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

                          E U R O P E

          Friday, July 10, 2020, Vol. 21, No. 138

                           Headlines



A Z E R B A I J A N

AFB BANK: Fitch Withdraws B- LongTerm IDR


F R A N C E

PARTS HOLDING: Moody's Affirms Caa1 CFR, Outlook Stable
PARTS HOLDING: S&P Affirms 'B-' ICR, Outlook Negative


I T A L Y

WEBUILD SPA: Fitch Affirms BB LongTerm IDR, Outlook Negative


N E T H E R L A N D S

ALCOA NEDERLAND: Fitch Rates New $500MM Sr. Unsec. Notes BB+
ALCOA NEDERLAND: Moody's Assigns Ba1 Rating on New Unsec. Notes
ALCOA NEDERLAND: S&P Rates New $500MM Senior Unsecured Notes 'BB+'
AMMEGA GROUP: Fitch Lowers LongTerm IDR to B-, Outlook Stable


R U S S I A

BANK SOYUZ: S&P Affirms 'B+/B' ICRs, Outlook Stable


S P A I N

EL CORTE INGLES: Fitch Affirms BB+ LT IDR, Outlook Negative


U N I T E D   K I N G D O M

ALLSAINTS: Creditors Back Company Voluntary Arrangements
CASTLE BUSINESS: Enters Administration Due to Liabilities
LAURA ASHLEY: FRP Tapped to Scrutinize Finances Prior to Collapse
LE BISTROT: Files Notice of Intent to Appoint Administrators
NORVILLE GROUP: Enters Administration, 130+ Jobs Affected

REDEEM UK: Enters Administration, 118 Jobs Affected
SB ENERGY: Moody's Assigns (P)Ba3 Rating on New $600MM Sec. Notes
TRAVELEX: Debt Holders to Take Control, Inject GBP84MM Liquidity
VENDOME FUNDING 2020-1: S&P Assigns BB- Rating on Cl. E Notes
VICTORIA PLC: Fitch Alters Outlook on BB- LT IDR to Negative



X X X X X X X X

[*] BOOK REVIEW: Bankruptcy and Secured Lending in Cyberspace

                           - - - - -


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A Z E R B A I J A N
===================

AFB BANK: Fitch Withdraws B- LongTerm IDR
-----------------------------------------
Fitch Ratings has downgraded Azerbaijan's AFB Bank Open Joint Stock
Company's Long-Term Issuer Default Rating to 'B-' from 'B'. The
Outlook is Stable. Fitch has simultaneously withdrawn the ratings
for commercial reasons and will no longer provide ratings and
analytical coverage for AFB.

The ratings were withdrawn with the following reason For Commercial
Purposes

KEY RATING DRIVERS

The downgrade of AFB's Long-Term IDR and Viability Rating (VR)
reflects AFB's asset quality weakening and an increase in
connected-party lending. Lower oil prices and the ongoing economic
downturn in Azerbaijan caused by the COVID-19 pandemic put
additional pressure on AFB's creditworthiness.

AFB's 'B-' IDR captures its weak asset quality and performance,
limited franchise - resulting in among other things substantial
concentrations on both sides of the balance sheet - and significant
connected-party lending. AFB's high capital ratios underpin the
ratings.

Fitch views AFB's franchise as narrow, based on the bank's limited
2.5% share of the system's loans and its historical focus on
servicing companies related to Gilan Holding (GH), a large
diversified group with assets in construction, tourism,
agriculture, logistics and fast-moving consumer goods. GH was the
bank's majority shareholder prior to February 2019 when the bank
was acquired by Mr. Hikmet Ismayilov. Despite the change of the
shareholder, Fitch believes that AFB is still closely connected
with GH based on the fact that Mr. Ismayilov is a shareholder in
some of GH's companies.

The IFRS-reported related party loans stood at a low 2% of total
loans at end-2019. However, based on its review of the largest
exposures, Fitch believes that about 60% of gross loans (up from
50% at end-2018) are exposed to companies connected with GH, but
not classified as related parties under IFRS. Most of the
connected-party loans benefit credit enhancement in the form of
cash collateral. Given its size, this portfolio is crucial for
bank's franchise and financial viability, in Fitch's view.

Fitch assesses AFB's underwriting standards as weak due to sizable
connected-party exposure and weak asset quality metrics. Impaired
loans ('Stage 3' under IFRS 9) equalled a high 23% of gross loans
at end-2019. However, the impaired loan ratio would be a higher 44%
if cash-backed connected-party loans are excluded. Fitch also views
AFB's Stage 2 loans (4% of gross loans) and some Stage 1 exposures
as risky. Provisioning is reasonable as 75% of impaired loans were
covered by loan loss allowances at end-2019. In 2019, impaired
loans increased by 22% (or AZN 17 million) and Fitch expects
further pressure in 2020 due to the weaker operating environment.

High and volatile loan impairment charges consuming the bulk of
pre-impairment profit undermine AFB's performance. The bank's
operating profit to risk-weighted assets ratio was a reasonable
2.8% (annualized) in 5M20 from 2.4% in 2019, supported by low
funding costs, but this is highly sensitive to loan impairment
charges. Pre-impairment profit was equal to 2.9% of gross loans in
2019, which Fitch views as only a modest safety margin, considering
high concentration and asset quality risks.

AFB's capital ratios are high as reflected by FCC equal to 32% of
regulatory RWAs at end-5M20. Regulatory capital ratios are
comfortably above the statutory minimums. However, the amount of
net impaired loans was equal to a high 28% of Fitch Core Capital at
end-2019.

AFB is mainly customer funded, with 83% of total liabilities
represented by customer accounts at end-2019. Of these, 86% were
interest-free current accounts sourced from corporate clients and
wealthy individuals. IFRS-reported related party deposits were a
low 2% of total customer at end-2019. However, in Fitch's view over
70% of deposits come from companies connected to GH. Most of these
deposits represent dedicated funding for the cash-backed loans.

SUPPORT RATING AND SUPPORT RATING FLOOR

The affirmation of the Support Rating at '5' and Support Rating
Floor at 'No Floor' reflects the bank's limited scale of operations
and market share. Therefore, Fitch's views sovereign support for
the bank as uncertain. This view is supported by the default of
Open Joint Stock Company International Bank of Azerbaijan
(B-/Stable) in 2017, which is the largest bank in the country and
owned by the government. As a result, state support for less
systemically important, privately owned banks cannot be relied
upon. Potential for support from the bank's private shareholders is
not factored into the ratings.

RATING SENSITIVITIES

Not applicable.

ESG CONSIDERATIONS

AFB Bank Open Joint Stock Company: Governance Structure: 4

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




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F R A N C E
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PARTS HOLDING: Moody's Affirms Caa1 CFR, Outlook Stable
-------------------------------------------------------
Moody's Investors Service affirmed the ratings of car parts
distributor Parts Holding Europe S.A.S., including the Caa1
corporate family rating and the Caa1-PD probability of default
rating. Concurrently, Moody's has also affirmed the Caa1 ratings on
the existing senior secured notes due 2022 and issued by Parts
Europe S.A, and assigned a Caa1 rating to the new EUR300 million
senior secured notes due 2025. The outlook on both entities remains
stable.

Net proceeds from the new notes will be used to partially refinance
the existing notes due 2022.

"While we expect the impact of the lockdown on the company's
performance in Q2 2020 to be less severe than we initially
anticipated, upward rating pressure remains constrained by our
expectation that PHE's credit metrics will remain weak through
2021, notably that Moody's-adjusted debt/EBITDA is likely to stay
above 7.5x. There is also a degree of uncertainty as to whether the
company will be able to generate positive free cash flow on a
sustainable basis if earnings do not improve well above 2019
levels", says Eric Kang, a Moody's Vice President - Senior Analyst
and lead analyst for PHE. "That said, we continue to view the
company's liquidity as adequate over the next 12-18 months,
although there is still some refinancing risk with respect to the
remaining notes due in May 2022 if operating performance and credit
metrics do not materially improve over the next 12-18 months", adds
Mr Kang.

RATINGS RATIONALE

Moody's expects the impact of the lockdown in the second quarter of
2020 will be less severe than initially anticipated reflecting
market share gains at the expense of competitors, which closed
their stores and less restrictive lockdown in certain geographies
such as the Netherlands. Moody's currently forecasts a decline in
revenue of 15%-20% in the second quarter compared to 30% initially,
and continues to expect a normalization of trading levels in the
second half of the year. The coronavirus outbreak is a social risk
under Moody's ESG framework given the substantial implications for
public health and safety.

As a result, the rating agency expects Moody's-adjusted debt/EBITDA
will increase to around 8.5x in 2020 (post IFRS16) as opposed to
9.0x previously. A more subdued macroeconomic environment over the
next 12-18 months will likely prevent EBITDA growing materially
above pre-crisis levels in 2021 to allow sufficient deleveraging to
more sustainable levels of around 6.5x, despite Moody's
expectations of further cost savings and synergies related to
Oscaro and other past acquisitions. Moody's estimates that Moody's
gross adjusted leverage will be around 7.5x-8.0x in 2021. Besides
the uncertainty of EBITDA growth, leverage is likely to stay high
given an increase in gross debt, which Moody's expects will
slightly increase in 2020 because of drawings under the revolving
credit facility (RCF) and new credit facilities to support
liquidity, including state-guaranteed loans. The lower EBITDA
generation is also likely to constrain free cash flow generation.

Moody's expects global auto unit sales to plummet 20% in 2020
followed by a recovery of 11.5% in 2021. However, the light vehicle
aftermarket sector in the countries where the company operates has
historically been more resilient to economic downturns than sales
of new vehicles. The current market environment, characterized by a
broadly stable car parc size of vehicles older than four years
provides greater stability to the independent aftermarket (IAM)
channel than the original equipment suppliers (OES) channel, which
is closely linked to new vehicle registrations.

Moody's views PHE's liquidity as adequate at this stage, but there
could be refinancing risk with respect to the remaining EUR581
million senior secured notes due in May 2022 if operating
performance and credit metrics do not materially improve over the
next 12-18 months. As of March 31, 2020, the company had cash
balances of EUR168 million. The EUR100 million super senior
revolving credit facility (RCF) was fully utilized. The company
also has access to factoring facilities of EUR190 million in
aggregate (on- and off-balance sheet). Around EUR116 million of the
factoring facilities was utilized at year-end 2019, and of this
amount EUR93 million was utilized on an off-balance sheet basis. In
the second quarter of 2020, the company also received a EUR25
million loan guaranteed by the French state (PGE) as well as EUR25
million of short-term bilateral credit lines.

The nearest debt maturity is the off-balance sheet programme with
Factofrance, which amounted to EUR93 million at year-end 2019. The
programme initially expired in May 2020 but was extended to
November 2020. Moody's understands that the company has not had any
major issues with respect to renewing the programme since its
inception in 2017 and therefore expects the company to renew it in
a timely manner again this year. The next material debt maturities
are the EUR581 million senior secured notes in April 2022. The RCF
which initially expired in December 2020 was extended to September
2024 (or in January 2022 if the 2022 notes are still outstanding by
then).

Although covenant headroom will tighten in the coming quarters due
to the impact of the lockdown, Moody's expects the company to
maintain sufficient headroom under the springing financial
maintenance covenant, which applies to the RCF, and which is set at
0.7x super senior net leverage when the RCF is drawn by 35%. A
breach of this maintenance covenant triggers a draw-stop, but not
an event of default.

STRUCTURAL CONSIDERATIONS

The Caa1 rating on the senior secured notes is at the same level as
the CFR reflecting the relatively small quantum of super senior
debt ranking ahead, namely the RCF and the PGE. While the RCF and
the PGE benefit from the same security package as the notes (i.e.
shares, bank accounts and intercompany receivables), they will rank
ahead of the notes in an enforcement scenario under the provisions
of the intercreditor agreement. Also, the obligations of the notes'
subsidiary guarantor are capped at EUR330 million.

RATING OUTLOOK

The stable outlook incorporates Moody's expectations that the
company's debt/EBITDA will reduce to 7.5x-8.0x in 2021 from around
8.5x expected in 2020, and then will continue to delever
afterwards. The stable outlook also assumes that the company will
maintain an adequate liquidity profile over the next 12-18 months.

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

Negative rating action could materialize if operating performance
does not materially recover in the coming quarters, resulting in a
further deterioration of the company's liquidity or an
unsustainable capital structure, which would be evidenced by
Moody's-adjusted debt/EBITDA staying above 8.0x, weak
Moody's-adjusted EBITA/ interest cover of below 1.5x or sustained
negative free cash flow.

Upward rating pressure will not arise until the coronavirus
outbreak is brought under control. Over time, Moody's will consider
upgrading the ratings if Moody's-adjusted debt/EBITDA reduces below
6.5x on a sustained basis, Moody's-adjusted EBITA/interest is
sustainably above 1.5x, and the company maintains an adequate
liquidity profile including positive free cash flow generation.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Distribution &
Supply Chain Services Industry published in June 2018.

COMPANY PROFILE

Headquartered in France, Parts Holding Europe is a leading
aftermarket light vehicle (LV) spare parts distributor and truck
spare parts distributor and repairer in France, Benelux, Italy, and
Spain. It also owns Oscaro, the leading online car parts retailer
in France, since November 2018. The company generated revenue of
EUR1.8 billion in 2019.


PARTS HOLDING: S&P Affirms 'B-' ICR, Outlook Negative
-----------------------------------------------------
S&P Global Ratings affirmed its 'B-' ratings on Parts Holding
Europe (PHE) and the senior secured debt issued by its subsidiary
Parts Europe SA. S&P also affirmed its 'B+' rating on the company's
super senior revolving credit facility (RCF), and assigning a 'B-'
rating to the proposed EUR300 million senior secured notes due
2025.

S&P said, "Given the current volatile environment and the upcoming
maturity of PHE's RCF, we view the proposed refinancing as a
necessary step to smooth the group's debt maturity profile. PHE
intends to use the proceeds of the proposed EUR300 million senior
secured notes due 2025 to repay part of its EUR878 million senior
secured notes due in May 2022. This would leave PHE with EUR581
million of senior secured notes maturing in May 2022. Additionally,
PHE's EUR100 million super senior RCF is fully drawn and matures in
February 2022, with an extension to September 2024 if the 2022
notes have been fully repaid in the meantime with debt maturing
after December 2024. While our outlooks for sub-investment grade
companies usually cover 12 months, we could consider lowering the
rating on PHE to the 'CCC' category in a shorter timeframe if the
refinancing of the remaining 2022 notes is not addressed by
end-2020. This is because the likelihood of a default scenario
within the ensuing 12 months would increase materially, in our
view.

"We expect PHE will generate positive FOCF in 2020, despite
COVID-19 impacts. PHE's earnings will likely drop in 2020 due to
the consequences of COVID-19. Nevertheless, we believe management's
countermeasures, including the use of furlough schemes across its
European operations, will mitigate the loss of revenue in the
second quarter. In June 2020, which marked the first full month
after the end of the lockdown in France (PHE's main market),
mileage driven is swiftly recovering, sparking revenue growth for
PHE in line with pre-COVID-19 levels. This trend will likely
continue in second-half 2020, unless we see other episodes of
extensive lockdowns preventing drivers from using their cars.
Overall, we forecast revenue decline of 5%-7% in 2020, leading to
an S&P Global Ratings-adjusted EBITDA margin of 8.0%-9.0% compared
with 9.5% in 2019 (which included large one-off restructuring
charges of about EUR16 million related to the turnaround of online
business Oscaro, bought at end-2018). With capital expenditure
(capex) cut to EUR30 million-EUR35 million this year (versus EUR40
million in 2019), we forecast S&P Global Ratings-adjusted FOCF of
EUR15 million-EUR20 million in 2020 compared with EUR11 million in
2019."

Although PHE's business fundamentals remain supportive, its highly
leveraged capital structure constrains the rating. PHE should
continue to benefit from more favorable industry trends than for
typical auto suppliers. This is because auto-parts distribution is
less cyclical than new car sales and depends primarily on the size
of the car park, its average age, and the mileage. This is partly
reflected in the stability of the company's S&P Global
Ratings-adjusted EBITDA margin, which has remained at 9%-10% over
the past five years. Another cause of limited volatility in
operating profitability is the company's ability to derive
purchasing synergies through market consolidation. Conversely, one
major constraint to PHE's creditworthiness is its highly leveraged
capital structure, reflected in S&P Global Ratings-adjusted debt to
EBITDA of 8.2x in 2019, increasing toward 10.0x in 2020 then
falling below 8.5x in 2021. The company's high indebtedness also
constrains FOCF due to the heavy interest burden (cash interests of
about EUR50 million in 2019).

S&P said, "The negative outlook reflects our view that, even
assuming the planned EUR300 million refinancing is executed
smoothly, PHE could have difficulty fulfilling its debt maturities.
This is notably because the group is highly leveraged with a heavy
interest burden restraining its capacity to generate sizable
positive FOCF.

"We could lower our ratings on PHE if its debt to EBITDA remains
above 8.5x by 2021, or if its FOCF turns negative.

"We could also lower our ratings to the 'CCC' category if PHE does
not repay its RCF by the end of the year, or if it is unable to
refinance the remaining 2022 notes in the same timeframe.

"We could revise our outlook to stable if PHE successfully
refinances its remaining 2022 notes by year-end and improves its
operating performance such that debt to EBITDA decreases to below
8.5x and FOCF stays positive."




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

WEBUILD SPA: Fitch Affirms BB LongTerm IDR, Outlook Negative
------------------------------------------------------------
Fitch Ratings has affirmed Milan-based engineering and construction
(E&C) company Webuild S.p.A.'s (formerly Salini Impregilo S.p.A.)
Long-Term Issuer Default Rating (IDR) and senior unsecured rating
at 'BB'. The Outlook on the IDR is Negative.

The rating affirmation reflects Webuild's solid order backlog and
expected improvement to the construction market in 2021 leading to
a rebound in profitability and return in leverage to pre-pandemic
levels. Fitch expects that impact on Webuild's net leverage from
the acquisition of Astaldi will be modest and the company to
maintain a solid business profile, which Fitch regards as being in
line with an investment-grade rating. Execution risk related to the
Astaldi acquisition is partly offset by potential synergies and the
company's knowledge of the target due to a large share of common
projects in the order backlog.

The Negative Outlook reflects limited rating headroom due to high
leverage, coupled with short-term profitability pressures and
reduced cash flow visibility due to the acquisition of Astaldi and
impact of the pandemic. A prolonged adverse market environment or
problems with Astaldi integration could translate into
higher-than-expected cash consumption, putting additional pressure
on the rating.

KEY RATING DRIVERS

High Leverage: Fitch views Webuild's leverage as high for the
rating. Fitch expects funds from operations (FFO) net leverage to
remain above 3.0x by 2021, which is higher than the 'BB' rating
median of 2.0x. Fitch assumes that net leverage will peak in 2020,
before declining to its pre-pandemic levels in 2021 on expected
recovery of the construction market. Potential deleveraging in
subsequent years is subject to market conditions and execution risk
related to acquisition of Astaldi.

Pandemic Weighs on Short-Term Profitability: Fitch expects a
decline in EBITDA margins and high working capital requirements in
2020, driven by the impact of coronavirus-related disruptions. The
company has managed to maintain activity at most of its
construction sites. Nevertheless, Fitch expects profitability
pressures due to temporary slowdown across many projects. Overall,
Fitch assumes around a 25% decline in EBITDA in 2020 and neutral
free cash flow (FCF), partly underpinned by higher advance payments
related to Italian Relaunch Decree measures.

Neutral FCF Through the Cycle: Fitch forecasts an improved
construction market backdrop in 2021 leading to a rebound in
profitability. Fitch forecasts that FFO generation will further
improve in 2021-2022 but it will be largely absorbed by greater
working capital outflows and increasing capex needs, which is a
function of Webuild's sizeable backlog. This will lead to broadly
neutral FCF generation through the cycle.

Rising Working Capital Requirements: Fitch expects that working
capital requirements will increase in the medium term, driven by
its higher backlog growth assumptions. Fitch assumes that Webuild's
revenues will increase by around two-thirds in the next four years.
Fitch believes the risk of rising working capital needs is partly
offset by growing exposure to lower-risk markets, including the US
and Australia. In the short term, working capital consumption will
be also reduced by high advance payments supported by the Italian
Relaunch Decree measures, which may increase advance payments on
public works for Italian contractors to up to 30%.

Solid Standalone Business Profile: Fitch expects Webuild's business
profile to remain solid following planned acquisitions. The current
business profile is mainly underpinned by leading market positions
in niche markets, a solid order backlog and sound geographical
diversification. The company is the global leader in the water
infrastructure sub-segment and boasts leading positions in civil
buildings and transportation. Offsetting these positives are
significant project concentration and significant structural
working capital requirements.

Mixed Impact of Astaldi Acquisition: Fitch expects that the planned
acquisition of Astaldi will have a mixed impact on Webuild's
business profile. A significant increase in scale and stronger
market position in the domestic market will be offset by assumed
higher working capital requirements. Fitch assumes a broadly
similar order book diversification after completion of the
acquisition.

Resilient Construction Backlog: Its solid construction backlog at
end-2019 was strengthened by resilient new orders in the first
months of 2020. Fitch expects muted new order intake for the whole
of 2020, followed by a rebound in 2021 to above 1x book-to-build.
Fitch assumes that Astaldi will contribute an additional EUR2
billion-EUR2.3 billion of new orders annually in 2021-2023. In
2019, new orders amounted to EUR8.1 billion (1.7x book-to-build)
and the total construction backlog increased 11% to EUR29.5
billion. Its rating case excludes backlog contribution from the
high-speed rail line construction project in Texas, which is
pending final approval.

Growing Exposure to Developed Markets: Fitch views positively
Webuild's increasing share of new projects in lower-risk countries,
especially in the US and Australia. In 2019, the company generated
over 75% of new orders in the US, Australia and Europe. The
commercial pipeline is currently strongly focused on North America,
Europe, Middle East and Australia and Fitch expects declining
exposure to higher-risk markets including Ethiopia.

DERIVATION SUMMARY

In contrast to other Fitch-rated engineering & construction
entities, Webuild has a limited presence in concessions. Its
strategy focuses on large, complex, value-added infrastructure
projects with high engineering content. The acquisition of Lane,
completed in January 2016, enhanced Webuild's presence in the US,
which is now one of the key countries for the company and mitigates
its presence in higher-risk developing countries, especially
Ethiopia.

While its business profile is solid, its net leverage exceeds that
of higher-rated peers such as Ferrovial SA (BBB/Stable), which
generates stable dividend streams from their concession business.
Webuild's business profile is stronger than Grupo Aldesa's
(BB-/Stable) mainly due to larger scale of operations, stronger
market position and project diversification. Grupo Aldesa's credit
profile also benefits from rating uplift driven by the company's
linkage with ultimate parent China Railway Construction Corporation
Limited.

KEY ASSUMPTIONS

  - Acquisition of Astaldi completed at end-2020

  - No other acquisitions and disposals in 2020-2023

  - Low single-digit organic revenue growth in 2020 and
mid-single-digit revenue growth in 2021-2022

  - Revenue contribution from Astaldi of around EUR2.0 bn in 2021
and EUR2.3 bn annually in 2022-2023

  - EBITDA margin at 7% in 2020 and 8% in 2021-2023

  - Working capital requirement of about EUR90 million in 2020 and
EUR180 million-EUR190 million in 2021-2023

  - Capex at 2% of sales in 2020 and 2.5% annually in 2021-2023

  - Dividend payout of about 30% in 2021-2023

RATING SENSITIVITIES

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

  - FFO net leverage below 2.0x on a sustained basis

  - Reduced concentration of top-10 contracts to below 40%

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

  - FFO net leverage above 3.0x in the next 12-18 months

  - Inability to generate at least neutral FCF in the short term
  
  - Weak performance on major contracts with a material impact on
profitability

  - Problems in receivables collection

  - Increasing share of high-risk countries

LIQUIDITY AND DEBT STRUCTURE

Sufficient Liquidity: At end-2019, liquidity was supported by about
EUR630 million of readily available cash (excluding EUR391 million
deemed not readily available by Fitch) and EUR550 million of
undrawn committed banking facilities. In January 2020, Webuild
issued a EUR250 million bond out of which EUR127 million was
offered in exchange for its 2021 bond. Fitch expects neutral FCF in
2020. This provides sufficient headroom to cover an expected EUR225
million payment for Astaldi and total short-term debt maturities of
EUR314 million (including assumed EUR85 million repayment of
acquisition-related debt due 2022). Fitch views positively the
company's solid relationships with local banks and access to
capital markets.

Senior Unsecured Debt: The debt structure consists mainly of two
euro-denominated senior unsecured bonds with a total nominal amount
of EUR979 million and corporate loans with a total nominal amount
of EUR645 million. The company's bond maturities for EUR479 million
and EUR500 million bonds are set for June 2021 and October 2024,
respectively. Its new EUR250million-bond issued in January 2020
matures in 2027. Webuild also raises fairly modest short- and
medium-term construction debt at the level of local subsidiaries as
well as modest long-term concession debt.

ESG CONSIDERATIONS

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




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

ALCOA NEDERLAND: Fitch Rates New $500MM Sr. Unsec. Notes BB+
------------------------------------------------------------
Fitch Ratings has assigned a 'BB+'/'RR4' rating to Alcoa Nederland
Holding B.V.'s new $500 million senior unsecured notes. The notes
rank pari passu with the $750 million 6.75% notes due 2024, the
$500 million 7.00% notes due 2026, and the $500 million senior
unsecured notes due 2028. Proceeds will be used for general
corporate purposes.

The ratings of subsidiary, Alcoa Nederland Holding B.V., benefit
from an Alcoa Corporation guarantee and reflect Alcoa's modest
leverage; leading positions in bauxite, alumina and aluminum;
strong control over costs and spending; and flexibility afforded by
the scope of its operations.

The Stable Outlook reflects Fitch's view that operations will
continue to see no material impact from the coronavirus, and that
cost and capex reductions will limit FCF burn over 2020 and 2021 to
below $100 million in aggregate after minimum pension
contributions.

KEY RATING DRIVERS

Alcoa of Australia Tax Assessment: Fitch believes the near-term
payment by Alcoa of the equivalent of roughly $44 million, and the
cost of prolonged litigation will be manageable within the current
rating sensitivities.

The Australian Taxation Office issued Notices of Assessment
received by Alcoa of Australia on July 7, 2020 claiming income
taxes payable of approximately the equivalent of $147 million and
compound interest on the tax aggregating the equivalent of about
$488 million. The Australian Taxation Office is also expected to
assess administrative penalties expected to be communicated after
Aug. 1, 2020. In consideration of the Australian Taxation Office's
dispute resolution practices, Alcoa of Australia will pay 50% of
the assessed income tax amount or the equivalent of about $74
million, of which Alcoa's share is about $44 million. Alcoa of
Australia is part of Alcoa World Alumina and Chemicals, an
unincorporated joint venture 60% owned by Alcoa and 40% owned by
Alumina Ltd.

Alcoa maintains that the sales subject to the Australian Taxation
Office's review were the result of arm's length transactions by
Alcoa of Australia over two decades, and were made at arm's length
prices consistent with the prices paid by other third-party alumina
customers. Alcoa of Australia states that it will continue to
defend this matter and pursue all available dispute resolution
methods, but that the ultimate resolution is uncertain at this
time, and that the potential loss may materially affect its results
of operations and financial condition.

If Alcoa of Australia is unsuccessful, Alcoa's share of the tax
assessment and initial compounded interest would be the equivalent
of approximately $88 million and $293 million, respectively, before
further interest accruals during the dispute.

Low-Cost Upstream Position: Alcoa's bauxite costs are in the low
second quartile, alumina costs are in the first quartile, and
aluminum costs are in the high second quartile of global production
costs. Most of Alcoa's alumina facilities are located next to its
bauxite mines, cutting transportation costs and allowing consistent
feed and quality. Aluminum assets benefit from prior optimization
and smelters co-located with cast houses to provide value-added
products, including slab, billet and alloys.

Modest Debt Levels: At March 31, 2020, total debt of $1.8 billion
was 1.5x operating EBITDA after dividends from associates and
distributions to minority interests. Pro forma for the $500 million
new notes, total debt-to-EBITDA after dividends from associates and
distributions to minority interests would have been 2.0x. Fitch
expects operating EBITDA of at least $900 million in 2020, net
debt-to-EBITDA to be less than 1.5x at YE 2020, and total
debt-to-EBITDA to remain under 2.5x beyond 2020 assuming average
London Metal Exchange (LME) aluminum prices at $1,560/tonne (t) in
2020 and $1,600/t in 2021. FFO-leverage is expected to be high for
the rating in 2020 given that 2020 tax will be paid on the 2019's
earnings but remain under 3.0x, in 2021 and thereafter.

Sensitivity to Aluminum Prices: While bauxite and alumina are
priced relative to the market fundamentals in those markets and
those activities account for the bulk of Alcoa's earnings, over the
long run, these product prices are sensitive to aluminum prices.
The company estimates that a $100/t change in the LME price of
aluminum affects EBITDA by $219 million.

Alcoa has some value-added, energy and conversion income, and some
power costs are LME-linked but the company will remain exposed to
the fortunes of the aluminum market.

Aluminum Prices Pressured: Fitch cut its aluminum price assumptions
three times since March 26, 2019, most recently on April 6, 2020,
first on weakening auto demand and rising production in China and
more recently to account for the recessionary impacts of the
coronavirus and efforts to restrict its spread. Aerospace, auto and
eventually construction demand are expected to be significantly
down. Fitch's price assumptions for London Metal Exchange (LME)
spot prices are $1,560/t for 2020, $1,600/t for 2020 and $1,800/t
for 2021 and $1,900/t longer term.

Supply rationalization improved the average LME aluminum cash price
from about $1,660/t in 2015 and $1,620/t in 2016 to about $1,969/t
in 2017. The LME aluminum price averaged about $2,110/t in 2018 on
dislocation from sanctions on RUSAL, and $1,791/t in 2019 as trade
tensions bit into demand growth while supply rebounded. The current
spot price is $1,597/t compared with the average in 1Q 2020 of
$1,690/t.

On April 22, 2020 the company reported that 20% of China's
production was cash negative exceeding $100/t and a further 40% was
cash negative up to $100/t at prevailing prices.

Fitch notes that the company's capital structure was set in a
$1,600/t aluminum price environment and the sole debt issue since,
$500 million in 2018, was used to fund contributions to pension
plans, which provide flexibility in making required contributions
going forward. While the $500 million new notes are for general
corporate purposes, Fitch expects total debt to return to roughly
$1.8 billion longer term.

AWAC Considerations: The company's alumina and bauxite operations
are owned through Alcoa World Alumina and Chemicals (AWAC). In
2019, AWAC generated $1.6 billion in adjusted EBITDA and paid $1.0
billion in dividends, net of capital contributions. AWAC's dividend
policy is generally to distribute at least 50% of the prior
calendar quarter's net income of each AWAC company and certain
companies will also be required to distribute excess cash. Alcoa
consolidates AWAC's results, and Fitch expects minority
distributions net of contributions to range from about $100 million
to $150 million per year under its price assumptions.

AWAC currently has scant debt, and incurrence would fall under the
subsidiary debt basket in the Alcoa's revolver, equal to the
greater of $150 million and 1% of Alcoa's consolidated tangible
assets thereby limiting the risk of structural subordination.

Pension Underfunding: At Dec. 31, 2019, minimum required pension
funding through 2024 was estimated at $1.2 billion and the funded
status of direct benefit plans was a $1.5 billion shortfall. The
discretionary contributions made in 2018 result in flexibility
regarding future mandatory minimum payments. In addition, the
company reported that the coronavirus stimulus legislation allows
2020 pension funding of about $220 million to be deferred to Jan.
1, 2021. Fitch expects Alcoa to manage its contributions through
cash generation and cash on hand, making voluntary contributions
consistent with its capital allocation policies when generating
excess cash flow and using flexibility to defer to shore up
liquidity when cash balances are expected to be below $1 billion.

Alcoa intends to freeze the defined pension plans for U.S. and
Canadian salaried employees and eliminate retiree medical
subsidies, effective Jan. 1, 2021.

DERIVATION SUMMARY

Alcoa's low debt levels position it well against 'BB+' metals
peers. While pension obligations are high and required
contributions are expected to be manageable, the company is taking
further action to reduce obligations, which is expected to be FCF
neutral to positive on average. Fitch expects EBITDA margins to
average around 11% based on its price assumptions over the next 24
months.

Comparable Fitch-rated peers include United Company RUSAL Plc
(B+/Stable), China Hongqiao Group Limited (BB-/Stable), and
Aluminum Corporation of China Ltd. (Chalco; A-/Stable).

RUSAL benefits from substantial size (it is the largest aluminum
company outside of China) and its stake in PJSC MMC Norilsk Nickel.
Fitch expected EBITDA margins to range from 10% to 12% prior to the
pandemic. Prior to the pandemic, Fitch expected FFO-adjusted
leverage to decline from 4.7x at YE 2019 to 3.5x and below in 2021.
RUSAL's rating also captures the higher-than-average systemic risks
associated with the Russian business and jurisdictional
environment.

Hongqiao benefits from greater size, higher vertical integration
and EBITDA margins above 20%. Before the pandemic, Fitch expected
Hongqiao to continue to report positive FCF in the near term and
FFO net leverage to remain at 2.4x-2.7x. The company's ratings are
constrained by weak internal controls and uncertainties regarding
the policy implications of unpaid power tariffs and potential
surcharges on power costs, which could significantly increase
production costs.

Chalco is rated on a top-down approach based on the credit profile
of parent Chinalco, which owns 33% of the company. Fitch's internal
assessment of Chinalco's credit profile is based on its
Government-Related Entities Rating Criteria and is derived from
China's (A+/Stable) rating, reflecting its strategic importance.
Chalco's stand-alone credit profile stands at 'B+', due to high
financial leverage and EBITDA margins in the 8%-9% range.

KEY ASSUMPTIONS

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

  -- Fitch commodity price assumptions for aluminum (LME spot) of
$1,560/t in 2020, $1,600/t in 2021 and $1,800/t in 2022;

  -- Estimated shipments at guidance;

  -- Capex at guidance;

  -- Pension contributions deferred while cash on the balance sheet
is less than $1 billion and capacity exists;

  -- Excess cash above $1 billion on hand to be used to repay debt
once the financial risk of the pandemic is resolved, expected by
the end of 2Q 2021.

RATING SENSITIVITIES

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

  -- EBITDAR margins expected to be sustained above 15%;

  -- FFO leverage expected to be sustained below 2.5x;

  -- Meaningful and sustainable reduction in unfunded pension
status.

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

  -- EBITDAR margins sustained below 10%;

  -- FFO leverage expected to be sustained above 3.0x;

  -- Total debt/EBITDA expected to be sustained above 2.5x;

  -- LME aluminum prices expected to be sustained below $1,600/t.

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: Cash on hand was $829 million at March 31, 2020
and, pro forma for the note issue, would have been about $1.3
billion. In addition, the company has an undrawn $1.5 billion
senior secured revolver due to mature on Nov. 21, 2023. The company
amended the revolver on April 21, 2020 to increase the maximum
leverage ratio (substantially total debt/EBITDA) from April 1, 2020
to April 1, 2021 to 3.0x from 2.5x. The interest expense coverage
ratio (substantially EBITDA to cash interest expense) covenant
remained unchanged at a minimum of 5.0x.

The revolver was further amended on June 24, 2020 to allow for 1)
netting of interest or financing cost accrued on the new notes for
cash interest expense calculation purposes; and 2) netting from
total debt of the lesser of a) unrestricted cash on the balance
sheet and b) proceeds of the new notes to the extent not used to
repay existing notes, through the quarter ended June 30, 2021
provided the company would have to provide cash netting notices for
the March 31, 2021 and June 30, 2021 quarters and that the revolver
availability for those quarters would be reduced by one-third of
the net proceeds of the new notes.

In addition, the amendment allows for an add-back to the
consolidated EBITDA calculation, in any period, of non-cash
expenses during such period in connection with non-service net
periodic benefit costs up to $125 million with respect to any
consecutive four fiscal quarter period.

Fitch expects the company to have an FCF drain of less than $150
million in 2020 but generate FCF thereafter before voluntary
pension contributions. Scheduled maturities are modest through
2023.


ALCOA NEDERLAND: Moody's Assigns Ba1 Rating on New Unsec. Notes
---------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to Alcoa Nederland
Holding B.V.'s new senior unsecured notes, guaranteed by Alcoa
Corporation (Alcoa) and restricted subsidiaries. All other ratings,
including the Speculative Grade Liquidity Rating remain unchanged.

"Although the increase in gross debt will contribute to a slightly
more elevated leverage position, Alcoa will continue to exhibit
excellent liquidity and strong cash balances relative to
requirements" said Carol Cowan, Moody's Senior Vice President and
lead analyst for Alcoa.

Assignments:

Issuer: Alcoa Nederland Holding B.V.

Senior Unsecured Regular Bond/Debenture, Assigned Ba1 (LGD4)

RATINGS RATIONALE

The Ba1 CFR at ANHBV considers its parent's (Alcoa) position as a
leading producer of bauxite, alumina and aluminum (including cast
products), geographical and aluminum product diversity, and
operational quality. From a business profile perspective, Alcoa is
well positioned within its products and markets served.
Additionally, the company has a good cost production profile,
driven by continued refocusing of its refining and smelting system
and idling/closure of higher cost facilities.

However, although Alcoa has 3rd party sales in both its bauxite and
alumina segments, the CFR considers the company's exposure to
essentially a single metal commodity-- aluminum- as the demand for
bauxite and alumina is directly correlated to the demand for
aluminum. Additionally, the alumina and aluminum markets exhibit
volatility driven by global growth expectations and industrial
production levels. Further considerations include industry
overcapacity, particularly given the increase in Chinese smelting
capacity, which offsets the positive impact of supply curtailments
and closures by other producers, supply/demand imbalances, and
market sentiment. Prior to the outbreak of the coronavirus, the
bauxite, alumina and aluminum markets were expected to be in
surplus in 2020, and this surplus is expected to widen,
particularly in aluminum.

Alcoa's EBITDA of $1.5 billion in 2019 was well below 2018 levels
although Moody's believes 2018 aluminum and alumina prices were
over inflated due to supply issues for alumina and aluminum as well
as the impact of Section 232 tariffs imposed in the US in 2018 and
sanctions against UC RUSAL (Rusal). Consequently, Moody's does not
view 2018 as a reasonable comparative year.

Despite the lower EBITDA in 2019, Alcoa's leverage position, as
measured by the debt/EBITDA ratio remained acceptable at 2.3x,
providing a degree of cushion for deterioration in 2020 from the
impact of the coronavirus on global economies and aluminum demand.
Supply chain backup is anticipated on the lower automotive and
aerospace build rates. Additionally, broader manufacturing and
industrial markets will see demand deterioration and recovery is
expected to be protracted across most industries. Should average
aluminum prices in 2020 range between approximately $1,500/MT and
$1,600/MT Moody's estimates that leverage, as measured by the
debt/EBITDA ratio (including Moody's standard adjustments and the
increase in debt) would range between 3.1x and 2.8x. Although
aluminum prices have rallied recently (from a low of around
$1,410/MT in early April to currently around $1,580/MT) from
improving economic growth in China as well as improving sentiment,
given the global demand weakness, Moody's does not expect much
further upward momentum, absent unexpected events.

The stable outlook incorporates Alcoa's solid liquidity position at
March 31, 2020 and anticipates that the company will remain focused
on its cash generation and levers it has to minimize cash burn.
Additionally, the company evidenced moderate leverage relative to
its CFR of 2.2x at March 31, 2020 providing some cushion for
deterioration in performance given the challenging market
conditions and weakening in aluminum and alumina prices due to the
coronavirus outbreak, the duration of which is uncertain. While
weaker alumina prices relative to 2019 will impact performance in
this segment, such will benefit performance in the smelting
segment. Additionally, lower fuel input costs, electricity costs
and benefits from deprecating currencies in countries where Alcoa
operates will provide some mitigation although reduced hydro sales
in Brazil will negate smelter power cost savings.

The SGL-1 speculative grade liquidity rating acknowledges the
company's solid liquidity as evidenced by its cash position of $829
million at March 31, 2020 and its $1.5 billion secured revolving
credit facility (RCF -unrated) at Alcoa Nederland, guaranteed by
Alcoa and maturing in November 2023. Alcoa's 2nd quarter
preliminary results indicate that cash at June 30, 2020 had
increased to more than $950 million on working capital management
and other actions that contributed to improved costs.

The RCF is secured by substantially all assets. The RCF was amended
in April 2020 to provide that for the 4 quarters from April 1, 2020
the consolidated debt/EBITDA covenant shall not exceed 3x during
the amendment period and otherwise 2.5x. The Consolidated
EBITDA/interest covenant requirement remained at no less than 5x.
At March 31, 2020 the borrowing capacity to remain in compliance
with the consolidated debt/EBITDA covenant was $1.43 billion. In
June 2020 the RCF was further amended to adjust the calculations
for cash interest expense and total indebtedness for the 4
consecutive quarters from June 2020 through June 2021. This
amendment allows the netting of proceeds from senior note offerings
to year-end December 31, 2020; this can be extended through each of
the March 2021 and June 2021 quarters however post December 31,
2020, availability under the RCF would reduce by 1/3 of the net
proceeds from any such debt issuance.

The company has taken a number of actions to conserve liquidity
including the deferral of funding of the pension plan to January
2021 ($220 million) reduction in capital expenditures to $375
million and other cost saving measures.

Alcoa's consolidated subsidiary, Alcoa of Australia Limited (AofA
part of the AWAC joint venture between Alcoa -- 60% and Alumina
Limited -- 40%) has received a notice from the Australian Taxation
Office (ATO) of additional income taxes due in the amount of $147
million (A$214 million) excluding interest or other penalties. In
accordance with ATO dispute practices, AofA will pay 50% or roughly
$74 million of the assessed additional tax amount in the third
quarter of 2020. This can be comfortably accommodated within the
overall liquidity profile.

There are no material maturities until the revolver expires in
November 2023.

The Ba1 senior unsecured debt rating, at the same level as the CFR,
reflects the preponderance of unsecured debt in the capital
structure, given the level of unsecured notes and unfunded pension
obligations relative to the $1.5 billion secured revolving credit
facility.

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.

As a primary aluminum producer, Alcoa faces numerous environmental
risks across the totality of its operations with regulations
varying significantly from country to country and region to region.
Environmental considerations are not a factor in Alcoa's CFR.

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

Given the volatility in the commodities in which Alcoa participates
and potential for wide swings in performance, further upward rating
movement could be limited. Additionally, upward rating movement to
investment grade is constrained by the secured nature of the bank
revolving credit facility. However, ratings could be upgraded
should Alcoa be able to sustain an EBIT margin of at least 17.5%,
EBIT/interest of at least 7x, and debt/EBITDA of no more than 2x.
Continued discipline in its capital allocation strategy and
financial policy would also be a consideration.

The ratings could be downgraded should EBIT/interest be sustained
below 4.5x, EBIT margins be less than 8%, leverage exceed and be
sustained above 2.75x. as the impact of the current difficult
economic conditions ease into 2021. Greater negative free cash flow
than expected and liquidity contraction would also be a downgrade
consideration.

Alcoa Nederland is a wholly owned subsidiary of Alcoa Corporation.
Headquartered in Pittsburgh, PA, Alcoa holds the bauxite, alumina,
aluminum, cast products and energy business as well as the rolling
operations in Warrick, Indiana. Alcoa's bauxite and alumina
business are conducted through its AWAC joint venture with Alumina
Ltd (60% Alcoa/40% Alumina Limited). Revenues for the twelve months
ended March 31, 2020 were $10.1 billion.

The principal methodology used in this rating was Mining published
in September 2018.


ALCOA NEDERLAND: S&P Rates New $500MM Senior Unsecured Notes 'BB+'
------------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '3'
recovery rating to Alcoa Nederland Holding B.V.'s proposed $500
million senior unsecured notes. The '3' recovery rating indicates
our expectation for meaningful (50%-70%; rounded estimate: 55%)
recovery in the event of a payment default. Alcoa Nederland Holding
B.V. is a subsidiary of Alcoa Corp., which will guarantee the
notes. S&P expects the company to use the proceeds from the
unsecured notes to add cash to its balance sheet, which will not
affect its net debt when calculating our adjusted credit ratios.

S&P revised its outlook on Alcoa to negative from stable on June
26, 2020, to reflect the risk that its credit measures could remain
elevated beyond 2020 if the conditions in the aluminum market do
not improve or its strategic asset reviews yield little profit
benefit or debt reduction. If the company generates $850
million-$950 million of EBITDA in 2020, its adjusted debt leverage
may increase toward 4x during the year from 2x as of the end of
2019. In addition, management's recent disclosure of a notice of
assessment from the Australian Taxation Office (ATO) will not
affect our ratings until the timing and size of the obligation plus
any penalties are clearer. The $380 million potential liability
disclosed in the notice would not likely be a decisive rating
factor given that the company's leverage has ranged from 1x-4x over
the last few years due to its cyclical earnings and heavy capital
intensity.


AMMEGA GROUP: Fitch Lowers LongTerm IDR to B-, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has downgraded Ammega Group B.V.'s Long-Term Issuer
Default Rating to 'B-' from 'B'. The Outlook on the IDR is Stable.

The downgrade reflects Fitch's expectations that Ammega's leverage
will remain well above its negative rating sensitivities in the
medium- to long-term. This is due to the group's acquisitive
strategy, which restricts deleveraging capacity, and some expected
pressure on revenue and profitability related to the pandemic. The
Stable Outlook reflects Ammega's comfortable liquidity position,
supported by Fitch-forecast positive cash flow generation during
the crisis.

The ratings are supported by the group's leading market position as
a global manufacturer of conveyor and power transmission belts with
favourable growth prospects, organically and through bolt-on
acquisitions, as well as profitability and cash-flow generation
that are above the rating.

KEY RATING DRIVERS

Higher-than-Expected Leverage: Fitch forecasts Ammega's funds from
operation (FFO) gross leverage at 9.7x at end-2020, which is higher
than its previous forecast and above its negative rating
sensitivity of 7x for the previous 'B' rating. It is due to
lower-than-expected EBITDA in 2020, following the pandemic, and
slower synergy realisation in comparison with its previous
assumptions.

Prolonged Deleveraging: Fitch expects FFO gross leverage to
decrease to 8.3x in 2023 due to margin- accretive recent
acquisitions and ongoing operating and business synergies. However,
Fitch expects Ammega will take longer than forecast to deleverage
to a level that is in line with a 'B' rating due to slower
integration of acquisitions and realisation of synergies. As a
result, Fitch expects leverage to remain well above its previous
negative rating sensitivity of 7x in the medium- to long-term,
leading to the downgrade. A deviation from the expected
deleveraging path due to higher-than-expected appetite for
acquisitions could result in further pressure on the rating.

Acquisition Improves Diversification: Fitch views the
equity-financed acquisition of the US lightweight belting
fabricator Midwest Industrial Rubber (MIR) in January 2020 as a
good strategic fit for Ammega. Fitch believes the acquisition will
enhance the group's position in the American market and diversify
the existing operations in end-markets, customers and product
offering.

Synergies Drive EBITDA Growth: MIR enjoys solid margins and Fitch
forecasts its combination with Ammega to strengthen EBITDA margins
in 2020. Profitability is further supported by synergies, related
to both the integration of MIR and the previous merger of Ammeral
Beltech and Megadyne, and by cost savings. Fitch expects pressure
on profitability due to lower demand in the global manufacturing
industry being only partly offset by resilient demand in Ammega's
main end-market in food. Hence, Fitch forecasts EBITDA margin at
17.1% in 2020 and 19.1% in 2021, which is stronger than the 'B-'
rating but in line with or below that of peers.

Resilient Free Cash Flow (FCF): Ammega has a profitable and
cash-generative financial profile, supported by the capex-light
nature of its business (which represents less than 4% of sales). In
2019, its FCF margin turned negative and was under pressure from
lower-than-forecast profitability, in combination with costs and
capex related to the Ammeral Beltech and Megadyne merger in 2018.
Fitch expects it to recover in 2020 and reach around 5% in 2021,
given no expected dividend payments and low capex. Fitch expects
positive FCF to be reinvested in EBITDA- and cash flow-accretive
bolt-on acquisitions. Fitch views healthy FCF margins as critical
for the ratings, given the company's high leverage.

Supportive Product Demand: Fitch expects growth to come from
increasing application and installation of belt products to support
the rise of automation in industrial processes, and greater
precision and efficiency requirements from direct end-users, as
well as original equipment manufacturers and distributors. The
replacement cycle for belts of up to two years drives Ammega's
strong aftermarket activity. About 70% of revenue are generated
from replacement and upgrading of belts. Fitch believes that
Ammega's ability to cross-sell products from Ammeral Beltech and
Megadyne and retain recurring replacement sales should support
earnings resilience over the next four years.

DERIVATION SUMMARY

Ammega has market-leading positions within the niche
belt-manufacturing segment, supported by its diverse product
portfolio, geographical footprint and broad customer base. Although
the group's direct competitors are larger and more diversified
manufacturers, their belting segment is smaller or equal to the
production capacities within Ammega. On the belt segment, the group
faces direct competitors in Forbo, Rexnord Corporation and Gates.
While these peers are bigger and more diversified, Ammega is
exposed to more stable end-markets and generates EBITDA and FCF
margins in line with peers', albeit with substantially higher
leverage.

Ammega is also much smaller and has far higher leverage than
investment-grade US industrial conglomerates, such as Xylem Inc.
(BBB/Stable), The Timken Company (BBB-/Negative) and Flowserve
Corporation (BBB-/Negative).

KEY ASSUMPTIONS

  - Revenue to increase 15% in 2020, as MIR and bolt-on
acquisitions adding incremental sales offset the impact of
COVID-19. Revenue growth thereafter based on further bolt-on
acquisitions.

  - EBITDA margin to improve to 17.1% in 2020 and further to 19.5%
in 2023, driven by accretive bolt-on acquisitions, cost synergies,
efficiency improvements and revenue growth. Slower synergy
realisation than previously expected in 2020 due to COVID-19.

  - Capex at 3.2% of sales until 2023.

  - Average working capital outflow equivalent to 2% of sales until
2023.

  - MIR acquisition finalised in January 2020.

  - No dividend payments.

RECOVERY ANALYSIS

Fitch's recovery analysis reflects a going-concern approach due to
a higher value in maintaining Ammega as a business post-distress,
than being liquidated. A 25% discount to forecast 2020 EBITDA of
EUR146 million has been applied to derive going-concern EBITDA of
EUR110 million. Fitch used a 5.5x multiple, in line with an average
multiple for industrial and manufacturing peers in the 'B' rating
category.

After a 10% deduction for administrative claim its debt waterfall
analysis generated a ranked recovery in the 'RR4' band, indicating
a 'B-' instrument rating. The waterfall analysis output percentage
on current metrics and assumptions for senior debt was 45%. The
decline in recovery is explained by Ammega increasing its term loan
B (TLB) by EUR150 million in February 2020 to repay EUR100 million
drawn on its revolving credit facility (RCF) and place EUR50
million as cash on balance sheet.

RATING SENSITIVITIES

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

  - FFO gross leverage below 6.5x on a sustained basis

  - FFO interest coverage above 2.0x on a sustained basis

  - FCF margin above 5% on a sustained basis

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

  - FFO gross leverage greater than 8.5x on a sustained basis

  - FFO interest coverage below 1.5x on a sustained basis

  - EBITDA margin below 15% on a sustained basis

  - Neutral to negative FCF on a sustained basis

  - Acquisition activity increasing the group's risk profile

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: As of end-1Q20, Ammega had a Fitch-adjusted
cash balance of EUR230 million. It included a fully drawn EUR150
million RCF as a precautionary measure and EUR50 million from an
enlarged TLB in February 2020. The RCF was repaid by EUR95 million
in 2Q20. Ammega has no debt maturities until 2025 and Fitch expects
positive FCF margins in low-to-mid-single digits to support
liquidity from 2020; however, this could partly be eroded by
expected bolt-on acquisitions.

Moderate Refinancing Risk: AMMEGA's debt comprises a seven-year
senior secured covenant-lite EUR980 million TLB (increased from
EUR830 million in February 2020) with maturity in 2025 and an
eight-year USD186 million second-lien facility with maturity in
2026. It also has a EUR150 million RCF (temporarily partly drawn)
maturing in early 2025 as well as local debt of EUR38 million with
various group entities. Refinancing risk is deemed moderate
although with concentrated maturity.

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).




===========
R U S S I A
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BANK SOYUZ: S&P Affirms 'B+/B' ICRs, Outlook Stable
---------------------------------------------------
S&P Global Ratings affirmed its 'B+/B' long- and short-term issuer
credit ratings on Russia-based Bank SOYUZ AO. The outlook is
stable.

S&P said, "The affirmation reflects our expectation that Bank SOYUZ
will withstand the pressure from the worsened economic conditions
in Russia following the COVID-19 outbreak and subsequent economic
contraction. We think the bank's significant capital and liquidity
cushions will allow it to absorb the expected increase in credit
costs and related revenue pressures.

"We consider that Bank SOYUZ is following a conservative
risk-management policy in the context of the current market
turmoil. The bank has materially tightened its underwriting
procedures and we expect that its loan portfolio may contract by up
to 7% in 2020, with only slight recovery in 2021 depending on
operating conditions. We expect retail car loans and factoring
operations will then be the key lending growth drivers, in line
with the bank's mid-term strategy.

"We view positively that Bank SOYUZ has significantly cleaned up
its legacy problem loans, with Stage 3 loans decreasing to 9.8% of
gross loans as of April 1, 2020, from 15.5% at end-2018. That said,
we consider that the bank's track record of a conservative
underwriting policy is still relatively short and the current
economic challenges will test its ability to sustain asset quality
during the economic downturn.

"We expect Bank SOYUZ to sustain adequate capital buffers despite
pressure on the risk-adjusted capital (RAC) ratio from expected
higher credit losses. We forecast RAC of around 7.3%-7.4% over the
next two years. We anticipate the bank's net interest margin will
decline to around 4.5% in 2020--in view of the overall pressure on
margins in the Russian banking sector--and will rebound to around
4.9% in the next two years. We anticipate the bank's new loan loss
provisions will be around 2.0%-2.5% of total loans in the next two
years, broadly similar to our expectation for the Russian banking
sector.

"We expect Bank SOYUZ's funding base--mostly comprising corporate
and retail deposits--to remain stable, supported by longstanding
relationships with its largest corporate depositors and no reliance
on market funding. We positively highlight that the bank's stable
funding ratio has been above 120% over the past five years and
stood at 155% as of April 1, 2020."

Bank SOYUZ has a comfortable liquidity position; it does not rely
on any wholesale funding and its net broad liquid assets covered
72% of short-term customer deposits as of April 1, 2020.
Additionally, around 85% of the bank's securities on the same date
comprised investments in liquid government securities. In S&P's
view, this cushion will be sufficient to meet the bank's liquidity
needs in times of stress.

The stable outlook reflects S&P's view that Bank SOYUZ will
maintain its creditworthiness in the next 12 months amid the
deteriorated operating environment due to the COVID-19 pandemic.
Adequate capitalization, prudent underwriting, a stable funding
base, and substantial liquidity cushion will support the bank's
position.

S&P could lower the rating in the next 12 months if it observed
either:

-- The bank's asset quality weakening and credit costs increasing
materially above our expectations in the context of COVID-19
containment measures and economic contraction in Russia;

-- Unexpected large deposit outflows causing a strain on the
bank's funding or liquidity profiles; or

-- A weakening of the link between the bank and its ultimate
parent Ingosstrakh, resulting in deterioration of ongoing and
potential extraordinary support.

S&P considers a positive rating action on Bank SOYUZ unlikely in
the next 12 months. This is because it would require the bank to
have increased strategic importance for its parent or the
substantial strengthening of its RAC ratio to sustainably above
10%, which is not its base case.




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

EL CORTE INGLES: Fitch Affirms BB+ LT IDR, Outlook Negative
-----------------------------------------------------------
Fitch Ratings has affirmed El Corte Ingles S.A.'s (ECI) Long-Term
Issuer Default Rating (IDR) and senior unsecured rating at 'BB+'
and removed them from Rating Watch Negative (RWN). The Outlook on
the Long-Term IDR is Negative.

The removal of the RWN reflects the increased visibility of ECI's
liquidity after the end of the lockdown in Spain and the group's
success in building sufficient liquidity headroom though new credit
lines.

The Negative Outlook reflects the uncertainty about the pace and
shape of the economic recovery in Spain over the next three years,
which could delay ECI's deleveraging path.

The 'BB+' rating is supported by ECI's strong market position in
Spain, its expectation that funds from operations (FFO) adjusted
net leverage ratio will return to around 3.5x in FY23 (ending
February 2023), and by the financial flexibility provided by its
large unencumbered real estate asset base.

KEY RATING DRIVERS

Marked Impact from Coronavirus Lockdown: The closure of ECI's
department stores from mid-March to end-May led to a significant
loss of revenue and profits and put temporary pressure on
liquidity, partly due to strong working capital outflows Fitch
expects further pressure on discretionary retail over the next 18
months in Spain, with a 12% decline of consumer spending in 2020
followed by a rebound of only 4% in 2021. The uncertainty around
the pace of recovery and ECI's credit metrics at the exit point
supports the Negative Outlook.

Deleveraging Delayed: Fitch expects FFO-adjusted net leverage to
temporarily breach its negative rating sensitivity and peak in
FY21. Fitch expects the underlying deleveraging trend to resume in
FY22, as management remains fully committed over the long-term to
attaining an investment-grade rating, but given the current highly
uncertain economic environment, this carries execution risks and
could be delayed.

Fitch also views ECI's potential monetisation of its real estate
portfolio as a potential source of deleveraging should the economic
scenario worsen. The group is committed to achieving a net
debt/EBITDA leverage ratio below 2.0x.

Strong Performance Pre-pandemic: In FY20, ECI achieved leverage
metrics consistent with an upgrade to 'BBB-', in line with the
Positive Outlook that Fitch assigned in August 2019. This was
driven by a material improvement in FFO and a EUR0.7 billion
reduction in net debt, largely thanks to free cash flow (FCF)
generation. In the last three years, ECI improved its EBITDA by 10%
and reduced its net debt by 30% (from EUR4.0 billion to EUR2.8
billion).

Low but Resilient Profitability: ECI achieved margin expansion up
to FY20 despite continued pressure on retail prices. This was due
to cost efficiencies in its purchasing department and on personnel
expenses, which are the key items of ECI's cost structure at 70%
and 16% of sales, respectively. ECI benefits from low lease
expenses (0.9% of sales) compared with competitors, due to the
ownership of most of its stores and logistic centres.

Fitch expects the EBITDA margin to be weak in FY21 due to
difficulty in adapting the cost base to much lower sales but to
recover by FY23. ECI implemented a contingency plan to mitigate the
impact of the coronavirus outbreak, including purchase order
reductions and temporary lay-offs under government-subsidised
furlough schemes.

Adapting to Retail Challenges: Changes in consumer habits have been
particularly severe on the retail industry (and more specifically
fashion), mainly due to growth of the online channel, with
aggressive strategies from pure online operators leading to a more
challenging operating environment. Some of these challenges were
exacerbated by the COVID-19 disruption but ECI showed a positive
performance with online capabilities highly responsive to an
unparalleled increase in demand. ECI also benefits from the milder
penetration of e-commerce in Spain, although the gap with other
developed markets could close rapidly.

Flexibility from Valuable Real Estate Portfolio: ECI owns a large
real estate portfolio, whose value was appraised at around EUR17
billion by Tinsa in February 2020. Fitch views this portfolio as an
important source of financial and operational flexibility, as
assets can be sold or used as collateral in case of need. The sale
of parts of this real estate portfolio or non-core businesses could
help ECI reach target leverage metrics consistent with an
investment-grade rating over the medium term.

Since 2018, ECI has accelerated its real estate management policy
to achieve a more efficient structure through better use of its
retail space. In the past four years, ECI has obtained over EUR600
million from monetising non-core real estate assets, which enabled
it to reduce debt.

Largest Department Store in Europe: ECI derives 95% of its revenue
from Spain, where it operates the only large department store
chain. It has a privileged position in Spain due to its wide
product and service offering, long-established brand, consumer
loyalty and the prime location of several of its stores. ECI also
has hypermarkets integrated within its department stores and an
independent proximity store chain.

Its large scale allows it to profitably sell financial products to
clients, including consumer loans to finance their purchases, sold
through a 49%-owned joint venture with Banco Santander. ECI
operates the leading retail and business-to-business travel agency
in Spain (EBITDA contribution 6.5%), as well as a small but highly
profitable insurance business (EBITDA contribution 8%).

DERIVATION SUMMARY

ECI's IDR is at the same level as UK-based Marks and Spencer Group
plc (BB+/Stable), reflecting similar scale, diversified offer and
similar multi-channel capabilities. ECI is significantly more
exposed to discretionary spending, but less to online competition.
ECI's FFO adjusted net leverage is expected to be higher than M&S's
in 2021, before broadly converging in 2022.

ECI is rated lower than Kohl's Corporation (BBB-/Negative),
Falabella S.A. (BBB/Negative) and El Puerto de Liverpool, S.A.B. de
C.V.(BBB+/Stable). The main factors for the rating differential are
lower profitability and higher leverage, although ECI has similar
FCF generation.

ECI is rated above Dillard's, Inc. (BB/Negative) and Macy's Inc.
(BB/Negative), with both North American peers showing a negative
trend in EBITDAR margin. ECI also benefits from lower profit
volatility thanks to its market position in Spain and the more
gradual penetration of e-commerce there. Although Dillard's, Inc.
is less leveraged, the rating differential is justified by ECI's
greater scale, similar profitability and undisputed leading
position in its domestic market.

Compared with its peers, ECI benefits from the flexibility provided
by owning most of its real estate assets (similar to Dillard's),
with an appraisal value representing a loan-to-value of around 20%.
This ownership provides ECI with strong financial and operational
flexibility and underpins its solvency through the cycle.

KEY ASSUMPTIONS

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

  - Revenues decreasing 27% in FY21, driven by a material reduction
of non-food retail and the travel agency, partially mitigated by
food retail. Sharp rebound in FY22 but with revenue still 10% lower
than FY20 levels.

  - Very weak EBITDA margin in FY21, returning to around 6% in FY22
and progressively increasing to 7% by FY24.

  - Capex at around EUR220 million in FY21 before strongly
rebounding to EUR350 million in FY22 and EUR400 million in FY23.

  - Strong working capital outflows in FY21, followed by lower
working capital inflows in FY22.

  - Annual disposals of non-core assets and real estate averaging
EUR100 million over FY22-FY24.

  - Dividends at EUR30 million in FY21, progressively increasing
towards EUR75 million by FY24.

RATING SENSITIVITIES

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

  - Visibility that FY22 (February 2022) operational and financial
performance will return to levels in line with FY19, with FFO
margin above 4% and FFO-adjusted net leverage decreasing towards
3.5x.

Factors that could, individually or collectively, lead to an
upgrade to 'BBB-':

  - FFO adjusted net leverage sustainably below 3.3x and total
adjusted debt/operating EBITDAR below 3.5x.

  - FFO fixed-charge cover sustainably above 4.0x.

  - FFO margin sustainably above 7% and continuing positive FCF.

  - Maintenance of solid strategy execution along with a
conservative financial structure, continuous strengthening of
corporate governance and enhanced information disclosures.

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

  - FFO-adjusted net leverage remaining above 3.8x by FY23 and
total adjusted debt/operating EBITDAR above 4.0x.

  - FFO fixed-charge cover below 3.5x by FY22 (Feb-2022)

  - Longer and slower recovery post-coronavirus outbreak, leading
to deterioration in organic sales growth and profit margins, with
FFO margin sustainably below 4%.

  - Negative FCF margin not compensated with asset disposals or
other forms of external support, leading to tightening liquidity.

LIQUIDITY AND DEBT STRUCTURE

Liquidity Relieved: Between March and June 2020, ECI showed ability
to rebuild enough liquidity to mitigate the impact of the
coronavirus outbreak, obtaining EUR1.3 billion in additional
funding sources, of which EUR960 million have a five-year maturity
and the remainder one year. This is in addition to the EUR 1
billion revolving credit facility (RCF), undrawn at FYE20.

ECI completed the refinancing of its syndicated facilities in
February 2020 after partial repayment of its term loan. The terms
of the new EUR900 million senior unsecured term loan and the EUR1.1
billion RCF include substantially lower interest margins and an
extension of debt maturities to 2025.

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).




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

ALLSAINTS: Creditors Back Company Voluntary Arrangements
--------------------------------------------------------
Legal Desire reports that Kirkland & Ellis advised AllSaints, the
global contemporary fashion brand, on the restructuring of its
store portfolio through parallel Company Voluntary Arrangements
(CVAs) of two English tenant companies.

The CVAs were approved by the requisite majorities of creditors in
meetings on July 3 and July 6, 2020, Legal Desire relates.

AllSaints successfully obtained recognition in the U.S. and Canada
of one of the CVAs, which compromises the relevant company's
liabilities under leases in the U.S. and Canada, Legal Desire
discloses.

Recognition was obtained under Chapter 15 of the U.S. Bankruptcy
Code and the Canadian equivalent (Part IV of the Companies'
Creditors Arrangement Act), on July 6, 2020, Legal Desire states.


AllSaints had already obtained recognition in the U.S. and Canada
of one of the CVAs, on June 17, prior to the CVA votes, Legal
Desire notes.  According to Legal Desire, this preliminary
recognition provided interim protection and a stable platform for
the group to pursue its restructuring.


CASTLE BUSINESS: Enters Administration Due to Liabilities
---------------------------------------------------------
Hannah Baker at BristolLive reports that Castle Business Finance, a
finance company in Portishead, has fallen into administration.

The company has appointed Alastair Massey --
alastair.massey@frpadvisory.com -- and Paul Allen --
paul.allen@frpadvisory.com -- of business advisory firm FRP as
joint administrators, BristolLive relates.

According to BristolLive, administrators said the company, which
provides invoice and trade finance to small and medium-sized
businesses, fell into administration after "failing to meet its
liabilities".

The business employed 13 people and was run by managing director
Jeremy Combes.

"Core staff" have remained within the company, which is currently
trading as normal, BristolLive relays, citing administrators.

FRP is now looking for a buyer for the firm, BristolLive
discloses.


LAURA ASHLEY: FRP Tapped to Scrutinize Finances Prior to Collapse
-----------------------------------------------------------------
Sarah Butler and Zoe Wood at The Guardian report that the Pension
Protection Fund has forced the appointment of a second
administrator to scrutinize the finances of Laura Ashley prior to
its collapse into administration in March.

According to The Guardian, the new administrator, FRP Advisory, is
also likely to investigate the role of the fashion chain's former
directors, including the chairman and chief executive Ng Kwan
Cheong, who stepped down in January.

At the time of its collapse, Laura Ashley, which operates more than
150 British shops, had a pension fund deficit valued at GBP50
million on the basis of a buyout by an insurance firm, The Guardian
notes.

Administrators at PwC, who were appointed in March, reckon that
they can raise only GBP27 million from selling off the company's
assets, according to their latest report filed at Companies House,
while total debts stand at more than GBP162 million, The Guardian
recounts.

Laura Ashley's brand, archive and online business were sold to the
restructuring firm Gordon Brother in April, The Guardian recounts.
The company's stores are still in the hands of administrators and
expected to close permanently with the loss of more than 1,600 jobs
once stock is cleared, The Guardian states.  Its manufacturing
business is also on the market, The Guardian notes.


LE BISTROT: Files Notice of Intent to Appoint Administrators
------------------------------------------------------------
According to BristolLive's Hannah Baker, French restaurant chain Le
Bistrot Pierre is reportedly planning to file a notice of intent to
appoint administrators.

The group is working with advisory firm KPMG on its "options",
BristolLive relays, citing hospitality trade website Propel.

According to BristolLive, Propel said Bistrot Pierre, which has a
large site in Weston-super-Mare, was reportedly involved in a sales
process which generated "interest" but did not lead to a deal.

The company is backed by private equity firm Livingbridge, with
Propel claiming the firm could continue to back the business
through a pre-pack administration, BristolLive notes.

The restaurant's latest accounts on Companies House show the chain
made a loss, after taxation, of more than GBP683,000 in the
financial year ending June 30, 2019 -- despite a turnover of nearly
GBP35 million, BristolLive discloses.

During the last financial year, Bistrot Pierre opened two new
restaurants, bringing its total to 24 and more than 900 employees,
BristolLive states.

A pre-pack administration could lead to the group "trimming its
estate", according to Propel, which claims none of the group's
sites across England and Wales are loss making, BristolLive says.


NORVILLE GROUP: Enters Administration, 130+ Jobs Affected
---------------------------------------------------------
Rob Freeman at PunchlineGloucester.com reports that the Norville
Group has entered administration, just days after the company's
optician practices were sold.

According to PunchlineGloucester.com, more than 130 jobs are being
lost at the family spectacle firm's laboratories in Gloucester,
Bolton, Seaham in Durham and Livingston in Scotland.

Simon Girling and Christopher Marsden of BPO LLP have been
appointed joint administrators and are hoping to sell parts of the
business, PunchlineGloucester.com relates.

Hakim Group, who bought the Norville Opticians retail business last
week, said the nine practices around Gloucestershire are not
affected by the administration and will continue to operate under
the Norville name, PunchlineGloucester.com notes.


REDEEM UK: Enters Administration, 118 Jobs Affected
---------------------------------------------------
Steve McCaskill at TechRadar reports that mobile phone
refurbishment specialist Redeem UK has gone into administration
with the loss of 118 jobs.

The company provided recycling services to mobile operators, most
notably O2, and directly to consumers through its Envirofone
portal, TechRadar discloses.

However the firm has not been accepting new submissions since the
imposition of coronavirus-related lockdown restrictions in March
and had placed staff on furlough, TechRadar relates.

The decision to go into administration was prompted by a failure to
secure new funding for the company, TechRadar notes.  KPMG,
TechRadar says, has been appointed as administrator for the UK
division and will work with directors and the firm's remaining 12
UK staff to wind down the business.

Redeem also has operations in Dubai, Estonia, and Sweden, but it is
thought that a buyer for its Spanish business is being sought,
according to TechRadar.


SB ENERGY: Moody's Assigns (P)Ba3 Rating on New $600MM Sec. Notes
-----------------------------------------------------------------
Moody's Investors Service assigned a (P)Ba3 rating to the proposed
USD600 million 5-year USD backed senior secured notes of SB Energy
Investments Limited (SBEI).

The rating outlook is stable.

The issuer is part of a newly formed restricted group (RG)
established to facilitate the transaction.

The RG comprises the issuer and 15 restricted subsidiaries,
including:

(1) SBEI (the issuer),

(2) five operating companies, (together the OpCos) -- SB Energy One
Private Ltd, SB Energy Three Private Ltd, SB Energy Four Private
Ltd, SB Energy Solar Private Limited and SBG Cleantech ProjectCo
Five Private Ltd, and

(3) ten intermediary holding companies of the OpCos (together the
RG HoldCos) -- SBG Cleantech One Limited, SBG Cleantech One
Holdings Limited, SBG Cleantech Three Limited, SBG Cleantech Three
Holdings Limited, SBE Four Limited, SBE Four A Limited, SBE Five
Limited, SBE Five A Limited, SBE Nine Limited and SBE Nine A
Limited.

The proposed notes will be guaranteed by the RG HoldCos.

All of the restricted subsidiaries and the issuer are wholly owned
subsidiaries of SB Energy Holdings Limited (SBEH). SBEH is a
renewable energy developer in India, with operational capacity of
1.4 gigawatts (GWac) as of March 31, 2020. SBEH is, in turn, 80%
indirectly owned by Softbank Group Corp. (Ba3 negative), and 20%
owned by Bharti Global Limited.

The five OpCos own and operate five solar projects in Rajasthan,
Karnataka and Andhra Pradesh in India, with a total generation
capacity of 1.05 GWac.

SBEI is a special purpose vehicle established to issue the proposed
USD notes. Proceeds from the notes will be used to subscribe to
senior secured INR-denominated bonds and loans (the Onshore Debt)
to be issued by the five OpCos in the restricted group. SBEI is not
the holding company of any of the restricted subsidiaries, and its
ability to meet the USD bond servicing obligations are entirely
dependent on payments from the OpCos under the Onshore Debt.

Proceeds of the proposed 5-year USD senior notes will be used to
(1) refinance the existing project debt of the restricted
subsidiaries, (2) fund transaction expenses, (3) fund required
reserves, and (4) to onlend the balance amounts to SBEH/ its
subsidiaries.

The provisional status of the rating is predicated on Moody's
satisfactory review of the final transaction documentation,
including the currency hedging mechanism, and completion of the
Onshore Debt issuance.

RATINGS RATIONALE

"The (P)Ba3 rating of the proposed USD notes reflects the credit
quality of the RG, which is in turn supported by its predictable
revenues from the five renewable projects in India under long-term
power purchase agreements with fixed tariffs, all of which are
contracted with sovereign-linked counterparties," says Spencer Ng,
a Moody's Vice President and Senior Analyst.

"The rating also benefits from the RG's solid track record during
its short operational track record and the experience of the
management team," adds Ng.

As a renewable energy developer, SBEH benefits from the positive
macroeconomic and sectoral trends toward renewable energy and as
such has low exposure to carbon transition risk. The RG's solar
power business is in alignment with India's target to reduce its
carbon footprint and meet its nationally determined contributions.

The (P)Ba3 rating for the proposed USD notes, however, is
constrained by the RG's high financial leverage.

Moody's projects that RG's average cashflow from operations
(CFO)/debt to be in the mid-3% range over the term of the proposed
notes, which is weak compared to similarly rated peers. On a net
debt basis, the RG's leverage metrics will strengthen as free cash
flow is retained under the proposed lock-up mechanism. The cash
traps enhance the credit profile of the RG and reduce refinancing
risk for the USD notes.

Moody's expects output from the RG's portfolio at P-90 levels
(output that is likely to exceed 90% of the time) over the term of
the bond as the performance of newer projects stabilizes over time.
Grid availability or load shedding have not had a meaningful impact
on the RG's projects' power generation since commencement of
operations.

Moody's projections also (1) incorporated a delay in the
commencement of Safeguard Duty compensation payments and (2)
excludes the interest income from the principal amounts advanced to
related parties using the proceeds from the proposed notes.

The RG's credit profile also recognizes the high degree of
visibility over the quality of the asset portfolio for the duration
of the bond, as the proposed bond forbids the addition of renewable
projects into the RG.

Predictability of the RG's financial profile is enhanced by
restrictions over the incurrence of additional debt beyond USD600
million under the proposed finance documents, with the exception of
working capital debt of up to USD35 million.

The RG's exposure to the ambitious growth strategy and financial
policy of SBEH is considered manageable for the rating, recognizing
restrictions on the RG's ability to incur additional debt and on
the upstreaming of dividends and other types of payments to its
parent and affiliates. These restrictions will help mitigate
concerns over potential cash leakages to any entities outside of
the RG.

SBEH has an ambitious growth program over the next 2-3 years with
another 2.4GWp of new capacity under construction in India, which
it will likely fund through additional equity infusions and debt.

To mitigate the currency risk stemming from the absence of
USD-based revenues to service the proposed USD notes, SBEI will
undertake a hedging program to manage USD/INR exchange rate
movements by implementing a full hedge for the coupon and
call-spread hedges of the principal for INR movements up to a set
exchange rate against the dollar for the entire bond term.

The USD notes will be secured by a first priority pledge over
SBEI's and RG HoldCos' shares, and by an escrow account of SBEI
that will hold the proceeds for the purchase of the Onshore Debt
before they are utilized. The INR Onshore Debt to be issued by the
OpCos will be secured by the moveable and immovable assets of the
OpCos, as well as by 100% share pledges and a charge over rights
under project documents. The INR Onshore Debt will be
cross-guaranteed by each of the restricted subsidiaries.

The stable rating outlook reflects Moody's expectation that
incremental cash flows from newly commissioned projects under
long-term power purchase agreements will support the RG's ability
to maintain its credit metrics within the tolerance levels of a Ba3
rating category over the next 12-18 months.

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

An upgrade is unlikely, given the limited opportunity for the RG to
materially improve its financial profile during the term of the
bullet bond. Nevertheless, the rating could be upgraded if the RG's
CFO/debt is maintained above 7% on a sustained basis.

The rating could be downgraded if there is a material deterioration
in the RG's operating performance or if the RG's CFO/debt is lower
than 3% on a sustained basis. The rating could also be downgraded
if there is a delay or a reduction in the payment of Safeguard Duty
compensations from Moody's base case expectations.

The principal methodology used in this rating was Power Generation
Projects published in June 2018.

SB Energy Investments Limited is a special purpose vehicle, which
was incorporated in the UK in 2020 as a wholly owned subsidiary of
SB Energy Holdings Limited (SBEH).

The restricted subsidiaries under the proposed USD notes issuance
are wholly majority owned by SBEH. The restricted subsidiaries
operate solar power plants with a total capacity of 1.05 GWac as of
March 2020.


TRAVELEX: Debt Holders to Take Control, Inject GBP84MM Liquidity
----------------------------------------------------------------
Tanishaa Nadkar at Reuters reports that Travelex said on July 7 its
debt holders will take control of the company and inject GBP84
million (US$105.60 million) of fresh liquidity, as part of a debt
restructuring to help the currency service provider ride out the
coronavirus crisis.

According to Reuters, the company said it reached an agreement with
at least 66.7% of its senior secured noteholders and all of its
revolving credit facility lenders for an 84% reduction of its
existing financial debt.

The company said the senior secured noteholders will take full
control of Travelex, Reuters relates.

The restructuring comes soon after London-based Travelex ended
buyout talks, as the offers it received were "unacceptable" to its
debt holders and lenders, Reuters notes.  The company put itself up
for sale after parent Finablr cautioned of a potential insolvency,
Reuters recounts.

Travelex, as cited by Reuters, said the debt restructuring deal
will also divide it into two parts, "New Travelex" and "Warehouse
Travelex".


VENDOME FUNDING 2020-1: S&P Assigns BB- Rating on Cl. E Notes
-------------------------------------------------------------
S&P Global Ratings assigned its credit ratings to Vendome Funding
CLO 2020-1 DAC's class A, B-1, B-2, C, D, and E notes. At closing,
the issuer will also issue unrated subordinated notes.

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

The portfolio's reinvestment period will end approximately 1 year
after closing, and the portfolio's maximum average maturity date
will be approximately 11 years after closing

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

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

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

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

  Portfolio Benchmarks
                                                         Current
  S&P Global Ratings' weighted-average rating factor    2,550.69
  Default rate dispersion                                 672.85
  Weighted-average life (years)                             5.23
  Obligor diversity measure                                80.41
  Industry diversity measure                               13.44
  Regional diversity measure                                1.51

  Transaction Key Metrics
                                                         Current  

  Total par amount (mil. EUR)                             350.00
  Defaulted assets (mil. EUR)                               0.00
  Number of performing obligors                               92
  Portfolio weighted-average rating derived
    from S&P's CDO Evaluator                                 'B'
  'CCC' category rated assets (%)                           0.00
  Covenanted 'AAA' weighted-average recovery (%)           37.25
  Covenanted weighted-average spread (%)                    3.25
  Covenanted weighted-average coupon (%)                    3.75

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

"In our cash flow analysis, we used the EUR350 million par amount,
the covenanted weighted-average spread of 3.25%, the covenanted
weighted-average coupon of 3.75%, and the covenanted
weighted-average recovery rates for all rating levels. We applied
various cash flow stress scenarios, using four different default
patterns, in conjunction with different interest rate stress
scenarios for each liability rating category.

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

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

At closing, S&P considers that the transaction's legal structure
will be bankruptcy remote, in line with our legal criteria.

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

Until the end of the reinvestment period on July 20, 2021, the
collateral manager is allowed to substitute assets in the portfolio
for so long as our CDO Monitor test is maintained or improved in
relation to the initial ratings on the notes. This test looks at
the total amount of losses that the transaction can sustain as
established by the initial cash flows for each rating, and compares
that with the default potential of the current portfolio plus par
losses to date. As a result, until the end of the reinvestment
period, the collateral manager may, through trading, deteriorate
the transaction's current risk profile, as long as the initial
ratings are maintained.

Following S&P's analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe that its ratings are
commensurate with the available credit enhancement for the class A,
B-1, B-2, C, D, and E notes.

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

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

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

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

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

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

"For the class E notes, our ratings analysis makes additional
considerations before assigning ratings in the 'CCC' category, and
we typically would assign a 'B-' rating if the criteria for
assigning a 'CCC' category rating are not met."

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."

Vendome Funding CLO 2020-1 is a European cash flow CLO
securitization of a revolving pool, comprising euro-denominated
senior secured loans and bonds issued mainly by speculative-grade
borrowers. CBAM CLO Management Europe LLC will manage the
transaction.

  Ratings List

  Class   Rating   Amount    Subordination (%)   Interest rate*
                   (mil. EUR)

  A       AAA (sf)   210.00     40.00     Three/six-month EURIBOR
                                             plus 1.86%

  B-1     AA (sf)     23.40     29.89     Three/six-month EURIBOR
                                             plus 2.34%

  B-2     AA (sf)     12.00     29.89     2.90%

  C       A- (sf)     35.50     19.74     Three/six-month EURIBOR
                                             plus 3.00%

  D       BBB- (sf)   17.30     14.80     Three/six-month EURIBOR
                                             plus 4.70%

  E       BB- (sf)    12.40     11.26     Three/six-month EURIBOR
                                             plus 7.25%

  Sub. Notes   NR     37.20     N/A       N/A

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



VICTORIA PLC: Fitch Alters Outlook on BB- LT IDR to Negative
------------------------------------------------------------
Fitch Ratings has revised Victoria PLC's Outlook to Negative from
Stable, while affirming the building materials group's Long-Term
Issuer Default Rating (IDR) at 'BB-'. Fitch also affirms the
group's senior secured notes at 'BB'/'RR2'.

The Negative Outlook highlights the uncertainty of the coronavirus
pandemic's impact on Victoria's performance, which remains highly
dependent on consumer spending, levels of disposable income and GDP
growth. The pandemic has negatively impacted the building products
sector's trading conditions and Fitch sees potential for further
weakening in consumer confidence, which may limit residential
renovation activity.

However, the affirmation of the rating reflects its expectation of
Victoria's ability to recover from the crisis in the next two
years, bringing leverage back within its sensitivity by financial
year to March 2023. This is supported by some resilience in the DIY
market across Europe. Nonetheless, Fitch expects that Victoria's
overall performance for FY21 will be negatively affected due to a
slowdown of the economy and consumer spending, especially in the
UK.

KEY RATING DRIVERS

Negative COVID-19 impacts: Although it is too early to assess the
full impact of the pandemic on the group's performance for FY21,
Fitch expects a significantly negative impact in 1H21 due to strict
lockdowns in countries it operates. Fitch forecasts Italy and Spain
to have started their recovery from April 2020, supported by the
easing of the lockdown and high demand in the DIY market. However,
Fitch believes that the UK market will remain challenging until
end-2021 as a result of weaker demand impacted by both the pandemic
and Brexit plus higher competition from lower added-value products.
Although there has been a slight recovery in Australia at FYE20,
Fitch expects this market to remain structurally challenged in
FY21.

M&A to Offsets COVID-19 Impact: Its FY21 forecast sales are
expected benefit from the recent acquisitions of Ibero (Spanish
ceramic tile manufacturer, August 2019), Estillon (Dutch underlay
distributor, November 2019) and Ascot (Italian ceramic tile
manufacturer, February 2020), which are estimated to add an
additional GBP69 million in sales and a further GBP6.9 million
EBITDA pro forma FY20. As such, Fitch forecasts sales increasing
0.3% for FY21. Excluding acquisitions, Fitch forecasts a decline of
9% in sales for FY21 and lower EBITDA margin at around 12% versus
16.8% in FY19.

Pandemic Weakens Consumer Confidence: Fitch expects Victoria to
benefit from its exposure to the renovation market as Fitch expects
this to be more resilient than new build during the downturn,
although the market remains linked to GDP growth, disposable income
and consumer confidence all of which Fitch expects to be hit by the
pandemic. Somewhat offsetting this is Victoria's exposure to small
independent retailers (46% of FY19 sales) supporting its exposure
to DIY markets, where DIY demand has broadly remained strong across
Europe.

Pressure on Leverage: As a result of the pandemic, Fitch forecasts
funds from operations (FFO) net leverage to breach its negative
sensitivity by increasing to 5.3x in FY21 from an estimated 3.6x in
FY20. Fitch believes that it will take less than two years for FFO
net leverage to recover back to FY20 levels, at an estimated 3.5x
by FY23. This recovery will bring leverage metrics in line with its
sensitivities in FY23, supported by improved EBITDA due to growth
in ceramic and small bolt-on acquisitions.

Flexible Cash Flow to Withstand Downturn: Victoria has responded
swiftly to the pandemic with cost-saving measures such as the
temporary shutdown of its manufacturing sites in Italy, Spain and
the UK and the use of the government payroll schemes in countries
it operates in. Over the past few years, it has sought to establish
an increasingly variable cost base and rationalised its cost base
and logistics as well as selectively outsourced manufacturing in
specific areas. As a result, Victoria has more than 45% of costs
fully variables with revenue (raw materials, direct labour and
overhead costs) and lower capex intensity than peers. This allows
stronger free cash flow (FCF) generation with an estimated FCF
margin of 5%-6% from FY22 to withstand the crisis.

Significant European Exposure; Limited End-markets: Due to
Victoria's recent expansion in Europe, the UK's contribution has
decreased to an expected 20% of revenue in 1H20. However, Victoria
remains geographically concentrated with nearly 90% of EBITDA
generated in Europe (including 28% in the UK). Furthermore, 90% of
Victoria's revenue is exposed to the renovation market and, while
construction markets tend to behave independently across countries,
the renovation market tends to follow similar geographical patterns
(especially during a pandemic crisis) given its link to consumer
confidence and GDP growth.

Low Customer Concentration/Strong Brand: Victoria's customer base
is largely composed of small independent retailers with little
exposure to large retailers and no exposure to third distribution
parties. This allows limited customer concentration, with the top
10 representing only 18% of sales in FY19 and Victoria to negotiate
prices. Victoria has built a strong brand proposition/loyalty
leading to long-term relationship with its customers and its
operational integration and manufacturing flexibility enable the
group to produce customisable products in a short period of time,
limiting storage requirement in retailers. Additionally, limited
storage space in retailers has favoured Victoria's ability to
manage working capital swings as the group is directly exposed to
demand via orders from retailers.

Strategy Based on Acquisitions:  Victoria has delivered significant
growth in revenues and profitability since 2013, mainly via
acquisitions. It plans to continue doing so over the next four
years, driven by opportunities available in its fragmented core
markets. The strategy entails moderate execution risks, and
successful integration and synergy realisation from M&A
transactions can be challenged in a sharp market downturn. However,
Fitch views the management team as experienced and disciplined,
with a history of successful integrations and reasonable
acquisition valuation multiples. Fitch also believes that
acquisitions will be on hold during the pandemic to preserve cash
but will resume once the market is more favourable. As such, Fitch
forecasts small bolt-on acquisitions of GBP30 million-GBP60 million
p.a from FY22.

Focus on Higher Value-Added: In recent years, Victoria has notably
opted for a strategy of growth by differentiation in providing
higher value-added products with strong brand recognition and
designs, which has led to a reshuffle of its portfolio mix. Most
recently, it acquired ceramic manufacturer Ibero in August 2019,
Estillon in November 2019, Ascot in February 2020, which should
contribute for an additional sale of around GBP69 million (of which
EUR60 million from Ascot) pro forma FY20.

FY20 Results Expected to be In-line: While Fitch recognises the
challenges facing the sector resulting from the pandemic, FY20
results are expected to be in line with its previous forecasts in
EBITDA and sales, resulting in FFO net leverage at 3.6x. Fitch
expects this to have been supported by strong performance in
ceramic, which has more than offset the challenging environment in
both the UK (no growth in FY20) and Australia for soft flooring.
Stable pricing and successful integrations of recently new acquired
targets are expected to support margins and cash flow performance.

DERIVATION SUMMARY

Victoria is 10 times smaller than Mohawk Industries Inc.
(BBB+/Stable), the world's leading flooring manufacturer, as well
as less diversified geographically and exhibits higher leverage
metrics. In its view, Victoria exhibits a business profile that is
consistent with the 'BB' category. Its profitability is
particularly strong at the mid-points of its Rating Navigator for
Building Products due to its high-margin ceramic business it has
acquired over the last few years.

However, Victoria's end-market is concentrated on residential and
less diversified than global players such as Mohawk or other large
building products companies such as Compagnie de Saint-Gobain
(BBB/Stable). This is, however, common among small to medium-sized
players such as Hestiafloor 2 (B+/Stable), which is mostly exposed
to commercial (around 90%). Although Gerflor is double the size of
Victoria and offers a broader range of products in the resilient
flooring market with focus on luxury vinyl tile products, it has
lower profitability and higher leverage, resulting in its rating
being one notch lower than Victoria's.

Fitch views FFO gross leverage of below 4.0x and FFO net leverage
below 3.5x as consistent with the 'BB' category. Although
Victoria's FFO net leverage is expected to increase to 5.3x in
FY21, Fitch forecasts that FFO net leverage to improve to 3.5x in
FY23, given the group's M&A appetite and healthy FCF generation.

KEY ASSUMPTIONS

Revenue growth of 0.3% in FY21 including the impact of the
acquisitions of Ascot, Ibero and Estillon for GBP61 million in
additional sales. Excluding acquisitions sales down 9.4% in FY21
amid COVID-19 impact.

Revenue recovering to 11.7% growth in FY22, of which 10.3% is
organic.

EBITDA margin to drop to 13.3% in FY21 (organic 12.2%). Recovery to
17.1% from FY22 (organic 15%) and to remain slightly above 17.5%
until FY24, supported by acquisitions.

Working capital flow at -GBP33 million in FY21, before normalising
to historical trends thereafter (GBP5 million in FY22, GBP1 million
in FY23, and -GBP11 million in FY24).

Lower capex in FY22F at 4% of sales. From FY23 capex at 5%,
representing around GBP33 million-GBP40 million.

FY21 earn-out of GBP21.8 million;

GBP56 million acquisitions (including earn-out of GBP11 million)
for FY22; GBP47 million acquisitions for FY23; GBP45 million
acquisitions for FY24

RCF to be reduced to GBP30 million (pay-down of GBP45 million) in
FY21. The remaining GBP30 million to be repaid in FY22

Use of the transitional analysis approach for the recovery
analysis, resulting in maintaining the senior secured rating at one
notch above the IDR at 'BB'/'RR2', implying an expected recovery of
71%-90%.

RATING SENSITIVITIES

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

  - Continued increase in scale and product/geographical
diversification as well as successful integration of the latest
acquisitions

  - FFO net leverage below 2.0x

  - EBITDA margin increasing towards 19%

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

  - Material drop in EBITDA margin towards 15%

  - Breach of stated financial policy leading to FFO net leverage
above 3.5x for a sustained period

  - Failure to integrate latest acquisitions

  - FCF margin in low single digits

LIQUIDITY AND DEBT STRUCTURE

Adequate Short-Term Liquidity: Although Victoria has fully drawn
its RCF of GBP75 million, as a precautionary measure during the
early part of the pandemic, Fitch expects it to repay part of the
RCF to avoid breaching its springing financial covenant on the RCF
by September 2020; as such, Fitch forecasts a repayment of GBP45
million in FY21. Liquidity is supported by good FCF generation,
which Fitch expects to be 5%-6% of sales from FY22. Fitch believes
that this, combined with a cash end of around GBP175 million
(including the GBP75 million RCF) in March 2020, is sufficient to
cover its short-term payments, including interest payments of
around GBP24 million p.a.

Additionally, it has no material maturities before 2024.

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).




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

[*] BOOK REVIEW: Bankruptcy and Secured Lending in Cyberspace
-------------------------------------------------------------
Author: Warren E. Agin
Publisher: Bowne Publishing Co.
List price: $225.00
Review by Gail Owens Hoelscher

Red Hat Inc. finds itself with a high of 151 5/8 and low of 20 over
the last 12 months! Microstrategy Inc. has roller-coasted from a
high of 333 to a low of 7 over the same period! Just when the IPO
boom is imploding and high-technology companies are running out of
cash, Warren Agin comes out with a guide to the legal issues of the
cyberage.

The word "cyberspace" did not appear in the Merriam-Webster
Dictionary until 1986, defined as "the on-line world of computer
networks." The word "Internet" showed up that year as well, as "an
electronic communications network that connects computer networks
and organizational computer facilities around the world."
Cyberspace has been leading a kaleidoscopic parade ever since, with
the legal profession striding smartly in rhythm. There is no
definition for the word "cyberassets" in the current
Merriam-Webster. Fortunately, Bankruptcy and Secured Lending in
Cyberspace tells us what cyberassets are and lays out in meticulous
detail how to address them, not only for troubled technology
companies, but for all companies with websites and domain names.
Cyberassets are primarily websites and domain names, but also
include technology contracts and licenses. There are four types of
assets embodied in a website: content, hardware, the Internet
connection, and software. The website's content is its fundamental
asset and may include databases, text, pictures, and video and
sound clips. The value of a website depends largely on the traffic
it generates.

A domain name provides the mechanism to reach the information
provided by a company on its website, or find the products or
services the company is selling over the Internet. Examples are
Amazon.com, bankrupt.com, and "swiggartagin.com." Determining the
value of a domain name is comparable to valuing trademark rights.
Domain names can come at a high price! Compaq Computer Corp. paid
Alta Vista Technology Inc. more than $3 million for "Altavista.com"
when it developed its AltaVista search engine.

The subject matter covered in this book falls into three groups:
the Internet's effect on the practice of bankruptcy law; the ways
substantive bankruptcy law handles the impact of cyberspace on
basic concepts and procedures; and issues related to cyberassets as
secured lending collateral.

The book includes point-by-point treatment of the effect of
cyberassets on venue and jurisdiction in bankruptcy proceedings;
electronic filing and access to official records and pleadings in
bankruptcy cases; using the Internet for communications and
noticing in bankruptcy cases; administration of bankruptcy estates
with cyberassets; selling bankruptcy estate assets over the
Internet; trading in bankruptcy claims over the Internet; and
technology contracts and licenses under the bankruptcy codes. The
chapters on secured lending detail technology escrow agreements for
cyberassets; obtaining and perfecting security interests for
cyberassets; enforcing rights against collateral for cyberassets;
and bankruptcy concerns for the secured lender with regard to
cyberassets.

The book concludes with chapters on Y2K and bankruptcy; revisions
in the Uniform Commercial Code in the electronic age; and a
compendium of bankruptcy and secured lending resources on the
Internet. The appendix consists of a comprehensive set of forms for
cyberspace-related bankruptcy issues and cyberasset lending
transactions. The forms include bankruptcy orders authorizing a
domain name sale; forms for electronic filing of documents;
bankruptcy motions related to domain names; and security agreements
for Web sites.

Bankruptcy and Secured Lending in Cyberspace is a well-written,
succinct, and comprehensive reference for lending against
cyberassets and treating cyberassets in bankruptcy cases.



                           *********


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

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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
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                * * * End of Transmission * * *