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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 30, 2020, Vol. 21, No. 130

                           Headlines



F R A N C E

FNAC DARTY: Moody's Confirms Ba2 CFR, Outlook Negative
SOCO 1 SAS: Moody's Cuts CFR to B3 & PDR to B3-PD, Outlook Stable


G E O R G I A

GEORGIA GLOBAL UTILITIES: S&P Assigns 'B' ICR, Outlook Positive


G E R M A N Y

WIRECARD AG: Court Appoints Michael Jaffe as Insolvency Manager
WIRECARD AG: Germany to End Contract with FREP After Insolvency


I R E L A N D

AIB GROUP: S&P Assigns 'B+' LT Rating to Trigger AT1 Capital Notes
ALBACORE EURO I: Moody's Gives (P)Ba3 Rating on Class E Notes
CITYJET: High Court Extends Examinership Period
DRYDEN 32: Fitch Cuts Rating on Class E-R Debt to BB-sf
DRYDEN 32: Moody's Cuts Rating on Class F-R Notes to B3

DRYDEN 35: Moody's Cuts Class F-R Notes to Caa1
DRYDEN 52: Moody's Confirms B2 Rating on Class F Notes
DRYDEN XXVII-R: Moody's Cuts Rating on Class F Notes to B3
MACKAY SHIELDS CLO-2: S&P Assigns Prelim. BB- Rating on E Notes
WEATHERFORD INT'L: Discloses Substantial Going Concern Doubt



I T A L Y

ASSET-BACKED EUROPEAN 14: Fitch Affirms Class E Debt at BBsf


K A Z A K H S T A N

SAMRUK-ENERGY JSC: Fitch Affirms BB LongTerm IDRs, Outlook Stable


L U X E M B O U R G

ALGECO INVESTMENTS 2: Fitch Affirms 'B' LT IDR, Outlook Negative
EURASIAN RESOURCES: S&P Affirms 'B-' LT ICR, Outlook Negative
EVERGREEN SKILLS: Moody's Cuts PDR to D-PD on Bankruptcy Filing


N E T H E R L A N D S

JDE PEET'S: S&P Assigns 'BB+' Issuer Credit Rating, Outlook Pos.
SIGMA HOLDCO: Fitch Affirms 'B+' IDR Following EUR375MM Loan Add-on


R U S S I A

MOSCOW MORTGAGE: Moody's Reviews Ba3 Deposit Ratings for Downgrade
NIZHNEKAMSKNEFTEKHIM PJSC: Moody's Reviews Ba3 CFR for Downgrade
[*] RUSSIA: Wave of Bankruptcies Expected When Moratorium Lifted


S P A I N

CAIXA PENEDES 1: S&P Raises Class C RMBS Notes Rating to 'B(sf)'
GRUPO ANTOLIN-IRAUSA: Moody's Confirms B3 CFR, Outlook Negative


S W E D E N

STENA AB: S&P Affirms 'B+' Issuer Credit Rating, Outlook Negative


S W I T Z E R L A N D

GARRETT MOTION: Says Conditions Exist for Going Concern Doubt


U K R A I N E

DTEK RENEWABLES: S&P Puts 'B-' Issuer Credit Rating on Watch Neg.
MARIUPOL CITY: Fitch Assigns 'B' LongTerm IDRs, Outlook Stable


U N I T E D   K I N G D O M

ALBACORE EURO I: S&P Assigns Prelim. BB- Rating on Cl. E Notes
BYRON BURGER: Three Hills to Place Business Into Administration
CINEWORLD GROUP: S&P Affirms 'CCC+' ICR, Off Watch Negative
ELEVATE CREDIT: Goes Into Administration, KPMG Appointed
IRIS MIDCO: S&P Alters Outlook to Negative & Affirms 'B' ICR

NAVIGATOR HOLDINGS: Ernst & Young LLP Raises Going Concern Doubt
W POTTERS: Enters Administration, Owes GBP1.8MM to Creditors

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F R A N C E
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FNAC DARTY: Moody's Confirms Ba2 CFR, Outlook Negative
------------------------------------------------------
Moody's Investors Service has confirmed the Ba2 corporate family
rating and Ba2-PD probability of default rating of France-based
retailer FNAC DARTY SA. Moody's has also confirmed the Ba2 senior
unsecured ratings of Fnac Darty's EUR300 million notes due in 2024
and EUR350 million notes due in 2026. The outlook has been changed
to negative from rating under review.

The rating action concludes the review process initiated on March
27, 2020.

"We have confirmed Fnac Darty's ratings because we think its credit
profile will improve over time following the disruption caused by
the coronavirus epidemic," says Vincent Gusdorf, a Moody's Vice
President -- Senior Credit Officer and lead analyst for Fnac Darty.
"However, we have changed the outlook to negative because the
economic downturn and possible changes in consumers' behaviour
could curb the earnings recovery," Mr. Gusdorf added.

RATINGS RATIONALE

The coronavirus epidemic has depressed Fnac Darty's earnings, but
its credit profile should strengthen in the coming quarters if
confinement and social distancing measures in its key markets
continue to ease. In May, France lifted lockdown measures while
Spain, Switzerland and the Netherlands relaxed travel restrictions.
Fnac Darty said that the coronavirus outbreak depressed its 2020
revenue by EUR400 million and expects its company-adjusted EBIT,
which stood at EUR42 million in the first half of 2019, to be down
by EUR100-120 million in the first half of 2020[1].

Fnac Darty will face difficult operating conditions in the coming
quarters. Moody's forecasts that France's GDP will fall by 10.1% in
2020 before growing by 7.7% in 2021, meaning that the economy will
not have returned to its pre-crisis level by then. Also, the
coronavirus outbreak may prompt consumers to shop less in Fnac
Darty's stores, although the company reported a 10% like-for-like
revenue growth since its stores reopened. That said, Fnac Darty
generates most of its earnings during the fourth quarter.

The rating agency's base-case scenario assumes that Fnac Darty's
(gross) debt/EBITDA ratio will spike to 6.1x in 2020 from 3.8x in
2019, on a Moody's-adjusted basis, before declining towards 4x in
2021.

Fnac Darty's liquidity remains adequate. As of December 31, 2019,
it had EUR996 million of cash on balance sheet and a EUR400 million
undrawn revolving credit facility maturing in 2023, with no
significant debt maturity until then. In April 2020, the company
strengthened its liquidity by signing a EUR500 million
state-guaranteed loan. However, Fnac Darty's operations are
seasonal and characterised by large working capital requirements
ahead of the peak periods of Christmas and New Year.

STRUCTURAL CONSIDERATIONS

The Ba2 rating assigned to the EUR650 million senior unsecured
notes, which is in line with the CFR, reflects their pari passu
position in the capital structure with the EUR200 million unsecured
term loan, the EUR400 million RCF and the EUR500 million
state-guaranteed loan. The senior unsecured notes benefit from the
same guarantor package as the term loan and RCF, which include
upstream guarantees from Fnac Darty's guarantor subsidiaries.
Moody's ranks Darty's UK pension liabilities (legacy pension scheme
from Comet) at the top of the debt waterfall, followed by all
unsecured creditors, together with the trade payables.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects Moody's view that tougher economic
conditions and possible changes in consumers' behaviour may curb
Fnac Darty's earnings recovery, causing its Moody's-adjusted
(gross) debt/EBITDA to remain at or above 4.5x for a prolonged
period of time. While performances have been good since the end of
the lockdown, visibility will remain limited until the Christmas
season, which accounts for a large share of the company's results.

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

Rating upside is limited at this stage. Over time, Moody's could
consider a positive rating action if Fnac Darty sustains a gross
debt/EBITDA ratio below 3.5x and an EBIT/interest ratio at or above
2.5x, on a Moody's-adjusted basis. This would require a material
increase in earnings above the levels achieved before the
coronavirus outbreak. A positive rating action would also require
sustained positive free cash flow generation and a prudent
financial policy.

Conversely, Moody's could downgrade Fnac Darty if it is unable to
reduce its (gross) debt/EBITDA ratio well below 4.5x or if its
EBIT/interest ratio approaches 2.0x, on a Moody's-adjusted basis.
Such a scenario could unfold if depressed consumer demand prevents
the company to bring back its results close to their pre-crisis
level. Deteriorating liquidity, a more aggressive financial policy
or persistently negative FCF could also trigger a rating
downgrade.

COMPANY PROFILE

Fnac Darty is one of the leading European retailers of cultural,
leisure and technological products, with EUR7,349 million of
revenue in 2019. It has a diversified product mix across consumer
electronics (TV, video, audio, photo and phones), household
appliances, editorial products (books, audio, video, gaming, toys)
and services (after-sales, insurance, ticketing and gift cards,
among others). The company has become the market leader in consumer
electronics and leisure products in France after the acquisition of
Darty in 2016.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Retail Industry
published in May 2018.

SOCO 1 SAS: Moody's Cuts CFR to B3 & PDR to B3-PD, Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating to B3 from B2 and the probability of default rating to B3-PD
from B2-PD of Soco 1 SAS. Concurrently, Moody's has downgraded to
B3 from B2 the instrument ratings of the term loan maturing 2024
and of the revolving credit facility issued by Holding Socotec SAS.
The outlook on both entities was changed to stable from negative.

Downgrades:

Issuer: Soco 1 SAS

Corporate Family Rating, Downgraded to B3 from B2

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

Issuer: Holding Socotec SAS

Senior Secured Term Loan, Downgraded to B3 from B2

Senior Secured Revolving Credit Facility, Downgraded to B3 from B2

Outlook Actions:

Issuer: Holding Socotec SAS

Outlook, Changed To Stable From Negative

Issuer: Soco 1 SAS

Outlook, Changed To Stable From Negative

RATINGS RATIONALE

The rapid spread of the coronavirus outbreak, deteriorating global
economic outlook, low oil prices and high asset price volatility
have created an unprecedented credit shock across a range of
sectors and regions. Moody's regards the coronavirus outbreak as a
social risk under its ESG framework, given the substantial
implications for public health and safety. Demand for services
provided by the testing, inspection, and certification industry is
linked to a range of short- and long-term drivers, including the
underlying levels of economic activity, that have been
significantly impacted by the outbreak.

Its rating action reflects the following drivers:

  - Weakening of Socotec's credit metrics expected in 2020 as the
company has been materially impacted by the lockdown restrictions
following the coronavirus outbreak and notably the closure of
construction sites in France.

  - Weakening liquidity position because of negative free cash flow
(FCF) projected by Moody's for 2020 and weaker covenant headroom
especially by end of September but still at adequate level thanks
to the good performance in collection of receivables so far and
EUR180 million cash on balance end of May (including the full EUR90
million RCF drawing).

  - Expected recovery in 2021 supported by a certain degree of
resilience in Socotec's business model since the demand is driven
by obligation on the customer's side to comply with regulation, its
customer base is large and diversified, its geographic
diversification has improved since 2016. Moody's estimates that
around 80% of the revenue base is linked to activities deemed to be
resilient in a downturn either because they are services provided
on existing assets or because the company has a good backlog
visibility for example in infrastructures.

  - Risk that demand will remain below 2019 level for a prolonged
period in the context of a likely economic recession which will
have a negative impact on the services performed on new build in
construction in France and the US representing 20% of the company's
2019 revenue base.

The ratings continue to reflect (1) the company's leading position
in niche markets (asset integrity in construction and
infrastructure sectors); (2) its large customer base with limited
concentration and high retention rates; (3) its good track record
of growth through the cycle; (4) its major transformation plan
mostly completed in 2019, which should support further margin
improvements; and (5) positive long-term growth prospects of the
TIC market.

The ratings are constrained by (1) Socotec's high leverage; (2) the
expectation that future debt-financed bolt-on acquisitions in the
context of a fragmented market may limit deleveraging; (3) its
still-high concentration in France and exposure to the cyclical
nature of the construction market; and (4) the competitive nature
of the TIC market, with large global and regional competitors,
partially offset by high barriers to entry.

OUTLOOK

The stable outlook reflects Moody's expectation that the company's
business model will remain resilient through the next 12-18 months,
with the negative pressure on its main end markets partially offset
by the fact that the demand has a certain degree of resilience
since it is driven by obligation on the customer's side to comply
with regulation. The stable outlook also assumes that liquidity
will remain adequate and that any risk of covenant breach will be
proactively addressed and that shareholders remain supportive.
While Moody's projects credit metrics in 2020 to be materially
below 2019 level, the stable outlook factors in the expectation of
a recovery in 2021.

LIQUIDITY

Socotec's liquidity is adequate supported by EUR180 million of cash
on balance at end May 2020 including the full drawing of the EUR90
million RCF and long dated maturities with the RCF maturing in 2023
and the term loan in 2024. Availability under the RCF is subject to
a springing net leverage covenant (8.3x flat), tested when it is at
least 40% drawn.

Moody's forecasts revenue to decrease by 10% in 2020 from EUR910
million in 2019 (pro forma full year effect of acquisitions) and
FCF to turn negative at minus EUR20 million for 2020 which will
weight on the company's liquidity position. Moody's notes that the
high cash balance end of May is the result of a working capital
release so far thanks to good management of collection of
receivables but also the postponement of some working capital trade
payable, tax and social charges which will be paid later this year.
As activity ramps up during the rest of the year, Moody's expects
working capital to reverse.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety. Socotec's ratings factor in its private equity
ownership, its financial policy, which is tolerant of high
leverage, and its history of pursuing growth via debt-funded
acquisitions.

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

Upward rating pressure could develop if (1) Moody's-adjusted
leverage improves below 6.0x on a sustainable basis, (2) Moody's
adjusted FCF/debt improves towards 5% on a sustainable basis and
(3) the company pursues acquisitions in a prudent manner and
successfully integrates the targets into the group.

Downward rating pressure could develop if the company (1) is not
able to grow EBITDA sustainably and/or reduce leverage in 2021
onwards, (2) experiences weakness in its core segments, over a
prolonged period of time, (3) FCF is negative on a sustained basis
and/or liquidity weakens or (4) the company embarks on additional
significant debt-funded acquisitions.

STRUCTURAL CONSIDERATIONS

Socotec's PDR is B3-PD, at the same level as the CFR, which
reflects Moody's standard assumption of a 50% family recovery rate
for bank facilities with a springing covenant. The term loans and
the RCF are rated in line with the CFR at B3 reflecting the first
lien only structure and pari passu ranking of the facilities. The
company has the ability to incur additional debt subject to a net
leverage test below 5.0x plus a general basket of the greater of
EUR50 million and 75% EBITDA.

COMPANY PROFILE

Socotec is a player in the Testing Inspection Certification market
with a strong positioning in France and presence in other European
countries (notably the UK, Germany and Italy) and the US. The
company provides services aiming at ensuring the integrity and
performance of its clients' assets, the people's safety and the
compliance with regulatory standards in force relating to quality,
sanitation, health, safety and the environment.




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G E O R G I A
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GEORGIA GLOBAL UTILITIES: S&P Assigns 'B' ICR, Outlook Positive
---------------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issuer credit rating
to Georgia Global Utilities JSC (GGU).

GGU is a relatively small private water and electricity utility,
established in Georgia where it has a healthy position.

GGU's EBITDA stands at about Georgian lari (GEL) 120 million-GEL130
million, funds from operations (FFO) at GEL80 million-GEL85
million, and debt at GEL653 million, based on pro forma 2019
accounts under International Financial Reporting Standards (IFRS).
About 55% of the group's EBITDA comes from its regulated water
utility business and about 45% from renewable electricity
generation, mostly hydropower. The company has 240 megawatts [MW]
of installed capacity, making it relatively small compared with
other rated utilities, and limited geographic diversity. It has yet
to develop a track record as a stand-alone entity--it was created
in 2020 through the merger of existing water and electricity
operations. GGU generated only 4.8% of Georgia's electricity on a
pro forma basis in 2019. Its water leakage rate remains high versus
other rated utilities, at 40.4% in 2019, but it is investing to
reduce this. The leakage rate was 45.1% in 2017. GGU faces
relatively high country risk in Georgia, including a weak domestic
financial system, relatively low average income levels, an evolving
regulatory framework, and a volatile exchange rate.

GGU is well positioned in its home market as a monopoly provider of
essential water services for Georgia's capital city Tbilisi and
neighboring Mtskheta and Rustavi.

It serves about 1.4 million of Georgia's total population of about
4 million inhabitants. GGU operates nine generating plants across
the country, and also benefits from the inherently low marginal
costs and green nature of hydropower electricity generation.
Georgia has a structural deficit in energy generation and the
government's policy is to support investments in utilities and
infrastructure. Therefore, prices for domestic hydropower sales to
direct customers and under power purchase agreements (PPAs) with
the government are favorable. Electricity revenue, which is about
30% of total revenue, is denominated in U.S. dollars.

S&P said, "We expect GGU to benefit from an increase in the water
tariff, but the exact terms of Georgia's next water regulatory
period, which will start in 2021, have yet to be decided.

"We view Georgia's water tariff regulation as generally supportive,
but evolving. The track record is limited, given the first
regulatory period started only in 2018. As a result, we cannot rule
out additional fine-tuning and changes.

"We understand that Georgia aims to harmonize its utility
regulations with EU regulations."

The regulatory framework allows the company to cover its operating
expenditure (opex) and capital expenditure (capex). In the first
year of the regulatory period (2018-2020), GGU's water revenue
increased by 14% (23.8% tariff increase for the population and a
0.4% decrease for legal entities), which enabled GGU to invest
heavily in water and electricity assets in the current regulatory
period. The next tariff revision is expected in 2021. S&P said, "We
expect the weighted-average water tariff to increase by at least
15%, and the regulated asset base (RAB) to grow by 23.5%, causing
water revenue to grow by 24% versus 2020. The regulator has not yet
established the actual parameters, however. We also consider that
high nominal RAB should be read in the context of Georgia's high
interest rate environment and the company's high investment
needs."

Recovery in hydrology conditions, rehabilitation of existing hydro
power plants, and further increases in electricity prices should
support EBITDA in 2021 and thereafter, but uncertainty remains.

S&P said, "Under our base case, we expect GGU's EBITDA from the
hydropower business to increase by about 30% in 2021, because of
both volumes and prices. Nevertheless, given Georgia's emerging
market environment and fundamentally volatile hydrological
conditions, we could see volatile future performance. We anticipate
that the company's annual electricity generation could increase to
450-470 gigawatt hours (GWh) in 2021 from the current 390 GWh-400
GWh, and total operational installed capacity to 240 MW from 221 MW
after the repair of existing capacity.

"Although 2017-2019 were dry years in Georgia, we assume water
levels will recover closer to historical average levels from 2020.

"We also expect GGU's weighted-average electricity price to
increase from the current 5.0-5.1 U.S. cents/kWh to 5.5 U.S.
cents/kWh in 2021 and to fluctuate around 5.3 U.S. cents-5.5 U.S.
cents thereafter. GGU benefits from a structural deficit in
Georgia's electricity market. In addition, its main industrial
customers' electricity consumption has not been materially affected
by COVID-19 restriction measures. Finally, GGU sells about 40% of
its total electricity via PPAs with electricity market operators
(ESCO) that are fully owned by the government; the PPAs provide
favorable pricing terms and U.S. dollar-denominated pricing.

"Although the duration of the COVID-19 pandemic is highly
uncertain, we currently expect it to have limited impact on GGU's
revenue or working capital outflow in 2020."

The full impact of the pandemic on macroeconomic conditions is not
yet clear, but we believe GGU is unlikely to face any material
pressures on revenue and working capital. Water consumption
patterns are generally stable, and under GGU's agreement with the
Tbilisi electricity grids, any customers who fail to pay for water
services to GGU will be switched off from the electricity supply.
S&P said, "In addition, we anticipate that delays in payment for
electricity will not cause any material working capital outflow,
because GGU sells about 40% of total electricity via PPAs with
ESCO, and the remaining 60% under direct agreements with industrial
customers, most of which are not facing any severe business
disruption during the pandemic. Despite volatility in the GEL/US$
exchange rate, GGU benefits from US$-denominated electricity sales
under PPA agreements and direct contracts with industrial
customers, which provide about 30%-35% of total revenue. We assume
the dollarized sales will hold in line with the contracted terms.
However, in the longer term, depending on macroeconomic conditions
in the country, we cannot rule out pressure to renegotiate the
terms of the contract."

S&P expects GGU's leverage to increase in 2020, after the merger
between the existing water and electricity operations.

Previously, renewable assets were under GGU's management, but owned
by GRPC JSC (a subsidiary of Georgia Capital). In 2020, Georgian
Global Utilities Ltd. (GGU Ltd.) was reorganized into Georgia
Global Utilities JSC, which consolidated all GGU Ltd.'s assets.
Along with operating assets, GRPC's total gross debt of about
GEL300 million was also moved to GGU JSC. Similar to other Georgian
peers, in our analysis, S&P focuses on gross debt, given GGU's weak
business risk profile. Therefore, it expects FFO to debt to decline
to 6%-7% in 2020, from 12%-14% in 2019, pro forma the merger.

GGU's FFO to debt could increase above our 12% threshold in
2021-2022, thanks to higher cash flow and moderate capex.

S&P said, "We forecast that it will be 13%-15% during 2021-2022,
based on our growth expectations for water tariffs, volumes of
electricity generated, and electricity prices. Capex is also likely
to moderate to GEL80 million-GEL90 million, including maintenance
and modernization of water infrastructure (around 60% of total
capex), connections of new customers (around 20%), and investments
in electricity assets. However, we see significant potential
volatility in future metrics, and note that financial headroom in
our base case is relatively low.

"We expect GGU's dividend to be moderate, despite the recent
downgrade of the parent, Georgia Capital.

"We view GGU as a large, but nonstrategic, subsidiary of Georgia
Capital. On April 3, 2020, we downgraded Georgia Capital to 'B'
from 'B+' because of its higher loan-to-value ratio and lower
dividend income. GGU is a large investment for Georgia Capital and
has historically been one of the two main dividend contributors to
Georgia Capital (the other being Bank of Georgia). This month, the
National Bank of Georgia required commercial banks, including Bank
of Georgia, to increase their loan-loss reserves, causing them to
report decreased capital adequacy ratios and limiting their ability
to distribute dividends. This effectively made GGU the biggest
dividend contributor to Georgia Capital. Historically, it has paid
GEL20 million-GEL30 million. We expect dividends to remain flat at
around GEL20 million over 2020-2023, based on the group
restructuring in 2020, COVID-19 implications, and Georgia Capital's
lack of near-term large maturities. We view GGU as very autonomous
in its operations and strategy within Georgia Capital, but we will
continue to monitor to what extent GGU can remain insulated from
its shareholder in the future.

"The positive outlook indicates that we could upgrade the company
if we saw GGU's credit ratios strengthening sufficiently, with FFO
to debt comfortably above 12% and sufficient insulation from
Georgia Capital. This will depend on actual water tariffs for the
next regulatory period, and on how severe an impact COVID-19 has on
Georgia and its electricity market. Specifically, we will review
the effect on the company's realized electricity generation
volumes. It will also depend on a sufficient track record of GGU's
independence from the parent company in terms of decision-making,
financial reporting, and dividends."

S&P would revise the outlook to stable if a combination of the
following conditions were met:

-- The group experiences higher volatility on earnings than
expected, mainly stemming from very poor hydro conditions,
deteriorating conditions in Georgia (such as materially weakening
demand or weakening local currency), or negative interventions by
the regulator or the parent;

-- FFO to debt falls materially below 10% on average, without any
prospects for near-term recovery;

-- Pressure on liquidity increases; and

-- S&P observes a more aggressive financial policy, resulting in
weaker credit metrics.

S&P could raise the ratings on GGU if its liquidity remains
adequate and it meets a combination of the following conditions:

-- A favorable actual regulatory outcome for the water tariff and
increasing electricity prices and volumes allows FFO to debt to
improve to above 12%, with substantial headroom, for a prolonged
period;

-- An established track record of predictability and visibility of
the Georgian regulatory framework; and

-- GGU being sufficiently insulated from its parent Georgia
Capital.




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G E R M A N Y
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WIRECARD AG: Court Appoints Michael Jaffe as Insolvency Manager
---------------------------------------------------------------
Hans Seidensteucker at Reuters reports that a Munich court on June
29 said that it had appointed Michael Jaffe to manage the
insolvency of Wirecard.

The German payments company filed for insolvency last week, saying
its survival as a going concern was "not assured".


WIRECARD AG: Germany to End Contract with FREP After Insolvency
---------------------------------------------------------------
Markus Wacket at Reuters reports that the German government plans
to terminate its contract with the country's accounting watchdog
after payments company Wirecard filed for insolvency in one of
Germany's biggest fraud scandals, a government official said on
June 28.

According to Reuters, Bild am Sonntag newspaper reported earlier on
June 28 that the Justice and Finance Ministries would on June 29
cut ties with the Financial Reporting Enforcement Panel (FREP), a
quasi-private entity that supervises the financial statements of
listed firms.

Wirecard collapsed on June 25 owing creditors almost US$4 billion
after disclosing a hole in its books that its auditor EY said was
the result of a sophisticated global fraud, Reuters relates.

The scandal has put the spotlight on Germany's financial regulator
BaFin, whose investigations into misconduct partly rely on FREP and
is facing accusations of failing to supervise the financial
technology company, Reuters notes.




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AIB GROUP: S&P Assigns 'B+' LT Rating to Trigger AT1 Capital Notes
------------------------------------------------------------------
S&P Global Ratings said that it has assigned its 'B+' long-term
issue rating to the high-capital trigger Additional Tier 1 (AT1)
perpetual capital notes issued by AIB Group PLC (AIB;
BBB-/Negative/A-3). This instrument aims to replace the existing
AT1 notes issued in 2015 by the group's operating bank, Allied
Irish Banks (BBB+/Negative/A-2). Subject to normal market
conditions, it expects the bank to call these notes in full by
end-2020.

The 'B+' issue rating stands four notches below its 'BBB-' issuer
credit rating on AIB, reflecting:

-- The notes' contractual subordination (one notch);

-- The notes' discretionary coupon payments and regulatory
consideration as Tier 1 capital (two notches); and

-- The existence of a contractual write-down clause (one extra
notch).

Differently from other peers, S&P has not deducted the notch
related to the regulatory capital trigger. This is because, at this
stage, S&P believes that AIB Group PLC will remain able and willing
to maintain its fully loaded CET1 above 14% in the medium term,
thereby sustainably granting a capital buffer, over the AT1
conversion trigger, of at least 700 basis points (bps).

As of March 31, 2020, the bank reported a pro forma fully loaded
CET1 ratio of 16.2%, well above the 11.0% regulatory capital
requirement for 2020 (12.1% including the countercyclical buffer,
temporarily suspended by the Irish regulatory authority amid the
COVID-19 pandemic).

S&P said, "Such a high capital level supports our view that AIB
will be able to maintain its CET1 comfortably above 14% over the
next 12-24 months, although we expect that this ratio will
inevitably decrease over the same period.

"If the macroeconomic environment turned out more difficult than we
currently expect, or the bank was more financially affected by the
COVID-19-related macroeconomic shock than we anticipate at this
stage, we would still expect AIB to remain committed to a 14%
medium-term CET1 ratio. This is because one of the underlying
drivers of this capital target--namely the excess capital
distribution that AIB is willing to return to shareholders--remains
discretionary in nature. In our view, this provides the bank
sufficient headroom to absorb losses and also backs up its
expansionary activity over the next 12-24 months.

"However, if we observed either AIB's diminished willingness or
compromised ability to maintain a 700 basis point buffer above its
AT1 high-trigger, downward rating pressure could build.

"We have assigned intermediate equity content to the newly issued
securities. This reflects our understanding that the notes are
perpetual, regulatory Tier 1 capital instruments and have no
step-up clauses. The notes can absorb losses on a going-concern
basis through the non-payment of coupons, which are fully
discretionary.

"The issuance does not materially alter our forecast of the group's
capitalization as the notes are partly aimed at refinancing
existing AT1 notes. As such, we expect the risk-adjusted capital
ratio to average 11.5%-12.5% by end-2022."

S&P's issuer credit ratings on AIB Group PLC and Allied Irish Banks
remain unchanged.


ALBACORE EURO I: Moody's Gives (P)Ba3 Rating on Class E Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by AlbaCore
EURO CLO I Designated Activity Company:

EUR123,000,000 Class A Senior Secured Floating Rate Notes due 2031,
Assigned (P)Aaa (sf)

EUR31,000,000 Class B Senior Secured Floating Rate Notes due 2031,
Assigned (P)Aa2 (sf)

EUR15,000,000 Class C Senior Secured Deferrable Floating Rate Notes
due 2031, Assigned (P)A2 (sf)

EUR16,750,000 Class D Senior Secured Deferrable Floating Rate Notes
due 2031, Assigned (P)Baa3 (sf)

EUR13,200,000 Class E Senior Secured Deferrable Floating Rate Notes
due 2031, Assigned (P)Ba3 (sf)

RATINGS RATIONALE

The rationale for the rating is based on a consideration of the
risks associated with the CLO's portfolio and structure as
described in its methodology.

The Issuer is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured obligations and up to 10%
of the portfolio may consist of senior unsecured obligations,
second-lien loans, mezzanine obligations and high yield bonds. The
portfolio is expected to be 85% ramped as of the closing date and
to comprise of predominantly corporate loans to obligors domiciled
in Western Europe. The remainder of the portfolio will be acquired
during the 6-month ramp-up period in compliance with the portfolio
guidelines.

AlbaCore Capital LLP will manage the CLO. It will direct the
selection, acquisition and disposition of collateral on behalf of
the Issuer and may engage in trading activity, including
discretionary trading, during the transaction's 1-year reinvestment
period. Thereafter, subject to certain restrictions, purchases are
permitted using principal proceeds from unscheduled principal
payments and proceeds from sales of credit risk obligations or
credit improved obligations.

In addition to the five classes of notes rated by Moody's, the
Issuer will issue EUR33.7M of Subordinated Notes which are not
rated.

The transaction incorporates interest and par coverage tests which,
if triggered, divert interest and principal proceeds to pay down
the notes in order of seniority.

Its analysis has considered the effect of the coronavirus outbreak
on the European 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. Moody's 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.

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

The rated notes' performance is subject to uncertainty. The notes'
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change. The collateral manager's investment decisions and
management of the transaction will also affect the notes'
performance.

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3 of
the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in March 2019.

Moody's used the following base-case modeling assumptions:

Par Amount: EUR230,000,000

Diversity Score: 39*

Weighted Average Rating Factor: 3125

Weighted Average Spread: 3.65%

Weighted Average Coupon: 4.50%

Weighted Average Recovery Rate: 43.0%

Weighted Average Life: 6.5 years

*The covenanted base case diversity score is 40, however Moody's
has assumed a diversity score of 39 as the deal documentation
allows for the diversity score to be rounded up to the nearest
whole number whereas usual convention is to round down to the
nearest whole number.

Moody's has addressed the potential exposure to obligors domiciled
in countries with local currency ceiling (LCC) of A1 or below. As
per the portfolio constraints and eligibility criteria, exposures
to countries with LCC of A1 to A3 cannot exceed 10% and obligors
cannot be domiciled in countries with LCC below A3.

CITYJET: High Court Extends Examinership Period
-----------------------------------------------
Ingrid Miley at RTE reports that the High Court has extended the
examinership period protecting regional airline CityJet from its
creditors for a further 30 day, after examiner Kieran Wallace of
KPMG said he was confident a scheme of arrangement could be put to
creditors.

According to RTE, Mr. Wallace now has until July 25 to formulate
that scheme of arrangement with CityJet's creditors in a bid to
ensure the survival of the airline, which currently has debts of
over half a billion euro.

The court heard that the examinership was progressing, and there
had been a positive engagement with a proposed investor in the
airline, RTE relates.

Counsel for the examiner, James Doherty, SC, acknowledged that
there would be redundancies, but said the number of job losses had
not been put before the court as negotiations were ongoing, RTE
notes.

CityJet operates under a "wet-leasing" model, whereby it provides
serviced aircraft and crews to operate routes on behalf of other
airlines, including SAS, RTE discloses.

Prior to the crisis the airline employed 1,175 people, 417 of whom
are based in Dublin.

When it sought the protection of the courts in April, CityJet
claimed it was insolvent due to financial difficulties exacerbated
by the grounding of its fleet of 30 aircraft due to the
coronavirus, RTE recounts.

According to RTE, it said the pandemic had interrupted a planned
merger with another airline and a proposed private restructure of
the country.

The airline's creditors include the Triangle Group, firms involved
in the leasing of aircraft, Investec, the Revenue Commissioners, as
well as debts owed to related companies, RTE states.


DRYDEN 32: Fitch Cuts Rating on Class E-R Debt to BB-sf
-------------------------------------------------------
Fitch Ratings has taken rating actions on Dryden 32 Euro CLO 2014
B.V.

Dryden 32 Euro CLO 2014 B.V.      

  - Class A-1-R XS1864488553; LT AAAsf; Affirmed

  - Class A-2-R XS1864488801; LT AAAsf; Affirmed

  - Class B-1-R XS1864489106; LT AAsf; Affirmed

  - Class B-2-R XS1864489445; LT AAsf; Affirmed

  - Class C-1-R XS1864489874; LT Asf; Affirmed

  - Class C-2-R XS1864913196; LT Asf; Affirmed

  - Class D-1-R XS1864490294; LT BBBsf; Affirmed

  - Class D-2-R XS1864913519; LT BBBsf; Affirmed

  - Class E-R XS1864490534; LT BB-sf; Downgrade

  - Class F-R XS1864490617 LT B-sf; Rating Watch Maintained

  - Class X XS1864488470; LT AAAsf; Affirmed

TRANSACTION SUMMARY

Dryden 32 Euro CLO 2014 B.V. is a cash flow CLO, which closed in
July 2014. The portfolio is actively managed by PGIM Limited, and
the asset portfolio mostly comprises European leveraged loans and
bonds.

KEY RATING DRIVERS

Portfolio Performance Deterioration: The downgrade reflects the
deterioration in the portfolio as a result of the negative rating
migration of the underlying assets in light of the coronavirus
pandemic. In addition, as per the trustee report dated May 31,
2020, the aggregate collateral balance is below par by 67bp
(assuming defaulted assets at zero principal balance). The
trustee-reported Fitch weighted average rating factor of 35.94 is
in breach of its test, and the Fitch-calculated WARF of the
portfolio increased to 36.30 on May 31, 2020.

'B'/'B-' Category Portfolio Credit Quality: Fitch assesses the
average credit quality of obligors to be in the 'B'/'B-' category.
The Fitch-calculated 'CCC' and below category assets (including
non-rated assets) represented 10.22% of the portfolio on May 31,
2020, which was over the 7.50% limit.

High Recovery Expectations: 91.07% of the portfolio comprises
senior secured obligations. The CLO does not consider cash in the
calculation of the senior secured portfolio limitation. If cash is
included, the senior secured test is within the 92.50% threshold.
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
59.74%.

Portfolio Composition: The portfolio is well diversified across
obligors, countries and industries. Exposure to the top 10 obligors
is 21.45% and no obligor represents more than 3.00% of the
portfolio balance. The largest industry is business services at
16.26% of the portfolio balance, followed by chemicals at 11.61%
and retail at 10.35%.

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
scenarios, as outlined in Fitch's criteria.

Fitch also tested the current portfolio with a coronavirus
sensitivity analysis to estimate the resilience of the notes'
ratings. The coronavirus sensitivity analysis was only based on the
stable interest rate scenario including all default timing
scenarios.

Deviation from Model-Implied Rating: The model-implied rating for
the class E and F notes is two notches below the current ratings.
Fitch has deviated from the model-implied ratings on both classes
as these were driven by the back-loaded default timing scenario
only. Fitch has downgraded the class E by one notch to the lowest
rating in the rating category. These ratings are in line with the
majority of Fitch-rated EMEA CLOs. Both classes have been placed on
Rating Watch Negative as there are shortfalls even at the updated
rating and in the coronavirus sensitivity scenario described
below.

When conducting cash flow analysis, Fitch's model first projects
the portfolio's 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 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.

RATING SENSITIVITIES

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

At closing, Fitch uses a standardised stress portfolio (Fitch's
Stress Portfolio) 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 Stress Portfolio assumed at closing, an upgrade
of the notes during the reinvestment period is unlikely. This is
because the portfolio credit quality may still deteriorate, not
only by natural credit migration, but also because of reinvestment.
After the end of the reinvestment period, upgrades may occur in the
event of better-than-expected portfolio credit quality and deal
performance, leading to higher credit enhancement to the notes and
more 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 the notes' credit
enhancement 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 disruption become apparent
for other vulnerable sectors, loan ratings in those sectors would
al so come under pressure. Fitch will update the sensitivity
scenarios in line with the views of Fitch's leveraged finance
team.

Coronavirus Baseline Scenario Impact: Fitch carried out a
sensitivity analysis on the target portfolio to envisage the corona
virus 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.

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 the agency's 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.


DRYDEN 32: Moody's Cuts Rating on Class F-R Notes to B3
-------------------------------------------------------
Moody's Investors Service has downgraded the ratings on the
following notes issued by Dryden 32 Euro CLO 2014 B.V.:

EUR17,500,000 Class D-1-R Mezzanine Secured Deferrable Floating
Rate Notes due 2031, Downgraded to Baa3 (sf); previously on Jun 3,
2020 Baa2 (sf) Placed Under Review for Possible Downgrade

EUR5,000,000 Class D-2-R Mezzanine Secured Deferrable Fixed Rate
Notes due 2031, Downgraded to Baa3 (sf); previously on Jun 3, 2020
Baa2 (sf) Placed Under Review for Possible Downgrade

EUR30,500,000 Class E-R Mezzanine Secured Deferrable Floating Rate
Notes due 2031, Downgraded to Ba3 (sf); previously on Jun 3, 2020
Ba2 (sf) Placed Under Review for Possible Downgrade

EUR12,500,000 Class F-R Mezzanine Secured Deferrable Floating Rate
Notes due 2031, Downgraded to B3 (sf); previously on Jun 3, 2020 B2
(sf) Placed Under Review for Possible Downgrade

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

EUR5,000,000 (current outstanding amount EUR833,333.35) Class X
Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf);
previously on Aug 23, 2018 Definitive Rating Assigned Aaa (sf)

EUR230,945,000 Class A-1-R Senior Secured Floating Rate Notes due
2031, Affirmed Aaa (sf); previously on Aug 23, 2018 Definitive
Rating Assigned Aaa (sf)

EUR12,155,000 Class A-2-R Senior Secured Fixed Rate Notes due 2031,
Affirmed Aaa (sf); previously on Aug 23, 2018 Definitive Rating
Assigned Aaa (sf)

EUR16,950,000 Class B-1-R Senior Secured Floating Rate Notes due
2031, Affirmed Aa2 (sf); previously on Aug 23, 2018 Definitive
Rating Assigned Aa2 (sf)

EUR24,050,000 Class B-2-R Senior Secured Fixed Rate Notes due 2031,
Affirmed Aa2 (sf); previously on Aug 23, 2018 Assigned Aa2 (sf)

EUR12,275,000 Class C-1-R Mezzanine Secured Deferrable Floating
Rate Notes due 2031, Affirmed A2 (sf); previously on Aug 23, 2018
Definitive Rating Assigned A2 (sf)

EUR12,225,000 Class C-2-R Mezzanine Secured Deferrable Fixed Rate
Notes due 2031, Affirmed A2 (sf); previously on Aug 23, 2018
Assigned A2 (sf)

Dryden 32 Euro CLO 2014 B.V. is a cash-flow CLO transaction, issued
in July 2014 and refinanced in August 2018, backed by a portfolio
of mostly high-yield senior secured European loans. The portfolio
is managed by PGIM Limited. The transaction's reinvestment period
will end in November 2022.

RATINGS RATIONALE

Its action concludes the rating review on the Classes D-1-R, D-2-R,
E-R and F-R notes initiated on June 3, 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 of the
portfolio has deteriorated as reflected in the increase in Weighted
Average Rating Factor and of the proportion of securities from
issuers with ratings of Caa1 or lower. According to the trustee
reports the WARF has deteriorated by 10% to 3523[1] in May 2020
from 3204[2] in March 2020. Securities with ratings of Caa1 or
lower currently make up approximately 7.6% of the underlying
portfolio. In addition, the over-collateralisation levels have
marginally weakened across the capital structure. According to the
trustee report dated May 2020 the Class A/B, Class C, Class D,
Class E OC and Class F OC ratios are reported at 140.5% [1],
129.3%[1], 120.5%[1], 110.4%[1] and 106.7%[1] compared to March
2020 levels of 141.6%[2], 130.3%[2], 121.5%[2], 111.2%[2] and
107.5%[2], respectively.

Moody's notes that 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,
Weighted Average Spread and Weighted Average Life. However, the
WARF test is not passing as per latest trustee report. Furthermore,
the portfolio contains two defaulted assets, representing 1.1% of
the aggregate principal balance.

As a result of this deterioration, Moody's downgraded the Class
D-1-R, D-2-R, E-R and F-R notes. Moody's however concluded that the
expected losses on remaining rated notes remain consistent with
their current ratings as the structural features of the transaction
mitigate the collateral credit quality deterioration. Consequently,
Moody's has affirmed the ratings on the Class X, A-1-R, A-2-R,
B-1-R, B-2-R, C-1-R and C-2-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 EUR399.1 million,
defaulted assets of EUR4.5 million, a weighted average default
probability of 30.4% (consistent with a WARF of 3647 over a
weighted average life of 5.98 years), a weighted average recovery
rate upon default of 42.6% for a Aaa liability target rating, a
diversity score of 51, a weighted average spread of 3.90%, and a
weighted average coupon of 5.32%.

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. Moody's 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:

Its rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank and swap providers,
using the methodology "Moody's Approach to Assessing Counterparty
Risks in Structured Finance" published in June 2020. Moody's
concluded the ratings of the notes are not constrained by these
risks.

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 behaviour;
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.

  - 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.

DRYDEN 35: Moody's Cuts Class F-R Notes to Caa1
-----------------------------------------------
Moody's Investors Service has downgraded the ratings on the
following notes issued by Dryden 35 Euro CLO 2014 B.V.

EUR15,100,000 Class C-1A-R Mezzanine Secured Deferrable Floating
Rate Notes due 2033, Downgraded to A3 (sf); previously on Jan 31,
2020 Definitive Rating Assigned A2 (sf)

EUR10,000,000 Class C-1B-R Mezzanine Secured Deferrable Fixed Rate
Notes due 2033, Downgraded to A3 (sf); previously on Jan 31, 2020
Definitive Rating Assigned A2 (sf)

EUR28,100,000 Class D-R Mezzanine Secured Deferrable Floating Rate
Notes due 2033, Downgraded to Ba1 (sf); previously on Jun 3, 2020
Baa3 (sf) Placed Under Review for Possible Downgrade

EUR12,800,000 Class F-R Mezzanine Secured Deferrable Floating Rate
Notes due 2033, Downgraded to Caa1 (sf); previously on Jun 3, 2020
B3 (sf) Placed Under Review for Possible Downgrade

Moody's has also confirmed the rating on the following notes:

EUR24,700,000 Class E-R Mezzanine Secured Deferrable Floating Rate
Notes due 2033, Confirmed at Ba3 (sf); previously on Jun 3, 2020
Ba3 (sf) Placed Under Review for Possible Downgrade

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

EUR3,000,000 Class X Senior Secured Floating Rate Notes due 2033,
Affirmed Aaa (sf); previously on Jan 31, 2020 Definitive Rating
Assigned Aaa (sf)

EUR261,400,000 Class A-R Senior Secured Floating Rate Notes due
2033, Affirmed Aaa (sf); previously on Jan 31, 2020 Definitive
Rating Assigned Aaa (sf)

EUR22,100,000 Class B-1A-R Senior Secured Floating Rate Notes due
2033, Affirmed Aa2 (sf); previously on Jan 31, 2020 Definitive
Rating Assigned Aa2 (sf)

EUR20,000,000 Class B-1B-R Senior Secured Fixed Rate Notes due
2033, Affirmed Aa2 (sf); previously on Jan 31, 2020 Definitive
Rating Assigned Aa2 (sf)

Dryden 35 Euro CLO 2014 B.V., issued in March 2015 and reset in
January 2020, is a collateralised loan obligation (CLO) backed by a
portfolio of mostly high-yield senior secured European loans. The
portfolio is managed by PGIM Limited. The transaction's
reinvestment period will end in July 2024.

RATINGS RATIONALE

Its action concludes the rating review on the Classes D-R, E-R and
F-R notes initiated on 3 June 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, "Moody's places
ratings on 234 securities from 77 EMEA CLOs on review for possible
downgrade".

Stemming from the coronavirus outbreak, the credit quality has
deteriorated as reflected in the increase in Weighted Average
Rating Factor and of the proportion of securities from issuers with
ratings of Caa1 (sf) or lower. WARF has worsened by about 19.0% to
3642[1] from 3060[2] in February 2020 and now is significantly
above the reported covenant of 3101 [1]. Securities with default
probability ratings of Caa1 (sf) or lower have increased to 9.4%
[1] from 1.1% [2] in February 2020 triggering the application of an
over-collateralisation haircut to the computation of the OC tests.
Consequently, the OC levels have weakened across the capital
structure. According to the trustee report dated May 2020 the Class
A/B, Class C, Class D, Class E and Class F OC ratios are reported
at 137.5%[1], 127.0%[1], 117.0%[1], 109.4%[1] and 105.9%[1]
compared to February 2020 levels of 139.0%[2], 128.5%[2],
118.5%[2], 110.9%[2] and 107.3%[2], respectively. Moody's notes
that none of the OC tests are currently in breach. The Diversity
Score is 49 [1] and in breach of the reported covenant of 51[1] but
the transaction remains in compliance with the following other
collateral quality tests: Weighted Average Recovery Rate, Weighted
Average Spread, Weighted Average Fixed Coupon and Weighted Average
Life.

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 EUR425.2 million,
a weighted average default probability of 30.6% (consistent with a
WARF of 3761 over a weighted average life of 5.7 years), a weighted
average recovery rate upon default of 43.1% for a Aaa liability
target rating, a diversity score of 48, a weighted average spread
of 3.75% and a weighted average coupon of 5.0%.

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. Moody's 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:

Its rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank and swap providers,
using the methodology "Moody's Approach to Assessing Counterparty
Risks in Structured Finance" published in June 2020. Moody's
concluded the ratings of the notes are not constrained by these
risks.

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
notes, 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 behaviour; (2) divergence in the legal interpretation of CDO
documentation by different transactional parties because of
embedded ambiguities; and (3) the additional expected loss
associated with hedging agreements in this transaction which may
also impact the ratings negatively.

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.

  - 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.


DRYDEN 52: Moody's Confirms B2 Rating on Class F Notes
------------------------------------------------------
Moody's Investors Service has has downgraded the ratings on the
following notes issued by Dryden 52 Euro CLO 2017 B.V.:

EUR16,400,000 Class C-1 Mezzanine Secured Deferrable Floating Rate
Notes due 2031, Downgraded to A3 (sf); previously on Jul 25, 2017
Definitive Rating Assigned A2 (sf)

EUR10,600,000 Class C-2 Mezzanine Secured Deferrable Fixed Rate
Notes due 2031, Downgraded to A3 (sf); previously on Jul 25, 2017
Definitive Rating Assigned A2 (sf)

EUR20,000,000 Class D Mezzanine Secured Deferrable Floating Rate
Notes due 2031, Downgraded to Baa3 (sf); previously on Jun 3, 2020
Baa2 (sf) Placed Under Review for Possible Downgrade

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

EUR237,100,000 Class A Senior Secured Floating Rate Notes due 2031,
Affirmed Aaa (sf); previously on Jul 25, 2017 Definitive Rating
Assigned Aaa (sf)

EUR21,000,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Affirmed Aa2 (sf); previously on Jul 25, 2017 Definitive
Rating Assigned Aa2 (sf)

EUR31,600,000 Class B-2 Senior Secured Fixed Rate Notes due 2031,
Affirmed Aa2 (sf); previously on Jul 25, 2017 Definitive Rating
Assigned Aa2 (sf)

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

EUR22,000,000 Class E Mezzanine Secured Deferrable Floating Rate
Notes due 2031, Confirmed at Ba2 (sf); previously on Jun 3, 2020
Ba2 (sf) Placed Under Review for Possible Downgrade

EUR12,500,000 Class F Mezzanine Secured Deferrable Floating Rate
Notes due 2031, Confirmed at B2 (sf); previously on Jun 3, 2020 B2
(sf) Placed Under Review for Possible Downgrade

Dryden 52 Euro CLO 2017 B.V., issued in July 2017, is a
collateralised loan obligation backed by a portfolio of mostly
high-yield senior secured European loans. The portfolio is managed
by PGIM Limited. The transaction's reinvestment period will end in
August 2021.

RATINGS RATIONALE

Its action concludes the rating review on the Classes D, E and F
notes initiated on June 3, 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, "Moody's places
ratings on 234 securities from 77 EMEA CLOs on review for possible
downgrade".

Stemming from the coronavirus outbreak, the credit quality of the
portfolio has deteriorated as reflected in the increase in Weighted
Average Rating Factor and of the proportion of securities from
issuers with ratings of Caa1 or lower. WARF has worsened by about
9.9% to 3523[1] from 3207[2] in March 2020 and now is significantly
above the reported covenant of 3157 [1]. Securities with default
probability ratings of Caa1 or lower have increased to 11.7%[1]
from 8.9%[2] in March 2020. Consequently, the OC levels have
marginally weakened across the capital structure. According to the
trustee report dated May 2020 the Class A/B, Class C, Class D,
Class E and Class F OC ratios are reported at 137.2%[1], 125.5%[1],
118.1%[1], 110.8%[1] and 107.1%[1] compared to March 2020 levels of
139.1%[2], 126.3%[2], 118.8%[2], 111.5%[2] and 107.8%[2],
respectively. Moody's notes that none of the OC tests are currently
in breach. The Diversity Score is 55[1] and in breach of the
reported covenant of 56[1] but the transaction remains in
compliance with the following other collateral quality tests:
Weighted Average Recovery Rate, Weighted Average Spread, Weighted
Average Fixed Coupon and Weighted Average Life.

As a result of all of the foregoing, the credit quality of the
Class C-1 and C-2 notes, which were previously not placed on
review, have also been impacted.

Accordingly, the Class C-1, C-2 and D notes were downgraded.
Moody's however concluded that the expected losses on remaining
rated notes remain consistent with their current ratings.
Consequently, Moody's has confirmed the ratings on the Class E and
F notes and affirmed the ratings on the Class A, B-1, and B-2
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 EUR401.3 million,
a weighted average default probability of 28.4% (consistent with a
WARF of 3616 over a weighted average life of 5.2 years), a weighted
average recovery rate upon default of 43.3% for a Aaa liability
target rating, a diversity score of 53, a weighted average spread
of 3.83% and a weighted average coupon of 4.9%.

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. Moody's 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:

Its rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank and swap providers,
using the methodology "Moody's Approach to Assessing Counterparty
Risks in Structured Finance" published in June 2020. Moody's
concluded the ratings of the notes are not constrained by these
risks.

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
notes, 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 behaviour; 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.

  - 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.

DRYDEN XXVII-R: Moody's Cuts Rating on Class F Notes to B3
----------------------------------------------------------
Moody's Investors Service has downgraded the ratings on the
following notes issued Dryden XXVII-R Euro CLO 2017 B.V.:

EUR29,300,000 Class D Mezzanine Secured Deferrable Floating Rate
Notes due 2030, Downgraded to Baa3 (sf); previously on Jun 3, 2020
Baa2 (sf) Placed Under Review for Possible Downgrade

EUR14,000,000 Class F Mezzanine Secured Deferrable Floating Rate
Notes due 2030, Downgraded to B3 (sf); previously on Jun 3, 2020 B2
(sf) Placed Under Review for Possible Downgrade

Moody's has also confirmed the rating on the following notes:

EUR27,300,000 Class E Mezzanine Secured Deferrable Floating Rate
Notes due 2030, Confirmed at Ba2 (sf); previously on Jun 3, 2020
Ba2 (sf) Placed Under Review for Possible Downgrade

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

EUR251,200,000 Class A-1 Senior Secured Floating Rate Notes due
2030, Affirmed Aaa (sf); previously on May 24, 2017 Definitive
Rating Assigned Aaa (sf)

EUR15,800,000 Class A-2 Senior Secured Fixed Rate Notes due 2030,
Affirmed Aaa (sf); previously on May 24, 2017 Definitive Rating
Assigned Aaa (sf)

EUR36,800,000 Class B-1 Senior Secured Floating Rate Notes due
2030, Affirmed Aa2 (sf); previously on May 24, 2017 Definitive
Rating Assigned Aa2 (sf)

EUR18,500,000 Class B-2 Senior Secured Fixed Rate Notes due 2030,
Affirmed Aa2 (sf); previously on May 24, 2017 Definitive Rating
Assigned Aa2 (sf)

EUR39,000,000 Class C Mezzanine Secured Deferrable Floating Rate
Notes due 2030, Affirmed A2 (sf); previously on May 24, 2017
Definitive Rating Assigned A2 (sf)

Dryden XXVII-R Euro CLO 2017 B.V., issued in May 2017, is a
collateralised loan obligation backed by a portfolio of mostly
high-yield senior secured European loans. The portfolio is managed
by PGIM Limited. The transaction's reinvestment period will end in
May 2021.

RATINGS RATIONALE

Its actions conclude the rating review on the D, E and F notes
announced on June 3, 2020 "Moody's places ratings on 234 securities
from 77 EMEA CLOs on review for possible downgrade".

Stemming from the coronavirus outbreak, the credit quality of the
portfolio has deteriorated as reflected in the increase in the
Weighted Average Rating Factor and the proportion of securities
from issuers with ratings of Caa1 or lower. According to the
trustee report dated May 2020 [1], the WARF was 3580, compared with
3057 the February 2020 [2]. Securities with ratings of Caa1 or
lower currently make up approximately 11.5% of the underlying
portfolio, versus 6.5% in February 2020.

In addition, the over-collateralisation levels have weakened across
the capital structure. According to the trustee report dated May
2020 [1] the Class A/B, Class C, and Class D OC ratios are reported
at 143.9%, 128.4% and 118.8% compared to February 2020 [2] levels
of 145.2%, 129.5%, and 119.8% 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 and Weighted Average Spread.
However, the WARF and Weighted Average Life tests are not passing
as per latest trustee report [1].

As a result of this deterioration, Moody's downgraded the Class D
and F notes. Moody's however concluded that the expected losses on
the remaining 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. Consequently, Moody's
has confirmed the ratings on the Class E notes and affirmed the
ratings on the Class A-1, A-2, B-1, B-2, and C 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 EUR467.1million, a
weighted average default probability of 28.6% (consistent with a
WARF of 3683 over a weighted average life of 5.1 years), a weighted
average recovery rate upon default of 42.8% for a Aaa liability
target rating, a diversity score of 54 and a weighted average
spread of 3.9%.

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. Moody's 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:

Its rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank and swap providers,
using the methodology "Moody's Approach to Assessing Counterparty
Risks in Structured Finance" published in June 2020. Moody's
concluded the ratings of the notes are not constrained by these
risks.

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

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 behaviour;
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.

MACKAY SHIELDS CLO-2: S&P Assigns Prelim. BB- Rating on E Notes
---------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
MacKay Shields Euro CLO-2 DAC's class X, A, B, C, D, and E notes.
At closing, the issuer will also issue unrated subordinated notes.

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

The portfolio's reinvestment period will end approximately one year
after closing, and the portfolio's weighted average life test will
be approximately seven years after closing.

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

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

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

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

  Portfolio Benchmarks
                                                       Current
  S&P Global Ratings weighted-average rating factor   2,606.57
  Default rate dispersion                               650.09
  Weighted-average life (years)                           5.53
  Obligor diversity measure                              83.04
  Industry diversity measure                             15.89
  Regional diversity measure                              1.14

  Transaction Key Metrics
                                                       Current
  Total par amount (mil. EUR)                            208.7
  Defaulted assets (mil. EUR)                                0
  Number of performing obligors                             98
  Portfolio weighted-average rating
    derived from our CDO evaluator                         'B'
  'CCC' category rated assets (%)                         3.35
  'AAA' weighted-average recovery (%)                    38.31
  Covenanted weighted-average spread (%)                  3.80
  Reference weighted-average coupon (%)                   4.50

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

"In our cash flow analysis, we used the EUR208.7 million par
amount, the covenanted weighted-average spread of 3.80%, the
reference weighted-average coupon of 4.50%, and the actual
weighted-average recovery rates for all rated notes. We applied
various cash flow stress scenarios, using four different default
patterns, in conjunction with different interest rate stress
scenarios for each liability rating category.

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

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

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

"Our credit and cash flow analysis indicates that the available
credit enhancement for the class B to D notes could withstand
stresses commensurate with higher rating levels than those we have
assigned. However, as the CLO is still in its reinvestment phase,
during which the transaction's credit risk profile could
deteriorate, we have capped our assigned ratings on the notes.

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe that our preliminary
ratings are commensurate with the available credit enhancement for
the class X, A, B, C, D, and E notes.

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

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

Based on S&P's review of these factors, and considering the
portfolio concentration, it believes that the minimum cushion
between this CLO tranches' break-even default rates (BDRs) and
scenario default rates (SDRs) should be 1.0% (from a possible range
of 1.0%-5.0%).

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

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

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

S&P Global Ratings acknowledges a high degree of uncertainty about
the evolution of the coronavirus pandemic. The consensus among
health experts is that the pandemic may now be at, or near, its
peak in some regions but will remain a threat until a vaccine or
effective treatment is widely available, which may not occur until
the second half of 2021. S&P said, "We are using this assumption in
assessing the economic and credit implications associated with the
pandemic. As the situation evolves, we will update our assumptions
and estimates accordingly."

MacKay Shields Euro CLO-2 is a European cash flow CLO
securitization of a revolving pool, comprising euro-denominated
senior secured loans and bonds issued mainly by sub-investment
grade borrowers. MacKay Shields Europe Investment Management
Limited will manage the transaction.

  Ratings List

  Class   Prelim    Prelim     Sub (%)    Interest rate*
          Rating    amount
                   (mil. EUR)

  X       AAA (sf)     1.50    N/A       Three/six-month EURIBOR
                                           plus 0.74%
  A       AAA (sf)   124.00    40.58     Three/six-month EURIBOR
                                           plus 1.55%
  B       AA (sf)     19.00    31.48     Three/six-month EURIBOR
                                           plus 2.35%
  C       A (sf)      15.50    24.05     Three/six-month EURIBOR
                                           plus 3.20%
  D       BBB- (sf)   19.60    14.66     Three/six-month EURIBOR
                                           plus 4.69%
  E       BB- (sf)     9.00    10.35     Three/six-month EURIBOR
                                           plus 6.54%
  Sub     NR           22.0     N/A      N/A

* The payment frequency switches to semiannual and the index
  switches to six-month EURIBOR when a frequency switch event
  occurs.
EURIBOR--Euro Interbank Offered Rate.
NR--Not rated.
N/A--Not applicable.


WEATHERFORD INT'L: Discloses Substantial Going Concern Doubt
------------------------------------------------------------
Weatherford International plc filed its quarterly report on Form
10-Q, disclosing a net loss of $958 million on $1,215 million of
total revenues for the three months ended March 31, 2020, compared
to a net loss of $477 million on $1,346 million of total revenues
for the same period in 2019.

At March 31, 2020, the Company had total assets of $6,165 million,
total liabilities of $4,302 million, and $1,863 million in total
shareholders' equity.

The Company said, "The combination of the unprecedented industry
conditions, risks and uncertainties associated with the COVID-19
pandemic, lower activity levels and potential covenant breach,
raises substantial doubt about our ability to continue as a going
concern."

A copy of the Form 10-Q is available at:

                       https://is.gd/Ycr4XS

Weatherford International plc, an Irish-domiciled company, is one
of the largest multinational oil and natural gas service
companies.




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

ASSET-BACKED EUROPEAN 14: Fitch Affirms Class E Debt at BBsf
------------------------------------------------------------
Fitch Ratings has affirmed all Asset-Backed European Securitisation
Transaction Fourteen S.r.l. notes following the third restructuring
of the transaction.

Asset-Backed European Securitisation Transaction Fourteen S.r.l.
(A-Best 14)      

  - Class A IT0005187072; LT AA-sf; Affirmed

  - Class B IT0005187080; LT A+sf; Affirmed

  - Class C IT0005187098; LT A-sf; Affirmed

  - Class D IT0005187106; LT BB+sf; Affirmed

  - Class E IT0005329708; LT BBsf; Affirmed

TRANSACTION SUMMARY

The transaction is a securitisation of performing auto loans
advanced to Italian individuals, including VAT borrowers (ie,
professionals and artisans) by FCA Bank S.p.A. (FCAB;
BBB+/Negative/F1), a joint venture between Fiat Chrysler
Automobiles and Credit Agricole Consumer Finance.

The restructuring includes, among others: extension of the
revolving period until the December 2020 payment date; an increase
of the maximum limit for used vehicles in the portfolio to 20%
(from 16%) and of repurchase of renegotiated loans to 5% (from 3%)
during the revolving period; and full amortisation of the
commingling reserve in the July 2020 payment date.

KEY RATING DRIVERS

Assumptions Reflect Revolving Covenants and Country Ceiling
Downgrade

The six-month extension of the transaction's revolving period and
the amendment to the maximum limit for used cars have been
reflected in the stressed portfolio modelled in accordance with
concentration limits. Fitch maintained its default and recovery
base-case assumptions as updated in its April 2020 review for each
loan type. The overall effect is an increase in the weighted
average lifetime base-case loss to 2.0%, from 1.9%.

Following the downgrade of Italy's Issuer Default Rating and the
Country Ceiling to 'AA-' from 'AA' on April 28, 2020, all the
assumptions for the highest achievable rating have been
recalibrated to a 'AA-sf' scenario, determining more conservative
assumptions also at the intermediate rating levels, all else being
equal. This was reflected in the 10.6% 'AA-' WA lifetime portfolio
default rate, up from 9.4% as of April 2020 review.

Class E Sensitive to Covid-19 Outbreak

The Negative Outlook on the Class E 'BBsf' rating reflects the
increased risk of a more prolonged period of below-trend economic
activity following the coronavirus outbreak. A longer-lasting
economic shock with wage declines and job losses would materially
affect the transaction's performance with below-investment-grade
tranches more affected by revisions of asset assumptions.

Ratings Capped at 'AA-sf'

The class A notes are rated 'AA-sf', the maximum achievable rating
for Italian structured finance transactions, six notches above
Italy's Long-Term Issuer Default Rating (BBB-/Stable). The Outlook
on the class A note mirrors that on the sovereign.

Commingling Risk Immaterial Risk Driver

A-Best 14's daily transfer of funds from the servicer to the
issuer's collection account bank represents an immaterial risk
driver under Fitch's "Structured Finance and Covered Bonds
Counterparty Rating Criteria". The amortisation of the commingling
reserve, whose aim is to cover commingling risk, has no rating
impact on the notes.

RATING SENSITIVITIES

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

Unexpected increases in the frequency of defaults or decreases in
recovery rates could produce larger losses than the base case and
could result in negative rating actions on the notes. For example,
a simultaneous increase of the default base case by 25% and
decrease of the recovery base case by 25% would lead to a one-notch
downgrade of the class A, C and E notes and to a two-notch
downgrade of the class B and D notes.

If the payment holidays, introduced in response to the COVID-19
outbreak, are extensively used, the transaction could face a
greater liquidity risk and result in delayed structural protections
designed for more senior bonds (delinquency and/or cumulative
default triggers that can halt revolving periods or alter principal
paydown methods).

Coronavirus Downside Scenario Sensitivity: Fitch has added a
coronavirus downside sensitivity analysis that contemplates a more
severe and prolonged economic stress caused by a re-emergence of
infections in the major economies, before a slow recovery begins in
2Q21. Fitch assumed an increased WA default base case to 2.8%
compared with 2.3% applied in the baseline scenario. The default
multiples are rescaled so as to broadly maintain the Country
Ceiling WA defaults. Fitch's initial expectation is that this
scenario could lead to a higher risk of downgrade, especially for
mezzanine tranches.

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

Unexpected decreases in the frequency of defaults or increases in
recovery rates could produce smaller losses than the base case and
could result in positive rating actions on the notes. For example,
a simultaneous decrease of the default base case by 25% and
increase of the recovery base case by 25% would lead to a two-notch
upgrade of the class C notes, to a three-notch upgrade of the class
D and E notes and will be rating neutral for the class A and B
notes.

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

Fitch has checked the consistency and plausibility of the
information it has received about the asset pool and the
transaction. There were no findings that affected the rating
analysis. Fitch has not reviewed the results of any third-party
assessment of the asset portfolio information or conducted a review
of origination files as part of its ongoing monitoring.

Prior to the transaction closing, Fitch reviewed the results of a
third-party assessment conducted on the asset portfolio information
and concluded that there were no findings that affected the rating
analysis.

Prior to the first transaction restructuring, Fitch conducted a
review of a small targeted sample of the origination files and
found the information contained in the reviewed files to be
adequately consistent with the originator's policies and practices
and the other information provided to the agency about the asset
portfolio.

Overall, Fitch's assessment of the asset pool information relied on
for the agency's 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.

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).




===================
K A Z A K H S T A N
===================

SAMRUK-ENERGY JSC: Fitch Affirms BB LongTerm IDRs, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed JSC Samruk-Energy's Long-Term Issuer
Default Ratings at 'BB' and upgraded the energy company's senior
unsecured rating to 'BB' from 'BB-'. The Outlook on the IDR is
Stable.

Fitch continues to rate Samruk-Energy at three notches below its
indirect sole shareholder, the Republic of Kazakhstan (BBB/Stable),
reflecting the links between the state and the company. Fitch has
revised Samruk-Energy's Standalone Credit Profile higher to 'b+'
from 'b', on the back of improved leverage and diminished
foreign-exchange risks.

The upgrade of the senior unsecured rating reflects lower
structural subordination and average recoveries for unsecured
creditors.

KEY RATING DRIVERS

Improved SCP: The revised SCP reflects a stronger financial
profile, due to improved credit metrics and diminished FX risks.
Despite its expectations that Kazakh GDP will contract 1.8% in
2020, which will translate into lower electricity generation
volumes, Fitch forecasts Samruk-Energy's funds from operations
gross leverage to average 3.8x over 2020-2023, down from 4.8x on
average over 2016-2019. This is also supported by above-average
electricity tariff increases for 2020 for its Shardara hydro power
plant and Moinak HPP and high investment tariffs for capacities of
Shardara HPP, Moinak HPP and Almaty Power Stations.

Senior Unsecured Rating Aligned with IDR: Fitch has upgraded the
senior unsecured rating to align it with the company's IDR after
prior ranking debt-to-EBITDA ratio decreased to below 2x at
end-2019, which Fitch expects to remain so over 2020-2023.
Therefore, Fitch does not see material structural subordination of
senior unsecured creditors.

New Capacity Agreements Support Financials: At end-2019 the
government approved investment tariffs for capacity of new power
units at Shardara HPP, Moinak HPP and Almaty Power Stations at
KZT2.6 million/MW per month - KZT4.2 million/MW per month. This is
4x-7x higher than the market capacity tariff of KZT0.6 million/MW
per month. Capacity sales under investment tariffs represent about
16% of Samruk-Energy's EBITDA. These tariffs are approved until
2024-2028 and support EBITDA and cash flows.

FX Risks Diminishing: Samruk-Energy has significantly reduced its
exposure to FX fluctuations, following refinancing of a US
dollar-denominated loan at Moinak HPP with local currency at the
holding level as well as conversion of US dollar debt to local
currency at Moinak HPP. At end-2019 foreign currency-denominated
debt accounted for only 2%, down from 60% in 2016. Thus, the
company's financial flexibility and ability to withstand currency
shocks has improved, which is positive for the credit profile.

Strong Links with State: The Kazakh government indirectly owns
Samruk-Energy through Sovereign Wealth Fund Samruk-Kazyna JSC
(BBB/Stable). Fitch views the status, ownership and control, as
well as support track record and expectations as 'strong'. The
company accounted for about 30% of the country's electricity
generation and around 40% of coal output in 2019. The government
injected KZT232 billion into the company over 2009-2016, lowered
interest rates on its KZT100 billion loan to Samruk-Energy to 1% in
2015 from 9% previously and reimbursed Samruk-Energy's liability to
Samsung C&T after the latter exercised its exit option in the
Balkhash TPP project.

Incentive to Support in Place: The socio-political implications of
a default by Samruk-Energy are 'moderate', reflecting its view that
most of the operations within its subsidiaries would likely
continue following a default. However, the presence of multilateral
lenders, including international financial institutions, may have a
significant impact on the parent and other government-related
entities, as reflected in its 'strong' assessment of the financial
implications of a default.

DERIVATION SUMMARY

The rating of Samruk-Energy's closest peer, Kazakhstan Electricity
Grid Operating Company (KEGOC; BBB-/Stable), also incorporates
state support, but is one notch below the parent's due to KEGOC's
stronger 'bb+' SCP, and also because a significant share of KEGOC's
debt is guaranteed by the government. Samruk-Energy's 'b+' SCP on
the other hand mainly reflects an elevated, although moderately
decreasing, debt burden. A smaller privately-owned peer, Limited
Liability Partnership Kazakhstan Utility Systems (KUS, B+/Stable),
is rated on a standalone basis.

The wider peer group includes Russian-based generators partially
exposed to coal, PJSC Inter RAO UES (BBB/Stable) and PJSC The
Second Generating Company of the Wholesale Power Market
(BBB-/Stable), which benefit from a larger size and stronger
regulatory framework. Fitch assesses the risks associated with the
regulatory framework and general operating environment in
Kazakhstan as high.

KEY ASSUMPTIONS

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

  - Kazakhstan GDP to shrink 1.8% in 2020, before growing 4%-5.3%
p.a. to 2024

  - Inflation of 10% in 2020 followed by 6%-7.5% until 2024

  - Electricity generation and distribution tariffs to increase in
2020 as approved by the regulator, followed by gradual
below-inflation increases up to 2024

  - Electricity generation volumes to decrease faster than GDP
decline in 2020 due to pandemic, before recovering in line with GDP
growth until 2024

  - Cost increase in line or slightly below expected CPI over the
next four years

  - Capex averaging around KZT44 billion annually over 2020-2024,
close to management's guidance

  - Dividends of KZT3 billion in 2020 and KZT17 billion annually on
average over 2021-2024

  - Repayment of Ekibastuz GRES-2's debt to Russian Vnesheconombank
not later than June 2021

RATING SENSITIVITIES

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

  - Positive sovereign rating action

  - Strengthening links with the government, for example in the
form of explicit guarantees or cross default provisions

  - A significant improvement of SCP to 'bb-', for example due to
FFO gross leverage falling below 3.2x and FFO interest cover rising
above 4.0x on a sustained basis.

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

  - Negative sovereign rating action

  - Weaker linkage with the Kazakh government, for example
diminishing or irregular state support or weaker financial
implications of its potential default on the State or other GREs.

For the sovereign rating of Kazakhstan, Samruk-Energy's ultimate
parent, Fitch outlined the following sensitivities in its rating
action commentary of February 21, 2020:

The main factors that could, individually or collectively, trigger
positive rating action, are:

  - Improved governance indicators and strengthening of the policy
framework to enhance its predictability and effectiveness.

  - Sustainable improvement in the health of the banking sector,
e.g. demonstrated by improved financial intermediation and asset
quality.

  - Improvement in the economy's and public finances' resilience to
commodity price shocks through economic diversification.

The main factors that could, individually or collectively, trigger
negative rating action, are:

  - Policies that widen the consolidated fiscal deficit materially
or undermine monetary policy credibility.

  - Materialisation of additional significant contingent
liabilities from the banking sector on the public sector balance
sheet.

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

Manageable Liquidity: At end-2019 Samruk-Energy had available cash
and deposits of about KZT14 billion, unused uncommitted credit
facilities of KZT86 billion (with over one-year drawdown period) in
Kazakh banks - namely JSC Halyk Bank (BB+/Negative), Subsidiary
Bank Sberbank of Russia, JSC (BBB-/Stable) and VTB - and expected
receipt in 2020 of instalment payment for the networks privatised
in 2017 of around KZT10 billion. This compares with short-term debt
of KZT57 billion and Fitch-expected negative free cash flow of
around KZT5 billion.

Funding from international financial institutions (EBRD, Asian
Development Bank, Eurasian Development Bank) amounted to KZT113
billion, or 42% of total debt at end-2019. However, Fitch expects
Samruk-Energy to remain reliant on local banks to refinance the
majority of further debt repayments, which exposes it to the local
banking system. Debt repayments are KZT57 billion in 2020 and KZT21
billion-KZT45 billion annually over 2021-2024.

Cash and deposits are held at local banks, mainly JSC Halyk Bank,
ForteBank JSC (B/Negative), Altyn Bank (subsidiary bank of China
Citic Bank Corporation Limited) (BBB-/Stable), JSC CB Alfabank
(BB-/Negative) and ATF Bank JSC (B-/Stable).

SUMMARY OF FINANCIAL ADJUSTMENTS

Balance value of loan fom Samruk-Kazyna is adjusted to the nominal
value, thus KZT68.5 billion was added as off-balance sheet debt in
2019

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).

JSC Samruk-Energy

  - LT IDR BB; Affirmed

  - ST IDR B; Affirmed

  - LC LT IDR BB; Affirmed

  - Natl LT A+(kaz); Affirmed

  - Senior unsecured; LT BB; Upgrade

  - Senior unsecured; Natl LT A+(kaz); Upgrade




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

ALGECO INVESTMENTS 2: Fitch Affirms 'B' LT IDR, Outlook Negative
----------------------------------------------------------------
Fitch Ratings has affirmed Algeco Investments 2 S.a.r.l.'s
Long-Term Issuer Default Rating at 'B' and removed it from Rating
Watch Negative. The Outlook is Negative. Fitch has also affirmed
the ratings of the senior secured notes issued by Algeco Global
Finance Plc at 'B+' with a Recovery Rating of 'RR3' and the senior
unsecured notes issued by Algeco Global Finance 2 plc of 'CCC+'
with a Recovery Rating of 'RR6' and removed them from RWN.

Fitch placed Algeco's ratings on RWN on April 3, 2020. The
affirmation reflects its view that while Algeco's revenue base has
been affected by the COVID-19 pandemic, it should be able to
withstand the related pressure on financial metrics without
breaching any downgrade triggers in the short term.

The Negative Outlook reflects Fitch's view that while Algeco has
some remaining buffers at its rating level, risks to its credit
profile remain skewed to the downside. In particular, Algeco's
already high leverage remains sensitive to a slower-than-expected
recovery in its European core markets, which could lead to pressure
on release rates and fleet utilisation rates.

KEY RATING DRIVERS

IDR

Algeco's Long-Term IDR is weighed down by its elevated cash flow
leverage (gross debt/EBITDA at 6.4x at end-1Q20) which Fitch has
identified as a high importance factor for the rating. Leverage
constraints are partially mitigated by the typically
cash-generative nature of Algeco's operations and associated
deleveraging potential via EBITDA accretion, with management
anticipating gross leverage reducing below 6x in 2021. The
company's future ability to generated earnings (and reduce
leverage) is supported by the conclusion of various bolt-on
acquisitions in recent months, which management expects to be value
accretive from the outset. Algeco's net leverage is lower (forecast
at around 5x by 2021), as the company retains cash on balance sheet
to ensure financial flexibility in the current volatile
environment. Fitch notes that Algeco's balance sheet leverage
(gross debt / tangible equity) remains weak, as high finance
changes undermine bottom line profitability (and ultimately capital
accumulation).

Following the disposal of Target Lodging in 2018, Algeco's
franchise is now centred on the European modular leasing market,
and to a lesser extent its smaller scale operation in Australia and
New Zealand. Its footprint within the modular leasing market is
reasonably well diversified (both in terms of geographies and
exposure to underlying industries), which to date has proven
effective in mitigating the impact of the current COVID-19
pandemic. The conclusion of a number of strategic, cash-funded
EBITDA-accretive acquisitions over the past 12 months (including
Buko in the Netherlands, Malthus Uniteam in Norway or Altempo in
France and the impending acquisition of Wexus in Norway) should
support franchise diversification. Weighing down its company
profile assessment is Algeco's relatively small size in absolute
term and its monoline business model (with the focus on modular
space leasing implying an inherent exposure to cyclicality of its
customers' industries, notably construction). In the current
environment, curtailed demand could lead to pressure on rental
rates, which could undermine pricing strength and ultimately
Algeco's franchise.

For 1Q20, Algeco reported EBITDA of EUR67 million, which was
largely flat year-on-year. Although 1Q20 results only include a
moderate impact from the COVID-19 pandemic, management indicated
that earnings resilience was at similarly stable levels in April
and May. Earnings generation in the current environment is
supported by relatively long rental periods (typically in excess of
one year), the relative stickiness of Algeco's equipment (which
typically remains on site and billable even if not used), its broad
geographic scope (benefiting from varying levels of resumed
economic activity in Europe), as well as stringent cost control
measures adopted in response to the pandemic.

As a result, while Fitch believes that Algeco's revenue will remain
affected by repercussions from the pandemic, Fitch expects EBITDA
in 2020 to moderately decline on a like-for-like basis, but overall
EBITDA should benefit from recent accretive acquisitions. However,
Fitch expects Algeco to continue reporting a net loss in 2020,
largely reflecting interest expenses due to its high leverage,
which affects its earnings and profitability assessment. In its
view, potential downside risk for earnings generation (and
ultimately the deleveraging path) remains elevated in the near
term, as the uncertainty regarding the economic recovery weighs on
core business activities and potentially also on the realisation of
acquisitive synergies.

Its funding assessment of Algeco takes into account its
concentrated funding profile, which given its weak balance sheet
capitalisation, is significantly reliant on debt funding
(comprising a mix of an asset-backed senior secured revolving
credit facility (asset-based lending facility) and senior secured
and unsecured notes). In turn, this gives rise to significant
interest expense, which undermines net profitability. As a result,
interest coverage (EBITDA/interest expense) remains weak (1.8x at
end-1Q20) and asset encumbrance due to a large proportion of
secured funding is high, limiting Algeco's funding flexibility.

Over the near term, refinancing risk is limited as Algeco's debt
profile is sufficiently long-dated (next upcoming maturity in
February 2023) and liquidity is supported by an acceptable buffer
of cash and cash equivalents (EUR184 million at end-1Q20, excluding
a EUR28 million equity stake in Target Hospitality. Fitch notes
that EUR103 million in cash proceeds from the Target Lodging
disposal are held outside the restricted group and are not
immediately available for the operating entities. This is reflected
in its ESG score of '4' for Management Strategy under 'Governance'
where the ultimate PE ownership of Algeco potentially has a bearing
on overall strategic implementation and driving a highly leveraged
balance sheet.

SENIOR SECURED AND UNSECURED NOTES

Algeco's ABL facility has a first lien on assets under certain
jurisdictions (Australia, New Zealand and the UK) and a second lien
on assets in the rest of the world. Fitch assumes the assets under
ABL jurisdiction will be able to cover the EUR74 million
outstanding ABL amount at end-1Q20 and therefore views the
instrument as super senior to the senior secured notes. Recoveries
for senior secured noteholders stand at an estimated 60%, resulting
in a long-term rating of 'B+'/'RR3', one notch above Algeco's
Long-Term IDR. Recoveries for senior unsecured notes are zero
(RR6), resulting in a rating two notches below Algeco's Long-Term
IDR, at 'CCC+'.

RATING SENSITIVITIES

IDR

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

  - EBITDA generation for 2020 being weaker than anticipated by
Fitch, arising either from a weakening in core earnings or
unforeseen integration challenges notably weighing on the earnings
contribution of recently acquired businesses.

  - An increase in gross cash flow leverage above 7x or Fitch
concluding that meaningful deleveraging is unlikely in the medium
term, resulting in Algeco's gross leverage remaining above 6x on a
sustained basis.

  - A significant narrowing of the differential in gross and net
cash flow leverage to the upside arising in particular from a
reduction in on- balance sheet cash reserves other than for the
purpose to fund EBITDA-accretive acquisitions (e.g. outsized
distributions to shareholders).

  - Failure to improve interest coverage ratios over the short
term.

  - Failure to demonstrate franchise resilience, in particular if
manifesting via sustained weaker rental rates or a drop in asset
utilisation metrics

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

  - Given the Negative Outlook, rating upside is limited over the
near term.

  - Over the medium term, a revision of the Outlook to Stable
remains subject to a reduction in gross cash flows leverage to
below 6x; and/or a notable and sustained improvement in the
interest coverage ratio approaching 3.5x.

  - Sustainably improved franchise strength (in particular if
accompanied by an enhanced degree of business model
diversification).

SENIOR SECURED AND UNSECURED NOTES

The ratings of the senior secured and senior unsecured notes are
primarily sensitive to a change in Algeco's Long-Term IDR. Changes
leading to a material reassessment of potential recovery prospects,
for instance, changes in equipment valuation or competitive
environment could trigger a change in the rating. In the case of
Algeco's senior secured notes, a material increases in its ABL size
or the introduction of other more senior debt instruments could
lead to a downgrade of the notes' rating.

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

Management Strategy has an ESG relevance score of 4. This reflects
Fitch's view that strategic execution is weighed down by the
complexity of Algeco's governance structure, including the ability
to upstream resources from the restricted group.

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(ies),
either due to their nature or the way in which they are being
managed by the entity(ies).

Algeco Global Finance plc      

  - Senior secured; LT B+; Affirmed

Algeco Investments 2 S.a.r.l.

  - LT IDR B; Affirmed

Algeco Global Finance 2 plc      

  - Senior unsecured; LT CCC+; Affirmed


EURASIAN RESOURCES: S&P Affirms 'B-' LT ICR, Outlook Negative
-------------------------------------------------------------
S&P Global Ratings affirmed its 'B-/B' long- and short-term issuer
credit ratings on Eurasian Resources Group (ERG) S.a.r.l., one of
the world's largest ferrochrome (FeCr).

S&P said, "We have affirmed the rating on ERG because the finally
started RTR project will support the recovery of the group's
performance and credit metrics.   Still, we maintain the negative
outlook because improvements in commodity markets that we have seen
over the past few weeks remain fragile and sensitive to
pandemic-related developments."

Industry conditions remain challenging for ERG and the timing of
the recovery is uncertain.  Already under pressure in late 2019 due
to slowing economies worldwide, global commodities prices have been
hit heavily by the pandemic-related global economic recession, with
all ERG's major products--such as FeCr, copper, aluminum, coal, and
cobalt--hitting multiyear lows in first-half 2020. S&P said, "We
expect prices to be generally flat in 2020 on average compared with
2019, with a better pricing environment in the second half after
performance was below our average full-year assumptions in the
first half. Iron ore has been the only resilient metal in ERG's
portfolio but, at only about 22% of revenue in 2019 (including
pellets), it cannot fully compensate for weakness in other metals,
such as aluminum, which remains well below our expectations, and
copper, which has just approached the target price. We expect only
moderate growth in 2021 too."

ERG's long-term expansion project, RTR, is finally expected to
approach full capacity in 2020, meaningfully expanding copper and
cobalt output.   S&P said, "We understand that RTR (phase one)
output was approaching full capacity in first-half 2020, after
multiple delays in previous years. We expect that ERG will sell up
to 30% more copper and up to 10 times more cobalt in 2020 than in
2019, which should support the group's revenue and EBITDA. We note
that RTR is among the world's lowest cost producers on both metals
and is expected to generate positive cash flows even under
significantly stressed prices. However, given the previous
operational challenges and high country risk in the Democratic
Republic of Congo, where RTR is located, we would like to see some
track record of operations before we can fully rely on its
contribution to consolidated results."

Leverage will remain high in 2020, only marginally improving from
2019, and major deleveraging appears uncertain.  S&P said, "We
forecast that ERG's leverage will remain high in 2020 with funds
from operations (FFO) to debt at 8%-12%, but still an improvement
from 5.8% in 2019, thanks to contributions from RTR. Still, we
believe that further deleveraging appears uncertain and will depend
upon global economic recovery and discipline in curtailing capital
expenditure (capex) and limiting dividends. In our base-case
scenario, we assume that ERG can achieve FFO to debt of 9%-19% in
2021, but note the sensitivity of this improvement to the
above-mentioned factors. Importantly, we do not see any capacity
for ERG to meaningfully reduce its absolute debt in 2020, which
currently stands at about $8.5 billion." Therefore, swings in
EBITDA will materially affect leverage going forward.

One unknown factor is the U.K.'s Serious Fraud Office's criminal
investigation, which started in 2013, into ERG's now fully owned
subsidiary Eurasian Natural Resources Corporation.  The
investigation also weighs on the company's profile, although no
official charges have been placed, and potential financial
consequences are hard to estimate. S&P will continue monitoring
developments to assess the investigation's potential effect on
ERG's credit quality.

Its low-cost position, strong profitability, and growth from RTR's
ramp-up support ERG's business risk profile.  ERG's mining
operations enjoy a low-cost position, especially in FeCr where the
group has a sizable global market share of 13%, and most recently
cobalt and copper. Moreover, the group's profitability throughout
the cycle remains high and resilient, with growth potential finally
materializing, as RTR starts contributing to earnings and cash
flows.

S&P said, "We currently assess the likelihood of ERG receiving
timely and sufficient extraordinary state support as low, since we
believe the government is more interested in its continued
operations rather than the timeliness of debt repayments.  We base
our view on our observations over 2015-2016, when ERG faced sizable
liquidity shortfalls and covenant breaches without extraordinary
government support (such as capital injections). We continue to
factor continual state support into our ratings on ERG, however,
since we have seen various examples of tangible ongoing support
from Kazakhstan to ERG. We think these actions were motivated by
ERG's role as a large mining company and a relatively big employer
in the country (with numerous workforces in remote regions). That
said, we think this may also prompt the government to facilitate
the company undertaking further investments into social
infrastructure projects."

The outlook remains negative because S&P believes that, in case
market conditions do not improve in 2021, ERG's capital structure
might become unsustainable.

This could happen if commodities prices (notably, FeCr) remain
under pressure, due to the weaker global economy or further
proliferation of COVID-19. In turn, it could result in ERG
underperforming under its current base-case scenario (generating
EBITDA below $1.5 billion-$1.7 billion in 2020).

S&P might revise the outlook to stable if ERG demonstrates improved
cash flow generation stemming, for instance, from more supportive
market conditions, with more certainty of FFO to debt reaching
10%-12% and debt to EBITDA falling consistently below 5.0x.


EVERGREEN SKILLS: Moody's Cuts PDR to D-PD on Bankruptcy Filing
---------------------------------------------------------------
Moody's Investors Service downgraded Evergreen Skills Lux S.a
r.l.'s Probability of Default Rating to D-PD from Ca-PD.
Skillsoft's other ratings were affirmed, including its Ca Corporate
Family Rating, the Caa3 rating on its senior secured first lien
bank credit facilities, and the C rating on its senior secured
second lien term loan. The outlook remains negative. These actions
follow Skillsoft's June 14, 2020 voluntary petitions for relief
under Chapter 11 of the Bankruptcy Code in the United States
Bankruptcy Court for the District of Delaware.

Downgrades:

Issuer: Evergreen Skills Lux S.a r.l.

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

Affirmations:

Issuer: Evergreen Skills Lux S.a r.l.

Corporate Family Rating, Affirmed Ca

Senior Secured 2nd Lien Bank Credit Facility, Affirmed C (LGD5)

Senior Secured 1st Lien Bank Credit Facility, Affirmed Caa3 (LGD3)

Outlook Actions:

Issuer: Evergreen Skills Lux S.a r.l.

Outlook, Remains Negative

RATINGS RATIONALE

The Chapter 11 bankruptcy filing has resulted in a downgrade of
Skillsoft's PDR to D-PD, reflecting the company's default on its
debt agreements. The affirmation of the Ca CFR and Caa3 rating on
the senior secured bank credit facilities reflects Moody's views on
recovery. Shortly following this rating action, Moody's will
withdraw all of Skillsoft's ratings.

Evergreen Skills Lux S.a r.l. provides cloud-based e-learning and
human capital management software solutions for enterprises,
government, and education customers through its Skillsoft, Percipio
and SumTotal businesses. Headquartered in Nashua, New Hampshire,
Skillsoft generated revenues of approximately $518 million in the
LTM period ended October 31, 2019.

The principal methodology used in these ratings was Software
Industry published in August 2018.



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

JDE PEET'S: S&P Assigns 'BB+' Issuer Credit Rating, Outlook Pos.
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issuer credit rating to
Netherlands-domiciled JDE Peet's N.V. (JDEP), the parent of the
group. S&P also raised its ratings on JDE and its debt facilities
to 'BB+' from 'BB', and removing them from CreditWatch positive
where they were placed on May 20, 2020.

The consolidated group benefits from good geographic, category, and
distribution channel diversity, but the merger with Peet's is not
transformative.

S&P said, "Our 'BB+' ratings on the group reflect its strong market
position in the coffee industry (EUR78 billion in annual sales in
2019 according to Euromonitor International) and the large and
expanding hot drinks category, as well as its good geographic
diversity and presence in all distribution channels. JDEP's global
market share (in value terms) is estimated at about 10.4% (10.0%
for JDE only), making it the world's second-largest player in the
coffee category, behind Nestle (24.8%). We view the group's diverse
product portfolio covering all pricing points, and presence across
all technologies (beans, instant, roast, and ground and
single-serve) as particular strengths. The premium "Global Jewels"
(including Peet's, Jacobs, L'Or, Senseo, Tassimo) account for about
50% of its coffee revenues (81% of total, EUR6.95 billion in 2019).
The company spends most of its advertising and promotion effort on
these brands. At the same time, its solid free cash flow generation
is supported by a strong contribution from regional (30%) and local
brands (20%), which require little to no advertising spending, but
boast a significant share in their end-markets.

"In terms of geographic positioning, we continue to view the group
as particularly entrenched in certain geographies. It is firmly in
the top 3 players in Western and Eastern Europe, and Latin America,
while trailing behind in other markets. Peet's is a very small
player in North America, while JDE has historically not been
represented there. We therefore see further scope for improvement
in the business, in terms of geographical diversity, particularly
in certain large emerging markets within the Asia-Pacific region."

Pure-play business model, with coffee accounting for about 81% of
total revenues, come with risks, and constrain our assessment of
its earnings generation capacity.  JDE has a successful track
record in expanding its market share. The operational establishment
of JDE in July 2015, thanks to the combination of D.E Master
Blenders 1753 and Mondelez International's coffee assets, created a
strong competitor to Nestle, and JDE has increased its market share
to the detriment of the largest competitor. S&P evaluates
positively the growth in the coffee industry, on a constant
adjusted growth basis (CAGR) it grew by about 2.9% in volume and
3.4% in value terms from 2008-2019. This has been driven by
premiumization trends, with fresh ground coffee pods leading the
way with strong double-digit growth rates, according to
Euromonitor. S&P said, "However, we realize that beyond the large
positions held by Nestle and JDEP, the coffee market is still
fragmented. There is a large number of smaller players and
increasing interest from large players that are attracted by the
industry growth rate. In our view, competitive pressure remains
high and new players are entering the fast-growing sub-categories,
potentially at the expenses of the two largest players."

In the short-term, the COVID-19 pandemic could slow the growth
trend depending on the broad-based recovery, given that according
to Euromonitor, foodservice, the main driver of the premiumization
trends, accounts for about 25% of global coffee sales. Moreover,
competition in the retail channel, likely the main growth driver at
least in the near term, could intensify, with higher promotional
activity from both existing branded players, new entrants (e.g. The
Coca-Cola Co.), and private labels.

In the long run, risks related to sustainability also pose a major
challenge for the industry due to persistently low green coffee
bean prices (since 2016). This is the result of a consistent
oversupply from major exporting countries (Brazil, Colombia,
Vietnam, Indonesia, and India). S&P said, "We think that low green
coffee prices could disrupt the global supply chain in the long
run, by limiting the availability of some premium high-quality
beans, such as Arabica, as farmers struggle to meet their operating
and financing costs. We think that without further support from
large industry players, there could be a commoditization of the
industry, and therefore low growth. We think that JDEP's extensive
use of supply chain financing, of which a noticeable part relates
to green coffee procurement, reflects the scale of the
aforementioned issues. We currently do not add the utilizations
under these facilities to our adjusted debt metrics. However, we
note that they lead to large working capital inflows, thereby
inflating the strength of the free cash flow generation of the
business."

The dominance of the retail distribution channel should help offset
revenue and earnings pressure in the out-of-home channel due to
COVID-19.   S&P said, "Notwithstanding the very strong start of the
year, with revenue growth of 3.1% (year-on-year) and margin
expansion of 300 basis points (to 22.4%) in the first quarter, we
forecast revenue growth of about 1.0% in 2020 and 2.0%-3.0% in
2021. We note that about 20% of JDEP's sales comes from out-of-home
consumption and hotel, restaurant, catering (HoReCa) channels, and
we expect sales in these segments to be hit by lockdowns and social
distancing measures in the next quarters of the current year. We
assume that part of this will be catch-up with sales in the
supermarkets and retail networks. We think that restoration of
sales activity in the out-of-home and coffee retail stores channels
(collectively 21% of total revenues) to pre-COVID-19 levels will
take time, and most likely not until 2021. We believe that the
group will not face meaningful integration costs following the
merger of JDE and Peet's given the lack of geographical overlap,
while the planned footprint optimization efforts of the coffee
retail stores in the U.S. should also not pose a significant
challenge."

S&P said, "We expect JDEP to continue to generate solid cash flows
that support deleveraging.  The business exhibits very strong free
cash flow generation of historically over EUR800 million in free
operating cash flow annually, supported by low capital expenditure
(capex) requirements and lack of pressure from working capital
absorption. Taking these factors into account and considering a
future shareholder distribution of about 50%-60% (of previous
year's net income), we forecast discretionary cash inflows of at
least EUR500 million per year from 2020 onwards. This should allow
the group to achieve its net leverage target of below 3.0x by
year-end 2021, a level we see commensurate with an investment-grade
rating. For 2020, we forecast adjusted debt to EBITDA of about
3.4x-3.6x (4.6x in 2019).

"Our adjusted debt figures for 2019 comprised the syndicated term
loan facilities at the level of JDE and Peet's, EUR1.7 billion of
related-party loan due to Acorn Holdings B.V. at Peet's level,
EUR258 million of reported operating lease obligations, EUR300
million of dividend payable to shareholders, and about EUR2 million
of guarantees. We net EUR795 million of available unrestricted
on-balance sheet cash against debt.

Publicly stated financial policy of reported net leverage of below
3.0x supports an investment-grade rating.   Since the operational
establishment of JDE in July 2015, the company and its majority
owners from JAB Holdings (JAB, A-/Negative/--) have expressed
intentions to focus on reducing the business' leverage. We note
that in the past the group achieved remarkable deleveraging,
despite making large acquisitions in 2017 (most notably
Singapore-based Super Group) and 2018 (most notably Malaysia-based
OldTown), while still spending considerable resources on
integrating the overall group. Under our base case, we have not
incorporated any acquisitions in 2020, and 2021. We assume bolt-on
M&A spend of about EUR300 million per year from 2022.

"Despite the dilution of its ownership stake, JAB (A-/Negative/--)
retains control of the group.  We understand that JAB will have
five representatives at JDEP's board level (13 members in total),
with two representatives from Mondelez. We think that the public
listing will improve the corporate governance rules and the
transparency of financial policy targets. Furthermore, we view the
team as experienced and knowledgeable of overall industry dynamics.
As owner, JAB has a track record of achieving some of the group's
operational and financial key performance indicators, such as
maintaining stable overall market share, while expanding the
business profitably and launching new products.

"Our issuer credit ratings on JDEP and JDE are not linked to that
on JAB. Despite JAB's long-term interest in building a pure play
champion in the global coffee industry, we consider the group to be
nonstrategic to the holding company. As such, we do not think JAB
would jeopardize its own credit quality by providing extraordinary
support to JDEP, but will rather maintain an arms-length
relationship with it. We also note that there are no cross-default
clauses under the credit agreements.

"Our issuer credit rating on JDE is aligned with that on JDEP,
reflecting our assessment of its status with the group as core. JDE
accounts for the vast majority of the business, about 86% of
revenues and 92.5% of earnings before interest and taxes (EBIT) in
2019. JDE's brands boast leading market positions in some growing
Emerging Markets, most notably Eastern Europe and Latin America,
which makes it a main growth driver of the business.

“zThe positive outlook reflects that we could raise the ratings
on the group, and on rated facilities at the JDE level, to 'BBB-'
in the next 12-18 months. We may take this action if the group is
successfully navigating the ongoing disruption in the out-of-home
and coffee retail channels due to the COVID-19 pandemic, and
generating solid discretionary cash flow that it uses to reduce
leverage. Assuming adherence to its prudent and publicly-stated
financial policy targets, we forecast adjusted debt to EBITDA to
fall below 3.0x by the end of 2021.

"We could revise the outlook to stable if, contrary to our current
base case, we do not see any de-leveraging and adjusted debt to
EBITDA remains above 3.0x. In our view, such a scenario is more
likely to occur if the group were to engage in a large acquisition,
or a series of smaller bolt-ons, thus demonstrating lack of
commitment to its publicly-stated financial policy.

“zOn an organic basis, we estimate that if forecast adjusted
EBITDA margins fall by 200 basis points, this could prevent the
group reducing adjusted debt to EBITDA to below 3.0x by the end of
2021. This could occur if we see competitive pressure building in
the retail channel, and if demand in the out-of-home and retail
coffee store channels does not rebound from depressed levels this
year."


SIGMA HOLDCO: Fitch Affirms 'B+' IDR Following EUR375MM Loan Add-on
-------------------------------------------------------------------
Fitch Ratings has affirmed Dutch food group Sigma Holdco BV's
Long-Term Issuer Default Rating at 'B+' with a Negative Outlook.
Fitch also affirmed the rating of 'BB-'/RR3 on the senior secured
facilities issued by Upfield US Corp and Upfield B.V and the
'B-'/RR6 rating applicable to the senior unsecured notes. This
follows the increase of the term loan B by EUR375 million, with
proceeds used to fund the acquisition of Arivia in January 2020.

The Negative Outlook reflects Fitch's view that the scope for Sigma
to significantly de-leverage by 2021 has narrowed following the
completion of the acquisition of plant-based cheese company Arivia,
mostly funded by debt. Moreover, the risk that management could use
the company's significant cash flow generation for bolt-on M&A
activity has increased. Better visibility of the financial policy
and the use of cash for acquisitions or debt reduction will drive
the ratings trajectory.

Sigma's 'B+' IDR continues to reflect the company's strong business
profile, and its expectation of strong free cash flow generation
once the carve out from Unilever NV/PLC is completed and marketing
expenses return to a lower level than that budgeted over 2020-2021
for the relaunch of the company's products. Fitch also acknowledges
the strategic fit of Arivia, which allows Sigma to enter the
plant-based cheese category.

The rating remains constrained by the challenge of reversing the
trend of revenue declines in developed markets, the company's high
leverage, and some remaining risks of fully completing it carve-out
from Unilever while executing its growth and turnaround strategy.

KEY RATING DRIVERS

Acquisition Delays Deleveraging Trajectory: Excluding one-off cash
expenses of EUR271 million incurred in 2019 mainly related to its
separation from Unilever and restructuring, Fitch calculates funds
from operations gross leverage of around 7.5x for 2019 and,
excluding preemptive drawings under the RCF during 2020, project an
increase to 8.3x in 2020 as a result of EUR375 million debt taken
on to fund the acquisition of Arivia. This additional debt delays
the reduction of leverage towards 7.0x (which is the maximum level
consistent with the company's 'B+' IDR) by one year to 2022.
Moreover, Fitch believes the transaction signals the heightened
propensity of the owners or management to allocate surplus cash to
M&A.

Turnaround for Margarine Sales: Sigma's product portfolio centres
around margarine, a family of products that, under its former owner
Unilever, has been in long-term decline in the group's core
developed markets. This is due to changing eating habits and
consumer perceptions of the health benefits and flavour of
margarine compared with butter. However, margarine continues to
benefit from its lower price. The group is in the early stages of a
major communication, product innovation and relaunch plan to turn
around the perception of its products, leveraging on the recent
trends favouring consumption of plant-based food products. The
results of this strategy since 2Q19 have been encouraging, with
revenues finally reporting mild organic growth.

Carve-out Completion: Sigma acquired the spreads and margarine
business of Unilever in July 2018 and between 2H19 and 1Q20 has
made significant progress in it carve-out process. This includes
investments in its own back-office, headquarters, IT infrastructure
and a dedicated sales force, as it had initially only taken
ownership of its manufacturing operations and brands. Management
reports that the process has run smoothly so far in 2020 but Fitch
believes trading performance may have been slightly held back by
the transition.

Sigma exited transaction services agreements with Unilever in the
UK, Switzerland and 15 EU markets on January 1, 2020, followed by
the US and the remaining five markets on April 1, 2020. Having now
exited 95% of its TSA, it expects to have exited the remainder by
June 2020.

Upside from Cost Savings: The new owners believe that Sigma can
re-organise operations in a more cost-effective manner than under
its previous ownership and have identified cost-savings
opportunities in each area of operation. These include lower
procurement costs, production efficiency improvements, lower
overheads and a more efficient allocation of marketing spend.
Overall, management is targeting around EUR200 million of cost
savings by 2021. Fitch believes these will be mostly achievable by
the end of 2022, having suffered some delays as management has so
far mainly focused on the carve-out process. As of 1Q20, cost
savings of EUR78 million had been realised.

Additionally, management is aiming to achieve EUR146 million
savings following the carve-out, of which EUR128 million has
materialised and the remainder are expected to crystallise once
carve-out is completed by mid-2020. Fitch expects the majority of
those carve out savings to be reinvested in marketing.

Expected EBITDA Growth: The combination of a mature business
profile with strong market positions enabled Sigma to achieve
EBITDA margins of about 22% over 2015-2017, which grew to 24% in
2018-2019. This is already superior to many packaged food
companies, but Fitch projects a further increase to 28% by 2022,
benefiting from revenue stabilisation and cost savings, which
should be only partly offset by higher re-investment in marketing
and sales efforts. Solid profitability remains a strong credit
supporting factor for the 'B+' IDR. However, for 2020, Fitch
expects the margin to remain at 24.3% for 2020 due to the
disruption from the intensification of the carve-out process.

Superior Cash Flow Generation: FCF was close to zero in 2019,
pressured by the impact of EUR271 million non-recurrent costs in
relation to the carve-out process and the implementation of the
cost-restructuring programme. As Fitch expects one-off charges for
restructuring would disappear, FCF should significantly improve to
close to 12% of sales in 2021, further growing to above 13% of
sales in 2022, mitigating long-term refinancing risk.

Global Category Leader: The rating reflects Sigma's global number
one position in the global margarine market, with a 59% share in
2018. Also, its sales are over three times larger than the next
company in its broader reference market of butter and margarine. It
has market shares of over 50% in the key margarine markets of the
US, Germany, the UK and Netherlands and is leader in another 40
markets. It also sells vegetable fat-based creams and spreadable
melanges (a mixture of butter and margarine). However, Sigma's
position has been challenged by innovative new entrants such as St.
Hubert in France and Fitch believes continued innovation will be
key to defending its strong position.

DERIVATION SUMMARY

Thanks to a higher than average EBITDA margin and very low capex
needs, Sigma is capable of generating significantly higher free
cash flow than most packaged food companies of comparable revenue
size. These considerations also apply for Sigma when Fitch compares
it with consumer goods companies such as Sunshine Luxembourg VII
S.á.r.l (Galderma) or Walnut Bidco Plc (Oriflame) (both rated
B/Stable). Sigma's profits also benefit from comparably better
stability than Galderma and Oriflame, despite the long-term decline
in Sigma's sales from its core product (margarine). However, this
is balanced by Sigma's higher leverage than Oriflame.

KEY ASSUMPTIONS

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

  - Annual revenue growth of 1.5%-2% for underlying business,
thanks to stabilisation in developed markets and mid-single digit
growth in emerging markets benefiting from higher marketing efforts
and innovation included in the business plan; Overall 4% annual
growth thanks to growth of the Arivia portfolio and contribution
from its assumption of annual bolt-on M&A activity.

  - No major commodity price shocks.

  - EBITDA margin (after all marketing costs) improving towards 28%
in 2022 (24% in 2019) driven mostly by cost-base rationalisation
and benefits from the integration of the Arivia acquisition.

  - Capex of around EUR70 million a year and working capital
absorption of EUR30 million per year.

  - EUR150 million per year bolt-on M&A spend.

  - Revolving credit facility (RCF) pre-emptive drawings of EUR688
million during 1Q20 assumed to be repaid between 2H20 and 1H21.

Fitch's Key Recovery Assumptions

  - The recovery analysis assumes that Sigma would remain a going
concern in restructuring and that it would be reorganised rather
than liquidated. Fitch has assumed a 10% administrative claim in
the recovery analysis.

  - The EBITDA estimate reflects Fitch's view of a sustainable,
post-reorganisation EBITDA level of EUR560 million, on which Fitch
bases the enterprise value, implying a 20% discount to FY19
pro-forma EBITDA (including Arivia) of EUR700 million; a level at
which the capital structure would become unsustainable.

  - Fitch also assumes a distressed multiple of 6.0x, reflecting
Sigma's comparative size, leading market positions and high
inherent profitability compared with sector peers.

  - Fitch assumes Sigma's EUR700 million RCF would be fully drawn
in a restructuring scenario.

Its waterfall analysis generates a ranked recovery for TLB
creditors in the 'RR3' band, indicating a 'BB-' instrument rating
assigned to the secured debt, one notch above the IDR. The
waterfall analysis output percentage on current metrics and
assumptions is 59%. Conversely, its analysis generates a ranked
recovery in the 'RR6' band, indicating a 'B-' rating for the
unsecured notes with 0% recovery expectations on current metrics
and assumptions.

RATING SENSITIVITIES

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

  - Reversal of revenue decline, indicated by successful
stabilisation in core developed markets and mid-single digit growth
in emerging markets.

  - Evidence that the cost-savings strategy is allowing the EBITDA
margin to remain above 24% without compromising marketing efforts.

  - Higher visibility on M&A and conservative financial policies
leading to FFO gross leverage below 6.0x and FFO fixed charge ratio
above 3.0x.

  - Annual FCF growing to at least EUR350 million.

Factors that could, individually or collectively, lead to a
revision of the Outlook to Stable from Negative:

  - Evidence that the company has finalised its carve-out process
without deviation from expected cash costs and targeted cost
savings.

  - Recovery of revenue performance with a stabilisation to plus or
minus 1% in organic terms while maintaining FCF margin in the high
single digits.

  - A financial policy demonstrating visibility that FFO gross
leverage is reducing to 7.5x by 2021 and trending towards 7.0x in
the medium term.

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

  - Failure to execute on the carve-out and product relaunch
strategy, compromising the delivery of the company's EBITDA growth
targets.

  - Aggressive financial policy leading to expectation that FFO
gross leverage would remain above 7.5x after 2021.

  - FFO fixed charge ratio below 2.0x.

  - Annual FCF below 5% of revenue.

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

Comfortable Liquidity: The financing package backing the
acquisition of Flora Foods Group by private equity house Kohlberg
Kravis Roberts was issued at opco and holdco level. Sigma HoldCo's
debt structure includes EUR4.375 billion senior secured
covenant-light TLB maturing in 2025, two tranches of senior
unsecured notes totalling EUR1.1 billion maturing in 2026 and a
EUR700 million senior secured RCF.

The TLB was originally composed of four tranches in different
currencies - a EUR2.0 billion, a EUR749 billion equivalent US
dollar tranche, a EUR478 million equivalent zloty tranche, and a
EUR803 million equivalent sterling tranche - of which the US dollar
one is amortising 1% per year (0.25% per quarter). Additionally, in
January 2020 the TLB was upsized by EUR375 million to support the
financing of the EUR420 million disbursement for the acquisition of
Arivia.

Long-term liquidity profile is comfortable given the approximately
EUR100 million of cash on balance sheet at end of 2019, which
should gradually strengthen, thanks to the group's high FCF
generation, which allows fast accumulation of cash on balance sheet
from 2021, after completing the carve-out in 2020. FCF will be in
the range of EUR340 million to EUR430 million per year over
FY21-FY23. During 1Q20 Sigma preemptively drew the majority of its
RCF (EUR688 million), but Fitch assumes it will fully repay these
drawings over 2H20 and 1H21.

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

Sigma Holdco BV: Exposure to Social Impacts: 4

Sigma has an ESG Relevance Score of '4' for Exposure to Social
Impacts as shifts in consumer preferences away from the company's
products have represented a challenge for Sigma historically.
However, trends are reversing with an increasing consumer
preference for healthier perceived plant-based products such as
Sigma's. Coupled with higher investments in marketing following the
carve-out from Unilever could lead to a successful and material
revenue trend turnaround. This ESG score currently has a negative
impact on the credit profile, and is relevant to the rating in
conjunction with other factors. However, once the market trend for
plant-based products consolidates further this risk is expected to
be significantly reduced.

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(ies),
either due to their nature or the way in which they are being
managed by the entity(ies).

Upfield US Corp      

  - Senior secured; LT BB-; Affirmed

Upfield B.V.      

  - Senior secured; LT BB-; Affirmed

Sigma Holdco BV

  - LT IDR B+; Affirmed

  - Senior unsecured; LT B-; Affirmed



===========
R U S S I A
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MOSCOW MORTGAGE: Moody's Reviews Ba3 Deposit Ratings for Downgrade
------------------------------------------------------------------
Moody's Investors Service placed the following ratings of Moscow
Mortgage Agency on review for possible downgrade: the bank's Ba3
long-term local and foreign currency deposit ratings, its b1
Baseline Credit Assessment and adjusted BCA, its long-term
Counterparty Risk Assessment of Ba2(cr) and long-term local and
foreign currency Counterparty Risk Ratings of Ba2. The outlook on
the long-term deposit ratings, as well as the issuer outlook, was
changed to ratings under review from stable. Concurrently, Moody's
affirmed MMA's short-term CR Assessment of Not Prime(cr), as well
as its short-term deposit ratings and short-term CRRs of Not
Prime.

RATINGS RATIONALE

The review for possible downgrade reflects the potential credit
negative impact of MMA's planned merger with Bank Solidarnost
(Solidarnost; not rated), following the acquisition of 100% of
MMA's shares by Solidarnost's controlling shareholder, JSC
Zarubezhenergoproekt. The change of ownership and forthcoming
merger create uncertainty regarding the probability of support for
MMA and the merged bank from the City of Moscow (Baa3 stable),
while the standalone credit profile of the merged entity will
likely be weaker than that of MMA, given Solidarnost's poor
financial metrics and its status under financial rehabilitation.

On June 16, the Central Bank of Russia announced that MMA will
merge with Solidarnost and, concurrently, cease to exist as a
separate legal entity. Solidarnost has been in state-led financial
rehabilitation since 2013, and in April 2020 this was extended
until 2030. Solidarnost's assets are approximately twice those of
MMA, yet it has a low capital buffer, measured by the ratio of
tangible common equity to statutory risk-weighted assets, while
MMA's capital cushion is solid. Unlike MMA, whose profits have
recently been volatile but positive, Solidarnost was loss-making
both at the bottom-line and pre-provision in 2019. The asset
quality is similar at both banks, as they have high problem loans,
yet IFRS9 Stage 3 loans are fully covered by loan loss reserves.

The negative impact on MMA's capital and profitability will be
partially offset by improvements in the merged bank's funding
profile, given Solidarnost's sizeable and granular customer deposit
base, consisting predominantly of retail customer funds. This is in
contrast to MMA; whose deposit base is very highly concentrated.
The liquidity cushion of MMA is higher than that of Solidarnost,
but it will remain solid for the merged bank.

Governance considerations, specifically, uncertainty regarding the
bank's strategy after merger, were a key driver of this rating
action. The change of ownership and upcoming merger poses risks to
the continuity of MMA's business model, which strongly depends on
the Moscow government's programmes and the government's ongoing
willingness to involve MMA in them. In particular, the bank is
involved in social housing programmes and, since recently, the
programmes for supporting Moscow-based export-oriented enterprises.
MMA's funding is highly concentrated on municipal companies, as
well as interest-free accounts opened for the allocation of housing
subsidies.

MODERATE PUBLIC SUPPORT

The one-notch uplift of MMA's Ba3 deposit ratings above its b1 BCA
results from Moody's view of a moderate probability of support from
the City of Moscow. This assessment will be subject to review,
given that the city government no longer controls 100% of the
bank.

THE FOCUS OF THE REVIEW FOR MOSCOW MORTGAGE AGENCY

The review for downgrade on MMA's ratings will focus on the merged
bank's ownership structure and ultimate beneficiaries, its
strategy, including the degree of involvement in the City of
Moscow's programmes, and the likely nature of of the merged bank's
financial metrics.

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

A positive rating action on MMA's ratings is currently unlikely,
given the review for possible downgrade. However, the ratings may
be confirmed if the bank's strategic link with the City of Moscow
remains substantial and the pressure on its financial metrics is
contained.

A lower probability of support for the merged entity from the city
or a lower BCA would result in a downgrade of the bank's long-term
deposit ratings. MMA's BCA could be downgraded if the merger leads
to a significant deterioration in the bank's capital levels,
profitability or liquidity profile.

LIST OF AFFECTED RATINGS

Issuer: Moscow Mortgage Agency

On Review for Downgrade:

Adjusted Baseline Credit Assessment, Placed on Review for
Downgrade, currently b1

Baseline Credit Assessment, Placed on Review for Downgrade,
currently b1

Counterparty Risk Assessment, Placed on Review for Downgrade,
currently Ba2(cr)

Long-term Counterparty Risk Ratings, Placed on Review for
Downgrade, currently Ba2

Long-term Bank Deposits, Placed on Review for Downgrade, currently
Ba3, Outlook Changed to Ratings Under Review from Stable

Affirmations:

Counterparty Risk Assessment, Affirmed NP(cr)

Short-term Counterparty Risk Ratings, Affirmed NP

Short-term Bank Deposits, Affirmed NP

Outlook Actions:

Outlook, Changed to Ratings Under Review from Stable

PRINCIPAL METHODOLOGY

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


NIZHNEKAMSKNEFTEKHIM PJSC: Moody's Reviews Ba3 CFR for Downgrade
----------------------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
Ba3 corporate family rating and the Ba3-PD probability of default
rating of Nizhnekamskneftekhim PJSC. The outlook has been changed
to ratings under review from stable.

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

The action reflects Moody's view that the company's exposure to
rubbers market, which accounts for around 40% of total revenue and
close to 80% of exports revenue of NKNK, that was negatively
affected by the coronavirus outbreak as well as continuing price
pressure on polyolefins could result in a material, up to 30%-40%,
reduction in EBITDA in 2020 with only a partial recovery in 2021.
Coupled with an active investment stage of NKNK's new naphtha
cracker and polyolefins project, this could drive the company's
leverage metrics to more than 5.0x measured by adjusted gross
debt/EBITDA for a prolonged period of time. This is a material
weakening in the context of Moody's 3.0x-3.5x guidance for this
rating. Under this scenario, the company would also breach the 3.5x
net debt/EBITDA covenant embedded in its debt documentation.

The review will assess the probability that the build-out of a
large project amid a protracted downturn in the company's markets
would cause a more pronounced and prolonged deviation of its
financial profile from the rating guidance than the agency
currently expects.

The review will focus on: (1) NKNK's operating and financial
performance in June and July 2020 when its key customers in the
tire manufacturing industry will have largely resumed operations;
(2) the management's estimates of profitability and cash flow
generation levels in 2020-21 given favourable feedstock (naphta)
costs; (3) any revisions of the investment and funding plans given
changed macroeconomic conditions and developments in the ethylene
market; and 4) the management's willingness and ability to
proactively resolve a potential covenant breach under debt
instruments documentation.

Moody's would target to resolve the review within two months of
placement of the company's ratings on review.

Nizhnekamskneftekhim PJSC's Ba3 corporate family rating is
underpinned by the company's (1) strong profitability, low
leverage, and sizeable cash reserves as of end of December 2019;
(2) balanced product mix; (3) long-term contractual access to
low-cost feedstock; and (4) significant share of export sales,
which mitigates foreign-currency risks. NKNK's rating is
constrained by (1) its susceptibility to risks inherent to the
volatile petrochemical industry and, in particular, materially
weakened rubber markets that are negatively affected by reduced
demand from the tire industry; (2) its exposure to risks associated
with the recently launched, predominantly debt-funded, large
polyolefin project; and (3) vulnerabilities associated with NKNK's
single-site location and moderate size. NKNK is exposed to the
operating environment in Russia (Baa3 stable) and Tatarstan (Ba1
stable), because the company generates half of its revenue in
Russia and has all of its production facilities and some of its
major raw materials suppliers located in Tatarstan.

NKNK investment project involves construction of a naphtha cracker
with an annual capacity of 600,000 tonnes of ethylene, and PP and
PE production units. The project, valued at around EUR2.1 billion,
will be 85% funded through long-term borrowings, including those
guaranteed by export credit agencies. No funding has been arranged
for the polymer plant, the second stage of the project, which will
require financing in 2020. NKNK plans to complete the construction
by 2022-23. The facility will double the company's basic polymer
production capacity.

LIQUIDITY

NKNK has a benign debt maturity profile with no debt repayments
until the fourth quarter of 2021, with 60% of committed investment
until Q3 2021 pre-funded with signed favourably -priced commercial
loans and export credit facilities. NKNK's liquidity is supported
by RUB34 billion (around $500 million) cash balances as of the end
of March 2020.

RATIONALE FOR THE OUTLOOK

The outlook on NKNK's ratings is under review.

Upward pressure on NKNK's rating is unlikely in the next three
years, given the anticipated material increase in leverage and the
implementation risks of the olefin project.

Conversely, 1) a multi-notch downgrade of Russia's sovereign rating
and Tatarstan's sub-sovereign rating, 2) a material deterioration
in the credit quality, with debt/EBITDA rising above 3x-3.5x and
retained cash flow/debt falling below 20%, both on a sustained
basis, as a result of the materialised project risks or its
weakened market position, and 3) a material deterioration in
liquidity, resulting from unfunded project investment commitments
would exert negative pressure on the ratings.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Moody's characterizes the risk to the commodity chemical sector as
"Emerging -- Elevated Risk". Air, soil and water pollution have
been and are likely to remain the primary environmental risks for
this sector. In 2019, within the frame of the ongoing 4th
Environmental Program, Nizhnekamskneftekhim PJSC carried out 73
nature protection measures with over 2.15 billion rubles funded. In
2019, the Company's environmental activities allowed to decrease
the consumption of river water by 2.03 million cubic meters, the
volume of wastewater - by more than 3.27 million cubic meters, air
emissions - by 586 tons, generation of nonutilizable waste products
- by 1.1 thousand tons.

Governance risks are an important consideration for all debt
issuers and are relevant to bondholders and banks because
governance weaknesses can lead to a deterioration in a company's
credit quality, while governance strengths can benefit a company's
credit profile. Nizhnekamskneftekhim PJSC has a concentrated
ownership structure. AO TAIF, and investment fund, owns more than
50% of NKNK. There are no other shareholders with more than 20%
ownership. The concentrated ownership structure creates the risk of
rapid changes in the company's strategy and development plans,
revisions to its financial policy and an increase in shareholder
payouts that could weaken the company's credit quality. Independent
directors make up less than one-third of the Board of Directors.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Chemical
Industry published in March 2019.

Nizhnekamskneftekhim PJSC is a major Russian petrochemical company
located in the Republic of Tatarstan. NKNK's eight core production
units produce rubber, plastics, monomers and other petrochemicals,
and they are located on two adjacent production sites that have
centralised transportation, energy and telecommunication
infrastructure. In 2019, the company reported sales of RUB179
billion and adjusted EBITDA of RUB33.5 billion. The company derived
around half of its revenue from export activities.


[*] RUSSIA: Wave of Bankruptcies Expected When Moratorium Lifted
----------------------------------------------------------------
Evgenia Pismennaya and Anna Andrianova at Bloomberg News report
that Russia's US$1.6 trillion economy is going to be dealt another
blow when a moratorium is lifted on companies filing for
bankruptcy.

The measure, which was a condition of government pandemic support,
helped protect healthy businesses from creditors but left those
that won't survive limping along as zombies, Bloomberg states.  It
expires in October, Bloomberg notes.

"It's like a life-support machine for companies -- if there isn't
treatment, they will just die when it's switched off," Bloomberg
quotes Yuriy Khalimovsky, a director at Deloitte's legal service in
St. Petersburg, as saying.  "When the moratorium is lifted there
will be a big wave of bankruptcies."

The surge in corporate failures threatens to compound an already
painful year for Russia's economy, which is heading for its worst
slump in more than a decade, Bloomberg discloses.

About a third of companies said at the end of April that they are
at risk of bankruptcy, Bloomberg relays, citing a survey conducted
by the Center for Strategic Research in Moscow.

"As soon as the moratorium ends, a domino effect will begin,"
Alexander Sinitsyn, who heads the research center, as cited by
Bloomberg, said.  "Companies will go one after the other."

Big companies are already starting to review contracts to protect
themselves against subcontractors going bust, according to
Deloitte's Khalimovsky, Bloomberg relates.

When companies are allowed to go under, they will still have to
face Russia's grueling bankruptcy procedures, which often leave
entrepreneurs with a bad reputation and unable to start up again,
Bloomberg notes.

Companies in the consumer sector were hit hardest during two months
of lockdown and many firms are still suffering from a slump in
consumer demand even as restrictions are lifted, Bloomberg
recounts.




=========
S P A I N
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CAIXA PENEDES 1: S&P Raises Class C RMBS Notes Rating to 'B(sf)'
----------------------------------------------------------------
S&P Global Ratings affirmed and removed from CreditWatch negative
its rating on CAIXA PENEDES 1 TDA Fondo de Titulizacion de Activos'
class A notes. At the same time, S&P has raised its ratings on the
class B and C notes.

S&P said, "The rating actions follow our May 6, 2020, CreditWatch
negative placement of our rating on CAIXA PENEDES 1's class A
notes. Our review reflects the application of our relevant criteria
and our full analysis of the most recent transaction information
that we have received, and considers the transaction's current
structural features.

"We have also considered our updated market outlooks and additional
COVID-19 stresses to account for the current macroeconomic
environment. In addition to applying increased base foreclosure
frequencies at the 'B' to 'AA+' ratings, we have tested the
sensitivity of the transaction to stressed payment holidays on 25%
of collections received over the first six months, projected
arrears, and delayed the time to recovery by 6 and 12 months as
part of our analysis of this transaction.

"Arrears have slightly increased since our previous full review,
but they remain well below our Spanish RMBS index. Total arrears
stand at 1.7% as of April 2020, an increase from 0.7% as of
December 2017. Of the pool, only 0.27% of the loans are in legal
moratoria payments due to the COVID-19 credit impact. All of them
will finish the legal moratoria in up to two months. However, we
expect that some of these loans will adhere to the sector moratoria
promoted by the banking sector initiative or the servicer's own
initiative if the borrowers are still facing liquidity issues after
the legal has elapsed.

"After applying our European residential loans criteria to this
transaction, the overall effect in our credit analysis results is
higher credit coverage for 'BBB' and below rating levels compared
with our previous full review. Our base foreclosure frequencies
have increased, although this is partially offset by the lower
weighted-average life (WALS) because the transaction benefits from
a higher repossession market-value decline and lower current
loan-to-value (LTV) ratio as the collateral is fully amortizing."

  Credit Analysis Results
         WAFF     WALS
  AAA    18.55%   4.89%
  AA     13.02%   2.73%
  A      9.86%    2.00%
  BBB    7.54%    2.00%
  BB     5.18%    2.00%
  B      3.38%    2.00%

  WAFF--Weighted-average foreclosure frequency.
  WALS--Weighted-average loss severity.

The class A, B, and C notes' credit enhancement has increased to
13.5%, 7.24%, and 2.74%, respectively, due to the notes'
amortization, despite the pro rata amortization because the reserve
fund is at its floor level (i.e., EUR5 million). The improvement in
cash flow results is due to the increase in credit enhancement,
which has offset the increase in required credit coverage.

There are interest deferral triggers in this transaction, based on
gross cumulative defaults, to allow for deferral of interest junior
in the waterfall if the transaction's performance deteriorates. The
triggers are set at 7.5% and 4.9% for the class B and C notes,
respectively. Currently, the level of gross cumulative defaults as
a percentage of the closing pool balance is 3.49%.

S&P said, "Under our counterparty criteria, the swap documentation
caps our ratings on this transaction at 'AA (sf)'. The replacement
framework for the transaction bank account does not limit the
maximum potential rating on the notes.

"Our updated credit and cash flow analysis indicates that the
available credit enhancement for the class A notes is commensurate
with the currently assigned rating. In reviewing this rating, we
considered the relative improvement in credit enhancement and its
effect on our cash flow results since our last full review in the
context of deteriorating macroeconomic conditions. Therefore, we
have affirmed and removed from CreditWatch negative our rating on
the class A notes.

"We have raised to 'BBB- (sf)' and 'B (sf)' our ratings on the
class B and C notes, respectively. Our updated credit and cash flow
analysis indicates that the available credit enhancement for the
class B and C notes is commensurate with higher ratings than those
we assigned. However, in reviewing our ratings on these classes of
notes, in addition to applying our credit and cash flow analysis,
we considered other factors. First of all, we considered the
relative position of those classes in the capital structure and the
significantly lower credit enhancement compared to the senior
notes, as well as the deteriorating macroeconomic conditions."

The deteriorating macroeconomic environment could potentially
negatively affect the transaction's collateral performance, with
the potential for reduced collections due to payment moratoriums
due to COVID-19. As aforementioned, loans subject to COVID-19
moratoriums are very limited in this portfolio. S&P said, "Our
credit and cash flow analysis and related assumptions also consider
the sensitivity of the transaction to the potential repercussions
of the coronavirus outbreak, namely a longer recovery timing and
additional delinquency stresses. Considering these factors, we
believe that the available credit enhancement for each class of
notes is commensurate with the assigned ratings."

S&P said, "The analytical framework in our structured finance
sovereign risk criteria assesses a security's ability to withstand
a sovereign default scenario. These criteria classify the
sensitivity of this transaction as low, so the highest rating that
we can assign to the tranches in this transaction is six notches
above the unsolicited sovereign rating on Spain. Our sovereign risk
criteria do not limit the maximum potential ratings on the class A
and B notes, but cap the rating on the class C notes at the
sovereign rating level, of 'A'."

S&P Global Ratings acknowledges a high degree of uncertainty about
the evolution of the coronavirus pandemic. The consensus among
health experts is that the pandemic may now be at, or near, its
peak in some regions but will remain a threat until a vaccine or
effective treatment is widely available, which may not occur until
the second half of 2021. S&P said, "We are using this assumption in
assessing the economic and credit implications associated with the
pandemic. As the situation evolves, we will update our assumptions
and estimates accordingly."


GRUPO ANTOLIN-IRAUSA: Moody's Confirms B3 CFR, Outlook Negative
---------------------------------------------------------------
Moody's Investors Service has confirmed the B3 corporate family
rating and senior secured instrument ratings of Grupo
Antolin-Irausa, S.A. Concurrently, Moody's has confirmed the
probability of default rating at B3-PD. The outlook has changed to
negative from ratings under review.

This rating action concludes the review for downgrade process,
which was initiated on March 26, 2020.

"The rating confirmation is driven by the maintenance of an
adequate liquidity, following the successful covenant waiver, and
the expectation that a recovery in global light vehicle sales will
allow the company recover EBITDA to levels, which keep debt/EBITDA
at a level appropriate for the B3.", said Matthias Heck, a Moody's
Vice President -- Senior Credit Officer and Lead Analyst for Grupo
Antolin. "The negative outlook reflects the ongoing challenging
sector environment in the automotive industry, and the group's very
low margins." added Mr. Heck.

RATINGS RATIONALE

On June 8, 2020, Grupo Antolin announced that it has agreed a
suspension of its maintenance covenants with the lenders of its
EUR200 million revolving credit facility up to and including June
2021. With the cash on balance of EUR460 million at the end of
April 2020 (including cash from the currently fully drawn RCF),
Moody's expects that the company has sufficient liquidity over the
next 12 months and the ability to finance a cash drain of around
EUR150 million expected for Q2 2020, with the majority of it in the
months of May and June. The cash drain is driven by the
coronavirus-related production shutdowns at the beginning of this
quarter and the gradual ramp-up of production.

The confirmation of Grupo Antolin's B3 rating reflects Moody's
expectation that the company's liquidity remains adequate through a
very difficult year 2020, while leverage (Moody's adjusted debt /
EBITDA) will, after temporal increase to around 8x in 2020 (5.1x as
of December 2019), return into the range of 5.5x -- 6.5x, which
Moody's consider to be appropriate for the B3. This expectation is
supported by (i) Moody's expectation of a recovery in global light
vehicle sales from 2021, after a sharp drop in 2020, (ii) the
company's actions to mitigate the negative impact of the global
coronavirus outbreak by cost reduction and variabilization and
capex reduction (around 25% in 2020), and (iii) the operating
turnaround of the group's previously loss-making facilities in
Spartanburg and Alabama.

Moody's forecasts for the global automotive sector a 20% decline in
unit sales in 2020, with a steep year-over year contraction in the
first three quarters followed a modest rebound in the fourth
quarter. Moody's expects 2021 industry unit sales to rebound and
grow by approximately 11%. However, future demand for vehicles
could be weaker than its current estimates, the already competitive
environment in the auto sector could intensify further, and Grupo
could encounter greater headwinds than currently anticipated.

The widening spread of the coronavirus outbreak, deteriorating
global economic outlook, falling oil prices, and asset price
declines are creating a severe and extensive credit shock across
many sectors, regions and markets. The global automotive industry
is one of the sectors that will be most severely impacted by the
outbreak. Moody's regards the coronavirus outbreak as a social risk
under its ESG framework, given the substantial implications for
public health and safety.

The rating balances Grupo Antolin's (1) strong position in the
market for automotive interior products, (2) size and scale as a
tier 1 automotive supplier, (3) adequate liquidity, and (4)
resilience to raw material price volatility.

The rating also reflects (1) Grupo Antolin's exposure to the
cyclicality of the global automotive industry; (2) a highly
competitive market environment for interior products, with
relatively little growth prospects and high pricing pressure,
reflected by an EBITA margin of only 1.9% as of December 2019; (3)
its relatively high gross leverage of 5.1x as of the end of
December 2019; and (4) its relatively low free cash flow (FCF),
given its high capital spending and low operating profit margin.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects the negative impact that the global
coronavirus outbreak will have on Grupo Antolin's operating
performance, credit metrics and liquidity at least into 2021. In
this environment, it might be difficult for Grupo Antolin to
achieve operating profit margins (Moody's adjusted EBITA) of at
least 2%, which Moody's expects for the B3. Moreover, continued
negative free cash flows (Moody's adjusted) might further increase
the company's debt and leave leverage above 6.5x, which Moody's
considers as the maximum for the B3.

LIQUIDITY

As of the end of March 2020, the company's cash balance was around
EUR380.5 million, including proceeds from a EUR100 million drawdown
under its EUR200 million revolving credit facility, due June 2023.
Maintenance covenants of the RCF have been suspended up to and
including June 2021. Afterwards, test levels (net debt/adjusted
EBITDA less than 3.5x and EBITDA/financial expenses greater than
4.0x) apply. Absent of the expected automotive market recovery,
Moody's expects that the headroom under these covenants will be
limited.

As of April 2020, Grupo Antolin reported a cash position amounted
to EUR460 million, including proceeds from another EUR100 million
drawdown under the RCF. This implies a cash drain of EUR20 million
in April, and Moody's expects this could accumulate to up to EUR150
million in the second quarter. With the gradual ramp-up of
production after the lock-downs in early Q2, Moody's expects the
company's free cash flows to stabilize, with available cash
(including RCF availability) not falling below EUR300 million.

Grupo Antolin has no major debt maturities until 2022 and only
minor amounts of short-term debt maturities, most of which are
renewable credit facilities that are typically rolled over. From
2021 onwards, Moody's expects the group to generate break even or
slightly positive FCF, especially driven by lower capital spending
in times of challenging market conditions.

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

Given the current market situation, Moody's does not anticipate any
short-term positive rating pressure for Grupo Antolin. A
stabilization of the market situation leading to a recovery in
metrics to pre-outbreak levels could lead to positive rating
pressure. More specifically adjusted Debt/EBITDA would have to drop
back sustainably below 5.5x with an EBITA margin sustainably above
2.5%.

Further negative pressure would build if Grupo Antolin fails to
return to meaningful operating profit generation of the second half
of 2020 allowing it to stabilize its liquidity situation by
reducing the cash burn rate. A prolonged and deeper slump in demand
than currently anticipated leading to more balance sheet
deterioration and a longer path to restoring credit metrics in line
with a B3 credit rating (EBITA margin at least 2%, debt/EBITDA not
exceeding 6.5x on a sustained basis) could also lead to further
negative pressure on the rating.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Automotive
Supplier Methodology published in January 2020.

LIST OF AFFECTED RATINGS:

Issuer: Grupo Antolin-Irausa, S.A.

Confirmations, Previously Placed on Review for Downgrade:

LT Corporate Family Rating, Confirmed at B3

Probability of Default Rating, Confirmed at B3-PD

Senior Secured Regular Bond/Debenture, Confirmed at B3

Outlook Actions:

Outlook, Changed to Negative from Ratings Under Review

COMPANY PROFILE

Headquartered in Burgos, Spain, Grupo Antolin-Irausa, S.A. is a
family-owned tier 1 supplier to the automotive industry. It focuses
on the design, development, manufacturing and supply of components
for vehicle interiors, which includes cockpits, overheads
(headliners), door trims, and interior lighting components. In
2019, Grupo Antolin generated revenue of EUR5.2 billion.



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

STENA AB: S&P Affirms 'B+' Issuer Credit Rating, Outlook Negative
-----------------------------------------------------------------
S&P Global Ratings affirmed the 'BB-' rating on Stena AB and
maintained the '2'(75%) recovery rating on the senior secured debt
issuances. S&P also affirmed the 'B+' rating on the senior
unsecured notes, but revised the recovery rating to '4' (45%) from
'3'(65%), because of the group's increased unsecured obligations.

S&P is affirming the 'BB+' issuer credit rating on Stena AB.

Less traveling will hamper ferry operations in the second and third
quarter of 2020. S&P continues to expect a sharp decline in travel
due to the adverse effects of COVID-19. This will materially impair
demand for Stena's ferry services, the company's largest cash flow
contributor (about 40% of revenue and EBITDA in 2019). Stena, one
of the largest ferry operators in Europe, has a comprehensive
network of 21 routes in total, predominantly in Northern Europe,
with exposure to some of the largest export economies in the EU and
high passenger traffic (Germany, Sweden, and Denmark).

S&P said, "We believe that the impact of the COVID-19 related
restrictions on Stena's performance remains uncertain. Although
some countries have started to open for traveling it remains to be
seen how traveling habits and freight trading will evolve. Freight
volumes, although decreased, should nevertheless provide some
support to operations, however, since as much as 70% of Stena's
ferry revenue stream is from freight. Over the last month, Stena
kept most lines in operation, also because they are important for
trade, implying that operations should continue despite the
pandemic. We see a risk that EBITDA from ferry operations could
decline by as much as two-thirds from 2019 levels of SEK3.5
billion. This indicates that Stena in 2020 will benefit less from
its diversification, which includes exposure also to drilling, real
estate, and shipping.

"We now anticipate drilling will contribute negatively to earnings,
because a large part of the fleet is now uncontracted for the
remainder of the year. Since our last report in March, the contract
on Stena's drilling rig ICE Max has been cancelled. We therefore
now assume that EBITDA from drilling will be negative, in the range
of SEK800 million-SEK900 million because only one rig, Stena
Carron, is under contract for the full year. In our forecast, we
continue to assume some contract will be signed for 2021, albeit at
a low level, resulting in no meaningful earnings contribution from
drilling until nearer the end of 2021."

Stena's other business areas, although also affected, will help
compensate the COVID-19 downside. Other business lines continue to
provide support to credit ratios and mitigate pandemic-related poor
performance. S&P said, "With more than 70% of the real estate
business geared toward residential operations, we expect the
division to continue to deliver stable EBITDA contributions in 2020
and 2021. The shipping segment should be able to capitalize on the
relatively strong tanker charter rate conditions, and we have
revised our earnings forecast upward. We now expect shipping to
contribute about SEK2 billion-SEK2.5 billion to the group's 2020
EBITDA."

S&P said, "We expect weak ratios for 2020, with a moderate
improvement in 2021. We expect Stena's EBITDA to fall to about
SEK6.5 billion-SEK7 billion in 2020, down from about SEK9.2 billion
in 2019, resulting in adjusted leverage between 8x-9x (up from
about 6.5x in 2019). Our debt calculations now include an
adjustment for non-capitalized operating leases of SEK5.9 billion.
Given the high degree of uncertainty about how long the pandemic
will last, we are cautious about factoring a quick recovery after
2020. We believe that credit ratios will be weak in 2020, and we
assume only a gradual improvement in 2021, with debt to EBITDA
recovering below 7x.

"The negative outlook reflects uncertainty around the severity and
longevity of the COVID-19 pandemic and our view that Stena's EBITDA
performance and its financial leverage could deteriorate more than
we currently expect.

"We would lower the rating if we thought the impact of the pandemic
would result in continued depressed earnings from ferry operations
or negative contribution from drilling, or if any of the other
business lines were to underperform our base case, leading us to
expect debt to EBITDA would remain above 7.5x in 2021. This could
lead us to revise our view of the support the Stena's business
diversification provides to its credit profile. We would therefore
lower the rating if we believe that Stena's business lines ceased
to meaningfully contribute to the group's diversified earnings and
cash flow stability.

"We would also consider a downgrade if Stena's liquidity
deteriorated, and this was not offset by improved credit metrics,
for example. We note, however, that Stena has ample headroom under
our current strong liquidity assessment."

S&P would revise the outlook to stable if:

-- Travel and economic activity in Europe resumed at levels more
in line with those seen in 2019;

-- Stena's EBITDA generation, in particular in ferry operations,
rebounded; and

-- Its leverage ratio started to trend downward toward 7x.




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

GARRETT MOTION: Says Conditions Exist for Going Concern Doubt
-------------------------------------------------------------
Garrett Motion Inc. filed its quarterly report on Form 10-Q,
disclosing a net income of $52 million on $745 million of net sales
for the three months ended March 31, 2020, compared to a net income
of $73 million on $835 million of net sales for the same period in
2019.

At March 31, 2020, the Company had total assets of $2,254 million,
total liabilities of $4,300 million, and $2,046 million in total
stockholders' deficit.

The Company said, "We expect that our cash requirements in 2020
will primarily be to fund operating activities, working capital,
and capital expenditures, and to meet our obligations under our
debt instruments and the Indemnification and Reimbursement
Agreement, as well as the Tax Matters Agreement.  In addition, we
may engage in repurchases of our debt and equity securities from
time to time.  In light of the ongoing COVID-19 pandemic, on April
6, 2020, the Company fully drew the remaining funds available under
its revolving credit facility of approximately $470 million to
increase its financial flexibility in the current environment.  We
have historically funded our cash requirements through the
combination of cash flows from operating activities, available cash
balances and available borrowings through our debt agreements.  If
these sources of liquidity need to be augmented, additional cash
requirements would likely be financed through the issuance of debt
or equity securities; however, there can be no assurances,
particularly in light of the volatility in global financial markets
as a result of the COVID-19 pandemic, that we will be able to
obtain additional debt or equity financing on acceptable terms in
the future or at all.  Based upon our history of generating strong
cash flows, and subject to any acceleration of the obligations
under our Credit Agreement by and among us, certain of our
subsidiaries, the lenders and issuing banks party thereto and
JPMorgan Chase Bank, N.A., as administrative agent (the "Credit
Agreement"), or our other agreements, we believe we will be able to
meet our short-term liquidity needs for at least the next twelve
months.

"Our Credit Agreement contains financial covenants, including a
consolidated total leverage ratio covenant and a consolidated
interest coverage ratio covenant.  We were in compliance with our
financial covenants as of March 31, 2020.  However, as a result of
the impacts of the COVID-19 pandemic, we expect to be unable to
continue to comply with the consolidated total leverage ratio
covenant as early as June 30, 2020.  If we fail to comply with our
consolidated total leverage ratio covenant, an event of default
under the Credit Agreement would be triggered and our obligations
under the Credit Agreement or other agreements (including as a
result of cross-default provisions) may be accelerated.

"Our management has concluded that the foregoing conditions and
events raise substantial doubt as to our ability to continue as a
going concern.  The accompanying financial statements do not
include any adjustments or classifications that may result from the
possible inability of the Company to continue as a going concern
within one year after the issuance of the financial statements.

"Our management is in the process of negotiating with our lenders
to obtain an amendment to or a waiver from the consolidated total
leverage ratio covenant in our Credit Agreement.  However, there
can be no assurance that we will be successful in obtaining an
amendment or waiver."

A copy of the Form 10-Q is available at:

                       https://is.gd/gSJ1xw

Garrett Motion Inc. designs, manufactures and sells highly
engineered turbocharger and electric-boosting technologies for
light and commercial vehicle original equipment manufacturers
("OEMs") and the global vehicle and independent aftermarket. The
Company is based in Rolle, Switzerland.




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

DTEK RENEWABLES: S&P Puts 'B-' Issuer Credit Rating on Watch Neg.
-----------------------------------------------------------------
S&P Global Ratings placed its 'B-' rating on DTEK Renewables, a
Ukrainian renewable electricity producer, on CreditWatch with
negative implications.

DTEK Renewables faces an accumulation of payment arrears from the
guaranteed buyer.

DTEK Renewables only received 18% of cash payments for its
renewable electricity in March as of June 26th 2020, and 7% between
April and end-June. As of June 2020, DTEK Renewables' cash reserves
were about EUR15 million (excluding about EUR130 million proceeds
from the green bond issued in November 2019). If payments from the
guaranteed buyer fail to resume by August 2020, S&P expects DTEK
Renewables' liquidity and credit metrics to tighten, despite
significant curtailment of capital and operating expenditures
(capex and opex).

Since March 2020 -- the beginning of the lock-down in Ukraine --
DTEK Renewables' offtaker has struggled to pay the tariff to all
renewable producers in a timely manner. Like other renewable
electricity producers, DTEK Renewables sells its electricity to the
guaranteed buyer, a state-owned entity and the sole offtaker under
the FiT regime. In turn, the guaranteed buyer covers the cost of
FiTs via sales to the day-ahead market and through surcharges to
industrial end-users. However, given the difficult economic
situation in the Ukraine and very high level of renewable tariffs
payment arrears have accumulated across the whole electricity
chain.

DTEK Renewables' liquidity could come under more pressure if
payments for the green tariff do not resume by Sept. 1.

As of June 2020, DTEK Renewables only has around EUR15 million in
fully accessible cash in banks, plus EUR130 million in remaining
green bond proceeds (issued in November 2019) and around EUR50
million in DSRA and DSA accounts, which represent restricted cash
for bank debt and coupon payments. S&P said, "We understand that
the green bond proceeds are technically not restricted and the
company could use them for general corporate purposes without any
financial penalties, but would lose its green certificate. Still,
we note that the company does not plan to use the bond proceeds to
fund any liquidity shortfall for as long as possible; instead, it
plans to invest it in green projects once the new energy law is in
force and payments from the guaranteed buyer resume."

S&P said, "We understand that DTEK Renewables has very limited
debt/interest payments due in 2020, and has significantly cut its
growth capex. Still, we estimate the company's monthly cash needs
at about EUR25 million, therefore further accumulation of
nonpayments from the guaranteed buyer will pressure the company's
liquidity position, which could lead to negative rating action."

The new law expected to come to force in July cuts renewable
tariffs, but lays out the plan for resuming timely payments, though
execution is yet to be monitored

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 MOU to
restructure the green tariff support scheme. The memo stipulates
that renewable producers accept a voluntary cut of the green tariff
by 7.5% for wind and 15% for solar generators, respectively.
However, state authorities have committed to ensuring timely
payment for electricity generated in the future, once the law
enters into force and the guarantee buyer repays all outstanding
receivables accrued in 2020 by end-2021 (40% by the end of 2020 and
the remainder by the end of 2021). DTEK Renewables expects the MOU
to be enacted into law by July 2020, though S&P cannot rule out
delays and will continue to monitor how the law is implemented.

DTEK Renewables' ambitious growth plans are now unlikely to
materialize by the end of 2021.

S&P understands that DTEK Renewables' planned growth projects have
been on hold since March because of liquidity pressures and
uncertainty about the new energy law.

The memo signed by renewable producers and the government mentions
that to qualify for PPAs, new renewable projects need to be
constructed by July 1, 2020 for SPPs and Dec. 31, 2022 for WPPs at
the latest.

S&P said, "We now expect total capex for 2020 to be below EUR10
million, compared to over EUR300 million as per the company's
initial plan. In 2019, DTEK Renewables has secured PPAs (power
purchase agreements) for four solar power plants (SPPs; total
capacity of about 475MW). In November 2019, we had expected the
company to commission two solar plants amounting to 220 MW by the
end of 2020, and two more with 275 MW capacity by the end of 2021.
We now do not expect the company to build any SPPs as projects have
been on hold since March, which undercuts future EBITDA growth
expectations."

The CreditWatch placement reflects the potential for a downgrade
if:

-- S&P sees further pressure on liquidity, which could materialize
if payments from the guaranteed buyer do not resume as expected in
July-August; or

-- If the current FiT is revised downward more severely than
expected in the new energy law.

S&P would also monitor the company's ability and willingness to use
the green bond proceeds to cover any liquidity shortage.

S&P could affirm the rating if the new energy law that regulates
FiTs and repayment of outstanding receivables comes into force, and
payments by the guaranteed buyer resume.

S&P aims to resolve the CreditWatch within 60 days or earlier.


MARIUPOL CITY: Fitch Assigns 'B' LongTerm IDRs, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has assigned the Ukrainian City of Mariupol Long-Term
Foreign- and Local-Currency Issuer Default Ratings of 'B' with
Stable Outlook, a Short-Term Foreign-Currency IDR of 'B' and a
National Long-Term Rating of 'AA-(ukr)' with Stable Outlook.

The ratings reflect Mariupol's Standalone Credit Profile of 'b+',
resulting from a combination of a 'Vulnerable' risk profile and a
'aa' debt sustainability assessment. The SCP also factors in
national peer comparison. The IDRs are not affected by any
asymmetric risk or extraordinary support from the central
government, but are capped by the Ukrainian sovereign IDRs at 'B'.

KEY RATING DRIVERS

Risk Profile: 'Vulnerable'

Fitch assesses city's risk profile as 'Vulnerable', reflecting
'Weaker' assessments of the six key risk factors in combination
with the 'B' sovereign rating.

Revenue Robustness: 'Weaker'

The evolving nature of the national fiscal framework, dependence on
a weak counterparty for a material portion of the city's revenue
and weak revenue growth prospects drive the 'Weaker' assessment for
revenue robustness. The city's wealth metrics are close to the
national average, but significantly lag international peers.

Operating revenue is mostly made up of taxes (64%), notably
personal income tax (2019: 51% of operating revenue), as well as
property tax (6%) and single tax on SMEs (4%), growth prospects for
which are limited due to the weak economic environment and negative
trends in the local economy caused by the coronavirus pandemic.
Fitch projects Ukraine's GDP to shrink 6.5% in 2020 before
recovering 3.5% in 2021. Intergovernmental transfers from Ukraine's
central government have been declining since 2019, with further
decline in 2020 following amended responsibilities in the social
and healthcare sector, falling to 18% of operating revenue in 2020
(31% in 2019). Capital revenue has historically been low,
accounting for 1% of total revenue.

Revenue Adjustability: 'Weaker'

The city's ability to generate additional revenue in response to
possible economic downturns is limited. The city has formal
tax-setting authority over several local taxes and fees that
accounted for 10% of city's operating revenue in 2019 with two
property tax and single tax on SMEs the largest contributors.
However, affordability of additional taxation in response to
economic downturn is low, as it is constrained by both legally set
ceilings and high social-political sensitivity to tax increases.

Expenditure Sustainability: 'Weaker'

The city's expenditure framework is fragile, leading to its
'Weaker' assessment of its sustainability. The spending dynamic
during the last five years has been influenced by high, albeit
lowering, inflation and reallocation of spending responsibilities.
Currently, the city is largely responsible for education (23% of
total spending in 2019), social care (15%) and healthcare (10%),
which are of a non-cyclical nature. Due to the overall evolving
budgetary system in Ukraine, further reallocation of
responsibilities between government tiers is very likely, in
Fitch's view, while the risk of unfunded mandates transfer is
growing in the context of economic downturn.

Expenditure Adjustability: 'Weaker'

Fitch assesses the city's ability to curb spending in response to
shrinking revenue as weak due to the high rigidity of operating
expenditure and overall low per capita spending compared with
international peers. Operating expenditure is dominated by staff
costs (31% of opex in 2019) and social subsidies transfers (20%).
In total, the Fitch-estimated share of inflexible expenditure is
about 70% of spending.

The city's capex programme historically accounted for about 20% of
annual total spending in 2015-2019, offering some leeway in the
short term as worsened economic conditions may force the city to
re-channel part of the funds aimed at development to
socially-oriented spending. Over the longer term, pressure on capex
will persist as the city's infrastructure needs remain high due to
significant infrastructure underfinancing over a prolonged period.

Liabilities and Liquidity Robustness: 'Weaker'

The city operates under a weak national debt and liquidity
management framework due to the underdeveloped Ukraine capital
market. Like the majority of its national peers, Mariupol did not
borrow from the market and remained debt-free in 2015-2018.
Mariupol resumed borrowing in 2019 when it incurred a long-term
loan from International Finance Corporation (contracted EUR12.5
million, about EUR11 million withdrawn in 2019). The city operates
in a high interest-rate environment, although it is lower following
cuts to the reference rate to 6% in June (from 8% in April 2020 and
13.5% at end-2019).

Fitch has included the guaranteed incurred debt of the municipal
companies into "Other Fitch classified debt" and thus in the city's
adjusted debt, as many of those companies have been posting losses
in recent years and the city provides them with capital injections.
Mariupol supports investments in the city's infrastructure through
its municipal companies, which benefit from loans from the
international institutions like EBRD/EBI. The companies' debt
carries forex risk. It will grow in the medium term following
implementation of the investment projects.

The total value of the guarantees issued by the city was UAH2.5
billion (end-2019), but the actual debt withdrawn by the municipal
companies was low, just UAH64 million. This will grow in the coming
years, reaching UAH2.5 billion in 2024 following the projects'
implementation.

Fitch-adjusted debt excludes UAH60.7 million of interest-free
treasury loans contracted prior to 2014. As the loan was granted to
the city to finance mandates delegated by the central government
and will be written off by the state in the future, Fitch does not
include these treasury loans in its calculation of city's adjusted
debt, but in city's contingent liabilities.

Liabilities and Liquidity Flexibility: 'Weaker'

Mariupol's available liquidity is limited to the city's own cash
reserves, which averaged UAH330 million in 2015-2018 and increased
to UAH536 million at end-2019, of which 99% was unrestricted.
However, the city has reasonable access to loans from local banks
('b' rated counterparties) that justifies its 'Weaker' assessment
of the liquidity profile. There are no emergency bail-out
mechanisms from the national government due to the sovereign's
fragile fiscal capacity and weak public finances, which are
dependent on IMF funding for the smooth repayment of its external
debt.

Debt Sustainability 'aa'

Fitch classifies Mariupol as a type B local and regional
government, as it covers debt service from cash flow on an annual
basis. Fitch's rating-case scenario incorporates a negative shock
from the COVID-19 pandemic on city's economy and fiscal accounts.

Under Fitch's rating-case scenario, the debt payback ratio (net
adjusted debt-to-operating balance) - the primary metric of debt
sustainability assessment for type B LRGs - will deteriorate to
3.7x in 2024, from almost debt-free status in 2019, but will remain
still in line with a 'aaa' assessment. However, the short maturity
of the debt will lead to a weaker actual debt service coverage
ratio. Together with tightened conditions on the capital market
caused by the coronavirus pandemic, this could pressurise the
ADSCR, which may fall to 1.9x in the rating case ('a' category).
This led us to overriding the total assessment of debt
sustainability to the 'aa' category, which is also supported by the
fiscal debt burden gradually growing toward 80% in 2024.

With about 460 thousand inhabitants, Mariupol is located in
south-eastern Ukraine, on the north coast of the Sea of Azov, in
the Donetsk Region. The city is well-positioned among domestic
peers, but the economy significantly lags international peers, with
gross regional product per capita well below the EU average. The
city's economy is industrialised and dominated by metallurgy and
machine building. Financial planning, debt projections and
investment planning are based on a three-year cycle, while the
budget is subject to regular amendments amid instability in
political and geopolitical field and ongoing changes in the Ukraine
budgetary system.

DERIVATION SUMMARY

Mariupol's 'b+' SCP reflects a combination of a 'Vulnerable' risk
profile and a 'aa' debt sustainability assessment. The SCP also
factors in national peer comparison. The IDRs are not affected by
any asymmetric risk or extraordinary support from the central
government, but they are capped by the Ukrainian sovereign IDRs.

KEY ASSUMPTIONS

Qualitative assumptions and assessments:

Risk Profile: 'Vulnerable'

Revenue Robustness: 'Weaker'

Revenue Adjustability: 'Weaker'

Expenditure Sustainability: 'Weaker'

Expenditure Adjustability: 'Weaker'

Liabilities and Liquidity Robustness: 'Weaker'

Liabilities and Liquidity Flexibility: 'Weaker'

Debt sustainability: 'aa' category

Support: n/a

Asymmetric Risk: n/a

Sovereign Cap or Floor: Yes

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 0.9% increase in operating revenue on average in 2020-2024,
supported by 4.5% yoy rise in tax revenue, but dragged down by a
one-off 52% reduction in current transfers in 2020 and average 3.9%
yoy transfers growth in 2021-2024;

  - yoy 2.3% increase in operating spending on average in
2020-2024, including a one-off 28% reduction of current transfers
in 2020 and average 6.3% yoy growth in 2021-2024;

  - net capital balance of negative UAH1,378 million on average in
2020-2024;

  - 9% cost of debt and three-year weighted average maturity for a
new domestic debt;

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

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

  - GDP per capita (US dollar, market exchange rate): 3,658, 3,459,
3,423

  - Real GDP growth (%): 3.2, -6.5, 3.5

  - Consumer prices (annual average % change): 7.9, 5.3, 5.9

  - General government balance (% of GDP): -2, -7.1, -3.4

  - General government debt (% of GDP): 44.4, 57.1, 57.4

  - Current account balance plus net FDI (% of GDP): 0.7, -1.4,
-0.7

  - Net external debt (% of GDP): -9.5, -8.4, -7.9

RATING SENSITIVITIES

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

  - Mariupol's IDRs are currently constrained by the sovereign
ratings. Therefore, positive rating action on the sovereign could
lead to corresponding action on the city's IDRs.

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

  - Negative rating action on the sovereign would lead to
corresponding action on the city's ratings;

  - A multiple-notch downward revision of the SCP below 'b', driven
by material deterioration in debt metrics, particularly a debt
payback sustainably above 5x under Fitch's rating case.

  - A prolonged COVID-19 impact and much slower economic recovery
lasting until 2025 would put pressure on the city's tax receipts.
If Mariupol was unable to proactively reduce expenditure or
supplement weaker receipts from increased central government
transfers, this could lead to a downgrade.

ESG Considerations

The city has an ESG Relevance Score of '4' for 'Political Stability
and Rights' due to its exposure to impact of political pressure or
instability on operations and tendency toward unpredictable policy
shifts which, in combination with other factors, impacts the
rating.

BEST/WORST CASE RATING SCENARIO

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




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

ALBACORE EURO I: S&P Assigns Prelim. BB- Rating on Cl. E Notes
--------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
Albacore Euro CLO's class A, B, C, D, and E notes. At closing, the
issuer will also issue unrated subordinated notes.

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

The portfolio's reinvestment period will end approximately one year
after closing.

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

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

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

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

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

"In our cash flow analysis, we used the EUR230 million par amount,
the covenanted weighted-average spread of 3.65%, the covenanted
weighted-average coupon of 4.50%, and the covenanted
weighted-average recovery rates for all rating levels. We applied
various cash flow stress scenarios, using four different default
patterns, in conjunction with different interest rate stress
scenarios for each liability rating category.

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

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

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

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

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe that our preliminary
ratings are commensurate with the available credit enhancement for
the class A, B, C, D, and E notes.

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

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

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

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

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

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

S&P Global Ratings acknowledges a high degree of uncertainty about
the evolution of the coronavirus pandemic. The consensus among
health experts is that the pandemic may now be at, or near, its
peak in some regions, but will remain a threat until a vaccine or
effective treatment is widely available, which may not occur until
the second half of 2021. S&P said, "We are using this assumption in
assessing the economic and credit implications associated with the
pandemic. As the situation evolves, we will update our assumptions
and estimates accordingly."

Albacore Euro CLO is a European cash flow CLO securitization of a
revolving pool, comprising euro-denominated senior secured loans
and bonds issued mainly by speculative-grade borrowers. AlbaCore
Capital LLP will manage the transaction.

  Ratings List

  Class   Prelim    Prelim     Sub (%)    Interest rate*
          Rating    amount
                   (mil. EUR)

  A       AAA (sf)   123.00     46.52     Three/six-month EURIBOR

                                            plus 1.53%

  B       AA (sf)     31.00     33.04     Three/six-month EURIBOR
                                            plus 2.50%

  C       A (sf)      15.00     26.52     Three/six-month EURIBOR
                                            plus 3.20%

  D       BBB (sf)    16.75     19.24     Three/six-month EURIBOR
                                            plus 3.87%

  E       BB- (sf)    13.20   13.50     Three/six-month EURIBOR
                                            plus 6.13%

  Sub. Notes   NR     33.70     N/A       N/A

* The payment frequency switches to semiannual and the index
  switches to six-month EURIBOR when a frequency switch event
  occurs.
EURIBOR--Euro Interbank Offered Rate.
NR--Not rated.
N/A--Not applicable


BYRON BURGER: Three Hills to Place Business Into Administration
---------------------------------------------------------------
Business Sale reports that the owners of fast-casual chain Byron
Burger are preparing to place the business into administration in a
bid to sell parts of the company.

Private equity firm Three Hills Capital Partners appointed KPMG to
sell Byron in early May but it has so far attracted zero bids,
Business Sale relates.

Three Hills has now filed a notice of intention to appoint
administrators, giving the company protection from creditors, and
is reportedly looking to attract bidders for parts of the business
in a pre-pack administration, Business Sale discloses.  There are
reportedly three parties interested in acquiring parts of Byron,
including the brand name and some locations, Business Sale notes.

Byron employs around 1,200 staff at 51 UK locations.  Its business
has been impacted by the coronavirus crisis, which has seen all of
its restaurants closed and its workforce reportedly put on
minimum-hour payment terms, Business Sale relays.

Three Hills and Byron are reportedly confident that a pre-pack sale
can be agreed before mid-July, at which point they hope to begin
reopening restaurants, Business Sale states.

Byron Burger, which was founded in 2007, had expanded to 71
locations by the end of 2016 before running into difficulty due to
rent payments and insufficient revenue, Business Sale recounts.

In its most recent accounts, filed to the year ending June 24 2018,
the company suffered a
post-tax loss of GBP47.2 million as the UK casual dining market
became "increasingly competitive", according to Business Sale.


CINEWORLD GROUP: S&P Affirms 'CCC+' ICR, Off Watch Negative
-----------------------------------------------------------
S&P Global Ratings affirmed its issuer credit rating on U.K.-based
cinema operator Cineworld Group PLC and its issue ratings on its
debt at 'CCC+' and assigned a stable outlook. S&P removed the
ratings from CreditWatch negative.

Cineworld has improved its liquidity position by obtaining
additional funding and covenant waivers until the end of 2020.

Cineworld has announced that it will issue a $250 million secured
debt facility due in 2023. S&P said, "In our view this will provide
the group with sufficient liquidity for the next 12 months,
together with our estimate of $180 million-$200 million of
available liquidity at the end of June 2020, including cash on the
balance sheet, the undrawn portion of its $463 million senior
secured revolving credit facility (RCF), and the $110 million RCF
increase agreed at the end of May 2020. We also expect that in the
coming weeks the group will obtain about $70 million in loans
guaranteed by the U.S. and U.K. governments through coronavirus
business support schemes. With these new resources, we think it
unlikely that Cineworld will face a liquidity crisis over the next
12 months, even if its cinemas remained closed for longer that we
expect--our base case is that they reopen in mid-July, 2020 --or
if, in the third and fourth quarters of 2020, the group operates at
a more reduced capacity compared with our base case."

On May 28, Cineworld announced that it has obtained a waiver for
the covenant that applies to its RCF for the next test in June, and
an increase in the net leverage covenant threshold for the test in
December 2020 to 9.0x from 5.5x. S&P said, "In our base case, we
estimate that Cineworld's net leverage could still exceed the
maximum 9.0x covenant ratio at the end of December 2020 and that
there could be minimal or no headroom at the testing in June 2021.
We assume the group could succeed in negotiating a waiver and/or a
further reset of the covenant thresholds at the end of 2020, due to
the extraordinary nature of the COVID-19 pandemic, the group's
previous good standing in the credit markets, and its good
relationships with its lenders."

Following Cineworld's announcement that its acquisition of Cineplex
will not proceed, Cineplex said that it intends to commence legal
proceedings against Cineworld. S&P currently does not include any
provisions for legal expenses or potential liabilities in its base
case and liquidity calculations for Cineworld.

There remains high uncertainty around Cineworld's business
conditions and the recovery of its operations after cinemas reopen
in July 2020.   S&P said, "Our base case is that most of
Cineworld's cinemas globally will reopen in the middle of July and
the group will start generating positive EBITDA and free operating
cash flow (FOCF). This follows three months of cash burn since the
cinemas closed in mid-March. However, we think the ramp-up in
admissions and positive cash generation will be only gradual over
the next several quarters, despite pent-up demand for out-of-home
entertainment and a strong slate of film releases. This is because
we assume that social-distancing measures will stay in place until
a vaccine or effective treatment is found, perhaps by mid-2021. We
also think health and safety concerns might affect consumers'
willingness to attend cinemas, despite the enhanced sanitary
measures that cinemas will implement. As a result, we believe that
Cineworld's total admissions in 2020 will be down by about 50% on
2019 levels and down about 15% in 2021 versus 2019, before
returning to more normalized levels in 2022. We also note the risk
of local outbreaks of COVID-19 leading to authorities reimposing
lockdown restrictions, which could disrupt the group's
operations."

The recovery in admissions and Cineworld's profitability will also
depend on the availability and timing of film releases, which are
largely under the control of major film studios. Since March 2020,
studios have pushed numerous blockbuster releases to the second
half of 2020 and into 2021 due to the closure of cinemas globally.
The first major films due to premiere this summer are Mulan,
currently scheduled for release on July 24, and Christopher Nolan's
Tenet, recently delayed until July 31. Wonder Woman 1984 has been
delayed to now premiere on Oct. 2. S&P thinks that studios will
continue to evaluate the potential for blockbuster releases at
scale and it sees a risk that they could choose to further delay
some releases. The film slate for the rest of 2020 and early 2021
looks very strong and includes Black Widow and a new film in the
Bond franchise, No Time To Die, in November.

S&P said, "Longer term we see an increasing risk that major studios
could push to change the traditional 90-day theatrical release
window--which exhibitors have always strongly opposed--or could
release more films through alternate distribution channels such as
premium video on-demand (PVOD) as some did successfully during the
pandemic. While we believe theatrical releases will remain the only
viable way to fully monetize large-budget tent-pole films, studios
could pressure exhibitors on small to midsize films. If this trend
accelerates the box office might not recover to 2019 levels in
2022, which could weaken exhibitors' competitive positions.

"We forecast that Cineworld's leverage will reduce slowly and could
exceed 6.5x in 2021.   We estimate that the group's revenue this
year will decline by about 50%-55% compared with 2019, translating
into an even more significant drop in S&P Global Ratings-adjusted
EBITDA, and we see adjusted debt to EBITDA spiking above 10.0x from
5.2x at end-2019. We also forecast that Cineworld's FOCF will turn
negative in 2020, despite the group's ability to significantly
reduce operating costs and capital expenditure (capex) during
cinema closures.

"In 2021 and 2022, we expect that Cineworld's EBITDA and cash flow
generation will improve, albeit dented by expenses that the group
deferred while cinemas were closed--mainly rent payments and
catch-up capex that was cut this year. Therefore we expect that
FOCF will remain subdued and that the group's adjusted leverage
will reduce only gradually. We forecast that adjusted debt to
EBITDA could exceed 6.5x in 2021."

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

-- Health and safety.

S&P said, "The stable outlook reflects our view that while
Cineworld's operating conditions will likely remain challenging in
the second half of 2020 and into 2021, we do not expect it to face
a credit or liquidity crisis within the next 12 months."

S&P could lower the rating if it saw an increased probability that
Cineworld could default within the next six-to-12 months, for
example if:

-- There is a delay in cinemas reopening or if recovery in theater
admissions, revenues, earnings, and cash flow over the next several
quarters is substantially below S&P's base case, leading to a
liquidity shortfall;

-- There is an increased risk that Cineworld could breach the
covenant test in December 2020 and June 2021, and fail to obtain a
waiver and/or a reset well in advance of the testing date;

-- There is an increased risk that the group is unable to make the
interest payments on its senior secured debt; or

-- S&P believes that the group could announce a debt
restructuring, exchange offer or debt buyback that it would view as
distressed and therefore as tantamount to a default.

S&P could raise the rating if Cineworld's operating performance and
cash flow generation strongly recovered in the second half of 2020,
leading to a further improvement in the group's liquidity position
and sufficient covenant headroom through the end of 2021.


ELEVATE CREDIT: Goes Into Administration, KPMG Appointed
--------------------------------------------------------
Naomi Schraer at Money Saving Expert reports that payday loan
provider Sunny has collapsed into administration and will no longer
be offering new loans.

KPMG has been appointed as administrators of Elevate Credit
International Limited (ECIL), which offered loans under the Sunny
brand (previously known as 1 Month Loan and Quid), Money Saving
Expert relates.  It has said it will conduct an "orderly wind down
of the business", Money Saving Expert discloses.

Sunny had around 50,000 customers on its loan books and offered
short-term loans of between GBP100 and GBP2,500 (though it
preferred not to refer to itself as a payday loan company),
Money Saving Expert notes.

According to Money Saving Expert, KPMG says that Sunny customers
will still need to carry on repaying their loans in the usual way.



IRIS MIDCO: S&P Alters Outlook to Negative & Affirms 'B' ICR
------------------------------------------------------------
S&P Global Ratings revised its outlook on U.K. software company
IRIS Midco Ltd. to negative from stable and affirmed its 'B'
ratings.

IRIS' leverage was higher and FOCF lower in FY2020 than S&P
previously forecast, mainly due to larger-than-anticipated
exceptional costs.

S&P said, "Despite solid underlying operating performance, with pro
forma revenue up by about 7%, our pro forma adjusted debt-to-EBITDA
ratio for IRIS increased to about 11x in FY2020 (7.1x excluding the
PIK notes), and its adjusted FOCF to debt fell to about 4.6% (7%
excluding PIK). This compares with our previous forecast of
adjusted debt to EBITDA of about 10x in FY2020 and FOCF to debt of
about 5%." The main reason was larger-than-expected exceptional
costs of about GBP19 million in FY2020, which included costs
related to the FMP Global acquisition and a strategic investment in
Project Quantum, an IT infrastructure program. The costs also
included additional research and development spending on Project
Darwin, which focuses on building IRIS Elements, a cloud
next-generation business applications platform.

Continued high exceptional costs and slower growth due to the
pandemic will likely impede deleveraging in FY2021.  S&P said, "We
currently do not foresee an improvement in our adjusted credit
metrics (including the PIK notes) in FY2021, since we understand
that exceptional costs will likely remain high at GBP15
million-GBP20 million. We understand that lower acquisition costs
will be mostly offset by large investments in Project Darwin.
Investment in Project Quantum should also remain significant. We
believe IRIS' investments in these two key strategic projects
should support future growth prospects and improve its cost
structure. Nevertheless, we think investments in Project Darwin are
akin to ordinary product development and important for IRIS to
maintain its competitive position. Therefore we do not view them as
one-off items and assume they will continue." In addition, in the
short term, these investments will weigh on IRIS' EBITDA and cash
flows and reduce headroom for the rating. Slower growth due to the
COVID-19 pandemic is also expected to impede deleveraging in
FY2021.

S&P said, "We anticipate that growth of pro forma revenue and
EBITDA before exceptional items will slow sharply in FY2021 but
remain positive.   We now assume about 1% growth of IRIS' pro forma
revenue and EBITDA before exceptional items in FY2021, compared
with our previous projection of 8%-9%, due to the impact of
COVID-19. We do not expect a revenue decline mainly because about
90% of IRIS' revenue is recurring, a proportion that is notably
higher than peers' such as Advanced, Unit 4, and P&I. We still
expect growth from IRIS' largest division, Accountancy and
Bookkeeping (46% of revenue for the 12 months to Jan. 31, 2020),
which has a recurring revenue share of 95%. In addition, price
increases went ahead for the majority of accountancy products on
May 1; these increases are locked in for a significant proportion
of contracts, which are on three-year terms. On the other hand, we
expect the postponement of new orders and implementation of
professional services will hamper IRIS' Education and Human Capital
Management divisions in particular, which have recurring revenue
shares of about 77% and 85% respectively. We also anticipate some
impact on recurring revenue across the divisions, due to an
increase in gross attrition because of higher customer losses from
the insolvency of small and midsize enterprises (SMEs) and clients
shifting to lower-value modules. We expect IRIS' management's
adjusted EBITDA margin (before exceptional items and capitalized
development costs) to remain stable at about 46% of revenue,
supported by various cost-saving initiatives in response to
COVID-19. These include an executive level review of new hiring, a
small number of employee furloughs, and a reduction of all
discretionary spending.

"We see scope for significant improvement in leverage and FOCF in
FY2022.   We assume that revenue growth will normalize at 7%-8% on
an organic basis in FY2022, or about 14%-15% if the contribution
from forecast acquisitions is included. In addition, we assume a
broadly stable management-adjusted EBITDA margin of about 46%, and
a material reduction in exceptional costs to below GBP10 million.
We would expect this to reduce the S&P Global Ratings-adjusted
debt-to-EBITDA figure to about 10x (about 6x excluding the PIK
notes) and increase FOCF of debt to about 6% (about 9.5% excluding
the PIK notes) in FY2022. These metrics are commensurate with the
current rating. Nonetheless, we still see uncertainty regarding the
extent to which the pandemic will hurt IRIS' operating performance
in FY2021 and the degree of improvement in FY2022. In addition,
achieving these metrics depends on whether exceptional cash
outflows will reduce as assumed."

S&P's view of IRIS' business is unchanged.  In addition to the high
90% share of recurring revenue, which supports business resilience
in the current economic downturn, IRIS benefits from strong
medium-term growth prospects. Its EBITDA margin of well above 40%
before exceptional costs also compares particularly favorably with
peers'. IRIS has also managed to expand its geographic reach
recently, particularly to the U.S., through its acquisitions of FMP
Global (which includes international payroll services), Star, and
Practice Engine (global accountancy software).

The negative outlook reflects IRIS' currently tight headroom within
the current rating triggers, and hence the potential for a
downgrade.

S&P said, "We could lower the rating if IRIS' pro forma adjusted
leverage materially exceeds 11x (6.8x excluding the PIK notes) and
its FOCF to debt is materially below 5% (8.1% excluding the PIK
notes) in FY2021, without prospects for a sufficiently strong
improvement in FY2022. This could occur if IRIS' pro forma revenue
and EBITDA decline significantly in FY2021, for example due to a
spike in gross attrition due to the impact of COVID-19 on SMEs, and
we no longer expect a material reduction in exceptional costs to
below GBP10 million in FY2022.

"We could revise the outlook to stable if IRIS' pro forma adjusted
leverage is about 11x (6.8x excluding the PIK notes) or lower, and
FOCF to debt is about 5% (8.1% excluding the PIK notes) or higher
in FY2021, with an improvement expected in FY2022. This could occur
if IRIS' pro forma revenue and EBITDA are resilient in FY2021, in
line with our base case. We would then expect a stronger operating
performance and lower exceptional costs in FY2022."


NAVIGATOR HOLDINGS: Ernst & Young LLP Raises Going Concern Doubt
----------------------------------------------------------------
Navigator Holdings Ltd. filed with the U.S. Securities and Exchange
Commission its annual report on Form 20-F, disclosing a net loss
(attributable to stockholders) of $16,706,000 on $301,385,000 of
revenues for the year ended Dec. 31, 2019, compared to a net loss
(attributable to stockholders) of $5,739,000 on $310,046,000 of
revenues for the year ended in 2018.

The audit report of Ernst & Young LLP states that the Company may
experience significant reductions in revenues and cashflows
resulting from uncertainty and economic contraction caused by the
COVID-19 pandemic and unexpected calls for deposits into a
restricted margin account related to its cross-currency swap, which
may cause the Company to breach its loan and bond covenants related
to minimum liquidity and interest cover ratio. In addition, the
Company cannot repay its bond maturing in February 2021 from
projected financial resources and has stated that substantial doubt
exists about the Company’s ability to continue as a going
concern.

The Company's balance sheet at Dec. 31, 2019, showed total assets
of $1,874,253,000, total liabilities of $934,351,000, and
$939,902,000 in total equity.

A copy of the Form 20-F is available at:

                       https://is.gd/pOG6Of

Navigator Holdings Ltd. owns and operates a fleet of liquefied gas
carriers worldwide. The company provides international and regional
seaborne transportation services of liquefied petroleum gas,
petrochemical gases, and ammonia for energy companies, industrial
users, and commodity traders. The company was founded in 1997 and
is based in London, the United Kingdom.


W POTTERS: Enters Administration, Owes GBP1.8MM to Creditors
------------------------------------------------------------
Indya Clayton at Oxford Mail reports that W Potters & Sons
(Poultry) Ltd, the original poultry company that wanted to build a
huge chicken farm near Bicester has gone into administration,
leaving GBP1.8 million of debt.

The company submitted proposals last year to build a 59,000-strong
chicken farm in Lower Arncott, which it later withdrew after
objections, Oxford Mail relates.

According to Oxford Mail, the company went into administration on
June 4 due to a lack of cashflow, the impact of the coronavirus and
expensive legal costs of up to GBP350,000 due to a legal dispute
with a customer.

W Potters & Sons (Poultry) Ltd has now been bought by a new
subsidiary of W Potters & Sons Ltd called Potters Poultry, Oxford
Mail discloses.  This new company, that provides the same services
as the original one, has the same directors, Oxford Mail notes.



                           *********


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

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

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

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