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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

          Wednesday, July 8, 2020, Vol. 21, No. 136

                           Headlines



C Z E C H   R E P U B L I C

FRENCH-REST: Art Nouveau French Restaurant Shuts Down


F R A N C E

TECHNICOLOR SA: Moody's Cuts Rating on 2023 Sec. Bank Loans to Ca


G E R M A N Y

WIRECARD AG: Deutsche Bank Still Evaluating Possible Support


I R E L A N D

BAIN CAPITAL 2018-2: Fitch Lowers Class F Debt Rating to 'B-sf'
CAIRN CLO VII: Moody's Cuts Class F Notes to B3
COMPUB: High Court Appoints Interim Examiner
MADISON PARK XIV: Moody's Confirms B2 Rating on Class F Notes
PROVIDUS CLO III: Fitch Keeps B- on Class F Notes on Watch Neg.



I T A L Y

DEDALUS HOLDING: S&P Assigns Prelim. 'B' ICR on Aceso Acquisition
DEDALUS SPA: Fitch Assigns 'B(EXP)' IDR, Outlook Stable
DEDALUS SPA: Moody's Assigns B3 CFR, Outlook Positive


N E T H E R L A N D S

AURORUS BV 2020: Moody's Gives (P)B2 Rating on Class F Notes
PLT VII FINANCE: Fitch Assigns 'B(EXP)' Issuer Default Rating


P O R T U G A L

TAP SGPS: Portugal Agrees to Buy David Neeleman's Indirect Stake


R U S S I A

EURASIA DRILLING: Fitch Affirms BB LongTerm IDR, Outlook Stable
PIK GROUP: Fitch Affirms BB- LongTerm IDR, Outlook Stable
TRANSMASHHOLDING JSC: Fitch Affirms BB LongTerm IDRs


S W E D E N

SAS AB: Moody's Cuts CFR to Caa2 & Alters Outlook to Negative


U N I T E D   K I N G D O M

ARDONAGH MIDCO 3: Moody's Affirms B3 CFR, Outlook Stable
BRITISH STEEL: Jingye in Last-Ditch Attempt to Buy French Factory
CONSTRUCTION PARTNERSHIP: Owed GBP11-Mil. at Time of Collapse
PINNACLE BIDCO: Moody's Confirms B3 CFR, Outlook Negative
VIRGIN ATLANTIC: Virgin Group Commits to Provide GBP200MM Funding


                           - - - - -


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C Z E C H   R E P U B L I C
===========================

FRENCH-REST: Art Nouveau French Restaurant Shuts Down
-----------------------------------------------------
Prague Morning reports that the Art Nouveau French Restaurant in
the Prague Municipal House is the latest Prague dining
establishments to shut down because of COVID-19.

Prague Morning, citing an earlier Hospodarske noviny report, says
the restaurant has been operating by French-Rest company for 20
years.

Opened originally in 1912, it was known as one of the most
beautiful Art Nouveau restaurants in the world. The walls and
ceilings have rich stucco work designed by Frantisek Kraumann, and
one of the room decorators was the famous painter Alfons Mucha.

"Like so many others, the COVID-19 virus closure has devastated our
business. We are unable to recover and will not reopen our beloved
restaurant," wrote the owners Jan Filip and Jan Stepanek.
French-Rest has now filed for insolvency, Prague Morning relays.

The company owes a total of CZK13.7 million to more than 70
creditors. Last year, French-Rest earned almost CZK132 million and
achieved a profit of CZK2.4 million, Prague Morning discloses.

According to the insolvency statement, the state loan programs
Covid I and II were "unusable" for the company. Covid III could no
longer be used due to the banks' reluctance to lend money to the
restaurant classified as "a high-risk group of entrepreneurs," the
report relays.

Prague Morning adds that the company employed about a hundred
people before the crisis, and now owes a total of CZK7.4 million in
wages and severance pay. The lease of space in the Art Nouveau
palace has cost the company CZK4.5 million every quarter.

The restaurant's space should be taking over by the company
Vysehrad 2000, which already operates a cafe in the Municipal
House. According to management, the new restaurant will open at the
end of July, Prague Morning notes.




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

TECHNICOLOR SA: Moody's Cuts Rating on 2023 Sec. Bank Loans to Ca
-----------------------------------------------------------------
Moody's Investors Service has downgraded Technicolor S.A.'s rating
on the senior secured bank credit facilities maturing 2023 to Ca
from Caa3. Concurrently, the rating agency downgraded to Ca-PD from
Caa3-PD the probability of default rating and confirmed the group's
Caa3 corporate family rating. The outlook on all ratings changed to
negative from ratings under review.

The rating action concludes the review for downgrade initiated on
May 26, 2020.

RATINGS RATIONALE

The rating action reflects the proposed restructuring of the
group's capital, which would result in a material loss for
investors if executed as proposed by Technicolor. Moody's views the
proposed distressed debt exchange as an event of default once the
transaction closes. Upon closing, it will append the "LD"
designation to the PDR, which will be removed after three business
days. The designation results from its practice of interpreting
circumstances in which a debt holder accepts a compromise offering
of a diminished financial obligation as an indication of an
untenable debt capital structure. The "/LD" component would signal
that a "limited default" has occurred on the exchanged securities.
The debt exchange is specifically designed to reduce the debt and
interest expense burden and results in creditors recognizing
losses, which represents the occurrence of a deemed default.

The proposed capital restructuring aims for bolstering
Technicolor's liquidity by raising EUR420 million of new debt,
which will be financed by existing lenders of the term loan and the
RCF (totaling to EUR400 million) and by Bpifrance (EUR20 million).
Concurrently the group targets to reduce its elevated leverage by a
debt-to-equity swap, in which a part of the existing debt (a total
of approx. EUR1,232 million from three term loans adding up to
EUR982 million and the fully drawn RCF of EUR250 million) will be
reduced by EUR660m to approx. EUR572 million. Taking into account
that Bpifrance is already committed to the rights issue for an
amount of up to EUR25.5 million, investors are expected to take a
loss of approx. 51.5% on the nominal value of its debt.

RATIONALE FOR OUTLOOK

The negative outlook reflects the possibility that the proposed
debt restructuring could be unsuccessful resulting in a capital
structure that remains unsustainable and the risk of a liquidation
with lower recovery for the creditors. Furthermore, an operating
improvement of Technicolor's business following the restructuring
of its debt could be negatively impacted by the currently
challenging macro environment.

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

The ratings on Technicolor could be further downgraded should the
group default on its debt obligations or pursue a formal
reorganization of its debt, or if recovery expectations on
Technicolor's debt instruments were to weaken.

An upgrade of Technicolor's ratings is unlikely before the
execution of its capital restructuring

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Technicolor S.A., headquartered in Paris, France, is a leading
provider of solutions and services for the Media & Entertainment
industries, deploying and monetizing next-generation video and
audio technologies and experiences. The group operates in two
business segments: Entertainment Services and Connected Home.
Technicolor generated revenues of around EUR3.8 billion and EBITDA
(company-adjusted) of EUR324 million in 2019.




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

WIRECARD AG: Deutsche Bank Still Evaluating Possible Support
------------------------------------------------------------
Tom Sims and Hans Seidenstuecker at Reuters report that Deutsche
Bank's chief executive said on July 7 it was premature to say how
the lender might aid the banking unit of collapsed payments service
provider Wirecard.

Germany's largest bank said last week that it was working with
financial watchdog BaFin and Wirecard's insolvency administrator on
possible support for Wirecard Bank, Reuters relates.

On July 7, Deutsche Bank CEO Christian Sewing said it was "too
early to judge" how the bank may step in, Reuters notes.

According to Reuters, Mr. Sewing said that for Deutsche, with its
focus on transaction banking, it was "almost an obligation" to look
at the Wirecard's bank for opportunities or to stabilize it.

Last week, Deutsche Bank had published a statement that said it was
"in principle prepared" to provide support "in the context of a
continuation of business operations, if such assistance should
become necessary".

Mr. Sewing also said Deutsche Bank's exposure to Wirecard was very
limited, Reuters relays.

Wirecard filed for insolvency last month owing creditors EUR4
billion (US$4.51 billion) after disclosing a EUR1.9 billion hole in
its accounts that its auditor EY said was the result of a
sophisticated global fraud, Reuters recounts.




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

BAIN CAPITAL 2018-2: Fitch Lowers Class F Debt Rating to 'B-sf'
---------------------------------------------------------------
Fitch Ratings has taken rating actions on Bain Capital Euro CLO
2018-2 DAC.

Bain Capital Euro CLO 2018-2 DAC

  - Class A XS1890839043; LT AAAsf; Affirmed

  - Class B-1 XS1890839126; LT AAsf; Affirmed

  - Class B-2 XS1890839399; LT AAsf; Affirmed

  - Class C XS1890841452; LT Asf; Affirmed

  - Class D XS1890839555; LT BBBsf; Rating Watch On  

  - Class E XS1890842930; LT BB-sf; Downgrade  

  - Class F XS1890843235; LT B-sf; Rating Watch Maintained

TRANSACTION SUMMARY

Bain Capital Euro CLO 2018-2 DAC (the issuer) is a securitisation
of mainly senior secured obligations (at least 92.5%) with a
component of senior unsecured, mezzanine and second-lien loans. The
portfolio is actively managed by Bain Capital Credit U.S. CLO
Manager, LLC and it is within its reinvestment period.

KEY RATING DRIVERS

Portfolio Performance Deterioration: The downgrade reflects the
deterioration in the portfolio as a result of the negative rating
migration of the underlying assets in light of the coronavirus
pandemic. In addition, as per the trustee report dated June 8,
2020, the aggregate collateral balance is below par by 1.02%
(assuming defaulted assets at zero principal balance). The
trustee-reported Fitch weighted average rating factor of 36.22 is
in breach of its test and the Fitch-calculated WARF of the
portfolio increased to 36.47 on June 27.

'B'/'B-' Category Portfolio Credit Quality: Fitch assesses the
average credit quality of obligors to be in the 'B'/'B-' category.
The Fitch-calculated 'CCC' and below category assets (including
non-rated assets) represented 11.98% of the portfolio on June 8,
which was over the 7.5% limit.

High Recovery Expectations: Senior secured obligations comprise
98.10% of the portfolio. Fitch views the recovery prospects for
these assets as more favourable than for second-lien, unsecured and
mezzanine assets. Fitch's weighted average recovery rate of the
current portfolio is 64.44%.

Portfolio Composition: The portfolio is well diversified across
obligors, countries and industries. Exposure to the top 10 obligors
is 13.3% and no obligor represents more than 3% of the portfolio
balance. The largest industry is business services at 13.71% of the
portfolio balance, followed by chemicals at 10.21% and healthcare
at 9.51%.

Cash Flow Analysis: Fitch used a customised proprietary cash flow
model to replicate the principal and interest waterfalls and the
various structural features of the transaction, as well as to
assess their effectiveness, including the structural protection
provided by excess spread diverted through the par-value and
interest coverage tests. Fitch modelled the transaction using the
current portfolio based on both the stable and rising interest rate
scenario and the front-, mid- and back-loaded default timing
scenarios, as outlined in its criteria.

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

Deviation from Model-Implied Rating: The model-implied ratings for
class E and F are two notches below the current ratings. The
committee deviated from the model-implied ratings on both classes
as the shortfalls were mitigated by the back-loaded default timing
scenario only. The committee nevertheless downgraded class E by one
notch to the lowest rating in the respective rating category. These
ratings are in line with the majority of Fitch-rated EMEA CLOs.
Both notes were put on RWN again as there are shortfalls even at
the updated rating and in the coronavirus sensitivity scenario as
described below.

When conducting cash flow analysis, Fitch's model first projects
the portfolio's scheduled amortisation proceeds and any prepayments
for each reporting period of the transaction life, assuming no
defaults (and no voluntary terminations, when applicable).

In each rating stress scenario, such scheduled amortisation
proceeds and prepayments are then reduced by a scale factor
equivalent to the overall percentage of loans not assumed to
default (or to be voluntary terminated, when applicable). This
adjustment avoids running out of performing collateral due to
amortisation and ensures all of the defaults projected to occur in
each rating stress are realised in a manner consistent with Fitch's
published default timing curve.

RATING SENSITIVITIES

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

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

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

Downgrades may occur if the build-up of the notes' credit
enhancement following amortisation does not compensate for a higher
loss expectation than initially assumed due to an unexpectedly high
level of default and portfolio deterioration. As the disruptions to
supply and demand due to the coronavirus disruption become apparent
for other vulnerable sectors, loan ratings in those sectors would
al so come under pressure. Fitch will update the sensitivity
scenarios in line with the views of its leveraged finance team.

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

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

BEST/WORST CASE RATING SCENARIO

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

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

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

DATA ADEQUACY

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

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

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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


CAIRN CLO VII: Moody's Cuts Class F Notes to B3
-----------------------------------------------
Moody's Investors Service has taken a variety of rating actions on
the following notes issued by Cairn CLO VII B.V.:

EUR17,900,000 Class D Senior Secured Deferrable Floating Rate Notes
due 2030, Confirmed at Baa2 (sf); previously on Jun 3, 2020 Baa2
(sf) Placed Under Review for Possible Downgrade

EUR22,400,000 Class E Senior Secured Deferrable Floating Rate Notes
due 2030, Confirmed at Ba2 (sf); previously on Jun 3, 2020 Ba2 (sf)
Placed Under Review for Possible Downgrade

EUR9,100,000 Class F Senior Secured Deferrable Floating Rate Notes
due 2030, Downgraded to B3 (sf); previously on Jun 3, 2020 B2 (sf)
Placed Under Review for Possible Downgrade

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

EUR203,900,000 Class A-1 Senior Secured Floating Rate Notes due
2030, Affirmed Aaa (sf); previously on Oct 31, 2019 Definitive
Rating Assigned Aaa (sf)

EUR10,000,000 Class A-2 Senior Secured Fixed Rate Notes due 2030,
Affirmed Aaa (sf); previously on Oct 31, 2019 Affirmed Aaa (sf)

EUR40,800,000 Class B Senior Secured Floating Rate Notes due 2030,
Affirmed Aa2 (sf); previously on Oct 31, 2019 Affirmed Aa2 (sf)

EUR19,700,000 Class C Senior Secured Deferrable Floating Rate Notes
due 2030, Affirmed A2 (sf); previously on Oct 31, 2019 Definitive
Rating Assigned A2 (sf)

Cairn CLO VII B.V., originally issued in February 2017 and
refinanced in October 2019, is a collateralised loan obligation
backed by a portfolio of mostly high-yield senior secured European
loans. The portfolio is managed by Cairn Loan Investments LLP. The
transaction's reinvestment period will end in January 2021.

RATINGS RATIONALE

Its action concludes the rating review on the Class D, E and F
notes announced on June 3, 2020 as a result of the deterioration of
the credit quality and/or the reduction of the par amount of the
portfolio following from the coronavirus outbreak.

Stemming from the coronavirus outbreak, the credit quality of the
portfolio has deteriorated as reflected in an increase in Weighted
Average Rating Factor and in the proportion of securities from
issuers with ratings of Caa1 or lower. The percentage of securities
with default probability ratings of Caa1 or lower in the underlying
portfolio increased from 1.71% as of December 2019's trustee report
[1] to 7.08% in June 2020 [2]. In addition, the
over-collateralisation (OC) levels have weakened across the capital
structure. According to the trustee report of June 2020 the Class
A/B, Class C, Class D, Class E and Class F OC ratios are reported
at 136.24%, 126.46%, 118.72%, 110.27% and 107.17% compared to
December 2019 levels of 137.47%, 127.60%, 119.78%, 111.26% and
108.13% respectively. Moody's notes that none of the OC tests are
currently in breach and the transaction remains in compliance with
the following collateral quality tests: Diversity Score, Weighted
Average Recovery Rate, Weighted Average Spread and Weighted Average
Life.

As a result of this deterioration, the Class F notes were
downgraded. Moody's however concluded that the expected losses on
remaining rated notes remain consistent with their current ratings.
Consequently, Moody's has confirmed the ratings on the Class D and
E notes and affirmed the ratings on the Class A-1, A-2, B and C
notes.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base case,
Moody's analysed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR345,171,486.68,
defaulted par of EUR4,700,000, a weighted average default
probability of 26.65% (consistent with a WARF of 3472), a weighted
average recovery rate upon default of 45.8% for a Aaa liability
target rating, a diversity score of 44 and a weighted average
spread of 3.67%.

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

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

The rapid spread of the coronavirus outbreak, the government
measures put in place to contain it and the deteriorating global
economic outlook, have created a severe and extensive credit shock
across sectors, regions and markets. Its analysis has considered
the effect on the performance of corporate assets from the collapse
in global economic activity in the second quarter and a gradual
recovery in the second half of the year. However, that outcome
depends on whether governments can reopen their economies while
also safeguarding public health and avoiding a further surge in
infections. As a result, the degree of uncertainty around its
forecasts is unusually high. Moody's regards the coronavirus
outbreak as a social risk under its ESG framework, given the
substantial implications for public health and safety.

Methodology Underlying the Rating Action:

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

Counterparty Exposure:

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

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

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
notes, in light of uncertainty about credit conditions in the
general economy. CLO notes' performance may also be impacted either
positively or negatively by: (1) the manager's investment strategy
and behaviour; and (2) divergence in the legal interpretation of
CDO documentation by different transactional parties because of
embedded ambiguities.

Additional uncertainty about performance is due to the following:

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

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

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

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


COMPUB: High Court Appoints Interim Examiner
--------------------------------------------
Limerick Leader reports that there are fears for yet more retail
jobs in Limerick after an interim examiner was put in place at
Apple re-seller Compu b.

The firm has a store at 121 O'Connell Street, alongside five other
outlets in this country across Dublin, Cork and Galway.  In
Britain, it has some 24 stores.

The High Court appointed the examiner the Irish headquarters and
three related British companies, Limerick Leader relates.

According to Limerick Leader, a report put before the court from an
independent expert said that the firms had a reasonable prospect of
survival as a going concern if certain conditions were met as part
of a restructuring plan.

In the petition, it was stated Compu B's Irish activities should be
run through a separate entity to protect against concerns related
to Brexit primarily, Limerick Leader notes.

It stated the business had been profitable, but Covid-19 had
impacted its cash flow after it was forced to close a number of
stores, Limerick Leader relays.  This, coupled with
under-performing stores and the acceleration of customer trends
towards online had all contributed to this, according to Limerick
Leader.

Unless court protection is secured, the companies will be unable to
pay its debts as they fall, with a deficit of EUR3.3 million due by
the end of the month, Limerick Leader states.

Mr. Justice Denis McDonald appointed David O'Connor of BDO as the
firm's interim examiner, Limerick Leader discloses.


MADISON PARK XIV: Moody's Confirms B2 Rating on Class F Notes
-------------------------------------------------------------
Moody's Investors Service has confirmed the ratings on the
following notes issued by Madison Park Euro Funding XIV DAC:

EUR30,900,000 Class D Senior Secured Deferrable Floating Rate Notes
due 2032, Confirmed at Baa3 (sf); previously on Jun 3, 2020 Baa3
(sf) Placed Under Review for Possible Downgrade

EUR29,600,000 Class E Senior Secured Deferrable Floating Rate Notes
due 2032, Confirmed at Ba3 (sf); previously on Jun 3, 2020 Ba3 (sf)
Placed Under Review for Possible Downgrade

EUR12,200,000 Class F Senior Secured Deferrable Floating Rate Notes
due 2032, Confirmed at B2 (sf); previously on Jun 3, 2020 B2 (sf)
Placed Under Review for Possible Downgrade

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

EUR300,865,000 Class A-1 Senior Secured Floating Rate Notes due
2032, Affirmed Aaa (sf); previously on Jul 10, 2019 Definitive
Rating Assigned Aaa (sf)

EUR15,835,000 Class A-2 Senior Secured Fixed Rate Notes due 2032,
Affirmed Aaa (sf); previously on Jul 10, 2019 Definitive Rating
Assigned Aaa (sf)

EUR35,190,000 Class B-1 Senior Secured Floating Rate Notes due
2032, Affirmed Aa2 (sf); previously on Jul 10, 2019 Definitive
Rating Assigned Aa2 (sf)

EUR15,010,000 Class B-2 Senior Secured Fixed Rate Notes due 2032,
Affirmed Aa2 (sf); previously on Jul 10, 2019 Definitive Rating
Assigned Aa2 (sf)

EUR18,060,000 Class C-1 Senior Secured Deferrable Floating Rate
Notes due 2032, Affirmed A2 (sf); previously on Jul 10, 2019
Definitive Rating Assigned A2 (sf)

EUR16,740,000 Class C-2 Senior Secured Deferrable Fixed Rate Notes
due 2032, Affirmed A2 (sf); previously on Jul 10, 2019 Definitive
Rating Assigned A2 (sf)

Madison Park Euro Funding XIV DAC, issued in July 2019, is a
collateralised loan obligation backed by a portfolio of
predominantly European senior secured loan and senior secured
bonds. The portfolio is managed by Credit Suisse Asset Management
Limited. The transaction's reinvestment period will end in January
2024.

RATINGS RATIONALE

Its action concludes the rating review on the Classes D, E and F
notes initiated on June 3, 2020 as a result of the deterioration of
the credit quality and/or the reduction of the par amount of the
portfolio following from the coronavirus outbreak.

Stemming from the coronavirus outbreak, the credit quality of the
portfolio has deteriorated as reflected in the increase in Weighted
Average Rating Factor and of the proportion of securities from
issuers with ratings of Caa1 or lower. The reported WARF has
worsened by about 20.6% to 3500 in May 2020 [1] from 2903 in
November 2019 [2]. As per the May 2020 [1] trustee report,
securities with ratings of Caa1 or lower currently make up
approximately 7.4% of the underlying portfolio. Moody's notes that
none of the OC tests are currently in breach and the transaction
remains in compliance with the following collateral quality tests:
Diversity Score, Weighted Average Recovery Rate, Weighted Average
Spread and Weighted Average Life.

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

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base case,
Moody's analysed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR515.3 million,
defaults of EUR0.17 million, a weighted average default probability
of 29.7% (consistent with a WARF of 3523 over a weighted average
life of 6.14 years), a weighted average recovery rate upon default
of 44.81% for a Aaa liability target rating, a diversity score of
60 and a weighted average spread of 3.73%.

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

Moody's notes that the June 2020 trustee report was published at
the time it was completing its analysis of the May 2020 data. Key
portfolio metrics such as WARF, diversity score, weighted average
spread and life, and OC ratios exhibit little or no change between
these dates.

The rapid spread of the coronavirus outbreak, the government
measures put in place to contain it and the deteriorating global
economic outlook, have created a severe and extensive credit shock
across sectors, regions and markets. Its analysis has considered
the effect on the performance of corporate assets from the collapse
in global economic activity in the second quarter and a gradual
recovery in the second half of the year. However, that outcome
depends on whether governments can reopen their economies while
also safeguarding public health and avoiding a further surge in
infections. As a result, the degree of uncertainty around its
forecasts is unusually high. Moody's regards the coronavirus
outbreak as a social risk under its ESG framework, given the
substantial implications for public health and safety.

PRINCIPAL METHODOLOGY

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

Counterparty Exposure:

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

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

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
notes, in light of uncertainty about credit conditions in the
general economy. In particular, the length and severity of the
economic and credit shock precipitated by the global coronavirus
pandemic will have a significant impact on the performance of the
securities. CLO notes' performance may also be impacted either
positively or negatively by: (i) the manager's investment strategy
and behaviour; (ii) divergence in the legal interpretation of CDO
documentation by different transactional parties because of
embedded ambiguities; and (iii) the additional expected loss
associated with hedging agreements in this transaction which may
also impact the ratings negatively.

Additional uncertainty about performance is due to the following:

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

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

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

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


PROVIDUS CLO III: Fitch Keeps B- on Class F Notes on Watch Neg.
---------------------------------------------------------------
Fitch Ratings has maintained the Rating Watch Negative on Providus
CLO III DAC's class E and F notes and affirmed the others.

Providus CLO III DAC  

  - Class B-1 XS2019348858; LT AAsf; Affirmed

  - Class B-2 XS2019349401; LT AAsf; Affirmed

  - Class C XS2019350169; LT Asf; Affirmed

  - Class D XS2019350839; LT BBB-sf; Affirmed

  - Class E XS2019351480; LT BB-sf; Rating Watch Maintained

  - Class F XS2019351308; LT B-sf; Rating Watch Maintained

TRANSACTION SUMMARY

This is a cash flow CLO mostly comprising senior secured
obligations. The transaction is within its reinvestment period and
is actively managed by the collateral manager.

KEY RATING DRIVERS

The RWN and Negative Outlooks on the class D, E and F notes reflect
the deterioration of the portfolio as a result of the negative
rating migration of the underlying assets in light of the
coronavirus pandemic. The transaction is marginally above target
par.

Asset Quality:

'B'/'B-' Portfolio Credit Quality: Fitch considers the average
credit quality of obligors to be in the 'B'/'B-' range. The
Fitch-calculated weighted average rating factor of the portfolio is
33.69.

Asset Security:

High Recovery Expectations: Senior secured obligations make up
95.80% of the portfolio. 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 of the
portfolio is 67.19%.

Portfolio Composition:

The top 10 obligors' concentration is 17.88% and no obligor
represents more than 2.19% of the portfolio balance. By Fitch's
calculation, the largest industry is business services at 19.32% of
the portfolio balance, with the three largest industries comprising
54.32%, against limits of 17.5% and 40%, respectively.

Cash Flow Analysis:

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

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

When conducting cash flow analysis, Fitch's model first projects
the portfolio scheduled amortisation proceeds and any prepayments
for each reporting period of the transaction life assuming no
defaults (and no voluntary terminations, when applicable).

In each rating stress scenario, such scheduled amortisation
proceeds and prepayments are then reduced by a scale factor
equivalent to the overall percentage of loans that are not assumed
to default (or to be voluntary terminated, when applicable). This
adjustment avoids running out of performing collateral due to
amortisation and ensures all of the defaults projected to occur in
each rating stress are realised in a manner consistent with Fitch's
published default timing curve.

RATING SENSITIVITIES

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

At closing, Fitch used a standardised stress portfolio (Fitch's
Stress Portfolio) that is customised to the specific portfolio
limits for the transaction as specified in the transaction
documents. Even if the actual portfolio shows lower defaults and
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, given the portfolio's credit
quality may still deteriorate, not only by natural credit
migration, but also by reinvestments.

After the end of the reinvestment period, upgrades may occur in
case of a better-than-expected portfolio credit quality and deal
performance, leading to higher credit enhancement and excess spread
available to cover for losses on the remaining portfolio. For more
information on Fitch's Stressed Portfolio and initial model-implied
rating sensitivities for the transaction, see the new issue
report.

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

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

Coronavirus Baseline Scenario Impact:

Fitch carried out a sensitivity analysis on the target portfolio to
determine the coronavirus baseline scenario. The agency notched
down the ratings for all assets with corporate issuers on Negative
Outlook regardless of sector. This scenario demonstrates the
resilience of the current ratings with cushions except for the
class D, E and F notes, which show small cushions which may erode
quickly with a small deterioration of the portfolio.

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

BEST/WORST CASE RATING SCENARIO

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

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

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

DATA ADEQUACY

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

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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




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

DEDALUS HOLDING: S&P Assigns Prelim. 'B' ICR on Aceso Acquisition
-----------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B' long term issuer
and issue ratings to Dedalus Holding S.p.A (Dedalus) and its
proposed RCF and term loan, as well as its '3'(55%) recovery rating
to the debt.

S&P said, "Our preliminary rating on Dedalus primarily reflects our
view of the company's highly leveraged capital structure following
the acquisition of Aceso in May 2020. We forecast Dedalus' debt to
EBITDA, as adjusted by S&P Global Ratings, at 8.0x-8.5x in 2020 on
a pro-forma basis, then falling toward 7.0x in 2021, compared with
an estimated 8.2x in 2019. In our view, this potential deleveraging
is supported by Dedalus' expected cross- and up-selling
opportunities and cost synergies following the addition of Aceso,
but constrained by the company's private-equity owner, which could
pursue debt-funded mergers and acquisitions (M&A) or dividend
distribution following a strong operational performance.

"We think Dedalus' financial profile is supported by its strong
cash flow. We forecast free operating cash flow (FOCF) of over
EUR50 million in 2020 and in excess of EUR65 million in 2021 on a
pro-forma basis, thanks to increasing EBITDA, and limited working
capital and capital expenditure (capex). This translates into FOCF
to debt of about 6.4% and 8.0% in 2020 and 2021, respectively.
Dedalus also utilizes a EUR60 million factoring facility to ease
cash flow volatility, with trade receivables slightly more skewed
to the second half of the year because of its exposure to the
public sector in Italy, which typically pays after the budget is
approved in the first half. We assume average drawing of about 50%
of this factoring facility within our adjusted debt calculations.

"Our view on Dedalus' business profile is mainly constrained by its
sole product focus on healthcare IT, lower recurring revenue and
EBITDA margin compared with peers in the wider software sector, and
increasing competition due to further market consolidation. With
pro-forma revenue of about EUR470 million in 2019, mainly from
healthcare IT services, we think Dedalus is much less diversified
than leading software vendors like SAP or Oracle, despite its sound
product offering in multiple healthcare verticals. In our view,
this makes the company more susceptible to industry-specific risks
like market consolidation, competition, unfavorable regulatory
changes, or technology changes, despite serving customers in the
more defensive healthcare industry. Additionally, we think the
healthcare industry is slower in migrating the existing on-premise
IT infrastructure to software as a service, partly due to data
security concerns, limiting Dedalus' share of recurring revenue. We
estimate recurring maintenance revenue as a percentage of total
revenue for the combined group will be less than 55% in 2019,
compared with about 70% for U.S. peer Project Ruby Parent Corp. and
much less than most enterprise resource planning (ERP) providers,
which tend to have 70%-90%." That said, Dedalus has demonstrated a
very stable trend of reoccurring revenue, mainly from professional
services (implementation, training, customization, testing, for
example) related to ongoing deployment of new medical devices and
processes to existing customers. Including reoccurring revenue, the
company's total repeated revenue from existing customers is
estimated at about 70% in 2019.

S&P said, "Furthermore, we think Dedalus' EBITDA margin is lower
than other software peers, estimated at about 23% for 2019. In our
view, this is mainly because of the company's high R&D spending, at
about 16% of revenue, and large share of lower margined
professional services. Among the combined group's approximate 3,000
full-time employees, about 1,600 are mandated to provide
professional services, and about 1,100 are working in R&D. We
expect the margin will gradually improve toward the software-sector
average of 25%-30%, on the back of the expected cost synergies.

"We think hospital services will continue to consolidate on the
back of government support to improve the cost for healthcare
services, particularly in France and Italy. In our view,
consolidation will likely benefit the market leaders like Dedalus
in the short-to-medium term; it will enable Dedalus to win larger
tenders, particularly considering its proven track record of
healthcare IT product offering and strong R&D capabilities.
However, in the long term, we think consolidation will increase
hospitals' bargaining power and pressure software vendor pricing.
Additionally, it will result in an accelerated consolidation of
healthcare IT vendors and increased competition.

"Our view on Dedalus' business profile is mainly supported by its
leading market position in Italy, France, and Germany, its strong
R&D capabilities, and long-term customer contracts with a minimal
churn rate. Based on the company's estimates, Dedalus is the market
leader in Italy, France, and Germany, with above 20% market share
for the combined electronic medical records (EMR), anatomical
pathology information system, and laboratory information systems
segments. We expect Dedalus' market share will further increase
thanks to the continued consolidation of healthcare IT markets.
Additionally, we think Dedalus' products are mission critical to
health care service providers because they support staff with daily
tasks such as administrative functions, and clinical- and
patient-related daily activities and work flow management in
laboratories. There are also high switching costs due to the
complexity of the products and the initial license fee. Moreover,
we consider products sold to public hospitals as relatively
recession-proof because demand for healthcare remains stable, and
public hospitals will have a budget to spend through economic
cycles. That said, we note that a smaller portion of Dedalus'
customers are private health care providers, which could be at
higher risk considering the lack of full government support. We
think that the complexity of Dedalus' IT solutions for hospitals
and laboratories will benefit the company with more cross- and
up-selling opportunities compared with vendors more focused on
general practitioners, leading to stronger organic growth prospects
in the long term. Furthermore, we think Dedalus' enjoys very
favorable contract terms with customers, averaging three-to-five
years, and it had very low average churn rate of less than 1% in
the past three years. In our view, this will create high barriers
to entry for other large software providers like SAP, which is more
focused on ERP solutions in the healthcare industry. It also
provides better protection for Dedalus from other regional
nondistant competitors and smaller niche players.

"We think Dedalus' business risk profile has materially improved
following the acquisition of Aceso, through which the company more
than doubled its scale, strengthened its market position in France,
and gained access to the DACH (Germany, Austria, and Switzerland)
region. Additionally, we think the acquisition will unleash further
cross-selling opportunities and cost synergies between the two
companies by leveraging a combined product portfolio and R&D
platform. However, we think the business could be hurt if the
integration with Aceso turns out to be more difficult than planned
given the size of the acquisition and complex nature of the
products, despite the company's sound track record of integrating
acquired businesses.

"The stable outlook reflects our view that Dedalus' revenue will
continue to increase 5%-7% in 2020, despite the potential setback
from COVID-19 on its professional services revenue. We also expect
steadily increasing EBITDA on the back of expected synergies,
leading to an S&P Global Ratings-adjusted debt to EBITDA of below
8.5x in 2020.

"We could lower the rating by one notch if Dedalus' growth is much
slower than our current base case, or the integration with Aceso
leads to a much higher churn rate, resulting in adjusted debt to
EBITDA above 8.5x (7.0x excluding PIK), or FOCF to debt below 5% in
2020.

"We think an upgrade is unlikely over the next 12 months
considering Dedalus' highly leveraged capital structure and
private-equity ownership. However, we could raise the rating by one
notch over the longer term if Dedalus significantly deleverages to
below 6.5x (5.0x excluding PIK), and FOCF to debt increases to
about 10% on a sustained basis."


DEDALUS SPA: Fitch Assigns 'B(EXP)' IDR, Outlook Stable
-------------------------------------------------------
Fitch Ratings has assigned Dedalus SpA a first-time expected
Long-Term Issuer Default Rating of 'B(EXP)' with a Stable Outlook.
Fitch has also assigned an expected rating of 'B+(EXP)'/'RR3'/63%
to Dedalus Finance GmbH's EUR680 million first-lien senior secured
term loan. The assignment of final ratings is contingent on the
receipt of final documents being in line with the information
received for the expected ratings.

Dedalus SpA, is the leading pan-European player in a fragmented
healthcare software market, formed from the combination of
Dedalus's operations in Italy and France and Aceso, a carve-out of
the healthcare software business from Agfa-Gevaert with operations
in Germany, Austria, Switzerland and France. Both companies also
have small operations in other countries. Dedalus's rating benefits
from strong positions in its key market segments, highly
diversified customer base, recurring nature of its revenues and
supportive market trends. The main constraining factor for the
rating is the company's high funds from operations leverage, which
Fitch expects to be between 6.5x and 7.5x in 2021-2023.

Fitch believes Dedalus's private equity ownership limits
deleveraging as equity owners are likely to prioritise M&A, growth
and dividends over debt reduction. The company is approximately
75%-owned by private investment firm, Ardian, with the remaining
25% owned by Dedalus's founder and minority shareholders. Fitch
expects that deleveraging will be primarily achieved with EBITDA
growth driven by organic expansion and synergies from the merger.

KEY RATING DRIVERS

Strong Position on Fragmented Markets: The combination of Dedalus
and Aceso creates a pan-European player with market leadership
positions in its regions of operation, across its core software
healthcare markets. Dedalus's share can vary from 20% to 70% in
different software market sub-segments.

The European healthcare software market is highly fragmented and
Dedalus competes with different set of competitors in each market.
Dedalus's main competitive advantages are its dedicated focus on
the healthcare industry, strong R&D capabilities and a relatively
large scale. These allow it to operate efficiently in different
healthcare systems in compliance with local regulation and
international standards.

Extensive Product Offering: The combined group covers the entire
spectrum of healthcare software needs for clinical activities
including electronic medical records, diagnostic solutions
(including laboratory, anatomical pathology and radiology
information systems), administration activities and enterprise
resource planning, which supports day-to-day administrative
functions (e.g. procurement, HR, finance) and primary/integrated
care and general practitioners and the care process of chronic and
complex patients.

EMR is the main segment for Dedalus, contributing around 50% to its
revenue with the second-largest contributor, diagnostic solutions,
generating around 30% of revenues.

Resilient Revenues: Around 80% of Dedalus's revenues are recurring
or re-occurring, which provides a relatively high degree of cash
flow visibility and stability. The critical nature of software
products, combined with significant barriers to entry (e.g. high
switching costs and initial R&D), long-term nature of contracts
(three to six years), as well as low technological risk secure
customer base sustainability, which is evidenced by a very low
churn rate (around 1%).

Diversified Customer Base: Dedalus benefits from a well-diversified
customer base with its top 20 customers together not accounting for
more than 12% of the company's revenue. Its customer base includes
over 5,000 hospitals, more than 4,800 labs and over 23,000 GPs.
Fitch believes that geographic, product and customer
diversification reduces revenue volatility and secures more
sustainable revenue growth compared with single-market peers.

Leverage Constrains the Rating: Fitch expects Dedalus's FFO
leverage to be at 8.3x in 2020 on a pro-forma basis and decline to
7.4x and 7.0x in 2021 and 2022, respectively. Deleveraging will be
driven by a combination of organic EBITDA growth and acquisition
synergies. The other leverage metric (cash from operations - capex
/gross debt) is expected to be at 7-10% in 2021-2023, which is
consistent with other 'B' software peers. Fitch expects Dedalus to
generate strong free cash flow at high single-digits margins.
However, Fitch believes it is likely that excess funds will be
spend on growth acceleration, acquisitions and dividends rather
than debt reduction, due to private equity ownership.

Synergies Drive EBITDA Growth: Fitch expects that Dedalus's EBITDA
growth in 2021-2023 will be driven by organic revenue growth and
synergies from the transaction, which should come from cost-cutting
and cross-selling. The major synergies, including optimisation of
overlapping functions and property and centralised procurement, are
expected to come from France, where Dedalus's and Aceso's
operations overlap and from research and development (R&D)
optimisation.

Fitch views the execution risks as low to moderate, given both
companies' strong track record in extracting synergies from
previous M&A transactions. Fitch applies a modest 25% haircut to
the synergies expected by the management to incorporate these
risks. The restructuring and integration will involve additional
costs in 2020-2023, some of which it treats as non-recurring.

Supportive Industry Trends:  Fitch believes that Dedalus is well
positioned to benefit from the digitalisation of European
healthcare systems. This is deemed essential not only to improve
treatment quality and patient experience, but also to tackle rising
healthcare costs driven by secular trends, such as ageing
population. The low digitalisation of healthcare infrastructure in
EU pushes governments to promote investments in IT infrastructure.
However, this trend is partially offset by the rationalisation of
hospitals, data security concerns and budget constraints.

COVID-19 Highlights Importance of Modernisation: The COVID-19
pandemic highlights the importance of medical data storage and the
necessity for collaborations across healthcare systems. The
pandemic may lead to increased efforts of European governments on
healthcare system modernisation, including most importantly
digitalisation, which will be supportive for Dedalus in the
long-term.

In the short term, the pandemic-related isolation measures will
likely lead to delays in some project deployments, which Fitch
expects to reverse in the second half of the year as restrictions
are relaxed. The company has also implemented cost-cutting measures
in response to the COVID-19 outbreak, including hiring freeze,
cutting travel expenses and others, to support its margins

DERIVATION SUMMARY

Dedalus's ratings are supported by the company's leading market
positions in its key segments in all countries of presence, its
unique pan-European footprint in the highly fragmented healthcare
software industry, the long-term nature of contracts and a
sustainable customer base as evidenced by low churn rates.
Dedalus's closest Fitch-rated peer is TeamSystem Holding S.p.A
(B/Stable), a leading Italian accounting and ERP software company
with a good proportion of recurring revenue. The companies have
similar leverage profiles and benefit from healthy market trends
and sustainable customer base.  Dedalus has a larger geographical
footprint with exposure to more stable economies in Germany and
France, while TeamSystems operates only in Italy but benefits from
higher margins. Dedalus's operating profile compares well with that
of other Fitch-rated software peers, in particular Project Angel
Holdings, LLC (MeridianLink, B/Stable), Particle Luxembourg S.A
R.L. (WebPros, B/Stable) and Ellie Mae, Inc (B+/Negative). Another
peer group would be cybersecurity firms such as Imperva Inc.
(B-/Stable), Surf Intermediate I Limited (Sophos, B-/Stable), which
enjoy higher medium-term revenue growth prospects and stronger
margins but have higher leverage. Dedalus is also broadly
comparable with the other private and publicly Fitch-rated peers in
the wider technology sector. It has slightly higher leverage but
benefits from its market leadership, diversification and robust FCF
generation.

KEY ASSUMPTIONS

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

  - Mid single digit revenue growth in 2021-2023

  - Pro-forma EBITDA margin at 21.4% (pre-IFRS16) in 2020 gradually
increasing to 26% as synergies materialise

  - Working capital change per year between EUR1 million and EUR4
million in 2020-2023

  - Capex intensity ratio at 1.2% in 2020-2023

  - Capitalised research and development costs at Dedalus Italy SpA
are treated as expensed and included in EBITDA

  - Integration and transformation expenses of total EUR22 million
spread across 2020-2023, treated mainly as one-off items below FFO

  - Factoring in the amount of EUR38 million (YE19 outstanding
amount) is included in total debt

KEY RECOVERY RATING ASSUMPTIONS

The recovery analysis assumes that Dedalus would be reorganised as
a going-concern in bankruptcy rather than liquidated.

  - Fitch estimates that the post-restructuring EBITDA would be
around EUR90 million. Fitch would expect a default to come from a
secular decline or a drop in revenue and EBITDA following an
unlikely emergence of a disruptive technology, reputational damage
or intensified competition. The EUR90 million GC EBITDA is 14%
lower than Fitch-defined 2020 EBITDA forecast of EUR104 million.

  - An enterprise value multiple of 6.0x is applied to the GC
EBITDA to calculate a post-reorganisation EV. The multiple is in
line with that of other similar software companies that exhibit
strong pre-dividend FCF generation. Historical bankruptcy exit
multiples for peer companies range from 2.6x to 10.8x, with a
median of 5.1x. However, software companies demonstrated higher
multiples (4.6x-10.8x). In the current transaction, Aceso was
valued at approximately 16x EBITDA. Fitch believes that the high
acquisition multiple also supports its recovery multiple
assumption

  - 10% of administrative claims taken off the EV to account for
bankruptcy and associated costs

  - Fitch estimates the total amount of secured debt for claims at
EUR760 million, which includes EUR680 million senior secured term
loan and assuming that the EUR80 million pari passu ranked
revolving credit facility (RCF) is fully drawn.

  - Fitch does not include EUR140 million PIK notes outside of the
perimeter of the restricted group in total debt and treat it as
equity in line with its criteria

  - Fitch does not include factoring facilities in the total claims
estimates as Fitch believes that the factoring programme will
continue to be available

  - Fitch estimates the expected recoveries for senior secured debt
at 63%. This results in the senior secured debt being rated
'B+'/'RR3', one notch above the IDR.

RATING SENSITIVITIES

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

  - FFO gross leverage below 6x

  - CFO less capex/gross debt at above 10%

  - Continued strong market leadership and strong FCF generation

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

  - FFO gross leverage sustainably above 7.5x

  - CFO less capex/gross debt below 5%

  - FFO interest coverage sustainably below 2.0x;

  - Failure to extract synergies from the Aceso acquisition leading
to slower EBITDA growth and delayed deleveraging

  - A weakening market position as evidenced by slowing revenue
growth

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

Strong Liquidity: Following the completion of the transaction,
Fitch expects liquidity to remain strong over the next four years,
supported by positive FCF generation, a prudent approach to the
amount of cash on the balance sheet and a EUR80 million RCF. The
term loan is due in seven years.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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


DEDALUS SPA: Moody's Assigns B3 CFR, Outlook Positive
-----------------------------------------------------
Moody's Investors Service has assigned a B3 corporate family rating
and a B3-PD probability of default rating to Dedalus S.p.A. Moody's
has at the same time assigned B3 instrument ratings to the planned
EUR680 million term loan B and the EUR80 million revolving credit
facility both issued by Dedalus Finance GmbH. All ratings have a
positive outlook.

RATINGS RATIONALE

The B3 CFR assigned to Dedalus S.p.A. positively reflects (1) the
leading market position with a highly stable customer base in the
healthcare segment and a high share of recurring revenues, (2) the
currently ongoing market push by regulation and shift towards
technology, (3) the company's consistently high margins, and (4)
free cash flow generation potential assuming the absence of
shareholder distributions, which should support expected
deleveraging going forward.

Nevertheless the rating is constrained by (1) a financial policy
characterized by a relatively high starting leverage of 7.1x pro
forma 2019 following the acquisition of Aceso and ongoing elevated
levels in the next 12 - 18 months, excluding the PIK-notes outside
the restricted group, (2) a generally saturated and competitive
market environment with limited organic growth potential of max.
3-4% and recent uncertainty around the short-term coronavirus
impact, (3) potential risks associated with the carve-out of Aceso
and integration into Dedalus, (4) a generally low diversification
in terms of products and end-markets compared to the wider software
market, and (5) utilization of external factoring programs.

OUTLOOK

The positive outlook reflects its expectation that the company will
maintain its high share of recurring revenue with stable margins
and that there will be no elevated debt-funded acquisitions or
shareholder distribution as the company deleverages. It also
reflects its expectation that the company will continuously
generate positive FCF over the next few years and maintain adequate
liquidity.

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

Dedalus ratings could be upgraded if (1) Moody's adjusted
debt/EBITDA falls towards 6.0x and (2) Moody's adjusted FCF/debt
sustainably above 5% and (3) a prudent financial policy absent any
shareholder distributions or debt-funded acquisitions.

Downward pressure on Dedalus' ratings would build, if (1) Moody's
adjusted debt/EBITDA exceeds 7.5x or (2) Moody's adjusted free cash
flow/debt turns negative or (3) any signs of weakening operating
performance or major customer losses or (4) any sign of weakening
liquidity.

LIQUIDITY

Moody's views the liquidity profile of Dedalus as adequate. It is
supported by moderate free cash flow of around EUR30 million in
2020. Dedalus avails of factoring programs supporting the
liquidity. These factoring facilities have short maturities of up
to 18 months and can lead to liquidity need in case not being
prolonged.

Dedalus has access to a EUR80 million revolving credit facility
which matures in 2026 and Moody's does not expect it to be drawn as
part of their ordinary cause of business. The RCF entails one
springing financial covenant at defined net leverage level only
tested when the facility is drawn by more than 40%. Moody's expects
sufficient headroom under the covenant test level.

STRUCTURAL CONSIDERATIONS

The term loan B is borrowed by Dedalus Finance GmbH. Dedalus has
additionally access to short-term factoring facilities of EUR60
million of which up to EUR40 million might be utilized by year-end
and are considered as debt in its methodology for standard
adjustments.

The RCF ranks pari passu to the term loan B and can be drawn by
Dedalus Finance GmbH, Dedalus S.p.A., Dedalus France SA, Agfa
Healthcare GmbH and Agfa Healthcare France SA as original
borrowers. Guarantor coverage for the RCF and the TLB is weak.
Dedalus Italy S.p.A., as the main operating entity of Dedalus
S.p.A.'s legacy business, is not part of the guarantor coverage.
The Aceso and Dedalus entities in the DACH region, France and Rest
of World are part of the guaranteeing entities. Moody's expects
combined EBITDA coverage of between 53% and 57%.

Moody's furthermore expects no cash outflow to the PIK notes which
are outside of the restricted group.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Moody's takes into account the impact of environmental, social and
governance factors when assessing companies' credit quality.
Dedalus' ratings factor in its private equity ownership and an
aggressive financial policy, illustrated by its very high financial
leverage and the existence of significant PIK notes issued outside
the restricted group, which will be used to fund the acquisition
but are not included in its leverage calculations.

PRINCIPAL METHODOLOGY

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




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

AURORUS BV 2020: Moody's Gives (P)B2 Rating on Class F Notes
------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to Notes to be issued by Aurorus 2020 B.V.:

EUR[ ]M Class A Floating Rate Notes due August 2046, Assigned
(P)Aaa (sf)

EUR[ ]M Class B Floating Rate Notes due August 2046, Assigned
(P)Aa2 (sf)

EUR[ ]M Class C Floating Rate Notes due August 2046, Assigned (P)A2
(sf)

EUR[ ]M Class D Floating Rate Notes due August 2046, Assigned
(P)Baa3 (sf)

EUR[ ]M Class E Floating Rate Notes due August 2046, Assigned
(P)Ba3 (sf)

EUR[ ]M Class F Floating Rate Notes due August 2046, Assigned (P)B2
(sf)

Moody's has not assigned ratings to the EUR[ ]M Class G Floating
Rate Notes due August 2046 and EUR[ ]M Class X Floating Rate Notes
due August 2046, which will also be issued at the closing of the
transaction.

RATINGS RATIONALE

The transaction is a revolving cash securitisation of unsecured
consumer loans extended by Qander Consumer Finance B.V. (not rated)
to obligors in the Netherlands. The originator will also act as the
servicer of the portfolio during the life of the transaction.

As of 4 May 2020, the provisional portfolio shows 97.1%
non-delinquent contracts with a weighted average seasoning of
around 4.8 years. The portfolio consists for the majority of
amortising loans (52.0%), which have equal instalments during the
life of the loan. The remainder of the portfolio consists of
revolving loans (48.0%).

The rapid spread of the coronavirus outbreak, the government
measures put in place to contain it and the deteriorating global
economic outlook, have created a severe and extensive credit shock
across sectors, regions and markets. Its analysis has considered
the effect on the performance of consumer assets from the collapse
in Dutch economic activity in the second quarter and a gradual
recovery in the second half of the year. However, that outcome
depends on whether governments can reopen their economies while
also safeguarding public health and avoiding a further surge in
infections. As a result, the degree of uncertainty around its
forecasts is unusually high. Moody's regards the coronavirus
outbreak as a social risk under its ESG framework, given the
substantial implications for public health and safety.

According to Moody's, the transaction benefits from credit
strengths such as (i) a granular portfolio; (ii) an experienced
originator/servicer and a back-up servicer; and (iii) appropriate
credit enhancement levels. Furthermore, the Notes benefit from a
non-amortising cash reserve funded at closing at 0.5% of the
initial notes balance of Class A to D. The cash reserve will build
up to 1.5% of Class A to D Notes after the end of the revolving
period in September 2023 using excess spread before payment of
interest on Class E and F. This mechanism will result in
approximately two months of deferred interest on Class E and F. The
reserve will provide liquidity during the life of the transaction
to pay senior expenses, hedging costs and the coupon on the Class A
to D Notes (Class B to D when no PDL is recorded). When the Class A
to D Notes are redeemed, the cash reserve covers interest of the
most Senior Class of Notes outstanding.

However, Moody's notes that the transaction features some credit
weaknesses such as (i) a revolving period of 3 years; (ii) loans
with a revolving nature and the ability to redraw amounts up to a
defined credit limit for up to 3 years; (iii) a slow amortization
of the portfolio leading to loan maturities of up to 15 years; and
(iv) limited liquidity to pay the interest on Classes E and F Notes
for two to three months at the beginning of the amortization
period.

Moody's analysis focused, among other factors, on (1) an evaluation
of the underlying portfolio of financing agreements; (2) the
macroeconomic environment; (3) historical performance information;
(4) the credit enhancement provided by subordination and cash
reserve; (5) the liquidity support available in the transaction
through the reserve fund; and (6) the legal and structural
integrity of the transaction.

MAIN MODEL ASSUMPTIONS

Moody's determined the portfolio lifetime expected defaults of
7.0%, a recovery rate of 15.0% and Aaa portfolio credit enhancement
of 25.0% related to the receivables. The expected defaults and
recoveries capture its expectations of performance considering the
current economic outlook, while the PCE captures the loss Moody's
expects the portfolio to suffer in the event of a severe recession
scenario. Expected defaults, recoveries and PCE are parameters used
by Moody's to calibrate its lognormal portfolio loss distribution
curve and to associate a probability with each potential future
loss scenario in the ABSROM cash flow model to rate Consumer ABS.

Portfolio expected defaults of 7.0% are in line with the EMEA
Consumer ABS average and are based on Moody's assessment of the
lifetime expectation for the pool taking into account (i) historic
performance of the loan book of the originator, (ii) benchmark
transactions, and (iii) other qualitative considerations, such as
the revolving nature of some of the loans in the pool.

Portfolio expected recoveries of 15.0% are in line with the EMEA
Consumer ABS average and are based on Moody's assessment of the
lifetime expectation for the pool taking into account (i) historic
performance of the loan book of the originator, (ii) benchmark
transactions, and (iii) other qualitative considerations.

PCE of 25.0% is slightly higher than the EMEA Consumer ABS average
and is based on (i) Moody's assessment of the borrower credit, (ii)
the replenishment period of the transaction and (iii) the revolving
feature combined with a long maturity of some loan products. The
PCE level of 25.0% results in an implied coefficient of variation
("CoV") of 39%.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in March
2019.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS:

Factors that may cause an upgrade of the ratings include
significantly better than expected performance of the pool together
with an increase in credit enhancement of Notes.

Factors that may cause a downgrade of the ratings include a decline
in the overall performance of the portfolio and a meaningful
deterioration of the credit profile of the originator and servicer
Qander Consumer Finance B.V.


PLT VII FINANCE: Fitch Assigns 'B(EXP)' Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has assigned PLT VII Finance B.V. a Long-Term Issuer
Default Rating of 'B(EXP)'. The Outlook is Stable. The senior
secured notes issued by PLT VII Finance S.a r.l. and benefiting
from guarantees from Bite's key operating subsidiaries have been
assigned a 'B+(EXP)'/'RR3' rating. A full list of ratings is at the
end of this commentary. Final ratings are contingent on the receipt
of final documents in line with the information received for the
expected ratings.

Bite is a mobile-centric operator in Latvia and Lithuania with
growing broadband/pay-TV segments and substantial advertised-based
free-to-air TV revenues across the Baltics. The company's funds
from operations gross leverage is high at above 6x at end-2020 and
is likely to be maintained in the 5x-6x range with no expected debt
prepayments. There is some deleveraging capacity driven by
continuing single-digit EBITDA and FFO growth but this may be
temporarily stalled by the impact of COVID-19. Pre-dividend free
cash flow generation is strong on the back of sustainably low
capex, with the pre-dividend FCF margin close to double-digits.

KEY RATING DRIVERS

Sustainable Market Positions: Bite has been able to successfully
defend its service revenue share in Lativa and Lithuania when the
market was in both decline and growth phases, and Fitch expects it
to retain its strong market positions. Bite's mobile service
revenue market share was stable at around 33% in Lithuania and 25%
in Latvia in 2017-2019, by the company's estimates. Bite operates
in three-player markets with the same set of mobile competitors in
Latvia and Lithuania.

Rational Competition: The lack of any significant mobile virtual
network operators and clear brand positioning of each of the
network operators helps sustain a degree of service
differentiation, reducing direct price competition. Bite positions
itself as an innovative operator with an emphasis on a higher-
average revenue per user customer base, while Tele2 pursues a
strategy of perceived price leadership and Telia-controlled
operators focus on exploiting their status of an established
incumbent with superior network quality.

Full Bundling Capabilities: The acquisition of cable-centric
Baltcom in February 2020 made Bite fully bundled-enabled in Latvia,
while in Lithuania the company can rely on regulated access to the
incumbent's fixed network to complement its mobile and pay-TV
propositions. Both markets have been spared aggressive fixed-mobile
bundling competition so far, but Fitch views an ability to offer
bundled services as a strategic advantage that can help maintain
Bite's competitive position.

A wide array of offered services also provides significant
cross-selling opportunities, including between mobile and pay-TV
customers.

COVID-19 Impact: Fitch expects Bite to retain substantial
deleveraging capacity that may allow it to keep leverage under
control, even if there are temporary GDP pressures in its markets
and low growth or modest revenue/EBITDA decline. Fitch projects the
COVID-19 impact will be disruptive across the region, leading to
(-6.9%) yoy GDP decline in Latvia in 2020 but followed by a 5.2%
yoy GDP recovery in 2021.

Telecoms and digital revenues are likely to be reasonably resilient
but not totally immune to the disposable income pressures that are
likely to accompany a GDP contraction. The impact is likely to be
much more negative in the media segment, with free-to-air TV
revenues being the most vulnerable - the decline in this
sub-segment is likely to exceed the GDP dip. However, this segment
accounted for only 20% of total service revenues, and its negative
contribution is likely to be manageable.

Stagnant FTA TV: Fitch believes Bite's advertising revenue from FTA
TV channels will be supported by its leading market share (at
around 60% of TV advertising revenue across the Baltics area in
2019, according to the company's estimates) and its focus on local
language content, as there is only limited competition in local
language content production. However, Fitch believes traditional
advertising is in structural decline globally, and Fitch expects
ad-based revenues to trail GDP growth over the medium term, and be
more susceptible to the negative COVID-19-related impact.

Pay-TV Diversification: Fitch views Bite's pay-TV segment as
complimentary to the existing mobile/broadband franchise enabling
cross-selling, bundling and churn reduction opportunities. The
company's existing franchise and continuing expansion in the pay-TV
segment also provides it with a degree of business diversification,
allows it to better monetise its content library and spread new
content acquisition costs between FTA and pay-TV platforms.

Sustainably Low Capex: Fitch expects Bite to remain sustainably
capex efficient, with capex/revenue ratio at around 10% on average
in the medium term. The key contributors to capex efficiency are
comfortable spectrum portfolio in Latvia and Lithuania, with
overall spectrum per head of population over twice the EU average
in both countries and benign geographic topology in its area of
operations, with no extremely densely populated cities and no wide
white spots.

Network JV Improves Efficiency: The company's network sharing joint
venture with Tele2 covering Latvia and Lithuania should help
further rationalise capex allocation and protect against an
excessive capex spike from a 5G roll-out. Joint network management
should mitigate network quality-based competition with Tele2, but
also improve competitive standing compared with the fixed-line
incumbent's networks as the JV is seeking to achieve superior
network coverage and quality across both countries.

5G Cost Likely Manageable. Retrospectively low spectrum costs
compared with the EU average, and a long extension period for 4G
spectrum instalment payments suggest that the forthcoming 5G
auctions for 700MHz spectrum in Lithuania and Latvia and 3.5 GHz in
Lithuania may lead to only a moderate spike in capex. Bite already
holds a significant 150MHz of spectrum in the 3.5 GHz band in
Latvia, which if allowed to be used for 5G may also reduce
additional investment requirements.

Strong FCF Generation. Fitch projects Bite to sustain high
pre-dividend FCF generation in the high single-digit percentage of
reported revenue supported by above 30% EBITDA margin on service
revenues, low taxes typical for the Baltics area, which it projects
to remain below 3% of service revenues on average, and moderate
capex, at around 10% of revenue on average.

Inflated Leverage. Fitch expects Bite's leverage to remain high,
estimated at 6.1x on a FFO gross basis in 2020, with a reduction to
5.6x-5.2x in 2021-2023 and low-to-mid single digit EBITDA and FFO
growth (all metrics pro-forma for the Baltcom acquisition in
February 2020). Fitch assumes that most of the company's
pre-dividend FCF will be paid as dividends as there are few
significant restrictions on shareholder distributions. Only the
minimum amounts necessary for operations will be retained on the
company's balance sheet.

Deleveraging may be stalled by bolt-on acquisitions in the
company's current geographic franchise. Any significant
acquisitions will be treated as event risk, but it would expect
dividends to be curtailed to allow for deleveraging to below 5x
reported gross debt/EBITDA (on an IFRS16 basis) within a reasonable
timeframe, in line with the company's internal financial policy.

Fitch does not analytically reverse the sale of customer equipment
receivables, as equipment sales are viewed as a non-core segment
that would not have any impact on service revenue from the existing
subscriber base, while the company has significant flexibility to
mitigate any negative impact on its working capital, in its view.

DERIVATION SUMMARY

Bite has significantly smaller absolute scale than most equally
rated mobile and telecoms peers but is larger than Melita Bidco
Limited (B/Stable) that operates in a small but highly consolidated
domestic market of Malta. Bite benefits from operating in less
congested three-player mobile markets with no significant MVNO
presence, similar to Wind Hellas in Greece (its B/Negative reflects
weak FCF generation).

Bite is highly cash flow generative, with its pre-dividend FCF
margin in the high single-digit territory, which is potentially
consistent with a higher rating category, but it is more leveraged
than most of its higher-rated peers, such as Telenet Group Holdings
N.V. (BB-/Stable) or eircom Holdings (Ireland) Limited (B+/Stable).
It is less leveraged than Tele Columbus AG (B-/Stable) but the
latter benefits from higher margins and more stable and longer-term
customer relationships typical for the cable industry.

KEY ASSUMPTIONS

  - Low single-digit mobile service revenue growth in 2021-2023;

  - FTA TV advertising revenue growth trailing expected GDP growth
across the Baltics region, with 2020 contraction in the mid-teen
percentage territory yoy;

  - EBITDA margin modestly improving to around 33% of service
revenues (from the existing operating franchise) in 2022-2023;

  - Taxes at below 3% of service revenue on average;

  - Capex at around 10% of revenue on average in 2021-2023;

  - Around EUR 10 million of cash on the balance sheet to cover
operating needs, with all extra cash up-streamed as dividends.

KEY RECOVERY RATING ASSUMPTIONS

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

  - Fitch has assumed a 10% administrative claim.

  - Post-restructuring going concern EBITDA is estimated at EUR 92
million, which is approximately 20% lower than its 2020 EBITDA
forecast, pro-forma for the acquisition of Baltcom.

  - An enterprise value multiple of 5.0x is used to calculate a
post-reorganisation valuation.

Fitch calculates the recovery prospects for the senior secured
instruments at 59%, assuming the super senior secured revolving
credit facility (RCF) of EUR50 million is fully drawn, which
implies a one-notch uplift of the ratings relative to the company's
IDR to arrive at 'B+' with a Recovery Rating of 'RR3' for the
company's EUR620 million of senior secured debt.

RATING SENSITIVITIES

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

  - FFO gross leverage sustainably below 5x

  - Continued strong pre-dividend FCF generation with competitive
positions in Latvia and Lithuania maintained

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

  - FFO gross leverage above 6x on a sustained basis

  - A significant reduction in pre-dividend FCF generation driven
by competitive or regulatory challenges

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

Fitch views Bite's liquidity as satisfactory. It is primarily in
the form of its EUR50 million RCF. This is likely to be sufficient
to address operating needs and cover small bolt-on acquisitions but
a larger acquisition may require more advanced liquidity management
that would take into account lower shareholder distributions.
Refinancing risk is limited over the next few years as all debt
instruments including both floating and fixed rate senior secured
notes mature in 2025.

ESG Commentary

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3. ESG issues are credit-neutral
or have only a minimal credit impact on the entity, either due to
their nature or to the way in which they are being managed by the
entity.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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

ESG CONSIDERATIONS

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




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

TAP SGPS: Portugal Agrees to Buy David Neeleman's Indirect Stake
----------------------------------------------------------------
Henrique Almeida at Bloomberg News reports that the Portuguese
government agreed to buy David Neeleman's indirect stake in TAP
SGPS SA as part of a plan to provide a rescue loan to save the
airline.

"This allows us to unblock the loan and avoid the bankruptcy of a
company that's essential for the country," Bloomberg quotes Finance
Minister Joao Leao as saying at a press conference in Lisbon on
July 2.

Like other carriers, TAP had to halt most of its operations due to
the coronavirus outbreak, Bloomberg notes.  The European Commission
has already approved a EUR1.2 billion (US$1.3 billion) rescue loan
to help the airline meet immediate liquidity needs, Bloomberg
states.

According to Bloomberg, Secretary of State for Treasury Miguel Cruz
said the government will increase its holding in Lisbon-based TAP
to 72.5% from 50%.  Mr. Cruz, as cited by Bloomberg, said it will
pay a total of EUR55 million as part of the agreement, including
the purchase of economic rights and voting rights in the carrier.

Airline entrepreneur Neeleman and Portuguese investor Humberto
Pedrosa currently jointly own 45% of TAP through the Atlantic
Gateway venture, Bloomberg discloses.  Mr. Pedrosa will remain a
shareholder in TAP with a 22.5% stake, and the airline's workers
will continue holding 5%, Bloomberg states.

According to Bloomberg, Infrastructure Minister Pedro Nuno Santos
said on June 10 the rescue loan has several conditions that need to
be approved by TAP's private shareholders before it can go ahead,
Bloomberg recounts.  The government had previously said it could
nationalize TAP if the private shareholders failed to reach an
agreement, Bloomberg notes.  Mr. Santos, as cited by Bloomberg,
said on July 2 it will now seek a new chief executive officer for
TAP.

Finance Minister Leao said on June 17 TAP will carry out a
restructuring plan after getting the rescue loan and the conversion
of part of the state's loan into shares may be considered,
Bloomberg relates.

Before the coronavirus pandemic brought global travel to a halt,
TAP had been modernizing its fleet and adding new destinations in
the Americas, Bloomberg discloses.

The airline's first-quarter loss widened to EUR395 million from a
loss of EUR107 million a year earlier as the number of passengers
fell 12.6%, Bloomberg states. TAP's net financial debt was EUR1.13
billion at the end of the first quarter, Bloomberg notes.




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

EURASIA DRILLING: Fitch Affirms BB LongTerm IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Russia-based Eurasia Drilling Company's
Long-Term Issuer Default Rating at 'BB+' with Stable Outlook.

Fitch expects EDC's revenue and earnings to be only moderately
affected by the COVID-19 pandemic, lower oil prices and Russia's
OPEC+'s commitments, as Russian oil producers aim to maintain
fairly stable drilling volumes.

Fitch expects EDC's leverage to increase in 2020, but to remain in
line with its rating guidelines, which is reflected in the Stable
Outlook. The rating takes into account a conservative financial
profile and stability of operations compared with international
peers', but also a fairly narrow range of provided services and a
concentrated customer base in PJSC Lukoil (BBB+/Stable) at 81% of
total revenue in 2019.

EDC is Russia's largest independent drilling company, accounting
for around 20% of domestic onshore drilling volumes.

KEY RATING DRIVERS

Moderately Falling Revenues: Russian oil producers have adjusted
their drilling and capex plans for 2020 due to lower oil prices and
Russia's OPEC+ commitment but the revisions have been fairly
moderate. PJSC Lukoil has revised down its capex budget for 2020 by
around 15% from its original guidance, but it should remain broadly
stable yoy. Rosneft Oil Company and PJSC Gazprom Neft (BBB/Stable)
expect their capex budgets to be down around 10% and 20% yoy,
respectively. Fitch expects EDC's total revenue to fall around 10%
yoy, mainly due to lower drilling volumes, but to recover from
2021.

Resilient Onshore Drilling Business: In 2019, EDC's onshore meters
drilled increased 4% yoy, and 4M20 drilling volumes increased a
further 11% yoy. While Fitch expects drilling volumes to fall
throughout the rest of the year the decline should be moderate as
Russian oil producers will aim to at least maintain their
production capacity. Fitch also expects weaker profitability in
2020 due to the lower volumes, lack of rate indexation and
coronavirus-related measures (such as quarantine arrangements for
personnel). Fitch expects profitability to normalise from 2021.

Caspian Sea Business Not Fully Recovered: Fitch assumes that EDC's
offshore operations in the Caspian Sea, where full-cycle oil
production costs are higher versus Russian onshore and where EDC
works with both Russian and international clients, will continue to
under-perform. EDC has four jack-up rigs in the landlocked Caspian
Sea, all of which are currently being deployed; however, only one
rig is employed on a long-term basis. Fitch assumes EDC's revenue
from the offshore segment to average USD150 million in 2020-2023,
compared with almost USD190 million in 2019.

Conservative Financial Profile: EDC has significantly reduced its
debt and forex exposure over 2016-2019. At end-2019 its funds from
operation net leverage was low at 0.8x. In 2020, EDC has resumed
dividend payments, which Fitch assumes will average USD100 million
p.a. Fitch also expects EDC to increase capex to USD150
million-USD200 million over 2020-2023 compared with an average of
around USD140 million in 2016-2019 to modernise its rig fleet.
Fitch expects EDC to generate moderately negative free cash flow
(FCF, after dividends) in 2020 and to be broadly FCF-neutral in
2021-2023. Fitch forecasts EDC's net leverage to remain
conservative at 1.4x in 2020 and at or below 1.2x in 2021-2023.

Resilience to Low Oil Prices: The Russian oil industry has proved
broadly resilient to the substantial volatility in oil prices over
the past several years due to a supportive domestic tax system
(with the state bearing most of the price risk), low production
costs and a floating exchange-rate regime. During the 2015-2016
downturn Russian oilfield services companies generally performed
better than international peers, especially those exposed to
international offshore operations, many of which have seen a
dramatic decline in both day rates and volumes.

Longer-Term Outlook Favourable: The longer-term outlook for the oil
drilling sector is favourable. The importance of horizontal
drilling, which generates higher margins, will continue to
increase. Russian oil companies will require more complex wells
with significant horizontal sections for hydraulic fracturing and
higher oil flow rates at conventional wells as the production base
becomes more depleted, and greenfields become more geologically
complex.

Concentrated Customer Base: EDC's customer base remains
concentrated. In 2019, Lukoil accounted for 81% of EDC's revenue,
followed by PJSC Gazprom Neft (11%) and Rosneft Oil Company (8%).
The high customer concentration stems from the long-term
cooperation between Lukoil and EDC, the latter itself a spin-off
from Lukoil in 2004, and the structure of the Russian oil industry,
with a significant share of in-house drilling services. This is
mitigated by EDC's position and reputation in the domestic drilling
market and limited alternatives for reliable drilling contractors.

Limited Impact from Sanctions: The Russian oil industry has been
the target of western technological sanctions, but those have been
mainly limited to hard-to-recover tight oil reserves and deep
offshore, where Russian oil companies have not been very active.
The technological sanctions have had a limited impact on Russian
oil producers and EDC. While new, more stringent sanctions cannot
be completely ruled out, Fitch does not see them as likely given
Russia's large share in global oil production.

DERIVATION SUMMARY

EDC is among Russia's largest onshore oil drilling companies, which
also provides onshore work-over, sidetracking services and offshore
drilling on the Caspian Sea shelf. EDC's financial profile is
stronger and the company is less exposed to the volatility in the
oil and gas markets than international peers, such as Precision
Drilling Corporation (B+/Negative), Nabors Industries, Inc
(B-/Rating Watch Negative) and PGS ASA (CCC).

On the other hand, EDC has exposure to a single country with a weak
operating environment, high reliance on a single customer Lukoil,
and provides a narrow range of oilfield services. Its closest
Fitch-rated Russian peer is JSC Investgeoservis (B-/Stable), which
has a lower rating because of weaker liquidity, smaller scale and
higher leverage.

KEY ASSUMPTIONS

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

  - Onshore drilling volumes down 10% yoy in 2020, up 5% in 2021
and 2022 before stabilising in 2023

  - Stagnant effective rates in 2020-2021; up 3% indexation in 2022
and 2023;

  - Revenue from the offshore drilling at USD150 million p.a. over
2020-2023

  - EBITDA margin at 23% in 2020 and on average 27% in 2021-2023

  - Effective cash tax rate 40% in 2020-2023

  - USD/RUB at 70 in 2020, 69 in 2021, 69 in 2022, and 67 in 2023

  - Capex at USD150 million - USD200 million p.a. in 2020-2023

  - Dividends at around USD100 million p.a. in 2020-2023

RATING SENSITIVITIES

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

  - An upgrade is unlikely unless EDC sees significant improvement
in customer diversification.

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

  - FFO net leverage above 2.0x on a sustained basis.

  - Negative pre-dividend FCF on a sustained basis.

  - Substantial deterioration in drilling volumes or tariffs.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: At end-2019, EDC's cash of RUB26.8 billion
fully covered short-term debt of RUB10.7 billion (RUB6billion of
which was refinanced in 1H20), and Fitch-projected negative FCF of
around RUB4 billion. EDC also has uncommitted credit lines with
Russian banks for USD600 million and has access to the Russian bond
market. Fitch assesses EDC's liquidity score at around 2x for 2020
and 2021.

EDC has fully repaid its outstanding Eurobond. Its debt portfolio
is now predominantly rouble-denominated with low forex risk.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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

ESG CONSIDERATIONS

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


PIK GROUP: Fitch Affirms BB- LongTerm IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating of
Russian homebuilder PJSC PIK Group at 'BB-'. The Outlook is
Stable.

The affirmation reflects the group's leading market position in
Russia and a favourable mortgage market environment that supports
demand for the group's affordable residential units. The rating is
constrained by the group's concentrated portfolio and lack of
geographical diversification.

The group is exposed to the lucrative Moscow and the Moscow region
residential markets but it is focused the mass-market segment,
which is considered vulnerable during a crisis period.

KEY RATING DRIVERS

Exposure to Mass Market: PIK's business profile is characterised by
its large scale relative to other Fitch-rated developers. The group
primarily specialises in the construction of affordable mass market
residential areas using PIK-produced prefabricated parts. Fitch
views PIK's huge exposure to the mass-market segment as a negative,
as it is vulnerable to macroeconomic swings. Fitch expects sales to
be constrained in 2020 as a result of lower demand and a
deterioration in consumer spending.

Concentrated Portfolio: More than 85% of PIK's projects (by square
metres; sqm) are in the Moscow metropolitan area. Nevertheless, the
group is mainly exposed to the most lucrative residential market in
Russia - Moscow and the Moscow region, which is characterised by
higher disposable income and more sustainable demand that should
smooth the group's sales risk given the currently negative market
environment.

Leading Market Position: PIK group is the largest developer in the
highly-fragmented Russian homebuilding market. As at beginning of
June 2020, PIK was building more than six million sqm, which is
almost two times higher than its closest peer, PSJC LSR Group. The
group benefits from its strong market share, solid record and
experience. PIK is a pioneer in the Russian residential market,
which implemented in April 2020 an online mortgage service in
cooperation with VTB Bank, its shareholder. The purchase of a flat
could now be fully executed via online services that negate the
effect of strict lockdown rules introduced in Moscow during
mid-April and mid-May 2020.

Government Support of Residential Market: The group's customers
primarily rely on the mortgage market. PIK's share of
mortgage-backed sales was 66% in 2019. To support the homebuilding
industry during the pandemic and negative economic environment, the
government has introduced several initiatives, one of which is
subsidising the mortgage interest rate. Fitch assumes that the
volume of mortgage loans will remain high within PIK's sales and
the state's support of the market should help the company to keep
its cash generation and smooth its current deterioration of sales
in 2020.

The Central Bank of Russia has recently decreased the refinancing
rate even further to 4.5%, which could result in a lower mortgage
interest rate. Furthermore, it has been announced that the limit of
mortgage loans under the subsidised interest rate of 6.5% has been
increased to RUB12 million from RUB8 million.

Subordination of Senior Debt: The group's debt at operating
companies increased in 2019 and will continue to rise while senior
debt at the parent and sub-holding level will decrease, which is in
line with its expectations. This could lead to future subordination
of the senior debt of parent and sub-holding.

Rating Approach to Escrow Cash: The 2019 legislation states that a
home purchaser's cash deposit, presale proceeds, is placed in
escrow account with a bank. The same bank provides a development
loan to the project's special purpose vehicle (SPV) to fund up to
95% of the project's cost. The development loan and escrowed cash
is specific to a given project. Upon completion, escrowed cash is
released to PIK for the project SPV to repay its development loan
and for PIK to realise its profit.

Development loan banks transfer the benefit of the escrowed cash in
the form of lower interest rates for the development loan according
to certain criteria, but the cash is not released until project
completion. The escrowed cash, which cannot be withdrawn by the
home purchaser, is nettable against the SPV's development loan.

It is the development loan provider's responsibility to ensure
completion of the project. If there are problems the development
loan provider can on-sell the project to another contractor or PIK
can complete it at a loss; or the purchaser gets its money back and
the development loan bank is left with the project. Fitch nets
escrowed cash with relevant project development loans drawn, given
that escrowed cash is foremost dedicated to the development loan.
Fitch will not treat net excess escrowed cash as nettable against
debt elsewhere in the group.

DERIVATION SUMMARY

PIK Group is the largest residential developer in Russia. The
company is well-positioned relative to peers, which include PJSC
LSR Group (B+/Stable), Miller Homes Group Holdings plc
(BB-/Stable), Consus Real Estate AG (B-/Stable) and Taylor Wimpey.
The operating and regulation environments differ across EMEA,
making a direct comparison difficult.

PIK Group's size is much bigger than LSR, Miller Homes and Consus,
but comparable to that of Taylor Wimpey. PIK Group had a stronger
financial profile with FFO gross leverage of 2.6x as at end-2019
versus over 6x of Consus and more than 3x of LSR. Due to a change
of local regulation, Fitch expects that gross debt of the group
will increase. However, taking into account netting of escrowed
cash with relevant development loans, the FFO gross leverage will
be about 2.5x in 2020-2022, while FFO net leverage will be about
1.5x. The forecast gross leverage would be generally commensurate
with its 'BB' mid-points as per Fitch's EMEA Housebuilding
Navigator and will be better than LSR's leverage metrics.

KEY ASSUMPTIONS

  - Constrained revenue growth of 6% in 2020-2021. Further
conservative revenue growth of 3% in 2022-2023

  - EBITDA margin of about 21%-22%

  - No M&A

  - Dividends payment of RUB15 billion per year

RATING SENSITIVITIES

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

  - Fitch-defined FFO gross leverage sustainably below 1.0x
(netting escrow cash with relevant project development debt)

  - Sustainable improvement of financial metrics leading to EBIT
margin above 25%

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

  - Fitch-defined FFO gross leverage sustainably above 2.0x
(netting escrow cash with relevant project development debt)

  - Deterioration of market environment leading to a decrease of
EBIT margin below 15%

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

Strong Liquidity: Fitch-defined readily available cash of RUB61
billion as at end-2019 was more than sufficient to cover upcoming
debt repayments totaling RUB28 billion within the next 12 months.
The group has sufficient headroom to cover expected negative FCF.
The company is not exposed to FX risk, as all debt is raised in
Russian roubles.

CRITERIA VARIATION

Fitch's Corporate Rating Criteria details how escrowed cash would
be treated as restricted cash but, after the recent Russian
homebuilder legislation changes, this escrowed cash is not on PIK's
balance sheet. Fitch will net off escrow cash with the relevant SPV
development loan, although the deposited cash in escrow is not
legally owned by PIK and therefore not on its balance sheet.
However, any surplus escrowed cash is ignored because the cash,
which cannot be withdrawn by the customer, first repays the
development loan debt when the project is completed. Fitch assesses
the risk of non-project completion as low. In accordance with Fitch
Ratings' policies, the issuer appealed and provided additional
information to Fitch Ratings that resulted in a rating action that
is different than the original rating committee outcome.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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

ESG CONSIDERATIONS

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


TRANSMASHHOLDING JSC: Fitch Affirms BB LongTerm IDRs
----------------------------------------------------
Fitch Ratings has affirmed Russia's leading rolling stock
manufacturer JSC Transmashholding's Long-Term Foreign- and
Local-Currency Issuer Default Ratings at 'BB'. The Outlook is
Stable.

The affirmation reflects expected sustainable operating performance
with moderate influence from the COVID-19 pandemic. It also
reflects continuing support provided by the group's leading market
position, good and long-term relationship with key customers and
moderate leverage metrics.

The Stable Outlook reflects its expectation that stable demand for
rolling stock from Russian Railways, one of TMH's key customers,
and ongoing modernisation of the public transport infrastructure in
Moscow region will underpin its order book and provides revenue
visibility over the medium-term.

KEY RATING DRIVERS

Vulnerable Market Environment: A high obsolescence rate of the
domestic railway fleet is the key driver of ongoing demand for TMH
and supports its order book. Nevertheless, operating performance is
largely dependent on the capex decision of few key operators, which
are mostly state-owned. The current negative market environment
directly affects these operators' investment programmes, which
Fitch expects to be scaled back for 2020 and, potentially, 2021. As
a result, Fitch expects mid-single-digit revenue growth in 2020,
supported by a firm pre-crisis order book.

Moderate Influence on Profitability: TMH benefits from a cost
structure that is mostly exposed to the Russian rouble, which makes
production costs lower than foreign competitors. It helps support
operating profitability and TMH maintain its leading local market
position. Nevertheless, due to the pandemic Fitch expects the funds
from operations margin will fall to 8%-9% in 2020 from 10%-12%
reported over the last two years.

Manageable Leverage: Growing FFO generation allowed TMH to reduce
its FFO gross and net leverage to 1.9x and 1.4x, respectively, at
end-2019. The expected squeeze of FFO generation in 2020 will
however drive gross and net leverage metrics to 3.0x and 2.0x,
respectively, by end-2020, which is, however, below its sensitivity
for a negative rating action of 2.5x on a net basis. Fitch expects
TMH to be able to manage its leverage in the medium term following
an expected rebound in FFO generation from 2021. Fitch forecast
that FFO leverage on gross and net basis will be around 2.0x-2.5x
and 1.5x-2.0x, respectively, for 2021-2023.

Volatile FCF: Fitch forecasts free cash flow to turn negative in
2020 due to pressure on FFO in 2020, moderate capex, and
conservatively forecast dividend pay-outs of about RUB10 billion.
However, TMH has flexibility to suspend dividend to support the
group's liquidity as it has done during 2014-2017, which in turn
would keep FCF positive in 2020. Fitch forecasts that constrained
FFO generation will be reflected in neutral FCF generation during
2021-2022.

Strong Market Position: TMH benefits from solid market positions as
a leading producer of locomotives, passenger rail cars and metro
cars in Russia. This, together with its successful long-term
cooperation with key customers and high capex in manufacturing
facilities, acts as significant barriers to entry in TMH's core
markets. TMH's leading market position provides the group with
stable demand from its key customers over the long-term.

Limited Business Profile: Its business profile is characterised by
a limited customer base, less diversified geographical exposure
than higher-rated peers' and a low share of service revenue. TMH is
primarily focused on Russia and CIS while it looks to enter new
markets, particularly Egypt, South Africa and Argentina. Export
revenue contributed up to 10% of turnover over the last four
years.

ESG Influence: TMH has an ESG Relevance Score of '4' for 'Group
Structure' due to significant related-party transactions. TMH has
operational links with Locotech-Service, which remains outside its
consolidation scope. LS acts as a subcontractor of TMH, providing
repair and aftermarket services to TMH's customers.  The share of
LS in TMH's revenue was 3% in 2019. In addition, TMH provides
guarantees for another related party's loan to the amount of
RUB11.7 billion as at end-2019. Both factors are relevant to the
rating in conjunction with other factors.

DERIVATION SUMMARY

TMH is well-positioned relative to Russian and foreign
manufacturing peers, such as Borets International Limited
(B+/Negative), JSC HMS Group (B+/Stable), Arcelik (BB/Stable),
Allison Transmission Holdings, Inc. (BB/Stable), Hillenbrand, Inc
(BB+/Negative), GEA Group Aktiengesellschaft (BBB-/Stable), CNH
Industrial N.V. (BBB-/Stable) and General Electric Company
(BBB/Stable).

Higher scale of operations and lower reported leverage metrics in
comparison to Borets' and HMS Group's support TMH's ratings.
However, it is smaller and less diversified by geography and
customer base versus CNH, General Electric, GEA Group and Arcelik,
which constrain TMH's rating. Mitigating factors are strong local
market positons, as well as long-term and good relationship with
key customers that provide TMH with a sustainable order book.

TMH's leverage metrics compare well with that of higher-rated CNH,
Hillenbrand and General Electric with a reported FFO net leverage
of 1.4x at end-2019. However, in comparison to TMH some peers have
stronger FCF margins with Allison Transmission's 15%-20% and
Hillenbrand's 5%-10%. TMH's ratings in addition are capped by a low
share of aftermarket services revenue while GEA Group's business
profile is supported by a significant share of aftermarket service
revenue of about 30%.

KEY ASSUMPTIONS

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

  - Constrained revenue growth in 2020 in mid-single digit
    percentages. Low single-digit rise for 2021-2023

  - Decrease of EBITDA margin in 2020 to about 11%, before
    rebounding in 2021-2023 to 12%-13%

  - Moderate capex at 4% of revenue until 2023

  - Dividends pay-out of RUB10 billion in 2020; about RUB7
    billion - RUB8 billion per annum until 2023

RATING SENSITIVITIES

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

  - Improved geographic and customer diversification outside CIS
    countries

  - FCF margin sustained above 2%

  - FFO net leverage sustained below 1.0x

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

  - Negative FCF margin on sustained basis

  - FFO net leverage sustained above 2.5x

  - FFO interest coverage sustained below 4.0x

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: As at beginning of June 2020 Fitch-defined readily
available cash was about RUB50 billion. Available undrawn, albeit
uncommitted, bank facilities with maturity of more than one year
were RUB15 billion, which should support debt repayment. Short-term
debt repayment was RUB63 billion and forecast negative FCF over the
short-term is about RUB2.7 billion.

TMH has proven access to debt capital markets with its issue of a
RUB10 billion bond in May 2020. In addition, it has good long-term
relationship with its key creditors and has usually successfully
refinanced its short-term maturities.

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

TMH has an ESG Relevance Score of '4' for Group Structure

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




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

SAS AB: Moody's Cuts CFR to Caa2 & Alters Outlook to Negative
-------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of SAS AB to Caa2 from Caa1 and the probability of default
rating to Ca-PD from Caa2-PD. Concurrently, the agency has
confirmed the backed senior unsecured MTN rating at (P)Caa2 and the
backed subordinate rating at Caa3 issued by SAS
Denmark-Norway-Sweden. The outlook 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 action reflects the
impact on SAS AB and the deterioration in credit quality it has
triggered, given its exposure to the global airline industry, which
has left it vulnerable to travel restrictions and sensitivity to
consumer demand and sentiment.

The downgrade of the probability of default rating by two notches
to Ca-PD from Caa2-PD was prompted by SAS AB's announcement on June
30, 2020 of a recapitalization plan that includes amongst other the
conversion of SEK 2250 million of senior unsecured fixed rate bonds
due November 2022 (unrated) into common shares as well as the
conversion of SEK1500 million of subordinated perpetual floating
rate capital securities (unrated) into common shares. The
conversion would be executed at 81.3 % of face value for the senior
unsecured notes and at 70.8% of face value for the senior unsecured
notes. The subscription price would be SEK 1.89 per share, a
material discount to the current share price of SAS AB of
approximately SEK 7.7 per share. The conversion of these two
instruments is subject to a bondholders and hybrid holders meeting
to be held on 25 July 2020. A quorum of 50% is required for both
instruments and an 80% and 2/3 majority vote for the senior
unsecured bonds and the subordinated securities. The completion of
these two conversions would constitute a limited default under
Moody's methodologies.

The downgrade of the corporate family rating to Caa2 from Caa1, a
one notch downgrade in comparison to the two notch downgrade of the
probability of default rating reflects a relatively high recovery
expectation at the corporate family level as evidenced by the
relatively low amount of debt being part of the distressed exchange
and the recovery expectation on the specific instruments that are
part of the recapitalization plan.

The confirmation of the backed senior unsecured rating at (P)Caa2
and of the backed subordinate rating at Caa3 reflects the absence
of these instruments from the proposed recapitalization plan for
now. However, Moody's sees a high execution risk on the proposed
conversion of the two debt instruments that are part of the
recapitalization plan due to the high quorum of votes needed to
accept the conversion and the fact that not all public debt
instruments in SAS' capital structure are subject to a conversion
proposal.

The negative outlook on the ratings reflects (i) the execution risk
on the conversion of the two debt instruments, and (ii) the risk
that recovery expectations could be lowered and rated instruments
haircut increased if the recapitalization plan is extended to
further instruments in the capital structure upon a negative vote
from senior unsecured and subordinated notes holders.

LIQUIDITY

SAS AB had SEK4.2 billion of cash & marketable securities on
balance sheet as per April 30, 2020 and access to approximately
SEK2.9 billion of unused credit lines as well as a SEK 3.3 billion
Swedish and Danish government backed revolving credit facility
signed on May 5, 2020.

Moody's estimates that SAS AB has sufficient liquidity to continue
operating for the next two quarters assuming no to very little
flight activity but does not have enough financial flexibility to
fund the comprehensive restructuring programme announced on April
28 (lay-off of 5000 Full time employees or close to 50% of SAS'
total workforce) even taking into account the reception of
additional credit facilities from the various governments that have
provided support so far.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

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

The company's commitments to reduce its carbon dioxide emissions
are more ambitious than for most other network peers. SAS targets a
25% reduction in net CO2 emissions by 2025 (compared to 2005
levels), and a potential 50% reduction in net CO2 emissions by
2030.

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

Absent a material equity injection from SAS' shareholders to
support SAS' liquidity requirements throughout the coronavirus
outbreak and to fund the comprehensive restructuring programme SAS
has announced Moody's does not see any positive rating pressure on
the current ratings. Positive rating pressure would build over time
if gross leverage as measured by Moody's adjusted debt/EBITDA would
drop sustainably below 6.0x. A strengthening of SAS' liquidity
profile would also be a key pre-condition for an upgrade.

The ratings of SAS could be lowered further if the issuer fails to
secure sufficient funding to stabilise the group's liquidity
profile and / or if SAS is not successful in securing the approval
of both its debt holders for the conversion of the debt instruments
into equity and of its shareholders for the equity measures
included in its recapitalization plan.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Passenger
Airline Industry published in April 2018.




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

ARDONAGH MIDCO 3: Moody's Affirms B3 CFR, Outlook Stable
--------------------------------------------------------
Moody's Investors Service has affirmed Ardonagh Midco 3 plc's B3
corporate family rating and B3-PD probability of default rating.
The outlook for Ardonagh remains stable.

The action follows the planned refinancing of all Ardonagh's
existing credit facilities (including the EUR70 million drawn on
the revolving credit facility) with a new senior secured term loan
facility of EUR1,575 million (equivalent) and the issuance of $500
million senior PIK toggle notes. In addition, the new debt proceeds
will fund the acquisition of Nevada 4 Midco 1 Limited (holding
company of Bravo Investments Holdings Limited), Nevada 5 Topco
Limited (holding company of Arachas Topco Limited) and Bennetts.

RATINGS RATIONALE

Moody's has affirmed Ardonagh's B3 CFR, reflecting the group's very
high financial leverage, and significant exceptional cash outflows
relating to ongoing transformation projects, partly offset by its
(1) solid market position, (2) good earnings diversity stemming
from a broad range of products and services across the insurance
value chain, and (3) good EBITDA margins.

The refinancing and PIK toggle note issuance will push Ardonagh's
debt up to EUR1,975 billion. However, Moody's expects the addition
of Bravo Investments Holdings Limited and Arachas Topco as well as
the acquisition of Bennetts to contribute EUR53 million to the
group's pro forma EBITDA while offering solid cost savings and
synergy prospects. As a result, post transaction, Moody's expects
Moody's adjusted pro forma leverage to increase to around 8.4x in
December 2020.

The outlook remains stable because the agency expects financial
leverage to decline below the 8x downgrade trigger within the next
18 months, as EBITDA grows supported by organic growth, additional
cost savings and reduction of exceptional costs. As this happens,
the group will be in a strong position to start generating positive
net cash flows. In addition, the group negotiated a committed
capex, acquisition and re-organization facility of EUR300 million,
and a revolving credit facility of EUR191.5 million that are
supporting the group's liquidity position and strengthening its
financial flexibility.

Once the existing credit facilities (including the revolver) are
repaid, Moody's will withdraw the existing instrument ratings.

RATING DRIVERS

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

Moody's says the following factors, based on reported figures,
could lead to a ratings upgrade: (1) positive free cash flows
consistently above 3% of debt; (2) gross debt-to-EBITDA
consistently below 6.5x with EBITDA-CAPEX coverage of interest
sustainably above 2.0x; and (3) Moody's adjusted EBITDA
consistently surpassing GBP125 million with EBITDA margins above
25%. All based on reported figures.

The following factors could lead to a downgrade on Ardonagh: (1)
adjusted gross debt-to-EBITDA remaining above 8.0x; (2) a weakening
in the group's liquidity position or cash flows generation; and/or
(3) EBITDA before exceptional items, excluding run-rate cost
savings below GBP100 million with EBITDA margins below 23%.

The principal methodology used in these ratings was Insurance
Brokers and Service Companies published in June 2018.


BRITISH STEEL: Jingye in Last-Ditch Attempt to Buy French Factory
-----------------------------------------------------------------
Michael Pooler and David Keohane at The Financial Times report that
British Steel's Chinese owner is making a last-ditch attempt to
convince French officials to allow it to buy a factory in the
country, at a time of growing unease about the Asian nation's
presence in European industry.

Jingye Group rescued the UK's second-largest steelmaker from
bankruptcy in March following months of uncertainty, saving more
than 3,000 jobs with a promise to invest GBP1.2 billion in the
business, the FT recounts.

According to the FT, the deal was supposed to include a facility in
north-eastern France that makes rail track, but a parallel sale
process for the Hayange site was opened last year by a French court
amid misgivings in Paris over the future of an asset it deems of
national importance.

The Hayange mill has a workforce of about 450 and supplies France's
state-owned railway operator SNCF among others.  It processes basic
metal made at British Steel's plant in Scunthorpe, England, and was
profitable before the company fell insolvent, the FT says.

An auction for the rail factory is in the final straits with final
bids due by mid-July and a conclusion expected by the end of the
month, according to several people close to the process, the FT
discloses.  Jingye is among a handful of bidders that include
industry giant ArcelorMittal and Liberty Steel, led by the
acquisitive British businessman Sanjeev Gupta, the FT states.

Other interested parties include German steelmaker Saarstahl and
Greybull Capital, the private investment company under whose
ownership British Steel entered liquidation last year, the FT
notes.

France's economy ministry also wants the successful buyer to take
over a separate struggling steelworks, called Ascoval, which has an
agreement to supply Hayange, the FT relays.

It is owned by Greybull, which is open to selling the plant should
it fail to win the Hayange deal, the FT relays, citing people aware
of the matter.

According to the FT, two people with knowledge of the bid said
Jingye has offered to invest a total of EUR88 million into the two
facilities, with EUR60 million earmarked for Hayange over five
years, as well as taking on debt tied to Ascoval.


CONSTRUCTION PARTNERSHIP: Owed GBP11-Mil. at Time of Collapse
-------------------------------------------------------------
Business Sale reports that Lancashire-based contractor Construction
Partnership UK owed close to GBP11 million to creditors when it
collapsed in April, citing a new report from administrators Duff &
Phelps.

According to Business Sale, the company's administration was blamed
on the impact of coronavirus and "contractual issues" following the
loss of several contracts.

This included The Rise, a GBP23.4 million mixed-use development in
Liverpool, that led to GBP3 million in bad debt, Business Sale
states.  The contract was due to be the firm's biggest ever job but
work stopped last year when developer Primesite Development ran
into funding issues, Business Sale notes.

When work halted, Construction Partnership UK had completed work
worth GBP7 million, Business Sale relays.  According to Business
Sale, at this point, Duff & Phelps says, "the company began to
experience delays in payments and processing of certificates".
Attempts to find a new partner to complete the contract in a joint
venture failed as losses were too great, Business Sale states.

According to Duff & Phelps, the firm was hit by a combination of
late and missed payments, overrun on projects and increasing
materials costs, Business Sale relates.  These issues were
exacerbated sites being forced to close due to COVID-19 lockdown,
Business Sale discloses.  At the time of its collapse, Construction
Partnership UK owed creditors GBP10.9 million, including debts of
GBP9.2 million to trade creditors and GBP570,900 to HMRC, Business
Sale notes.

All 94 staff were placed on furlough in March before being made
redundant in May, Business Sale recounts.  Former employees have
made preferential claims totalling GBP73,100 against the company,
but Duff & Phelps say it is uncertain whether they will be paid,
Business Sale notes.

The administrators, as cited by Business Sale, said that some
repayment to trade creditors was likely, but did not say how much
of the GBP9.2 million would be paid.


PINNACLE BIDCO: Moody's Confirms B3 CFR, Outlook Negative
---------------------------------------------------------
Moody's Investors Service has confirmed the corporate family rating
of B3 and probability of default rating of B3-PD assigned to
Pinnacle Bidco plc. Concurrently, Moody's has confirmed the B3
rating on the GBP430 million senior secured notes due 2025 and the
Ba3 rating on the GBP95 million super senior revolving credit
facility due 2024. The outlook on all ratings has been changed to
negative, from ratings under review. Its rating action concludes
the review for downgrade initiated on April 1, 2020.

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 PureGym's adequate liquidity and
efficient operating model 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. The company's rating is
supported by PureGym's competitive and flexible offering and by
user-friendly technology, that should help PureGym to recover
quicker than peers. The company also benefits from an element of
geographic diversification, although the current crisis is global
and unprecedented in nature.

Moody's forecasts an 8.5% contraction of GDP in the euro area and
10.1% in the UK this year and recessions in many countries around
the world, which will likely curb consumer confidence. The way the
budget gym segment will react to such a severe economic condition
remains untested. However, Moody's expects the value positioning to
provide a degree of insulation to negative macroeconomic
developments compared with the broader fitness and leisure market
because some individuals may decide to tradedown towards value
offerings from midmarket or premium gyms.

PureGym was initially hit by the government decisions to close gyms
in all countries where the company operates in March, including the
UK, Denmark, Switzerland and Poland. Since then, PureGym's Swiss
business returned back to operation in May, while Denmark and
Poland successfully re-open in mid-June. PureGym has been focussing
on cost reduction and has benefitted from the government schemes to
compensate for payroll of the staff as well as a business rates
holiday in the UK. Thanks to the mitigating measures the weekly
cash burn during the lockdown has been limited to around GBP4m per
week which helped PureGym to sustain sufficient liquidity for
re-opening.

The company's business has a high degree of operating leverage, as
the operating expenses of running a gym are quite stable and do not
correlate to the level of attendance. This means that even a 20% or
30% lower member level post-crisis would result in a
disproportionate reduction in the company's margins and cash flow
generation. More positively, Moody's understands that both in
Switzerland and Denmark the membership has already exceeded 90% of
2019 level within several weeks of opening, indicating a solid
demand.

Moody's base case assumptions are that the company's gyms in the UK
will be re-opened before end of July, but that member levels will
recover only gradually and will remain below its pre-crisis levels
by 5%-15% over the next 12-18 months. However, there are also risks
of more challenging downside scenarios with the severity and
duration of the pandemic, potential government restrictions and
consumer sentiment all uncertain. Moody's analysis assumes
approximately 75% lower company adjusted EBITDA in 2020 and circa
15%-20% in 2021 compared to the 2019 pro forma level. Moody's
estimates that Moody's-adjusted debt/EBITDA could temporarily reach
12x in 2020 before reducing to circa 7x-7.5x in 2021 -- this is
compared to around 6.5x leverage in 2019 pro-form for Fitness World
acquisition. Moody's also highlights there are inherent
uncertainties and variables involved in modeling profitability and
cash flows in times of great uncertainty.

Moody's considers certain governance considerations related to
PureGym. The company is controlled by Leonard Green & Partners, as
is common for private equity sponsored deals, has a high tolerance
for leverage and appetite for debt-funded acquisition.

LIQUIDITY

PureGym's liquidity is adequate, although it may be challenged if
the gyms were to close again later this year. The company drew
around 40% under its GBP95 million SSRCF and had approximately
GBP100 million cash on balance sheet plus GBP10 million available
on overdraft at end of June. The SSRCF has one springing covenant
that is tested when the facility is over 40% drawn. The senior
secured leverage covenant is set at net debt of 7.7x Run Rate
Adjusted EBITDA and would have been breached, although PureGym is
expected to maintain the drawing below the testing level.

STRUCTURAL CONSIDERATIONS

The capital structure comprises GBP430 million of senior secured
notes due 2025, a GBP95 million SSRCF due 2024 and GBP334 million
of shareholder loan that Moody's treats as equity. The B3
instrument rating on the notes is in line with the company's CFR
while the Ba3 instrument rating on the RCF reflects its super
senior ranking ahead of the notes.

RATIONALE FOR NEGATIVE OUTLOOK:

The negative outlook reflects the continued uncertain prospects for
fitness industry, with risks of continued closures or sustained
decline in member demand 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 PureGym is on
track to strengthen its liquidity and 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, government confinement measures
are lifted and leisure activity returns to more normal levels. Over
time, Moody's could upgrade the company's rating if (1) the company
continues returns to positive organic revenue and EBITDA growth;
(2) Moody's adjusted Debt/EBITDA reduces sustainably below 6.5x;
(3) EBITA / Interest improves towards 1.5x; and (4) the company
maintains an adequate liquidity profile while it continues to scale
up its operations.

Moody's could downgrade PureGym's ratings if the gym closure
extends through the summer months or member levels fail to recover
in line with Moody's expectations, leading to further deterioration
in credit metrics and liquidity. Over the longer term a negative
rating pressure would arise if: (1) Moody's adjusted gross leverage
is sustained above 7.5x; (2) EBITA /interest sustainably below 1x;
or (3) if there is any material and sustained decline in number of
members or in membership yield.

PRINCIPAL METHODOLOGY

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

LIST OF AFFECTED RATINGS:

Confirmations (Previously on review for downgrade):

Issuer: Pinnacle Bidco plc

Probability of Default Rating, Confirmed at B3-PD

LT Corporate Family Rating, Confirmed at B3

Senior Secured Bank Credit Facility, Confirmed at Ba3

Backed Senior Secured Regular Bond/Debenture, Confirmed at B3

Outlook Actions:

Issuer: Pinnacle Bidco plc

Outlook, Changed to Negative from Ratings Under Review

PROFILE

Founded in 2009, PureGym is the leading gym operator in the UK, by
number of members and gyms. Pro-forma for the planned acquisition
of Fitness World, PureGym's revenue in 2019 was around GBP442
million and company-adjusted EBITDA of circa GBP131 million (before
IFRS 16 impact). The company achieved significant growth through
organic gym rollouts and acquisitions. The company derives more
than 90% of its revenue from membership fees, with the remainder
coming from nutrition and sport goods sales, joining fees, day pass
income, administration fees and other. Private equity sponsor
Leonard Green & Partners holds 80% of the company and the remaining
20% is owned by management.


VIRGIN ATLANTIC: Virgin Group Commits to Provide GBP200MM Funding
-----------------------------------------------------------------
Tanya Powley at The Financial Times reports that Sir Richard
Branson's Virgin Group has committed GBP200 million of immediate
funding for Virgin Atlantic as the grounded airline races to secure
a GBP1 billion rescue package early this month.

According to the FT, the commitment will help bolster the
struggling airline's cash reserves in the coming months in the face
of a slow recovery in international air travel that has been
decimated by the coronavirus pandemic.

While Virgin Group is planning to provide about GBP200 million in
cash now, according to people close to the process, additional
shareholder support of about GBP400 million has also been
committed, the FT notes.

This will come from Delta Air Lines, which has a 49% stake in the
airline, as well as Virgin Group -- the majority shareholder with a
51% holding, the FT states.

The GBP400 million is likely to be in the form of deferred payments
such as brand fees and shared IT and back-office platforms,
according to the FT.  The deal, the FT says, will be structured to
ensure no change in Virgin Atlantic's current shareholding.

The cash injection comes as Virgin Atlantic is attempting to
finalize a multipronged refinancing package of about GBP1 billion,
the FT relays.

According to the FT, on top of the GBP600 million from existing
shareholders, another key part of the airline's rescue package is
expected to come from private investors, who will provide about
GBP250 million in debt funding.

Over the weekend, US private equity group Centerbridge Partners
re-entered talks with the airline -- alongside hedge funds Davidson
Kempner Capital Management and Elliott, the FT relays, citing
people close to the talks.

Virgin Atlantic had previously identified a GBP750 million funding
requirement but the total value of the package it is trying to
secure is now about GBP1 billion, the FT recounts.  According to
the FT, discussions are expected to roll into next week, with the
hope that a package will be finalized by early July.

The remaining components of the rescue package includes
negotiations with credit card providers, which are withholding
about GBP250 million of funds, and talks with aircraft lessors and
regulators over deferment of fees, the FT states.



                           *********


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

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

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

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