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

                          E U R O P E

          Thursday, July 16, 2020, Vol. 21, No. 142

                           Headlines



C Y P R U S

ARAGVI HOLDING: Fitch Affirms B LT IDR, Outlook Stable


G E O R G I A

GEORGIA GLOBAL: S&P Puts B Issue Rating to New Green Bonds


G E R M A N Y

WIRECARD: Collapse to Prompt Changes to Financial Oversight Laws


G R E E C E

NAVIOS MARITIME: Egan-Jones Lowers FC Sr. Unsecured Rating to D


I R E L A N D

BARINGS EURO 2019-1: Fitch Affirms B-sf Rating on Class F Debt
GRAND HARBOUR 2019-1: Fitch Affirms B-sf Rating on Class F Debt
HOUSE OF IRELAND: Shuts Down Due to Coronavirus Pandemic Impact
JUBILEE CLO 2019-XXIII: S&P Lowers Rating to 'BB- (sf)' on E Notes
SOUND POINT II: Fitch Affirms B-sf Rating on Class F Notes

TORO EUROPEAN 2: Fitch Affirms B-sf Rating on Class F-R Debt


I T A L Y

GAMMA BIDCO: S&P Assigns Preliminary B ICR, Outlook Negative


L A T V I A

AIR BALTIC: S&P Affirms B Sr. Unsec. Notes Rating, Outlook Stable


L U X E M B O U R G

EP BCO: S&P Affirms BB- LT Issuer Credit Rating, Outlook Stable
SUNSHINE LUXEMBOURG VII: Fitch Alters Outlook on B LT IDR to Neg.


N E T H E R L A N D S

BRASKEM NETHERLANDS: S&P Assigns B+ Issue Rating to New Sub. Loans
KANTOOR FINANCE 2018: DBRS Confirms BB(low) Rating on Cl. E Notes
PLT VII FINANCE: Fitch Corrects Press Release dated July 6, 2020


R U S S I A

RN BANK: S&P Affirms BB+/B Issuer Credit Ratings, Outlook Stable


S P A I N

ABENGOA: In Advanced Talks to Secure EUR250MM Liquidity Line
GRUPO AVINTIA: DBRS Confirms B(high) Issuer Rating
RMBS SANTANDER 6: DBRS Assigns Prov. CCC Rating on Class B Notes


U N I T E D   K I N G D O M

ABERDEEN MARKET: Placed Into Creditors Voluntary Liquidation
BISTROT PIERRE: Bought Out of Administration Via Pre-Pack Deal
CENTURY CASINO: Goes Into Liquidation Following Insolvency
COLD FINANCE: DBRS Confirms BB(High) Rating on Class E Notes
FINSBURY SQUARE 2020-2: S&P Assigns BB+(sf) Rating on X-Dfrd Notes

GREENE KING: S&P Keeps B Notes' BB+ (sf) Rating on Watch Neg.
SMALL BUSINESS 2018-1: DBRS Keeps BB(high) on D Notes Under Review
SPIRIT ISSUER: S&P Affirms BB+ Rating on Class A5 Notes

                           - - - - -


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C Y P R U S
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ARAGVI HOLDING: Fitch Affirms B LT IDR, Outlook Stable
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Fitch Ratings has affirmed Aragvi Holding International Limited's
(Trans-Oil) Long-Term Foreign-and Local-Currency Issuer Default
Ratings (IDRs) at 'B' with Stable Outlooks.

The 'B' ratings are constrained by Trans-Oil's small scale in the
global agricultural commodity processing and trading market and the
concentration of its crop's origination in Moldova. The ratings
also reflect Trans-Oil's dominant and well-protected market
position in procurement and exports of agricultural products and
sunflower seed crushing in Moldova and its expectation that the
company will continue expanding the scale of its operations over
the next four years, while maintaining moderate leverage. The
company maintains an adequate liquidity position.

KEY RATING DRIVERS

Limited Impact from Pandemic: Fitch assumes no disruptions from the
coronavirus pandemic as the demand for agricultural commodities
sold by Trans-Oil has been resilient during global lockdowns. The
company has limited exposure to foodservice and biodiesel markets
and therefore has not experienced any contract cancellations.

Increased EBITDA: Fitch estimates that Trans-Oil's EBITDA has
increased by almost 50% over FY19-FY20 and reached around USD90
million in FY20 (FY18: USD60 million). This has been achieved
mainly thanks to substantial growth in the company's origination
volumes, despite its already high market shares in Moldova.
Improved liquidity after the USD300 million Eurobond placement in
2019 enabled Trans-Oil to finance the purchase of a greater volume
of agricultural commodities compared with previous years, leading
to an estimated around USD200 million step-up in sales of
origination division in FY20 from USD327 million in FY18.

In addition, Trans-Oil started to expand its operations outside
Moldova, in Romania, with the purchase of a crushing plant for
sunflower seeds. Fitch expects this to contribute USD40 million of
sales in FY20.

Growth to Continue: Over FY21-FY22 Fitch expects increasing
utilisation of the plant in Romania, along with the potential
development of a new organic and high-oleic seeds crushing
operation in Moldova to be the company's major growth drivers.
Management has ambitions to continue growing, but Fitch assumes any
investments in new production capacity or bolt/on M&A will be done
in the context of the current conservative financial policy.

Working Capital Investments in FY19-FY20: Fitch assumes in its
rating case that Trans-Oil's working capital will stabilise over
FY21-FY23, based on the current credit lines available to the
company. Nevertheless, Fitch does not rule out that Trans-Oil may
invest in its inventory if new working capital financing becomes
available. This will lead to negative FCF but also to higher
revenue than projected. However, Fitch believes that new debt
raised to fund inventory will not materially impact its leverage
metrics, because they are adjusted for Readily Marketable Inventory
(RMI).

Fitch projects RMI-adjusted funds from operations (FFO) net
leverage to be around 4.0x in FY20 and stay at this level in FY21,
below the negative rating sensitivity of 4.5x.

Strong Market Position in Moldova: Trans-Oil's dominant market
position in Moldova's agricultural exports and sunflower seed
crushing underpins its rating. In 1HFY20, Trans-Oil exported 53% of
agricultural commodities in Moldova and accounted for 90% of
sunflower seeds crushed in the country. Trans-Oil's major
competitive advantage is its ownership of material infrastructure
assets as it operates the country's largest inland silo network and
the only seagoing vessel port.

Trans-Oil has higher profit margins than most Fitch-rated peers in
the sector due to its asset-heavy business model, strong shares in
its procurement market and a more limited incidence of logistics
costs thanks to the less dispersed profile of the territory where
it procures.

Low to Moderate Competition Risks: Trans-Oil's dominant market
position creates substantial market entry barriers for new
competitors and ensures the company's smooth access to crops
procurement in the country. Due to its market position in Moldova,
Trans-Oil benefits from significantly lower competition risks in
procuring crops than its peers operating in Russia and Ukraine, the
two largest crop-producing countries in the Black Sea region. This
is due to higher market consolidation and the absence of
international commodity traders and processors in Moldova.

Fitch does not expect the competitive environment in Moldova to
materially change over the medium term.

Small Scale, Limited Diversification: Trans-Oil's rating is
constrained by its small scale and concentration of crops
procurement in Moldova, which exposes its supply chain to weather
risks due to the limited territory. Trans-Oil is large by Moldovan
standards-about 10x bigger than the next local competitor -but is
small in the global agricultural commodity trading and processing
market. Trans-Oil's scale (as measured by FY19 EBITDAR of USD75
million) is more than 5x lower than that of Ukrainian peer Kernel
Holding S.A. (BB-/Stable). In addition, around 90% of Trans-Oil's
revenue is from trading a small selection of commodities (sunflower
seeds and oil, corn and wheat).

RMI Adjustments: Fitch applies RMI adjustments in evaluating
Trans-Oil's leverage and interest coverage ratios and liquidity
position. Certain commodities traded by Trans-Oil fulfil the
eligibility criteria f or RMI adjustments, as set out in Fitch's
Commodity Processing and Trading Companies: Ratings Navigator
Companion report dated October 2018, as 90% of the company's
international oilseeds and grain sales volumes are made on the
basis of forward contracts.

For the purpose of RMI calculations, Fitch applied a 60% advance
rate to eligible inventory to reflect basis and counterparty risks.
In its calculation of leverage and interest cover metrics, Fitch
excluded debt associated with financing RMI and reclassified the
related interest costs as cost of goods sold. The differential
between RMI-adjusted and RMI-unadjusted FFO net leverage is
0.5-1.0x.

DERIVATION SUMMARY

Trans-Oil compares well with Ukrainian sunflower seed crusher and
grain trader Kernel Holdings S.A. due to the similarity of
operations and vertically-integrated models, which include sizeable
logistics and infrastructure assets. The main difference in
business models being that Kernel is integrated into crop growing,
which limits sourcing and procurement risk, and has a wider and
diversified customer base. The two-notch differential between the
companies' ratings is explained by Kernel's greater business scale
and larger sourcing market, which provides greater protection from
weather risks. On the other hand, procurement competition risks for
Trans-Oil are lower than Kernel's due to its stronger market
position and absence of competition from global commodity traders
and processors in Moldova.

Trans-Oil is considerably smaller in business size and has a weaker
ranking on a global scale than international agricultural commodity
traders and processors, such as Cargill Incorporated (A/Stable),
Archer Daniels Midland Company (A/Stable) and Bunge Limited
(BBB-/Stable).

No Country Ceiling, parent-subsidiary linkage or operating
environment aspects apply for Trans-Oil's ratings.

KEY ASSUMPTIONS

  - Increasing crushing capacity utilisation over FY21-FY23,
including crushing plant in Romania

  - Construction of a high-oleic and organic seeds crushing plant
with capacity coming on stream in FY21

  - Maintaining the ability to preserve FY20 profit margins in the
origination and crushing segments

  - From FY20, EBITDA at approximately EUR90 million a year in the
absence of commodity market shocks

  - Capex at around 2% of revenue in FY20-FY21, at 1% of revenue in
FY22-FY23

  - Large working capital outflow in FY20 (around USD100 million)
with stabilisation in FY21 and outflows not exceeding USD10
million-USD15 million a year over FY21-FY23 (assuming low
single-digit revenue growth)

  - No M&A

  - No dividends

RECOVERY ASSUMPTIONS

Adequate Recovery for Secured Bondholders: The senior secured
Eurobond is rated in line with Trans-Oil's IDR of 'B', reflecting
average recovery prospects given default. The Eurobond is secured
by pledges over substantially all assets of key Moldovan entities.
It also benefits from guarantees from operating companies,
altogether accounting for no less than 85% of Trans-Oil's EBITDA
and assets at the issue date.

Going-Concern Scenario: Its recovery analysis assumes that
Trans-Oil would be treated as a going concern in a restructuring
and that it would be reorganised rather than liquidated. Fitch has
assumed a 10% administrative claim. The going-concern EBITDA
estimate of USD50 million reflects Fitch's view of a sustainable,
post-reorganisation EBITDA level upon which Fitch bases the
valuation of the company. It incorporates the company's limited
diversification and the inherent volatility of agricultural
commodity markets. An enterprise value (EV) multiple of 4x is used
to calculate a post-reorganisation valuation. The multiple is in
line with that used by Fitch for recovery analysis of Ukrainian
agricultural company MHP SE (B+/Stable).

Fitch deems the outstanding amount under its PXF facility, other
working capital financing and debt owed to International Investment
Bank as ranking pari passu with the issued bonds. Its debt
waterfall analysis generated a ranked recovery in the 'RR4' band f
or the senior secured Eurobond, indicating a 'B' rating. The
waterfall analysis output percentage on current metrics and
assumptions was 41%.

RATING SENSITIVITIES

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

Positive rating action is currently not envisaged. Nevertheless,
factors that Fitch considers relevant for potential positive rating
action include steady growth in Trans-Oil's operational scale (as
measured by FFO), improvement of diversification by commodity and
sourcing market, and maintaining a conservative capital structure.

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

  - Weakening of liquidity position or risk of insufficient
availability of trade finance lines to fund trading and processing
operations

  - A more aggressive financial policy, as evidenced by
greater-than-expected investments in working capital, capex and M&A
or dividend payment

  - RMI-adjusted FFO net leverage above 4.5x (FY19: 3.7x) and
RMI-adjusted FFO interest cover below 2.0x (FY20: 3.6x) for more
than two consecutive years.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: At end-December 2019, Fitch estimates that the
company held USD65 million of cash and RMI of USD158 million,
sufficient to cover projected short-term obligations, including
USD136 million of short-term debt. Fitch expects Trans-Oil to be
able to maintain adequate internal liquidity over the next three
years due to manageable debt maturities before its Eurobond becomes
due in 2024. Fitch also assumes that Trans-Oil will extend its
USD150 million pre-export financing (PXF) facility on maturity in
end-July 2021. Fitch believes that refinancing risks are manageable
due to projected moderate leverage and Trans-Oil's record of
re-establishing and increasing the limit of PXF facility since it
was obtained in July 2014.

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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G E O R G I A
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GEORGIA GLOBAL: S&P Puts B Issue Rating to New Green Bonds
----------------------------------------------------------
S&P Global Ratings assigned its 'B' issue rating to Georgia Global
Utilities JSC's (GGU) proposed dollar-denominated green bonds. Its
'B' long-term issuer credit rating on GGU remains unchanged.

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

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

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

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

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

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

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

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

S&P said, "Although 2017-2019 were dry years in Georgia, we assume
water levels will recover closer to historical average levels from
2020. We also expect GGU's weighted-average electricity price to
increase from the current 5.0-5.1 U.S. cents/kWh to 5.5 U.S.
cents/kWh in 2021 and to fluctuate around 5.3 U.S. cents-5.5 U.S.
cents thereafter. GGU benefits from a structural deficit in
Georgia's electricity market. In addition, its main industrial
customers' electricity consumption has not been materially affected
by COVID-19 restriction measures. Finally, GGU sells about 40% of
its total electricity via PPAs with electricity market operators
(ESCO) that are fully owned by the government; the PPAs provide
favorable pricing terms and U.S. dollar-denominated pricing.

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

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

"We expect GGU's leverage to increase in 2020, after the merger
between the existing water and electricity operations."

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

GGU's FFO to debt could increase above our 12% threshold in
2021-2022, thanks to higher cash flow and moderate capex.   S&P
said, "We forecast that it will be 13%-15% during 2021-2022, based
on our growth expectations for water tariffs, volumes of
electricity generated, and electricity prices. Capex is also likely
to moderate to GEL80 million-GEL90 million, including maintenance
and modernization of water infrastructure (around 60% of total
capex), connections of new customers (around 20%), and investments
in electricity assets. However, we see significant potential
volatility in future metrics, and note that financial headroom in
our base case is relatively low."

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

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

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

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

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

-- Pressure on liquidity increases; and

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

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

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

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

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




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WIRECARD: Collapse to Prompt Changes to Financial Oversight Laws
----------------------------------------------------------------
Joseph Nasr at Reuters reports that the Wirecard case will result
in changes to laws on financial oversight, Finance Minister Olaf
Scholz said on July 10, as German prosecutors probe alleged fraud,
balance falsification and market manipulation at the collapsed
firm.

"It's about really getting to the bottom of what happened with
Wirecard.  It will lead to us having to change a whole range of
national laws," Reuters quotes Mr. Scholz as saying.

As reported by the Troubled Company Reporter-Europe on June 26,
2020, The Financial Times reported that Wirecard filed for
insolvency after the once high-flying payments group revealed a
multiyear fraud that led to the arrest of its former chief
executive.  In a remarkable collapse of a company once regarded as
a European tech champion, Wirecard said in a statement on June 25
that it faced "impending insolvency and over-indebtedness", the FT
related.  According to the FT, EY on June 25 said there were "clear
indications that this was an elaborate and sophisticated fraud,
involving multiple parties around the world in different
institutions, with a deliberate aim of deception", adding that
"even the most robust and extended audit procedures may not uncover
a collusive fraud".  Wirecard's admission that EUR1.9 billion of
cash was missing was the catalyst for the company's unravelling,
the FT noted.




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NAVIOS MARITIME: Egan-Jones Lowers FC Sr. Unsecured Rating to D
---------------------------------------------------------------
Egan-Jones Ratings Company, on July 6, 2020, downgraded the foreign
commercial senior unsecured rating on debt issued by Navios
Maritime Holdings, Inc. to D from C.

Headquartered in Pireas, Greece, Navios Maritime Holdings, Inc.
offers maritime freight transportation services.




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I R E L A N D
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BARINGS EURO 2019-1: Fitch Affirms B-sf Rating on Class F Debt
--------------------------------------------------------------
Fitch Ratings has affirmed Barings Euro CLO 2019-1 DAC. It has
removed three tranches from Rating Watch Negative (RWN) and
assigned them Negative Outlook.

RATING ACTIONS

BARINGS EURO CLO 2019-1 DAC

Class A XS2031990745;   LT AAAsf Affirmed;  previously at AAAsf

Class B-1 XS2031991552; LT AAsf Affirmed;   previously at AAsf

Class B-2 XS2031992105; LT AAsf Affirmed;   previously at AAsf

Class C-1 XS2031992873; LT Asf Affirmed;    previously at Asf

Class C-2 XS2031993418; LT Asf Affirmed;    previously at Asf

Class D XS2031994069;   LT BBB-sf Affirmed; previously at BBB-sf

Class E XS2031994903;   LT BB-sf Affirmed;  previously at BB-sf

Class F XS2031995033;   LT B-sf Affirmed;   previously at B-sf

TRANSACTION SUMMARY

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

KEY RATING DRIVERS

Slower Performance Deterioration

Deterioration of the portfolio's credit quality has slowed with the
Fitch-calculated weighted average rating factor (WARF) calculated
by Fitch at 38.9 as of July 4, 2020, largely unchanged from 38.8 as
of June 6, 2020. This is after a notable negative rating migration
from a reported WARF of 35.2 in April 2020 in light of the
coronavirus pandemic. The transaction is currently slightly below
par.

Assets with a Fitch-derived rating (FDR) of 'CCC' category or below
excluding defaults represent 14.1%, while assets with a
Fitch-derived rating on Negative Outlook is at 32% of the portfolio
balance. The Fitch WARF test and the 'CCC' limit test have failed
as per the latest calculation by Fitch and as a result the manager
has to reinvest such that both tests will show improvement or at
least no further deterioration in their results. All other tests
including the coverage tests are passing.

Coronavirus Baseline Scenario Impact

Fitch carried out a sensitivity analysis on the current portfolio
to envisage the coronavirus baseline scenario. The agency notched
down the ratings for all assets with corporate issuers on Negative
Outlook regardless of sector. This scenario shows resilience of the
current ratings of the class A to C notes with cushions. This
supports the affirmation with a Stable Outlook for these tranches.
While the class D to F notes show failure under the coronavirus
sensitivity analysis, the agency expects the portfolio's negative
rating migration to slow, making downgrades on these tranches less
likely in the short term. As a result, these classes are affirmed
at their current ratings, removed from RWN and assigned a Negative
Outlook.

'B'/ 'B-' Portfolio Credit Quality

Fitch assesses the average credit quality of obligors in the
'B'/'B-' category.

High Recovery Expectations: Almost 100% of the portfolios comprise
senior secured obligations. Fitch views the recovery prospects for
these assets as more favourable than for second-lien, unsecured and
mezzanine assets. The Fitch's weighted average recovery rate (WARR)
of the current portfolio is 65.3%.

Portfolio Composition

The portfolio is reasonably diversified with the exposure to top-10
obligors and the largest obligor at about 18% and 2% respectively.
The top three three-industry exposure is at about 30%. The
portfolio profile is passing all tests except the 'CCC' limit
test.

Cash Flow Analysis

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

When conducting cash flow analysis, Fitch's model first projects
the portfolio's scheduled amortisation proceeds and any prepayments
for each reporting period of the transaction life assuming no
defaults (and no voluntary terminations, when applicable). In each
rating stress scenario, such scheduled amortisation proceeds and
prepayments are then reduced by a scale factor equivalent to the
overall percentage of loans that are not assumed to default (or to
be voluntarily terminated, when applicable). This adjustment avoids
running out of performing collateral due to amortisation and
ensures all of the defaults projected to occur in each rating
stress are realised in a manner consistent with Fitch's published
default timing curve.

RATING SENSITIVITIES

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

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

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

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

Downgrades may occur if the build-up of credit enhancement
following amortisation does not compensate for a larger loss
expectation than initially assumed due to an unexpected high level
of defaults and portfolio deterioration. As the disruptions to
supply and demand due to COVID-19 become apparent for other
sectors, loan ratings in those sectors would also come under
pressure. Fitch will update the sensitivity scenarios in line with
the view of its Leveraged Finance team. Should the transaction
deteriorate materially within a short period and not be offset by
the deleveraging of the transaction, the class D to F notes may be
downgraded.

Coronavirus Downside Sensitivity

Fitch has added a sensitivity analysis that contemplates a more
severe and prolonged economic stress caused by a re-emergence of
infections in the major economies, before halting recovery begins
in 2Q21. The downside sensitivity incorporates the following
stresses: applying a notch downgrade to all Fitch-derived ratings
in the 'B' rating category and applying a 0.85 recovery rate
multiplier to all other assets in the portfolio. For typical
European CLOs this scenario results in a category-rating change for
all ratings.

GRAND HARBOUR 2019-1: Fitch Affirms B-sf Rating on Class F Debt
---------------------------------------------------------------
Fitch Ratings has affirmed all tranches of Grand Harbour CLO 2019-1
DAC, and removed the class E and F notes from Rating Watch Negative
(RWN).

RATING ACTIONS

Grand Harbour CLO 2019-1 DAC

Class A XS2020626953;   LT AAAsf Affirmed;  previously at AAAsf

Class B-1 XS2020628140; LT AAsf Affirmed;   previously at AAsf

Class B-2 XS2020629114; LT AAsf Affirmed;   previously at AAsf

Class C XS2020629460;   LT A+sf Affirmed;   previously at A+sf

Class D XS2020630120;   LT BBB-sf Affirmed; previously at BBB-sf

Class E XS2020630807;   LT BB-sf Affirmed;  previously at BB-sf

Class F XS2020652108;   LT B-sf Affirmed;   previously at B-sf

TRANSACTION SUMMARY

Grand Harbour CLO 2019-1 DAC is a cash flow collateralised loan
obligation (CLO) mostly comprising senior secured obligations. The
transaction is in its reinvestment period, which is scheduled to
end in March 2024, and the portfolio is actively managed by
MeDirect Bank Plc.

KEY RATING DRIVERS

Stable Portfolio Performance

The rating actions reflect the stabilisation of the portfolio's
performance. The transaction is above target par. The
Fitch-calculated weighted average rating factor (WARF) of the
portfolio was slightly weaker at 34.12 at July 4, 2020 compared
with the trustee-reported WARF of 33.66 owing to rating migration.
The 'CCCsf' or below category assets (including non-rated assets)
represent, according to Fitch's calculation, 5.73%, which is below
the 7.5% limit. All tests, including the overcollateralisation and
interest coverage tests, are passing.

Coronavirus Baseline Scenario Impact

Fitch carried out a sensitivity analysis on the target portfolio to
determine the coronavirus baseline scenario. The agency notched
down the ratings for all assets with corporate issuers on Negative
Outlook regardless of sector. This scenario demonstrates the
resilience of the ratings of the class A, B, C and D notes with
cushions. While the class E and F notes still show sizeable
shortfalls, the agency views that the portfolio's negative rating
migration is likely to slow down and downgrades on these tranches
are less likely in the short term. As a result, the RWN has been
removed and these classes are affirmed at their current ratings.
The Negative Outlook reflects the risk of credit deterioration over
the longer-term, due to the economic fallout from the pandemic.

'B'/'B-' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'/'B-'
range.

High Recovery Expectations

Senior secured obligations comprise 98.99% of the portfolio. Fitch
views the recovery prospects for these assets as more favourable
than for second-lien, unsecured and mezzanine assets. The Fitch
weighted average recovery rate (WARR) of the current portfolio is
65.34%.

Portfolio Composition

The top 10 obligors' concentration is 18.05% and no obligor
represents more than 2% of the portfolio balance. As per Fitch
calculation the largest industry is business services at 16.02% of
the portfolio balance and the three-largest industries represent
36.77%, against limits of 15% and 40%, respectively.

Cash Flow Analysis

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

When conducting cash flow analysis, Fitch's model first projects
the portfolio's scheduled amortisation proceeds and any prepayments
for each reporting period of the transaction life assuming no
defaults (and no voluntary terminations, when applicable). In each
rating stress scenario, such scheduled amortisation proceeds and
prepayments are then reduced by a scale factor equivalent to the
overall percentage of loans that are not assumed to default (or to
be voluntarily terminated, when applicable). This adjustment avoids
running out of performing collateral due to amortisation and
ensures all of the defaults projected to occur in each rating
stress are realised in a manner consistent with Fitch's published
default timing curve.

RATING SENSITIVITIES

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

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

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

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

Coronavirus Downside Scenario

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

HOUSE OF IRELAND: Shuts Down Due to Coronavirus Pandemic Impact
---------------------------------------------------------------
Peter Hamilton and Mark Paul at The Irish Times report that House
of Ireland, a tourist-focused giftware retail group with
high-profile outlets in Dublin and Belfast, is shutting down, as
damage from the coronavirus pandemic begins to take its toll on the
beleaguered tourism and retail sectors.

According to The Irish Times, five companies associated with the
group have called creditor Zoom meetings for later this month to
appoint a liquidator to the business, which has been operated for
45 years by the Galligan family.



JUBILEE CLO 2019-XXIII: S&P Lowers Rating to 'BB- (sf)' on E Notes
------------------------------------------------------------------
S&P Global Ratings lowered and removed from CreditWatch negative
its credit ratings on Jubilee CLO 2019-XXIII B.V.'s class E and F
notes. At the same time, S&P has affirmed its ratings on all other
classes of notes.

S&P said, "On April 27, 2020, we placed on CreditWatch negative our
ratings on the class E and F notes following a number of negative
rating actions on corporates with loans held in Jubilee CLO
2019-XXIII driven by coronavirus-related concerns and the current
economic dislocation.

"The rating actions follow the application of our relevant criteria
and reflect the deterioration of the portfolio's credit quality.

"Since our closing analysis of the transaction, our estimate of the
total collateral balance (performing assets, principal cash, and
expected recovery on defaulted assets) held by the CLO has slightly
increased, mainly due to par built. As a result, the available
credit enhancement has increased for all rated notes.

  Table 1
  Credit Analysis Results
  Class  Current amount  Credit enhancement(%)  Credit enhancement

         (mil. EUR)      (based on June          at closing (%)
                           trustee report)
  A          248.00           27.57                  27.55
  B           41.80           27.57                  27.55
  C           27.50           14.98                  14.95
  D           22.90           14.98                  14.95
  E           19.90           10.01                   9.98
  F            8.00            8.01                   7.98
  Subordinated 41.10            N/A                    N/A

  N/A--Not applicable.

S&P said, "In our view, the credit quality of the portfolio has
deteriorated since our last review, for example, due to the
increase in 'CCC' rated assets to about EUR32 million.
Additionally, we placed on CreditWatch negative our ratings on more
than 10% of the pool."

  Table 2
  Transaction Key Metrics
                                  As of July 2020   At closing
                    (based on June trustee report)
  SPWARF                              3,022.18       2,781.88
  Default rate dispersion (%)           617.71         503.44
  Weighted-average life (years)           5.17           5.72
  Obligor diversity measure              95.33          91.41
  Industry diversity measure             18.68          20.38
  Regional diversity measure              1.17           1.13
  Total collateral amount
   excluding cash (mil. EUR)            405.51         400.00
  Defaulted assets (mil. EUR)                0              0
  Number of performing obligors            122            102
  'AAA' WARR (%)                         36.34          36.97

  SPWARF--S&P Global Ratings' weighted-average rating factor.    
  WARR--Weighted-average recovery rate.

S&P said, "Following the application of our criteria, for the class
B, C, and D notes, our credit and cash flow analysis indicates that
the available credit enhancement 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. The class A notes
are able to withstand the stresses we apply at the currently
assigned rating level, based on the available credit enhancement
level. We have therefore affirmed our rating on this class of
notes."

On a standalone basis, the results of the cash flow analysis
indicated a lower rating than currently assigned for the class E
notes. S&P said, "The collateral portfolio's credit quality has
deteriorated since our closing analysis, specifically in terms of
'CCC' rated asset exposure and the proportion of assets on
CreditWatch negative. This has resulted in higher scenario default
rates (SDRs). Concurrently, our cash flow analysis highlights a
general decline in excess spread cash flows attributable to the
class E notes, which in our view is driven by the fall in
weighted-average life (WAL). These factors have resulted in lower
break-even default rates (BDRs), which represent the gross levels
of defaults that the transaction may withstand at each rating
level. The fall in BDRs, and simultaneous increase in SDRs, under
our analysis indicates that the passing level for the class E notes
is now one notch lower from its current rating level, at 'BB-
(sf)'. We have therefore lowered our rating on the class E notes to
'BB- (sf)' from 'BB (sf)'."

The class F notes' current BDR cushion is 0.06% compared to 3.36%
at closing. This reflects the difference between the BDR and the
SDR at the given rating level, in this case 'B (sf)'. The BDR for
this class of notes has been negatively affected similar to the
class E notes as discussed above. S&P said, "We considered the
cushion insufficient to maintain a rating of 'B (sf)' given the
current economic environment and the 10% exposure to assets
currently on CreditWatch negative. We also noted the CLO's exposure
to some of the sectors that are high and medium risk. We have
therefore lowered our rating on the class F notes to 'B- (sf)' from
'B (sf)'."

S&P said, "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 performed any additional
scenario analysis; however, we did note that based on our industry
classifications, "hotels, restaurants, and leisure" represents the
largest industry exposure in the portfolio.

"Counterparty, operational, and legal risks are adequately
mitigated in line with our criteria. We have also considered the
differences in volatility buffer posting requirements, which may
arise in the event that the issuer enters into derivative
transactions using its current documentation compared against our
updated counterparty criteria requirements, as per our 2019
publication. According to the trustee report available to S&P
Global Ratings, currently the issuer is not entered into any hedge
transactions.

"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.

"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
(rated 'BB+' and lower) corporate loan issuers, we may make
qualitative adjustments to our analysis when rating CLO tranches to
reflect the likelihood that changes to the underlying assets'
credit profile 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, we typically review the likelihood of
near-term changes to the portfolio's credit profile by evaluating
the transaction's specific risk factors. For this transaction, we
took into account 'CCC' and 'B-' rated assets and assets with
ratings on CreditWatch negative.

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, and taking into account other
qualitative factors as applicable, we believe that the ratings
assigned are commensurate with the available credit enhancement for
all classes of notes."

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."

S&P said, "We will continue to review the ratings on our
transactions in light of these macroeconomic events. We will take
further rating actions, including CreditWatch placements, as we
deem appropriate."

SOUND POINT II: Fitch Affirms B-sf Rating on Class F Notes
----------------------------------------------------------
Fitch Ratings has affirmed all tranches on Sound Point Euro CLO II
DAC, removed the Rating Watch Negative (RWN) on the class E and F
notes and assigned them on Negative Outlook.

RATING ACTIONS

Sound Point Euro CLO II Funding DAC

Class A XS2032700978;   LT AAAsf Affirmed;  previously at AAAsf

Class B-1 XS2032701513; LT AAsf Affirmed;   previously at AAsf

Class B-2 XS2032701943; LT AAsf Affirmed;   previously at AAsf

Class C XS2032702248;   LT A+sf Affirmed;   previously at A+sf

Class D XS2032702677;   LT BBB-sf Affirmed; previously at BBB-sf

Class E XS2032702917;   LT BB-sf Affirmed;  previously at BB-sf

Class F XS2032702594;   LT B-sf Affirmed;   previously at B-sf

Class X XS2032701190;   LT AAAsf Affirmed;  previously at AAAsf

TRANSACTION SUMMARY

Sound Point Euro CLO II DAC is a cash flow collateralised loan
obligation (CLO) comprising mostly senior secured obligations. The
transaction is in its reinvestment period, which is scheduled to
end in April 2024, and the portfolio is actively managed by Sound
Point CLO C-MOA, LLC

KEY RATING DRIVERS

Stable Portfolio Performance

As per the trustee report dated May 6, 2020, the current portfolio
was below the target par by 0.12% however there are no defaulted
assets in the portfolio. The Fitch-calculated weighted average
rating factor (WARF) of the portfolio as of July 4, 2020 increased
marginally to 33.89 compared to trustee reported WARF of 33.46.
Fitch-calculated 'CCC' category or below assets (including any
unrated names) represented 7.01% of the portfolio against the limit
of 7.5%. As per the trustee report, all Fitch-related collateral
quality tests, portfolio profile tests and the coverage tests were
passing.

'B'/'B-' Category Portfolio Credit Quality

Fitch assesses the average credit quality of obligors in the
'B'/'B-' category. The Fitch-calculated WARF would increase to
35.76, after applying the coronavirus stress.

High Recovery Expectations

Senior secured obligations comprise 97.7% of the portfolio. Fitch
views the recovery prospects for these assets as more favourable
than for second-lien, unsecured and mezzanine assets. The
Fitch-calculated weighted average recovery rate is 66.27%.

Portfolio Composition

The portfolio is well-diversified across obligors, countries and
industries. The top-10 obligor concentration is 16.16% and no
obligor represents more than 2.07% of the portfolio balance. The
Fitch-calculated top industry and top three industries represent
15.38% and 38.6% of the portfolio balance, respectively, against
limits of 17.5% and 40%.

Cash Flow Analysis

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

The model-implied rating for the class E notes is one notch below
the current rating. The committee decided to deviate from the
model-implied rating, given the marginal shortfall was driven by
the back-loaded default timing scenario only and stable transaction
performance. The ratings are in line with the majority of
Fitch-rated EMEA CLOs'. The RWN was removed for the class E and F
notes and these tranches are now on Outlook Negative as the
shortfalls under COVID-19 sensitivity have narrowed since the last
rating action and the portfolio's credit quality has stabilised
over the past month. For the class D notes, the tranche is showing
a small cushion, which is reflected in the Negative Outlook.

When conducting cash flow analysis, Fitch's model first projects
the portfolio's scheduled amortisation proceeds and any prepayments
for each reporting period of the transaction life, assuming no
defaults (and no voluntary terminations, when applicable). In each
rating stress scenario, such scheduled amortisation proceeds and
prepayments are then reduced by a scale factor equivalent to the
overall percentage of loans not assumed to default (or to be
voluntarily terminated, when applicable). This adjustment avoids
running out of performing collateral due to amortisation, and
ensures all of the defaults projected to occur in each rating
stress are realised in a manner consistent with Fitch's published
default timing curve.

RATING SENSITIVITIES

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

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

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

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

Coronavirus Baseline Scenario Impact

The Outlook Negative on the class D, E and F notes are as a result
of Fitch's sensitivity analysis ran in light of the coronavirus
pandemic. The agency notched down the ratings for all assets with
corporate issuers with a Negative Outlook regardless of the sector.
This represents 21.7% of the portfolio. The Stable Outlooks of the
other tranches' ratings reflect that the respective tranche's
rating can withstand the coronavirus baseline sensitivity
analysis.

Coronavirus Downside Scenario

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

TORO EUROPEAN 2: Fitch Affirms B-sf Rating on Class F-R Debt
------------------------------------------------------------
Fitch Ratings has revised the Outlook on one tranche of Toro
European CLO 2 DAC to Negative from Stable, and removed two other
tranches from Rating Watch Negative (RWN).

RATING ACTIONS

Toro European CLO 2 DAC

Class A-R XS1884797827;   LT AAAsf Affirmed;  previously at AAAsf

Class B-1-R XS1884798551; LT AAsf Affirmed;   previously at AAsf

Class B-2-R XS1884799104; LT AAsf Affirmed;   previously at AAsf

Class C-R XS1884799799;   LT Asf Affirmed;    previously at Asf

Class D-R XS1884800472;   LT BBB-sf Affirmed; previously at BBB-sf


Class E-R XS1884800985;   LT BB-sf Affirmed;  previously at BB-sf

Class F-R XS1884801280;   LT B-sf Affirmed;   previously at B-sf

Class X XS1884797587;     LT AAAsf Affirmed;  previously at AAAsf

TRANSACTION SUMMARY

Toro European CLO 2 DAC is a cash flow CLO that closed in September
2016 and was reset in October 2018. The portfolio is actively
managed by Chenavari Credit Partners LLP, and the asset portfolio
mostly comprises European leveraged loans and bonds.

KEY RATING DRIVERS

Portfolio Performance Deterioration

The portfolio has experienced further negative rating migration due
to the coronavirus pandemic. Per Fitch calculation, the weighted
average rating factor (WARF) of the portfolio has increased to
36.23 from a reported 35.07 as of April 2020 and it is in breach of
its test. The transaction is currently below par by 1.21% (assuming
defaulted assets without recoveries. Fitch carried out a
sensitivity analysis on the current portfolio to envisage the
coronavirus baseline scenario. The agency notched down the ratings
for all assets with corporate issuers on Negative Outlook
regardless of sector. This scenario shows resilience of the current
ratings of class A to C with cushions. This supports the
affirmation with Stable Outlook for these tranches.

While the class D to F notes show failure under the coronavirus
sensitivity analysis, the agency views that the portfolio negative
rating migration is likely to slow down and downgrades on these
tranches are less likely in the short term. As a result, these
classes have been affirmed and assigned Negative Outlooks.

'B'/'B-' Category Portfolio Credit Quality

Fitch assesses the average credit quality of obligors to be in the
'B'/'B-' category. The Fitch-calculated 'CCC' and below category
assets (including unrated assets) represented 9.99% of the
portfolio on July 4, 2020, which was over the 7.5% limit, while
assets with a Fitch-derived rating on Negative Outlook was 20.78%
of the portfolio balance.

High Recovery Expectations

Around 96% of the portfolio comprises senior secured obligations.
Fitch views the recovery prospects for these assets as more
favourable than for second-lien, unsecured and mezzanine assets.
Fitch's weighted average recovery rate (WARR) of the current
portfolio is 62.61%.

Portfolio Composition

The portfolio is well-diversified across obligors, countries and
industries. Exposure to the top-10 obligors is 13.89% and no
obligor represents more than 3% of the portfolio balance. The
largest industry is business services at 13.49% of the portfolio
balance, followed by chemicals at 13.2% and automobiles at 9.91%.

Cash Flow Analysis

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

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

Deviation from Model-Implied Rating

The model-implied ratings for the class D and E notes are one notch
below the current ratings and for the class F notes two notches
below the current rating. The committee deviated from the
model-implied ratings on these classes as the shortfalls were
driven by the back-loaded default timing scenario only. The current
ratings are in line with the majority of Fitch-rated EMEA CLOs'.
Downgrades on these tranches are less likely in the short term due
to a slowdown in the portfolio's negative rating migration.

When conducting cash flow analysis, Fitch's model first projects
the portfolio's scheduled amortisation proceeds and any prepayments
for each reporting period of the transaction life, assuming no
defaults (and no voluntary terminations, when applicable). In each
rating stress scenario, such scheduled amortisation proceeds and
prepayments are then reduced by a scale factor equivalent to the
overall percentage of loans not assumed to default (or to be
voluntarily terminated, when applicable). This adjustment avoids
running out of performing collateral due to amortisation, and
ensures all of the defaults projected to occur in each rating
stress are realised in a manner consistent with Fitch's published
default timing curve.

RATING SENSITIVITIES

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

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

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

Downgrades may occur if the build-up of the notes' credit
enhancement following amortisation does not compensate for a larger
loss expectation than initially assumed due to an unexpectedly high
level of default and portfolio deterioration. As the disruptions to
supply and demand due to coronavirus become apparent for other
vulnerable sectors, loan ratings in those sectors would al so come
under pressure. Fitch will update the sensitivity scenarios in line
with the views of its Leveraged Finance team. In addition to the
baseline scenario, Fitch has defined a downside scenario for the
current coronavirus crisis, whereby all ratings in the 'B' category
would be downgraded by one notch and recoveries would be lowered by
15%. For typical European CLOs this scenario results in a
category-rating change for all ratings.



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

GAMMA BIDCO: S&P Assigns Preliminary B ICR, Outlook Negative
------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B' issuer credit
rating and negative outlook to Gamma Bidco SPA (Gamma Bidco), as
well as a preliminary 'B' issue rating and '3'(55%) preliminary
recovery rating to the group's proposed new notes. At the same
time, S&P affirmed its 'B' ratings on Gamenet Group and maintaining
the negative outlook.

Gamma Bidco intends to raise new debt to refinance existing
facilities issued by itself and core subsidiary Gamenet Group.

Sponsor-owner Apollo Global acquired Gamenet in 2019 through a
leveraged acquisition. The group's existing senior notes and
Gamenet Group's RCF remained in place and a EUR216 million bridge
term loan was raised at the Gamma Bidco level to fund the
acquisition. Through the proposed financing transaction, Gamma
Bidco intends to raise EUR640 million of new notes and a new super
senior EUR100 million RCF, and use it in conjunction with cash on
the balance sheet to refinance existing indebtedness at Gamenet
Group and Gamma Bidco. S&P's previously had adjusted its credit
metrics in its analysis of Gamenet Group to include a debt
adjustment for the Gamma Bidco loan. The proposed transaction is
broadly leverage neutral for the group. However the Gamma Bidco
loan is currently payment in kind interest, and as such the new
financing proposal will increase cash interest expense for the
group in addition to any incremental margin expense for the new
financing, which will impact the group's cash flow generation.

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."

S&P said, "We view positively the reopening of a significant
portion of the group's land-based operations from lockdown.  
However, this was largely incorporated in our prior assumptions of
a three-month lockdown until the end of June. Notwithstanding this
development, we continue to see downside risks based on a
recessionary environment in Europe in 2020 and knock-on effects to
consumer sentiment and spending, risks of a second wave, and
affects from continued social distancing well into 2021. We believe
that it may be beyond 2021 before some market participants recover
earnings to pre-crisis levels."

The group's recent trading since reopening shows promise; however,
the trading track record is short and in our view macroeconomic
risks remain in the trading environment.   Gamma Bidco performed
better than our original forecast because it managed significant
cost savings and benefited from government support schemes,
limiting the impact on earnings. The reopening of operating
locations is a credit positive for the group and also moves the
group from being in a cash burn position to generating positive
EBITDA and cash flow, which supports liquidity and enhances the
group's efforts to recover credit metrics. Recent evidence from
initial trading in the past few weeks has been positive, with the
group currently outperforming like-for-like revenue in retail and
online betting versus 2019 pre-pandemic performance. We now expect
the group will generate S&P Global Ratings-adjusted EBITDA of about
EUR102 million in 2020, and S&P Global Ratings-adjusted leverage of
around 7x compared with 8x in our previous base case in May 2020
(our adjusted debt includes the EUR640 million proposed notes,
EUR30 million operating leases, EUR28 million deferred
consideration, and EUR8 million of pension obligations). We have
included in our forecasts some sensitivity for underperformance to
the management's base case, reflecting our macroeconomic view. We
await further track record of performance to determine whether the
improved trading levels can be sustained further into the second
half of 2020 and beyond.

We anticipate Gamma Bidco's liquidity will remain adequate after
the refinancing.   Gamenet maintained a sound liquidity position
throughout the lockdown period, and has now returned to positive
EBITDA since operations resumed in June. After the refinancing, we
estimate Gamenet's liquidity position will remain adequate and
sufficient to withstand COVID-19-related effects throughout the
recovery path, with a cash position of EUR83 million and full
availability under the proposed EUR100 million RCF, which we assume
will be undrawn after the transaction. The proposed RCF is subject
to a maximum first-lien net leverage ratio covenant if at least 40%
of the RCF is drawn. Under our base-case scenario, we anticipate
Gamenet will maintain adequate headroom under its financial
covenant over the next 12 months.

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

-- Health and safety

The negative outlook reflects uncertainty about the duration of the
COVID-19 pandemic and the potential effects it could have on
Gamenet's capital structure, liquidity, financial performance, and
competitive position in 2020 and beyond.

S&P could lower the rating if the effects of COVID-19 led the
group's credit metrics to weaken beyond our base case. The
downgrade could occur from one or a combination of the following:

-- Gamenet experiences sustained material weakness in operating
earnings and margins, for example, from a further shutdown in
response to COVID-19 or adverse regulatory developments that led to
a revision of our assessment of the strength or robustness of
business and earnings stability.

-- Gamenet's credit metrics weakened materially beyond our base
case, such that our adjusted leverage remained sustainably above
5.5x; adjusted FOCF to debt was sustainably well below 5%; or
reported FOCF were sustainably below EUR30 million.

-- Liquidity deteriorated materially.

-- If S&P considered heightened risk of a specific default event,
such as a distressed exchange or restructuring, a debt purchase
below par, or covenant breach.

-- If financial policy turns more aggressive, through sustained
weaker credit metrics, debt-funded acquisitions, or shareholder
returns.

S&P could revise the outlook to stable once we have more certainty
regarding the duration and severity of the COVID-19 pandemic's
effects on Gamenet's operating performance, liquidity, and cash
flows.

An affirmation would depend on a full recovery being likely by
year-end 2020 and evidence that the company's efforts to reduce
costs, limit the impact on cash flows, and maintain adequate
liquidity are likely to succeed.

To affirm the rating, we would expect to have greater certainty of
credit metrics returning to and remaining anchored at:

-- Adjusted leverage below 5.5x; and.
-- Adjusted FOCF to debt above 5% in 2021.





===========
L A T V I A
===========

AIR BALTIC: S&P Affirms B Sr. Unsec. Notes Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' ratings on Air Baltic and its
senior unsecured notes and removed them from CreditWatch with
negative implications where S&P placed them on March 20, 2020.

The European Commission has approved the Latvian government's
EUR250 million recapitalization of Air Baltic in the context of the
COVID-19 pandemic.   The proceeds from the equity participation
will strengthen Air Baltic's liquidity, alleviate a risk of any
potential payment default in the next 12 months, and allow the
airline to resume growth and increase activity as air traffic
demand recovers. S&P said, "As we understand, the capital injection
will be executed in one tranche by July 31, increasing the
government's share in Air Baltic beyond 80%. Based on our review of
the relevant legal documentation, we regard the EUR250 million
capital participation as akin to common equity. This is because it
is subordinated to all existing debt obligations, has no maturity
date, does not contain any fixed mandatory remuneration such as
interest or dividends, and grants voting rights. The proceeds from
the equity participation will cover Air Baltic's negative free
operating cash flow (FOCF) and prevent accumulation of new debt,
according to our base case. Consequently, we now expect Air
Baltic's adjusted debt in 2020 and 2021 to remain unchanged at the
2019 level of about EUR820 million. That said, we still regard the
airline's capital structure as highly leveraged and unsustainable,
aggravated by negative FOCF generation (after lease amortization)
in 2020 and likely in 2021, although improving. Our assessment of
Air Baltic's stand-alone credit profile (SACP) at 'ccc+' mirrors
these weaknesses offset by a two-notch rating uplift for the
government support."

S&P said, "We see a moderately high likelihood that the Latvian
government would provide Air Baltic with extraordinary market-based
support, beyond the EUR250 million equity participation.   This
translates into a two-notch uplift from the company's SACP. We base
our view on our assessment of Air Baltic's strong links with, and
important role for, the Latvian government. The government has a
controlling stake in Air Baltic and appoints three of the airline's
four supervisory board members. At the same time, the government
views the airline as a strategic asset that is critical to Latvia's
economic development and tourism industry. The government estimates
that about 2.5% of GDP is typically linked to Air Baltic's
operations. Furthermore, Air Baltic provides air connectivity to
the country, which would otherwise be less accessible by
alternative modes of transport, and to a certain extent, serves as
a feeder to two other government-owned assets--Riga Airport and
Latvian Railways. Additionally, unlike low-cost carriers, Air
Baltic attracts business traffic by offering more convenient and
sufficiently frequent flights, which provide Latvia with stable
economic ties with the rest of Europe.

S&P said, "We now regard Air Baltic's liquidity profile as adequate
rather than weak.  The proceeds from the equity participation will
help to stabilize Air Baltic's liquidity, even though we anticipate
that the airline will continue burning cash in the next 12 months.
We now expect Air Baltic's liquidity sources will cover uses by
about 1.8x over the 12 months started April 1, 2020, and we expect
no shortfalls in the following 12 months.

S&P said, "We expect Air Baltic to report negative EBITDA in 2020
as the pandemic continues constraining air traffic.   Air Baltic
has cancelled up to 50% of its planned flights until November 2020
and postponed the launch of new routes for the summer season. The
airline is currently undertaking multiple cost-savings measures,
such as redundancies of nearly 500 employees (versus its 1,716
employee headcount at year-end 2019), reductions in capital
expenditure especially for growth, and early retirement of older
aircraft. Compared with its European peers, Air Baltic has had low
fuel hedges--up to 40% of the expected fuel consumption--which
should benefit the airline once flights resume, taking into
consideration the drop in crude oil prices. However, we do not
expect cost-savings measures to be sufficient to offset the sharp
decline in air traffic demand. As a result, we forecast negative
adjusted EBITDA for 2020, and don't expect it will improve to the
2019 level of about EUR102 million until 2022. Accordingly, our
adjusted debt-to-EBITDA ratio will be negative in 2020 and still
exceed the 2019 level of 8.0x in 2021."

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

-- Health and safety

The stable outlook reflects S&P's expectation that Air Baltic will
maintain a sufficient liquidity buffer in the coming 12 months
while its free operating cash flows stays negative.

Downside scenario

S&P said, "We could lower the rating if we believed the company
would likely default because of a near-term liquidity crisis or
consider a distressed debt exchange within 12 months. A liquidity
crisis could occur if, contrary to our expectations, the COVID-19
pandemic cannot be contained, resulting in prolonged lockdowns and
travel restrictions, or if passengers remain reluctant to book
flights and management's actions to adjust operating costs and
capital investments are insufficient to avoid a liquidity shortfall
in the coming 12 months, in the absence of extraordinary government
support."

Upside scenario

S&P said, "To consider an upgrade, we would need to be confident
that demand conditions are normalizing and the recovery is robust
enough to enable Air Baltic to partly restore its financial
strength, such as adjusted funds from operations cash interest
coverage increasing to at least 1.5x, and FOCF generation turning
positive on a sustained basis. We would expect this to be further
underpinned by a stable liquidity position."




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

EP BCO: S&P Affirms BB- LT Issuer Credit Rating, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' long-term issuer credit
rating on EP Bco (Euroports). S&P also affirmed its 'BB-' and '3'
recovery ratings on its first lien term loan and revolving credit
facility (RCF), and its 'B' issue and '6' recovery ratings on its
second lien term loan.

COVID-19 will likely have a less material effect on Euroports
compared to other port infrastructure assets.

The global port sector is facing a challenging 2020 as the COVID-19
pandemic and related lockdown measures cause supply chain
disruption and demand contraction in the eurozone and globally.
However, S&P believes Euroports is less exposed to COVID-19-related
disruption than most transportation infrastructure companies given
the essential commodities it handles, its limited container focus,
and key long-term client relationships.

Euroports benefits from a captive/loyal client base as numerous
clients are locked-in by contractual terms (26% take or pay
commitment with respect to key contracts), joint investments in
specialized terminals, and geographical constraints thanks to its
strategic locations. The company has not experienced any meaningful
disruption to operations resulting from COVID-19 in the first half
of the year and does not currently expect material deviations from
budget in 2020.

As a dry-bulk and break-bulk specialist (about 75% of handling
revenues) Euroports' operations are more resilient than final
products or container volumes. S&P said, "In our base case, we
expect a contraction in volumes of about 10% in 2020, mainly from a
slowdown in coal and metals demand in Europe, while we consider
fertilizers, minerals, and agribulk trades more resilient to
downturns. We also expect an increase in storage requirements, from
which the company derives about 10% of its revenue."

On the other hand, S&P anticipates the freight forwarding business
will be more affected than the ports operations because of supply
chain disruptions and a shortage of containers. This segment
accounts for about 40% of the company's total revenues but only
about 15% of EBITDA, with a corresponding EBITDA margin of about 4%
on average.

S&P expects Euroports' credit metrics will remain commensurate with
the rating, but ratings headroom remains tight.

This is because, under S&P's assumptions, it forecasts S&P Global
Ratings-adjusted EBITDA will remain at about EUR100 million
(including a EUR38 million operating leasing adjustment), in line
with the EUR96 million generated in 2019, on the delivery of
cost-initiative programs initiated by the new shareholders. The
positive results come from the termination of rental agreements at
some offices, reducing cost structure, centralizing port
operations, and synergies between Euroports' Manuport Logistics
business (MPL) and MRG's R-Logitech division.

S&P said, "As a result, we forecast FFO to debt to remain about
7.0%-7.5% in 2020-2022. Under our revised base case we anticipate
debt to EBITDA will temporary remain high at about 7.0x in 2020,
from 7.2x in 2019, before improving to 6.0x-6.5x in 2021-2022.
Deleveraging will mainly rely on EBITDA growth. We see FFO to debt
at 7.0% and debt to EBITDA below 6.5x as commensurate with its
credit quality.

"We believe the company is partially protected from the weaker
credit profile of the majority shareholder, MRG.

"The ratings on Euroports primarily reflect the 'bb-' stand-alone
credit profile (SACP) of the EP group and of Euroports itself. The
ratings also reflects our view that the EP group is partially
protected from potential negative impact from its majority
shareholder, MRG, whose credit quality we see as weaker than
Euroports'. The ring-fencing comes from MRG acquiring 53.4% of
Euroports in a consortium with Belgian sovereign wealth funds, PMV
and FPIM (23.3% each)."

The ratings on Euroports could differ by up to two notches from
MRG's credit quality thanks to protections from the significant
minority shareholders and their powers under the shareholder
agreement. While MRG will control Euroports--given its significant
influence over the latter's management and board--the minority
shareholders (PMV and FPIM's combined stake is 46.84%) have veto on
a number of important matters including EP group's budget,
dividends, new borrowings, any transaction or agreement with the
shareholder, and voluntary bankruptcy. Therefore, S&P believes the
two sovereign wealth funds can exercise active oversight and joint
decision making when it comes to Euroports' strategy and cash
flows. In addition, there are certain restrictions in the financial
documentation, which prevent dividend distribution unless leverage
is below 4.25x.

Euroports contributes to about 65%-70% of the group's total
reported EBITDA on a fully consolidated basis. S&P said, "We
believe MRG is exposed to more volatile industries (trading and
marketing metals) through its Metalcorp subsidiary. We expect MRG's
adjusted EBITDA to decline by about 20%-25% in 2020 from EUR176
million pro forma in 2019."

S&P Global Ratings acknowledges a high degree of uncertainty about
the evolution of the coronavirus pandemic.

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

The stable outlook reflects Euroports' general resilience to
COVID-19-related disruptions thanks to the nature of its contacts
and port operations and ongoing cost saving programs. These factors
should enable it to maintain a credit profile commensurate with the
rating. S&P said, "We consider adjusted FFO to debt of at least 7%
and debt to EBITDA no greater than 6.0x-6.5x to be consistent with
the 'bb-' SACP. Furthermore, we assume the company will implement a
sufficiently cautious financial policy to support credit measures
consistent with the rating, thanks to active oversight and
governance by the minority shareholders."

S&P could lower the rating if it believes:

-- FFO to debt will fall below 7% and debt to EBITDA will increase
above 6.5x on average over 2020-2022. This could result from a
setback in operating performance in connection with a shortfall in
volumes from key customers or a failure to implement planned cost
savings.

-- MRG's credit quality has deteriorated as a result of additional
leverage or weaker-than-expected operational underperformance of
its riskier trading business.

-- The insulation between MRG and EP has weakened, depending on
the stability of the shareholders' pact and the way they execute
the agreed terms under their agreement.

-- S&P is unlikely to raise the rating in the near term because of
MRG's high leverage and its potential effect on Euroports'
financial profile.


SUNSHINE LUXEMBOURG VII: Fitch Alters Outlook on B LT IDR to Neg.
-----------------------------------------------------------------
Fitch Ratings has revised the Outlook on Sunshine Luxembourg VII
S.a.r.l's (Galderma) Long-Term Issuer Default Rating (IDR) to
Negative from Stable and affirmed the IDR at 'B' and the senior
secured rating at 'B+'.

The Outlook revision reflects the increased execution risks
stemming from challenges in the company's prescription business and
in turning around the terminally declining revenues of consumer
product ProActiv. Due to the COVID-19 pandemic, Fitch now projects
a setback in the growth of the company's historically strong
aesthetics operations. These operations anchor the overall
robustness of Galderma's business profile thanks to their material
contribution to the group's profits, leading market positions and
steady growth opportunities, which Fitch expects to resume in
2021.

With high initial leverage at closing in 2019, financial risks
remain elevated and despite a reduction in operating costs, Fitch
anticipates the company may fail to reduce FFO leverage below 8.5x
by 2022, by when Fitch initially expected to see de-leveraging when
it assigned the 'B' IDR. Visibility of a steady de-leveraging path,
thanks to good performance in aesthetics and consumer, and early
completion of efficiency measures alongside sustained free cash
flow (FCF) from 2021-2022 could support a revision of the Outlook
to Stable.

KEY RATING DRIVERS

Aesthetics Suffers Temporary Setbacks: Fitch expects 2020 sales to
be mildly down (low single digits) on 2019 levels but growth on a
year -on-year basis to resume from 2021, albeit at a more modest
pace due to lower consumer spending power. The pandemic led to a
closure of the clinics where Galderma's customers receive their
treatments based on the company's products, with a heavy
contraction of sales in April and May 2020.

During June customers demonstrated their stickiness to these
treatments, which are typically repeated at least twice a year, and
have returned to their doctors. Management reports that doctors
have become more efficient and believe they should be able to catch
up in 2H20 with most of the treatments not administered during
lockdown.

Execution Risks Remain: With losses in 2018 and 2019, sales of the
acne treatment subscription-based Pro-activ business (approximately
7% of 2019 consolidated group sales) have not yet reversed their
continued decline over the past decade. This is despite a new
marketing strategy launched in 2019. Galderma also reported
potential early competition from generics for its patented rosacea
treatment Soolantra, which adds to the anticipated coming
off-patent of Epiduo and Oracea in 2022 and reported some delays to
the progress of its pipeline towards a targeted launch in 2023.

Overall, Fitch now conservatively projects a USD100 million EBITDA
reduction by 2023 at the company's prescription business compared
with 2019's USD141 million level and no profit contribution from
ProActiv.

Stable EBITDA; Growth Resumes in 2021: Fitch assumes that thanks to
cost rationalisation, the pandemic will only mildly affect the
company's EBITDA, leading to approximately USD520 million EBITDA in
2020 (2019: USD527 million). Thereafter, Fitch assumes growth
towards USD600 million in 2021 and towards USD690 million in 2023,
mainly thanks to continued growth of the aesthetics business.

Volatile, Improving Cash Flow: Fitch projects that FCF will be
negative by approximately USD150 million in 2020, due to working
capital absorption compounding one-off P&L costs for cost
rationalisation and not sufficiently compensated by delayed capex.
While Fitch projects positive FCF of around USD50 million in 2021,
despite resumed capex, the anticipated revenue decline in the
prescription division in 2022 due to the loss of exclusivity should
lead to another large working capital outflow and negative FCF in
2022.

Excluding these one-off events, Fitch expects the company to
generate sustainable annual FCF of around USD70 million-USD80
million, due to healthy EBITDA margin and overall modest capex. FCF
has scope to significantly increase in 2023 if the prescription
business pipeline is successful.

High Leverage, Delayed Trajectory: As a result of the lockdowns and
weakening consumer spending, sales of aesthetics products will not
follow the anticipated growth trajectory. Moreover, generics
competition is likely to affect prescription products, overall
delaying FFO growth during the rating horizon and cash
accumulation. Therefore, Fitch projects that FFO leverage may only
reduce to 9.0x in 2022 and not to the previously expected level
below 8.5x consistent with the rating. If deleveraging is
materially de-railed this will result in diminished financial
flexibility and a downgrade.

Diversified Skincare Portfolio: Galderma's operations span from
high-priced aesthetic treatments in a growth market where the
company has a quasi-duopolistic position, to consumer products sold
both at retailers and directly to consumers, through prescription
pharmaceutical products. This means the company is less vulnerable
to customer concentration and pricing pressure than other consumer
goods companies. Fitch views the strength of its aesthetics
business and of the Cetaphil brand as credit-positives mitigating
weaknesses and execution risks in other segments. Aesthetics has a
strong track record of innovation and demand-led growth.

The group's credit profile also benefits from moderate geographic
diversification beyond the US (50% of its sales), in the EU and
some limited presence in some emerging markets, namely Brazil,
China and the Gulf countries.

Growing Profitability: Thanks to the strong profitability of the
growing aesthetics business and continued efforts to rationalise
the company's cost base, Fitch expects EBITDA margin growth toward
20% in 2023 from 2019's 17.7% level. Management successfully turned
profitability around prior to its buyout, including the
restructuring of the R&D function and factory closures, leading to
a reduction of the cost base by CHF160 million between 2016 and
2018.

The group's profit margins are aligned with other fast-moving
consumer goods companies, albeit lower than that of industry
leading players in personal care due to comparatively lower scale
and the dilutive effect of loss-making Pro-Activ.

DERIVATION SUMMARY

Fitch rates Galderma according to its global rating navigator
framework for consumer companies. Under this framework, Fitch
recognises that its operations are driven by marketing investments,
a well-established and diversified distribution network and
moderate importance of R&D-led innovation capability. The
prescription business benefits the consolidated business profile by
offering diversification by product and geography, with good
exposure to mature markets but carries execution risks.

Compared with global consumer peers, such as Johnson & Johnson and
Unilever NV/PLC (A/Stable), Galderma's business risk profile is
influenced by the company's smaller scale and diversification. This
is also the case when benchmarking Galderma against its most
relevant pharma peer, Allergan plc (WD). Nevertheless, high
financial leverage is the key constraint on the rating, compared
with international global peers across both consumer and pharma
sectors.

Relative to personal care peer Avon Products (B+/Stable), Galderma
has lower revenues, notably lower EBITDA margins as well as
significantly higher leverage but a more robust business model.
Another comparable peer in the broad food and consumer sectors
includes Sigma HoldCo (B+/Negative) displaying lower leverage (8.3x
projected in 2020) and stronger FCF generation capability.

Compared with Oriflame, which in April 2020 Fitch downgraded to
'B'/Stable due to the impact of COVID-19 on its de-leveraging
trajectory but has lower leverage, Fitch sees a shorter pandemic
effect on Galderma's sales, but Fitch expects Galderma to continue
to suffer from lower consumption of some of its products due to
lower socialisation occasions and from higher emerging markets
exposure. However, Galderma's Negative Outlook reflects a higher
downgrade risk in connection to the delays in deleveraging.

Compared with pharma company Nidda Bondco GmbH (Stada; B/Stable), a
producer of generic pharmaceuticals with current high leverage
(around 8.5x), Fitch views Stada's business model as anchored in
the 'BB' category, offsetting aggressive levels of leverage.
Additionally, unlike Galderma, Stada has stronger deleveraging
capacity through organic means with its FCF margin forecasted to
trend above 5% over the next four years.

KEY ASSUMPTIONS

  - Low single-digit revenue contraction in FY20, mainly driven by
COVID-19-related lockdown in 1H20 affecting the aesthetics
business, followed by a high-single digit recovery bringing FY21
consolidated revenues to a level 5% higher than in 2019;

  - Continued strong execution on the synergy programme in tandem
with flexibility in the cost base, namely around marketing spend,
maintaining EBITDA margins above 17% in 2020 (2019: 17.7%); EBITDA
margin improving towards 20% in 2021 indicative of higher
revenues;

  - Discretionary capex tapered culminating in a USD70 million in
2020, rising toward USD180 million in 2021 to compensate for 2020's
lower spend and incorporating annual in-licensing investments of
USD50 million;

  - Working capital cash outflow of about USD100 million in each of
2020 and 2022 reflecting the impact of COVID-19 and key
prescription products coming off patent, respectively; small
working capital inflow in 2021;

  - No M&A and no dividends envisaged.

Key Recovery Assumptions:

  - The recovery analysis assumes that Galderma would be
restructured as a going concern rather than liquidated in an event
of default.

  - Galderma's post-reorganisation, going-concern EBITDA reflects
Fitch's view of a sustainable EBITDA that is 15% below
Fitch-defined EBITDA for 2019 of USD528 million. In this scenario,
the stress on EBITDA would most likely result from operational
issues perpetuated by lower growth and weaker margin expansion than
currently envisaged in the aesthetics and consumer divisions.

  - Fitch applies a distressed enterprise value (EV)/EBITDA
multiple of 6.0x to calculate a going-concern EV reflecting
Galderma's large scale and business diversity. This is below 7.0x
used for Stada, given Galderma's operating challenges in two of the
company's business segments, and Stada's high margin business.

Based on the payment waterfall the revolving credit facility (RCF)
of USD500 million ranks pari-passu with the senior secured term
loans (US dollar and euro term loans B for USD3,617 million and
USD1,387 million equivalents, respectively). Therefore, after
deducting 10% for administrative claims, its waterfall analysis
output percentage of 59% generates a ranked recovery for the senior
secured loans in the 'RR3' band, leading to a 'B+' instrument
rating, one notch above the IDR.

RATING SENSITIVITIES

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

Positive rating action is not envisaged over the next three years
given the significant financial risks post-carve out constraining
the IDR at 'B'. However positive rating action could be considered
over time based on:

  - Delivery of management business plan with each of the
aesthetics and consumer portfolios delivering continued EBITDA
growth over 2020-2022 and the expected dip in prescriptions margin
being limited to 2022;

  - FFO leverage trending towards 7.0x; and

  - FFO interest coverage above 2.0x.

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

  - Visibility that FFO leverage will drop towards 8.5x by 2022 and
below 8.5x thereafter

  - Demonstration that execution risks in the consumer and
prescription business have abated and the company has completed its
separation and cost savings plan, supporting the generation of a
sustained FCF margin in the region of 2% of sales by 2021-2022.

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

  - Failure to deleverage below 8.5x on FFO leverage basis by
2022;

  - FFO interest coverage weakening below 1.5x for two consecutive
years;

  - Adjusted consolidated EBITDA margin failing to reach 19.5% by
2022; and

  - FCF margin sustainably below 2% beyond 2021, (excluding the
envisaged one-off working capital adjustment in 2022).

LIQUIDITY AND DEBT STRUCTURE

Satisfactory Liquidity: A large portion of the RCF totalling USD325
million was drawn down across 1Q20 as a precaution against the
prevailing uncertainties presented by COVID-19. Based on its
forecasts the RCF will be materially paid back by the end of the
year, underpinning its satisfactory assessment of liquidity. Some
positive FCF envisaged in FY21 should allow the RCF to remain
largely undrawn in the near term, while the group does not have any
meaningful debt maturities between 2020 and 2023.

ESG CONSIDERATIONS

Sunshine Luxembourg VII SARL has an ESG Relevance Score of 4[+] for
Exposure to Social Impacts as around 50% of its EBITDA is derived
from sales of products that consumers increasingly value for their
well-being and the company is one of few providers. This has a
positive impact on the credit profile and is relevant to the
ratings in conjunction with other factors.

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.



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

BRASKEM NETHERLANDS: S&P Assigns B+ Issue Rating to New Sub. Loans
------------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating to Braskem
Netherlands Finance's proposed subordinated notes benchmark sized.
Braskem Netherlands Finance is a wholly owned subsidiary of Braskem
S.A. (BB+/Stable/--), which will unconditionally guarantee these
notes.

Braskem views the issuance as a strategic tool to reduce leverage.
S&P understands that the company intends to maintain or replace
these securities as a long-term form of capital on its balance
sheet. The company will use proceeds to repay existing corporate
debt and for general corporate purposes.

S&P categorizes the proposed securities as having intermediate
equity content, because they are subordinated in liquidation to
Braskem's senior debt obligations, can't be called for at least 5.5
years, and are not subject to features that could discourage or
materially delay deferral.

S&P derives its 'B+' rating on the proposed notes by notching down
from our 'BB+' issuer credit rating. The three-notch difference
reflects its deduction of:

-- Two notches to reflect subordination to the company' senior
debt obligations. S&P considers two notches because its issuer
credit rating on Braskem is 'BB+' (speculative-grade); and

-- One notch for loss absorption or cash conservation features.
Braskem's coupon deferral is discretionary and not limited in
time.

S&P said, "Given our view of intermediate equity content, we will
allocate 50% of the related payments on the security as a fixed
charge and 50% as equivalent to a common dividend. The 50%
treatment of principal and accrued interest will also apply to our
adjustment of debt. As a result of these adjustments, we would see
a reduction of about 0.3x in company's leverage, but still in line
with our expectations of 3.5x-4.5x by the end of 2020 and
3.0x–4.0x by the end of 2021."

FEATURES OF THE HYBRID INSTRUMENT

The proposed security and coupons are intended to constitute the
issuer's direct, unsecured, and subordinated obligations, ranking
senior only to all existing and future classes of equity capital of
Braskem. The notes mature in 2060, but can be called at any time
for a tax deductibility or rating methodology event as defined in
the instrument's documentation.

The first interest reset date will be at least 5.5 years from the
issuance date. Braskem can redeem the security for cash up to 90
days before the first interest reset date, and on every coupon
payment date thereafter.

Coupon deferral doesn't constitute an event of default, and there
are no cross defaults with the senior debt instruments. In
addition, the hybrid's terms allow Braskem to choose to defer
interest payment on the proposed securities--it has no obligation
to pay accrued interest on an interest payment date. However, if
Braskem declares or pays an equity dividend or interest on equally
ranking securities, or if it redeems or repurchases shares or
equally ranking securities, it's required to settle any outstanding
deferred interest payment and the interest accrued thereafter in
cash.

S&P said, "We understand that the interest to be paid on the
proposed securities will bear interest equal to the relevant
five-year U.S. treasury plus the initial spread five years after
the first reset date, by a further .25% 10.5 years from issue date
and by a further 1% 20.5 OR 25.5 years after the issue date. We
consider the cumulative increase in interest to be material under
our criteria, providing Braskem with an incentive to redeem the
instrument. Given that Braskem has not committed to replace the
instrument after the each increase, we are unlikely to treat the
instrument as having intermediate equity content once its economic
maturity falls below 20 years, which would occur after its first
reset date."

Until its first reset date, we expect to classify the instrument as
having intermediate equity content.

  Ratings List

  New Rating

  Braskem Netherlands Finance
   Subordinated          B+


KANTOOR FINANCE 2018: DBRS Confirms BB(low) Rating on Cl. E Notes
-----------------------------------------------------------------
DBRS Ratings GmbH confirmed the ratings on all classes of the
Commercial Mortgage-Backed Floating Rate Notes Due May 2028 issued
by Kantoor Finance 2018 DAC (the Issuer) as follows:

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

DBRS Morningstar maintains the Stable trends.

The rating confirmations follow an improvement in loan performance
in spite of the current Coronavirus Disease (COVID-19) outbreak,
which has had little impact on rent collections based on the latest
servicer report for the May 2020 interest payment day (IPD).

The transaction comprises two Dutch senior commercial real estate
loans - PPF and Iron - which have both deleveraged since issuance.
As both loans entered their second year, a 1% amortization on the
initial loan amount per year is due. As such, the PPF loan balance
has amortized to EUR 182.7 million from EUR 185.0 million at
issuance. In addition to the scheduled amortization, the Iron loan
balance reduced further after the sale of the Wegalaan asset, to
EUR 58.0 million from EUR 62.9 million. The Wegalaan asset was
originally anchored by Chubb Insurance Company of Europe S.A.,
which was served a notice to vacate the premises shortly before
issuance. Based on the Iron loan facility agreement, a partial cash
trap of a maximum EUR 400,000 would take effect following Chubb's
departure. However, since the asset has been sold, the partial cash
trap is forfeited. DBRS Morningstar's updated net cash flow (NCF)
assumption to reflect the property disposal amounts to EUR 4.5
million, which translates to a DBRS Morningstar stressed value of
EUR 64.6 million, or a 50.0% haircut on the reported market value
of EUR 129.3 million as of May 2020 IPD including capital
expenditures.

In addition to the new valuation of the Iron loan, which DBRS
Morningstar commented on in its last review, a new valuation
carried out for the PPF loan in August 2019 concluded a EUR 395.8
million market value for the portfolio, representing a 31% value
increase since February 2018. The main contributors to the increase
were the lease-up of vacant spaces in Hofplein 19 and 20 and yield
compression in the Dutch market. DBRS Morningstar had already made
provisions in its issuance analysis for the lease-up of Hofplein 19
and therefore did not adjust its cash flow assumptions. Also, DBRS
Morningstar views the yield compression trend is yet to sustain and
has hence maintained its value assumption at EUR 224.2 million,
which is 43.4% lower than the new valuation.

As commented in its "European CMBS Transactions' Risk Exposure to
Coronavirus (COVID-19) Effect" commentary, DBRS Morningstar thinks
the short-term impact of the coronavirus on office properties is
relatively more limited. Indeed, on the May 2020 IPD, the Iron loan
borrower reported a 94.7% collection rate with less than 1% rent
reduction request. The PPF loan borrower did not report the
collection rate but is not anticipating any material negative
impact on the net cash flow. As the current haircut on the loans
largely exceed DBRS Morningstar's coronavirus-linked office sector
medium term value decline assumption, which is based on DBRS
Morningstar's moderate scenario, DBRS Morningstar did not make any
coronavirus-related value adjustment in its analysis.

Both loans have a fixed loan term of five years. The Iron borrowers
will need to repay by November 15, 2022 and the PPF borrower will
need to repay by May 15, 2023. The CMBS note maturity date is May
22, 2028.

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

Notes: All figures are in Euros unless otherwise noted.

PLT VII FINANCE: Fitch Corrects Press Release dated July 6, 2020
----------------------------------------------------------------
Fitch Ratings replaced a ratings release published on July 6, 2020
to correct the name of the obligor for the bonds.

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

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

KEY RATING DRIVERS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DERIVATION SUMMARY

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

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

KEY ASSUMPTIONS

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

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

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

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

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

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

KEY RECOVERY RATING ASSUMPTIONS

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

  - Fitch has assumed a 10% administrative claim.

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

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

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

RATING SENSITIVITIES

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

  - FFO gross leverage sustainably below 5x

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

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

  - FFO gross leverage above 6x on a sustained basis

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

LIQUIDITY AND DEBT STRUCTURE

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

ESG Commentary

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

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
===========

RN BANK: S&P Affirms BB+/B Issuer Credit Ratings, Outlook Stable
----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+/B' long-term and short-term
issuer credit ratings on RN Bank JSC. The outlook is stable.

S&P said, "The ratings affirmation reflects our expectation that RN
Bank will be able to maintain a sound financial profile in the next
12 months despite the current market turmoil. Although we see
pressure on the creditworthiness of one of RN Bank's shareholders,
Nissan Motor Co., we expect its other shareholder, RCI Banque, a
financial arm of Renault S.A., will be able and willing to support
RN Bank in case of need at a similar level as previously. While we
do not expect RCI to be immune to the impacts of COVID-19, we note
that it is entering this uncertain environment on a strong footing.
It has solid earning capacity, a low cost-to-income ratio at about
30%, and strong capitalization, with an expected S&P Global Ratings
risk-adjusted capital (RAC) ratio of above 11% in the next two
years.

"We also consider that RN Bank will remain a strategically
important subsidiary of both RCI Banque and Nissan Motor Co. as it
performs important functions of financing car sales and maintaining
client loyalty of both car producers in Russia. We expect that the
strategy of Renault-Nissan-Mitsubishi Alliance in Russia won't
change materially, despite global market pressures resulting from
the COVID-19 pandemic. Renault and Nissan have invested significant
resources in production plants in Russia and the Russian market is
consistently among the top-5 markets by car sales for the Alliance.
We do not expect support to come from the third shareholder,
UniCredit, as we believe it considers its holding in RN Bank as a
financial investment.

"We expect RN Bank's loan portfolio will decrease by about 10% in
2020, less than the reduction in car sales in Russia, which we
project at about 15%-20% this year. This is because we forecast
that the bank will increase its penetration into the sales of auto
manufacturer Avtovaz, both in the retail and wholesale segments. We
also expect that the subsidies provided by the Russian government
to Avtovaz's customers and lower-priced car models produced by
Renault should support RN Bank's business volumes. RN Bank's market
share in the overall Russian banking sector is still relatively
small, with total assets of Russian ruble (RUB)106 billion, it
ranked No. 58 among approximately 400 Russian banks on June 1,
2020. At the same time, we note that the bank's market share in the
Russian auto loan segment was about 9% on the same date.

"We expect RN Bank will keep to its strict and prudent procedures
in terms of borrower selection, which have so far allowed it to
maintain good loan portfolio quality. This should allow the bank to
maintain problem loans, classified as Stage 3 under International
Financial Reporting Standard (IFRS) 9, below 2.5% of total loans in
the next two years (2.3% on July 1, 2020). This is significantly
lower than our expectation for the Russian banking sector average
that we expect to increase to about 15% at the end of 2020. We also
see as a strength RN Bank's good operating efficiency compared with
local peers' with cost-to-income ratio of 24% (the average for the
top-10 Russian banks was 39% last year).

"We expect that RN Bank will be able to maintain its strong capital
and earnings in the next two years. We forecast the bank's RAC
ratio will be 14.2%-14.4% during this period, assuming a loan
portfolio drop by about 10% in 2020 and annual growth of 10%-15% in
the next two years, credit costs of 1.3%-2.0% of total loans and no
dividend payouts.

"We believe that RN Bank's funding profile will continue
benefitting from continuous support from shareholders. We also
expect that the bank will keep its access to ample liquidity lines
from the parents. The bank's liquid assets accounted for about 13%
of total assets on July 1, 2020.

"The stable outlook reflects our view that RN Bank will maintain a
robust financial profile in the next 12 months, despite the
challenging operating environment caused by COVID-19 measures in
Russia and the rest of the world. We believe the bank will continue
benefitting from ongoing financial and management support from its
shareholders, in particular, RCI Banque. We also expect
capitalization will remain strong in the next two years, supported
by sound earnings, a modest risk appetite, and good loan portfolio
quality, with credit costs not exceeding 2% of total loans, which
is lower than the expected average for the Russian banking sector.

"We consider a positive rating action as unlikely in the next 12
months, given the challenging operating environment for banks in
Russia and our ratings and outlooks on shareholders RCI Banque
(BBB/Negative/A-2) and Nissan Motor Co. (BBB-/Negative/A-2).

"We could take a negative rating action on RN Bank if we saw a
weaker ability of RCI Banque to provide support. We could also take
a negative rating action if the strategy of Renault or Nissan for
the Russian market changed in such a way that we considered the
importance of RN Bank for them had weakened and the prospects for
its support had diminished. Among other scenarios this might be
driven by further deterioration in Nissan's creditworthiness.

"We would also consider lowering our ratings on RN Bank if its
stand-alone credit profile deteriorated due to declining capital,
with our RAC ratio falling below 10%, or if we observed material
asset-quality deterioration related to weakening creditworthiness
of auto dealers or retail borrowers. In addition, we could lower
the ratings if we considered that, contrary to our current
expectations, RN Bank's funding profile had deteriorated or its
liquidity management had weakened substantially."




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

ABENGOA: In Advanced Talks to Secure EUR250MM Liquidity Line
------------------------------------------------------------
Jesus Aguado at Reuters reports that troubled Spanish renewables
firm Abengoa said on July 14 it was in advanced talks to secure a
EUR250 million (US$285 million) state-backed liquidity line and
restructure part of its debt, but did not expect a final decision
until July 27.

The announcement means the Seville-based engineering group would
miss the July 14 self-imposed deadline to reach an agreement with
lenders that would allow it to stay afloat, Reuters states.

"The Board of Directors considers that, in the current
circumstances, it must exhaust all available alternatives for the
continuity of the group's business," Reuters quotes Abengoa as
saying in a statement.

Earlier on July 14, Spain's stock market regulator suspended
trading in Abengoa shares ahead of the deadline, Reuter recounts.

Abengoa, as cited by Reuters, said the advances included an
agreement with suppliers, amendment of certain debt terms and the
availability of guarantees of up to EUR300 million.

Still, it warned that the lack of liquidity and guarantee lines was
"severely affecting the business, making its viability very
difficult if the transaction is not closed in the short term",
Reuters notes.

A source with knowledge of the negotiations had previously told
Reuters that a group of Spanish and foreign banks, including
Santander and Bankia, were considering providing a lifeline of
around EUR180 million.

The source said the other EUR70 million would come from the Spanish
state agency ICO and the regional government in Andalusia, Reuters
relates.


GRUPO AVINTIA: DBRS Confirms B(high) Issuer Rating
--------------------------------------------------
DBRS Ratings GmbH confirmed the Issuer Rating of Grupo Avintia,
S.L. (Grupo Avintia or the Group) at B (high). Grupo Avintia is the
parent company of Avintia Proyectos y Construcciones, S.L. (Avintia
PyC or the Company), the Group's key operating subsidiary and
issuer of the Senior Secured Notes (the Notes). Grupo Avintia fully
and unconditionally guarantees any present and future obligations
of Avintia PyC, including the Notes. The Group and its major
subsidiaries have provided intercompany guarantees in line with the
requirements set out under the "DBRS Morningstar Criteria:
Guarantees and Other Forms of Support".

Concurrently, DBRS Morningstar also confirmed the rating of the
outstanding EUR 50 million 4.0% Senior Secured Notes now due on
March 1, 2021 at BB (low). Based on a Recovery Rating of RR3, which
reflects a substantial anticipated recovery of between 60% and 80%
of the current outstanding balance of the Notes, the Notes are
rated one notch higher than the Issuer Rating. In addition, the
Notes are fully and unconditionally guaranteed by deeds of
commitment to grant second-ranking mortgages on three real estate
properties held by related parties. DBRS Morningstar expects that
the amount of debt secured by the first mortgages will not be
increased.

All trends are Stable. The Stable trend status takes into account
that, despite the significant headwinds and uncertainties facing
Grupo Avintia's construction operations as a result of the
Coronavirus Disease (COVID-19) pandemic, its property development
and real estate businesses will sustain the Group's key financial
metrics at a level consistent with the current rating category.

KEY RATING CONSIDERATIONS

In 2019, as a result of fixed-price contracts, increasing labor and
subcontracting costs, project delays, and low barriers to entry in
the sector, Grupo Avintia continued to report weaker than
previously expected key credit metrics, although these were still
consistent with the current rating category. In H1 2020, against
the backdrop of the coronavirus pandemic, the Group has taken
measures to strengthen its liquidity position and balance sheet,
including a six-month extension of the maturity of the Notes to 1
March 2021 from 1 September 2020 and additional EUR 40 million of
senior unsecured debt guaranteed at 70% by the "Insituto de Credito
Oficial" (as part of a package of Government measures in response
to the coronavirus crisis).

As the coronavirus pandemic spreads and its consequences unfold, it
is hard to anticipate the ultimate impact on the variables that
drive Grupo Avintia's credit quality. Because of the suspension and
slowdown in the majority of the constructions works in Spain, the
Group's construction revenues and EBITDA are expected to contract
materially in 2020. However, the Group's overall results will be
supported by the revenue and EBITDA generated by the sale of
various residential complexes (on average, 90% presold and already
in an advanced 80%+ construction status), and by the completion of
the sale of the residential building in Las Rozas (part of the
security package of the Notes).

RATING DRIVERS

Given the current circumstances, DBRS Morningstar considers a
rating upgrade to be very unlikely. However, a trend change to
Negative or a rating downgrade could be considered if the Group's
financial risk profile materially weakens as a result of a (1) more
marked deterioration in the Group's construction operations, (2)
unexpected losses and delays in the recognition of earnings and
cash flows from the Group's property development business, and (3)
the inability to timely divest real estate assets to deleverage and
sustain the Group's overall creditworthiness.

RATING RATIONALE

Grupo Avintia is a partially vertically integrated construction
group with activities primarily in the construction and property
development businesses. The Group's creditworthiness is supported
by (1) its established project control processes; (2) its strategy
focused on known markets and solid domestic market position; (3)
its modest single contract exposure; and (4) the Notes being fully
and unconditionally guaranteed by second-ranking mortgages on real
estate properties. The Group's creditworthiness is constrained by
its (1) high industry risk characterized by cyclicality, intense
competition, and volatility heightened by the current coronavirus
pandemic; (2) aggressive growth strategy, increasing project
complexity and limited internal capability; (3) relatively small
scale operations with geographic and product concentration; and (4)
mostly fixed-price contracts and weaker-than-previously-forecast
key financial metrics.

Notes: All figures are in Euros unless otherwise noted.

RMBS SANTANDER 6: DBRS Assigns Prov. CCC Rating on Class B Notes
----------------------------------------------------------------
DBRS Ratings GmbH assigned provisional ratings of A (high) (sf) and
CCC (sf) to the Class A and Class B notes, respectively, to be
issued by FT RMBS Santander 6 (the Issuer), a securitization fund
incorporated under Spanish securitization law.

The rating on the Class A notes addresses the timely payment of
interest and the ultimate payment of principal on or before the
legal final maturity date in February 2063, while the rating on the
Class B notes addresses the ultimate payment of interest and
principal on or before the legal final maturity date.

The notes to be issued will fund the purchase of a portfolio of
first-lien residential mortgage loans originated by Santander S.A.
(49.7%), Banco Popular Español (44.7%), and Banesto (5.6%). The
mortgage loans are secured over residential properties located in
Spain. Santander de Titulizacion S.A. (the Management Company)
manages the transaction, with Santander S.A. acting as the servicer
of the portfolio. The transaction has no backup servicer.

DBRS Morningstar was provided with the provisional portfolio
amounting to EUR 4.6 million as of June 19, 2020, which consisted
of 32,875 loans extended to 31,188 borrowers. The weighted-average
(WA) current loan-to-value (LTV) ratio stands at 96.0% whereas the
WA current indexed LTV calculated by DBRS Morningstar is 92.9% with
a WA seasoning of 5.3 years. Almost all the loans included in the
portfolio (96.8%) are floating-rate loans mainly linked to the
12-month Euribor, and the remaining 3.2% of the portfolio are
fixed-rate loans. The notes pay a floating rate of interest linked
to three-month Euribor. Of the loans in the provisional portfolio,
3.9% were granted a Government moratorium, with interest and
principal payments suspended for a period of up to three months. A
further 11.9% of the loans were granted a Sector moratorium, where
Spanish financial institutions agreed to grant principal payment
holidays of up to 12 months. The current WA interest rate of the
portfolio is 0.94% and the WA margin of the floating-rate loans is
1.1%. The repayment type for all the loans in the portfolio is
French amortization.

The mortgage loan portfolio is distributed amongst the Spanish
regions of Madrid (26.9% by current balance), Andalusia (17.9%),
and Catalonia (13.0%). The majority of the mortgage loans in the
asset portfolio (86.4%) were granted for the purchase of the main
residence of the borrower, with a further 7.9% granted for the
purchase of second/holiday homes. The remaining 5.7% of the loans
were granted for renovation or other purposes, and all loans are
backed by a residential property. Of the loans in the portfolio,
14.4% were granted to self-employed borrowers, and a further 14.2%
were granted to employees of the Seller. At origination, no
borrower was unemployed. The provisional pool includes 9.4% of the
loans granted to foreign borrowers resident in Spain. As of 19 June
2020, no loans in the portfolio were in arrears for more than three
months.

The Servicer is allowed to grant loan renegotiations for margin
compressions, interest rate type switch, and extension of maturity,
subject to certain limits. DBRS Morningstar factored in these loan
modifications in its cash flow analysis.

The Class A notes benefit from the EUR 720.0 million (10.5%)
subordination of the Class B notes plus a EUR 225.0 million (5.0%
of the outstanding balance of the Class A and Class B notes)
reserve fund, which is available to cover senior expenses as well
as interest and principal payments of the rated notes until they
are paid in full. The reserve fund will be funded at closing via a
subordinated loan and will start amortizing after three years since
closing, up to a floor of EUR 112.5 million. The reserve fund will
not amortize if certain performance triggers are breached, if it
was used on any payment date and is under its target level, or
until it reaches 10% of the outstanding balance of the Class A and
Class B notes. The Class A notes will benefit from full sequential
amortization, whereas principal on the Class B notes will not be
paid until the Class A notes have been redeemed in full.
Additionally, the Class A principal will be senior to the Class B
interest payments in the priority of payments at all times.

The transaction's account bank agreement and respective replacement
trigger require Santander, acting as the transaction account bank,
to find (1) a replacement account bank within 60 days or (2) an
account bank guarantor upon loss of the applicable account bank
rating. The DBRS Morningstar Critical Obligations Rating (COR) of
Santander is AA (low), while DBRS Morningstar's Long-Term Senior
Debt and Issuer rating on Santander is at A (high) (as of the date
of this press release). The account bank applicable rating is the
higher of one notch below the Santander COR and Santander's
Long-Term Senior Debt rating.

DBRS Morningstar based its ratings on the following analytical
considerations:

-- The transaction's capital structure as well as form and
sufficiency of available credit enhancement to support DBRS
Morningstar's projected cumulative losses under various stressed
scenarios.

-- The credit quality of the portfolio and DBRS Morningstar's
qualitative assessment of Santander, Banco Popular, and Banesto's
capabilities with regard to originations, underwriting, and
servicing.

-- DBRS Morningstar's estimated stress-level probability of
default (PD), loss given default (LGD), and expected loss levels on
the mortgage portfolio, which were used as inputs into the cash
flow engine. The mortgage portfolio was analyzed in accordance with
DBRS Morningstar's "European RMBS Insight Methodology" and the
"European RMBS Insight: Spanish Addendum".

-- The transaction's ability to withstand stressed cash flow
assumptions and repays the noteholders according to the terms and
conditions of the notes and the transaction documents. The
transaction cash flows were analyzed using Intex DealMaker. DBRS
Morningstar considered additional sensitivity scenarios of 0%
conditional repayment rate stress.

-- The transaction parties' financial strength to fulfill their
respective roles.

-- The transaction's legal structure and its consistency with DBRS
Morningstar's "Legal Criteria for European Structured Finance
Transactions" methodology as well as the presence of the
appropriate legal opinions that address the assignment of the
assets to the Issuer.

-- DBRS Morningstar's sovereign rating on the Kingdom of Spain of
"A" with a Stable trend as of the date of this press release.

The Coronavirus Disease (COVID-19) and the resulting isolation
measures have caused an economic contraction, leading to sharp
increases in unemployment rates and income reductions for many
borrowers. DBRS Morningstar anticipates that payment holidays and
delinquencies may arise in the coming months for many RMBS, some
meaningfully. The ratings are based on additional analysis and
adjustments to expected performance as a result of the global
efforts to contain the spread of the coronavirus. For this
transaction DBRS Morningstar assumed loans previously restructured
as being in arrears and a moderate decline in residential property
prices.

Notes: All figures are in Euros unless otherwise noted.



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

ABERDEEN MARKET: Placed Into Creditors Voluntary Liquidation
------------------------------------------------------------
BBC News reports that the operator of Aberdeen Market, has been
placed into liquidation.

The building in Aberdeen city centre has been closed since the
beginning of lockdown, BBC discloses.

According to BBC, administrator Cowgills has confirmed in a
statement that Aberdeen Market Village was placed into Creditors
Voluntary Liquidation on June 11, and has now ceased trading.

In April, plans were approved to demolish the premises, making way
for a new office, retail and leisure space, BBC recounts.

Developer Patrizia hopes to inject "new vibrancy" into the area
with the redevelopment plans, BBC notes.



BISTROT PIERRE: Bought Out of Administration Via Pre-Pack Deal
--------------------------------------------------------------
Business Sale reports that restaurant chain Bistrot Pierre has been
acquired in a pre-pack administration deal which will see six of
its locations close.

According to Business Sale, 19 of Bistrot Pierre's restaurants have
been acquired by a new firm, Bistrot Pierre 1994, said to be backed
by the chain's chairman, John Derkach, and chief executive Nick
White.

Will Wright and Steve Absolom of KPMG were appointed joint
administrators for the company on July 14, immediately concluding
the sale of the business and certain assets to the connected new
company, Business Sale relates.

While the deal will see 682 jobs preserved, the six site closures
will lead to 123 staff being made redundant, Business Sale notes.

"COVID-19 and the prolonged lockdown period has presented large
swathes of the casual dining sector with significant funding
challenges, and Bistrot Pierre has been far from immune," Business
Sale quotes Mr. Absolom as saying. "Despite exploring all
alternative options, including relief schemes like the Coronavirus
Business Interruption Loan, the directors took the difficult
decision to file for the appointment of administrators."


CENTURY CASINO: Goes Into Liquidation Following Insolvency
----------------------------------------------------------
Richard Mills at SomersetLive reports that Century Casino Bath
Limited has gone into liquidation.

The casino, on Saw Close, has been shut since the end of March due
to the coronavirus outbreak, SomersetLive discloses.

According to SomersetLive, documents state that Irvin Cohen and
Neil Frank Vinnicombe--neil.vinnicombe@btguk.com--of Begbies
Traynor have been appointed joint liquidators of Century Casino
Bath Limited for a "voluntary winding-up"--the process of
dissolving a company.

As of May 6, it also states this is an "insolvency case",
SomersetLive notes.

Companies House states that a confirmation statement on Century
Casino Bath Limited's accounts is overdue by nearly three months,
SomersetLive relates.



COLD FINANCE: DBRS Confirms BB(High) Rating on Class E Notes
------------------------------------------------------------
DBRS Ratings Limited confirmed its ratings on the following classes
of Commercial Mortgage-Backed Floating Rate Notes due August 2029
issued by Cold Finance PLC (the Issuer):

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

DBRS Morningstar maintains the Stable trends.

Cold Finance PLC is the securitization of a GBP 282.8 million
floating-rate senior commercial real estate loan (the senior loan)
advanced by the Issuer to four borrowers: Wisbech Propco Ltd, Real
Estate Gloucester Limited, Harley International Properties Limited,
and Yearsley Group Limited (Yearsley Group). All four borrowers are
ultimately owned by Lineage Logistics Holdings LLC (Lineage or the
Sponsor). The loan refinanced an initial bridge facility provided
by Goldman Sachs International for the acquisition of Yearsley
Group, a large cold storage logistics service provider, and further
refinanced two existing cold storage assets in the UK. Loan
proceeds were also used for general operational purposes. To
maintain compliance with applicable regulatory requirements, the
Sponsor holds a 5.0% interest in the transaction through the
issuance of nonrated Class R notes.

The senior loan – 68.6% loan-to-value (LTV) – is backed by a
portfolio of 14 temperature-controlled and ambient storage
industrial properties strategically located near its customers'
distribution centers as well as their target markets throughout the
UK, including one property in Scotland. The two largest assets by
market value are located in Gloucester and Wisbech,
Cambridgeshire.

Since issuance, the overall performance of the portfolio has been
stable. As of May 2020, 77% of the portfolio's capacity in terms of
pallet space was occupied and generated a quarterly EBITDA of GBP
8.7 million and a trailing 12-month EBITDA of GBP 35.4 million,
which is in line with the budget. The debt yield (DY) of 11% is
comfortably above the cash trap and default covenants of 9.6% and
8.6%, respectively.

About 61% of the portfolio's storage space is allocated to retail
supermarkets and operators who supply to supermarkets. DBRS
Morningstar understands that this segment of the business is
performing strongly amidst the Coronavirus Disease (COVID-19)
pandemic. The remaining occupied storage space is utilized by
restaurants, which are also still showing a solid performance.
However, as restaurants are generally closed, there is only a small
turnover of inventory and DBRS Morningstar believes there could
potentially be a build-up of arrears from this area of the
business. In DBRS Morningstar's opinion, the transaction is still
able to generate sufficient cash flow to comfortably meet its
obligations under the senior loan term.

The loan structure includes financial default covenants such that
the borrower must ensure that the LTV ratio is less than 83.6% and
that the DY on each interest payment date must be above 8.6%. Other
standard events of default include: (1) any missing payment,
including failure to repay the loan at the maturity date; (2)
borrower insolvency; and (3) a loan default arising as a result of
any creditor's process or cross-default.

The transaction benefits from a liquidity support facility of GBP
13 million provided by Credit Agricole Corporate and Investment
Bank. The liquidity facility may be used to cover shortfalls on the
payment of certain amounts of interest due by the Issuer to the
holders of the Class A to Class D notes and no more than 20% of the
outstanding Class E notes. According to DBRS Morningstar's
analysis, the liquidity reserve amount will be equal to
approximately 12 months on the covered notes, based on the interest
rate cap strike rate of 3.0% per year, and approximately nine
months of coverage, based on the Libor cap after loan maturity of
5.0% per year.

The legal final maturity of the notes is expected to be in August
2029, five years after the maturity of the fully extended loan
term. The first loan maturity date is in August 2020, but
considering two one-yearly extension options, which are conditional
upon the loan being fully hedged and with no continuing loan event
of default, the latest expected loan maturity date is August 15,
2024. Given the security structure and jurisdiction of the
underlying loan, DBRS Morningstar believes that this provides
sufficient time to enforce on the loan collateral, if necessary,
and repay the bondholders.

COVID-19 CONSIDERATIONS

The Coronavirus Disease (COVID-19) and the resulting isolation
measures have caused an economic contraction, leading to sharp
increases in unemployment rates and income reductions for many
tenants and borrowers. DBRS Morningstar anticipates that vacancy
rate increases and cash flow reductions may arise for many CMBS
borrowers, some meaningfully. In addition, commercial real estate
values will be negatively affected, at least in the short-term,
impacting refinancing prospects for maturing loans and expected
recoveries for defaulted loans. The ratings are based on additional
analysis as a result of the global efforts to contain the spread of
the coronavirus. For this transaction, DBRS Morningstar did not
adjust its net cash flow (NCF) or cap rate assumptions because of
the current performance of the portfolio.

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

FINSBURY SQUARE 2020-2: S&P Assigns BB+(sf) Rating on X-Dfrd Notes
------------------------------------------------------------------
S&P Global Ratings has assigned credit ratings to Finsbury Square
2020-2 PLC's (FSQ 2020-2 PLC's) class A notes and class B-Dfrd to
X-Dfrd interest deferrable notes.

FSQ 2020-2 is a static RMBS transaction that securitizes a
portfolio of GBP401.9 million owner occupied and BTL mortgage loans
secured on properties in the U.K. There is no prefunding mechanism
in this transaction.

The loans in the pool were originated between 2014 and 2020 by
Kensington Mortgages Company Ltd., a non-bank specialist lender.

The collateral comprises complex income borrowers with limited
credit impairments, and has a high exposure to self-employed,
contractors, and first-time buyers. About 35.4% of the underlying
collateral consists of mortgage loans that were previously
securitized in Finsbury Square 2017-2 PLC.

Of the closing pool, 28.7% of the mortgage loans have been granted
payment holidays due to COVID-19. The transaction incorporates a
payment holiday reserve, which provides liquidity to help mitigate
the effect of these payment holidays.

In addition, the transaction benefits from liquidity provided by a
general reserve fund, liquidity reserve, and payment holiday
reserve fund. Credit enhancement for the rated notes will consist
of subordination from the closing date and the general reserve
fund.

The transaction incorporates a swap to hedge the mismatch between
the notes, which pay a coupon based on the compounded daily
Sterling Overnight Index Average (SONIA), and the loans, which pay
fixed-rate interest before reversion.

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

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

S&P said, "Our credit and cash flow analysis and related
assumptions consider the transaction's ability to withstand the
potential repercussions of the COVID-19 outbreak, namely, higher
defaults, longer recovery timing, and additional liquidity
stresses. Considering these factors, we believe that the available
credit enhancement is commensurate with the ratings assigned. As
the situation evolves, we will update our assumptions and estimates
accordingly."

  Ratings Assigned

  Class         Ratings      Class size (GBP)
  A             AAA (sf)     337,680,000
  B-Dfrd        AA+(sf)       28,140,000
  C-Dfrd        AA- (sf)      16,080,000
  D-Dfrd        A (sf)         8,040,000
  E-Dfrd        BBB (sf)       4,020,000
  F-Dfrd        NR             8,040,000
  X-Dfrd        BB+ (sf)       9,650,000
  Z-Dfrd        NR            12,060,000
  Certificates  NR           N/A

  NR--Not rated.
  N/A--Not applicable.


GREENE KING: S&P Keeps B Notes' BB+ (sf) Rating on Watch Neg.
-------------------------------------------------------------
S&P Global Ratings affirmed and removed from CreditWatch negative
its 'BBB (sf)' and 'BBB- (sf)' credit ratings on Greene King
Finance PLC's class A and AB notes, respectively. S&P's 'BB+ (sf)'
rating on the class B notes remains on CreditWatch negative,
reflecting the continuing significant uncertainty surrounding the
timing and robustness of the COVID-19 recovery and their available
liquidity.

On April 17, 2020, S&P placed on CreditWatch negative our ratings
in this transaction to reflect the potential effect that the U.K.
government's measures to contain the spread of COVID-19 could have
on both the U.K economy and the restaurant and public houses (pub)
sectors.

Transactions backed by operating cash flows from pub companies
(pubcos) will be particularly hard hit by the mandatory
restrictions imposed by the U.K. government, which prohibit dine-in
business and only permit take-away sales and deliveries. For the
managed-pub sector, it is likely that delivery will not grow
meaningfully enough to offset the loss of revenue due to the
cessation of dine-in. As a result, S&P expects a material reduction
in turnover across the pubcos that it rates. For strictly wet-led
(leased and tenanted) estates, the ability to generate revenue from
delivery is generally very low and the loss of revenue can be
expected to be nearly total while the government's restrictions are
in place.

Greene King Finance is a corporate securitization of the U.K.
operating business of the managed and tenanted pub estate operator
Greene King Retailing, the borrower. It originally closed in March
2005 and has been tapped several times since, most recently in
February 2019. The borrower's ability to withstand the loss of
turnover will come down to their current level of headroom over
their financial covenants and readily available sources of
liquidity.

The transaction features three classes of notes (A, AB, and B), the
proceeds of which have been on-lent by Greene King Finance, the
issuer, to Greene King Retailing, via issuer-borrower loans. The
revenues generated by the assets owned by the borrower, Greene King
Retailing, and its subsidiaries (borrower group) are available to
repay its borrowings from the issuer that, in turn, uses those
proceeds to service the notes. Each class of notes is fully
amortizing and S&P's ratings address the timely payment of interest
and principal due on the notes, excluding any subordinated step-up
interest.

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."

Business risk profile

S&P said, "We have applied our corporate securitization criteria as
part of our rating analysis on the notes in this transaction. As
part of our analysis, we assess whether the operating cash flows
generated by the borrower are sufficient to make the payments
required under the notes' loan agreements by using a debt service
coverage ratio (DSCR) analysis under a base-case and a downside
scenario. Our view of the borrowing group's potential to generate
cash flows is informed by our base-case operating cash flow
projection and our assessment of its business risk profile (BRP),
which we derive using our corporate methodology.

"We expect the COVID-19 pandemic will have a severe impact on the
pub and casual dining industry in the U.K. and more generally on
the broader macroeconomic environment over the course of calendar
2020 and, to a lower extent, 2021. We anticipate reduced consumer
spending and confidence, muted inflation and potential for further
weakening in the pound sterling as headwinds for pubs and
restaurants over the next 12-18 months.

"We are therefore anticipating that Greene King Retailing's, the
borrower, financial position will further deteriorate over the
course of the financial year ending in April 2021 (FY2021) compared
with FY2019 and FY2020, driven by a sharp decline in earnings over
the first half of FY2021. That said, we continue to assess the
borrower's BRP as fair, supported by the group's strong position as
one of the top 3 pub operators in the U.K., its well invested
estate, and the added flexibility of its cost structure due to high
levels of real estate ownership. We believe that, together with the
cash-preservation measures put in place over the lockdown period,
the factors above will support Greene King Finance's longer-term
recovery in earnings towards more sustainable levels."

Recent performance and events

-- Greene King Retailing's strategy for enhancing or stabilizing
earnings before interest taxes depreciation and amortization
(EBITDA) includes increasing its exposure to the managed pub
business and improving the overall quality of its estate via the
disposal of underperforming pubs.

-- For the financial year ending April 2019, the borrower disposed
of 37 tenanted pubs and 32 managed pubs. In the same period, the
borrower purchased 13 leased pubs and 166 of tenanted pubs.
Overall, in the financial year ending April 2019 the tenanted
segment decreased by 3.4% (by number of pubs), whereas the managed
segment increased by about 18.4% (by number).

-- Total revenues were GBP841 million, a 6.9% increase from the
previous year, while reported EBITDA increased to about GBP217
million, marking a year-on-year increase of 1.1%.

--On March 16, 2020, the class A1 and A3 notes were fully prepaid.
This transaction was funded by a combination of existing disposal
proceeds, the disposal proceeds from the additional sale of 10 pubs
to Greene King Brewing and Retailing, and from operating cash
surplus.

-- On May 29, 2020, Greene King Ltd. (parent company) advanced to
the borrower, Greene King Retailing, on an uncommitted basis, a new
subordinated loan facility with a limit of up to GBP165 million.
The subordinated loan can be used toward the working capital and
debt service requirements of the borrower. Currently, about GBP26
million was drawn to fund the June 15, 2020 debt service payment,
leaving GBP139 million of the subordinated loan facility undrawn.

-- The committed liquidity facility remains undrawn with GBP224
million available to the issuer.

-- On June 23, 2020, Greene King Finance scheduled a noteholders'
meeting due on July 15, 2020 to consider a one-off free cash flow
DSCR financial covenant waiver proposal.

S&P said, "At this time, we view this waiver as tactical response
to the current liquidity pressures resulting from the mandatory
closures under the U.K. government's response to the COVID-19
pandemic, rather than a reflection of a long-term deterioration of
the creditworthiness of the borrower. That said, under our
methodology we expect a borrower to make a broad range of covenants
intended to ensure that cash is trapped and control is given to the
noteholders before debt service under the notes is jeopardized. We
will continue to monitor both the effect of these waivers and any
long-term weakening of the creditor protections they provide to the
noteholders, and may re-evaluate whether they result in any
weakening of the creditor protections."

Rating Rationale

Greene King Retailing's primary sources of funds for principal and
interest payments on the outstanding notes are the loan interest
and principal payments from the borrower, which are ultimately
backed by future cash flows generated by the operating assets. Our
ratings address the timely payment of interest and principal due on
the notes, excluding any subordinated step-up coupons.

S&P said, "In our view, the credit quality of the transaction has
declined due to health and safety fears related to COVID-19. We
believe this will negatively impact the business cash flows
available to the issuer."

DSCR analysis

S&P said, "Our cash flow analysis serves to both assess whether
cash flows will be sufficient to service debt through the
transaction's life and to project minimum DSCRs in our base-case
and downside scenarios.

"In the face of the liquidity stress resulting from the COVID-19
pandemic on those sectors directly affected by the U.K.
government's response, our current view is that the duration of the
maximum liquidity stress will be contained within the second and
third quarters of 2020 (calendar year) and be followed by a
recovery period that may last through 2022. Importantly, it is our
current view that the pandemic will not have a lasting effect on
the industries and companies themselves, meaning that the long-term
creditworthiness of the underlying companies will not fundamentally
or materially deteriorate over the long term. Our downside analysis
provides unique insight into a transaction's ability to withstand
the liquidity stress precipitated by the closure of pubs in the
U.K. Given those circumstances, the outcome of our downside
analysis alone determines the resilience-adjusted anchor. As a
result, our analysis begins with the construction of a base-case
projection from which we derive a downside case. However, we have
not determined our anchor, which does not reflect the liquidity
support at the issuer level--which we see as a mitigating factor to
the liquidity stress we expect to result from the U.K. government's
response to the COVID-19 pandemic. Rather, we developed the
downside scenario from the base case to assess whether the COVID-19
liquidity stress would have a negative effect on level of the
resilience-adjusted anchor for each class of notes.

"That said, we performed the base-case analysis to assess whether,
post-pandemic, the anchor would be adversely affected given the
long-term prospects currently assumed under our base-case
forecast."

Base-case forecast

S&P said, "We typically do not give credit to growth after the
first two years, however in this review, we consider the growth
period to continue through FY2023 in order to accommodate both the
duration of the COVID-19 stress and the subsequent recovery.

Greene King Retailing's earnings depend mostly on general economic
activity and discretionary consumer demand. Given the lack of
updated public earnings guidance for the next financial year and
the nature of the COVID-19 pandemic, S&P's base-case assumptions
remain very uncertain. As a result of the virus' steep escalation,
we have revised our previous macroeconomic forecasts to reflect the
likely contraction in global output and reduction of consumer
spending.

After considering the likely effect of COVID-19, S&P's current
assumptions are:

-- U.K. real GDP contracting by 6.5% in calendar year 2020 amid a
COVID-19-induced slowdown, and rebounding by 6.0% in 2021. S&P's
assume real private consumption growth in the U.K. will also
decline, especially in the first half of 2020, limiting demand for
discretionary items.

-- S&P said, "We anticipate revenues to sharply decline in the
first half of FY2021 resulting from a prolonged lockdown period of
about three months, which we anticipate to be followed by a period
of restrictions on in-site capacity due to social distancing
measures. We therefore anticipate FY2021 revenues to fall by about
30%.

-- S&P said, "We anticipate the topline to recover somewhat toward
the end of FY2021 and in FY2022, although remaining below FY2019
levels due to the weakened macroeconomic picture, as well as some
level of social distancing measures until the COVID-19 pandemic is
definitively resolved. Thereafter, we anticipate trading levels to
recover toward FY2019 levels in latter part of FY2022.

-- S&P said, "While the pandemic will represent a blow to Greene
King Retailing's topline, we anticipate the group to benefit from
the comprehensive set of measures implemented by the U.K.
government to alleviate the short-term effect on its cost
structure. Having furloughed most of its staff and benefitting from
a 12-month business-rate holiday, coupled with the relatively low
amount of rent costs (due to the high proportion of company owned
sites), we anticipate the borrower will control operating
expenditures over the second half of FY2020. That said, we expect
its EBITDA margins to be under pressure over the course of FY2020
and FY2021, as limited pub capacity and lower volumes could lead to
weakened economies of scale."

-- Due to the topline shortfall and deterioration on profitability
margins, we anticipate Greene King Retailing to report muted EBITDA
in FY2021. S&P anticipates reported margins to fall to about 21% in
FY2021 and recover toward 23%-24% thereafter.

-- S&P said, "We also expect the borrower to reduce capital
expenditures (capex) to about GBP47 million in order to preserve
cash. We anticipate more normalized capex levels over the course of
FY2022 and thereafter, going back toward GBP55 million-GBP70
million on a capitalized basis."

-- Weakened earnings and tax relief will likely result in reduced
tax payments in FY2020 and FY2021.

Downside DSCR analysis

S&P said, "Our downside DSCR analysis tests whether the
issuer-level structural enhancements improve the transaction's
resilience under a moderate stress scenario. Greene King Retailing
falls within the pubs, restaurants, and retail industry.
Considering U.K. pubs' historical performance during the financial
crisis of 2007-2008, in our view, a 15% and 25% decline in EBITDA
from our base case is appropriate for the managed and tenanted pub
subsectors, respectively.

"Our current expectations are that the COVID-19 liquidity stress
will result in a reduction in EBITDA that is far greater than the
15% and 25% declines we would normally assume under our downside
stresses for managed and tenanted pubs, respectively. Hence, our
downside scenario comprises both our short- to medium-term EBITDA
projections during the liquidity stress period and our long-term
forecast, but with the level of ultimate recovery limited to 15%
and 25% lower than what we would assume for a base-case forecast
over the long-term for managed and tenanted pubs, respectively. For
example, our downside scenario forecast of EBITDA reflects our
base-case assumptions for recovery into FY2021 until the level of
EBITDA is within 85% and 75% of our projected long-term EBITDA for
managed and tenanted pubs, respectively.

"Our downside DSCR analysis resulted in strong resilience scores
for the class A, AB, and B notes, which are higher than the
satisfactory resilience score achieved in our previous review on
the class AB and B notes, and is unchanged for the class A notes.
This reflects the headroom above a 1.80:1 DSCR threshold that is
required under our criteria to achieve a strong resilience score
after considering the level of liquidity support available to each
class."

Each class's resilience score corresponds to rating
categories--excellent at 'AAA' through vulnerable at 'B'. Within
each category, the recommended resilience-adjusted anchor reflect
notching based on where the downside DSCR falls within a range (for
the class A, AB, and B notes). As a result, the resilience-adjusted
anchors for the class A, AB, and B notes would not be adversely
affected under our downside scenario.

Liquidity facility adjustment

Given that S&P has given full credit to the liquidity facility
amount available to each class of notes, a further one-notch
increase to any of the resilience-adjusted anchors is not
warranted.

Modifiers analysis and comparable rating analysis

S&P applied a one-notch downward adjustment to the class AB notes
to reflect their subordination and weaker access to the security
package compared with the class A notes, which is unchanged from
our previous review.

Counterparty risk

S&P's ratings are not currently constrained by the ratings on any
of the counterparties, including the liquidity facility,
derivatives, and bank account providers.

The notes are supported by hedging agreements with the London
branch of Banco Santander, S.A. (interest rate swaps for the
floating-rate class B1 and B2 notes) and HSBC Bank PLC (interest
rate swap on the floating-rate class A5 notes). S&P said, "We
assess the collateral framework as weak under our counterparty
criteria, notably due to the type of collateral that can be posted,
which we do not view as eligible under our criteria, or lower
haircuts for collateral denominated in currencies other than
British pound sterling. But because the replacement commitment is
sufficiently robust, based on our current counterparty criteria, we
give credit to it. As the swaps in this transaction are
collateralized, we consider the resolution counterparty rating
(RCR) on the swap counterparty as the applicable counterparty
rating."

Outlook

S&P said, "Over the next 12 to 24 months, we expect that Greene
King Retailing's operating performance will remain under pressure
against a backdrop the current economic shock stemming from the
COVID-19 pandemic and the U.K. government's response. As we receive
more issuer-specific and industry-level data, and learn more about
what actions issuers will be taking to mitigate the impact on
turnover, we will assess the transaction to determine whether
rating actions are warranted."

Downside scenario

S&P said, "We may consider lowering our ratings on the class A, AB,
and B notes if their minimum projected DSCRs in our downside
scenario have a material-adverse effect on each class's
resilience-adjusted anchor.

"We could also lower our anchor or the resiliency-adjusted anchor
for the class A notes if the business' minimum projected DSCR falls
below 1.40:1 in our base-case DSCR analysis or 1.30:1 in our
downside scenario. Regarding the class AB or class B notes, we
could also lower our anchor or the resiliency-adjusted anchor if
the business' minimum projected DSCR falls below 1.30:1 in either
our base-case DSCR analysis or our downside scenario. This could
happen if a deterioration in trading conditions reduces cash flows
available to the borrowing group to service its rated debt."

Upside scenario

Due to the current economic situation, S&P does not anticipate
revising upward its assessment of Greene King Retailing's BRP
within the next two years.

CreditWatch resolutions

S&P said, "As we develop better clarity on the expected size and
duration of reductions in the transaction's securitized net cash
flows, we will evaluate whether adjustments to our base-case and
downside projections are appropriate. Changes in our projections
could adversely affect our DSCR estimates, which, in turn, could
put pressure on our ratings on the notes. If longer-term effects
emerge that reshape the economy or industry, we may revise our
assessment of a company's BRP, which could also result in rating
changes. We expect to resolve the CreditWatch placements within the
next 90 days when we have a clearer guidance on the overall effect
on each company's liquidity during the shutdown, our evolving view
of the severity and duration of the COVID-19 driven stress, the
prospects for recovery, and the long-term effects on the U.K
economy and the pub industry."

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

-- Health and safety.


SMALL BUSINESS 2018-1: DBRS Keeps BB(high) on D Notes Under Review
------------------------------------------------------------------
DBRS Ratings Limited maintained the Under Review with Positive
Implications (UR-Pos.) status of the following ratings on the bonds
issued by Small Business Origination Loan Trust 2018-1 DAC (SBOLT
2018-1):

-- Class A Notes - A (high) (sf)
-- Class B Notes - A (high) (sf)
-- Class C Notes - A (low) (sf)
-- Class D Notes - BB (high) (sf)

DBRS Morningstar also maintained the Under Review with Developing
Implications (UR-Dev.) status of the following ratings on the bonds
issued by Small Business Origination Loan Trust 2019-1 DAC (SBOLT
2019-1):

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

In both transactions, the rating on the Class A Notes addresses the
timely payment of interest and the ultimate payment of principal on
or before the legal final maturity date. In both transactions, the
ratings on the Class B Notes, Class C Notes, and Class D Notes
address the ultimate payment of interest and principal on or before
the legal final maturity date. The documents of both transactions
permit the deferral of interest on nonsenior bonds and this is not
considered an event of default. The legal final maturity date for
the Class A, Class B, Class C, and Class D Notes falls on the
December 2026 and December 2027 payment dates for the SBOLT 2018-1
and SBOLT 2019-1 transactions, respectively.

The transactions are cash flow securitizations collateralized by a
portfolio of term loans and originated through the Funding Circle
Ltd (Funding Circle) lending platform to small and medium-size
enterprises (SMEs) and sole traders based in the United Kingdom.

Both transactions started to report loans with payment plan
modifications as a result of the coronavirus crisis from the May
2020 payment date (end of April 2020 portfolio cut-off date). As
the full impact on transaction performance has yet to be
ascertained, DBRS Morningstar has maintained the under review
period to allow further time for observation before resolving the
status of the ratings for both transactions. The ratings were
placed under review on April 12, 2020, prior to the publication on
May 18 of a commentary outlining how the coronavirus is likely to
affect the DBRS Morningstar-rated Structured Credit transactions in
Europe "CLO Risk Exposure to the Coronavirus Disease (COVID-19)".

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

SPIRIT ISSUER: S&P Affirms BB+ Rating on Class A5 Notes
-------------------------------------------------------
S&P Global Ratings affirmed and removed from CreditWatch negative
its 'BB+' credit rating on Spirit Issuer PLC's class A5 notes.

On April 17, 2020, S&P placed on CreditWatch negative its ratings
in this transaction to reflect the potential effect that the U.K.
government's measures to contain the spread of COVID-19 could have
on both the U.K economy and the restaurant and public houses (pub)
sectors.

Transactions backed by operating cash flows from pub companies
(pubcos) will be particularly hard hit by the mandatory
restrictions imposed by the U.K. government, which prohibit dine-in
business and only permit take-away sales and deliveries. For the
managed-pub sector, it is likely that delivery will not grow
meaningfully enough to offset the loss of revenue due to the
cessation of dine-in. As a result, S&P expects a material reduction
in turnover across the pubcos that it rates. For strictly wet-led
(leased and tenanted) estates, the ability to generate revenue from
delivery is generally very low and the loss of revenue can be
expected to be nearly total while the government's restrictions are
in place.

Spirit Issuer is a corporate securitization backed by operating
cash flows generated by the borrowers, Spirit Pub Company (Leased)
Ltd. and Spirit Pub Company (Managed) Ltd. (Spirit Pub,
collectively). These operating cash flows are the primary source of
repayment for an underlying issuer-borrower secured loan. Spirit
Pub operates an estate of tenanted and managed pubs. The original
transaction closed in November 2004, and was tapped in November
2013.

The transaction features one class of notes, the proceeds of which
have been on-lent by Spirit Issuer, the issuer, to Spirit Pub the
borrowers, via issuer-borrower loans. The operating cash flows
generated by the borrowers are available to repay their borrowings
from the issuer that, in turn, uses those proceeds to service the
notes. The class A5 notes are fully amortizing and our rating
addresses the timely payment of interest and principal due on the
notes, excluding any subordinated step-up interest. The class A5
notes pay fixed interest until December 2028, floating at
three-month LIBOR plus 0.30% thereafter, with a step-up margin of
0.45%. The step-up margin is not addressed by our rating.

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 is using this assumption in assessing
the economic and credit implications associated with the pandemic.
As the situation evolves, S&P will update its assumptions and
estimates accordingly.

Business risk profile

S&P said, "We have applied our corporate securitization criteria as
part of our rating analysis on the notes in this transaction. As
part of our analysis, we assess whether the operating cash flows
generated by the borrower are sufficient to make the payments
required under the notes' loan agreements by using a debt service
coverage ratio (DSCR) analysis under a base-case and a downside
scenario. Our view of the borrowing group's potential to generate
cash flows is informed by our base-case operating cash flow
projection and our assessment of its business risk profile (BRP),
which we derive using our corporate methodology.

"We expect the COVID-19 pandemic will have a severe impact on the
pub and casual dining industry in the U.K. and more generally on
the broader macroeconomic environment over the course of calendar
2020 and, to a lower extent, 2021. We anticipate reduced consumer
spending and confidence, muted inflation and potential for further
weakening in the pound sterling as headwinds for pubs and
restaurants over the next 12-18 months.

"We are therefore anticipating that Spirit Pub's, the borrowers,
financial position will deteriorate further over the course of the
financial year ending in April 2021 (FY2021) compared with FY2019
and FY2020, driven by a sharp decline in earnings in FY2021 and, to
a lesser degree, FY2022. That said, we continue to assess the
borrower's BRP as fair, supported by the group's exposure to the
more affluent regions in the U.K., its wide brand mix, and the
added flexibility of its cost structure due to high levels of real
estate ownership. We believe that, together with the
cash-preservation measures put in place over the lockdown period,
the factors above will support Spirit Pub's longer-term recovery in
earnings toward more sustainable levels."

Recent performance and events

For the financial year ending April 2020, the borrower disposed of
88 managed pubs, a decrease of 22.3% within this segment, and
reduced the number of tenanted pubs in its portfolio by 70, a 23.3%
reduction from the previous year.

Driven by the disposals and mandatory closure of the pubs due to
COVID-19 pandemic, total FY2020 revenues, reported in the latest
financial report, were GBP383.9 million, a 31.3% decrease from the
previous year. Over the same period, reported earnings before
interest taxes depreciation and amortization (EBITDA) declined to
GBP98.4 million, a 21.9% decrease compared with the previous year.
Spirit Pub operates a hybrid business model where 57.0% of the
securitized estate (by pub count) is managed and generates 86.9% of
Spirit Pub's revenues and 75.2% of its reported EBITDA in FY2020,
while the remaining 43.0% of the securitized estate is operated
under a lease and tenanted model (13.1% of revenues and 24.8% of
reported EBITDA in FY2020).

The committed liquidity facility remains undrawn with GBP15.01
million available to the issuer.

On March 30, 2020, class A2 notes were prepaid in full. This
transaction was funded by a combination of existing disposal
proceeds, disposal proceeds from a sale of 83 pubs (46 managed and
37 tenanted) to Greene King Brewing and Retailing, and from
operating cash surplus.

After the prepayment of the class A2 notes, the annual debt service
will reduce from the current level of GBP24.5 million (based on the
Q4 2020 financial report) to about GBP5.3 million, until the class
A5 notes start amortizing in June 2029.

On June 22, 2020 Spirit Managed Funding Ltd. advanced, to the
borrowers (Spirit Pub, on an uncommitted basis, a subordinated loan
facility with a limit of up to GBP100 million. The subordinated
loan can be applied toward the working capital and debt service
requirements of the borrowers. Currently, about GBP3 million was
drawn.

S&P said, "Under our methodology, we expect a borrower to make a
broad range of covenants intended to ensure that cash is trapped
and control is given to the noteholders before debt service under
the notes is jeopardized. Spirit Issuer did not waive any of its
covenants. Based on the most recent financial report for Q4 FY20,
both financial covenants are met.

“zWe currently view temporary financial covenant waivers as
tactical responses to the current liquidity pressures resulting
from the mandatory closures under the U.K. government's response to
the COVID-19 pandemic, rather than a reflection of a long-term
deterioration of the creditworthiness of the borrower."

Rating Rationale

Spirit Issuer's primary sources of funds for principal and interest
payments on the outstanding class of notes are the loan interest
and principal payments from the borrowers, which are ultimately
backed by future cash flows generated by the operating assets.
S&P's ratings address the timely payment of interest and principal
due on the notes.

In S&P's view, the credit quality of the transaction has declined
due to health and safety fears related to COVID-19. S&P believes
this will negatively impact the business cash flows available to
the issuer.

DSCR analysis

S&P's cash flow analysis serves to both assess whether cash flows
will be sufficient to service debt through the transaction's life
and to project minimum DSCRs in its base-case and downside
scenarios.

S&P said, "In the face of the liquidity stress resulting from the
COVID-19 pandemic on those sectors directly affected by the U.K.
government's response, our current view is that the duration of the
maximum liquidity stress will be contained within the second and
third quarters of 2020 (calendar year) and be followed by a
recovery period that may last through 2022. Importantly, it is our
current view that the pandemic will not have a lasting effect on
the industries and companies themselves, meaning that the long-term
creditworthiness of the underlying companies will not fundamentally
or materially deteriorate over the long term. Our downside analysis
provides unique insight into a transaction's ability to withstand
the liquidity stress precipitated by the closure of pubs in the
U.K. Given those circumstances, the outcome of our downside
analysis alone determines the resilience-adjusted anchor. As a
result, our analysis begins with the construction of a base-case
projection from which we derive a downside case. However, we have
not determined our anchor, which does not reflect the liquidity
support at the issuer level--which we see as a mitigating factor to
the liquidity stress we expect to result from the U.K. government's
response to the COVID-19 pandemic. Rather, we developed the
downside scenario from the base case to assess whether the COVID-19
liquidity stress would have a negative effect on level of the
resilience-adjusted anchor for each class of notes.

"That said, we performed the base-case analysis to assess whether,
post-pandemic, the anchor would be adversely affected given the
long-term prospects currently assumed under our base-case
forecast."

Base-case forecast
S&P said, "We typically do not give credit to growth after the
first two years, however in this review, we consider the growth
period to continue through FY2023 in order to accommodate both the
duration of the COVID-19 stress and the subsequent recovery.

Spirit Issuer's earnings depend mostly on general economic activity
and discretionary consumer demand. Given the lack of updated public
earnings guidance for the next financial year and the nature of the
COVID-19 pandemic, our base-case assumptions remain very uncertain.
As a result of the virus' steep escalation, we have revised our
previous macroeconomic forecasts to reflect the likely contraction
in global output and reduction of consumer spending."

After considering the likely effect of COVID-19, S&P's current
assumptions are:

-- U.K. real GDP contracting by 6.5% in calendar year 2020 amid a
COVID-19-induced slowdown, and rebounding by 6.0% in 2021. S&P
assumes real private consumption growth in the U.K. will also
decline, especially in the first half of 2020, limiting demand for
discretionary items.

-- S&P said, "We anticipate revenues to sharply decline in the
first half of FY2021, resulting from a prolonged lockdown period of
about three months, which we anticipate to be followed by a period
of severe restrictions on in-site capacity due to social distancing
measures. We therefore anticipate FY2021 revenues to fall by about
40%."

-- S&P said, "We anticipate the topline to recover somewhat toward
the end of FY2021, although remaining well below FY2019 levels due
to the weakened macroeconomic picture, as well as some level of
social distancing measures until the COVID-19 pandemic is
definitively resolved. Thereafter, we anticipate trading levels to
recover to FY2019 levels in the second half of FY2022."

S&P said, "While the pandemic will represent a blow to Spirit
Issuer's topline, we anticipate the group to benefit from the
comprehensive set of measures implemented by the U.K. government to
alleviate the short-term effect on its cost structure. Having
furloughed most of its staff and benefitting from a 12-month
business-rate holiday, coupled with the relatively low amount of
rent costs (due to the high proportion of company owned sites), we
anticipate the borrower will control operating expenditures over
the second half of FY2020. That said, we expect its EBITDA margins
to be under pressure over the course of FY2020 and FY2021, as
limited pub capacity and lower volumes could lead to weakened
economies of scale.

"Due to the topline shortfall and deterioration on profitability
margins, we anticipate Spirit Pubs to report muted EBITDA in FY2021
and, to a lesser extent, FY2022. We anticipate reported margins to
decline to 20%-22% in FY2021 and FY2022."

Spirit Issuer has shown a significant level of pub disposals over
the past three years, in a move to consolidate its securitized
estate under the Greene King Retail Ltd. securitization. Further
asset disposals are likely in the future, although for the purposes
of our analysis we have assumed disposals in the range of 25-30
properties per year as we model the Spirit Debenture on a
going-concern basis.

S&P also expects the borrower to reduce capital expenditures
(capex) to preserve cash in light of the COVID-19 pandemic. S


                           *********


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

Troubled Company Reporter-Europe is a daily newsletter co-
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Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.

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

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