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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

          Thursday, July 9, 2020, Vol. 21, No. 137

                           Headlines



F R A N C E

CMA CGM: Moody's Alters Outlook on B2 CFR to Negative


G E R M A N Y

PACCOR HOLDINGS: S&P Alters Outlook to Negative & Affirms 'B' ICR
WIRECARD AG: 100+ Investors Express Interest in Acquiring Assets


I R E L A N D

ARMADA EURO I: Moody's Confirms B2 Rating on Class F Notes
CVC CORDATUS VII: Fitch Lowers Class F-R Debt to 'B-sf'
CVC CORDATUS XVI: Fitch Puts B- Rating on F Debt on Watch Neg.
OZLME IV: Moody's Confirms B2 Rating on Class F Notes
PENTA CLO 5: Fitch Keeps B- Rating on F Debt on Watch Negative

[*] Fitch Takes Action on 14 Tranches From Four EMEA CLOs


L U X E M B O U R G

LSF11 SKYSCRAPER: Fitch Assigns 'B+(EXP)' IDR, Outlook Stable


N E T H E R L A N D S

JDE PEET: Moody's Assigns Ba1 CFR, Outlook Positive
PLT VII FINANCE: Moody's Assigns B2 CFR, Outlook Stable
PLT VII FINANCE: S&P Assigns Preliminary 'B' ICR, Outlook Stable
WERELDHAVE NV: Moody's Withdraws (P)Ba2 Rating on EMTN Program


R O M A N I A

BLUE AIR: Bucharest Municipal Court Okays Bankruptcy Protection


S W I T Z E R L A N D

CEVA LOGISTICS: Moody's Alters Outlook on Caa1 CFR to Stable
VERISURE HOLDING: Moody's Rates New EUR1BB Secured Term Loan 'B1'


U N I T E D   K I N G D O M

CONVIVIALITY: Grant Thornton Fined GBP3 Million Over Audit
FIRSTGROUP: Expresses Going Concern Doubt Due to Coronavirus
JOE MEDIA: Bought Out of Administration by Greencastle Capital

                           - - - - -


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F R A N C E
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CMA CGM: Moody's Alters Outlook on B2 CFR to Negative
-----------------------------------------------------
Moody's Investors Service has confirmed the B2 corporate family
rating and the B2-PD probability of default rating of CMA CGM S.A.,
as well as the Caa1 senior unsecured rating. The outlook on all
ratings changed to negative from ratings under review.

This rating action concludes the review for downgrade process,
which was initiated on April 1, 2020.

Its rating action balances the improved liquidity of CMA following
the signing of EUR1.05 billion new Term Loan, of which 70% is
guaranteed by the Government of France (Aa2 Stable), with the risks
attached to the threat of a second wave of the pandemic endangering
fragile transportation demand. Still, positive signs are emerging
following unprecedented capacity adjustments by the CMA as well as
the industry, keeping freight rates above last year's levels
despite a significant decrease in the bunker price. Should the
shipping industry continue its robust performance trend despite a
fragile macroeconomic environment, reflected in adequate
profitability and credit metrics, a stabilisation of the rating
outlook is possible.

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.

RATINGS RATIONALE

On May 13, 2020, CMA signed a new senior unsecured Term Loan of
EUR1.05 billion ($1.15 billion) with a consortium of banks, of
which 70% is guaranteed by the Government of France. The loan will
be pari passu with the existing senior unsecured revolving credit
facilities and senior unsecured bonds. It was subsequently drawn on
May 19, 2020, of which EUR200 million was used to prepay the EUR725
million senior unsecured bond maturing in January 2021, and EUR300
million injected as equity into CEVA Logistics AG (Caa1 Stable).
Moody's understands the remainder, around EUR550 million, will be
used to cover short term debt maturities as well as absorbing any
COVID-19 related impact on the business. The initiative is a clear
credit positive, as it will alleviate short term pressure on the
company's liquidity, one of the main drivers to placing the ratings
under review for a downgrade.

Although the industry has demonstrated very disciplined behaviour
so far in terms of adjusting capacity to the decreased demand,
medium term prospects remain uncertain, especially factoring in the
looming threat of a second wave of the pandemic. Even though
freight rates have remained stable since the coronavirus outbreak,
there is a risk they will react to the record low bunker price, due
to the usual time lag. Should this materialize, 2020 could prove
difficult for the company as well as the industry. Should stable
freight rates, however, be sustained over the next couple of
quarters, Moody's expects CMA to be able to generate positive
Moody's-adjusted free cash flow, yielding optionality when it comes
to adjusting its capital structure.

Moody's understands that CEVA's need for additional liquidity
support has been reduced, supported by the EUR300 million debt
repayment with proceeds from CMA's latest equity injection and
considering its cash position per end of Q1. A longer-term
improvement of CEVA's credit quality requires a sustained
turnaround of free cash flow generation to positive levels.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook balances the current negative industry outlook
Moody's has on the container shipping segment, with CMA's credit
positive initiatives to improve the liquidity profile. Depending on
how the market environment develops, with main drivers being the
evolution of freight rates, Moody's 12-18-month forward view
encapsulates quite a wide band when it comes to credit metric
projections; debt/EBITDA between 4.8x -- 5.6x and FFO interest
coverage between 2.6x -- 3.2x. Also impacting these projections is
the company's financial policy when it comes to refinancing vs
retiring debt coming due.

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

A stabilization of the outlook could happen if the current market
development proves to be sustainable, yielding prospects of CMA
achieving the lower part of its projection band. This would also
imply a capital structure that can yield a debt/EBITDA below 5.0x
and FFO interest coverage at or above 3.0x through the cycle. Any
positive ratings pressure would require the company maintaining or
improving the current liquidity profile.

Negative ratings pressure could arise if the company's debt/EBITDA
ratio increased above 5.5 and FFO interest coverage decreased below
2.0x and stayed at such levels for a prolonged period.
Additionally, sustained negative free cash flow and a weakened
liquidity profile would cause negative pressure on ratings.

PRINCIPAL METHODOLOGY

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

LIST OF AFFECTED RATINGS:

Confirmations:

Issuer: CMA CGM S.A.

Probability of Default Rating, Confirmed at B2-PD

LT Corporate Family Rating, Confirmed at B2

Senior Unsecured Regular Bond/Debenture, Confirmed at Caa1

Outlook Actions:

Issuer: CMA CGM S.A.

Outlook, Changed To Negative From Ratings Under Review

COMPANY PROFILE

CMA CGM is the fourth-largest provider of global container shipping
services. The company operates primarily in the international
containerized maritime transportation of goods, but its activities
also include container terminal operations, intermodal, inland
transport and logistics. For the full year of 2019, the company
reported revenue of $30.3 billion and EBITDA of $3.8 billion.




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G E R M A N Y
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PACCOR HOLDINGS: S&P Alters Outlook to Negative & Affirms 'B' ICR
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term issuer rating on
Germany-based Paccor Holdings GmbH, and revised the outlook to
negative.

S&P said, "We are affirming our 'B' issue rating and '3' recovery
rating on the EUR50 million senior secured revolving credit
facility (RCF) and the EUR317 million term loan B. We are also
affirming our 'CCC+' issue rating and '6' recovery rating on the
EUR70 million second lien facility."

S&P expects revenues to remain flat in 2020.

This is because the full-year contribution of EDV (now Paccor
Iberia, acquired in June 2019) should offset the decline in
like-for-like (LFL) sales caused by the COVID-19 pandemic. S&P
said, "We expect Paccor Iberia to generate sales of EUR36 million
in 2020 (from EUR29 million in 2019) because of new contract wins.
We anticipate that government actions such as social distancing
measures and lockdowns will result in a 2% decline in LFL revenues
in 2020. We expect the decline in revenues to be modest given that
Paccor's end-markets (mostly the food industry) are fairly
resilient. We believe that Paccor's food-service and
vending-machine segments will bear the brunt of COVID-19-related
disruption, but they only account for 13% of Paccor sales."

S&P said, "We expect a significant improvement in EBITDA and
leverage in 2020. Paccor's 2019 S&P Global Ratings-adjusted EBITDA
of EUR61 million was well below the EUR87 million we had
anticipated. This reflected higher-than-expected extraordinary
costs mostly related to restructuring initiatives, advisors, M&A,
and efficiency projects.

"In 2020 we expect EBITDA to recover to EUR72 million as
extraordinary costs decline materially. We anticipate a reduction
in debt to EBITDA to 7.0x by December 2020 (8.1x at year-end 2019).
This assumes that the group will repay around EUR15 million of
drawdowns under its EUR50 million revolving credit facility (RCF)
in 2020."

S&P believes that FOCF generation will remain weak during 2020.

Paccor's low profitability (S&P Global Ratings-adjusted EBITDA
margins below 11%) has undermined cash generation in the last two
years. FOCF was negative at EUR10 million in 2018 and positive
EUR11 million in 2019. S&P expects positive FOCF of EUR7 million in
2020 and EUR11 million in 2021.

FOCF should improve from 2021 onward driven by operating efficiency
initiatives like the footprint reorganization project.

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

The negative outlook indicates that S&P could lower its ratings on
Paccor in the next 12 months if the group underperformed its EBITDA
or FOCF expectations, or if debt to EBITDA remained above 7.0x.

S&P would consider lowering its rating on Paccor if:

-- The group generates lower-than-expected EBITDA or FOCF, for
example because of higher extraordinary costs or more severe or
prolonged pandemic-related effects; or

-- Leverage remained above 7.0x on a sustained basis.

S&P could revise the outlook to stable if:

-- Leverage declined to below 7.0x on a sustained basis; and

-- FOCF remained positive on a sustained basis.


WIRECARD AG: 100+ Investors Express Interest in Acquiring Assets
----------------------------------------------------------------
Tom Sims and Hans Seidenstuecker at Reuters report that Wirecard's
administrator said on July 7 that more than 100 investors have
expressed interest in buying the collapsed German payments firm's
core business and holdings.

The firm filed for insolvency last month owing creditors EUR4
billion (US$4.5 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.

"The aim is to find timely investor solutions in the interest of
creditors, employees and customers," Reuters quotes administrator
Michael Jaffe as saying in a statement after a creditors meeting.

The potential sale of Wirecard North America's assets was most
advanced, Mr. Jaffe added, with investment bank Moelis & Company
already mandated to conduct a sale, Reuters notes.

According to Reuters, sale processes are also being initiated for
other international holdings as well as Wirecard's core business,
he said, adding that most of its customers were being constructive
and showing an interest in a speedy sale process.

Mr. Jaffe, as cited by Reuters, said potential investors would soon
be able to start due diligence procedures in virtual data rooms.

Reuters reported on July 6 that Mr. Jaffe was likely to raise only
about EUR400-EUR500 million for Wirecard's assets, citing one
person close to the matter.  This would be about 10% of the total
creditors are owed, Reuters states.




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I R E L A N D
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ARMADA EURO I: Moody's Confirms B2 Rating on Class F Notes
----------------------------------------------------------
Moody's Investors Service confirmed the ratings on the following
notes issued by Armada Euro CLO I Designated Activity Company:

EUR16,000,000 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

EUR23,200,000 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

EUR10,200,000 Class F Senior Secured Deferrable Floating Rate Notes
due 2030, 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:

EUR211,000,000 Class A Senior Secured Floating Rate Notes due 2030,
Affirmed Aaa (sf); previously on Sep 21, 2017 Definitive Rating
Assigned Aaa (sf)

EUR49,200,000 Class B Senior Secured Floating Rate Notes due 2030,
Affirmed Aa2 (sf); previously on Sep 21, 2017 Definitive Rating
Assigned Aa2 (sf)

EUR24,100,000 Class C Senior Secured Deferrable Floating Rate Notes
due 2030, Affirmed A2 (sf); previously on Sep 21, 2017 Definitive
Rating Assigned A2 (sf)

Armada Euro CLO I Designated Activity Company, originally issued in
September 2017 is a collateralised loan obligation (CLO) backed by
a portfolio of mostly high-yield senior secured European loans. The
portfolio is managed by Brigade Capital Europe Management LLP. The
transaction's reinvestment period will end in October 2021.

RATINGS RATIONALE

The 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 has
deteriorated as reflected in the increase in Weighted Average
Rating Factor (WARF), in the defaulted par amount in the portfolio
and in the proportion of obligations from issuers with ratings of
Caa1 or lower.

The trustee reported WARF worsened by about 11.0% to 3189 [1] from
2872 [2] in January 2020 and is now significantly above the
reported covenant of 2989 [1].

The trustee reported securities with default probability ratings of
Caa1 or lower have increased to 4.01 % [1] from 1.66% [2] in
January 2020.

In addition, the over-collateralisation (OC) levels have weakened
across the capital structure. According to the trustee report dated
June 2020 the Class A/B, Class C, Class D, Class E and Class F OC
ratios are reported at 137.3% [1], 125.6% [1], 118.9% [1], 110.4%
[1], 107.0%[1] compared to January 2020 levels of 138.9%[2],
127.1%[2], 120.4%[2], 111.7%[2] and 108.3%[2] , respectively.

Moody's notes that none of the OC tests are currently in breach and
the transaction remains in compliance with the following collateral
quality tests: Diversity Score, Weighted Average Recovery Rate
(WARR), Weighted Average Spread (WAS) and Weighted Average Life
(WAL).

Despite the increase in the WARF and the par erosion, 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, 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 EUR 358.8 million,
a weighted average default probability of 25.1% (consistent with a
WARF of 3160 over a weighted average life of 5.23 years), a
weighted average recovery rate upon default of 46.2% for a Aaa
liability target rating, a diversity score of 50 and a weighted
average spread of 3.53%.

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.

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

Methodology Underlying the Rating Action:

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

Counterparty Exposure:

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

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

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the note,
in light of uncertainty about credit conditions in the general
economy. In particular, the length and severity of the economic and
credit shock precipitated by the global coronavirus pandemic will
have a significant impact on the performance of the securities. CLO
notes' performance may also be impacted either positively or
negatively by: (1) the manager's investment strategy and behaviour;
(2) divergence in the legal interpretation of CDO documentation by
different transactional parties because of embedded ambiguities;
and (3) the additional expected loss associated with hedging
agreements in this transaction which may also impact the ratings
negatively.

Additional uncertainty about performance is due to the following:

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

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

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


CVC CORDATUS VII: Fitch Lowers Class F-R Debt to 'B-sf'
-------------------------------------------------------
Fitch Ratings has downgraded one tranche, maintained the Rating
Watch Negative on the junior tranches and affirmed the rest for CVC
Cordatus Loan Fund VII DAC.

CVC Cordatus Loan Fund VII DAC

  - Class A-R XS1865597204; LT AAAsf; Affirmed

  - Class B-1-R XS1865597543; LT AAsf; Affirmed

  - Class B-2-R XS1865597972; LT AAsf; Affirmed

  - Class C-R XS1865598350; LT Asf; Affirmed

  - Class D-R XS1865598608; LT BBB-sf; Affirmed

  - Class E-R XS1865598947; LT BB-sf; Downgrade  

  - Class F-R XS1865598863; LT B-sf; Rating Watch Maintained

TRANSACTION SUMMARY

CVC Cordatus Loan Fund VII DAC is a cash flow collateralised loan
obligation mostly comprising senior secured obligations. The
transaction is in its reinvestment period, which is scheduled to
end in March 2023, and the portfolio is actively managed by CVC
Credit Partners Group Limited.

KEY RATING DRIVERS

Portfolio Performance Deteriorates

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. As per the trustee report dated
June 3, 2020, the aggregate collateral balance is below par by
1.20% and the transaction has one defaulted asset comprising 1.1%
of the portfolio balance. The trustee reported Fitch weighted
average rating factor test is 32.90, which increased marginally to
33.52 as per Fitch's updated calculation on June 27.

The Fitch-calculated 'CCC' category or below assets represented
6.43% of the portfolio against the limit of 7.5%. As per the
trustee report, all Fitch-related collateral quality tests,
portfolio profile tests and coverage tests are passing.

Asset Credit Quality

''B'/'B-' Category Portfolio Credit Quality: Fitch assesses the
average credit quality of obligors to be in the 'B'/'B-' category.
The Fitch calculated WARF of the portfolio is 33.52. After applying
the coronavirus stress, the WARF would increase to 36.80.

Asset Security

High Recovery Expectations: Senior secured obligations comprise
97.7% of the portfolio. Fitch views the recovery prospects for
these assets as more favourable than for second-lien, unsecured and
mezzanine assets. The Fitch-calculated weighted average recovery
rate is 64.81%.

Portfolio Composition

The portfolio is well diversified across obligors, countries and
industries. The top 10 obligors' concentration is 18.3% against the
limit of 23% and no obligor represent more than 2.26% of the
portfolio balance. The Fitch-calculated top industry and top three
industries represent 13.30% and 37.28% of the portfolio balance,
respectively, against limits of 17.5% and 40%.

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 transactions were modelled using the current portfolio
and the current portfolio with a coronavirus sensitivity analysis
applied. Fitch's coronavirus sensitivity analysis was based on the
stable interest rate scenario but include the front-, mid- and
back-loaded default timing scenarios as outlined in Fitch's
criteria.

The model-implied ratings for class E and F are one notch below the
current ratings. The committee deviated from the model-implied
rating on class F as the downgrade was driven by the back-loaded
default timing scenario only and the limited margin of safety at
the current rating level. These ratings are in line with the
majority of Fitch-rated EMEA CLOs. The RWN was maintained for both
notes as they show shortfalls in the coronavirus sensitivity
scenario.

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 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 a better-than-expected portfolio credit
quality and deal performance, leading to higher notes' credit
enhancement and excess spread available to cover for losses on the
remaining portfolio.

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

Downgrades may occur if the build-up of 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 coronavirus-related disruption 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 views of its Leveraged
Finance team.

Coronavirus Baseline Scenario Impact

Fitch maintained the RWN on the class E and F notes as a result of
a sensitivity analysis it ran in light of the coronavirus pandemic.
The agency notched down the ratings for all assets with corporate
issuers with a Negative Outlook regardless of the sectors. This
represents 27.9% of the portfolio. The Stable Outlooks of the other
tranches' ratings reflect that the respective tranche's ratings can
withstand the coronavirus baseline sensitivity analysis. Fitch will
resolve the rating watch status over the coming months as and when
it observes rating actions on the underlying loans.

Coronavirus Downside Scenario

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

BEST/WORST CASE RATING SCENARIO

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

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

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

DATA ADEQUACY

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

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

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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


CVC CORDATUS XVI: Fitch Puts B- Rating on F Debt on Watch Neg.
--------------------------------------------------------------
Fitch Ratings has placed two tranches of CVC Cordatus Loan Fund XVI
DAC on Rating Watch Negative and affirmed the other tranches.

CVC Cordatus Loan Fund XVI DAC

  - Class A-1 XS2078646093; LT AAAsf; Affirmed

  - Class A-2 XS2078646689; LT AAAsf; Affirmed

  - Class B XS2078647497; LT AAsf; Affirmed

  - Class C-1 XS2078647901; LT Asf; Affirmed

  - Class C-2 XS2078648545; LT Asf; Affirmed

  - Class D XS2078649436; LT BBB-sf; Affirmed

  - Class E XS2078649782; LT BB-sf; Rating Watch On

  - Class F XS2078650103; LT B-sf; Rating Watch On

  - Class X XS2078645954; LT AAAsf; Affirmed

TRANSACTION SUMMARY

The transaction is a cash flow CLO mostly comprising senior secured
obligations. The transaction is still in its reinvestment period,
which is scheduled to end in June 2024, and is actively managed by
the collateral manager.

KEY RATING DRIVERS

Coronavirus Sensitivity Analysis

Fitch placed two tranches on RWN and revised the Outlook on one to
Negative as a result of a sensitivity analysis it ran in light of
the coronavirus pandemic. The agency notched down the ratings for
all assets with corporate issuers with a Negative Outlook
regardless of the sectors. Fitch assumed these assets will be
downgraded by one notch (floor at 'CCC'). The model-implied ratings
for the affected tranches under the coronavirus sensitivity test
are below the current ratings. In Fitch's view, tranches with a
Negative Outlook have a slightly higher resilience than tranches
placed on RWN. Fitch will resolve the RWN over the coming months as
it observes rating actions on the underlying loans.

The affirmations of the class X, A, B and C notes reflect that the
respective tranche's rating can withstand the coronavirus baseline
sensitivity analysis with either a cushion or small shortfall. This
supports the Stable Outlook on these ratings.

Asset Credit Quality

'B' Category 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
increased to 33.71 at June 27, 2020, compared with the
trustee-reported WARF of 32.88.

Asset Security

High Recovery Expectations: Senior secured obligations comprise
97.85% 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
current portfolio is 64.95%.

Portfolio Composition

The portfolios are well diversified across obligors, countries and
industries. The top 10 obligors' concentration is 15.07% and no
obligor represents more than 2.0% of the portfolio balance. By
Fitch's calculation, the largest industry is business services at
16.42% of the portfolio balance, and top three largest industries
at 37.37%.

Portfolio Performance; Surveillance

The transaction is in its reinvestment period and the portfolio is
actively managed by the collateral manager. As of the latest
investor report available the transaction is below targeting par
and all portfolio profile tests, collateral quality tests and
coverage tests were passing except the top 10 obligor
concentration, which is marginally failing. Exposure to assets with
a Fitch-derived rating of 'CCC+' and below (including non-rated
assets) is 4.62% and would increase to 12.29% after applying the
coronavirus stress.

Cash Flow Analysis

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

The model-implied rating for the class E and F notes is one notch
below the current rating. Fitch deviated from the model-implied
rating on the above class as it was driven by the back-loaded
default timing scenario only. The ratings across the capital
structure are in line with the majority of Fitch-rated EMEA CLOs.

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 Stress 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 Stress 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 to
supply and demand due to COVID-19 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 ratings of the class X, A and B notes with
cushions. The class C shows small shortfall while the class D, E
and F notes show sizeable shortfalls.

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.

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

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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


OZLME IV: Moody's Confirms B2 Rating on Class F Notes
-----------------------------------------------------
Moody's Investors Service has confirmed the ratings on the
following notes issued by OZLME IV Designated Activity Company:

EUR23,000,000 Class D Senior Secured Deferrable Floating Rate Notes
due 2032, Confirmed at Baa2 (sf); previously on Jun 3, 2020 Baa2
(sf) Placed Under Review for Possible Downgrade

EUR24,000,000 Class E Senior Secured Deferrable Floating Rate Notes
due 2032, Confirmed at Ba2 (sf); previously on Jun 3, 2020 Ba2 (sf)
Placed Under Review for Possible Downgrade

EUR12,000,000 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:

EUR223,000,000 Class A-1 Senior Secured Floating Rate Notes due
2032, Affirmed Aaa (sf); previously on Aug 1, 2018 Definitive
Rating Assigned Aaa (sf)

EUR25,000,000 Class A-2 Senior Secured Fixed Rate Notes due 2032,
Affirmed Aaa (sf); previously on Aug 1, 2018 Definitive Rating
Assigned Aaa (sf)

EUR37,000,000 Class B Senior Secured Floating Rate Notes due 2032,
Affirmed Aa2 (sf); previously on Aug 1, 2018 Definitive Rating
Assigned Aa2 (sf)

EUR5,250,000 Class C-1 Senior Secured Deferrable Floating Rate
Notes due 2032, Affirmed A2 (sf); previously on Aug 1, 2018
Definitive Rating Assigned A2 (sf)

EUR22,750,000 Class C-2 Senior Secured Deferrable Floating Rate
Notes due 2032, Affirmed A2 (sf); previously on Aug 1, 2018
Definitive Rating Assigned A2 (sf)

OZLME IV DAC., issued in August 2018, is a collateralised loan
obligation (CLO) backed by a portfolio of mostly high-yield senior
secured European loans. The portfolio is managed by Sculptor Europe
Loan Management Limited (previously Och-Ziff Europe Loan Management
Limited). The transaction's reinvestment period will end in October
2022.

RATINGS RATIONALE

The actions conclude the rating review on the Class D, E and F
notes announced on June 3, 2020 which was primarily prompted by a
continuing decline in the credit quality of CLO portfolios as a
result of economic shocks stemming from the coronavirus pandemic.

Stemming from the coronavirus outbreak, the credit quality of the
portfolio has deteriorated as reflected in an increase in Weighted
Average Rating Factor (WARF) and in the proportion of securities
from issuers with ratings of Caa1 or lower. The transaction is
currently failing its WARF test [1] with a Trustee reported WARF of
3371 against a trigger level of 3011, and in addition securities
with default probability ratings of Caa1 or lower currently make up
approximately 22.36% of the underlying portfolio.Trustee-reported
Caa Obligations stand at 6.6% against a 7.5% limit. In addition,
the over-collateralisation (OC) levels have weakened across the
capital structure. According to the Trustee report of June 2020 [1]
the Class A/B, Class C, Class D and Class E OC ratios are reported
at 139.19%, 126.74%, 118.06% and 110.19% compared to Dec 2019 [2]
levels of 140.55%, 127.97%, 119.21% and 111.27% 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
(WARR), Weighted Average Spread (WAS) and Weighted Average Life
(WAL).

Despite the increase in the WARF, Moody's concluded that the
expected losses on all the rated notes remain consistent with their
current ratings following the analysis of 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, C-1
and C-2 notes.

The key model inputs Moody's uses in its analysis, such as par,
WARF, diversity score and the WARR, are based on its published
methodology and could differ from the trustee's reported numbers.
In its base case, Moody's analysed the underlying collateral pool
as having a performing par and principal proceeds balance of EUR
398,805,243, defaults of EUR 1,386,667, a weighted average default
probability of 28.32% (consistent with a WARF of 3368 over a WAL of
6.09 years), a WARR upon default of 45.09% for a Aaa liability
target rating, a diversity score of 57 and a WAS of 3.59%.

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.

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

Methodology Underlying the Rating Action:

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

Counterparty Exposure:

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

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

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

Additional uncertainty about performance is due to the following:

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

  -- 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.

PENTA CLO 5: Fitch Keeps B- Rating on F Debt on Watch Negative
--------------------------------------------------------------
Fitch Ratings has revised the Outlook on one tranche to Negative
from Stable, maintained two tranches on Rating Watch Negative and
affirmed the ratings on seven tranches of Penta CLO 5 DAC.

Penta CLO 5 DAC

  - Class A-1 XS1843447779; LT AAAsf; Affirmed

  - Class A-2 XS1843447340; LT AAAsf; Affirmed

  - Class B-1 XS1843446458; LT AAsf; Affirmed

  - Class B-2 XS1843445997; LT AAsf; Affirmed

  - Class C XS1843444917; LT Asf; Affirmed

  - Class D XS1843444248; LT BBBsf; Affirmed  

  - Class E XS1843444750; LT BBsf; Rating Watch Maintained  

  - Class F XS1843443604; LT B-sf; Rating Watch Maintained

  - Class X XS1843448405; LT AAAsf; Affirmed

TRANSACTION SUMMARY

Penta CLO 5 DAC is a cash flow collateralised loan obligation. The
portfolio is actively managed by Partners Group (UK) Management
Ltd.

KEY RATING DRIVERS

Portfolio Performance Deterioration: The portfolio has experienced
further negative rating migration due to economic effect of the
coronavirus pandemic. Per Fitch calculation, the portfolio's
weighted average rating factor of the portfolio has increased to
35.72 from a reported 34.60 in April 2020 and it is in breach of
its test. The transaction is below par by 17bp (assuming defaulted
assets at zero principal balance). Assets with a Fitch-derived
rating of 'CCC' category or below represent 8.25%, while assets
with a Fitch-derived rating on Outlook Negative is at 15.20% of the
portfolio balance.

'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 8.28% of the portfolio on mayMay 20,
2020, which was over the 7.5% limit.

High Recovery Expectations: 99.6% of the portfolio comprises senior
secured obligations. 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 66.96%.

Portfolio Composition: The portfolio is well diversified across
obligors, countries and industries. Exposure to the top 10 obligors
is 11.67% and no obligor represents more than 3% of the portfolio
balance. The largest industry is business services at 21.77% of the
portfolio balance, followed by healthcare at 15.63%, and computer
and electronics at 9.37%.

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

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

Deviation from Model-Implied Rating: The model-implied ratings for
classes E and F are one and two notches below the current ratings,
respectively. The committee deviated from the model-implied ratings
on both classes as these were driven by the back-loaded default
timing scenario only. These ratings are in line with the majority
of Fitch-rated EMEA CLOs. Both notes were maintained on RWN 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 current ratings
with cushions, except for minor shortfalls with regards to class D
and sizeable shortfalls with classes E and F.

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.


[*] Fitch Takes Action on 14 Tranches From Four EMEA CLOs
---------------------------------------------------------
Fitch Ratings has taken action on 14 tranches from four EMEA CLOs.
The remaining tranches are affirmed with a Stable Outlook.

St. Paul's CLO IX DAC

  - Class A XS1808334632; LT AAAsf; Affirmed

  - Class B XS1808334988; LT AAsf; Affirmed

  - Class C XS1808333584; LT Asf; Affirmed

  - Class D XS1808333824; LT BBBsf; Affirmed  

  - Class E XS1808334392; LT BB-sf; Affirmed

  - Class F XS1808334475; LT B-sf; Affirmed

Grosvenor Place CLO 2015-1 B.V.

  - Class A-1A-RR 39927WBU0; LT AAAsf; Affirmed

  - Class A-1B-RR 39927WBW6; LT AAAsf; Affirmed

  - Class A-2A-RR 39927WBY2; LT AAsf; Affirmed

  - Class A-2B-RR 39927WCA3; LT AAsf; Affirmed

  - Class B-RR 39927WCC9; LT Asf; Affirmed

  - Class C-RR 39927WCE5; LT BBBsf; Affirmed  

  - Class D-RR 39927WCG0; LT BBsf; Affirmed  

  - Class E-RR 39927WCJ4; LT B-sf; Affirmed

St. Paul's CLO II DAC

  - Class A-RRR XS2052176224; LT AAAsf; Affirmed

  - Class B-RRR XS2052176901; LT AAsf; Affirmed

  - Class C-RRR XS2052177461; LT Asf; Affirmed

  - Class D-RRR XS2052178352; LT BBBsf; Rating Watch On  

  - Class E-RRR XS2052179087; LT BB-sf; Downgrade  

  - Class F-RRR XS2052179756; LT B-sf; Rating Watch Maintained

  - Class X XS2052179830; LT AAAsf; Affirmed

St. Paul's CLO VIII DAC

  - Class A XS1718482703; LT AAAsf; Affirmed

  - Class B-1 XS1718483008; LT AAsf; Affirmed

  - Class B-2 XS1718483347; LT AAsf; Affirmed

  - Class C XS1718483776; LT Asf; Affirmed

  - Class D XS1718483933; LT BBBsf; Affirmed  

  - Class E XS1718484238; LT BB-sf; Downgrade  

  - Class F XS1718484584; LT B-sf; Affirmed

TRANSACTION SUMMARY

The four transactions are cash flow CLOs mostly comprising senior
secured obligations. All the transactions are within their
reinvestment period, except Grosvenor Place CLO, which has exited
its reinvestment period in April 2020, and are actively managed by
their collateral managers.

KEY RATING DRIVERS

Coronavirus Baseline Sensitivity Analysis

Fitch took action on several tranches as a result of a sensitivity
analysis it ran in light of the coronavirus pandemic. The agency
notched down the ratings for all assets with corporate issuers with
a Negative Outlook regardless of the sectors. The model-implied
ratings for the affected tranches under the coronavirus sensitivity
test are below the current ratings. Fitch will resolve the rating
watch status over the coming months as and when Fitch observes
rating actions on the underlying loans.

The affirmations of the investment-grade ratings reflect that the
respective tranche's rating can withstand the coronavirus baseline
sensitivity analysis with cushion. This supports the respective
Stable Outlook on these ratings.

Asset Credit Quality

'B'/'B-' Category Portfolio Credit Quality: Fitch assesses the
average credit quality of obligors to be in the 'B'/'B-' category.
The Fitch weighted average rating factor of the current portfolios
range between 36.4 and 37.4. After applying the coronavirus stress,
the Fitch WARF would increase to between 39.9 and 40.8.

Asset Security

High Recovery Expectations: At least 90% of the portfolios comprise
senior secured obligations. Fitch views the recovery prospects for
these assets as more favourable than for second-lien, unsecured and
mezzanine assets. Fitch recovery rate ranges between 64.6% and
65.9%.

Portfolio Composition

The portfolios are well diversified across obligors, countries and
industries. The top 10 obligors' range between 16.9% and 23.5%, and
no obligor represent more than 2.65% of the portfolio balance.

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 transactions were modelled using the current portfolio
and the current portfolio with a coronavirus sensitivity analysis
applied. Fitch's analysis was based on the stable interest rate
scenario but include the front-, mid- and back-loaded default
timing scenarios as outlined in its criteria.

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.

Portfolio Performance; Surveillance

Per Fitch calculation, the Fitch WARF (except for St. Paul's IX)
test and 'CCC' limit test has failed in all four transactions while
all other tests pass. Current defaults based on Fitch calculation
range from 0% to 2.45% of the target par and three transactions are
slightly below target par. Exposure to assets with a Fitch derived
rating of 'CCC+' and below range between 9.8% and 11.9%.

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) 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 the Fitch's stress
portfolio assumed at closing, an upgrade of the notes during the
reinvestment period is unlikely, given the portfolio credit quality
may still deteriorate, not only by natural credit migration, but
also by reinvestments.

After the end of the reinvestment period, upgrades may occur in
case of a better-than-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 the notes' CE following
amortisation does not compensate for a greater loss expectation
than initially assumed due to unexpected high levels 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 also come
under pressure. Fitch will update the sensitivity scenarios in line
with the view of its Leveraged Finance team.

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 this rating action.

DATA ADEQUACY

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

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




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

LSF11 SKYSCRAPER: Fitch Assigns 'B+(EXP)' IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has assigned LSF11 Skyscraper Holdco Sarl, a
Luxembourg-based global leader in performance solutions for the
construction market, an expected Long-Term Issuer Default Rating
(IDR) of 'B+(EXP)' with a Stable Outlook. Fitch has also assigned
Skyscraper's proposed senior secured debt an expected rating of
'BB(EXP)' with a Recovery Rating of 'RR2' (76%).

The ratings reflect the strong positions of the business in
performance solutions for the construction markets, offering a wide
range of products for the infrastructure, commercial and
residential construction markets. Skyscraper's rating is also
supported by adequate geographic diversification, with 135 mixing
facilities and plants across 70 countries, limited customer
concentration and leading market positions in the admixture
business. Fitch regards Skyscraper as having a low investment-grade
business risk.

The ratings also factor in high leverage following the acquisition
of carved-out assets from BASF and potential risks in managing the
company as a standalone entity. Skyscraper is expected to reach
funds from operation (FFO) leverage of 6.0x by end-2020, which
Fitch expects to improve to 5.0x by 2022, as management and Lone
Star implement cost-savings measures. The company has satisfactory
deleveraging potential, but weak interest coverage from the
high-yield debt.

KEY RATING DRIVERS

Diversified Customer Revenue: Skyscraper benefits from a diverse
customer base and adequate geographical spread across Europe,
including Russia, North America, Asia Pacific and the Middle East,
with emerging markets adding growth potential. Revenue comes from
more than 30,000 customers, with the top-10 customers accounting
for only 10% of sales; customers include concrete manufacturers,
infrastructure builders, roofers, wall and flooring installers,
insulators, windmill farms and underground tunnellers.

Mix of Sales Channels: Skyscraper's revenue is tied to construction
through the admixture and construction system business units.
Admixture products are mainly sold under the Master Builders brand,
with direct sales to large cement and concrete customers globally
as well as local sales to ready-mix concrete plants. Construction
systems products are more fragmented, with multiple brands for
different segments and a 40/60 split between direct sales to
professionals and indirect sales through professional and DIY
channels. Direct sales and customer contact through various
channels allow for strong customer reach and facilitate
distribution.

Infrastructure, Maintenance Mitigate Cyclicality: The group
supplies products and solutions for a range of applications across
infrastructure, commercial and residential construction, with
around 35% of sales relating to repair and maintenance. This
mitigates sales volatility from the more cyclical smaller
commercial or infrastructure projects and residential new-build,
which contributes 26% of sales. The remaining sales are for large
infrastructure and non-residential new-builds.

Margins have been stable during both cyclically weaker periods and
times of high oil prices, despite raw-materials cost swings. Fitch
expects this will be important in offsetting the lower construction
demand due to the coronavirus pandemic.

Potential for Higher Profitability: Fitch expects Skyscraper's new
ownership and structure to improve revenue and operating
efficiency. The new owner and management are targeting substantial
savings across manufacturing, procurement, selling, general and
administrative expenses, logistics and R&D. Some efficiency gains
will come from better alignment with Skyscraper's needs, but the
full benefits may not be seen until 2023. Fitch expects these
savings to improve margins, but some delays will not affect
Skyscraper's rating.

Building Products Assessment: Given Skyscraper's history as part of
BASF, Fitch assesses Skyscraper as a hybrid between a chemicals
company, as it produces polyurethanes and epoxy resins, and a
building product manufacturer, similar to other companies that
serve the construction industry with a variety of products and
solutions. Its asset light nature, more typical of a building
product company, coupled with Fitch's estimate that EBITDA coming
from chemicals production is a limited share of the total, means
that the building products approach is more appropriate.

High Leverage Post Buy-Out: Skyscraper will be highly leveraged,
with Fitch expecting FFO leverage of about 6.0x in 2020 following
Lone Star Fund's acquisition, expected in 3Q20, but it has the
ability to deleverage quickly due to its strong free cash flow
generation and the absence of other large investments or
acquisitions. Fitch assesses the HoldCo (holding company) debt as a
structurally subordinated loan, with part cash and part
payment-in-kind (PIK) interest, but consolidated it when
calculating leverage. Lone Star intends to pay the cash interest on
the Holdco Loan, but Fitch assumes the debt interest will be paid
by Skyscraper, as non-payment could trigger a default of its senior
term loan B (TLB).

Stable Cash Flow: Fitch expects a 6% drop in revenue in 2020, as
the pandemic has affected construction in all regions, particularly
in the Asia Pacific and the Middle East, which was also affected by
weaker demand in oil-related industries. This is to be followed by
solid organic growth, supported by improved pricing. Fitch also
expects EBITDA margins to remain strong at above 13% in 2021 and to
improve along with the planned cost savings. Higher FCF due to
limited growth capex and no acquisitions should allow for some
deleveraging over the next few years.

DERIVATION SUMMARY

Skyscraper's business profile is similar to that of RPM
International Inc. (BBB-/Negative), excluding ownership and
near-term carve-out risks. RPM is about twice the size of
Skyscraper by turnover and has strong brand recognition in its
niche segments, but it has lower geographical diversification.

Skyscraper's margin and profitability are well aligned with other
building product companies, such as HESTIAFLOOR 2 (B+/Stable) and
some of its concrete customers. However, Skyscraper's has higher
leverage. Nonetheless, Skyscraper's leverage is lower than that of
Nouryon Holding B.V.(B+/Stable), which was carved out from Akzo
Nobel N.V. (BBB+/Negative) at an initial FFO leverage of above
8.0x.

KEY ASSUMPTIONS

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

  - Revenue to rise at a CAGR of 2% in admixtures and 1% in
    construction systems till 2025

  - EBITDA margin of 13% in 2020, rising to 16% by 2023 as cost
    savings are implemented

  - Capex intensity at 2.7% on average, resulting in EUR68
    million-EUR72 million outflow in 2020-2023

  - Tax rate of 25%

  - EUR12.5 million restricted cash due to working capital swings

  - HoldCo loan included as debt, with cash interest serviced
    by Skyscraper

RECOVERY ANALYSIS

The recovery analysis assumes that Skyscraper would be reorganised
as a going concern (GC) rather than liquidated.

The GC EBITDA estimate reflects Fitch's view of a sustainable,
post-reorganisation EBITDA level upon which Fitch bases the
enterprise valuation. Fitch assumes EUR250 million of GC EBITDA,
which reflects an EBITDA level that could be driven by raw material
price pressure, a prolonged deep recession, loss of competitive
position, environmental problems and reputational issues.

A multiple of 5.5x EBITDA is applied to the GC EBITDA to calculate
a post-reorganisation enterprise value. This is around half of the
multiple for the acquisition of the business from BASF (9x-10x) and
is in line with multiples for similarly rated issuers.

Fitch's waterfall analysis generated a Recover Recovery in the
'RR2' band, indicating a 'BB(EXP)' instrument rating. This was
after Fitch deducted 10% from the enterprise value for
administrative claims, and assumed the EUR150 million revolving
credit facility (RCF) fully drawn and the EUR1,475 million TLB,
which rank pari passu. The waterfall analysis output percentage is
76%.

RATING SENSITIVITIES

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

  - Continued strong business profile and successful
    implementation of planned cost savings leading the EBITDA
    margin to improve to 17%

  - FFO leverage sustainably below 4.5x

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

  - FFO leverage deteriorating above 6.5x

  - Deteriorating market position, weak sales growth or margin
    pressure

  - EBITDA margin below 13% for a sustained period

  - FCF margin deteriorating below 3%

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: Fitch forecasts Skyscraper to generate more
than EUR120 million of cash each year from 2021, which Fitch
believes is adequate to fully finance small bolt-on acquisitions.
The capital structure will leave EUR50 million of cash on balance
and a further EUR150 million committed RCF available at closing.
Fitch has restricted EUR12.5 million of cash to cover intra-year
working capital swings.

Liquidity also benefits from no mandatory amortisation due to the
all-bullet debt structure, with the TLBs maturing in seven years
and the HoldCo loan in eight years. However, Fitch believes that a
capital structure with all maturities due at the same time has
higher refinancing risk than an evenly spread maturity profile, in
spite of maturities being in 7 years from closing.

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).




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

JDE PEET: Moody's Assigns Ba1 CFR, Outlook Positive
---------------------------------------------------
Moody's Investors Service assigned a first-time corporate family
rating of Ba1 and a probability of default rating of Ba1-PD to JDE
Peet's N.V., the second largest coffee manufacturer worldwide. The
outlook is positive.

The first-time rating assignment follows the successful completion
on May 29 of the company's initial public offering (IPO) on the
Amsterdam stock Exchange [1].

Concurrently, Moody's has also changed the outlook to positive from
stable on the Ba1 ratings of JACOBS DOUWE EGBERTS Holdings B.V. and
its financing subsidiary, Jacobs Douwe Egberts International B.V.
All ratings of JDE, including the Ba1 corporate family rating, the
Ba2-PD probability of default rating and the Ba1 senior secured
rating assigned to the EUR5.47 billion credit facilities
outstanding as of June 2020 (including the EUR500 million undrawn
Revolving Credit Facility) borrowed by Jacobs Douwe Egberts
International B.V. were affirmed.

"The Ba1 rating of JDE Peet's is supported by its strong market
position and global foothold in the growing coffee industry, and
its solid and stable free cash flow generation," says Paolo
Leschiutta, a Moody's Senior Vice President and lead analyst for
JDE Peet's.

"The rating also reflects its limited product category
diversification and some exposure to the coronavirus outbreak.
Success in weathering potential demand volatility over the short
term, in improving key credit metrics and in executing on the
simplification of the capital structure, bringing it more in line
with investment grade standards, could support further upward
pressure on the ratings," adds Mr. Leschiutta.

The change of outlook to positive from stable on subsidiary JDE
reflects Moody's expectation of JDE Peet's eventually refinancing
legacy debt of JDE at JDE Peet's level. While JDE Peet's does not
currently guarantee JDE's debt, Moody's expects that the credit
quality of the two entities will eventually converge and that JDE
will benefit from the increased transparency, improved corporate
governance structure and more predictable financial policies
associated with JDE Peet's listing.

RATINGS RATIONALE

  -- JDE PEET'S FIRST-TIME RATINGS ASSIGNMENT

JDE Peet's Ba1 rating recognizes the strong business profile of the
group thanks to the combination of JDE's market two position in the
global coffee industry together with Peet's Coffee's strong
positioning in the US premium coffee retail segment. In 2019, the
combined entity generated EUR6.9 billion of revenue, EUR6.1 billion
(or 87%) of which was generated by JDE. The combined entity
benefits from a strong portfolio of brands and good geographic
diversification, improved by Peet's strong presence in the
important US market, which represented 13% of the combined entity's
revenues as of December 2019.

Despite the strong growth momentum in the coffee industry, with
significant premiumisation potential supporting revenue and
profitability growth, JDE Peet's remains highly concentrated in a
single product category, coffee, and its financial leverage is
still relatively high for the rating category. The rating is also
currently constrained by the uncertainty of the potential negative
impact on consumption from the coronavirus outbreak. Albeit the
company's exposure to owned store sales is limited and its
performance so far has remained relatively resilient to lockdown
measures across a number of countries, weak consumer sentiment and
the reduction in out-of-home traffic might reduce the company's
cash flow generation over the next 6 months. In particular,
approximately 16% of the group's revenues derive from the Out of
Home channel, which has been disrupted by the outbreak, and a
further 5% from directly managed retail coffee stores which have
been partially closed during the lockdown restrictions.

JDE Peet's recent IPO resulted in approximately EUR805 million of
primary proceeds, including an over-allotment option, which were
retained by JDE Peet's to repay existing indebtedness and
transaction fees. Following the IPO, JAB Holding Company S.a r.l.
(Baa2 stable) indirectly owns 60.6% of the company, Mondelez
International, Inc. (Baa1 stable) 22.9%, while the remaining 16.5%
is free float. In Moody's view, the listing will support strong
governance standards and a transparent and predictable financial
policy. Moody's notes management's public commitment to reduce
financial leverage, on a company net debt to EBITDA basis, to 3.0x
by mid-2021.

Pro-forma for the IPO, Moody's expects the company's leverage, on a
Moody's adjusted gross debt to EBITDA basis to be at around 4.0x.
The positive outlook assumes ongoing deleveraging on the back of
strong EBITDA and free cash flow generation and Moody's
expectations that the company will continue to prioritise debt
reduction to potential debt-funded acquisitions or higher
shareholder's remuneration. Moody's derives comfort from JDE's
track record of debt reduction in recent years.

  -- JDE'S Ba1 RATINGS AFFIRMATION; OUTLOOK CHANGED TO POSITIVE

The affirmation of JDE's rating and the outlook change to positive
reflects the benefits resulting from the more transparent corporate
governance structure and predictable financial policy at its
parent, following JDE Peet's listing. While JDE's debt does not
benefit from any explicit guarantee from its parent, the positive
outlook on JDE's ratings reflects a degree of implicit support from
the new parent company JDE Peet's which has a stronger business
profile than JDE's standalone profile owing to the consolidation of
Peet's Coffee and JDE's businesses.

The positive outlook of JDE also reflects Moody's expectation that
its debt will eventually be repaid with new debt to be issued at
JDE Peet's level. Debt raised at JDE Peet's level will likely be
structurally subordinated to the current remaining debt at JDE's
level until the company is able to put in place cross guarantees.

LIQUIDITY

JDE Peet's EUR1,183 million of liquidity is good consisting of
EUR465 million of unrestricted cash on balance sheet as of June
2020 and EUR718 million availability under the EUR500 million JDE's
revolving credit facility, due in 2023, which is seldom used, and
EUR218 million availability under the $600 million (EUR536 million)
Peet's Coffee RCF due in 2022. Moody's expects that if these
revolvers are eventually refinanced with one single facility, any
new line will continue to offer adequate coverage of potential
working capital and corporate needs.

The company's liquidity is also supported by positive cash flow
generation of around EUR600 million per annum (as per Moody's
definition, that is, after interests and dividend payments) and
Moody's expectation that the company will meet its financial
maintenance covenant with sufficient capacity (the company has net
debt/EBITDA covenant which, compared with the leverage ratio as of
December 2019, offered significant headroom). There are no major
debt maturities until November 2023, when the company's EUR3.9
billion Term loan A is due.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS

Although environmental and social risks are normally modest for
consumer products companies, Moody's believes JDE to be exposed to
some environmental risks, given the concentration of coffee beans
procurement in certain parts of the world, mainly across emerging
markets. Sustainability of raw material sources is a cause of
concern and focus from a number of consumers but are not expected
to influence the rating at this stage.

Moody's regards the coronavirus outbreak as a social risk under
Moody's ESG framework, given the substantial implications for
public health and safety. Uncertainty over the duration of the
pandemic, its economic impact of the restrictions related to travel
and social distancing and impact on short to medium-term consumer
behavior and consumption remains high. Prolonged lock down measures
together with the potential for a second wave of cases globally
might affect the company's cash generation over the coming six to
12 months.

The company largest shareholder's remains JAB Holding Company S.a
r.l. which, in Moody's view has a high tolerance for risk. However,
the recent listing provides the associated benefits of increased
transparency, improved corporate governance standards and more
predictability of financial policies.

RATIONALE FOR POSITIVE OUTLOOK

The positive outlook on JDE Peet's reflects Moody's expectation of
sustained and progressive deleveraging over the next 12 to 18
months, as well as the expectation that the company should be able
to weather any adverse consequences of the coronavirus outbreak,
while implementing a simplified capital structure in line with
investment-grade standards.

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

Positive rating pressure could develop if Moody's adjusted
debt/EBITDA reduces towards 3.3x and its adjusted retained cash
flow/net debt increases above 17%, both on a sustainable basis. An
upgrade to investment grade would also be subject to the company
maintaining a prudent financial policy, including conservative
leverage targets and by demonstrating a solid liquidity management.
The implementation of a more simplified, investment-grade type
capital structure could also support a rating upgrade.

Conversely, negative pressure on the ratings could materialise if
the company's operating performance deteriorates or if it engages
in large debt-financed M&A transactions, such that Moody's adjusted
gross debt/EBITDA increases above 4.0x or if Moody's adjusted
retained cash flow/net debt declines below 12%, both on a
sustainable basis. Deterioration in the company's liquidity profile
or a more aggressive shareholders return policy could also result
in negative pressure on the ratings.

LIST OF AFFECTED RATINGS

Assignments:

Issuer: JDE Peet's N.V.

Probability of Default Rating, Assigned Ba1-PD

LT Corporate Family Rating, Assigned Ba1

Affirmations:

Issuer: Jacobs Douwe Egberts International B.V.

Senior Secured Bank Credit Facility (Foreign and Local Currency),
Affirmed Ba1 (LGD3)

Issuer: JACOBS DOUWE EGBERTS Holdings B.V.

LT Corporate Family Rating, Affirmed Ba1

Probability of Default Rating, Affirmed Ba2-PD

Outlook Actions:

Issuer: Jacobs Douwe Egberts International B.V.

Outlook, Changed to Positive from Stable

Issuer: JACOBS DOUWE EGBERTS Holdings B.V.

Outlook, Changed to Positive from Stable

Issuer: JDE Peet's N.V.

Outlook, Assigned Positive

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Headquartered in the Netherlands, JDE Peet's N.V. was created in
late 2019 from the combination of JACOBS DOUWE EGBERTS B.V. and
Peet's Coffee. JDE Peet's is the second largest coffee player
worldwide and manufactures and distributes coffee and tea products
to the retail and out-of-home (OOH) markets and directly to
consumer in more than 100 countries across Europe, Africa, Asia,
Latin America, Australia and, thanks to the addition of Peet's, the
US. JDE Peet's owns more than 50 brands, including some key names
like Peet's Coffee, Douwe Egberts, Jacobs, Tassimo, Moccona,
Senseo, L'OR, Super, Kenco, Pilao and Gevalia. In 2019, JDE Peet's
generated EUR6.9 billion of revenue and EUR1.9 billion of company's
adjusted EBITDA.

Headquartered in the Netherlands, JACOBS DOUWE EGBERTS Holdings
B.V. (JDE) is a leading manufacturer and distributor of coffee and
tea products to the retail and out-of-home (OOH) markets across
Europe, Africa, Asia, Latin America and Australia. In 2019, JDE
generated EUR6.1 billion of revenue and EUR1.5 billion of company's
adjusted EBITDA.


PLT VII FINANCE: Moody's Assigns B2 CFR, Outlook Stable
-------------------------------------------------------
Moody's Investors Service assigned a first-time B2 corporate family
rating and a B2-PD probability of default rating to PLT VII Finance
S.a.r.l., a predominantly mobile operator in the Baltic region.
Concurrently, Moody's has assigned a B2 rating to the proposed
EUR620 million senior secured bonds due 2026 to be issued by Bite.
The outlook is stable.

The proceeds from the notes together with EUR28.5 million cash on
hand will be used (1) to repay EUR449 million of existing debt; and
(2) to pay EUR199 million in shareholders distribution and
transaction costs.

"The B2 rating reflects Bite's well-established market positions in
Lithuania and Latvia and its strong growth prospects supported by
its convergent and cross selling strategy, as well as by
consolidation opportunities in the region" says Agustin Alberti,
Moody's Vice President-Senior Analyst, and lead analyst for Bite.

"The rating will be initially weakly positioned because of the high
leverage with Moody's adjusted gross debt to EBITDA expected to be
at 5.4x by year-end 2020" adds Mr. Alberti.

RATINGS RATIONALE

Bite's B2 rating reflects: (1) its leading position in Mobile and
TV segments with appetite to grow in the Fixed broadband area
through acquisitions; (2) high quality mobile network, with 99% 4G
coverage in Lithuania and Latvia, and leading TV free to air
channels and content in the Baltic region; (3) Moody's expectation
of continued growth in revenue and EBITDA from the implementation
of a cross selling strategy leveraging on Bite's new Pay TV over
the top platform service; (4) the benefits from its joint-venture
with Tele2 for the sharing of existing mobile networks and future
development of 5G technology reducing overall capex needs; and, (5)
the strong and growing free cash flow (FCF) generation (excluding
one-off dividends recapitalization and acquisitions) of around
EUR30 million in 2020.

Counterbalancing these strengths are: (1) the company's relatively
modest scale and scope of operations; (2) its geographical
concentration within the Baltic region, mainly in Lithuania (A3
positive) and Latvia (A3 stable); (3) its exposure to more cyclical
and volatile advertising revenue; (4) its initial high leverage,
with Moody's-adjusted gross debt/EBITDA of 5.4x in 2020; and (5)
Moody's expectation for limited de-leveraging over time due to the
company's track record of debt-funded acquisitions and dividend
distributions.

From a mobile only operator back in 2016 (65% of total pro forma
service revenues in 2019), the company has been able to diversify
into the media (22% of the pro forma service revenues in 2019) and
the fixed broadband segments (13% of the pro forma service revenues
in 2019) through several acquisitions that have enhanced the
company's competitive position. The company aims to leverage up on
its strong TV content through its new over the top platform to
continue growing its revenue generating units (RGUs) and to further
expand its average revenue per user (ARPU).

The acquisition of Latvian cable TV operator Baltcom in February
2020 for a total enterprise value of around EUR54 million, has
enabled Bite to enter the fixed broadband market and has reinforced
its position in the Pay TV segment as the second largest operator
in the region. The company has granted an option to purchase a 50%
of Baltcom's share capital to a third-party industry participant at
the same price paid by Bite. The option is exercisable until
December 31, 2020 (or, at the option holder's request, a date no
later than December 31, 2021). If the option is exercised, Bite
will own only 50% of Baltcom's which will be deconsolidated,
resulting in 0.3x increase in Moody's adjusted gross leverage.

In May 2020, the company reached an agreement to acquire Lithuanian
telecom operator Mezon for a total consideration of around EUR30
million. The company provides LTE and WiFi internet, and IPTV
services. The acquisition also involves the transfer of certain
transmission frequency spectrum licenses in Lithuania. The
transaction is subject to approval from Lithuanian regulatory
authorities and is expected to close in the fourth quarter of 2020.
This acquisition will reinforce the convergent strategy of the
company in its main market.

Moody's estimates that the company will report broadly stable
organic revenue and EBITDA growth in 2020, as weakness in the media
segment generated by the coronavirus outbreak will not be
compensated by growth in the mobile and broadband segments. The
rating agency forecasts organic growth to pick up again to
mid-single digit rates from 2021 onwards, as the economy in the
Baltic region recovers and the company continues to implement its
cross selling and upselling strategy.

The rating agency expects the company to reduce leverage levels on
the back of strong EBITDA growth with estimated gross Debt/EBITDA
of 4.9x and 4.6x in 2021 and 2022 respectively, absent of any
additional debt financed acquisitions.

Strong and growing free cash flow generation (excluding one-off
dividends recapitalization and acquisitions) of around EUR30
million in 2020, will benefit from the sound operating performance
and contained overall capex needs (12% of sales in 2020). The
company has established a JV with Tele2, covering its mobile
networks in Lithuania and Latvia, which will allow to drive
efficiencies in existing networks and reduce investments needs in
the 5G deployment from 2021 onwards. Moody's notes the benefits of
this agreement in terms of capex and opex savings, although there
is some uncertainty as the deal could be subject to regulatory
scrutiny.

Governance considerations, which Moody's takes into account in
assessing Bite's credit quality, relate to management's proven
track record with the company consistently growing revenues and
EBITDA and successfully integrating past acquisitions over the last
four years. Management's c.15% equity ownership and, therefore, its
commitment to the strategy of the company is credit positive.
However, the company is controlled by funds managed by Providence
Equity Partners with a c.85% equity stake. As is often the case in
highly levered, private equity sponsored deals, owners have a high
tolerance for leverage/risk, as demonstrated by the significant
re-leveraging of the company as part of this transaction, and
governance is comparatively less transparent.

LIQUIDITY

Moody's considers Bite's liquidity profile as good, supported by
strong and improving free cash flow generation. At transaction
closing, the company will have cash and cash equivalents of EUR25
million and a EUR50 million super senior revolving credit facility
(SSRCF) due 2025, fully undrawn.

The company will not have any material maturities until 2025, when
the SSRCF matures. The SSRCF contains one leverage-based
maintenance covenant set at 7.5x (net debt/consolidated EBITDA,
tested when the RCF is at least 35% drawn on a quarterly basis).

STRUCTURAL CONSIDERATIONS

Bite's probability of default rating is B2-PD based on an expected
family recovery rate of 50%. The company's capital structure
comprises a EUR620 million senior secured bond due 2026 and a EUR50
million SSRCF maturing in 2025.

The B2 rated bonds and the unrated SSRCF benefit from the same
security and guarantee structure. Bite's bonds are secured against
share pledges, bank accounts and receivables of key operating
subsidiaries, and benefit from guarantees from operating entities
accounting for 88.9% of group EBITDA (excluding Guarantors and
non-guarantors with negative EBITDA) and 77.7% of group assets as
of March 31, 2020. The unrated SSRCF ranks ahead of the notes in an
enforcement scenario. Given the relatively small size of the SSRCF
ranking ahead of the senior secured notes, the notes are rated B2,
at the same level as the CFR.

RATIONALE FOR STABLE OUTLOOK

The stable outlook on the ratings reflects Moody's expectation that
Bite will report a solid operating performance, with moderate
revenue growth from 2021 and small margin improvement; will
maintain its credit metrics in line with the parameters defined for
the B2 rating; and will manage liquidity in a prudent manner.

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

Upward rating pressure could develop if Bite delivers on its
business plan, such that its Moody's-adjusted debt/EBITDA remains
below 4.25x on a sustained basis, the company generates positive
FCF — after capital spending and dividends — on a sustained
basis, and there is a track record of prudent liquidity
management.

Downward rating pressure could be exerted if Bite's operating
performance weakens such that its Moody's-adjusted debt/EBITDA
rises above 5.25x and the company's FCF generation deteriorates. A
weakening of the company's liquidity could also lead to downward
pressure on its rating.

LIST OF AFFECTED RATINGS

Issuer: PLT VII Finance S.a.r.l.

Assignments:

Probability of Default Rating, Assigned B2-PD

Corporate Family Rating, Assigned B2

Senior Secured Regular Bond/Debenture, Assigned B2

Outlook Action:

Outlook, Assigned Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was
Telecommunications Service Providers published in January 2017.

COMPANY PROFILE

Bite is a predominantly mobile operator in the Baltic region. The
company offers a full range of integrated services such as fixed,
mobile and Pay-TV offers to residential and business customers. The
company is fully owned by Providence Equity Partners. In 2019, Bite
generated revenue and company-reported EBITDA of EUR389 million and
EUR123 million, respectively.


PLT VII FINANCE: S&P Assigns Preliminary 'B' ICR, Outlook Stable
----------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B' long-term issuer
credit rating to PLT VII Finance B.V. and its preliminary 'B' issue
rating to the bonds that PLT VII Finance S.a.r.l. will issue.

After its transition to a converged fixed, media, mobile player
from a mobile-only operator, Bite will likely focus on
strengthening its fixed broadband segment through acquisitions.

Providence Equity Partners (PEP) acquired 100% of Bite from Mid
Europa Partners in 2015. Since then, the group has expanded to a
converged mobile, media, and fixed operator with EUR417 million of
revenue in 2019 pro forma the acquisition of Baltcom that closed in
February 2020, from a predominantly mobile player with EUR189
million of revenue in 2015. Before Baltcom, Bite acquired MTG
Baltics (a media player) and Stream Networks (a fixed
business-to-business operator) in 2017. Despite recent high growth,
Bite remains a very small player compared with local competitors
Telia and Tele2, which are both international companies, and
telecommunications peers in Europe.

Although Bite is an established mobile player in Lithuania and
Latvia, with solid No. 2 and No. 3 positions respectively (31.4%
market share in Lithuania and 24.2% in Latvia in 2019), it is still
a small player in fixed broadband markets (10% market share in the
two countries combined). We expect Bite to take advantage of the
fragmented Lithuanian and Latvian fixed markets and acquire small
existing players to strengthen its position. Although positive from
a business perspective, future acquisitions could prevent it from
deleveraging in the coming years.

Leverage should remain high, reflecting Bite's likely acquisitions
and 100% private-equity ownership.

S&P forecasts S&P Global Ratings-adjusted leverage will remain
above 5.0x over the rating horizon, including 6.0x-6.2x in 2020
(pro forma the transaction) and 5.9x-6.0x in 2021. Overall, we do
not expect leverage will decline materially because any organic,
EBITDA-spurred reduction would likely be offset by acquisitions in
the fixed segment and potential distributions to PEP, like the
EUR180 million-EUR230 million to be paid from the bond proceeds.

However, S&P does not expect S&P Global Ratings-adjusted leverage
to exceed 6.5x, the maximum threshold for the rating, due to Bite's
financial policy, which specifies a maximum reported gross leverage
of 5.0x (roughly 6.2x in adjusted leverage). Furthermore, high
leverage under the private-equity ownership is partly compensated
by projected FOCF of 7%-8% of debt in 2020 and 2021, mainly
reflecting Bite's low capital expenditure (capex) requirements.

Bite's low capex requirements will continue to compensate for
relatively weak profitability.

Bite has a relatively weak profitability, with a 28.4% S&P Global
Ratings-adjusted EBITDA margin in 2019, which is lower than most
European telecommunications (telecom) peers'. This is mainly due to
low average revenue per user (ARPU) in Lithuania and Latvia
compared with the rest of Europe and because Bite is in the growth
stage, compared with established telecoms that can focus on cost
savings and benefit from economies of scale. Nonetheless, Bite has
low capex requirements, with projected reported capex of 7%-9% of
sales in 2020, 2021, and 2022, which is much lower than most
European peers'. This is firstly due to the specificities of Bite's
markets. Lithuania and Latvia, two geographically flat countries,
have low population density but high concentration in capital
cities, allowing operators to focus on capacity in small,
concentrated areas while providing decent coverage in the rest of
the country. Moreover, the announced joint venture to share mobile
networks with Tele2 in Lithuania and Latvia will limit Bite's capex
growth related to the roll-out of 5G. As a result, Bite has a solid
cash flow conversion of 79% in 2019 (reported EBITDA minus capex,
divided by reported EBITDA).

Organic revenue growth should halt in 2020 due to COVID-19.

While mobile and broadband revenue has held up relatively well
since the beginning of the COVID-19 pandemic, the impact of media
should be more severe. S&P said, "We expect media revenue will fall
sharply in 2020, by EUR20 million-EUR25 million. Media reported
EBITDA should decline by EUR4 million-EUR5 million. As a result, we
expect total organic revenue to stagnate or slightly decline in
2020, before picking up in 2021, in line with favourable macro
conditions in the Baltics."

S&P said, "The stable outlook reflects our expectation that Bite
will increase its organic revenue by 4%-5% from 2021, spurred by
mobile ARPU and overall subscriber growth, after stagnating or
declining slightly in 2020. We also expect Bite's S&P Global
Ratings-adjusted EBITDA margin of 28%-29% in 2020 and 2021,
adjusted debt to EBITDA of about 6.0x-6.2x in 2020 and 5.9x-6.0x in
2021, and FOCF to debt of 7.0%-8.0%.

"We could lower the preliminary rating if Bite's FOCF approached
zero, debt to EBITDA increased to 6.5x or above, or funds from
operations (FFO) cash interest coverage declined toward 2.0x. This
could be the result of a more aggressive financial policy resulting
in higher debt to fund shareholder distributions or large
acquisitions. Although unlikely, it could result from Bite's EBITDA
declining due to an unexpected hike in competition in Lithuania and
Latvia and significantly higher capex.

"We could raise the preliminary rating if debt to EBITDA approached
5.0x and FOCF to debt remained above 7%. This would be the result
of a more conservative financial policy, coupled with Bite
consolidating its position in mobile while building market share in
fixed activities, increasing its revenue and EBITDA margin faster
than expected, and maintaining low capex levels."


WERELDHAVE NV: Moody's Withdraws (P)Ba2 Rating on EMTN Program
--------------------------------------------------------------
Moody's Investors Service withdrawn the (P)Ba2 rating of Wereldhave
N.V.'s EMTN programme.

RATINGS RATIONALE

Moody's has decided to withdraw the rating for its own business
reasons.
       
The Ba2 LT corporate family rating and the Ba2 senior unsecured
rating are unaffected by the rating action. The outlook remains
negative.

Based in Schiphol, Wereldhave N.V. is a Dutch REIT owning and
managing a portfolio of mid-sized shopping centres in urban centres
across The Netherlands, Belgium and France. The company owns 31
shopping centres, with a lettable area of approximately 851
thousand sqm, and five office buildings, with gross asset value of
EUR2.9 billion as at December 31, 2019.




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

BLUE AIR: Bucharest Municipal Court Okays Bankruptcy Protection
---------------------------------------------------------------
Emily Derrick at Simple Flying reports that Romania's low-cost
airline, Blue Air, has been given a new lease of life after
Bucharest's municipal court approved its request to enter a form of
bankruptcy protection.

According to Simple Flying, the procedure allows the carrier to
continue operations and generate revenue for the next 18 months
without having to pay back creditors or refund passengers.

The agreement between the airline and its creditors will see the
airline repay loans in full at a later date, Simple Flying
discloses.

Like many European Airlines, Blue Air has struggled massively to
cope with the financial impact of COVID-19, Simple Flying relates.
Blue Air suspended operations, grounded its fleet, and 90% of the
airlines' staff were classified as unemployed in April, Simple
Flying recounts.

From March to June, Blue Air's revenues declined by over EUR100
million (US$113 million) due to the COVID-19 outbreak, Simple
Flying states.  In April, the Romanian government announced it had
approved EUR130 million (US$147 million) to help Blue Air and
state-owned carrier TAROM, Simple Flying relays.  

However, things have started to turn around for Blue Air, Simple
Flying discloses.  In June, due to demand from passengers, the
airline started operating on-demand flights, and from July 1st, the
airline resumed a more regular schedule, Simple Flying notes.

The government loan and the new precautionary arrangement procedure
should give the airline enough support to make it through this
uncertain period, according to Simple Flying.  The carrier has
avoided insolvency so far, but with a potential second wave of the
virus, it still faces challenging times ahead, Simple Flying says.




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

CEVA LOGISTICS: Moody's Alters Outlook on Caa1 CFR to Stable
------------------------------------------------------------
Moody's Investors Service has changed the outlook on CEVA Logistics
AG to stable from negative. At the same time, Moody's affirmed
CEVA's Caa1 corporate family rating, Caa1-PD probability of default
ratings, and the Caa1 rating on its senior secured credit
facilities issued by CEVA Logistics Finance B.V.

Its rating action reflects CEVA's improved capitalisation and
liquidity profile driven by CMA CGM S.A.'s EUR300 million equity
injection which will be used to repay debt. Moody's notes that in
the short term, CEVA's operating performance is challenged by the
severe macroeconomic conditions. Longer term improvements of CEVA's
rating require a sustained improvement of operating performance and
free cash flow generation. Management's initiated efficiency
improvement measures should support a gradual turnaround of the
company.

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.

RATINGS RATIONALE

On May 13, 2020, CEVA's shareholder CMA announced its intention to
inject EUR300 million as equity, which by now has been done and
will be used to repay debt. This will, all else being equal, lower
CEVA's debt/EBITDA by around 0.7x (based on Moody's-adjusted
trailing figures ending in March 2020). This, together with
previous equity injections post the acquisition, also demonstrates
CMA's willingness to support CEVA with liquidity through its
turnaround process, which supports its rating. That being said,
CEVA's ability to structurally lift its profitability remains to be
seen, as well as the timing of the company being able to generate
positive free cash flow. Moody's notes positively that the
company's largest division in terms of EBITDA, contract logistics,
increased profitability to 4.0% in Q1 2020 from 2.6% in Q1 2019,
also reflecting that the loss-making contract in Italy have ceased
to burden the group's profitability. Nevertheless, COVID-19 will
impact the company negatively and Moody's now projects it could
take until FY2022 before the company becomes free cash flow
positive (on an annual basis).

RATIONALE FOR CHANGING THE OUTLOOK

With a less leveraged capital structure, as well as a committed
shareholder CMA, negative ratings pressure has abated for now.
However, 2020 will still prove to be a challenging year for the
company, with Moody's projecting adjusted free cash flow to be
negative, $200 million - $100 million, and debt/EBITDA to be 5.5x
-- 5.1x. That being said, its projections are attached with a high
degree of uncertainty, as a lot of initiatives implemented by CMA
is yet to be seen in numbers, as well as the ongoing coronavirus
crisis.

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

Positive ratings pressure could start to build it the company shows
clear signs of a structurally higher profitability leading it to
become free cash flow positive. This would also require the
company's debt/EBITDA staying below 6.0x and the preservation of an
adequate liquidity profile.

Negative ratings pressure could start to build if CEVA's liquidity
profile weakens, coupled with a lower probability of further
support by CMA if needed.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Surface
Transportation and Logistics published in May 2019.

LIST OF AFFECTED RATINGS:

Affirmations:

Issuer: CEVA Logistics AG

Probability of Default Rating, Affirmed Caa1-PD

LT Corporate Family Rating, Affirmed Caa1

Issuer: CEVA Logistics Finance B.V.

Backed Senior Secured Bank Credit Facility, Affirmed Caa1

Outlook Actions:

Issuer: CEVA Logistics AG

Outlook, Changed to Stable from Negative

Issuer: CEVA Logistics Finance B.V.

Outlook, Changed to Stable from Negative

COMPANY PROFILE

CEVA is one of the leading third-party logistics providers in the
world (number five in Contract Logistics, number 14 in Freight
Management). CEVA offers integrated supply-chain services through
the two service lines of Contract Logistics and Freight Management
and maintains leadership positions in several sectors globally
including automotive, high-tech and consumer/retail. The group is
fully owned by CMA CGM group since April 2019. In 2019, the company
generated revenue of $7.1 billion and EBITDA of $494 million.


VERISURE HOLDING: Moody's Rates New EUR1BB Secured Term Loan 'B1'
-----------------------------------------------------------------
Moody's Investors Service assigned B1 ratings to the new proposed
EUR1 billion senior secured term loan / other senior secured debt
issued by Verisure Holding AB, a wholly owned subsidiary of
Verisure Midholding AB. Verisure's B2 corporate family rating,
B2-PD probability of default rating and Caa1 senior unsecured notes
ratings remain unchanged. The B1 rating of the existing senior
secured notes issued by Verisure Holding AB also remain unchanged.
The outlook remains stable.

RATINGS RATIONALE

The B1 rating of the proposed new facilities is in line with the
existing senior secured debt. Proceeds from the proposed issuance
will be used to refinance part of the EUR3.79 billion of currently
outstanding senior secured debt. The largely leverage neutral
transaction will improve Verisure's debt maturity profile and
reduces by roughly a third the refinance wall in H2 2022.

The company's stable business model of providing home alarm systems
and monitoring for mostly residential customers has proven its
resilience during the coronavirus outbreak. The main effect of the
outbreak on the company has been a greatly reduced ability to
acquire new customers, but this has resulted in a much stronger
cash flow because of the reduced customer acquisition spend.
Moody's understands that there has been no material spike in the
cancellation rate (6.35% as of Q1 2020) from the more than 3.4
million customers who provide the company with a stable source of
recurring monthly revenues.

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.

Governance risks taken into consideration in Verisure's credit
profile include its ownership by private equity sponsors, who tend
to have aggressive financial policies favouring high leverage,
shareholder-friendly policies such as dividend recapitalisations
and the pursuit of acquisitive growth.

LIQUIDITY

Verisure has good liquidity supported by EUR89 million of cash and
a fully undrawn EUR300 million revolving credit facility, as of
March 31, 2020 (pro forma for the proceeds from the EUR200 million
senior secured notes issued in April 2020).

STRUCTURAL CONSIDERATIONS

The proposed EUR1 billion of senior secured term loan / other
senior secured debt will rank pari passu with the existing senior
secured debt and share the same security package. The B1 ratings of
the senior secured debt instruments reflect the loss absorption
buffer from the unsecured debt instruments rated Caa1. As of March
31, 2020 (and including the EUR200 million senior secured notes
issued in April 2020), there was EUR3.79 billion of outstanding
senior secured debt and EUR1.23 billion of unsecured debt
instruments.

CREDIT METRICS

The company's leverage, as measured by its Moody's-adjusted
debt/EBITDA, stood at 6.8x as of March 31, 2020. On a steady-state
basis (excluding the costs of growing the subscriber base but
including those of replacing customer contract cancellations),
leverage was 5.2x as of March 31, 2020. Moody's also assesses
financial leverage using other ratios that are relevant for the
alarms monitoring sector, such as debt/recurring monthly revenue
(RMR). Verisure's debt/RMR (including Moody's standard adjustments
to debt and net of capitalised arrangement fees) was 38.0x as of
March 31, 2020. The new proposed EUR1 billion of issuance will have
no material impact on Verisure's leverage.

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

Positive rating pressure could develop if Verisure reduces its
Moody's-adjusted gross debt/recurring monthly revenue to below 35x
and increases free cash flow (before growth spending)/debt to 10%,
with FCF (after growth spending) turning positive. Along with these
metrics, for an upgrade, Moody's would also require at least stable
cancellation rates and customer acquisition costs, and limited
requirements for additional debt financing and dividend payments.

Downward rating pressure could develop if Verisure's
Moody's-adjusted gross debt/RMR remains above 42x for a prolonged
period or steady-state cash flow generation trends towards zero, or
if liquidity concerns were to arise.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Headquartered in Versoix, Switzerland, Verisure Midholding AB is a
leading provider of monitored alarm solutions operating under the
Securitas Direct and Verisure brand names. It designs, sells and
installs alarms, and provides ongoing monitoring services to
residential and small businesses across 16 countries in Europe and
Latin America. The customer base consists of over 3.4 million
subscribers as of March 31, 2020. The company had 17,144 employees
and reported revenues of EUR1.9 billion and adjusted EBITDA of
EUR703 million as of year-end 2019. The company was founded in 1988
as a unit of Securitas AB and is currently majority owned by the
private equity firm Hellman & Friedman.




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

CONVIVIALITY: Grant Thornton Fined GBP3 Million Over Audit
----------------------------------------------------------
Huw Jones at Reuters reports that Britain's accounting watchdog
fined Grant Thornton GBP3 million (US$3.77 million) on July 8 for
ethics failures in relation to its audit of Conviviality, the
alcohol retailer which collapsed in 2018.

The Financial Reporting Council (FRC) said the fine was reduced to
GBP1.95 million for admissions and early disposal in relation to
the audit for the year ending 30 April, 2014, Reuters notes.

According to Reuters, the watchdog said Grant Thornton had agreed
to a package of measures aimed at improving the quality of future
audits as a result of the Conviviality action, including the
creation of an ethics board.

The FRC said the firm's failures in ethics were repeated and over
three years, resulting in numerous breaches of standards and
requirements by the firm's partners and staff, Reuters relates.

It said Grant Thornton had provided an unqualified or clean audit
opinion to Conviviality in circumstances where the threats to
independence were such that it should have resigned from the
engagement, Reuters discloses.


FIRSTGROUP: Expresses Going Concern Doubt Due to Coronavirus
------------------------------------------------------------
BBC News reports that Aberdeen-based bus and train operator
FirstGroup has warned it faces an uncertain future after
coronavirus caused a collapse in passenger numbers.

According to BBC, the warning came as the firm announced annual
losses of more than GBP150 million.

Coronavirus saw average passenger numbers fall by 90% in March
alone, BBC discloses.

First warned about its ability to continue as a going concern -- a
fully-operating, profit-making business -- although it said there
is enough funding to get through the next year, BBC relates.

The operator is pinning its hopes on a return of passengers as
lockdown restrictions are eased further and people get back to
work, school and social events, BBC states.

The loss of GBP152.7 million followed a 2019 profit of GBP9.8
million, BBC notes.

First runs bus services in most of the UK's biggest towns and
cities, as well as services in the United States.


JOE MEDIA: Bought Out of Administration by Greencastle Capital
--------------------------------------------------------------
Business Sale reports that Joe Media Limited, the UK parent company
of JOE.co.uk, a popular website aimed at male millenials, has been
acquired out of administration by Greencastle Capital.

The buyer reportedly also expects to imminently acquire the Irish
business of Joe Media, Business Sale says.

Joe Media Ltd originally appointed administrators from KPMG to seek
a buyer for the business in May, Business Sale recounts.  The Joe
Media family includes 10 digital lifestyle channels: JOE.co.uk,
JOE.ie, Her.ie, HerFamily.ie, FootballJOE, PoliticsJOE, MMAJOE,
SportsJOE, RugbyJOE and ComedyJOE.

Following the acquisition, Greencastle Capital has signed a rolling
annual management services contract with Iconic Labs, Business Sale
discloses.  Announcing the agreement, Iconic, as cited by Business
Sale, said it would immediately assume management of all
operational and commercial aspects of Joe Media in the UK and
Ireland.

Iconic will be paid a monthly fee of GBP50,000 plus external costs
and will receive 25% of all profits, providing certain revenue and
profit targets are met, Business Sale states.

Joe Media originally entered administration a week after a creditor
of the brand's parent company, Ireland-based Maximum Media Network,
claimed that it had failed to pay two months of interest on a EUR6
million loan, Business Sale recounts.

The creditor, BPC Lending Ireland DAC, said it had denied a capital
and interest moratorium request from Maximum and had reportedly
denied requests for a temporary standstill, Business Sale relays.
Joe Media Ltd was guarantor for the loan, according to Business
Sale.



                           *********


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

Troubled Company Reporter-Europe is a daily newsletter co-
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Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
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Editors.

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

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