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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

          Friday, July 3, 2020, Vol. 21, No. 133

                           Headlines



F I N L A N D

NELES CORP: S&P Lowers ICRs to 'BB/B' Then Withdraws Rating


F R A N C E

EUTELSAT COMMUNICATIONS: Egan-Jones Cuts Sr. Unsec. Ratings to BB+


G E O R G I A

GEORGIA GLOBAL: Fitch Gives 'B+(EXP)' LT IDR, Outlook Stable


G E R M A N Y

DEUTSCHE LUFTHANSA: S&P Lowers ICR to 'BB' on Increased Leverage
INEOS STYROLUTION: Moody's Puts Ba2 CFR on Review for Downgrade
STEINHOFF INT'L: Faces More Than EUR9 Billion in Legal Claims
WIRECARD AG: Accounting Scandal a "Massive Criminal Act", BaFin Say
WIRECARD AG: Deutsche Bank Working on Potential Bailout



I R E L A N D

APTIV PLC: Egan-Jones Raises Local Currency Unsec. Rating to B+
BBAM EUROPEAN I: Fitch Assigns B-sf Rating on Class F Debt


I T A L Y

MONTE DEI PASCHI: DBRS Confirms B(high) Issuer Rating, Trend Neg.
SISAL GROUP: Moody's Alters Outlook on B1 CFR to Stable


L U X E M B O U R G

B&M EUROPEAN: Moody's Rates New Secured Notes Ba3, Outlook Stable
EDREAMS ODIGEO: Moody's Alters Outlook on B3 CFR to Negative


N E T H E R L A N D S

HEMA: Noteholders Set to Take Over Through Debt-for-Equity Swap


N O R W A Y

AKER BP: Moody's Alters Outlook on Ba1 CFR to Stable


P O R T U G A L

CAIXA ECONOMICA MONTEPIO: Fitch Cuts IDR to B-, Outlook Negative


S P A I N

BBVA CONSUMER 2018-1: DBRS Confirms BB Rating on Class D Notes
BBVA CONSUMER 2020-1: DBRS Finalizes BB(high) Rating on D Notes
DEOLEO SA: Moody's Puts 'Ca' CFR on Review for Upgrade


S W E D E N

HOIST FINANCE: Moody's Alters Outlook on Ba3 Rating to Negative


U N I T E D   K I N G D O M

AI MISTRAL HOLDCO: Moody's Cuts CFR to Caa2, Outlook Negative
ASTON MARTIN: Moody's Cuts Senior Secured Notes to Caa2
B&M EUROPEAN: S&P Gives Prelim. BB- Rating on GBP350MM Sec. Notes
CANADA SQUARE 2020-2: S&P Assigns Prelim. B Rating on E Notes
HAMMERSON PLC: Egan-Jones Lowers Senior Unsecured Ratings to BB+

INEOS ENTERPRISES: S&P Affirms 'B' ICR, On CreditWatch Negative
KINGFISHER PLC: Egan-Jones Lowers Senior Unsecured Ratings to BB
MAGENTA PLC 2020: S&P Lowers Rating on Class E Notes to BB-
MCLAREN: Receives Financial Lifeline, Calls Off Legal Battle
MOTION MIDCO: Moody's Confirms 'B2' CFR, Outlook Negative

NORIA 2018-1: DBRS Confirms C Rating on Class G Notes
SCORPIO DAC: DBRS Confirms BB Rating on Class E Notes


X X X X X X X X

[*] BOOK REVIEW: Mentor X

                           - - - - -


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F I N L A N D
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NELES CORP: S&P Lowers ICRs to 'BB/B' Then Withdraws Rating
-----------------------------------------------------------
S&P Global Ratings lowered its long- and short-term issuer credit
ratings on Neles Corporation (formerly Metso Corp.) to 'BB/B' from
'BBB-/A-3' and removed them from CreditWatch, where S&P placed them
on March 23, 2020.

S&P subsequently withdrew the ratings at the company's request. The
outlook was stable at the time of the withdrawal.

The downgrade primarily reflects Neles' limited size and market
reach, as well as its reliance on a narrow offering, primarily the
flow control business. S&P said, "At the same time, we acknowledge
the group's good profit margins and management's ambitions to
achieve a reported EBITA margin of 15% over the cycle.
Additionally, the group's low reported debt to EBITDA of about 1x
as of March 31, 2020, implies it should be able to withstand the
COVID-19 pandemic. We expect the group to seek inorganic growth
opportunities aimed at strengthening its market penetration in the
valves business. In the medium term, we expect leverage to slightly
increase but remain with the range stated in its recently approved
financial policy, which foresees reported net debt to EBITDA not
exceeding 2.5x."

At the time of the withdrawal, the outlook was stable, reflecting
the company's ample financial flexibility, with about EUR121
million in cash and reported net debt to EBITDA of about 1.0x and
FFO to debt higher than 20% expected for 2020.

S&P did not take any rating actions on the EUR400 million senior
unsecured notes rated 'BBB-' because, as of the June 30, 2020,
merger of Metso Minerals and Outotec, they effectively became
liabilities of the newly formed group (Metso Outotec).




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F R A N C E
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EUTELSAT COMMUNICATIONS: Egan-Jones Cuts Sr. Unsec. Ratings to BB+
------------------------------------------------------------------
Egan-Jones Ratings Company, on June 23, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Eutelsat Communications SA to BB+ from BBB-.

Headquartered in Paris, France, Eutelsat Communications is a
KU-band satellite operator.




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G E O R G I A
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GEORGIA GLOBAL: Fitch Gives 'B+(EXP)' LT IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has assigned Georgia Global Utilities JSC an expected
Long-Term Issuer Default Rating of 'B+(EXP)'. The Outlook on the
IDR is Stable.

The rating reflects the consolidated credit profile of the
company's regulated water utility business segment (Georgian Water
and Power LLC, GWP), and GGU's fairly higher-risk renewable
electricity business, which is nevertheless supported by long-term
power purchase agreements. Overall size, asset quality, forex risk,
operating and regulatory environment remain key rating
constraints.

The assignment of the final rating is contingent on GGU completing
its refinancing according to both company's plans and its current
assumptions. The refinancing drives its leverage assumption.

KEY RATING DRIVERS

Holding Company and Rating Scope: GGU is a holding company and
consolidates GWP, Rustavi Water LLC, Mtskheta Water LLC, Gardabani
Sewage Treatment LLC, Saguramo Energy LLC, and Georgian Engineering
and Management Company LLC. In addition, GGU will also consolidate
Qartli Wind Farm LLC (QWF, 21MW (megawatt)) wind power plant,
Svaneti Hydro JSC (Svaneti, 50MW) hydro power plant (HPPs),
Hydrolea LLC (21MW HPPs) and Georgian Energy Trading Company LLC
(GETC, electricity trading arm of the group).

Leverage Temporarily above Sensitivity: Fitch estimates
post-refinancing pro-forma funds from operations net leverage
(adjusted for new subsidiaries under consolidation and connection
fees) at 5.9x for 2020 and to average about 4.3x for 2020-2023,
compared with its negative rating sensitivity of 4.5x. External
debt is to be located at GGU level with upstream guarantees by key
subsidiaries.

GWP Significant for GGU: Fitch expects GWP to be the most
significant operating company for GGU at 72% of average revenue and
60% of average EBITDA per year for 2020-2024. GWP is a regulated
water utility, with a natural monopoly in Tbilsi, owns the water
infrastructure. The remaining business is electricity sales; it
operates hydro power plants with an installed capacity of 145MW
(linked to the water utility), with about 50% of electricity
generated for own consumption, with excess electricity sold
predominantly through bilateral agreements with direct customers.
Any remaining portion is exposed to merchant activity.

Increasing Diversification, Lower Regulated Revenue: Fitch
estimates GGU's regulated water revenue at about 60% (adjusting for
connection income in the water segment) on average per year for
2020-2024. The remaining revenue is from power generation and sale,
which is exposed to volume and price risks in the merchant power
segment. This is offset by PPA-based power sales (estimated at
about 40% of the power segment per year until 2023) and
diversification supported by 96MW of installed renewable capacity.
While GGU is exposed to merchant activity, about 80% of revenue
generated through bilateral agreements is in September to April of
each year, when the electricity market is in deficit.

Price Visibility in PPAs: Fitch believes long-term cash-flow
visibility is enhanced by the price certainty within GGU's PPAs.
All electricity output from about 40% of its total installed
capacity is contracted with PPAs expiring between 2022 and 2034;
the weighted-average remaining life of the portfolio is around 11
years. The long-term PPAs provide some protection from price risk,
being based on fixed power tariff agreements, typically for eight
months of each year (QWF, 12-month PPA), from September to April.
Fitch views the PPAs with JSC Electricity System Commercial
Operator (ESCO, the market operator) as indirectly backed by the
Government of Georgia (BB/Negative).

Re-contracting Risk Present: The remaining electricity output is
exposed to market prices, albeit mitigated in the short-term
through 12-month, bilateral agreements, with large
industrial/commercial customers. GGU has a limited record of
re-contracting capacity, following the market liberalisation in May
2019.

Power Generation with Volume Risk: Production volume varies at both
the hydro and wind power plants, as it is based on resource
availability, which is affected by seasonal and climatic patterns.
If GGU cannot deliver volumes contracted in its short-term
bilateral agreements, the group's electricity trading arm, will
have to either buy the shortfall on the market, and re-sell at the
contracted price, or use electricity generated at Zhinvali (the
group's largest hydro power plant with an installed capacity of 130
MW, which has a water reservoir) to meet the shortfall.

Volume Risk Partly Mitigated: Volume risk is partly mitigated by
GGU's geographical diversification, with nine plants spread across
Georgia. The Qartli wind farm had an average capacity factor 47% at
end-2019. Volume risk is also not present in GGU's PPAs with ESCO,
as ESCO undertakes to purchase all electricity generated from the
relevant contracted capacity (which does not include Zhinvali),
irrespective of potential volume fluctuations.

Deregulation Improves Market Liquidity: The recent change in
electricity regulation calls for all large industrial/commercial
customers with monthly electricity consumption of 5GWh (gigawatt
hour), and above, to register as direct customers, as part of the
deregulation. Fitch expects this to increase liquidity in the
market as the deregulated market share of total electricity demand
increases notably.

Wholesale Market Price Offsets Lower Demand: The wholesale price
mainly consists of the weighted average of all imports and PPAs. In
2019, the weighted average price of PPAs averaged about 5.4
USc/kWh, while imports averaged about 4.8-5 USc/kWh. Assuming
demand decreases in 2020 due to the pandemic-driven economic shock,
the calculation of the market benchmark price will include a lower
share of imported price because all domestic generation comes
before imports in terms of merit order. This would increase the
weight of PPAs in the calculations, slightly increasing the market
prices. Fitch estimates market power prices to average 14.8
Tetri/kWh up to 2023.

COVID-19 Impact Manageable: 2020 results will be affected by the
coronavirus outbreak, via a sharp contraction of Georgia's economy
by an estimated 4.8% in 2020. Fitch expects GGU to breach its FFO
net leverage (excluding connection fees) negative sensitivity of
4.5x, before recovering to within the threshold by 2021.

Limited Currency Hedge, Refinancing Risk: GGU is expected to hold a
majority of its debt in foreign currency, resulting in exposure to
forex risk. However, this risk is partly mitigated by both PPA
sales and bilateral contracts being denominated in US dollars,
which is expected to be sufficient to cover coupon payment but not
principal. Fitch estimates GGU's EBITDA to average about 40% in US
dollars, with the remaining in Georgian lari.

DERIVATION SUMMARY

Fitch views JSC Energo-Pro Georgia (EPG, BB-/Stable) as GGU's
closest peer, sharing the operating and regulatory environment and
also engaged in hydro power generation. Both companies generate a
large portion of regulated and quasi-regulated income with EPG
being the largest distribution system operator in Georgia and GGU
holding the water monopoly in the capital city of Georgia. However,
EPG's rating is aligned with that of its larger and more
diversified parent ENERGO PRO a.s. (BB-/Stable).

GGU is comparable to European water utilities such as
Severomoravske vodovody a kanalizace Ostrava a.s. (BB+/Stable) or
Aquanet SA (BBB+/Stable). Bulgarian Energy Holding EAD (BB/Stable)
is significantly larger and more diversified with strong sovereign
support benefiting its rating.

KEY ASSUMPTIONS

  - Water tariff to increase about 60% for households in 2021 and
    to remain flat in 2022-2023

  - Water losses dropping to below 35% of total water output in
    2023 from around 40% in 2019

  - GEL/USD average exchange rate of 3.1 in 2020 and 3 for 2021

  - Average electricity volumes sold of about 480,000 MWh
    (megawatt hour) per year for 2020-2023

  - Average cost of debt of about 7% up to 2023

  - Average annual dividends of about GEL21 million per year in
    2020-2023

  - Capex to average about GEL80 million per year in 2020-2023

  - PPA price to average about Tetri18.3/kWh up to 2023

RATING SENSITIVITIES

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

  - Improved FFO net leverage (excluding connection fees) at below
    3.5x on a sustained basis.

  - Improved business risk due to a longer record of supportive
    regulation or material improvement in the tenure of bilateral
    agreements to more than 12 months, reducing the contract
    renewal risk, without an increase in counterparty risk.

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

  - A sustained increase in FFO net leverage (excluding connection
    fees) above 4.5x.

  - Water tariff increase in regulatory period from 2021 to 2023
    considerably below its current expectations.

  - A sustained reduction in profitability and cash flow
    generation through a failure to reduce water losses, higher-
    than-expected exposure to electricity price and volume risks
    or deterioration in cash collection rates.

  - A more aggressive financial policy with increased dividends.

  - A material increase in exposure to foreign-currency
    fluctuations.

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

Tight Liquidity Dependent on Refinancing: At end-2019, cash and
cash equivalents stood about GEL47 million was insufficient to
cover short-term debt of about GEL89 million. Expected negative
free cash flow in 2020 will add to funding requirements. The
expected IDR assumes a successful refinancing of the group's debt
at GGU level during 2H20.

SUMMARY OF FINANCIAL ADJUSTMENTS

Interest accrued was reclassified to cash interest paid from other
liabilities.

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

GGU has an ESG Relevance Score of '4' for water and wastewater
management due to heavily worn-out water infrastructure and large
water losses.

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).




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G E R M A N Y
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DEUTSCHE LUFTHANSA: S&P Lowers ICR to 'BB' on Increased Leverage
----------------------------------------------------------------
S&P Global Ratings lowered its ratings on Deutsche Lufthansa AG and
its senior unsecured debt to 'BB' from 'BB+' and its ratings on the
junior subordinated debt to 'B-' from 'B'. The 'B' short-term issue
credit rating is unchanged. S&P removed the ratings from
CreditWatch negative, where it placed them on March 20, 2020.

Lufthansa's shareholders and the European Commission approved the
EUR9 billion state aid package under the Federal Economic
Stabilization Fund.

The stabilization package is composed of EUR5.7 billion in silent
participation and a EUR3.0 billion state-guaranteed loan. The
package also includes the German government acquiring a 20% stake
in Lufthansa's share capital at a share price of EUR2.56, which is
equivalent to a EUR300 million cash injection. S&P said, "After our
review of the relevant legal framework agreement, we now regard the
EUR5.7 billion silent participation as akin to debt, according to
our hybrid criteria. This is because we believe that Lufthansa has
a material incentive to redeem the silent participation given that
the hybrid's documentation includes multiple coupon step-ups up
until 2023. Furthermore, based on Lufthansa's public communication,
we understand that the airline intends to redeem the hybrid
instrument as soon as practicable. Accordingly, we now expect
Lufthansa's adjusted debt to rise to as much as EUR18.0 billion in
2020 compared with EUR10.8 billion in 2019, which will result in
much weaker credit measures than we previously forecast and a
highly leveraged financial risk profile versus aggressive
previously. In our view, certain benefits of the silent
participation differentiates it from traditional debt, which we
capture in our credit rating by applying one notch of uplift to the
anchor to arrive at Lufthansa's stand-alone credit profile (SACP)
of 'bb-'. We note that the silent participation does not have an
effective maturity date and includes optionally deferrable coupon
features. This provides important flexibility to the airline's
capital structure."

S&P said, "We expect a steeper drop in Lufthansa's EBITDA and
higher cash flow deficit in 2020 than in our previous base case.
This is because of a likely slower rebound in the airline's
long-haul passenger traffic, expected sluggish corporate and
business travel, and weakened demand for its MRO services. In light
of Lufthansa's plan to increase its capacity in July to only about
40% of its original schedule from just 3% in May, we expect a
severely constrained summer season, which is typically the
strongest in terms of revenue generation. The uncertainty of timing
over lifting entry bans and quarantine requirements for countries
outside the EU curbs the recovery in the high-margin long-haul
passenger segment, especially for the North American destinations.
Additionally, we expect the demand for MRO services, which
historically contributed to close to 20% of Lufthansa's EBITDA, to
remain sluggish given the airline sector's reduced activity
globally. Although Lufthansa is taking steps to mitigate the
collapse in air travel demand, we now forecast a significantly
negative adjusted EBITDA this year." This, aggravated by working
capital requirements, which could be material because of, for
example, ticket refunds or sluggish bookings, and partly offset by
deferral of capital expenditure (capex) for new planes and
maintenance, and suspension of dividends, will result in negative
free operation cash flow (FOCF) of EUR7.5 billion-EUR8.0 billion in
2020.

S&P said, "Lufthansa's depressed financial metrics for 2020 are
less meaningful to our assessment of financial risk.   That said we
factor into our analysis expected financial results for 2020,
particularly regarding the capital structure, accumulation of debt,
and liquidity. Because we believe that the state aid package will
substantially enhance the airline's capacity to navigate through
this difficult year, we focus mostly on expected 2021 credit
ratios." This approach best reflects the airline's cash
flow/leverage profile in our analytical judgment, assuming that air
travel starts to recover late in 2020.

The projected recovery of credit metrics in 2021 is limited by
Lufthansa's high debt and is susceptible to risks.  S&P said,
"Although we expect Lufthansa's operating performance to improve in
2021, with adjusted EBITDA rising to EUR2.5 billion-EUR3.0 billion,
its ratio of funds from operations (FFO) to debt will only recover
to be consistent with the higher end of our highly leveraged
financial profile category from the negative territory we forecast
in 2020, while we expect the airline's FOCF to break even. For
these forecasts, we assume passenger traffic will start recovering
later this year, and benefits from structural cost-cutting measures
and lower jet fuel price will feed through. Nevertheless, low
visibility on the evolution of the COVID-19 pandemic and
recessionary trends mean our forecasts are subject to significant
risks."

S&P said, "We consider Lufthansa a government-related entity.  We
see a moderate likelihood that Lufthansa would receive
extraordinary support from the German government under a stress
scenario, beyond the recently approved stabilization package. This
translates into one notch of uplift from the airline's SACP of
'bb-'. We base our view on our assessment of Lufthansa's important
role for, and limited link with, the German government."

Environmental, social, and governance (ESG) credit factors for this
credit rating change:

-- Health and safety

S&P said, "The negative outlook reflects our view that Lufthansa's
financial metrics will remain under considerable pressure in the
next few quarters amid the difficult trading environment.
Furthermore, there is high uncertainty regarding the COVID-19
pandemic and economic recession, and their adverse impact on air
traffic demand and Lufthansa's financial position and liquidity.

"A downgrade would likely follow if we expect that adjusted FFO to
debt won't recover to above 6% over 2021. This could occur if the
COVID-19 pandemic cannot be contained, resulting in prolonged
lockdowns and travel restrictions, or if passengers remain
reluctant to book flights. We could also lower the rating if
industry fundamentals weaken significantly and for a sustained
period, impairing Lufthansa's competitive position and
profitability. While we currently don't see liquidity as a
near-term risk, we would lower the rating by at least one notch if
air traffic does not recover in line with our expectations and
management's proactive actions to adjust operating costs and
capital investments are insufficient to preserve at least adequate
liquidity, such that sources exceed uses by more than 1.2x in the
coming 12 months, in the absence of extraordinary government
support.

"To revise the outlook to stable, we would need to be confident
that demand conditions are normalizing and the recovery is robust
enough to enable Lufthansa to partly restore its financial
strength, such as adjusted FFO to debt increasing sustainably to
6%-12%, alongside a stable liquidity position. We would expect this
to be further underpinned by prudent financial policy."


INEOS STYROLUTION: Moody's Puts Ba2 CFR on Review for Downgrade
---------------------------------------------------------------
Moody's Investors Service placed on review for downgrade the Ba2
corporate family rating and Ba2-PD probability of default rating of
INEOS Styrolution Holding Limited. Moody's also placed on review
for downgrade the Ba2 ratings assigned to INEOS Styrolution Group
GmbH's and INEOS Styrolution US Holding LLC's senior secured Term
Loan B facilities due January 2027, as well as the Ba2 rating
assigned to the EUR600 million senior secured instrument issued by
INEOS Styrolution Group GmbH. The outlook on all three entities was
revised to ratings under review from negative.

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

The review was triggered by the announcement that Styrolution has
entered into an agreement to acquire the global aromatics and
acetyls business of BP p.l.c. (BP, A1 negative) for a consideration
of $5 billion.

Under the terms of the agreement, Styrolution will pay BP a deposit
of $400 million initially funded through a short-term facility and
a further $3.6 billion on completion. An additional $1 billion will
be deferred and paid in three separate instalments of $100 million
in March, April and May 2021 with the remaining $700 million
payable by the end of June 2021. Subject to regulatory and other
approvals, the transaction is expected to complete by the end of
2020.

As part of the transaction, Styrolution will merge with INOVYN
Limited (INOVYN, Ba3 negative) to form a new restricted group,
where the incremental acquisition debt of $4 billion will be
located alongside Styrolution and INOVYN's existing debt. Moody's
understands that the deferred element of $1 billion will sit
outside of the new ring-fenced group and will be equity funded.

Moody's considers that the acquisition of BP's global aromatics and
acetyls business and its merger with Styrolution and INOVYN's
existing businesses will provide the new restricted group with a
diversified earnings and cash flow stream underpinned by a broadly
based chemical portfolio in terms of value chain, end market and
geographical exposures. Styrolution intends to finance 80% of the
acquisition through incremental debt. According to Moody's initial
estimate, pro-forma adjusted total debt to EBITDA would be around
4x in the last twelve months to March 2020. Should the new
restricted group demonstrate its ability to sustain leverage close
to this level through the cycle, Moody's believes that any
downgrade of Styrolution's CFR is likely to be limited to one
notch.

The review will focus on assessing: (1) the combined business
profile of the newly enlarged Styrolution's portfolio in terms of
operational diversity, geographical footprint and end market
exposures; (2) the integration and execution risks associated with
the acquisition of BP's global aromatics and acetyls business; (3)
the potential cost reductions arising from the merger integration
as well as synergies between the different value chains, and with
the rest of the INEOS group of companies; (4) the initial
consolidated financial leverage and future cash flow generating
capacity of the new restricted group, as well as its financial
policy and medium-term financial targets; and (5) the relative
ranking of Styrolution's and INOVYN's legacy debt, and the
acquisition debt within the restricted group's capital structure.

CORPORATE PROFILE

INEOS Styrolution Holding Limited, with management based in
Frankfurt, Germany, is a leading global styrenics supplier (based
on revenues), especially in Europe and North America. INEOS
Styrolution is focused on the production and sale of polystyrene,
acrylonitrile butadiene styrene (ABS), styrene monomer, and other
styrenic specialities. The group is a wholly owned subsidiary of
INEOS AG (unrated). In 2019, INEOS Styrolution's revenues and
Moody's-adjusted EBITDA were EUR4.9 billion and EUR726 million,
respectively.

PRINCIPAL METHODOLOGY

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


STEINHOFF INT'L: Faces More Than EUR9 Billion in Legal Claims
-------------------------------------------------------------
Emma Rumney at Reuters reports that Steinhoff International,
battling the fallout from a massive accounting fraud, faces legal
claims amounting to more than EUR9 billion (US$10.10 billion), the
South African retailer's annual report showed on July 1.

According to Reuters, the report for the year ended September 2019
listed numerous court cases with claimants seeking more than EUR9
billion in payments or damages.  It also included Steinhoff's
annual results, with the retailer's full-year loss widening to
EUR1.8 billion from a EUR1.2 billion loss a year earlier, Reuters
notes.

Steinhoff's problems began in December 2017 when the company
revealed holes in its accounts, shocking investors in the
international retail group, which were the initial signs of an
accounting fraud since estimated to total US$7 billion, Reuters
recounts.

After a debt restructuring last year, the company said that
managing its litigation risks -- the second phase of its plan to
return to normality -- was now its focus, with these presenting a
"significant challenge", Reuters relays.

The company, as cited by Reuters, said its debt, which it
restructured last year, stood at EUR9.6 billion during the period.

Steinhoff International is a South African international retail
holding company that is dual listed in Germany.  Steinhoff deals
mainly in furniture and household goods, and operates in Europe,
Africa, Asia, the United States, Australia and New Zealand.


WIRECARD AG: Accounting Scandal a "Massive Criminal Act", BaFin Say
-------------------------------------------------------------------
Hans Seidenstuecker, Tom Sims and Matthias Inverardi at Reuters
report that the head of Germany's financial watchdog on July 2
called the accounting scandal at Wirecard "a massive criminal
act".

The comments from BaFin president Felix Hufeld are his most
outspoken yet about Wirecard, which last week filed for insolvency
owing creditors almost US$4 billion after disclosing a EUR1.9
billion (US$2.1 billion) hole in its accounts that auditor EY said
was the result of a sophisticated global fraud, Reuters relates.

BaFin, which oversaw Wirecard's banking subsidiary, has defended
its role after taking much of the flak so far for the scandal,
Reuters discloses.


WIRECARD AG: Deutsche Bank Working on Potential Bailout
-------------------------------------------------------
Olaf Storbeck at The Financial Times reports that Deutsche Bank is
working with German regulators on a potential bailout of Wirecard
Bank, the deposit-taking unit of the payments group at the centre
of one of the country's biggest postwar accounting frauds.

Wirecard Bank, which by the end of 2019 had EUR1.9 billion in total
assets, is based in a Munich suburb and is not part of its parent
group's insolvency proceedings, which were triggered last week when
the company said cash was missing and its biggest business had been
misrepresented, the FT relates.

According to the FT, Deutsche said it was "currently reviewing the
possibility of providing Wirecard Bank AG with financial support",
adding that this would be in co-ordination with Germany's financial
watchdog BaFin, the collapsed group's administrator, and the
lending unit's management.

"We are in principle prepared to provide this support in the
context of a continuation of business operations, if such
assistance should become necessary," Germany's largest lender, as
cited by the FT, said.  It did not disclose how much money it might
provide nor how any bailout could be structured, the FT notes.

BaFin, the FT says, installed a special representative in the
bank's headquarters to monitor management decisions and imposed a
partial payments ban to prevent the lender transferring certain
assets to Wirecard.  Wirecard Bank by the end of 2019 reported a
healthy capital ratio of 21% common equity to assets, the FT
discloses.

After the lender's owner Wirecard AG collapsed into insolvency on
June 25, BaFin was considering freezing assets at the bank but
concluded that the lender's situation was not bad enough to justify
such a move, a person with first-hand knowledge of the matter told
the FT.




=============
I R E L A N D
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APTIV PLC: Egan-Jones Raises Local Currency Unsec. Rating to B+
---------------------------------------------------------------
Egan-Jones Ratings Company, on June 26, 2020, upgraded the local
currency senior unsecured rating on debt issued by Aptiv PLC to B+
from B-.

Headquartered in Dublin, Ireland, Aptiv PLC manufactures and
distributes vehicle components.



BBAM EUROPEAN I: Fitch Assigns B-sf Rating on Class F Debt
----------------------------------------------------------
Fitch Ratings has assigned BBAM European CLO I Designated Activity
Company final ratings.

RATING ACTIONS

BBAM CLO I DAC

Class A;      LT AAAsf New Rating;  previously at AAA(EXP)sf

Class B-1;    LT AAsf New Rating;   previously at AA(EXP)sf

Class B-2;    LT AAsf New Rating;   previously at AA(EXP)sf

Class C;      LT Asf New Rating;    previously at A(EXP)sf

Class D;      LT BBB-sf New Rating; previously at BBB-(EXP)sf

Class E;      LT BB-sf New Rating;  previously at BB-(EXP)sf

Class F;      LT B-sf New Rating;   previously at B-(EXP)sf

Subordinated; LT NRsf New Rating;   previously at NR(EXP)sf

TRANSACTION SUMMARY

BBAM European CLO I Designated Activity Company is a securitisation
of mainly senior secured obligations (at least 90%) with a
component of senior unsecured, mezzanine, second-lien loans and
high-yield bonds. Note proceeds are being used to fund a portfolio
with a target par of EUR250 million. The portfolio is actively
managed by BlueBay Asset Management LLP (BlueBay). The
collateralised loan obligation (CLO) has a three-year reinvestment
period and a seven-year weighted average life (WAL).

KEY RATING DRIVERS

'B'/'B-' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'/'B-'
category. The Fitch weighted average rating factor (WARF) of the
identified portfolio is 33.2.

High Recovery Expectations

At least 90% of the portfolio will comprise senior secured
obligations. Fitch views the recovery prospects for these assets as
more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch weighted average recovery rate (WARR) of the
identified portfolio is 63.59%.

Diversified Asset Portfolio

The transaction includes four Fitch matrices that the manager may
choose from, corresponding to the top-10 obligor limits at 17% and
26.5% as well as maximum allowances of fixed-rate assets of 0% and
10%, respectively. These covenants, among others, ensure that the
asset portfolio will not be exposed to excessive concentration.

Portfolio Management

The transaction has a three-year reinvestment period and includes
reinvestment criteria similar to those of other European
transactions. Fitch's analysis is based on a stressed-case
portfolio with the aim of testing the robustness of the transaction
structure against its covenants and portfolio guidelines.

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, and to assess their effectiveness,
including the structural protection provided by excess spread
diverted through the par value and interest coverage tests.

When conducting cash flow analysis, Fitch's cash flow model first
projects the portfolio's scheduled amortisation proceeds and any
prepayments for each reporting period of the transaction's life
assuming no defaults (and no voluntary terminations, when
applicable). In each rating stress scenario, such scheduled
amortisation proceeds and prepayments are then reduced by a scale
factor equivalent to the overall percentage of loans that are not
assumed to default (or to be voluntarily 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:

  - A 25% reduction of the mean default rate across all ratings and
a 25% increase to the recovery rate across all ratings would lead
to an upgrade of up to five notches for the rated notes, except for
the class A notes as their ratings are at the highest level on
Fitch's scale and cannot be upgraded.

The transaction features a reinvestment period and the portfolio is
actively managed. At closing, Fitch uses a standardised stress
portfolio (Fitch's stressed portfolio) that is customised to the
specific portfolio limits for the transaction as specified in its
documents. Even if the actual portfolio shows lower defaults and
smaller losses (at all rating levels) than Fitch's stressed
portfolio assumed at closing, an upgrade of the notes during the
reinvestment period is unlikely, as the portfolio credit quality
may still deteriorate, not only through natural credit migration,
but also through reinvestments.

After the end of the reinvestment period, upgrades may occur in
case of a better-than-initially expected portfolio credit quality
and deal performance, leading to higher credit enhancement for the
notes and excess spread available to cover for losses on the
remaining portfolio.

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

  - A 25% increase of the mean default rate across all ratings and
a 25% decrease of the recovery rate to all ratings would lead to a
downgrade of up to five notches for the rated notes.

Downgrades may occur if the build-up of credit enhancement
following amortisation does not compensate for larger loss
expectation than initially assumed due to unexpectedly high levels
of defaults and portfolio deterioration. As the disruptions to
supply and demand due to COVID-19 become apparent for other
sectors, loan ratings in those sectors would also come under
pressure. Fitch will update the sensitivity scenarios in line with
the views of its Leveraged Finance team.

Coronavirus Baseline Scenario Impact:

Fitch carried out a sensitivity analysis on the target portfolio to
envisage the coronavirus baseline scenario. The agency notched down
the ratings for all assets with corporate issuers on Negative
Outlook regardless of sector. This scenario shows resilience of the
notes' ratings, with substantial cushion across all rating
scenarios.

Fitch also considered the possibility that the stress portfolio,
determined by the transaction's covenants, would further
deteriorate due to the impact of coronavirus mitigation measures.
Fitch believes this risk is adequately addressed by the inclusion
of the downwards notching by a single rating notch of all
collateral obligations on Negative Outlook for the purpose of
determining compliance with Fitch WARF at the effective date.

Coronavirus Downside Sensitivity:

Fitch has added a sensitivity analysis that contemplates a more
severe and prolonged economic stress caused by a re-emergence of
infections in the major economies, before a halting recovery begins
in 2Q21. The downside sensitivity incorporates a single-notch
downgrade to all Fitch-derived ratings in the 'B' rating category
and applying a 0.85 recovery rate multiplier to all other assets in
the portfolio. Under this downside scenario, the ratings would be
one to five notches below the current ratings.




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

MONTE DEI PASCHI: DBRS Confirms B(high) Issuer Rating, Trend Neg.
-----------------------------------------------------------------
DBRS Ratings GmbH confirmed the ratings of Banca Monte dei Paschi
di Siena SpA (BMPS or the Bank), including the Long-Term Issuer
Ratings of B (high) and the Short-Term Issuer Ratings of R-4
following an annual review of the Bank's credit profile. DBRS
Morningstar also confirmed the Long-Term and Short-Term Critical
Obligations Ratings (COR) at BBB (low)/R-2 (middle) and the Trend
remains Stable.  This reflects DBRS Morningstar's expectation that,
in the event of a resolution of the Bank, certain liabilities (such
as payment and collection services, obligations under a covered
bond program, payment and collection services, etc.) have a greater
probability of avoiding being bailed-in and are likely to be
included in a going-concern entity. The Bank's Deposit ratings were
confirmed at BB (low)/R-4, one notch above the IA, reflecting the
legal framework in place in Italy which has full depositor
preference in bank insolvency and resolution proceedings.  The
trend on the Bank's long-term ratings remains Negative and the
trend on the short-term ratings remains Stable.  DBRS Morningstar
has also maintained the Intrinsic Assessment at B (high) and the
Support Assessment at SA3.

KEY RATING CONSIDERATIONS

In maintaining the negative Trend, DBRS incorporates its view that
the wide scale of economic and market disruption resulting from the
coronavirus (COVID-19) pandemic will put additional pressure on the
Bank's profitability and balance sheet.  The challenging operating
environment in Italy is expected to affect the Bank's revenues,
asset quality and cost of risk. The impact will likely emerge in Q2
2020 onwards, whilst the implications for the medium to long-term
will depend on the evolution of the pandemic and the recovery of
economic activity in Italy.  Downward rating pressure would
intensify should the crisis be prolonged.

DBRS said, "We will also continue to monitor the performance of the
Bank's asset quality and earnings, as well as the measures being
taken to support its franchise and customer base, including the
implementation of the debt moratoriums. At the same time, we take
into account the impact of unprecedented support measures
implemented by the Italian government, as well as several other
international authorities and central banks. In our view, the high
levels of social support in Italy will mitigate the impact of the
crisis on the retail and SME side."

The confirmation of the ratings takes into account the Group's
improved asset quality profile, evidenced by the lower stock of
non-performing exposures (NPEs) as well as the further overall
progress made by the Bank in 2019 and Q1 2020 on its 2017-2021
restructuring plan.  The Bank has been able, since its
precautionary recapitalization, to restore operating profitability
and make progress in cleaning the balance sheet. We also understand
that the Bank could proceed with further potential NPE disposals,
which in our view is key to a successful exit from the Italian
government ownership.  Nevertheless, overall profitability remains
weak and the stock of NPEs high compared to domestic and
international peers and we expect a deterioration of the Bank's
risk profile as a result of the COVID-19 pandemic, albeit mitigated
by the Italian government and the European authorities' support
measures.  The confirmation of the ratings also incorporates the
stable funding and liquidity profile, which had improved before the
COVID-19 crisis. BMPS was able to restore its access to the
wholesale markets through issuances of Senior and Tier 2 bonds,
benefiting from the positive funding environment in Italy before
March 2020. The ratings also take into account the Bank's adequate
capital position, albeit still pressured by the high NPE exposures
and losses in Q4 2019 and Q1 2020.

RATING RATIONALE

BMPS is Italy's fourth largest bank by total assets and has a
significant market share in its home region of Tuscany.  The Bank
is currently undertaking a restructuring plan for 2017-2021,
following the approval of the Italian State's precautionary
recapitalization of the Bank in 2017.  As part of this plan, in
2019 and Q1 2020, BMPS continued to reduce its NPEs and improve
efficiency with the closure of branches and headcount reduction.
Nonetheless, the Bank continues to face several challenges,
particularly in terms of revenue generation and weak asset quality.
In line with State Aid procedures and the restructuring plan, the
Italian Ministry of Finance (MEF), which is BMPS's main shareholder
with a 68% stake, is expected to submit an exit plan to the
European Commission in 2020.  In DBRS Morningstar's view, any plan
is likely to be preceded by an acceleration in the Bank's
de-risking plan, which we view as essential.

BMPS's profitability remained weak in Q1 2020 as the Bank reported
a net loss of EUR244 million compared to net income of EUR28
million in Q1 2019, mainly driven by additional provisions to
incorporate an expected deterioration in the operating environment
due to COVID-19.  Total revenues decreased around 9% YoY, mainly
due to lower Net Interest Income (NII) affected by the persistent
low interest rate environment.  However, this was partly mitigated
by fees and commissions, which were up YoY despite the impact of
the lockdown in place in Italy, driven by sustained activity in the
first two months of the year and the lower cost of the state
guarantees following their repayment.  Provisions were up YoY as
the Bank booked EUR315 million of provisions for credit losses in
Q1 2020, of which EUR 193 million related to the revision of the
macroeconomic scenario for COVID-19. The cost of risk stood at 83
bps, with COVID-19 related provisions representing 23 bps.  DBRS
Morningstar expects the Bank's cost of risk to increase in the next
quarters as a result of a step-up in loan loss provisioning to
reflect the likely deterioration of its loan portfolio. BMPS has
maintained progress in reducing its operating costs, which
decreased by 3.6% YoY to EUR 548 million in Q1 2020, on the back of
the Bank's restructuring plan.  Nonetheless, the cost-to-income
ratio (as calculated by DBRS Morningstar) increased to 75% from
70.7% in Q1 2019, due to the more adverse scenario for revenue
generation. DBRS Morningstar expects cost discipline to remain a
key driver to ensure enough flexibility for the Bank during the
current challenging operating environment.

The Group's asset quality continued to improve in 2019 and Q1 2020.
The total stock of gross non-performing loans (NPLs) decreased to
EUR 11.6 billion at end-March 2020 from EUR 16.8 billion at
end-2018.  The reduction was mainly achieved through NPE disposals
and reductions of around EUR 4.7 billion completed in 2019 (EUR 2.0
billion in UTPs and EUR 2.7 billion in bad loans), as well as
increasing workout activities.  The Group's gross NPL ratio
decreased to 11.8% at end-March 2020 from 17.3% at end-2018, whilst
the net NPL ratio slightly improved to 6.4% from 9.0% in the same
period.  Nevertheless, the Bank's NPL ratios continue to compare
unfavorably with the European average and, whilst we expect further
disposals, DBRS expects the NPL ratio to deteriorate going forward
as the COVID-19 crisis unfolds.

BMPS is largely funded by deposits from retail and corporate
clients.  Access to wholesale markets remains expensive.
Nonetheless, with improving market conditions and lower sovereign
spread yields at the beginning of the year, the Bank returned to
the wholesale market in January 2020, with the issuance of EUR 400
million of Tier 2 subordinated notes and EUR 750 million of Senior
Bonds.  DBRS Morningstar expects relatively limited short-term
downside risk to the Bank's funding profile as a result of the
COVID-19 outbreak given the ECB's assistance.  In Q1 2020, BMPS
completely reimbursed the Government Guaranteed Bonds that matured
in January (EUR 4 billion) and March (EUR 4 billion).  At end-March
2020, the Bank maintains an acceptable liquidity position with a
stock of unencumbered assets of EUR21.7 billion, corresponding to
circa 16% of the Bank's total assets.  LCR and NSFR were reported
at 162% and 113% respectively at end-March 2020.

In 2019, BMPS's capitalization remained adequate, although still
pressured by the high NPE exposures, which could pose challenges in
the current environment.  At end-March 2020, BMPS reported a fully
loaded Common Equity Tier 1 (CET 1) ratio of 11.9%, down 80 bps
from end-2019, mainly impacted by the phasing-in of the IFRS9
full-time application, lower FVTOCI reserves due to spread widening
amidst the COVID-19 crisis and higher risk-weighted assets.  The
fully loaded total capital ratio stood at 14.5% at end-March 2020.
This continues to provide the Group with a comfortable buffer over
the Overall Capital Requirement (OCR) for CET1 (phased-in) ratio
which was lowered to 8.83% from 10.14% following the Pillar 2
Requirement (P2R) tiering measures announced by the ECB.  The
minimum Overall Capital Requirement (OCR) for total capital
(phased-in), which includes the AT1 and Tier 2 buckets, remains
broadly unchanged at 13.64%.

RATING DRIVERS

Any upgrade is unlikely in the short-term given the Negative trend.
However, the trend on the Long-Term ratings could revert to Stable
if the Bank were able to demonstrate limited earnings and asset
quality impact from the global COVID-19 pandemic.  An upgrade could
also occur should the Bank achieve substantial further progress in
asset quality.

A downgrade would likely be driven by a significant deterioration
in the Bank's profitability or capital as a result of the global
COVID-19 pandemic.  A downgrade could also occur should the Bank
experience severe delays in its restructuring plan.

ESG CONSIDERATIONS

DBRS Morningstar views the Business Ethics and the
Corporate/Transaction Governance ESG subfactors as significant to
the credit rating.  These are included in the Governance category.

The Bank has suffered a reputational impact from legacy conduct
issues, in particular litigation risk linked to former capital
increases and the ongoing investigation regarding fraudulent sale
of diamonds by Italian banks.  In addition, BMPS is 68% owned by
the Italian State because of a precautionary recapitalization which
is subject to an EU restructuring plan.

Notes: All figures are in EUR unless otherwise noted.


SISAL GROUP: Moody's Alters Outlook on B1 CFR to Stable
-------------------------------------------------------
Moody's Investors Service has confirmed the ratings of Sisal Group
S.p.A., an Italian-based gaming operator, including the B1
corporate family rating, the B1-PD probability of default rating
and the B1 instrument ratings on the senior secured notes due 2023.
At the same time, Moody's has changed the outlook to stable from
ratings under review. This concludes the review process initiated
on March 27, 2020.

RATINGS RATIONALE

Its rating action reflects Sisal's ability to preserve its
liquidity during the three-month lockdown and Moody's expectations
that the company will maintain adequate credit metrics for the B1
rating category in the next 12-18 months. Sisal Gaming's land-based
network re-opened on the June 15, 2020 and the major European
football leagues restarted in May and June, broadly in line with
its initial assumptions. This will support the company's retail and
sports betting operations to gradually return to pre-coronavirus
levels. In parallel, the Lottery business only closed in April and
the online division remained active throughout the lockdown, which
allowed the company to generate revenue during the crisis and
partly cover fixed costs.

Following a year characterized by unprecedented disruptions,
Moody's expects Sisal to return to EBITDA growth in 2021 (compared
to 2019), underpinned by the continued strong growth in the online
segment and the contribution from its International segment.
Nonetheless, Moody's expects social distancing measures to have a
moderate impact on its retail division, in the range of 10-15%
decline in gross gaming revenues. Overall, Moody's projects Moody's
adjusted leverage to return towards 2.0x in 2021, after a spike
close to 4.0x in 2020.

In Q1 2020, Sisal Gaming reported a 10.3% rise in EBITDA despite
the negative impact from the coronavirus outbreak in March. This
strong performance was primarily driven by the online segment,
which more than mitigated the decline in gaming machines caused by
higher taxation.

LIQUIDITY PROFILE

Sisal Gaming has adequate liquidity supported by EUR222 million of
cash on balance sheet as of March 31, 2020, including EUR100
million of drawn revolving credit facility, and Moody's
expectations of positive free cash flow in the second semester of
2020. The RCF documentation does not contain any financial
covenants.

Sisal Gaming is now expected to make the payment for the second
instalment (EUR111 million) of the NTNG license renewal in August
2020, a two-month postponement from the initial date. However,
Moody's understands that there is the option to further postpone
this instalment to 2021 in order to maintain an adequate level of
liquidity and the Agency expects to have more clarity on this in
the coming months. Without the postponement of the second
installment, Sisal's liquidity could become more stretched. The
company would remain heavily reliant on its RCF in the next 12-18
months and this combined with the overall weaker levels of
liquidity would more weakly position the company at the current
rating level.

STRUCTURAL CONSIDERATIONS

Using Moody's Loss Given Default methodology, Sisal's PDR and the
rating of the senior secured notes remain in line with the CFR.
This is based on a 50% recovery rate, as is typical for a debt
capital structure that consists of super senior bank debt and
senior secured notes. The RCF and the notes share the same security
- share pledges and intercompany loans - and they rank pari passu.
Nonetheless, the RCF has priority over the proceeds in an
enforcement under the Intercreditor Agreement.

RATING OUTLOOK

The stable outlook reflects Moody's view that Sisal Gaming will
return to normal activity in 2021, while benefiting from the
continued growth in the online segment. It also reflects its
expectations that Moody's adjusted-leverage will decrease towards
2.0x in the next 12-18 months. The stable outlook assumes that the
company will maintain adequate liquidity regardless of whether the
company pays or postpones its NTNG license renewal and will not
engage in material debt-funded acquisitions or shareholder
distributions.

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

Positive pressure on the rating could occur if: (i) the company
materially diversifies its product offering beyond the gaming
market or geographical presence outside of Italy; (ii)
Moody's-adjusted leverage remains sustainably below 2.5x while
achieving meaningful positive free cash flow, as well as good
liquidity; (iii) Moody's has greater clarity over the company's
financial policy and a degree of certainty that debt-funded
acquisitions or dividend recaps will not lead to a weakening in
current credit metrics.

Negative pressure on the rating could occur if: (i) the company's
performance weakens or is hurt by a changing regulatory and fiscal
regime; (ii) Moody's-adjusted leverage rises sustainably above
4.0x; (iii)free cash flow deteriorates and liquidity weakens.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Gaming Industry
published in December 2017.

COMPANY PROFILE

Founded in 1946 and headquartered in Milan, Sisal Gaming is the
second largest operator in the Italian gaming market. The company
offers slot machines and video lottery terminals, betting, lottery
games through a network of approximately 40,000 point of sales
consisting of newsstands, bars, tobacconists, betting shops and
corners, points of sale dedicated to gaming, gaming halls and an
online platform. The company was the first Italian company to
operate in the gaming sector as a government concessionaire and it
has been operating for over 70 years., the company operates in
three business units: (i) Retail; (ii) Online; and (iv)
International. In 2019, Sisal Gaming reported EUR654 million of
revenues and EUR201 million of EBITDA. In December 2019, the
company carved-out of its payments and services business, Sisal Pay
S.p.A. (B2, stable).




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

B&M EUROPEAN: Moody's Rates New Secured Notes Ba3, Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service has assigned a Ba3 rating to B&M European
Value Retail S.A.'s new senior secured notes announced earlier. The
company will use the proceeds from the issuance of the notes as
well as the proceeds from new bank facilities to refinance the
outstanding senior secured notes and existing bank facilities.
Moody's expects the transaction to be broadly leverage neutral.

The company plans to issue new GBP250 million 5-year senior secured
notes to refinance the outstanding GBP250 million 4.125% senior
secured notes maturing in February 2022. At the same time, the
company intends to issue a GBP300 million term loan A and a new
GBP150 million revolving credit facility. The notes and the new
loan facilities will rank pari passu and both have a maturity 5
years and 4 years and 9 months respectively. The new notes will be
issued by the ultimate listed parent company of the group, B&M
European Value Retail S.A., which is the same issuing entity of the
previous notes. The security will consist of share pledges of the
guarantors, fixed and floating charges over substantially all of
the guarantors' and issuer's property and assets in England and
pledges over certain bank accounts.

The bank facilities (unrated) will be issued by B&M European Value
Retail Holdco 4 Ltd, the same entity currently holding the group
bank debt, and guaranteed by material subsidiaries representing 80%
of consolidated group adjusted EBITDA.

The company's current Ba3 corporate family rating and stable
outlook are unaffected by the planned issuance.

RATINGS RATIONALE

B&M's Ba3 corporate family rating reflects the company's focus on
fast-growing retail niche markets, good scale, low-cost
propositions and above-average profitability compared with
traditional retailers. B&M's business model is based on a narrow
selection of items across a broad range of grocery and general
merchandise product groups, direct sourcing and a simple low-cost
approach, resulting in selling prices significantly and
consistently below those offered by both specialist and general
retailers. The company's focus on selected best-selling products
through constant monitoring of prevailing consumer trends, in-house
product design capabilities and direct sourcing process are key to
its ability to offer products at competitive or even disruptive
prices.

The rating is constrained by the company's limited size compared
with its larger rated peers, a degree of execution risk related to
its ongoing expansion, also outside its domestic UK market, and the
limited scope for significant debt reduction as management
prioritises growth and shareholder returns. Additionally, the UK
retail industry continues to pose headwinds, as reflected in
Moody's negative outlook for the sector.

Moody's expects that B&M's Moody's adjusted debt/EBITDA ratio will
deteriorate slightly in fiscal 2021, ending March 2021, but remain
well within the 3.75x-4.5x range expected for its rating over the
next 12 months. Business rates relief is expected to be fully
offset by coronavirus-related costs in fiscal 2021 if social
distancing measures are required throughout fiscal 2021. The rating
agency estimates that B&M generated Moody's adjusted EBITDA of
GBP523 million in fiscal 2020 compared with GBP489 million in
fiscal 2019, both figures being close to the reported figures
restated for IFRS 16. Moody's also estimates that B&M had Moody's
adjusted gross debt of GBP2.1 billion as at 28 March 2020, compared
with GBP1.9 billion in March 2019, which is broadly unchanged since
September 2019. B&M implemented IFRS 16 from the start of fiscal
2020, resulting in a GBP50 million increase in reported capitalised
leases compared to Moody's previous lease adjustment of around
GBP1.2 billion. Based on the above, Moody's adjusted debt to EBITDA
was 3.95x at the end of March 2020 compared with 4.0x in September
2019 and 3.9x in March 2019.

Management have said that shoppers may be reluctant to queue in
autumn and winter months, an issue which will reduce earnings,
given the company lacks an online business. As well as having no
online operations, its business model does not lend itself to click
and collect either: it sells low priced items and its stores are
generally smaller than those of UK grocers. Higher than usual
temperatures in the UK during the lockdown boosted garden and DIY
sales, but much of this could be a pull-forward from the second
quarter. The vast majority of B&M's and Heron's stores in the UK
continued to trade during the lockdown, while the group's stores in
France were forced to close for the eight weeks to 11 May.

LIQUIDITY

Assuming successful completion of the envisaged refinancing,
Moody's view B&M's liquidity as more than adequate, with GBP158
million cash on balance sheet as at March 2020, a GBP150 million
undrawn revolving credit facility, and no near-term debt
maturities. The rating agency expects the company to generate
limited free cash flow given its ambitious plans to open new stores
and continue to make distributions to shareholders, constraining
any improvement in debt metrics. Management has also hinted that it
may consider opening more new stores than already planned, as long
as B&M's brand continues to resonate well with customers.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Like all consumer facing businesses, the company is exposed to the
risk of reputational damage in the event that its actions harmed
customers or were perceived to harm them. Moodys' understands that
B&M is aware of the importance of quality control and ethical
standards in relation to the activity of its suppliers. B&M's
ability to provide competitive prices also relies on its low-cost
sourcing strategy that often sidesteps distributors to access
manufacturers directly. Around two-thirds of the general
merchandise sold in stores is directly sourced from the Far East,
mostly China. However, this also creates a degree of vulnerability
to any cost inflation in China or product quality and safety
concerns.

Financial policies are clear and balanced between the interests of
shareholders and credit investors. The company is on record with
the statement that it intends to maintain reported leverage below
2.25x (based on pre IFRS 16 figures) [1]. B&M's capital policy is
to allocate cash surpluses in the following order of priority: (1)
the roll-out of new stores with a strong payback profile; (2)
ordinary dividend cover to shareholders; (3) mergers & acquisition
opportunities; and (4) returns of surplus cash to shareholders. The
company has a dividend policy which targets a pay-out ratio of
between 30%-40% of net income on a normalised tax basis. Since
listing in 2014, the company has continued to develop its approach
to governance as it grows and matures but remains somewhat weak, in
Moody's opinion.

STRUCTURAL CONSIDERATIONS

The Ba3 rating on the senior secured notes, in line with the
corporate family rating, reflects the pari passu capital structure
and, hence, the shared security and guarantee portfolio with the
term loan A and the revolving credit facility, although the latter
have slightly shorter maturities.

RATING OUTLOOK

The outlook on B&M's rating is stable and reflects its expectations
that the company's profitability, cash flow generation and leverage
will remain around current levels over the next 12-18 months.

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

Positive rating pressure could develop if all the following
expectations are met: (i) sustained good liquidity, with extended
and long dated debt maturities; (ii) Debt/EBITDA remaining
sustainably below 3.75x, with financial policies in line with a
lower leverage; (iii) greater scale and diversification both
geographically and by product category; and (iv) meaningful,
positive free cash flow generation. Conversely, negative rating
pressure could develop if any of the following occurs: (i)
weakening liquidity; (ii) Debt/EBITDA rising above 4.5x; (iii) a
significant weakening in profitability; or (iv) a more aggressive
growth strategy or financial policy. All ratios mentioned in the
factors for an upgrade/downgrade are on a Moody's adjusted basis.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Retail Industry
published in May 2018.

LIST OF AFFECTED RATINGS:

Assignments:

Issuer: B&M European Value Retail S.A.

Backed Senior Secured Regular Bond/Debenture, Assigned Ba3

B&M European Value Retail S.A. is a fast-growing European value
retailer and discounter competing in both the general merchandise
and grocery markets, through its store brands B&M and Heron Foods
in the UK, and Babou in France. The company is headquartered in
Liverpool and listed on the London Stock Exchange. The Arora family
is the largest shareholder, holding 15% of the share capital as
well as voting rights.


EDREAMS ODIGEO: Moody's Alters Outlook on B3 CFR to Negative
------------------------------------------------------------
Moody's Investors Service has confirmed the B3 corporate family
rating of eDreams ODIGEO S.A. The rating agency has also confirmed
eDreams' probability of default rating at B3-PD, and has confirmed
the Caa1 rating on the EUR425 million senior secured notes due
2023. Concurrently, Moody's has changed the outlook to negative
from ratings under review on the company's CFR, PDR and rating on
the EUR425 million senior secured notes due 2023. This rating
action concludes the review for downgrade that was initiated on
April 3, 2020.

"The decision to confirm eDreams' rating at B3 and change the
outlook to negative reflects the significant impact that the
coronavirus outbreak and the ensuing economic downturn is expected
to have on the company's financial performance during the course of
2020" said Fabrizio Marchesi, Vice President-Senior Analyst and
Moody's lead analyst for the company. "That said, it also takes
into account the expectation of a gradual recovery in travel
volumes from 2021 onwards and the company's adequate liquidity
position" added Mr. Marchesi.

RATINGS RATIONALE

Although eDreams performed well in the period to December 2019,
achieving, for instance, a Moody's-adjusted (gross) debt/EBITDA
ratio of 3.5x as at 31 December 2019, its credit quality is
expected to deteriorate significantly going forward because of the
impact that coronavirus-related travel restrictions are having on
bookings and hence earnings and cash flows. The rating agency
estimates that the company's Moody's adjusted EBITDA will fall
towards EUR30-35 million in its fiscal year ended March 31, 2021,
from EUR122 million in the LTM period to December 2019, with
Moody's adjusted (gross) leverage increasing to around 16x as at
March 31, 2021.

The company is expected to benefit from an improvement in air
traffic volumes, which are anticipated to gather pace into the
company's fiscal 2022 and lead to a recovery in Moody's adjusted
EBITDA towards EUR75-85 million, and an improvement in Moody's
adjusted leverage towards 7x, by fiscal year end March 31, 2022.
While this leverage will remain high for the B3 rating, this is
partially offset by eDreams' adequate liquidity. Liquidity amounted
to EUR241 million at the end of December 2019, and is expected to
cover the cash outflows related to an unwind of the company's net
working capital during the course of the first half of 2021 and
until an improvement in travel bookings take place.

eDreams' B3 CFR is constrained by (1) the company's geographic
concentration in Southern Europe and France, which together
represented around half of its revenue; (2) industry risks,
including value chain disintermediation from airlines or other
intermediaries; (3) exposure to paid search costs and overall
sensitivity to variable costs per booking; and (4) the risks of
exogenous shocks (including terrorism and pandemics).

Nevertheless, the company's rating benefits from (1) good
competitive positioning within the European OTA industry,
particularly within the flight segment, and in the company's main
markets of France, Spain, Italy, Germany, the UK and the Nordics;
and (2) continued migration to the online travel market from
high-street travel agencies.

Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety. Its action reflects the impact of the breadth and
severity of the shock, as well as the expect impact on the credit
quality of the company.

From a governance standpoint, eDreams, as a listed entity, provides
more transparency when compared to similarly-rated, privately held
companies. Its board is composed of nine members and is somewhat
diversified - apart from 4 proprietary members (2 each from Ardian
and Permira), it is also composed of the CEO, the CFO and 3
independent directors (including the chairman of the board).

LIQUIDITY

Moody's views eDreams' liquidity as adequate. The company's
liquidity consisted of EUR72 million of cash on balance and a
largely undrawn EUR175 million revolving credit facility as at 31
December 2019. Although Moody's anticipates a significant portion
of this liquidity will be used to fund working capital outflows, it
also expects liquidity to reach a trough during the company's
fiscal first quarter and rebuild as travel volumes recover, albeit
slowly, from June 2020 onwards.

Importantly, management secured a waiver on the RCF's springing
gross leverage covenant for fiscal 2021. This covenant is set at 6x
gross leverage, and tested if the RCF is drawn by more than 30%. A
breach of this covenant constitutes an event of default.

STRUCTURAL CONSIDERATIONS

The company's capital structure consists of (1) a EUR175 million
super-senior revolving credit facility maturing in 2023; and (2)
EUR425 million of senior secured notes also maturing in 2023.

The senior secured notes rank behind the super-senior facility and
their security is limited largely to share pledges.

RATING OUTLOOK

The negative outlook is driven by the significant uncertainty
regarding the depth and duration of the current decline in global
demand for travel related services and any associated rebound in
travel volumes across global regions and within regional borders.

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

Positive rating pressure is not expected in the short to medium
term. However, the rating could be stabilized if (1) it becomes
clear that the impact of the coronavirus epidemic on travel volumes
and economic activity will be less pronounced than anticipated; (2)
Moody's-adjusted leverage is forecast to improve to around 5.0x on
a sustained basis; (3) cash flow generation turns positive on a
sustained basis, and (4) liquidity is maintained at an adequate
level.

Conversely, negative rating pressure could occur if (1) travel
volumes fail to recover to the degree currently anticipated,
leading to a more significant or prolonged decline in profitability
and a deterioration in interest cover to below 1.5x; and (2)
Moody's-adjusted leverage remains above 6.0x and if this is not
sufficiently compensated by positive Moody's adjusted free cash
flow (FCF) or adequate liquidity. A sustained deterioration in the
company's liquidity or heightened concerns regarding the ability of
the company to meet its obligations as they fall due could also
lead to negative rating action.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

eDreams is the largest OTA in the European flight segment. It was
formed in 2011 when Axa (now Ardian) and Permira acquired Opodo and
merged it with their existing portfolio travel companies to create
a European rival to Expedia Group, Inc. eDreams was listed in Spain
in 2014. In fiscal 2019, the company reported revenue and
company-adjusted EBITDA of EUR551 million and EUR120 million,
respectively.




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

HEMA: Noteholders Set to Take Over Through Debt-for-Equity Swap
---------------------------------------------------------------
Sandrine Bradley at Reuters reports that Dutch retailer Hema's
senior secured noteholders (SSNs) are set to take over the business
through a debt-for-equity swap, as more than 80% of noteholders
agreed to a debt restructuring, banking sources said.

On June 15, the company entered lock-up, as 100% of its RCF lenders
and 62% of its EUR600 million, 2022 SSNs agreed to the
restructuring, Reuters relates.  However, a threshold of 75% of SSN
support was needed before the deal could be implemented, Reuters
notes.

According to Reuters, one of the sources said around 80% of SSNs
now support the deal, meaning it can go ahead.

Under the terms of the debt restructuring, EUR300 million of the
SSNs will be written off in return for almost 100% of the business,
Reuters discloses.

The restructuring will reduce the company's cash interest payments
to around EUR30 million, from around EUR50 million per annum,
Reuters states.

The source, as cited by Reuters, said the restructuring is expected
to complete by September.

In April, Hema, owned by Dutch billionaire Marcel Boekhoorn through
his investment vehicle Ramphastos Investments, mandated Goldman
Sachs to advise on the debt restructuring, Reuters recounts.  The
company's senior secured bondholders mandated Moelis, Reuters
states.

The company, which was already struggling with a high debt pile,
has been hit further by the impact of Covid-19, according to
Reuters.

Hema is a general merchandise retailer, offering apparel, home,
personal care and food products and operates a network of over 750
stores mainly in the Benelux but also in France, Germany, Spain and
the UK.




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

AKER BP: Moody's Alters Outlook on Ba1 CFR to Stable
----------------------------------------------------
Moody's Investors Service changed the outlook of Aker BP ASA to
stable from negative. Concurrently, Moody's affirmed Aker BP's Ba1
corporate family rating and Ba1-PD probability of default rating as
well as the Ba1 ratings assigned to its senior unsecured notes.

RATINGS RATIONALE

Its outlook stabilisation reflects Moody's expectation that Aker BP
will continue to demonstrate strong resilience despite the current
weaker oil price environment. In the near term, the group's
operating profitability will be constrained by lower oil and gas
price realisations. However, this should be mitigated by
incremental production following the successful ramp-up of the
Johan Sverdrup field and Valhall Flank West since October 2019,
high production efficiency and low operating costs of around
$8-9/barrel of oil equivalent based on a US dollar to Norwegian
krone exchange rate of 9.5. In addition to management's decision to
halve the company's dividend to $425 million in 2020 amid weak oil
market conditions, Aker BP's cash flow and liquidity profiles will
benefit from Norway's attractive fiscal regime, that was recently
further enhanced by the temporary changes to the petroleum tax
agreed by the Norwegian parliament.

Assuming 2020 production averages around 212 thousand boe per day
(kboepd) in line with the mid-point of management's guidance, Brent
of $35/bbl and a unit operating cost of around $8.5/boe, Moody's
estimates that Aker BP would post Moody's-adjusted EBITDA of around
$2.2 billion in 2020. After capital and exploration expenditure of
around $1.6 billion, lease debt payments of around $110 million and
annual dividends of $425 million, Moody's projects that Aker BP
would generate moderate negative free cash flow of around $300
million in 2020. However, leverage should remain moderate with
Moody's-adjusted total debt to EBITDA rising to 1.7x (v. 1.5x in
2019), while retained cash flow to total debt should benefit from
the cut in dividends and increase to around 36% at year-end 2020.

The Ba1 rating continues to reflect Aker BP's solid position as a
mid-sized oil and gas exploration and production company on the
Norwegian Continental Shelf, underpinned by sizeable 2P reserves of
906 million boe equivalent to 11.7 years of 2020 production based
on the mid-point of management's guidance.

LIQUIDITY

Aker BP's liquidity position is robust. Following a bond issuance
of $1.5 billion in January 2020, the group had $323 million in cash
and cash equivalents and $3.7 billion available under its $4
billion revolving credit facility at the end of Q1 2020. This
comprises a $2 billion working capital facility expiring in May
2022 and a $2 billion liquidity facility expiring in May 2025 (with
one 12-month extension option remaining).

This leaves the group with ample liquidity to repay its NOK1.9
billion ($200 million) bond falling due in July 2020 and cover any
potential shortfall in FCF. The group's next bond maturity of $400
million falls due in July 2022.

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

The rating could be upgraded to Baa3 if Aker BP demonstrates the
ability to: (i) sustain production well in excess of 200 kboepd
over the medium-term while maintaining a reserve replacement rate
of no less than 100%; ii) pursue financial policies which ensure
that adjusted RCF to total debt is maintained above 40% on a
sustained basis; and (iii) materially strengthen its FCF generating
capacity amid a constant need to access and develop new hydrocarbon
resources. The rating upgrade would also require the group to
maintain a strong liquidity profile.

The rating could be downgraded to Ba2 if: (i) average production
falls below 150 kboepd on a sustained basis; (ii) Aker BP's
financial profile materially deteriorates and leverage increases so
that adjusted RCF to total debt falls below 20% for an extended
period of time. The rating could also be downgraded should the
group's liquidity profile significantly weaken.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Independent
Exploration and Production Industry published in May 2017.

Aker BP ASA is a Norwegian oil and gas company primarily involved
in the exploration, development and production of petroleum
resources on the Norwegian Continental Shelf. Its production assets
are entirely located in Norway and the company operates around 78%
of its producing fields. In 2019, Aker BP reported an average
production (on a working interest basis) of 156 kboepd, revenues of
$3.35 billion and proved plus probable (2P) reserves of 906 million
barrels of oil equivalent. Aker BP is owned 40% by Aker ASA, 30% by
BP p.l.c. (A1 negative) and the remaining is free float.




===============
P O R T U G A L
===============

CAIXA ECONOMICA MONTEPIO: Fitch Cuts IDR to B-, Outlook Negative
----------------------------------------------------------------
Fitch Ratings has downgraded Caixa Economica Montepio Geral, Caixa
economica bancaria, S.A.'s Long-Term Issuer Default Rating to 'B-'
from 'B+' and Viability Rating to 'b-' from b+'. The ratings have
been removed from Rating Watch Negative and the Outlook on the
Long-Term IDR is Negative.

Fitch has removed Banco Montepio's short-term senior preferred debt
rating from RWN to correct an error.

KEY RATING DRIVERS

IDRS AND VR

The two-notch downgrades of Banco Montepio's Long-Term IDR and VR
reflect the marked deterioration in capitalisation in 1Q20 and in
operating profitability prospects, as well as Fitch's expectation
that the financial profile will deteriorate further in the coming
quarters.

Banco Montepio's total capital ratio dropped below its regulatory
requirement when including the capital conservation buffer at
end-March 2020. The bank stayed within the temporary regulatory
allowance, and given widespread regulatory forbearance, Fitch does
not expect any regulatory intervention as a result. Banco Montepio
is currently implementing capital remediation actions, which Fitch
believes could help stabilise or improve solvency metrics by the
end of the year.

However, Fitch no longer views the bank's capital position as
commensurate with a 'B+' rating, particularly in the context of
heightened risks to asset quality and operating profit from the
economic fallout of the coronavirus crisis in 2020-2021, and this
is a factor of high importance in Banco Montepio's ratings.

The Negative Outlook on Banco Montepio's Long-Term IDR reflects
medium-term risks to the bank's financial profile from the economic
fallout from the crisis. In addition to its low capital buffers,
the bank has limited organic capital generation capacity given the
high level of problem assets on its balance sheet compared with
Portuguese and international peers and low operating profitability.
The bank therefore entered the downturn from a position that leaves
it with very limited strategic options, as it will have to
prioritise capital remediation measures and a deep restructuring of
its commercial network to improve efficiency.

The bank's business model essentially focuses on retail and
commercial banking activities in Portugal, mainly residential
mortgage and SME lending. Its performance has been highly variable
and business model vulnerable to the prolonged period of low
interest rates and fierce domestic competition. Following the weak
performance in 1Q20 and the pressing need to turn its business
model around, Banco Montepio decided to accelerate its digital
transition through the announced merger of 31 branches (about 10%
of the total domestic branch network). Fitch believes further
restructuring efforts may follow to increase medium-term cost
savings, which should ultimately support pre-impairment operating
profitability.

Corporate governance dynamics at Banco Montepio and its majority
shareholder, Montepio Geral Associação Mutualista, have led to
significant risks for the bank's creditors, in its view. This is
why Banco Montepio has an ESG Relevance Score of '4' for governance
structure. In particular, these less effective corporate governance
dynamics resulted in a weaker and slower execution record than
domestic peers and recurrent challenges to appoint and then
stabilise the bank's senior management since 2015. Fitch does not
believe that the bank's de-leveraging in recent years has been
sufficient to stabilise its solvency ratios at levels more
commensurate with its risk profile, and this is leaving the bank
with limited available options.

Banco Montepio's non-performing to gross loans ratio (consistent
with IFRS 9 stage 3) was high at about 12.1% at end-March 2020,
slightly lower than at end-2019. Fitch estimates a problem asset
ratio of about 18% at the same date when including real estate
assets. The ratio is the highest among rated Portuguese banks and
is higher than many Italian and Spanish peers.

Prior to the current crisis, the stock of problem assets had
gradually declined thanks to asset sales, lower inflows of new
impaired loans and larger recoveries thanks to the improved
economic environment in Portugal. However, Fitch expects asset
quality to deteriorate in 2020-2021 following a severe economic
contraction in 2020 and a material increase in the unemployment
rate in Portugal. The bank's gross exposure to the most vulnerable
sectors such as restaurants, hotels, tourism, construction and
transportation was large at about 12% of loans at end-2019, a
higher level than rated domestic peers.

Banco Montepio's capital buffers are low compared with domestic and
international peers despite capital injections and the issuance of
subordinated instruments in recent years. The bank's end-March 2020
total capital ratio was below its 2020 Supervisory Review and
Evaluation Process requirements of 13.9% (including the 2.5%
capital conservation buffer), after erosion from IFRS9 phasing-in,
sovereign spread widening and foreign currency movements in 1Q20.
At end-March 2020, the bank's phased-in common equity Tier 1 and
total capital ratios were 11.7% and 13.2% (13.7% proforma of a Tier
2 issuance placed with MGAM recently), respectively, and Fitch
expects further pressure this year, which may be mitigated by
capital remediation initiatives. Banco Montepio's 13.2% phased-in
total capital ratio at end-March 2020 means that the bank is
already consuming 0.7% of the 2.5% capital conservation buffer
allowance. This is a very early stage of the economic downturn to
be consuming buffer allowance, and the worst in terms of negative
impact from the crisis on banks' financial profiles may be yet to
come.

Fitch considers the bank's capital base is highly vulnerable to
even moderate asset-quality shocks, due to high levels of
unreserved problem assets. Fitch estimates unreserved problem
assets (including net impaired loans, net foreclosed assets,
investment properties and holdings of corporate restructuring and
real estate funds) were about 1.4x the bank's fully loaded CET1
capital. This is the highest level among major Portuguese banks and
remains a key risk to Banco Montepio's credit profile. The bank's
large sovereign exposure at about 2.1x CET1 capital, mainly on
Portugal, Italy and Spain, although the latter two are smaller, is
also a potential source of solvency metrics volatility for the
portion accounted for at fair value, which represents around 50% of
the total exposure.

The bank's operating profitability is well below European averages
and highly sensitive to interest rate levels and economic cycles.
Banco Montepio reported a small profit of about EUR5 million in
1Q20 supported by one-off gains from the sale of securities, which
offset expected credit loss provisions related to the coronavirus
crisis. Excluding these one-off gains, the bank would have reported
an operating loss. Fitch expects that the bank will be loss making
in 2020, owing to margin pressure and a material increase in loan
impairment charges. A possible increase in funding costs, including
due to higher amounts of costly subordinated instruments, may also
pressure earnings. The recently announced restructuring of the
branch network is aimed at achieving better cost efficiency.

Banco Montepio's funding and liquidity profile is sensitive to
changes in creditor sentiment, despite having been fairly stable
throughout the last financial crisis. Customer deposits, the bank's
main funding source, and access to the wholesale markets are more
price-sensitive than peers.

Access to the wholesale funding markets will be pivotal to help the
bank meeting its Minimum Requirement for Own Funds and Eligible
Liabilities in coming years. The bank's liquidity position at
end-March 2020 was acceptable given its modest upcoming maturities
and relatively large holdings of sovereign debt. Unencumbered
ECB-eligible assets are sufficient to cover Banco Montepio's total
wholesale funding needs. The bank's deposit base is relatively
granular due to its primarily retail banking focus.

DEPOSIT RATINGS

Fitch has downgraded Banco Montepio's deposits from 'BB-'/RWN/'B'
to 'B'/'B'. The long-term deposits rating is one notch above the
bank's Long-Term IDR to reflect deposits' lower vulnerability to
default than senior debt, given their more senior status than other
debts in Portugal and its base case that the bank would face a
resolution action that protects depositors were it to fail. Fitch
has withdrawn the 'RR3' Recovery Rating on Banco Montepio's
long-term deposits as it is no longer relevant to the agency's
coverage.

SENIOR PREFERRED AND SENIOR NON-PREFERRED DEBT

Fitch has downgraded Banco Montepio's long-term senior preferred
and senior non-preferred debt programme ratings to 'CCC' from
'B-'/RWN, and removed the ratings from RWN. The senior preferred
debt and senior non-preferred debt ratings are notched down twice
from the bank's IDR and have 'RR6' Recovery Ratings. This is
because of full depositor preference in Portugal and the bank's
very thin senior and subordinated debt buffers relative to its net
problem assets, which means that losses would likely be very high
in a default scenario.

Fitch incorrectly placed Banco Montepio's short-term senior
preferred debt rating of 'B' on RWN on 3 April 2020 ('Fitch Takes
Action on Five Portuguese Banks on Heightened Challenges from
Coronavirus Outbreak'). As short-term bank issue ratings
incorporate only an assessment of the default risk on the
instrument, this rating action corrects the error by removing the
RWN.

SUBORDINATED DEBT

Banco Montepio's subordinated notes have been downgraded to 'CCC'
from 'B-'/RWN, which is two notches below the bank's VR, and the
ratings have been removed from RWN. The notching reflects the
notes' poor recovery prospects if the bank was reaching a point
where it is no longer considered viable. Fitch does not apply
additional notching for incremental non-performance risk relative
to the VR since there is no coupon flexibility included in the
notes' terms and conditions. The prospects of poor recoveries for
subordinated bondholders are also reflected in the 'RR6' Recovery
Rating assigned to the notes.

SUPPORT RATING AND SUPPORT RATING FLOOR

Banco Montepio's Support Rating of '5' and Support Rating Floor of
'No Floor' reflect Fitch's belief that senior creditors of the bank
cannot rely on receiving full extraordinary support from the
sovereign in the event that the bank becomes non-viable. The EU's
Bank Recovery and Resolution Directive and the Single Resolution
Mechanism for eurozone banks provide a framework for resolving
banks that is likely to require senior creditors to participate in
losses, if necessary, instead of - or ahead of - a bank receiving
sovereign support.

RATING SENSITIVITIES

IDRs AND VR

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

Banco Montepio's ratings are likely to be downgraded if the bank
fails to restore capitalisation metrics to a level that Fitch
considers commensurate with the bank's risk profile, for example if
the bank faces larger than expected operating losses, a material
increase in RWAs, or capital is otherwise eroded. Fitch would also
downgrade the ratings in the event of a material increase in the
impaired loans ratio or in forborne exposures to levels where it
would expect the bank to ultimately reach an impaired loans ratio
above 20%. A materially weaker funding and liquidity profile, for
example in case of large customer deposit outflows would also
pressure the ratings.

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

The ratings could be affirmed and the Outlook revised to Stable
depending on the bank's circumstances and financial metrics if the
impact of the pandemic on the Portuguese economy is short-lived and
a recovery follows relatively quickly. A replenishment of Banco
Montepio's total capital buffers to levels moderately above
requirements, including the capital conservation buffer, coupled
with a stabilisation or contained deterioration of asset quality
and operating profit metrics would support an affirmation of the
ratings.

In the event Banco Montepio is able to withstand rating pressure,
upside to the rating would be limited due to a still large stock of
problem assets and structurally weak core operating profitability.
An upgrade would be contingent on the bank improving substantially
operating profitability, thanks to its planned restructuring, and
asset quality metrics and materially reducing capital encumbrance
from problem assets. Evidence of a more effective and developed
corporate governance, in combination with positive developments in
the bank's financial profile, would be positive for ratings.

DEPOSITS

The deposits ratings are primarily sensitive to the bank's
Long-Term IDR and to its expectation of their vulnerability to
default in a resolution scenario.

SENIOR PREFERRED AND SENIOR NON-PREFERRED DEBT

The long-term senior preferred and non-preferred debt ratings are
primarily sensitive to changes to Banco Montepio's Long-Term IDR,
which is itself sensitive to the bank's VR. They are also sensitive
to an increase in the amount of senior non-preferred and
subordinated liabilities issued and maintained by Banco Montepio.
This is because in a resolution, losses could be spread over a
larger debt layer resulting in lower losses and higher recoveries
for senior bondholders, which may lead to higher long-term senior
preferred and non-preferred debt ratings.

SUBORDINATED DEBT

The subordinated notes' rating is primarily sensitive to changes in
Banco Montepio's VR, from which it is notched.

SUPPORT RATING AND SUPPORT RATING FLOOR

An upgrade of the SR and upward revision of the SRF would be
contingent on a positive change in the sovereign's propensity to
support it. This is highly unlikely, in Fitch's view.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond 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.

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

Banco Montepio has an ESG Relevance Score of '4' for governance
structure. Alleged disagreements between Banco Montepio's previous
management team and the bank's majority shareholder, MGAM, led to
the nomination and appointment of a new management team, within a
new governance framework, since March 2018. The stabilisation of
the bank's management and board of directors has taken longer than
expected and Fitch believes this has weighed on the bank's
strategic execution over the past two years. This reflects a weaker
corporate governance culture than those of its domestic peers,
although the bank has been making progress. Banco Montepio's
governance structure is relevant to the bank's ratings in
conjunction with other factors.

Caixa Economica Montepio Geral, Caixa economica bancaria, S.A.

  - LT IDR B-; Downgrade

  - ST IDR B; Affirmed

  - Viability b-; Downgrade

  - Support 5; Affirmed

  - Support Floor NF; Affirmed

  - Subordinated; LT CCC; Downgrade

  - Long-term deposits; LT B; Downgrade

  - Senior preferred; LT CCC; Downgrade

  - Senior non-preferred; LT CCC; Downgrade

  - Short-term deposits; ST B; Affirmed

  - Senior preferred; ST B; Affirmed



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

BBVA CONSUMER 2018-1: DBRS Confirms BB Rating on Class D Notes
--------------------------------------------------------------
DBRS Ratings GmbH confirmed the following notes issued by BBVA
Consumer Auto 2018-1 FT (the Issuer):

-- Class A Notes at AA (low) (sf)
-- Class B Notes at A (sf)
-- Class C Notes at BBB (sf)
-- Class D Notes at BB (sf)

The rating of the Class A Notes addresses the timely payment of
interest and ultimate payment of principal on or before the legal
final maturity date in July 2031. The ratings of the Class B Notes,
the Class C Notes, and the Class D Notes address the ultimate
payment of interest principal on or before the legal final maturity
date.

The confirmations follow an annual review of the transaction and
are based on the following analytical considerations:

-- Portfolio performance, in terms of delinquencies and defaults,
    as of the April 2020 payment date.

-- Probability of default (PD), loss given default (LGD), and
    expected loss assumptions on the remaining receivables.

-- Current available credit enhancement to the notes to cover
    the expected losses at their respective rating levels.

The Issuer is a securitization of Spanish unsecured vehicle loans
originated and serviced by Banco Bilbao Vizcaya Argentaria, S.A.
(BBVA). The portfolio comprises loans to finance the purchase of
new and used vehicles. The transaction closed in June 2018 and had
a revolving period that ended in January 2020.

PORTFOLIO PERFORMANCE

As of the April 2020 payment date, loans that were 30 to 60 days
delinquent and 60 to 90 days delinquent represented 1.21% and 0.81%
of the portfolio balance, respectively. The cumulative gross
default ratio was 1.1% of the aggregate original portfolios, with
cumulative principal recoveries of 23.3% to date.

PORTFOLIO ASSUMPTIONS AND KEY DRIVERS

DBRS Morningstar conducted a loan-by-loan analysis of the remaining
pool of receivables and has updated its base case PD and LGD
assumptions to 7.5% and 61.1%, respectively. The analysis is based
on the current portfolio composition following the end of the
revolving period in January 2020.

CREDIT ENHANCEMENT

Subordination of the junior notes provides credit enhancement. As
of the April 2020 payment date, Class A, Class B, Class C, and
Class D Notes credit enhancement increased to 11.1%, 7.9%, 3.5%,
and 2.1% from 9.0%, 6.1%, 2.0%, and 0.7%, respectively, one year
ago.

The transaction benefits from a cash reserve, currently at the
target level of EUR 3.5 million, equating to 0.50% of the
outstanding balance of the Class A, Class B, and Class C Notes. The
cash reserve covers senior fees and provides liquidity support to
the Class A Notes, the Class B Notes, and the Class C Notes.

BBVA acts as the account bank for the transaction. Based on the
account bank reference rating of BBVA at A (high), which is one
notch below the DBRS Morningstar Long Term Critical Obligations
Rating of AA (low), the downgrade provisions outlined in the
transaction documents, and other mitigating factors inherent in the
transaction structure, DBRS Morningstar considers the risk arising
from the exposure to the account bank to be consistent with the
rating assigned to the Class A Notes, as described in DBRS
Morningstar's "Legal Criteria for European Structured Finance
Transactions" methodology.

The transaction structure was analyzed in Intex DealMaker.

The Coronavirus Disease (COVID-19) and the resulting isolation
measures have caused an economic contraction, leading to sharp
increases in unemployment rates and income reductions for many
borrowers. DBRS Morningstar anticipates that delinquencies may
arise in the coming months for many ABS transactions, some
meaningfully. The ratings are based on additional analysis and
adjustments to expected performance as a result of the global
efforts to contain the spread of the coronavirus.

Notes: All figures are in Euros unless otherwise noted.


BBVA CONSUMER 2020-1: DBRS Finalizes BB(high) Rating on D Notes
---------------------------------------------------------------
DBRS Ratings GmbH finalized its provisional ratings on the
following series of notes (collectively, the Rated Notes) issued by
BBVA Consumer Auto 2020-1, FT (the Issuer):

-- Series A Notes at AA (sf)
-- Series B Notes at A (high) (sf)
-- Series C Notes at BBB (high) (sf)
-- Series D Notes at BB (high) (sf)

DBRS Morningstar does not rate the Series E, the Series F, and the
Series Z notes issued in this transaction.

The rating of the Series A Notes addresses the timely payment of
interest and the ultimate repayment of principal by the legal final
maturity date in January 2036. The ratings on the Series B Notes,
Series C Notes, and Series D Notes address the ultimate payment of
interest and the ultimate repayment of principal by the legal final
maturity date.

DBRS Morningstar based its ratings on a review of the following
analytical considerations:

-- The transaction's capital structure, including form and
    sufficiency of available credit enhancement.

-- Credit enhancement levels are sufficient to support DBRS
    Morningstar's projected expected net losses under various
    stress scenarios.

-- The ability of the transaction to withstand stressed cash flow
    assumptions and repay investors according to the terms of the
    notes.

-- The seller's, originator's, and servicer's financial strength
    and their capabilities with respect to originations,
    underwriting, and servicing.

-- The other parties' financial strength with regard to their
    respective roles.

-- DBRS Morningstar's operational risk review of Banco Bilbao
    Vizcaya Argentaria S.A. (BBVA), which it deemed to be an
    acceptable servicer.

-- The credit quality, diversification of the collateral, and
    historical and projected performance of the seller's
    portfolio.

-- DBRS Morningstar's current sovereign rating of the Kingdom
    of Spain at "A" with a Stable trend.

-- The consistency of the transaction's legal structure with
    DBRS Morningstar's "Legal Criteria for European Structured
    Finance Transactions" methodology, and the presence of
    legal opinions that address the true sale of the assets to
    the Issuer.

The transaction represents the issuance of Series A Notes, Series B
Notes, Series C Notes, Series D Notes, Series E Notes, and Series F
Notes backed by a portfolio of approximately EUR 1.1 billion of
fixed-rate receivables related to auto loans granted by BBVA (the
originator) to private individuals residing in Spain for the
acquisition of new or used vehicles. The originator will also
service the portfolio. The Series Z Notes funded the cash reserve.

The transaction includes a 19-month revolving period scheduled to
end in January 2022. During the revolving period, the originator
may offer additional receivables that the Issuer will purchase
provided that the eligibility criteria and concentration limits set
out in the transaction documents are satisfied. The revolving
period may end earlier than scheduled if certain events occur, such
as the breach of performance triggers, insolvency of the
originator, or replacement of the servicer.

The transaction allocates payments on a combined interest and
principal priority of payments and benefits from an amortizing EUR
5.5 million cash reserve funded through the subscription proceeds
of the Series Z Notes. The cash reserve can be used to cover senior
costs and interest on the Series A Notes, Series B Notes, and
Series C Notes but cannot be used to offset losses.

The repayment of the notes will start after the end of the
revolving period on the first principal payment date in April 2022
on a pro rata basis unless certain events such as breach of
performance triggers, insolvency of the originator, or termination
of the servicer occur. Under these circumstances, the principal
repayment of the notes will become fully sequential, and the switch
is not reversible.

The Rated Notes pay interest indexed to three-month Euribor whereas
the total portfolio pays a fixed-interest rate.

The interest rate risk arising from the mismatch between the
Issuer's liabilities and the portfolio is hedged through a swap
agreement with an eligible counterparty.

BBVA acts as the account bank for the transaction. Based on the
DBRS Morningstar rating of BBVA at A (high) (COR at AA (low)), the
downgrade provisions outlined in the transaction documents, and
structural mitigants inherent in the transaction structure, DBRS
Morningstar considers the risk arising from the exposure to BBVA to
be consistent with the rating assigned to the Series A Notes, as
described in DBRS Morningstar's "Legal Criteria for European
Structured Finance Transactions" methodology.

BBVA acts as the swap counterparty for the transaction. DBRS
Morningstar's Long-Term Issuer and Long-Term critical obligation
ratings (COR) ratings of BBVA at A (high) and AA (low),
respectively, are consistent with the First Rating Threshold as
described in DBRS Morningstar's "Derivative Criteria for European
Structured Finance Transactions" methodology.

DBRS Morningstar analyzed the transaction structure in Intex
DealMaker, considering the default rates at which the Rated Notes
did not return all specified cash flows.

The Coronavirus Disease (COVID-19) and the resulting isolation
measures have caused an economic contraction, leading to sharp
increases in unemployment rates and income reductions for many
borrowers. DBRS Morningstar anticipates that delinquencies may
arise in the coming months for many ABS transactions, some
meaningfully. The ratings are based on additional analysis and
adjustments to expected performance as a result of the global
efforts to contain the spread of the coronavirus.

Notes: All figures are in Euros unless otherwise noted.


DEOLEO SA: Moody's Puts 'Ca' CFR on Review for Upgrade
------------------------------------------------------
Moody's Investors Service has placed on review for upgrade the Ca
corporate family rating and the Ca-PD probability of default rating
of Deoleo S.A., the leading olive oil producer globally. The
outlook was changed to ratings under review from negative.

Concurrently, Moody's has appended Deoleo's PDR with an "/LD"
(limited default) designation.

"We have placed Deoleo's ratings on review for upgrade following
the recent completion of its debt restructuring. While we view this
restructuring as a distressed exchange, which is a form of default,
it allows the company to establish a more sustainable capital
structure and liquidity," says Igor Kartavov, a Moody's lead
analyst for Deoleo. "The ratings review process will focus on the
company's strategy, future financial metrics and liquidity position
under its new capital structure," adds Mr. Kartavov.

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

Moody's has placed Deoleo's ratings on review for upgrade following
the company's announcement on June 24, 2020 [1] that it had
completed the restructuring of its EUR575 million syndicated debt
comprising a EUR460 million first-lien term loan due June 2021,
EUR60 million outstanding under the first-lien revolving credit
facility due June 2020 and a EUR55 million second-lien term loan
due June 2022.

As set forth in the refinancing agreement between Deoleo and its
financial creditors [2], the debt restructuring comprises (1) the
repayment of EUR50 million of syndicated debt with proceeds from a
capital increase; (2) the replacement of EUR283 million of
syndicated debt with a zero-interest loan mandatorily convertible
into a 49% equity stake in Deoleo Holding, S.L.U., a new subholding
company that will indirectly own the group's business; and (3) the
restructuring of the remaining EUR242 million of syndicated debt
into a five-year EUR160 million senior tranche and a six-year EUR82
million subordinated tranche, both with a bullet repayment.

The review for upgrade initiated by Moody's reflects the rating
agency's view that Deoleo's debt restructuring paves the way for a
more sustainable capital structure, including a significantly lower
leverage, and adequate liquidity, all of which could support a
higher rating level.

The review process will focus on (1) Deoleo's final capital
structure, including the conversion of the mandatorily convertible
loan to equity; (2) the sustainability of improvement in the
company's financial metrics achieved in 2019 and 2020 to date in
the context of the continuing global coronavirus outbreak, weaker
macroeconomic environment and historically high volatility of its
financial performance; (3) Deoleo's future credit metrics,
including leverage and interest coverage; (4) the company's
liquidity profile and free cash flow generation capacity; and (5)
Deoleo's financial policies and corporate governance practices
following the restructuring.

The review process could result in an upgrade of Deoleo's ratings
by more than one notch.

Moody's has also appended Deoleo's PDR with an "/LD" (limited
default) designation, indicating that the company has defaulted on
a limited set of its obligations, comprising its syndicated debt
facilities. This reflects Moody's view that Deoleo's debt
restructuring constitutes a distressed exchange because it involves
a conversion of part of the company's interest-bearing debt to a
zero-interest loan, and ultimately to equity, as well as an
extension of debt maturities, with the effect of allowing the
company to avoid a likely eventual default. A distressed exchange
is a form of default under the rating agency's definition. Moody's
will remove the "/LD" designation after three business days.

Deoleo's ratings are currently on review for upgrade. Prior to the
ratings review process, Moody's said that an upgrade of Deoleo's
ratings would be conditional upon the company completing a
restructuring of its debt, establishing a sustainable capital
structure and restoring its liquidity position.

Prior to the ratings review process, Moody's also said that
Deoleo's ratings could be downgraded if the rating agency's
estimates of expected losses for the company's financial creditors
become higher than those implied by the Ca CFR or if the company
enters insolvency proceedings.

LIST OF AFFECTED RATINGS

Issuer: Deoleo S.A.

On Review for Upgrade:

  Probability of Default Rating, Placed on Review for Upgrade,
  currently Ca-PD/LD ("/LD" appended)

  Corporate Family Rating, Placed on Review for Upgrade,
  currently Ca

Outlook Action:

  Outlook, Changed To Ratings Under Review From Negative

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Consumer
Packaged Goods Methodology published in February 2020.

COMPANY PROFILE

Headquartered in Madrid, Deoleo is the largest branded olive oil
producer globally, with its proprietary brands including Carapelli,
Bertolli, Carbonell and Hojiblanca. The company engages in the
refining, blending, bottling, distribution and sale of olive oil
(around 85% of revenue) as well as the production of seed oil,
vinegars and sauces. In 2019, the company reported revenue of
EUR562 million (2018: EUR606 million) and EBITDA of EUR28 million
(2018: EUR15 million). As of year-end 2019, Deoleo was controlled
by funds advised by private equity firm CVC Capital Partners, which
held a 56.4% stake in the company.




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

HOIST FINANCE: Moody's Alters Outlook on Ba3 Rating to Negative
---------------------------------------------------------------
Moody's Investors Service has affirmed all ratings of Hoist Finance
AB (publ), including the Baseline Credit Assessment at ba3,
long-term senior unsecured debt and issuer ratings at Baa3 and
subordinate rating at Ba3. The rating agency has also changed the
outlook of Hoist's long-term senior unsecured debt and issuer
ratings to negative from stable.

The affirmation of Hoist's ratings reflects Moody's view that the
debt purchaser's BCA is appropriately positioned and broadly
resilient to the deteriorating economic conditions from the
coronavirus crisis. Whereas the company will need to take important
provisions due to shortfalls in estimated cash collections in 2020,
lowering profitability significantly this year, Moody's believes
that profitability will gradually recover over the outlook
horizon.

The negative outlook reflects uncertainty regarding Hoist's future
liability structure and balance sheet, including future loss
absorption amounts that would protect the senior unsecured debt
ratings as indicated by Moody's Advanced Loss Given Failure (LGF)
analysis.

RATINGS RATIONALE

RATINGS AFFIRMATION

The ratings affirmation reflects Hoist's sound capitalisation,
coupled with a retail deposit-based funding profile and large
liquidity reserve. These strengths are balanced against the impact
of deteriorating operating conditions on collections, along with
the valuation and pricing risks associated with the acquisition of
nonperforming debt portfolios and regulatory changes resulting in
increased risk weights which challenge the bank's regulated
monoline business model.

Moody's considers that debt purchasing companies will be
particularly affected by the coronavirus crisis as measures taken
by countries to limit the spread of the virus, including courts
closures and suspension of bailiffs, social distancing measures,
combined with households' diminished ability to repay their debts,
which will meaningfully reduce debt purchasers' near-term cash
collections.

Nevertheless, the affirmation of Hoist's BCA is based on Moody's
expectations that the debt purchaser's credit fundamentals will be
broadly resilient to the coronavirus outbreak. Whereas Moody's
expects a shortfall of expected cash collections of up to 10% in
2020, which would lead to material provisions and significantly
lower profitability in 2020, Moody's believes that profitability
will gradually recover over the outlook horizon.

Whereas there is uncertainty regarding Hoist's future liability
structure and balance sheet, the affirmation of the senior
unsecured debt ratings reflects Moody's Advanced Loss Given Failure
analysis of the group's current balance sheet structure. The
analysis indicates that Hoist's senior creditors are likely to face
extremely low loss-given-failure, due to the loss absorption
provided by subordinated and low-trigger Additional Tier 1 debt.
This results in the maximum three notches of uplift for senior
unsecured debt ratings, leading to long-term senior unsecured
ratings of Baa3.

Whereas the current balance sheet would suggest an additional notch
of uplift for the junior senior unsecured (often referred to as
senior non-preferred) programme rating, the affirmation of the
(P)Ba3 junior senior unsecured programme rating at the level of the
BCA reflects the uncertainty around the company's future liability
structure, and the high likelihood that the proportion of
liabilities subordinated to the junior senior debt class will fall
as the balance sheet grows.

Moody's does not incorporate government support in Hoist's
ratings.

OUTLOOK

The negative outlook reflects uncertainty regarding Hoist's future
liability structure and balance sheet, including a risk that future
loss absorption amounts protecting the senior unsecured debt
ratings could be lower, warranting a lower notching as indicated by
Moody's Advanced Loss Given Failure (LGF) analysis.

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

Hoist's BCA could be upgraded if the company (1) improves its
profitability significantly on a sustained basis, without
increasing earnings volatility from its current levels; (2)
increases its capital targets significantly and demonstrates the
ability to maintain higher capital levels; or (3) diversifies its
business model.

An upgrade of Hoist's issuer and senior unsecured debt ratings
would be prompted by an upgrade of the company's BCA. At the same
time, the junior senior unsecured programme and subordinated
ratings could be upgraded either as a result of an upgrade of the
BCA, or if the company were to increase the size of its
subordinated debt significantly. The junior senior unsecured
programme rating could also be upgraded if there is sufficient
certainty around junior senior maintaining its current
subordination levels also over the medium term.

Conversely, Hoist's BCA could be downgraded if (1) its
profitability or capital decreases significantly, among other
things, as a result of the recent regulatory changes; (2) the
company materially increases its reliance on market funding; or (3)
its assessment of Hoist's asset risk deteriorates.

In terms of the issuer, senior unsecured, junior senior unsecured
programme and subordinated ratings, a downward movement is likely
in the event of a downgrade of Hoist's BCA or a lower notching from
its Advanced LGF analysis.

LIST OF AFFECTED RATINGS

Issuer: Hoist Finance AB (publ)

Affirmations:

Long-term Counterparty Risk Ratings, affirmed Baa3

Short-term Counterparty Risk Ratings, affirmed P-3

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

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

Long-term Issuer Rating, affirmed Baa3, outlook changed to
Negative from Stable

Short-term Issuer Rating, affirmed P-3

Baseline Credit Assessment, affirmed ba3

Adjusted Baseline Credit Assessment, affirmed ba3

Senior Unsecured Regular Bond/Debenture, affirmed Baa3,
outlook changed to Negative from Stable

Senior Unsecured Medium-Term Note Program, affirmed (P)Baa3

Junior Senior Unsecured Medium-Term Note Program, affirmed
(P)Ba3

Subordinate Regular Bond/Debenture, affirmed Ba3

Subordinate Medium-Term Note Program, affirmed (P)Ba3

Other Short Term, affirmed (P)P-3

Outlook Action:

Outlook changed to Negative from Stable

PRINCIPAL METHODOLOGY

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




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

AI MISTRAL HOLDCO: Moody's Cuts CFR to Caa2, Outlook Negative
-------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating of
AI Mistral Holdco Ltd, a ship management and marine services
provider, to Caa2 from Caa1. The rating agency has concurrently
downgraded V.Group's probability of default rating to Caa2-PD from
Caa1-PD. Moody's further downgraded to Caa1 from B3 the ratings of
the first-lien senior secured facilities, including the $57.5
million revolving credit facility due 2022, the $515 million term
loan due 2024, and the $30 million acquisition term loan facility
due 2022, all at AI Mistral (Luxembourg) Subco S.ar.l., a directly
owned subsidiary of AI Mistral Holdco Ltd. The rating agency
further revised the rating outlook for both entities to negative
from stable.

RATINGS RATIONALE

The downgrade reflects V.Group's continuing losses of vessels under
full technical management in the first quarter of 2020 when its FTM
fleet declined to 545 ships from 557 vessels at year-end 2019,
although the company won additional contracts in April 2020 brining
its FTM fleet to 559. As a result, V.Group's EBITDA
(pre-exceptional items) declined to $57.4 million for the twelve
months ending 31 March 2020 from $61.2 million in 2019, as reported
by the company. While V.Group has completed a number of cost-saving
initiatives, such as a crewing transformation, an update of its
integrated digital ship management platform and a shared service
centre, the global downturn in the wake of coronavirus is likely to
pressure its results further for the balance of 2020 and into
2021.

In 2019, V.Group's adjusted leverage was 9.9x, as calculated by
Moody's, which was already very high. Given the company's
continuing challenges in growing FTM fleet, as well as operational
concerns exacerbated by coronavirus, the agency anticipates that
its leverage in 2020 is likely to exceed 10.0x materially before
potentially reducing somewhat in 2021 while still remaining in the
double digits. This level of leverage, combined with gradually
weakening liquidity, is likely to lead, in Moody's view, to an
unsustainable capital structure.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

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. Its action reflects the
impact on V.Group of deterioration in credit quality it has
triggered, given its exposure to global trade which has left it
vulnerable to shifts in market sentiment in these unprecedented
operating conditions.

In addition, Moody's notes that V.Group experienced a measure of
senior management turnover in the past year with the addition of a
new CEO, Graham Westgarth, in March 2019, and both the addition and
departure of the CFO, Alison Henriksen, as well as the appointment
of a new CFO, Petter Traaholt, in March 2020. The agency views the
quick pace of executive changes as a potential governance concern.

RATING OUTLOOK

The negative rating outlook reflects Moody's expectation that the
company's performance will continue to be significantly negatively
affected by the global economic slowdown including in particular
its negative effect on the shipping industry. In addition, the
agency believes that operational challenges associated with
coronavirus will continue to impede V.Group's ability to grow the
number of vessels under full technical management.

LIQUIDITY

V.Group's liquidity is weakening. It has historically relied on
positive cash generation; however, the company's operations have
not been cashing generative in a number of recent quarters. Still,
the liquidity is supported by low intra-quarterly volatility of
earnings, low capital spending requirements, cash of $17.8 million
as of 31 March 2020 and availability of $32.5 million on the $57.5
million revolving credit facility (including a $7.5 million
non-cash guarantee facility; the facility has been subsequently
drawn down). The revolver has a "springing" covenant, tested only
when the revolving credit facility is drawn by more than 35% and
set at 7.5x for first lien net leverage (approximately 7.0x as of
31 March 2020). However, Moody's views the ability of the group to
continue to meet this covenant requirement in the future as
increasingly uncertain.

STRUCTURAL CONSIDERATIONS

V.Group's capital structure includes a $499.5 million (outstanding
amount) first lien facility, a $172.5 million second lien facility,
a $57.5 million RCF and a $30 million acquisition facility. The
first lien facility and the revolving facilities are pari passu.

The Caa1 ratings of the first-lien senior secured facilities, one
notch above the Caa2 CFR, reflect a sizeable loss-absorption buffer
provided by the second-lien debt (unrated). The Caa2 CFR is in line
with the Caa2-PD probability of default rating, reflecting its 50%
corporate family recovery assumption, common for first and second
lien structures, as well as for "cov-lite" bank facilities.

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

Although unlikely in the near term, positive rating momentum could
result from resumed growth in vessels under full technical
management leading to leverage, as measured by Moody's-adjusted
debt/EBITDA, declining sustainably below 8.0x with a meaningfully
reduced level of reported exceptional expenses.

The rating outlook could be revised to stable if V.Group's
liquidity is strengthened.

Negative rating pressure could occur from continuing decline in
ships in FTM, free cash flow remaining consistently negative or a
material further weakening in liquidity.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

AI Mistral Holdco Ltd, headquartered in London, UK, is a provider
of ship management services and supplementary marine services,
including technical, staff management and commercial services
across the commercial shipping, cruise, energy and defence sectors,
with reported revenue of around $547 million in 2019. The company
has been majority-owned by funds managed and advised by Advent
International since March 9, 2017.

ASTON MARTIN: Moody's Cuts Senior Secured Notes to Caa2
-------------------------------------------------------
Moody's Investors Service has downgraded the existing instrument
ratings on Aston Martin Capital Holdings Limited's senior secured
notes to Caa2 from Caa1. Moody's also affirmed Aston Martin Lagonda
Global Holdings plc's (Aston Martin Lagonda, company or AML)
corporate family rating at Caa1 and probability of default rating
at Caa1-PD. The outlook remains negative.

RATINGS RATIONALE

The downgrade of the existing secured notes reflects on the one
hand the currently weak positioning of the CFR and on the other
hand the rising amount of other debt ranking ahead of the rated
notes, including the drawn super senior revolving credit facility
and new GBP20 million government-backed loan. The company also
retains its recent inventory repurchase funding and may enter into
further up to GBP50 million of trade financing alongside its
existing wholesale financing facility. Accordingly, Moody's
believes the position of the rated notes in the capital structure
has weakened.

Moody's positively notes the additional equity raise so far this
year, which supports a currently sufficient liquidity profile. At
the same time the decision to partly draw the delayed draw notes as
well as the new government-backed loan add to the debt burden on
the business.

The CFR and PDR remain weakly positioned considering the challenges
and uncertainties for the business. Those include (i) restoring its
operations after temporary shutdowns of production sites and
dealerships, (ii) a successful execution on production ramp up and
sales targets for its first SUV DBX, (iii) restoring profitability
and reducing the currently high cash absorption through a more
sustained cash flow profile. In addition, the company's borrowings
continue to rise to around GBP1.2 billion as of Q1 2020 and
pro-forma for the new notes and government loan issuance, which is
up from GBP704 million at the end of 2018. As a result,
Moody's-adjusted debt/EBITDA will remain very weak for 2020 and
likely 2021 while free cash flow remains negative. As a UK-based
manufacturer the company also remains exposed to uncertainty from a
potential "no-deal" Brexit. Positively, Moody's notes the company's
dealerships are largely open again, DBX production has scaled up at
its St Athan facility and dealership inventories have declined
significantly. The large equity raises this year including the
GBP152 million secured in June 2020 should also provide the company
with the leeway to execute on its strategic reset.

Given the additional funding received this year, Moody's considers
the liquidity profile currently as adequate. However, the DBX ramp
up and reduced business activity especially in Q2 2020 lead to
significant ongoing cash outflows. While the cash flow profile
should improve in the second half of 2020 also depending on macro
development, it may take a prolonged period to achieve a
sustainable cash flow profile. The company also has a range of
working capital financing arrangements including its inventory
repurchase programme (GBP39 million outstanding as of March 2020)
and a wholesale financing facility (GBP100m outstanding as of
December 2019) as well as restricted cash of around GBP36 million
linked to an overdraft of similar size. The revolving credit
facility of GBP80 million is essentially fully drawn and due in
January 2022 while the secured notes are due in April 2022.

Additionally, AML's rating remains constrained by (1) limited
financial strength compared to some direct peers that belong to
larger European car manufacturers; (2) efforts to service a broad
range of GT, luxury and hypercar segments and price points despite
its comparably small scale; and (3) exposure to foreign exchange
risk given its fixed cost base in the UK compared to a sizeable
share of revenue generated from exports to Europe, the US and Asia
though mitigated by hedging strategies and sourcing outside of the
UK. However, the ratings also reflect the (1) strong brand name and
pricing position in the luxury cars segment; (2) good geographic
diversification; (3) degree of flexibility in its cost and
investment structure; (4) continued model renewals and launches
expected in the next few years given its flexible production
through a common architecture and (5) technical partnerships, which
give AML access to high-performance powertrain technologies and
competitive e/e (electric/electronic) architecture.

Environmental considerations are relevant for auto manufacturer as
tightening of emissions standards and regulations across most major
markets restrict the ability to reduce certain investments.
However, Moody's also notes that the company as a smaller,
luxury-focused producer is not exposed to the same severity to
these risks as larger mass manufacturers, for example regarding
regulation. Social considerations are also important, because
changing consumer trends can affect demand and Moody's also regards
the coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.
The Auto sector has been one of the sectors most significantly
affected by the shock given its sensitivity to consumer demand and
sentiment. AML is vulnerable to shifts in market sentiment in these
unprecedented operating conditions and remains vulnerable to the
outbreak continuing to spread. Governance factors considered also
include a tolerance for a high debt burden and debt-funded growth,
recent change of both the board and management team, as well as the
challenge to restore credibility given the considerable
deterioration of the company's performance since mid-2019.

RATING OUTLOOK

The negative outlook continues to reflect the challenging overall
market, particularly at the lower end of the luxury market. It also
reflects the uncertainty regarding the company's performance and
financial metrics in 2020 and 2021, the currently elevated risk
profile from the critical nature of a successful DBX production
ramp up and sales performance, and persistent negative free cash
flow (after capex, interest). A stabilization of the outlook would
likely require progress towards a more sustainable free cash flow
and deleveraging profile.

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

A successful execution of the DBX launch, profitability
improvements and free cash flow improvements would create positive
pressure on the rating and outlook. This would also require an
improved liquidity profile, Moody's-adjusted debt/EBITDA improving
towards 7.0x on a sustained basis and Moody's-adjusted EBITA margin
in the mid-single digits. Conversely, further negative pressure on
the rating could come from a lack of sufficient volume and
profitability improvements, for example from weaker than expected
DBX sales, and a resulting ongoing high negative free cash flow and
high leverage levels also in light of the gradual approaching notes
maturities in 2022. A lack of improvement in Aston Martin's
liquidity profile would also pressure the ratings and so could
further increases in debt.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Automobile
Manufacturer Industry published in June 2017.

Based in Gaydon, UK, Aston Martin Lagonda is a car manufacturer
focused on the high luxury car segment. Aston Martin generated
revenue of GBP1.0 billion in 2019 from the sale of 5,905 cars. AML
is a UK-listed business and its major shareholders include Yew Tree
Overseas Limited, a consortium led by the Executive Chairman of the
company Lawrence Stroll as well as the Adeem/Primewagon Shareholder
Group, including a subsidiary of EFAD Group and companies
controlled by Mr. Najeeb Al Humaidhi and Mr. Razam Al-Roumi, and
the Investindustrial Shareholder Group, an Italian private equity
firm. Daimler AG has also a single digit stake in the business.


B&M EUROPEAN: S&P Gives Prelim. BB- Rating on GBP350MM Sec. Notes
-----------------------------------------------------------------
S&P Global Ratings placed its 'B+' long-term issuer credit rating
on diversified retailer B&M European Value Retail S.A. (B&M) on
CreditWatch with positive implications. S&P assigned its
preliminary 'BB-' rating to the proposed GBP350 million senior
secured notes.

If timely executed, the proposed refinancing will resolve the
short-term refinancing risk and shore up liquidity, while having a
largely neutral effect on the group's leverage.

B&M expects to raise up to GBP455 million bank facilities and up to
GBP350 million senior secured notes, all ranking at the same
seniority. It intends to fully repay the currently outstanding
GBP150 million RCF and GBP300 million TLA due July 2021 and the
GBP250 million notes due February 2022. In addition, as part of the
refinancing transaction, the group expects to prepay its GBP82
million drawings under the acquisition facility. As a result, after
the transaction, the group's next bullet debt repayment will be in
April 2025, excluding the modest amortization of the loan
facilities borrowed directly by its subsidiaries, Heron Foods
(U.K.) and Babou (France), of up to GBP10 million equivalent
annually. This would effectively remove B&M's exposure to
short-term refinancing risk and extend the weighted-average
maturity of the capital structure to over four years. At the same
time, as the group is not planning any material acquisitions or
special dividend payments over the next 12 months, any debt raised
on top of the currently outstanding borrowings will be netted
against the higher amount of proceeds. The transaction would
therefore have a largely neutral effect on S&P's adjusted credit
metrics. S&P expects B&M to post S&P Global Ratings-adjusted debt
to EBITDA of 3.5x–3.7x, free operating cash flow (FOCF) after all
lease-related payments of GBP100 million-GBP150 million, and an
EBITDAR-to-cash-interest plus rent ratio of close to 2.2x in
FY2021.

B&M has performed robustly since COVID-19-related social distancing
measures were introduced in the U.K. in March 2020, benefiting from
customer stockpiling and favorable spring weather.  In the first
eight weeks of trading in FY2021, which extended through the
COVID-19-related lockdown period, B&M benefited from its status as
an essential retailer and closed only 49 of its 656 U.K. stores,
with all stores having reopened in May. The group reported robust
performance in its home market, with like-for-like growth of 22.7%
overall--and 10.3% excluding gardening and DIY categories--after
eight weeks' trading. Despite the uncertainties caused by the
pandemic and restrictions to social activities, the group benefited
from favorable spring weather, the large-format and out-of-town
locations of its B&M fascia, and popular convenience format of its
Heron Foods stores. Moreover, the product mix is centered across
grocery, household, personal care, DIY, gardening, and small-ticket
hardware categories offered at low prices. This led to a drastic
increase in basket size--up to 72% at the peak of
demand--offsetting the temporary decline in footfall. While the
group's Babou fascia stores in France had to shut for eight weeks
during lockdown, the first few weeks' performance since reopening
is encouraging. S&P thinks the group's versatile product mix, value
price bracket, and comfortable product availability--due to the
strategy of holding over 12 weeks' worth of general merchandise
stock in the U.K.--should continue to support robust performance.
S&P forecasts 5%-7% revenue growth in FY2021 and about 2%-5% in
FY2022 as like-for-like sales decelerate and new store openings are
delayed until the end of FY2021.

Positive cash generation and expected increase in gross debt amount
will boost B&M's short-term liquidity reserves.   S&P said,
"Assuming the successful issue of the notes and completion of the
refinancing transaction, we estimate B&M's cash position to be
about GBP166 million. Over the next 12 months, we forecast FOCF
will remain positive, on the back of resilient earnings and the
planned slowdown in rolling out new stores, which will reduce the
capital expenditure (capex) requirement. RCFWe anticipate, however,
that while providing additional liquidity in the short term,
eventually part of this cash will be distributed to shareholders,
as B&M will likely continue paying its ordinary dividends in both
FY2021 and FY2022." The strength of its credit metrics and
liquidity position over the next two-to-three years will depend on
the company's financial policy after the pandemic.

S&P said, "Once the situation has normalized, we expect B&M to
return to 5%-7% growth, supporting our opinion of the group's
resilience.   We expect consumers will reduce their discretionary
spending given the volatile macroeconomic environment and the
mounting uncertainty around the severity and duration of the
pandemic. Moreover, competition will likely gain momentum as other
stores reopen after the lockdown and offer more diverse products
and shopping experience. We therefore expect earnings growth to
slow down in the third quarter of calendar year 2020. However, with
its varied range of value-priced products, B&M generally fairs
better than its mid-market peers in times of high uncertainty and
weakened purchasing power, which we expect will prevail in the U.K.
and France for over the next two-to-three years."

Uncertainties regarding the COVID-19 pandemic are clouding earnings
visibility.  S&P said, "We acknowledge 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. 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. We see a risk that governments could
impose further restrictions or that current restrictions may
continue for longer than we anticipate." This clouds our
projections of B&M's future earnings and cash. Downside risk to our
projections stems, for example, from customers not willing to queue
in order to gain access to the store in the cold weather, thus
restricting peak season sales, particularly as B&M solely relies on
stores to generate its sales in the absence of any e-commerce
channel."

Environmental, social, and governance (ESG) credit factors for this
credit rating change:

-- Health and safety.

S&P Said, "We aim to resolve the CreditWatch when the proposed
refinancing is complete, and we have reviewed the final terms of
the transaction and the final debt documentation. We will also
withdraw our ratings on the existing debt once the refinancing
transaction is complete.

"We will likely raise our long-term issuer credit rating on B&M to
'BB-' if it successfully completes the refinancing within the next
90 days, repays existing debt, and thereby extends its
weighted-average debt maturities on terms that are generally in
line with our base case.

"Although less likely, failure or delays in completing the proposed
refinancing would likely prompt us to review our rating on B&M. We
could take negative action and withdraw our preliminary ratings on
the proposed debt.

"We could also affirm the rating and take it off CreditWatch
positive if the final transaction terms differ materially from our
base case, or if our expectation of reported FOCF or our EBITDAR
coverage ratio are weaker than we anticipate in our base case."


CANADA SQUARE 2020-2: S&P Assigns Prelim. B Rating on E Notes
-------------------------------------------------------------
S&P Global Ratings has assigned preliminary ratings to Canada
Square Funding 2020-2 PLC's (CSF 2020-2) class A notes and class
B-Dfrd to E-Dfrd interest deferrable notes.

CSF 2020-2 is a static RMBS transaction that securitizes a
portfolio of GBP154.1 million buy-to-let (BTL) mortgage loans
secured on properties located in the U.K. The loans in the pool
were originated by Fleet Mortgages Ltd. (36.8%), Landbay (49.0%),
and Zephyr Homeloans (14.2%). All except one loan was originated in
2020.

At closing, the issuer will use the issuance proceeds to purchase
the full beneficial interest in the mortgage loans from the seller.
The issuer will grant security over all of its assets in favor of
the security trustee.

S&P's preliminary ratings are based on the pool of GBP154.1 million
(as of May 31, 2020) although we understand that the final pool
will be upsized to approximately GBP170 million (with a
corresponding increase in note balances).

In terms of collateral and the structural features, this
transaction is very similar to Canada Square Funding 2020-1, to
which we assigned ratings in March 2020. Of the preliminary pool,
4.2% (by current balance) of the mortgage loans have been granted
payment holidays due to COVID-19.

Citibank, N.A., London Branch, will retain an economic interest in
the transaction in the form of a vertical risk retention (VRR) loan
note accounting for 5% of the pool balance at closing. The
remaining 95% of the pool will be funded through the proceeds of
the mortgage-backed rated notes.

S&P considers the collateral to be prime, based on the overall
historical performance of Fleet Mortgages, Landbay Partners', and
Zephyr Homeloans' respective BTL residential mortgage books as of
May 2020, the originators' conservative lending criteria, and the
absence of loans in arrears in the securitized pool.

Credit enhancement for the rated notes will consist of
subordination from the closing date and overcollateralization
following the step-up date, which will result from the release of
the liquidity reserve excess amount to the principal priority of
payments.

The class A notes will benefit from liquidity support in the form
of a liquidity reserve, and the class A and B-Dfrd through E-Dfrd
notes will benefit from the ability of principal to be used to pay
interest, provided that, in the case of the class B-Dfrd to E-Dfrd
notes, the respective tranche's principal deficiency ledger (PDL)
does not exceed 10% unless they are the most senior class
outstanding.

There are no rating constraints in the transaction under our
counterparty, operational risk, or structured finance sovereign
risk criteria. S&P considers the issuer to be bankruptcy remote.

  Ratings List

  Class         Prelim. rating*     Class size (%)*
  A              AAA (sf)            85.0
  B-Dfrd         AA- (sf)             8.0
  C-Dfrd         A- (sf)              3.0
  D-Dfrd         BBB- (sf)            2.5
  E-Dfrd         B (sf)               1.5
  X-Dfrd         NR                   3.5
  VRR Loan Note     NR                5.0
  S1 certificates   NR                N/A
  S2 certificates   NR                N/A
  Y certificates    NR                N/A

  *As a percentage of 95% of the pool for the class A to X-Dfrd
notes.
  NR--Not rated.
  N/A--Not applicable.
  VRR--Vertical risk retention.


HAMMERSON PLC: Egan-Jones Lowers Senior Unsecured Ratings to BB+
----------------------------------------------------------------
Egan-Jones Ratings Company, on June 25, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by to Hammerson PLC BB+ from BBB-.

Headquartered in London, United Kingdom, Hammerson PLC invests in
and develops property.


INEOS ENTERPRISES: S&P Affirms 'B' ICR, On CreditWatch Negative
---------------------------------------------------------------
S&P Global Ratings said that it placed all its issuer credit
ratings on petrochemical companies owned by INEOS Ltd. (INEOS or
the INEOS group), and the rated debt instruments issued by these
companies, on CreditWatch with negative implications. This follows
the announcement that INEOS Styrolution intends to acquire BP's
global aromatics and acetyls business for $5 billion.

The CreditWatch negative placement of the ratings on INEOS
Styrolution, Inovyn, INEOS Group Holdings, and INEOS Enterprises
reflects that we expect increased leverage across the INEOS group.
S&P could lower its rating on the wider INEOS group and all its
entities by one notch depending on the capital structure of the
combined group and each entity within the group, as well as the
respective financial policies.

Ineos Styrolution has agreed a $400 million short-term facility and
intends to fund the remaining $3.6 billion of the initial
acquisition cost by issuing incremental debt. S&P said, "We
understand that $1 billion will be deferred and paid in three
separate instalments of $100 million in March, April, and May 2021,
with the remaining $700 million payable by the end of June 2021. We
understand that the parties intend to close the transaction by the
end of 2020, subject to regulatory approvals."

S&P said, "We will review the funding for the new structure once it
becomes clear, noting that the $5 billion of debt represents a
significant addition to leverage in the context of INEOS group's
existing capital structure. We will also consider the effect of the
transaction on the business, notably the overall strategy, cost
synergies, and leverage reduction plan that will be put in place.
We note the strategic fit of the assets and diversification
benefits to the wider INEOS group, as well as the company's track
record of previous integrations and business turnarounds."

The group's financial policy and rating commitment will be
important in the resolution of the CreditWatch placement. S&P
understands that the new structure is targeting a 'BB' rating. Once
the acquisition is complete, Inovyn will become a subsidiary of
INEOS Styrolution, and form part of the new finance group together
with the aromatics and acetyls business.

S&P said, "We view INEOS Styrolution, Inovyn, and INEOS Enterprises
as moderately strategic subsidiaries of the INEOS parent group.
Therefore, our group credit profile (GCP) assessment for INEOS caps
the ratings on these entities. We view INEOS Group Holdings (IGH)
as a core subsidiary of INEOS. As such, we rate IGH in line with
our GCP of 'bb'. We will also review our assessment on the credit
quality of the INEOS parent group."

CreditWatch

S&P said, "We will resolve the CreditWatch once we have more
information regarding the new entity's proposed capital structure
and form a view on the business benefits of the transaction to
INEOS and the combined group.

"We could lower our rating on the wider INEOS group and all its
entities by one notch depending on the capital structure of the
combined group and each entity within the group, as well as the
respective financial policies. We expect to resolve the CreditWatch
as further information becomes available and before the transaction
closes."

  Ratings List

  Ratings Placed On CreditWatch
                                         To           From
  INEOS Enterprises Holdings Ltd.
   Issuer Credit Rating           BB/Watch Neg/-- BB/Negative/--

  INEOS Enterprises Holdings II Ltd.
   Senior Secured                  BB/Watch Neg/        BB
    Recovery Rating                    3(60%)         3(60%)

  Ineos Enterprises Holdings Us Finco Llc
   Senior Secured                  BB/Watch Neg           BB
    Recovery Rating                    3(60%)           3(60%)

  Ineos Group Holdings S.A.
   Senior Unsecured                B+/Watch Neg          B+
    Recovery Rating                     6(0%)           6(0%)

  INEOS Finance PLC
   Senior Secured                  BB+/Watch Neg         BB+
    Recovery Rating                     2(80%)          2(80%)

  INEOS US Finance LLC
   Senior Secured                  BB+/Watch Neg         BB+
    Recovery Rating                     2(80%)          2(80%)

  Ineos Group Holdings S.A.

  Ineos Holdings Ltd.
   Issuer Credit Rating            BB/Watch Neg     BB/Negative/--

  INEOS Styrolution Group GmbH
   Senior Secured                  BB/Watch Neg          BB
    Recovery Rating                     3(60%)         3(60%)

  Ineos Styrolution Holding Ltd.
   Issuer Credit Rating            BB/Watch Neg     BB/Negative/--

  Inovyn Ltd.

  Inovyn Finance PLC
   Issuer Credit Rating            BB-/Watch Neg    BB-/Stable/--

  Inovyn Finance PLC
   Senior Secured                  BB-/Watch Neg         BB-
   Recovery Rating                     3(60%)          3(60%)


KINGFISHER PLC: Egan-Jones Lowers Senior Unsecured Ratings to BB
----------------------------------------------------------------
Egan-Jones Ratings Company, on June 23, 2020, downgraded the local
currency senior unsecured ratings on debt issued by Kingfisher PLC
to BB from BBB.

Headquartered in City of Westminster, London, United Kingdom,
Kingfisher PLC operates as a home improvement company.


MAGENTA PLC 2020: S&P Lowers Rating on Class E Notes to BB-
-----------------------------------------------------------
S&P Global Ratings took various credit rating actions in three
European hotel-backed CMBS transactions.

The hotel sector continues to face unprecedented headwinds on a
global scale following the lockdowns that governments put in place
to deal with the coronavirus pandemic. There does not yet appear to
be a consensus on when and to what extent business travel and
tourism will re-emerge in the U.K. S&P said, "Furthermore, it
remains to be seen whether the virus outbreak will have a long-term
impact on the hotel industry, but we believe RevPAR numbers are
likely to stabilize in the medium term slightly below their
averages for the recent past. At the same time, given the current
travel restrictions and social distancing measures in place, we
believe that those hotels dependent on international travel and
conference facilities are more exposed to a slower and more
protracted recovery, compared to 'drive-to' hotels."

S&P said, "With this in mind, we have reviewed each of our European
hotel-backed CMBS transactions and adjusted some of our long-term
cash-flow assumptions where necessary. Specifically, we have
applied further stresses to hotels situated by airports or in the
centre of key gateway cities, which are more dependent on
international demand. Moreover, where some classes of notes do not
benefit from liquidity coverage, we have applied an additional
adjustment to reflect the elevated risk given the current operating
environment."

Ribbon Finance 2018 PLC

The transaction is backed by one senior loan, which was originated
in April 2018 to facilitate the acquisition by the borrower sponsor
of 17 Holiday Inn hotels and three Crowne Plaza hotels throughout
the U.K. There has been one asset sale since closing, namely the
Holiday Inn Bloomsbury hotel in December 2019.

Since lockdown measures were imposed in the UK, three hotels were
rented to the government and six other hotels were left open for
key workers. Operating costs have declined over the short-term by
way of furloughing employees, having business rates reduced and
negotiating discounts with third party landlords and suppliers.
Notwithstanding this, the debt yield cash trap trigger was breached
at the most recent interest payment date (IPD) and the borrower
opted to cure such event through an injection of equity, which, in
combination with the surplus proceeds at the last IPD, amounts to
GBP10.15 million and will be applied toward repaying the loan at
the next IPD in July. The rent due from the opCos to the propCos
was received in full up to the end of June with no relief
requested.

  Key Transaction Features And S&P Assumptions
                            Current  Previous review   Closing
                            review  (Feb. 21, 2020) (June 8, 2018)

  Number of properties         19         19            20
  Loan outstanding principal
       (mil. GBP)             385.4      387.7         449.8
  LTV ratio (%)                62.4       62.7          65.0
  Market value (mil. GBP)     618.0      618.0         692.0
  S&P RevPAR                   66.2       67.5          70.5
  S&P NCF (mil. GBP)           37.7       40.1          42.5
  S&P value (mil. GBP)        452.8      481.0         521.0
  S&P cap rate                  7.92       7.92          7.75
  Haircut to reported
       market value (%)         27         22           22
  S&P LTV before recovery
    rate adjustments (%)        85.1       80.6         86.3

S&P has reduced its S&P net cash flow (NCF) to GBP37.7 million from
GBP40.1 million to reflect the potential decline in demand for
hotels located near airports or in the centre of key gateway
cities. The weighted average cap rate for the portfolio has
remained unchanged at 7.92%, which leads to a revised S&P Value of
GBP452.8 million, after also adjusting for purchase costs. This
translates to a like-for-like decline of 5.9% from the S&P Value
assumed at closing, and a 27% discount to the most recent market
value.

Cash flow, counterparty, operational, and legal risks are
adequately mitigated in line with S&P's criteria.

Rating actions

In S&P's view, the transaction's credit quality has declined due to
operational disruption resulting from the spread of COVID-19. S&P
believes this may continue to negatively affect the cash flows
available to the issuer.

Notwithstanding this, the credit metrics of each of the tranches
have developed some headroom since closing for deterioration in
operational performance over the long-term, due to the deleveraging
effect of the most recent asset sale. Also, S&P believes that the
available liquidity facility will continue to support the
transaction over the short-term, if necessary. Therefore, we have
affirmed our ratings on all classes of notes.

S&P's ratings in this transaction address the timely payment of
interest, payable quarterly in arrears, and the payment of
principal no later than the legal final maturity date.

Magenta 2020 PLC

Magenta 2020 is backed by one loan, which was originated in
December 2019 to facilitate the acquisition of 17 full-service
hotel properties in the U.K. The securitized loan equals GBP270.9
million and is secured by seven Crowne Plaza, three Doubletree by
Hilton, three Hilton Garden Inn, one Holiday Inn, one Hotel Indigo,
and two AC Hotel by Marriott branded hotels spread throughout the
U.K.

In order to address anticipated short-term cash flow shortfalls as
a result of COVID-19 related disruption, the senior loan facility
agent for the transaction has agreed to certain waivers, consents,
and amendments. These amendments and waivers are summarized as
follows:

-- The senior obligors are to provide to the servicer 12-month
cash flow forecasts monthly.

-- The sponsor is to deposit GBP17.5 million into the senior cure
account controlled by the senior facility manager, of which GBP4.55
million is to be paid into the operating account to cover operating
expenses for June.

-- Each month, the sponsor is to pay cash "top-ups" into the cure
account such that the cure account is, at all times, funded to
cover forecast shortfalls for the next six months.

-- The initial equity injection and equity amounts will be applied
by the senior loan facility agent monthly against senior and
mezzanine debt service, operating expenses, asset management fees,
and hotel franchise fees.

-- In exchange, the senior loan facility agent will grant a waiver
of financial covenants (and any material adverse change relating to
the breach of financial covenants) for a period up to but excluding
the initial termination date (December 2021).

-- The senior and mezzanine loan facility agents will also consent
to the use of the GBP5 million Hilton property improvement plan
(PIP) amount, currently held in the furniture, fixtures, and
equipment (FF&E) account, against debt service, operating expenses,
asset management fees, and hotel franchise fees. The Hilton PIP
amount will be moved into the senior cure account to be used in
proportion to the initial equity injection and equity amounts, and
returned to the FF&E account in full by no later than five business
days before the March 2021 IPD.

-- The senior and mezzanine loan facility agents will grant a
number of waivers for "technical defaults" under the senior and
mezzanine facility agreements (relating to hotel closures, the
reopening of the hotels, notification of underperformance of the
hotels, reduction of remuneration of employees, negotiations with
creditors as a result of the pandemic, no default, and
misrepresentation). All technical waivers will be granted until
Jan. 29, 2021 (except for the reopening of hotels, which will only
be required if reopening the relevant hotel is profitable).

-- The equity injection of GBP17.5 million used in conjunction
with the FF&E reserve of GBP5 million will mitigate to some extent
the risk of cash flow shortfalls. While the operational performance
of the portfolio remains uncertain over the next 12 months and
pockets of risk remain present within the transaction, the cash
proceeds made available will enhance the issuer's ability to pay
timely interest over the short term.

  Key Transaction Features And S&P Assumptions
                               Current review     Closing
                                               (Feb. 20, 2020)
  Number of properties                 17            17
  Loan outstanding principal
        (mil. GBP)                   270.9          270.9
  LTV ratio (%)                       62.2           62.2
  Market value (mil. GBP)            435.6          435.6
  S&P RevPAR                          65.3           65.3
  S&P NCF (mil. GBP)                  26.6           29.0
  S&P value (mil. GBP)               323.7          352.0
  S&P cap rate                         7.82          7.82
  Haircut to reported market value (%)   26           19
  S&P LTV before recovery rate adjustments (%)

S&P has reduced its S&P NCF to GBP26.6 million from GBP29.0 million
to reflect the potential decline in demand for hotels located near
airports or in the center of key gateway cities. The
weighted-average cap rate for the portfolio has remained unchanged
at 7.82%, which leads to a revised S&P value of GBP323.7 million,
after also adjusting for purchase costs. This translates to a
decline of 8% from the S&P Value calculated at closing, and a 26%
discount to the most recent market value. The revised S&P Value
leads to a lower model-implied rating of one notch for the class B
to E notes.

Other analytical considerations

At closing, an additional GBP8.3 million of class A notes were
issued, the proceeds of which are held in cash in the transaction
account. These funds serve as a liquidity reserve in lieu of a
traditional liquidity facility. The reserve is available to fund,
among other things, senior expenses and interest payments on the
class A, B, and C notes. However, whilst no interest shortfalls
have occurred to date, the class D and E notes do not benefit from
any liquidity coverage and S&P has therefore applied an additional
one notch downwards adjustment for these classes to reflect the
greater structural risk of an interest shortfall relative to the
rest of the notes in light of the COVID-19 induced liquidity
stress.

Counterparty, operational, and legal risks are adequately mitigated
in line with S&P's criteria.

Rating actions

S&P said, "In our view, the transaction's credit quality has
declined due to operational disruption resulting from the spread of
COVID-19. We believe this may continue to negatively affect the
cash flows available to the issuer.

"We have affirmed our rating on the class A notes and have lowered
our ratings on the class B to E notes. Meanwhile, we have removed
our ratings on the class D and E notes from CreditWatch negative to
reflect the reduced uncertainty surrounding the issuer's ability to
pay timely interest on these notes over the short term. While we
continue to expect a significant stress on the operational
performance for the hotel properties before business begins to
stabilize, the cash proceeds from the sponsor injected equity and
the furniture, fixtures and equipment (FFE) reserve will help
mitigate the risk, to some extent, over this period.

"Our ratings in this transaction address the timely payment of
interest, payable quarterly in arrears, and the payment of
principal no later than the legal final maturity dates."

Helios (European Loan Conduit No. 37) DAC

Helios is backed by a single GBP350 million loan, which was
originated in December 2019 to facilitate the refinancing of 49
limited service hotels in the U.K. by London & Regional Properties.
Specifically, there are 47 Holiday Inn Express hotels, a Hampton by
Hilton hotel, and a Park Inn hotel.

As of the most recent interest payment date in May, 22 of the 49
hotels have remained open and are contracted to either a government
or charitable organisation, to be available for key workers. The
remaining hotels were closed, with 73% of the total staff employed
across the entire portfolio being furloughed. The current situation
is being reviewed weekly and policies are likely to be adjusted for
when restrictions are lifted in the U.K. from July 4.

  Key Transaction Features And S&P Assumptions
                                    Closing review   Closing
                                                   (Dec. 19, 2019)
  Number of properties                       49          49
  Loan outstanding principal (mil. GBP)    350.0       350.0
  LTV ratio (%)                             62.4        62.4
  Market value (mil. GBP)                  561.1       561.1
  S&P RevPAR                                55.7        56.4
  S&P NCF (mil. GBP)                        36.9        38.3
  S&P value (mil. GBP)                     400.8       414.9
  S&P cap rate                               9.07        9.07
  Haircut to reported market value (%)       29         26
  S&P LTV before recovery rate adjustments (%) 87.3     84.4

S&P has reduced its S&P NCF to GBP36.9 million from GBP38.3 million
to reflect the potential decline in demand for hotels located near
airports or in the centre of key gateway cities. The weighted
average cap rate for the portfolio has remained unchanged at 9.1%,
which leads to a revised S&P value of GBP400.8 million, after also
adjusting for purchase costs. This translates to a decline of 3.4%
from the S&P Value calculated at closing, and a 29% discount to the
most recent market value.

Other analytical considerations

At closing, the issuer used the class RFN's proceeds to fund a
liquidity reserve for the transaction. The reserve is available to
fund, among other things, senior expenses and interest payments to
the class RFN, A, B, C, and D noteholders. However, whilst the
class E notes are yet to experience an interest shortfall, this
class does not benefit from any liquidity support and remains
vulnerable to future interest shortfalls over the short to medium
term.

Counterparty, operational, and legal risks are adequately mitigated
in line with our criteria.

Rating actions

S&P said, "In our view, the transaction's credit quality has
declined due to operational disruption resulting from the spread of
COVID-19. We believe this may continue to negatively affect the
cash flows available to the issuer.

"Whilst we have affirmed our ratings on the class RFN to D notes,
we have applied a one notch downward adjustment to the class E
notes rating to 'B+ (sf)' from 'BB- (sf)' to reflect the greater
structural risk of an interest shortfall relative to the rest of
the notes in light of the COVID-19 induced liquidity stress.

"Furthermore, our rating on the class E notes remains on
CreditWatch negative, to reflect the sustained uncertainty
surrounding the operational performance of the hotel properties
securing the transaction over the short term and the lack of any
structural support in the form of a liquidity facility or a
preemptive cash injection from the sponsor. As such, there remains
significant uncertainty on the transaction's ability to pay timely
interest on the class E notes.

"We expect to resolve the CreditWatch placement within 90 days as
we learn more about the potential bounce-back in operational
performance when the U.K. hotel industry re-opens on July 4.

"Our ratings in this transaction address the timely payment of
interest, payable quarterly in arrears, and the payment of
principal no later than the legal final maturity dates."

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."

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

-- Health and safety

  Ratings List

  Class      Rating to    Rating from

  Ribbon Finance 2018 PLC

  A          AAA (sf)     AAA (sf)
  B          AA (sf)      AA (sf)
  C          AA- (sf)     AA- (sf)
  D          A (sf)       A (sf)
  E          BBB- (sf)    BBB- (sf)
  F          BB (sf)      BB (sf)
  G          BB- (sf)     BB- (sf)

  Magenta 2020 PLC

  A          AAA (sf)     AAA (sf)
  B          AA- (sf)     AA (sf)
  C          A- (sf)      A (sf)
  D          BB (sf)      BBB- (sf)/Watch Neg
  E          BB- (sf)     BB+ (sf)/Watch Neg

  Helios (European Loan Conduit No. 37) DAC

  RFN        AAA (sf)     AAA (sf)
  A          AAA (sf)     AAA (sf)
  B          AA (sf)      AA (sf)
  C          A (sf)       A (sf)
  D          BBB- (sf)    BBB- (sf)
  E   B+ (sf)/Watch Neg   BB- (sf)/Watch Neg


MCLAREN: Receives Financial Lifeline, Calls Off Legal Battle
------------------------------------------------------------
Robert Smith, Samuel Agini and Peter Campbell at The Financial
Times report that UK sports car maker McLaren has reached a detente
with its bondholders, calling off a legal battle with its lenders
after receiving a financial lifeline from a Bahraini bank.

McLaren has faced a severe liquidity crunch from the coronavirus
crisis as supercar sales tumbled, prompting the group to cut 1,200
jobs, the FT relates.  The pandemic also upended revenues at its
Formula 1 racing team and motoring technology arm, throwing the
future of the two divisions under McLaren's ownership into doubt,
the FT discloses.

Its efforts to raise GBP250 million to GBP275 million of emergency
funding from a group of hedge funds ran into staunch opposition
from its existing bondholders, however, as the carmaker was
offering to mortgage its headquarters in Surrey and a valuable
collection of what it calls "heritage cars" to the new lenders, the
FT notes.

According to the FT, holders of its GBP645 million of junk-rated
bonds already had security over these assets, and while the
company's advisers believed there was a legal loophole allowing
them to pledge the collateral to new lenders, bondholders hired US
law firm Paul Hastings to push back against the new fundraising.

McLaren last month took the case to the UK high court to clarify
whether it could move forward with the controversial funding plan,
the FT recounts.  At a high court hearing in June, lawyers for
McLaren said that without further funding, the group would run out
of cash by July 17, the FT relays, citing people familiar with the
matter.

The legal action has now been called off, McLaren confirmed on July
2, the FT notes.

On June 29, National Bank of Bahrain announced it had signed a new
GBP150 million loan facility with the carmaker, handing the company
a financial lifeline, the FT states.  McLaren's majority
shareholder is Bahraini sovereign wealth fund Mumtalakat, which
also holds a stake in the company's new lender, the FT discloses.

According to the FT, people familiar with the matter said as this
one-year loan is not secured on the group's assets and McLaren has
transferred the proceeds to its holding company, bondholders
effectively view it as an injection of equity.


MOTION MIDCO: Moody's Confirms 'B2' CFR, Outlook Negative
---------------------------------------------------------
Moody's Investors Service has confirmed the corporate family rating
of B2 and probability of default rating of B2-PD of Motion Midco
Limited a leading international tourist attractions operator.
Concurrently, Moody's has confirmed the B1 rating of the senior
secured bonds issued by Merlin Entertainments Limited as well as
the B1 rating of the term loans, senior secured notes and the
revolving credit facility issued by Motion Finco S.a.r.l.
Concurrently, Moody's has confirmed the Caa1 rating on the senior
unsecured notes due 2027 issued by Motion Bondco DAC. The outlook
on all ratings has been changed to negative, from ratings under
review.

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.

Its ratings confirmations balance Merlin's adequate liquidity
against the breadth and severity of the coronavirus shock and the
uncertain trends in customer demand that will persist in the next
12-18 months. Moody's expects that Merlin's continued investments,
diversification and focus on domestic tourism will help it to
recover towards the pre-crisis levels relatively quicker compared
to the leisure sector as a whole. This is because air travel is
expected to remain at significantly lower levels in the next two
years because of both potential government restrictions and lower
passenger demand. Moody's notes however, that some parts of the
company's business, such as London Midway attractions, will likely
be lagging because of higher portion of international visitors. In
addition, Moody's forecasts an 8.5% contraction of GDP in the euro
area, 10.1% in the UK and 5.7% in the US this year and recessions
in many countries around the world, which will likely curb consumer
confidence and affect their leisure spending.

Merlin was initially hit by a sharp decline in revenues following
the closure of Merlin's attractions in most of the geographies the
company operates, including Europe, the US and Australia. As of,
over half of the company's attractions have been re-opened, while
majority of the remaining part, located mostly in the UK and the US
are expected to come back to operation before end of July.
According to the rating agency's base case the pace of recovery may
be slow in the first 1-2 months and uneven across different
countries due to both fears and travel restrictions. Moody's
analysis assumes around 45% reduction in revenues for Merlin for
the full year but depending on length and severity of the travel
restrictions and government confinement measures could include a
significantly deeper downside cases including significantly reduced
occupancy during the peak summer season.

The rating also reflects relative flexibility of the company's cost
base, as Merlin uses a significant number of seasonal workforces in
its parks and has benefitted from the UK government support
programmes for the payroll for its permanent staff. The company
estimated its monthly cash burn whilst attractions were closed at
around GBP50 million per months before the expansion capex, which
has been comfortably covered by the company's cash balance. Moody's
also expects that Merlin will be able to delay non-essential capex
projects and reduce total capex to around GBP250 million in 2020
and 2021 which includes the opening of LEGOLAND New York early next
season. Moody's also does not expect any significant claims for
reimbursements for the Merlin annual passes and hotel bookings,
which may be limited to GBP20-30 million in 2020, as the customers
were offered free extensions.

Assuming that confinement measures and travel restrictions are
gradually lifted throughout the summer in Merlin's key geographies
and there is no significant new outbreaks in Europe and the US,
Moody's estimates that Moody's-adjusted debt/EBITDA could
temporarily spike to above 20x in 2020 from 7.8x in 2019 before
reducing to the re-crisis levels in the next 18 months. Moody's
notes that the company's capital structure now includes GBP430
million of additional debt following the notes issuance in May and
does not anticipate Merlin's organic EBITDA to fully recover until
2022 However, the company's total EBITDA will be supported by the
LEGOLAND New York opening and by the full year contribution of
several Midway attractions that were opened prior to the pandemic.
That said, Moody's cautions there are inherent uncertainties and
variables involved in modelling profitability and cash flows in
times of great uncertainty.

ENVIRONMENTAL, SOCIAL & 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.

Governance risks taken into consideration in Merlin's credit
profile include a private-equity sponsored structure that often
results in higher tolerance for leverage and a greater appetite for
M&A and dividends. Nevertheless, Moody's views Merlin's ownership
structure to have a longer investment horizon. KIRKBI, which owns
50% of the company, is Merlin's partner and a major investor in the
company for almost 15 years. KIRKBI has been increasingly relying
on Merlin as one of the major avenues to promote its LEGO brand and
hence is interested in Merlin's long-term development. In addition,
CPP Investments and Blackstone, whose investment in Merlin is
through its longer dated Core fund, are both long-term oriented
shareholders.

LIQUIDITY

Merlin's liquidity is adequate. Following the recent notes issuance
in April the group had GBP500 million cash balance and fully
undrawn GBP400 million revolving credit facility. The rating agency
estimates that Merlin has sufficient resources to withstand the
pandemic-driven shutdown, even if it continues through the key
summer months as well as cover the remaining capital investments
for its key LEGOLAND New York project.

Moody's expects the company's free cash flow for the full 2020 to
be significantly negative at around GBP350-400 million due to the
pandemic and LEGOLAND capex, before increasing to around breakeven
in 2021. The company's cash flow remains characterised by material
seasonal swings, with nearly all earnings and net inflows generated
in the second and third quarters.

STRUCTURAL CONSIDERATIONS

The senior secured credit facilities and Merlin's senior secured
bonds are rated B1 - one notch above the CFR as they benefit from
the cushion provided by structurally and legally subordinated
senior unsecured notes, which are rated two notches below the CFR
at Caa1. The security however only includes material intercompany
receivables of obligors, shares in each obligor and material
company and bank accounts of each obligor.

RATIONALE FOR NEGATIVE OUTLOOK

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

Moody's could change the outlook to stable when it appears the
coronavirus impact on the business has receded and Merlin is on
track to reduce its leverage to around 7.5x.

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

Upward rating pressure would not arise until the coronavirus
outbreak is brought under control, travel restrictions are lifted,
and travel flows return to more normal levels. Over time, Moody's
could upgrade the company's rating if Merlin's Moody's adjusted
Debt/EBITDA decline sustainably below 7x while recovering its
number of visitors and EBITA margins to pre-crisis levels and
generating positive free cash flow.

Moody's could downgrade Merlin's ratings if confinement measures
and travel restrictions extend through or beyond the peak summer
season, leading to further deterioration in credit metrics and
liquidity. Quantitively, Moody's could downgrade the company's
rating if Merlin's adjusted debt/EBITDA does not decrease to around
7.5x in the next 12-18 months.

PRINCIPAL METHODOLOGY

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


NORIA 2018-1: DBRS Confirms C Rating on Class G Notes
-----------------------------------------------------
DBRS Ratings GmbH confirmed the following ratings on the notes
issued by Noria 2018-1 (the Issuer):

-- Class A Notes at AAA (sf)
-- Class B Notes at AA (sf)
-- Class C Notes at A (sf)
-- Class D Notes at BBB (sf)
-- Class E Notes at BB (sf)
-- Class F Notes at B (sf)
-- Class G Notes at C (sf)

The rating on the Class A Notes addresses the timely payment of
interest and ultimate payment of principal on or before the legal
final maturity date. The ratings of the Class B Notes, Class C
Notes, Class D Notes, Class E Notes, Class F Notes, and Class G
Notes address the ultimate payment of interest and ultimate payment
of principal on or before the legal final maturity date in June
2038.

The confirmations follow an annual review of the transaction and
are based on the following analytical considerations:

-- Portfolio performance, in terms of delinquencies, defaults,
    and losses as of the May payment date;

-- Probability of default (PD), loss given default (LGD), and
    expected loss assumptions on the remaining receivables;

-- Current available credit enhancement to the rated notes to
    cover the expected losses at their respective rating levels.

The Issuer is a securitization collateralized by a portfolio of
personal, debt consolidation and sales finance loans granted and
serviced by BNP Paribas Personal Finance. The transaction closed in
June 2018 and included a 12-month revolving period, which ended in
June 2019.

PORTFOLIO PERFORMANCE

As of the May 2020 payment date, two- to three-month arrears
represented 0.5% of the outstanding portfolio balance, while loans
more than three months in arrears represented 0.5% and the
cumulative default amounted to 2.2% of the aggregate initial
collateral balance, with cumulative recoveries of 5.7% to date.

PORTFOLIO ASSUMPTIONS AND KEY DRIVERS

DBRS Morningstar conducted a loan-by-loan analysis of the remaining
pool of receivables and updated its base case PD and LGD
assumptions to 5.7% and 62.0%, respectively.

CREDIT ENHANCEMENT

The subordination of the respective junior notes provides credit
enhancement to the rated notes. As of the May 2020 payment date,
credit enhancement to the Class A, Class B, Class C, Class D, Class
E, Class F, and Class G Notes has remained unchanged since closing
at 24.0%, 17.8%, 12.3%, 9.8%, 6.8%, 4.3%, and 0%, respectively,
because of the pro rata amortization of the Notes. If a Sequential
Redemption Event is triggered, the principal repayment of the Notes
will become sequential and nonreversible until the higher-ranked
class of the Notes is fully redeemed.

The transaction benefits from a Liquidity Reserve of EUR 8.8
million as of May 2020. The reserve target amount is equal to 1% of
the outstanding balance of the Class A, Class B, Class C, and Class
D Notes. It is available to cover senior expenses and swap
payments. The reserve has been at its target amount since closing.

BNP Paribas SA acts as the Special Dedicated Account Bank and BNP
Paribas Securities Services SCA acts as the Account Bank. Based on
the DBRS Morningstar reference rating of BNP Paribas SA at AA, one
notch below its Long Term Critical Obligations Rating of AA (high),
and the private rating of BNP Paribas Securities Services SCA, the
downgrade provisions outlined in the transaction documents, and
other mitigating factors inherent in the transaction structure,
DBRS Morningstar considers the risk arising from the exposure to
the account banks to be consistent with the ratings assigned to the
Notes, as described in DBRS Morningstar's "Legal Criteria for
European Structured Finance Transactions" methodology.

BNP Paribas Personal Finance acts as the swap counterparty for the
transaction. DBRS's private rating of BNP Paribas Personal Finance
is above the First Rating Threshold as described in DBRS
Morningstar's "Derivative Criteria for European Structured Finance
Transactions" methodology.

DBRS Morningstar analyzed the transaction structure in Intex
DealMaker.

The Coronavirus Disease (COVID-19) and the resulting isolation
measures have caused an economic contraction, leading to sharp
increases in unemployment rates and income reductions for many
borrowers. DBRS Morningstar anticipates that delinquencies may
arise in the coming months for many ABS transactions, some
meaningfully. The ratings are based on additional analysis and
adjustments to expected performance as a result of the global
efforts to contain the spread of the coronavirus.

Notes: All figures are in Euros unless otherwise noted.


SCORPIO DAC: DBRS Confirms BB Rating on Class E Notes
-----------------------------------------------------
DBRS Ratings Limited confirmed its ratings of the following classes
of notes of the Commercial Mortgage-Backed Floating Rate Notes due
May 2029 issued by Scorpio (European Loan Conduit No. 34) DAC:

-- Class RFN at AAA (sf)
-- Class A1 at AAA (sf)
-- Class A2 at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)

All trends remain Stable.

Scorpio (European Loan Conduit No.34) DAC is the securitization of
82.5% (GBP 236.4 million) of a GBP 286.4 million floating-rate
senior commercial real estate loan (the senior loan) advanced by
Morgan Stanley Bank N.A. (the Loan Seller) to borrowers sponsored
by Blackstone Group L.P. (Blackstone or the Sponsor). The remaining
17.5% of the senior loan is retained by the original senior lender
and is ranked pari passu with the securitized senior loan. The
financing is also accompanied by a GBP 57.3 million (80%
loan-to-value or LTV) mezzanine loan granted by BSRECP III Joint
International S.à r.l. and Broad Street Credit Holdings S.a r.l.
The mezzanine loan is structurally and contractually subordinated
to the senior facility and is not part of the transaction.

The senior loan (66.8% LTV) is backed by a portfolio of 112
multilet, last-mile industrial properties located throughout the
United Kingdom. Blackstone acquired the assets through 16
subportfolio transactions between Q2 2018 and Q1 2019. Blackstone
and M7 Real Estate Ltd. (M7) manage the portfolios, leveraging
their asset and investment management platforms.

Since issuance, the overall performance of the portfolio has been
stable even amidst the prevailing Coronavirus Disease (COVID-19)
pandemic. As of May 2020, approximately 850 tenants occupied 90.6%
of the portfolio's net lettable area (NLA). The top five tenants
contribute 8.0% of the gross rental income (GRI) with no tenant
lease in the portfolio representing more than 2.25% of GRI.
Investment-grade tenants comprise 8.5% of the GRI, adding further
support to a highly granular tenant base. The assets are
geographically concentrated across the UK: in Scotland (22.3%
market value or MV), Northern England (26.5% MV), and the Midlands
(26.1% MV). Properties accounting for a combined 25.1% of the
portfolio MV are located in Southern England and Wales.

The current quarter's debt yield was 9.3%, which is 0.2% lower than
the previous quarter's 9.5%; this is largely due to the impact of
the coronavirus pandemic. The borrower reported that it had
received 58 requests from tenants seeking amendments to the terms
of their leases, including rent deferrals and requests to switch to
monthly payments. 36 of the requests had been agreed to, equating
to approximately GBP 385,000 of relief being granted. DBRS
Morningstar views this reduction of approximately 1% of GRI as low.
Given the asset class of the portfolio of last-mile industrial
properties and the granularity of the tenants, any future impact of
the coronavirus on the portfolio is estimated to be limited,
particularly now that restrictions to the lockdown are being
lifted; however, DBRS Morningstar will monitor the performance of
the portfolio with regard to lease amendment requests in the run-up
to the next interest payment date and pending initial loan maturity
in November 2020. The borrower has three annual loan extension
options available; if all extensions are exercised the final loan
maturity will be in May 2024.

The loan structure does not include financial default covenants
prior to a permitted change of control, but provides other standard
events of default including: (1) any missing payment, including
failure to repay the loan by the maturity date; (2) borrower
insolvency; (3) a loan default arising as a result of any
creditors' process or cross-default. DBRS Morningstar notes that
the lack of default financial covenants makes it easier for the
borrower to exercise the loan maturity extension options included
in the facility agreement, and, as a result, reduces the
refinancing risk of the loan.

The transaction includes a Reserve Fund Note (RFN), which funds 95%
of the liquidity reserve (i.e., the note share part). After
issuance, the GBP 10.4 million RFN proceeds and the GBP 0.5 million
Vertical Risk Retention (VRR) loan contribution was deposited into
the transaction's liquidity reserve, which works similarly to a
typical liquidity facility by providing liquidity to pay property
protection advances, senior costs, and interest shortfalls (if any)
in relation to the corresponding VRR loan, Class A1, Class A2,
Class B, Class C, and Class D notes (for further details, please
see the "Liquidity Support" section in DBRS Morningstar's rating
report for this transaction).

According to DBRS Morningstar's analysis, the liquidity reserve
amount will be equivalent to approximately 15 months on the covered
notes, based on the interest rate cap strike rate of 2.0% per year
and nine months based on the Libor cap after the loan maturity of
5.0% per year.

The final legal maturity of the notes is expected to be in May
2029, five years after the fully extended loan term. The latest
loan maturity date, considering potential extensions, is May 15,
2024. In DBRS Morningstar's view, such structural feature provides
further benefit to the securitization with regard to loan
refinancing risk and property value declines.

Class E is subject to an available funds cap where the shortfall is
attributable to an increase in the weighted-average margin of the
notes.

COVID-19 CONSIDERATIONS

The Coronavirus Disease (COVID-19) and the resulting isolation
measures have caused an economic contraction, leading to sharp
increases in unemployment rates and income reductions for many
tenants and borrowers. DBRS Morningstar anticipates that vacancy
rate increases and cash flow reductions may arise for many CMBS
borrowers, some meaningfully. In addition, commercial real estate
values will be negatively affected, at least in the short-term,
impacting refinancing prospects for maturing loans and expected
recoveries for defaulted loans. The ratings are based on additional
analysis as a result of the global efforts to contain the spread of
the coronavirus.

Notes: All figures are in British pound sterling unless otherwise
noted.




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

[*] BOOK REVIEW: Mentor X
-------------------------
The Life-Changing Power of Extraordinary Mentors
Author: Stephanie Wickouski
Publisher: Beard Books
Hard cover: 156 pages
ISBN: 978-1-58798-700-7
List Price: $24.75

Order this Book: https://is.gd/EIPwnq

Long-time bankruptcy lawyer Stephanie Wickouski at Bryan Cave
impressively tackles a soft problem of modern professionals in an
era of hard data and scientific intervention in her third published
book entitled Mentor X. In an age where employee productivity is
measured by artificial intelligence and resumes are prescreened by
computers, Stephanie Wickouski adds spirit and humanity to the
professional journey.

The title is disarmingly deceptive and book browsers could be
excused for assuming this work is just another in a long line of
homogeneous efforts on mentorship. Don't be fooled; Mentor X is
practical, articulate and lively. Most refreshingly, the book
acknowledges the most important element of human development: our
intuition.

Mrs. Wickouski starts by describing what a mentor is and
distinguishes that role from a teacher, coach, role model, buddy or
boss. Younger professionals may be skeptical of the need for a
mentor, but Mrs. Wickouski deftly disabuses that notion by relating
how a mentor may do nothing less than change the course of a
protege's life. Newbies to this genre need little convincing
afterwards.

One of the book's worthiest contributions is a definition of mentor
that will surprise most readers. Mentors are not teachers, the
latter of which impart practical knowledge. Instead, according to
Mrs. Wickouski, her mentors "showed me secrets that I could learn
nowhere else. They showed me how doors are opened. They showed me
how to be an agent of change and advance innovative and
controversial ideas." What ambitious professional doesn't want more
of that in their life?

The practicality of the book continues as Mrs. Wickouski outlines
the qualities to look for in a mentor and classifies the various
types of mentors, including bold mentors, charismatic mentors, cold
and distant mentors, dissolute mentors, personally bonded mentors,
younger mentors, and unexpected mentors. Mentor X includes charts
and workbooks which aid the reader in getting the most out of a
mentor relationship. In a later chapter, Mrs. Wickouski provides an
enormously helpful suggestion about adopting a mentor: keep an open
mind. Often, mentors will come in packages that differ from our
expectations. They may be outside of our profession, younger, less
educated, etc . . . but the world works in mysterious ways and Mrs.
Wickouski encourages readers to think about mentors broadly.  In
this modern era of heightened workplace ethics, Mrs. Wickouski
articulates the dark side of mentors. She warns about "dementors"
and "tormentors" -- false mentors providing dubious and sometimes
self-destructive advice, and those who abuse a mentor relationship
to further self-interested, malign ends, respectively. She
describes other mentor dysfunctions, namely boundary-crossing,
rivalry, corruption, and a few others. When a mentor manifests such
behaviors, Mrs. Wickouski counsels it's time to end the
relationship.

Mrs. Wickouski tells readers how to discern when the mentor
relationship is changing and when it is effectively over. Those
changes can be precipitated by romantic boundaries crossed,
emergence of rivalrous sentiment, or encouragement of unethical
behavior or corruption. Mrs. Wickouski aptly notes that once
insidious energies emerge, the mentorship is effectively over. At
this point, certain readers may say to themselves, "Okay, I've got
it. Now I can move on." Or, "My workplace has a formal mentorship
program. I don't need this book anymore." Or even, "Can't modern
technology handle my mentor needs, a Tinder of mentorship, so to
speak?"

Mrs. Wickouski refutes that notion. She analyzes how many mentoring
programs miss the mark. In one of the best passages in the book,
Mrs. Wickouski writes, "Assigning or brokering mentors negates the
most critical components of a true mentor–protege relationship:
the individual process of self-awareness which leads a person to
recognize another individual who will give the advice singularly
needed. That very process is undermined by having a mentor assigned
or by going to a mentoring party." She does not just criticize; she
offers a solution with three valuable tips for choosing the right
mentor and five qualities to ascertain a true mentor in the
unlimited sea of possibilities.

Next, Mrs. Wickouski distinguishes between good advice and bad
advice. She punctuates that discussion with many relevant and
relatable examples that are easy to read and colorfully enjoyable.
This section includes interviews with proteges who have had
successful mentorships. The punchline: in the best mentorships, the
parties harmoniously share personal beliefs and values. Also
important, the protege draws inspiration and motivation from the
mentor. The book winds down as usefully as it started: Mrs.
Wickouski interviews proteges, asking them what they would have
done differently with their mentors if they could turn back the
clock. A common thread seems to be that the proteges would have
gone deeper with their mentors -- they would have asked more
questions, spent more time, delved into their mentors' thinking in
greater depth.

The book wraps up lightly by sharing useful and practical
suggestions for maintenance of the mentor relationship. She answers
questions such as, "Do I invite my mentor to my wedding?" and "Who
pays for lunch?"

Mentor X is an enjoyable read and a useful book for any
professional in any industry at, frankly, any point in time.
Advanced individuals will learn much from the other side, i.e., how
to be more effective mentors. Mrs. Wickouski does a wonderful job
of encouraging use of that all knowing aspect of human existence
which never fails us: proper use of our intuition.

                         About The Author

Stephanie Wickouski is widely regarded as an innovator and
strategic advisor. A nationally recognized lawyer, she has been
named as one of the 12 Outstanding Restructuring Lawyers in the US
by Turnarounds & Workouts and as one of US News' Best Lawyers in
America. She is the author of two other books: Indenture Trustee
Bankruptcy Powers & Duties, an essential guide to the legal role of
the bond trustee, and Bankruptcy Crimes, an authoritative resource
on bankruptcy fraud. She also writes the Corporate Restructuring
blog.



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

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

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

This material is copyrighted and any commercial use, resale or
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