholesale and retail trade sectors, were also high
at 12.3% of gross loans (end-1Q20) and could migrate to the
non-performing loan category as loans season. NPLs were 72%-covered
by total reserves (including Stage 1, Stage 2 and Stage 3 reserves)
at end-1Q20.

In the short term, regulatory forbearance will support the bank's
reported asset quality metrics. Nevertheless, Fitch expects
underlying asset quality to deteriorate and impairments to rise,
given the severity and scale of the current downturn, although to
what extent will ultimately depend on the pace of recovery.

Fitch expects profitability to remain under pressure due to high
impairment charges and low growth costs. The bank made a TRY782
million loss in 2019 (equal to 32% of end-2018 equity), as
impairment charges exceeded pre-impairment profit. It subsequently
recorded a TRY39 million net profit in 1Q20 (8% return on equity,
annualised), but this was largely driven by the short-term
repricing gap between its assets and liabilities as lira deposit
costs fell in the declining interest rate environment.

The bank is mainly deposit-funded (end-1Q20: 81% of total funding)
and benefits from a stable regional deposit franchise underpinned
by its large branch network. A high 49% of deposits were in foreign
currency at end-1Q20, following increased sector-wide
dollarisation.

The bank has reduced foreign-currency wholesale funding exposure
and new foreign-currency borrowings are likely to be limited given
its low growth appetite and focus on local-currency lending.
Foreign-currency wholesale funding was equal to a moderate 9% of
total funding at end-1Q20, below sector average, while funding
maturities were largely over one year.

The bank's foreign-currency liquidity - comprising largely cash and
interbank balances (including those placed with the Central Bank of
Turkey), maturing FX swaps and government securities - is
reasonable and Sekerbank should be able to cope with a short-lived
market closure given its limited short-term refinancing needs.
However, foreign-currency liquidity could come under pressure from
a prolonged loss of market access or foreign-currency deposit
outflows.

NATIONAL RATING

The RWN on the National Long-Term Rating reflects the RWN on the
bank's Long-Term Local-Currency IDR.

SUBORDINATED DEBT

Sekerbank's subordinated notes' rating is notched from the VR
anchor rating. It has been downgraded to 'CCC' from 'CCC+' and
removed from Under Criteria Observation. This is in line with the
change in Fitch's baseline notching from the anchor rating for
loss-severity to two notches from one notch for such instruments in
the agency's revised Bank Rating Criteria, reflecting its
expectation of poor recoveries in case of default. The RWN on the
subordinated notes mirrors the RWN on the VR.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating of '5' and Support Rating Floor of 'No Floor'
reflect Fitch's view that support cannot be relied upon from the
Turkish authorities, due to the bank's small size and limited
systemic importance, nor from the bank's shareholders.

RATING SENSITIVITIES

IDRS VR AND NATIONAL RATING

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

The RWN on the bank could result in a downgrade of the bank's
ratings if new core capital fails to be forthcoming, is not
forthcoming on a timely basis or is insufficient to support
capitalisation at a level commensurate with the bank's rating level
and risk profile.

The bank's ratings could also be downgraded in case of a greater
than expected deterioration in the operating environment that puts
further pressure on its asset quality, profitability and
capitalisation. A weakening in foreign-currency liquidity, due to
deposit outflows or an inability to refinance maturing external
obligations, could also result in a downgrade.

The National Rating could be downgraded if Sekerbank's
creditworthiness relative to other rated Turkish issuers weakens.

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

The bank's ratings could be affirmed and removed from RWN if
capital injections were sufficient to significantly strengthen the
bank's solvency. A Stable Outlook could be assigned if both (i)
economic conditions stabilise; and (ii) the bank's asset quality,
earnings, capital and liquidity positions prove to be resilient to
the current downturn.

An upgrade of the bank's ratings is unlikely in the near term given
the RWN.

SUBORDINATED DEBT RATING

The subordinated debt rating is primarily sensitive to a change in
Sekerbank's VR, from which it is notched. Therefore, a downgrade of
Sekerbank's VR would lead to a downgrade of the subordinated debt
rating.

SR AND SRF

The SR and SRF are sensitive to Fitch's view on the likelihood of
Sekerbank receiving extraordinary support from the Turkish
authorities, in case of need. A positive reassessment of these
ratings, although not impossible, is very unlikely in its view
given Sekerbank's limited systemic importance and the limited
ability of the sovereign to provide support in foreign currency.

BEST/WORST CASE RATING SCENARIO

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

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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

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).

Sekerbank T.A.S.

  - LT IDR B-; Rating Watch On

  - ST IDR B; Rating Watch On

  - LC LT IDR B-; Rating Watch On

  - LC ST IDR B; Rating Watch On

  - Natl LT BB+(tur); Rating Watch On

  - Viability b-; Rating Watch On

  - Support 5; Affirmed

  - Support Floor NF; Affirmed

  - Subordinated; LT CCC; Downgrade




=============
U K R A I N E
=============

DTEK RENEWABLES: Fitch Cuts LongTerm IDR to B-, on Watch Negative
-----------------------------------------------------------------
Fitch Ratings has downgraded Ukraine-based electricity generation
company DTEK Renewables B.V.'s Long-Term Foreign-Currency Issuer
Default Rating to 'B-' from 'B' and placed it on Rating Watch
Negative.

The downgrade reflects significantly reduced payment (by around
90%) by the state-owned guaranteed buyer for renewable energy since
March 2020, as all of the company's generated electricity is sold
to it under approved regulated feed-in-tariffs. It also
incorporates its assumption of downward revision of FiTs for
renewable generators, against the backdrop of the coronavirus
pandemic and deterioration in Ukraine's economy, which Fitch
expects to shrink 6.5% in 2020, as well as a liquidity drain.

Fitch will resolve the RWN once the new law regulating FiTs and
repayment of outstanding receivables is in force, and payments by
the guaranteed buyer recover.

KEY RATING DRIVERS

Non-payments from Guaranteed Buyer: From July 2019 under the new
market model, the guaranteed buyer acquires all electricity
generated from renewable energy producers, 85% output from nuclear
power plants (80% from end-May 2020) and 35% from state-owned hydro
power plants and resells it to universal electricity supplier at
regulated below-market prices for household needs and to the
unregulated day-ahead market. Since March 2020 the guaranteed buyer
almost suspended payments to renewable energy producers, including
DTEK Renewables, due to its accumulated debt between market
participants across the entire electricity chain. Settlements with
renewable energy producers varied from 5% to 11% monthly during
March-May 2020.

Cash Flows Erosion from Non-Payment: As of May 29, 2020, the
overdue debt owed by guaranteed buyer to DTEK Renewables for
March-May 2020 reached EUR61 million (UAH1.8 billion), net of VAT.
This erodes its cash flows from operations, which may suffer
further if cash is trapped at opcos with project finance debt. Its
rating case assumes that it will not receive cash until October
2020 and that it will receive its owed amounts only over 2021-2022.
It has curtailed its capex and operating spending since early 2020
but weak cash flow generation in 2020 will drive leverage above its
previous negative sensitivity of 5x. More prolonged non-payments
from the guaranteed buyer may further weaken the company's
financials and would be negative for the rating.

MOU Singed: On June 10, 2020 the Cabinet of Ministries of Ukraine
and Ukrainian Wind Energy Association & European-Ukrainian Energy
Agency, representing renewable power producers, signed a memorandum
of understanding to restructure the green tariff support scheme.
The MOU envisages a 7.5% and 15% FiT reduction for wind and solar
generators respectively. The state authorities committed, among
other things, to ensure re-payment of all outstanding receivables
from the guarantee buyer accrued in 2020 by end-2021, timely
payment for electricity generated in the future, once the law
enters into force. DTEK Renewables expects the MOU to be enacted
into law in July 2020.

FiT Cut Assumptions: In its rating case Fitch assumes more
significant cuts of 10% and 20% to DTEK Renewables' FiT of EUR0.102
per kWh for wind and EUR0.15 per kWh for solar, respectively, from
mid-2020. A more pronounced FiT decrease would put further pressure
on EBITDA and credit metrics while cuts as agreed in the MOU would
be an upside, but insufficient for a positive rating action.

Weakening Liquidity: At end-2019 cash stood at UAH4.2 billion,
including UAH3.4 billion (EUR130 million at end-2019 exchange rate)
of the remaining green bonds proceeds (held in euros), which the
company does not plan to use for debt repayment. For liquidity
calculation, Fitch includes UAH0.8 billion of cash and UAH1.1
billion in DSRA and DSA accounts, which represent restricted cash
for bank debt repayment, against UAH1.7 billion of short-term debt
to non-related parties. Fitch expects short-term debt to related
parties of UAH 2.7 billion to be netted from the proceeds from
repayment of loans issued to related parties, which stood at UAH6
billion at end-2019.

FX Exposure: DTEK Renewables continues to be exposed to
foreign-exchange fluctuations as about 85% of its debt at end-2019
was euro-denominated, which was mainly used to fund its investment
programme. It generates revenue in hryvnia, but tariffs are
euro-denominated and converted quarterly by the local regulator at
the current euro-hryvnia rate, limiting the company's FX exposure.
The company does not use any hedging instruments, other than
holding a portion of its cash in euros (equivalent to UAH185
million at end-2019).

New Projects on Hold: DTEK Renewables has put on hold construction
of 565MW of a wind power farm and 390MW of photovoltaic farms,
which were previously part of its rating-case estimate. In its
current rating case Fitch assumes the company will spend the
remaining EUR130 million proceeds from green bonds on the PV farm
construction over 2020-2021 (i.e. with about a-year delay), thus
increasing its total installed capacity by another 220MW in 2022.

Small Size: DTEK Renewables is one of the largest independent
producers of electric energy from wind in Ukraine, with about 45%
of wind power capacity and 14% of the Ukranian market of renewable
energy installed capacity as of May 2020. Following successful
completion of its projects in 2019 the company operated a 500MW
wind farm and a 450MW PV farm at end-2019, increasing its current
portfolio to 950MW, from 210MW at end-2018, but it is still small
compared with most rated peers'.

DERIVATION SUMMARY

DTEK Renewables is one of the largest renewable energy producers in
Ukraine, which operates wind and solar power-generating assets with
a capacity of 950MW.

DTEK Renewables is of comparable size to Limited Liability
Partnership Kazakhstan Utility Systems (KUS; B+/Stable), although
KUS generates electricity from traditional sources. Another peer is
Energo-Pro a.s. (BB-/Stable), a hydro producer in Bulgaria, Georgia
and Turkey, which sells electricity under FiTs and on the free
market, and also benefits from integration into networks.

Compared with peers, DTEK Renewables has more profitable
operations, but suffers from payment issues by its offtaker and a
weaker regulatory and operating environment. It also has a weaker
financial profile than peers' due to higher leverage and weaker
liquidity.

KEY ASSUMPTIONS

  - Domestic GDP to shrink 6.5% in 2020, before growing 3.5% p.a.
up to 2024; inflation at 5.5%-6.5% in 2020-2024

  - Average euro/hryvnia exchange rate of 30.3 in 2020 and gradual
depreciation to 38.3 by 2024

  - Remaining Eurobond proceeds of EUR130 million to be invested in
new projects with a delay vs. the original schedule

  -  Resumption of payments by the guaranteed buyer by October 2020
at reduced tariffs

  - Guaranteed buyer's outstanding debt repayment over 2021-2022
with a 20% haircut

  - Zero dividends in 2020-2021 and of UAH4.5 billion annually over
2022-2024

  - FiT haircut of 10% for wind power stations and 20% for solar
power stations from initially approved FiT from mid-2020

  - Installed capacity to increase 220MW by mid-2022

  - Generation volumes under P75 assumption based on independent
reports or, if reports are unavailable, on management expectations

KEY RECOVERY RATING ASSUMPTIONS

  - The recovery analysis assumes that DTEK Renewables would be a
going concern in bankruptcy and that the company would be
reorganised rather than liquidated

  - A 10% administrative claim

  - Covers guarantors' group only

Going-Concern Approach

  - The going-concern EBITDA estimate reflects Fitch's view of a
sustainable, post-reorganisation EBITDA level upon which it bases
the valuation of the company

  - The going-concern EBITDA is 20% below expected 2021 levels of
its power plants Orlovsk WPP and Pokrovsk SPP, resulting in EBITDA
of around EUR55 million

  - An enterprise value multiple of 3x

  - These assumptions result in a recovery rate for the senior
unsecured debt at 'RR4'. The recovery output percentage is 39%.

RATING SENSITIVITIES

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

  - Weaker liquidity (liquidity ratio below 1x)

  - Continued non-payments from guaranteed buyer for a more
prolonged period than currently anticipated

  - More severe downward revision of tariffs than currently
anticipated

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

  - Resumption of payments from the guaranteed buyer and clarity
over repayment of its debt to renewable energy producers as well as
future FiT allowing for strong cash flow generation would lead to
an IDR affirmation and a Stable Outlook

  - As the ratings are on RWN, Fitch does not anticipate an
upgrade

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.

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).


UKRAINE: Moody's Hikes LT Issuer & Senior Unsecured Ratings to B3
-----------------------------------------------------------------
Moody's Investors Service has upgraded the Government of Ukraine's
long-term issuer and senior unsecured ratings to B3 from Caa1. The
outlook on the ratings is stable.

The main driver of the decision to upgrade the ratings to B3 is the
easing of Ukraine's near-term funding challenges and the safeguards
afforded to recent improvements in its external vulnerability as a
result of the announced new financing programme with the
International Monetary Fund [1]. The decision to upgrade the
ratings also reflects Moody's expectation that the new IMF
programme will help anchor the reform progress achieved in recent
years.

Concurrently, Moody's has affirmed the Ca senior unsecured rating
on the $3 billion Eurobond that Ukraine sold in December 2013. The
sole subscriber of the notes was the Russian government. The bond
is under dispute due to the international armed conflict between
the two governments. The Government of Russia (Baa3 stable) has
sued Ukraine for repayment of the bond in English courts, under
whose jurisdiction the bond was issued, and the case is set for
trial.

The stable outlook on the B3 rating balances the country's
strengthened macroeconomic stability and moderate levels of
government debt against ongoing governance challenges, improved,
albeit still elevated, vulnerability to external shocks and
political risks. Furthermore, Moody's believes that the prospects
for reforms needed to further enhance Ukraine's credit profile are
impaired as the authorities focus on responding to the pressures
arising from the coronavirus outbreak.

Finally, Ukraine's long-term foreign currency bond and deposit
ceilings have been raised to B2 from B3 and Caa1 from Caa2
respectively, while the short-term foreign currency ceilings for
bonds and deposits remain Not Prime (NP). The country ceilings for
local currency bonds and deposits have also been raised to B2 from
B3.

RATINGS RATIONALE

RATIONALE FOR THE UPGRADE TO B3

EASING OF FUNDING AND EXTERNAL PRESSURES AS RESULT OF NEW
MULTILATERAL FINANCING

The main driver of the decision to upgrade Ukraine's ratings to B3
is the easing of Ukraine's near-term funding challenges as well as
the safeguarding of recent improvements made to Ukraine's external
vulnerability as a result of the new IMF programme and associated
multilateral financing support. Moody's noted at the time of
assigning the positive outlook in November 2019 that sustaining the
progress made in reducing Ukraine's sizeable external
vulnerability, including reaching agreement on a new IMF programme,
would support an upgrade in the rating.

The new 18-month IMF Stand-by Arrangement programme, which was
secured after the passing of a new banking law and land reform,
provides up to around $5 billion in funding support to help Ukraine
cope with the pressures arising from the coronavirus outbreak, with
just below half of the available financing under the programme
(around $2.1 billion) disbursed immediately. The programme's
emphasis, in addition to funding support, is on safeguarding the
reform achievements to date and will require Ukraine to advance
only limited structural reforms focused on progressing governance
and anti-corruption measures. The IMF reduced the scope of the
programme from a previously targeted 3-year Extended Fund Facility,
which would have had a greater focus on longer-term structural
reforms.

Moody's estimates the new IMF agreement will, together with
crystallising disbursements from other multilateral and bilateral
lenders such as the World Bank and European Union (Aaa stable),
provide funding support worth up to $8.6 billion (6% of 2020 GDP)
to help alleviate Ukraine's sizeable financing challenge.

Securing additional multilateral funding has become vital as
Ukraine's financing needs have risen sharply given the marked
deterioration in the country's macroeconomic conditions. With the
economy forecasted by Moody's to contract by 4.5% this year and the
fiscal response to the coronavirus outbreak, Moody's expects the
government's budget deficit to increase to 7.5% of GDP in 2020, up
from a deficit of 2.0% of GDP in 2019. Together with an already
large debt refinancing schedule, Moody's estimates the government's
gross funding needs for this year at around 16% of GDP, with a
smaller but still challenging funding need next year.

At the same time, the new IMF programme will help to safeguard the
improvements made in reducing Ukraine's external vulnerability in
recent years. Moody's expects Ukraine's strengthened foreign
exchange reserves, which increased markedly in 2019 on the back of
strong foreign investor demand, to be preserved as the new IMF
programme buffers against the country's large refinancing needs and
helps to limit private capital outflows by supporting investor
sentiment. Moody's forecasts foreign exchange reserves (excluding
gold) to remain around $22 billion by the end of the year,
sufficient to cover around four months of imports and substantially
larger than the nadir of $4.7 billion in February 2015, as credible
monetary policy and generally limited external pressures support a
continued broad stabilization in the exchange rate.

PROGRESS ACHIEVED ON ITS REFORM AGENDA WELL ANCHORED UNDER THE NEW
IMF PROGRAMME

The decision to upgrade Ukraine's ratings to B3 also reflects
Moody's expectation that the new IMF programme -- apart from
alleviating the government's near-term funding challenges and
safeguarding the improvements made in reducing Ukraine's external
vulnerability in recent years -- will help to anchor the reform
progress achieved in recent years and support a continuation of
Ukraine's improved monetary and fiscal policy settings.

In particular, Moody's expects the IMF programme will help to
preserve the recent strengthening in the monetary policy framework,
including the adoption of a more flexible exchange rate as part of
an inflation targeting framework as well as enhancements to central
bank independence, which has helped to reduce inflation and improve
macroeconomic stability. Furthermore, the passing of a new banking
law in May 2020 will help to preserve the comprehensive banking
sector reforms undertaken in recent years by preventing former
owners of banks declared insolvent from regaining their assets.

Continued engagement with the IMF will also help to ensure that
Ukraine's fiscal prudence, with a track record of primary budget
surpluses helping to reduce the government debt burden in recent
years, will be sustained over the medium term.

Furthermore, the recent passing of a bill to lift the longstanding
ban on agricultural land sales, albeit still restricting the
ability for foreigners to purchase land, is an important step
towards establishing a more competitive and open land market.

Finally, while measures of corruption and the rule of law still
point to challenges in this area, Moody's expects the country to
sustain recent progress on anti-corruption reforms, including the
establishment of new bodies to handle corruption cases and the
reintroduction of a law criminalising the illicit enrichment of
government officials.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook on the B3 rating balances Ukraine's strengthened
macroeconomic stability and moderate levels of government debt
against ongoing governance challenges, improved, albeit still
elevated, vulnerability to external shocks and political risks.

Moody's expects Ukraine's stronger external position and improved
macroeconomic stability will provide a degree of medium-term
resilience to the impact of the global coronavirus outbreak as it
sharply weighs on Ukraine's near term economic and fiscal
performance.

In particular, the comprehensive clean-up of the banking system
undertaken under previous IMF programmes has helped to preserve
financial stability during the current crisis, while inflation has
been much lower than in past crises, providing scope for the
central bank to continue supporting the economy.

As a result, while Moody's expects the economy -- through
restrictions on domestic activity, weaker external demand and lower
remittances -- to contract sharply this year, economic growth is
expected to recover gradually from the second half of 2020, with
real GDP forecast to rise by around 3.6% in 2021.

Ukraine's economic recovery will be supported by its sizeable
agriculture exports which are relatively resilient to price
movements, low exposure to tourism and status as a net energy
importer. That said, a larger than expected impact on global demand
and commodity markets could result in a more protracted drag on
growth.

At the same time, Moody's forecasts the economic and fiscal
deterioration will lead to a more than 12 percentage point increase
in Ukraine's government debt to GDP ratio to around 63% in 2020,
although government debt will still remain in line with rating
peers. That said, Ukraine's fiscal strength will continue to face
notable exchange rate risks from a substantial share of government
debt which is denominated in foreign currency.

The stable outlook on the B3 rating also reflects that, while
improved, Ukraine's vulnerability to external shocks constrains the
potential for further upward rating momentum given its dependence
on international lenders to help finance large external repayments
due over the coming years.

Despite growing strongly, foreign exchange reserves at the end of
2019 only covered around half of external debt maturing within 12
months, while Ukraine's external vulnerability indicator, Moody's
measure of reserve adequacy, is forecast to reach around 218% at
the end of 2021, much weaker than the B-rated median of 92%.

Moody's expects investor sentiment towards Ukraine, while likely to
improve with the new IMF programme, will remain fragile given
heightened risk aversion globally and volatile domestic politics.
With constrained access to external markets, the government will
rely on financing in the domestic debt market, which, while
continuing to develop, still provides only a limited capacity to
replace external funding, particularly if multilateral funding
disbursements were to be delayed in light of Ukraine's mixed track
record in complying with previous IMF programmes.

Finally, Moody's believes that the prospects for reforms needed to
further enhance the country's credit profile are impaired this year
and next, as the authorities focus on responding to the social and
economic pressures arising from the coronavirus outbreak.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

Moody's takes account of the impact of environmental (E), social
(S), and governance (G) factors when assessing sovereign issuers'
economic, institutional and fiscal strength and their
susceptibility to event risk. In the case of Ukraine, the
materiality of ESG to the credit profile is as follows.

Environmental considerations are material to Ukraine's credit
profile given its marked reliance on the agriculture sector,
despite ongoing efforts at diversification, such that adverse
weather events can add volatility to the country's exports.

Social factors are material to Ukraine's credit profile given its
adverse demographic trends. A persistent demographic drag will
likely constrain the country's labour supply and limit Ukraine's
long-term growth potential. Moody's also regards the coronavirus
outbreak as a social risk under its ESG framework, given the
substantial implications for public health and safety, and that the
outbreak will have an adverse economic and fiscal impact for
Ukraine.

Governance considerations are material to Ukraine's credit profile.
Ukraine receives relatively unfavorable scores on the Worldwide
Governance Indicators in the categories of government
effectiveness, rule of law and control of corruption, which serves
to impede more robust entrepreneurial activity and investment. The
country's weak governance standards will likely continue to hamper
institutional capacity and act as a headwind to material credit
improvements.

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

Ukraine's ratings could move higher up within the B-rating category
if Moody's concluded that progress on structural reforms were
expected to materially enhance Ukraine's credit profile through
addressing some of the sovereign's structural credit constraints,
including those emanating from its weak institutions and external
position.

Such progress would likely include improvements to the business
environment which helps to foster stronger investment, including
from abroad, and raise productivity growth. In particular, faster
progress on anti-corruption reforms, including tangible results
from the establishment of new anti-corruption bodies, and measures
to enhance the integrity of the judiciary, with evidence of a
material improvement in the rule of law and control of corruption,
would be positive. Furthermore, faster progress on reforming
state-owned enterprises which helps to enhance competition and
reduce risks to public finances, would also provide upward rating
pressure.

Progress in addressing these credit constraints would likely rely
on safeguarding previous reforms which have helped strengthen
economic stability, including enhancements made to central bank
independence and the comprehensive clean-up of the banking system.

Conversely, Ukraine's ratings would be downgraded if a recurrence
of external pressures were to result in a marked deterioration in
Moody's assessment of Ukraine's external vulnerability and give
rise to renewed concerns around government financing.

For example, a sharp reduction in the country's foreign exchange
reserve buffer in relation to its external repayment's obligations
would lead to downward pressure on the rating. Furthermore, a
breakdown in co-operation with the IMF resulting in material delays
to multilateral financing and impairing access to external markets,
which in turn hampers Ukraine's ability to repay its debt
obligations, would be negative. In addition, indications of
backsliding on critical prior reforms would be negative for the
rating. Finally, downward ratings pressure would also derive from
an escalation of geopolitical tensions that have a negative
spillover on Ukraine's economic and fiscal strength.

This action was prompted by the approval by the IMF Board of a new
18-month Stand-By Arrangement facility for Ukraine including an
initial funding disbursement.

GDP per capita (PPP basis, US$): 9,775 (2019 Actual) (also known as
Per Capita Income)

Real GDP growth (% change): 3.2% (2019 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 4.1% (2019 Actual)

Gen. Gov. Financial Balance/GDP: -2.0% (2019 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: -0.9% (2019 Actual) (also known as
External Balance)

External debt/GDP: 79.2% of GDP (2019 Actual)

Economic resiliency: b3

Default history: At least one default event (on bonds and/or loans)
has been recorded since 1983.

On June 10, 2020, a rating committee was called to discuss the
rating of the Government of Ukraine. The main points raised during
the discussion were: The issuer's economic fundamentals, including
its economic strength, have not materially changed. The issuer's
institutions and governance strength, have not materially changed.
The issuer's fiscal or financial strength, including its debt
profile, has not materially changed. The issuer has become less
susceptible to event risks.

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

The weighting of all rating factors is described in the methodology
used in this credit rating action, if applicable.




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

AWAZE LIMITED: Moody's Confirms B3 CFR, Outlook Negative
--------------------------------------------------------
Moody's Investors Service confirmed the corporate family rating of
B3 and probability of default rating of B3-PD assigned to Compass
III Limited, a leading European manager of holiday rentals.
Concurrently, Moody's has confirmed the B2 rating on the senior
secured facilities and the Caa2 rating on the second lien loan
issued by Awaze Limited. The outlook on all ratings has been
changed to negative, from ratings under review.

RATINGS RATIONALE

The rapid and widening spread of the coronavirus pandemic,
deteriorating global economic outlook, falling oil prices, and
asset price declines have created a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The leisure 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. Moody's regards the coronavirus
outbreak as a social risk under its ESG framework, given the
substantial implications for public health and safety.

Today's ratings confirmations balance Awaze's adequate liquidity
against the breadth and severity of the coronavirus shock and the
uncertain trends in customer demand that will persist in the next
12-18 months. Moody's expects that Awaze's offering, which is both
relatively affordable and largely focused on domestic tourism is
well placed to capture a faster recovery in demand as compared to
the leisure sector as a whole. This is because air travel is
expected to remain at significantly lower levels in the next two
years because of both potential government restrictions and lower
passenger demand. Other means of transport, such as driving or
traveling by trains will likely recover more quickly. In addition,
Moody's forecasts a 6.5% contraction of GDP in the euro area this
year and recession in many European countries, which will likely
curb consumer confidence and affect their holiday budgets.

Awaze was initially hit by the very sharp decline in bookings and
leisure sites closures in March 2020 as European governments
introduced a range of confinement measures to slow down the virus
spread Since then, all Awaze's Landal parks in the Netherlands,
Germany and other countries have re-opened, although park central
facilities initially remain closed. The holiday rental business is
also operating across all major countries and Moody's expects both
businesses to benefit from Germany's plan to re-open borders from
15th of June because the country is one of the key source markets
for Awaze. The UK business, however, remains closed while there is
also little demand for the packaged tours for the company's James
Villas Holiday segment. The coronavirus pandemic will continue to
curtail global demand in the leisure sector this year due to both
travel restrictions and fears of contracting the virus while
traveling. Moody's expects Awaze's revenue to be 20%-25% lower this
year compared to 2019 and Moody's-adjusted debt/EBITDA could
temporarily exceed 10x in 2020 before returning to around 7x in
2021, its 2019 leverage level. However, depending on the length and
severity of the travel restrictions and government confinement
measures there could be a deeper downside case or a slower recovery
including a significantly affected peak summer season.

The rating action also reflects the flexibility of the company's
cost base and the government support programmes for the payroll for
its staff. Awaze has responded to the crisis by reducing capex to
below EUR20 million from EUR60 million in 2019 and cutting
administrative costs. Moody's also understands that the company's
planned M&A transactions are now on hold. Moody's positively notes
that Awaze's flexible cost structure and continuing bookings flow
helped the company to maintain its cash balances with cash at the
end of May of EUR320 million slightly higher than at the end of
March.

Moody's considers certain governance considerations related to
Awaze as the company is controlled by Platinum Equity which, as is
common for private equity sponsored deals, has a high tolerance for
leverage and potentially high appetite for shareholder-friendly
actions. Moody's also notes that the company is executing its large
business optimisation programme following the carve-out from
Wyndham Worldwide, which makes it more difficult to monitor the
underlying business performance. That said, the company has made a
notable effort to improve transparency by providing additional
disclosures, including third party reviewed quarterly reports.

LIQUIDITY

The company's liquidity is adequate. Awaze benefits from EUR320
million of unrestricted cash on balance sheet as of May 2020,
including fully drawing the EUR105 million revolving credit
facility. The RCF is typically used to cover seasonal working
capital outflows in the fourth quarter of the year, but was drawn
as a precautionary measure following the coronavirus crisis. The
company does not have any notable debt maturities until 2024 apart
from ongoing finance lease payments of circa EUR10 million per
year. The RCF contains a leverage-based springing covenant tested
if the facility is drawn more than by 35% and for which Moody's
expects the company to remain in compliance.

STRUCTURAL CONSIDERATIONS

The B2 ratings of the EUR715 million senior secured first lien and
the EUR105 million RCF are one notch above the group's corporate
family rating. The ratings on these instruments reflect their
contractual seniority in the capital structure and the cushion
provided by the second lien, which is rated Caa2. The collateral
package consists of a pledge over the majority of the group's bank
accounts, intragroup receivables and shares. and does not include
the company's owned parks and land in the Netherlands with an
approximate value of EUR300 million.

RATIONALE FOR NEGAITVE OUTLOOK

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

Moody's could change the outlook to stable when it appears the
coronavirus impact on the business has receded and Awaze is on
track to reduce its leverage below 7x.

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

Upward rating pressure would not arise until the coronavirus
outbreak is brought under control, travel restrictions are lifted,
and travel flows return to more normal levels. Over time, Moody's
could upgrade the company's rating if Awaze builds a track record
of profitability improvements and reduce restructuring costs.
Quantitatively, an upgrade would require Moody's adjusted
Debt/EBITDA to decline to sustainably below 6x while maintaining a
consistently positive free cash flow generation.

Moody's could downgrade Awaze's ratings if confinement measures and
travel restrictions result in significantly slower than anticipated
demand recovery or higher costs, leading to further deterioration
in credit metrics and liquidity. Over a longer term a negative
rating pressure would result from any operational difficulties
preventing the company's EBITDA to grow and its free cash flow
generation to remain positive.

PRINCIPAL METHODOLOGY

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

LIST OF AFFECTED RATINGS:

Confirmations, previously placed on review for downgrade:

Issuer: Compass III Limited

LT Corporate Family Rating, Confirmed at B3

Probability of Default Rating, Confirmed at B3-PD

Issuer: Awaze Limited

Backed Senior Secured Bank Credit Facility, Confirmed at B2

Backed Senior Secured Bank Credit Facility, Confirmed at Caa2

Outlook Actions:

Issuer: Awaze Limited

Outlook, Changed to Negative from Ratings Under Review

Issuer: Compass III Limited

Outlook, Changed to Negative from Ratings Under Review

PROFILE

Awaze is a carve-out from Wyndham Worldwide, acquired by Platinum
Equity Advisors in May 2018. The company operates in three main
business segments: Landal Parks (Netherlands-based holiday parks
operator and franchisor), Novasol (professional agent for
Continental European holiday homes) and Awaze Vacation Rentals U.K.
(Awaze UK), which includes a rental agency business for UK holiday
cottages, lodges, parks and boating accommodations, as well as a
specialist villa tour operator business. In 2019, Awaze generated
around EUR715 million in revenue and EUR130 million in
management-adjusted EBITDA.

EDINBURGH FESTIVAL: Warns of Facing Insolvency Amid Pandemic
------------------------------------------------------------
Edinburgh Live reports that the Edinburgh Festival Fringe has
warned it is facing insolvency due to the coronavirus pandemic.

According to the report, the stark warning was made by the
Edinburgh Festival Fringe Society, which organises the August event
and has so far made four staff members redundant, with 70%
furloughed and all workers having their pay cut by a fifth.

In a submission to Westminster's Culture, Media and Sport
committee, the charity, which effectively facilitates the
open-access festival, said it faces a shortfall of GBP1.5 million.

The society begged the UK Government for an annual grant to
'provide an underlying stability to our charitable purposes and
public good'.

It presented the festival as crucial to the cultural life of the UK
and crucial to jobs in the arts sector, the report relays.

Edinburgh Live relates that the submission said: "The double-edged
sword is that if the Fringe is under threat, we can make a fair
assumption that there will be a serious reduction of employment for
many people and a lack of shows for many theatres and festivals up
and down the country, when they are already struggling to get back
on their feet."

And it warned that the economy of the entire city could be
impacted.

It added: "With the Fringe not taking place, shows don't perform,
venues don't operate, smaller local businesses don't get that work
and accommodation providers don't benefit.

"The overall impact and picture is immense, and extends beyond
2020, especially if these organisations and businesses (not able to
avail of the existing public assistance) are unable to survive to
make the return to business in the future.

"Therefore, a catastrophic year, brought on by Covid-19, could lead
to the loss of Edinburgh's infrastructure as the world's leading
festival city, and the pivotal role the Fringe plays for the UK
creative industries."

Edinburgh Live notes that it was announced last month that the
Fringe along with other festivals in Edinburgh, would be axed due
to the pandemic.

The submission, as cited by Edinburgh Live, said: "The Fringe
supports so many creative livelihoods well beyond three weeks in
August, and yet the Society finds itself in a situation where,
unlike other festivals that are in receipt of public funding, we
are facing insolvency.

"It is inconceivable that the UKs most important cultural festival,
which attracts such a high social, creative and economic impact is
facing a precarious, fragile and uncertain future."


PICK FISK: Owes Cornelis Vrolijk-Backed Firms Over GBP1.5MM
-----------------------------------------------------------
Tom Seaman at Undercurrent News reports that companies owned fully
or partly by Dutch seafood giant Cornelis Vrolijk are owed over
GBP1.5 million by Pick Fisk, a UK shrimp and fish supplier which
went into administration at the end of April.


PJ BROWN: Enters Administration Amid Covid-19 Pandemic
------------------------------------------------------
Carol Millett at MotorTransport reports that PJ Brown
(Construction) has gone into administration.

The administration follows the closure of construction sites across
the country in the wake of the Covid-19 pandemic, which has hit the
sector's supply chain hard, MotorTransport notes.

The Crawley-based firm, which has an operating license for 79
vehicles, has appointed joint administrators Nicholas Cusack and
David Perkins of Parker Andrews and Andrew Andronikou of Quantuma,
MotorTransport relates.

PJ Brown (Construction) was launched by Peter Brown in 1980,
MotorTransport notes.


SEAFOOD PUB: Enters Administration After Failing to Secure Loan
---------------------------------------------------------------
Sophie-May Clarke at Lancashire Telegraph reports that The Seafood
Pub Company, a multi-award winning pub group which operates some of
the county's most popular and highly-regarded eateries, has filed
for administration.

The Seafood Pub Company, which among many others owns the Assheton
Arms in Downham, the Oyster and Otter in Blackburn and Forest in
Fence, had to call in administrators last week, after failing to
secure funding since the coronavirus lockdown, Lancashire Telegraph
relates.

Last year, it was reported that a series of one-off expenses such
as system improvements, restructuring, and the exit of one non-core
site, the Roaming Roosters farm shop and cafe in Higham near
Burnley, were to blame for its GBP1.2 million loss, Lancashire
Telegraph recounts.

At the time, founder Joycelyn Neve said she did not expect the
costs to repeat in future years, Lancashire Telegraph notes.

However, on June 12 a letter written by Miss Neve thanked all of
her staff for their hard work, commitment and friendship as she
revealed the sad news that the company had gone under, Lancashire
Telegraph relays.

According to Lancashire Telegraph, she wrote: "It is with a very
heavy heart that I am writing to tell you that we have not been
able to secure the funding needed for the business to survive.

"As we were not granted a coronavirus business interruption loan
the next step was for us to try and raise funding from the bank and
our investors. While both were supportive, the investor fundraise
failed, as did my subsequent management buyout attempt.

"Without funding and no income since the forced closure, we have no
choice other than for the business to go into Administration."

The full list of pub's owned by the company is as follows:

   -- Assheton Arms, Downham
   -- Farmers Arms, Great Eccleston
   -- The Fenwick, Lancaster road, Claughton
   -- Barley Mow, Pendle
   -- Derby Arms, Longridge
   -- The Oyster & Otter, Blackburn
   -- The Alma Inn, Laneshawbridge
   -- The Inn, South Stainley, Harrogate
   -- The Fleece, Addingham, Ilkley
   -- Forest, Fence


TORO PRIVATE I: Fitch Cuts IDR to CCC+, Off Rating Watch Negative
-----------------------------------------------------------------
Fitch Ratings has downgraded Toro Private Holding I, Ltd's
Long-Term Issuer Default Rating to 'CCC+' from 'B-'. The first-lien
and second-lien instruments issued by Travelport (Luxembourg)
S.a.r.l. ratings have also been downgraded to 'CCC+' and 'CCC-',
from 'B' and 'CCC+' respectively. All ratings have been removed
from Rating Watch Negative.

The IDR downgrade reflects the larger-than-envisaged impact of the
coronavirus pandemic on Travelport's operations and financial
profile. The virtual standstill in global air traffic and tourism
led to an acceleration of cash outflows in April and May 2020,
creating an immediate capital need. In early June 2020 it issued
USD220 million in new notes - out of a total USD500 million
available - backed by collateral transferred from its restricted
group and provided by shareholders and affiliates outside of the
restricted group.

Once travel resumes, Fitch expects revenues and operating margins
to recover, but leverage is forecast to remain elevated above 10.0x
until at least 2022. Uncertainty on the pace and scale of the
recovery trajectory, high leverage and weaker free cash flow and
funds from operations interest coverage are more commensurate with
a 'CCC+' rating over its four-year rating horizon.

KEY RATING DRIVERS

Severe Impact from Coronavirus: Travelport's business is severely
impacted by the disruption to global travel caused by the pandemic.
The disruption to Travelport has been more severe than envisaged as
cash outflows from booking cancellations accentuate depressed
booking volumes. The depth and duration of the outbreak and
corresponding disruption to booking volumes weigh heavily on the
near- term operating outlook. Travelport relies on a speedy
recovery in global travel given its increasingly leveraged balance
sheet with debt service obligations constituting about half of
Fitch-defined EBITDA for 2019.

New Money Further Elevates Leverage: Fitch assumes the total
commitment under the new notes of USD500 million to be fully
deployed despite a portion containing a delayed draw feature. Fitch
forecasts a requirement to draw on the remaining USD280 million in
early 2021. Currently Fitch estimates that EBITDA is unlikely to
recover towards 2019 levels for several years due to expectations
of lower global travel volumes, despite permanent cost reductions
made by management since the start of the pandemic. Fitch expects
FFO gross leverage to remain above 10.0x in 2023, representing an
increasingly challenged capital structure.

Minimal Liquidity Headroom: Travelport's liquidity buffers have
been replenished with the injection of USD220 million of proceeds
from the notes issue and access to a further USD280 million. The
newly injected capital alleviates short-term liquidity risks, but
only provides minimal headroom as high overall interest payments
would see any sustained weakening in trading exhaust the remaining
headroom, resulting in a further capital need. Its USD150 million
revolving credit facility was fully drawn in March 2020. Fitch
forecasts partial pay-down of the facility in 2022 at the
earliest.

Material Uncertainties around eNett Disposal: On May 7, 2020 the
agreed buyer of eNett and Optal, WEX, concluded that the impact of
the pandemic had a material adverse effect on both businesses.
Therefore, WEX considers that it is not required to close the
transaction pursuant to the terms of the sale and purchase
agreement. Travelport, eNett and Optal are currently contesting
WEX's decision and seeking to enforce the contractual rights of the
sale. Fitch understands from management that cash proceeds would be
USD600 million-USD700 million, if the sale is executed to
previously agreed terms.

Ratings Less Contingent on eNett: The trajectory of the rating is
now less defined by the disposal of eNett due to impact of the
disruption to global travel and the deeper uncertainty around its
recovery. Additionally, Travelport has other sources of capital to
support liquidity shortfalls. If the eNett disposal does not occur,
Fitch expects its recovery to be broadly correlated with
Travelport's core business. Due to its relatively modest size it
may not meaningfully impact the trading trajectory of the
consolidated group. Nevertheless, a disposal could help enhance
Travelport's liquidity without incurring further debt.

Intact Business Model: The sector outlook is negative given the
disruption to global travel in 2020, which may be accentuated if
the current disruption results in sustained economic weakness in
2021. Nevertheless, Fitch views Travelport's business model as
intact given the company's entrenched position in the global
distribution system market, albeit highly susceptible to lower
demand over the next four years. Travelport's recovery could
deviate from global travel trends due to customer losses driven by
customers shifting between GDS platforms, or those forced out of
business by the heightened disruption to the travel industry.

DERIVATION SUMMARY

The ratings of Travelport reflect its well-established position in
the travel industry, with a 21% market share in the dominant GDS
segment that has historically provided a high proportion of
recurring revenues. This position gives it an advantage to develop
further technology and data solutions to travel buyers and
providers. Sabre, Inc is the most comparable peer. Sabre had a
higher market share of the GDS segment at 36% in 2018, structurally
higher margins and notably lower leverage.

The two-notch rating difference with Carlson Travel, Inc
(B/Negative) a global operator in business travel management is
primarily Travelport's higher leverage that is set to remain above
10.0x on a FFO leverage basis in the near term, compared with
Carlson's leverage of 7.0x; both businesses will remain highly
sensitive to the disruption in global travel caused by the
pandemic. Substantially higher leverage also explains Travelport's
lower rating than Nets Topco Lux 3 Sarl (B+/Stable) and Latino
Italy (Nexi S.p.A.) (BB/RWN).

KEY ASSUMPTIONS

  - Fitch assumes a net revenue decline of nearly 70% in 2020, with
the lost volumes heavily accentuated by cancellations. Fitch
assumes a moderate recovery in travel demand in 2021 and 2022, with
revenues in 2022 roughly 15% below 2019 levels;

  - Corresponding compression to the EBITDA margin (Fitch-defined)
to -9.4% in 2020, from 19.4% in 2019. In tandem with a recovery in
revenue, Fitch assumes that EBITDA margin recovers towards 2019's
level by 2022, facilitated by the cost savings made in 2020;

  - Capex to be broadly in line with 5% of sales per annum, with
additional spending from 2021 onwards reflecting upgrades in the
platform;

  - Travelport makes payments to travel agencies for their use of
Travelport's platform (typically such agreements last three to five
years). Even though under US GAAP these are capitalised and
subsequently amortised over the life of the contract, Fitch views
the loyalty payments (around USD70 million per year) as an
operating cash outflow that has just been paid in advance.
Therefore, Fitch reverses the capitalised treatment and consider
such expense an operating cost;

  - eNett disposal not factored into the current analysis; and

  - Some capacity to partially pay down the RCF beyond 2021.

KEY RECOVERY RATING ASSUMPTIONS

  - Travelport would be considered a going-concern in bankruptcy
and be reorganised rather than liquidated given the asset-light
business model.

  - Travelport's estimated going-concern post-restructuring EBITDA
of USD386 million represents a discount of 20% to 2019's
Fitch-adjusted EBITDA of USD483 million (including customer loyalty
payments and equity compensation treated as operating costs).

  - Fitch has reduced the distressed enterprise value (EV)/EBITDA
multiple applied to the estimated going- concern
post-restructuring-EBITDA to 5.0x from 5.5x, reflecting medium-term
uncertainties over the delayed recovery in global passenger
numbers, including business travel, and ultimately, a lower
perceived value to distressed buyers. The multiple of 5.0x balances
such uncertainty with Travelport's entrenched position in the GDS
sector.

  - Based on the payment waterfall by priority instrument ranking,
Fitch assumes that the new notes issued outside the restricted
group by Travelport Technologies LLC will be structurally senior to
the rest of the debt in the capital structure given its claim to
the recently transferred intellectual property assets from the
restricted group. Fitch envisages that the total USD500 million,
inclusive of USD280 million of delayed drawn notes, would be
utilised prior to an event of default. Thereafter, both the RCF of
USD150 million (assumed to remain fully drawn in the event of
default), and the USD2.8 billion first-lien term loan rank pari
passu to each other, but subordinated to the new notes issued by
Travelport Technologies LLC.

After deducting 10% for administrative claims, its principal
waterfall analysis generates a ranked recovery for senior secured
creditors in the 'RR4' category, leading to a 'CCC+' instrument
rating, aligned with IDR. The waterfall analysis output percentage
based on current metrics and assumptions is 42%. The USD500 million
second-lien term loan remains at 'RR6' with 0% expected recoveries,
leading to a 'CCC-' instrument rating, two notches below the IDR.

RATING SENSITIVITIES

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

  - FFO leverage returning below 8.5x on a sustained basis;

  - FCF margins trending sustainably towards 1%;

  - FFO interest coverage trending towards 2.0x; and

  - Enhanced internal liquidity cushion supported by partial
pay-down of the RCF.

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

  - A market recovery, diminishing financial flexibility, and
realistic prospects of deleveraging with FFO leverage remaining
above 10.5x by 2022 and accelerated cash outflows;

  - FFO interest cover below 1.2x by 2022; and

  - Sustained negative FCF margin exhausting the remaining
liquidity headroom.

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

Minimal Liquidity Headroom: Travelport benefits from long-dated
debt maturities of first- and second- lien in 2026 and 2027,
respectively. The new notes issued by Travelport Technologies LLC
have a maturity in 2028. Liquidity has been bolstered by the
recently issued notes, as the total proceeds of USD500 million
provide a vital source of liquidity given that the RCF will likely
remain fully drawn into 2022. Fitch understands from management
that the notes' financing documentation permits an incremental
USD500 million, which would be the most likely source of capital to
meet any unforeseen liquidity requirements in the near-term.

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).


TRAVELODGE: Landlords Demand Further Clarity on CVA Proposal
------------------------------------------------------------
Katherine Price at The Caterer reports that a group of Travelodge
landlords has demanded further clarity on Travelodge's company
voluntary arrangement (CVA) or threatened to "join together in
opposition to it".

According to The Caterer, The Travelodge Owners Action group, which
represents the landlords of more than 400 of the group's 580
hotels, said landlords "cannot be expected to accept the provisions
. . . on good faith alone" and is asking Travelodge to disclose the
terms on which its shareholders would make funding available to
support the company.




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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-
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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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