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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

          Tuesday, August 18, 2020, Vol. 21, No. 165

                           Headlines



B U L G A R I A

OTP LEASING: Fitch Affirms Then Withdraws BB+ LT IDR


G E O R G I A

GEORGIA: Fitch Affirms BB LT IDR, Outlook Negative
GEORGIAN WATER: Fitch Cuts LT IDR to B+ Then Withdraws Rating


G E R M A N Y

PPM PURE: German Gov't. Rejects Vital Material's Takeover Bid


I R E L A N D

CARLYLE GLOBAL 2015-1: S&P Cuts Class D-R Notes Rating to BB-(sf)


K A Z A K H S T A N

NURBANK JSC: S&P Affirms 'B-/B' ICRs, Outlook Stable
TECHNOLEASING LLC: Fitch Affirms B- LT IDR, Outlook Stable


N E T H E R L A N D S

DRYDEN 35 EURO 2014: S&P Lowers Class E-R Notes Rating to 'B+(sf)'
DRYDEN 52 EURO 2017: S&P Lowers Class E Notes Rating to 'BB- (sf)'


S P A I N

DISTRIBUIDORA INTERNACIONAL: S&P Cuts Issuer Credit Rating to CC
OBRASCON HUARTE: Moody's Cuts CFR to Caa2; Alters Outlook to Neg.


S W I T Z E R L A N D

CNN MONEY: Files for Bankruptcy, Halts Operations
UPC HOLDING: Moody's Downgrades CFR to B1, Outlook Stable


U N I T E D   K I N G D O M

CONTOURGLOBAL PLC: Fitch Affirms BB- LT IDR, Outlook Stable
DW SPORTS: Frasers Group Bids to Acquire Business for GBP30MM
FINABLR: Founder Steps Down as Joint Chairman Amid HMRC Crackdown
STONEGATE PUB: Fitch Assigns B- LT IDR, Outlook Stable
TATA STEEL: Says Bailout Talks with UK Government Ongoing

VICTORIA'S SECRET: UK Arm Owed GBP466MM Prior to Administration

                           - - - - -


===============
B U L G A R I A
===============

OTP LEASING: Fitch Affirms Then Withdraws BB+ LT IDR
-----------------------------------------------------
Fitch Ratings has affirmed OTP Leasing's (OTPL) Long Term Issuer
Default Rating (IDR) at 'BB+' with Negative Outlook.

At the same time OTPL's ratings have been withdrawn for commercial
reasons. Accordingly, Fitch will no longer provide ratings or
analytical coverage for OTPL.

KEY RATING DRIVERS

IDRS and SUPPORT RATING (SR)

OTPL's IDRs and SR reflect a moderate probability of support from
Hungary's OTP. Fitch views OTP's propensity to support the leasing
company as high given the strategic importance of the Bulgarian
operations to the overall group. Its assessment of support also
considers reputational damage for OTP from a default of its
subsidiary and their common branding. Fitch believes that any
required support would be immaterial relative to OTP's ability to
provide it. OTPL is a fully owned subsidiary of DSK bank, OTP's
Bulgarian banking subsidiary.

The Negative Outlook on OTPL's IDR reflects increased uncertainty
about OTP's ability to provide support to the Bulgarian operation.
This reflects pressure on OTP's credit profile arising from the
economic effects of the coronavirus outbreak.

RATING SENSITIVITIES

Rating sensitivities are no long relevant given the rating
withdrawal.



=============
G E O R G I A
=============

GEORGIA: Fitch Affirms BB LT IDR, Outlook Negative
--------------------------------------------------
Fitch Ratings has affirmed Georgia's Long-Term Foreign-Currency
Issuer Default Rating at 'BB'. The Outlook is Negative.

KEY RATING DRIVERS

Georgia's ratings are supported by strong structural indicators
such as governance and business environment relative to 'BB'
category peers. A consistent and credible policy framework has
underpinned Georgia's resilience to previous shocks. These credit
strengths are balanced by a high share of foreign-currency
denominated government debt, low external liquidity and higher
external financing requirements relative to peers.

The Negative Outlook reflects the significant impact of the
coronavirus pandemic on Georgia's economy. The pandemic is causing
a sharp contraction of Georgia's small open economy with a large
tourism sector, a deterioration in fiscal accounts, including
markedly higher public debt, and increasing risks stemming from
Georgia's higher external debt and wider structural current account
deficit relative to the median of its 'BB' category peers.

Fitch forecasts Georgia's economy to contract by 4.8% in 2020, with
a rebound in growth of 4.5% in 2021. The continued closure of
Georgia's land and air borders will have a significant impact on
its tourism sector, which directly accounts for 11.6% of GDP (World
Travel Tourism Council, 2019). A gradual recovery in tourism is
anticipated in 2021, but it is unlikely to recover to 2019 levels
by 2022. The tourism sector remains vulnerable to regional economic
developments, with Russia, Turkey, Azerbaijan and Armenia
significant sources of tourism receipts.

The gradual easing of domestic lockdown measures has led to a mild
resumption in economic activity. Latest national estimates show
economic contraction year-on-year eased to 7.7% in June, after a
steep decline of 16.6% in April. On aggregate, Georgia's economy in
1H20 contracted by 5.8% yoy. Fitch expects domestic demand to pick
up from 2H20, led predominately by increased capital spending by
the public sector. Household consumption will be weighed down by
weaker labour market developments. While weaker external demand
will have a larger negative net impact on trade than the decline in
imports.

The National Bank of Georgia (NBG) lowered its refinancing rate for
a third consecutive time on August 5, cutting its main policy rate
by 25bp to 8.0%, compared with a rate of 9.0% in March. The NBG has
eased monetary policy as expected, in response to the recent
decline in inflationary pressures. Amid falling oil prices and a
weaker demand environment, inflation will continue to fall well
into 2H20. Latest inflation in July was 5.7%, down from a 2020 peak
of 6.9% in April. Fitch forecasts inflation to average 4.9% in
2020, moving towards the NBG's inflation projection of 3.5% by
end-year.

Fitch considers that the NBG's track record of consistent and
credible policy making has helped underpin Georgia's resilience to
past external shocks and will preserve macroeconomic stability and
mitigate balance of payments risks. In response to the coronavirus
pandemic, the NBG introduced macro-prudential measures and
intervened in the foreign exchange market moderately to smooth
exchange rate volatility.

Fitch estimates that the government's Anti-Crisis Economic Plan to
the coronavirus pandemic equals GEL3.9 billion (7.8% of GDP) as of
August 10. This includes the announced budget support of GEL2.0
billion in April and additional measures including one-off child
support grants, support for university tuition fees and assistance
for the self-employed. The government also plans to double its VAT
tax refunds, as well as extend its support for utility fees
covering November 2020 to February 2021 (previously this support
covered March to May 2020).

Accounting for additional measures, Fitch now forecasts Georgia's
fiscal deficit to reach 9.2% of GDP in 2020 (compared with a
forecast of 8.6% in April). Its wider deficit forecast relative to
the government's 8.5% deficit target, assumes both a weaker revenue
projection and close to full absorption of most measures, although
the take up of some support measures have so far been
lower-than-expected (for example, the wage subsidy scheme). Fading
of some one-off measures and economic recovery should help narrow
the deficit to 4.8% in 2021.

The revised budget can be accommodated through financing acquired
in April, (around 14.8% of GDP). This mainly consists of support
from official creditors in the form of policy loans, and also
includes a deposit build-up for additional policy space. Fitch
estimates this accumulation of government deposits to be around
5.6% of GDP. The government has an upcoming Eurobond redemption of
USD500 million in April 2021 (2.8% of GDP).

Georgia's general government debt-to-GDP ratio will increase to
58.5% in 2020, from 39.8% in 2019, before a modest decline to 56.9%
in 2021. Its projections place Georgia's debt close to the
projected median debt ratio (57.6% in 2021) of 'BB' category peers.
Fitch assumes the government will resume fiscal consolidation once
the pandemic subsides due to Georgia's prudent track record and
continued engagement with the IMF, currently through Extended Fund
Facility (EFF). Georgia's high share of foreign-currency
denominated debt (77.7%, 2019) gives rise to exchange rate risk.
Increased fiscal risks are partially mitigated by a high share of
multilateral debt (73% of total debt, 2019), low interest costs and
long maturities. Contingent liabilities remain a fiscal risk. In
early 2020, the IMF estimated that SOEs' gross financing
requirements equaled around 18% of GDP for 2020-2022.

The COVID-19 shock has increased vulnerabilities to Georgia's
external finances. Deteriorating external demand, a halt to inward
tourism, and lower inflows of remittances, are forecast by Fitch to
more than double Georgia's current account deficit (CAD)-to-GDP
from 5.3% in 2019 to 11.1% in 2020; higher than the projected 4.1%
median CAD of 'BB' category peers. Fitch expects external financing
needs to be met by concessional official borrowing, which will help
preserve external buffers and CXP coverage. Net external
debt-to-GDP will increase to 64.0% in 2020 from 60.0% in 2019, well
above the projected 25% median of 'BB' category peers.

The impact of COVID-19 led Fitch to revise its outlook on the
Georgian banking sector to negative from stable on March 25, 2020.
The economic recession in 2020 and a high share of foreign currency
loans (59% of sector loans, end 1Q20), will likely result in a
deterioration of banks' asset quality, earnings and capitalisation
with downside risks in the event of a deeper and longer economic
downturn. The NBG measures (including reduction of the capital
conservation buffer from 2.5% to 0% and two-thirds of the buffer
covering foreign currency risk, in addition to liquidity support
from a GEL600 million 'Long Lari' instrument) should lower the risk
for regulatory breaches by banks. While policy measures aimed at
providing support to households and businesses operating in the
most vulnerable sectors of the economy should help reduce pressure
on banks' borrowers.

Political uncertainty remains high in the run-up to October's
parliamentary elections. Parliament's approval in June of
constitutional changes to the electoral code, facilitating a more
proportional voting system, opens up parliamentary seats for
smaller political parties. Fitch does not expect the outcome of
elections to materially disrupt existing fiscal, geopolitical and
economic policy commitments. There remains a general consensus
amongst political parties towards a policy framework supporting EU
accession. This is further underpinned by Georgia's track record of
cooperation and strong support from official creditors.

Georgia's governance and ease of doing business indicators
outperform the median percentile of its 'BB' peers. The extension
of the IMF EFF programme until April 2021 underscores the
authorities' commitment towards maintaining policy credibility and
structural reform, even against the backdrop of an electoral cycle.
However, geopolitical risks are high, due to fragile relations with
Russia, which can affect domestic politics, currency developments
and the economy.

ESG - Governance: Georgia has an ESG Relevance Score (RS) of 5 for
both Political Stability and Rights and for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption, as
is the case for all sovereigns. These scores reflect the high
weight that the World Bank Governance Indicators (WBGI) have in its
proprietary Sovereign Rating Model. Georgia has a medium WBGI
ranking at 64.0, reflecting moderate institutional capacity,
established rule of law, a moderate level of corruption and
political risks associated with the unresolved conflict with
Russia.

SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns Georgia a score equivalent to a
rating of 'BB' on the LTFC IDR scale.

Fitch's sovereign rating committee adjusted the output from the SRM
to arrive at the final LTFC IDR by applying its QO, relative to
rated peers, as follows:

  - External finances: -1 notch, to reflect that relative to its
peer group, Georgia has higher net external debt, structurally
larger CADs, and a large negative net international investment
position.

  - Macroeconomic policy: +1 notch, to reflect Georgia's policy
framework strength and consistency, including a credible monetary
and exchange rate policy, prudent fiscal strategy and strong record
of compliance with IMF's quantitative performance criteria and
structural benchmarks. This policy mix has delivered track record
of resilience to external shocks, including negative developments
in its main trading partners, and reduced risks to macroeconomic
stability.

RATING SENSITIVITIES

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

  - Public Finances: Deterioration in the projected medium-term
outlook for public finances, for example, due to the absence of
fiscal consolidation and/or deterioration in growth prospects.

  - External Finances: An increase in external vulnerability, for
example, a sustained widening of the CAD and rapid decline in
international reserves.

  - Structural Features: Deterioration in either the domestic or
regional political environment that affects economic policy-making
and economic growth.

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

  - Public Finances: Fiscal consolidation post-coronavirus crisis
that is consistent with a medium-term reduction in general
government debt and improvements in the currency composition of
debt.

  - External Finances: A significant reduction in external
vulnerability, for example from a reduction in the current account
deficit and/or increase in international reserves.

  - Macroeconomics: A stronger and sustained GDP growth outlook,
without the emergence of macroeconomic imbalances and leading to a
higher GDP per capita level.

KEY ASSUMPTIONS

Fitch expects the global economy to perform in line with its Global
Economic Outlook (June 29, 2020), which projects the eurozone to
contract by -8% in 2020 before growing by 4.5% in 2021 and 2.8% in
2022.

ESG CONSIDERATIONS

Georgia has an ESG Relevance Score of 5 for Political Stability and
Rights as World Bank Governance Indicators have the highest weight
in Fitch's SRM and are highly relevant to the rating and a key
rating driver with a high weight.

Georgia has an ESG Relevance Score of 5 for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
World Bank Governance Indicators have the highest weight in Fitch's
SRM and are therefore highly relevant to the rating and are a key
rating driver with a high weight.

Georgia has an ESG Relevance Score of 4 for Human Rights and
Political Freedoms as strong social stability and voice and
accountability are reflected in the World Bank Governance
Indicators that have the highest weight in the SRM. They are
relevant to the rating and a rating driver.

Georgia has an ESG Relevance Score of 4 for Creditor Rights as
willingness to service and repay debt is relevant to the rating and
is a rating driver for Georgia, as for all sovereigns.

Except for the matters discussed, 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).

GEORGIAN WATER: Fitch Cuts LT IDR to B+ Then Withdraws Rating
-------------------------------------------------------------
Fitch Ratings has downgraded Georgia-based Georgian Water and Power
LLC's Long-Term Foreign Currency Issuer Default Ratings to 'B+'
from 'BB-'. The Outlook is Stable. Fitch has simultaneously
withdrawn its ratings.

The downgrade follows the alignment of GWP's ratings with those of
its parent, Georgia Global Utility JSC (GGU; B+/Stable), reflecting
strong ties between the two, including direct funding from the
parent following the recent refinancing of all of outstanding debt
with a loan from GGU and provision of guarantees to GGU's
noteholders by GWP. Fitch expects GWP to be the most significant
operating company for GGU at 72% of average revenue and 60% of
average EBITDA per year for 2020-2024.

GWP's rating is supported by its natural monopoly position, solid
profitability, improving regulatory environment, reducing water
losses, good receivables collection rates, asset ownership and low
sector risk. This is offset by FX risk, worn out water
infrastructure, and a group structure with related-party
transactions (albeit decreasing and on market terms).

GWP's ratings have been withdrawn for commercial reasons. Fitch
will no longer provide ratings or analytical coverage of GWP.

The ratings were withdrawn with the following reason For Commercial
Purposes

KEY RATING DRIVERS

Ratings Aligned with Parent's: GWP is fully owned by GGU, whose
consolidated credit profile includes regulated water utility
business (GWP), and its fairly higher-risk renewable electricity
business, although this is supported by long-term power purchase
agreements (PPAs).

Fitch assesses the relationship between GWP and GGU as strong as
the latter provides all funding, following the refinancing of the
subsidiary's external debt with a shareholders loan in 2020,
provision of guarantees by GWP to GGU's noteholders and GWP's
significant contribution to GGU's financials, which Fitch expects
to be around 72% of average revenue and 60% of average EBITDA per
year for 2020-2024. There is management commonality.

Supportive Regulation: Since 2018, the regulatory framework for the
water supply and sanitation business in Georgia has been based on
the regulated-asset-based (RAB) principle, which is a key component
for determining capex, although it is based on assets' book values
rather than replacement values. The regulations have been
consistently implemented so far. This ensures appropriate
remuneration and enhances cash flow predictability, in its view.

Tariff Increases Expected in 2021: Fitch expects the second
three-year regulatory period to start in 2021. Fitch expects water
supply tariffs to households to increase significantly in 2021 and
then to remain flat in 2021-2023. A lower than expected tariff
increase would pressure GWP's cash flows.

FX Risks: GWP's exposure to FX fluctuation risk has increased as
all of its debt as of August 12, 2020 is US dollar-denominated, up
from around 40% at end-2019. However, its debt is a loan from its
parent GGU. In addition, its electricity sales are priced in US
dollars although payment is received in lari (about 13% of total
revenue in 2019).

FCF to Remain Negative: Fitch anticipates that the company will
generate healthy cash flow from operations in 2020-2023 of about
GEL64 million on average, but that its free cash flow (FCF) will
remain negative following high capex averaging GEL72 million and
dividend payments averaging GEL8 million annually in the same
period.

Manageable Impact of Coronavirus Crisis: Results in 2020 will be
also affected by the coronavirus outbreak, pressuring operational
performance and the macroeconomic environment, with a likely sharp
contraction in Georgia's economy of about 4.8% in 2020. Fitch
expects an increase in water-service tariffs to households in 2021
to improve cash flows.

ESG Scores: GWP has an ESG Relevance Score of '4' for Water and
Wastewater, due to heavily worn water infrastructure and high-water
losses, and for Group Structure due to related-party transactions,
albeit decreasing and on market terms.

DERIVATION SUMMARY

GWP is a small water company in terms of its asset base and
geographic diversity relative to the rated peer universe. It is
also an outlier in terms of the asset quality as legacy
underinvestment in Georgia's infrastructure has led to water losses
of around 50%, which is extremely high compared with an average of
24% for rated peers in Russia or 20% for the rated peer in the
Czech Republic. Rosvodokanal LLC (BB-/Stable) is rated on a
standalone basis and has stronger asset quality, larger size,
greater geographical diversification and longer record of favorable
regulation are only partially offset by GWP's asset ownership and
developing regulation under the RAB principle.

KEY ASSUMPTIONS

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

  - Georgian GDP in range between -4.8% to 4.4% and CPI of 4.5% in
2020 and of 3.2% over 2021-2023

  - Stable population in Tbilisi over the forecast period

  - Water tariff to remain flat in 2020 at 2018 level and to
increase significantly in 2021 and to remain flat during 2022-2023

  - Water losses dropping from around 40% in 2019 to below 35% in
2023

  - Blended electricity price increase at a low double digit % on
average over 2020-2023

  - Electricity sales volume to be slightly below 170 GWh on
average over 2020-2023

  - Inflation-driven cost increase

  - Capital expenditure of GEL72 million on average over 2020-2023

  - Average annual dividends of around GEL8 million over 2020-2023

RATING SENSITIVITIES

Not applicable as rating withdrawn

LIQUIDITY AND DEBT STRUCTURE

No Near-term Maturities: In 3Q20 GWP refinanced all of its
outstanding debt with a loan from its parent, GGU, which matures in
five years. Fitch expects FCF to be negative, which may add to
funding requirements.

ESG CONSIDERATIONS

Georgian Water and Power LLC: Group Structure: 4, Water &
Wastewater Management: 4

GWP has an ESG Relevance Score of 4 for Water and Wastewater due to
heavily worn-out water infrastructure and high-water losses and for
Group Structure due to related-party transactions, albeit
decreasing and on market terms.

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



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

PPM PURE: German Gov't. Rejects Vital Material's Takeover Bid
-------------------------------------------------------------
Zandi Shabalala and Tom Daly at Reuters report that the German
government rejected a bid by China's Vital Materials Co to buy PPM
Pure Metals last month due to concerns about the target company's
sales to the German military, two sources with knowledge of the
matter said.

PPM, which was part of Paris-listed Recylex SA and made high-purity
minor metals such as antimony, used in semiconductors and germanium
used in infrared detectors, stopped production at the end of July
because of financial problems, Reuters relates.

According to Reuters, one of the sources said Vital Materials, the
world's top minor metals producer, put together a bid to save the
firm but the German defence ministry did not want it to be acquired
by a Chinese company because PPM sold some products to the
military.

A Vital Materials spokesman confirmed the company made an offer for
PPM but said a deal was not reached, Reuters notes.

The closure of PPM meant the loss of around 85 jobs at the company
based in the town of Langelsheim, in Germany's Lower Saxony region,
Reuters states.




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

CARLYLE GLOBAL 2015-1: S&P Cuts Class D-R Notes Rating to BB-(sf)
-----------------------------------------------------------------
S&P Global Ratings lowered to 'BB- (sf)' from 'BB (sf)' and removed
from CreditWatch negative its credit rating on Carlyle Global
Market Strategies Euro CLO 2015-1 DAC's class D-R notes. At the
same time, S&P has affirmed its ratings on all other classes of
notes.

On June 9, 2020, S&P placed on CreditWatch negative its rating on
the class D-R notes following a number of negative rating actions
on corporates with loans held in European CLOs driven by
coronavirus-related concerns and the current economic dislocation.

The rating actions follow the application of our relevant criteria
and our assessment of the transaction's performance using data from
the July 2020 trustee report.

Since S&P's previous full review 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
decreased, mainly as a result of some trading losses and defaults.

This has resulted in a decrease in credit enhancement for all rated
notes.

  Table 1

  Credit Analysis Results
  Class   Current amount   Credit enhancement  Credit enhancement
           (mil. EUR)       based on the July     at previous
                              2020 report (%)       review (%)
  X            0.96                 N/A                N/A
  A-1-R      279.10                  37.91            37.98
  A-2A-R      22.40                  27.59            27.67
  A-2B-R      24.00                  27.95            27.67
  B-R         30.00                  20.91            21.00
  C-R         27.00                  14.91            15.00
  D-R         24.80                   9.39             9.49
  E-R         12.70                   6.56             6.67
  Sub         54.00                   N/A              N/A

  N/A--Not applicable.

S&P said, "Since our previous review, our scenario default rates
(SDRs) have increased due to credit deterioration in the portfolio,
with 'CCC' rated assets increasing to about EUR64.7 million from
EUR10.1 million. Additionally, we placed on CreditWatch negative
our ratings on 8.30% of the pool, up from 0.83% previously."

  Table 2

  Transaction Key Metrics
                          As of July 2020  At S&P' previous review
          (based on the July 2020 report)
  SPWARF                            3,242         2,828
  Default rate dispersion (%)      685.97        534.99
  Weighted-average life (years)      4.57          4.66
  Obligor diversity measure        116.20        115.42
  Industry diversity measure        21.20         18.09
  Regional diversity measure         1.48          1.54
  Total collateral amount
    including cash (mil. EUR)      453.04        450.00
  Defaulted assets (mil. EUR)        5.12           0.0
  Number of performing obligors       150           140
  'AAA' WARR (%)                    37.44          37.66

  SPWARF--S&P Global Ratings' weighted-average rating factor.   
  WARR--Weighted-average recovery rate.
  N/A--Not applicable.

S&P said, "Our credit and cash flow analysis shows that the class
X, A-1-R, A-2A-R, A-2B-R, B-R, and C-R notes are still able
withstand the stresses we apply at the currently assigned ratings,
based on their available credit enhancement levels. We have
therefore affirmed our 'AAA (sf)' ratings on the class X and class
A-1-R, 'AA (sf)' ratings on the class A-2A-R and A-2B-R, 'A (sf)'
rating on the class B-R, and 'BBB (sf)' rating on the class C-R
notes. Our credit and cash flow analysis indicates that the
available credit enhancement for the class A-2A-R, A-2B-R, B-R, and
C-R notes could withstand stresses commensurate with higher rating
levels than their current rating levels. However, as the CLO is
still in its reinvestment phase, during which the transaction's
credit risk profile could deteriorate, we will maintain the current
rating levels.

"Our credit and cash flow analysis indicates that the available
credit enhancement for the class D-R notes is commensurate with a
lower rating level. The collateral portfolio's credit quality has
deteriorated since our previous rating action, specifically in
terms of 'CCC' rated asset exposures and the proportion of assets
on CreditWatch negative. As a result, there was an increase in the
SDRs, which represent the level of defaults that is likely to
affect the portfolio in a given rating stress scenario. A decline
in recoveries across all rating levels and a lower collateral
balance has also resulted in lower break-even default rates (BDRs),
which represent the gross levels of defaults that the transaction
may withstand at each rating level. We have therefore lowered to
'BB- (sf)' from 'BB (sf)' our rating on the class D-R notes.

"The class E-R notes' current BDR cushion is -0.57%. Based on the
portfolio's actual characteristics and additional overlaying
factors, including our long-term corporate default rates and the
class E-R notes' credit enhancement, this class is able to sustain
a steady-state scenario, in accordance with our criteria." S&P's
analysis further reflects several factors, including:

-- The class E-R notes' available credit enhancement is in the
same range as that of other CLOs S&P has rated and that have
recently been issued in Europe.

-- S&P's model-generated portfolio default risk is at the 'B-'
rating level at 30.09% (for a portfolio with a weighted-average
life of 4.6 years) versus 14.3% if S&P was to consider a long-term
sustainable default rate of 3.1% for 4.6 years.

-- Whether the tranche is vulnerable to nonpayment in the near
future.

-- If there is a one-in-two chance for this note to default.

-- If S&P envisions this tranche to default in the next 12-18
months.

Following this analysis, S&P considers that the available credit
enhancement for the class E-R notes is commensurate with its
current 'B- (sf)' rating. It has therefore affirmed its 'B- (sf)'
rating on the class E-R notes.

The transaction's documented counterparty replacement and remedy
mechanisms adequately mitigate its exposure to counterparty risk
under S&P's current counterparty criteria.

Following the application of S&P's structured finance sovereign
risk criteria, it considers the transaction's exposure to country
risk to be limited at current rating levels, as the exposure to
individual sovereigns does not exceed the diversification
thresholds outlined in our criteria.

Carlyle Global market Strategies Euro CLO 2015-1 is a cash flow CLO
transaction backed by a portfolio of leveraged loans and managed by
CELF Advisors LLP. 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. Hence S&P has not performed any additional scenario
analysis.

Following S&P's analysis of the credit, cash flow, counterparty,
operational, and legal risks, and taking into account other
qualitative factors as applicable, it believez that the ratings are
commensurate with the available credit enhancement for the 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 in light of these
macroeconomic events. We will take further rating actions,
including CreditWatch placements, as we deem appropriate."




===================
K A Z A K H S T A N
===================

NURBANK JSC: S&P Affirms 'B-/B' ICRs, Outlook Stable
----------------------------------------------------
S&P Global Ratings affirmed its 'B-/B' long- and short-term issuer
credit ratings and 'kzBB-' long-term Kazakhstan national scale
rating on Nurbank JSC. The outlook is stable.

S&P said, "The affirmation reflects our view that capital
injections provided by the parent and state-owned program will
allow Nurbank to gradually improve its asset-quality metrics. We
note that currently accumulated capital and liquidity buffers will
likely help the bank to withstand pressures from adverse operating
conditions in Kazakhstan, caused by the economic downturn and
COVID-19 pandemic. However, the bank's earnings generation remains
limited and, if there is a need for additional provisions above our
current expectations, it will require more external support. That
said, under our base-case scenario, we assume the shareholder
remains committed to fully supporting the bank in case of need."

Following an asset-quality review, Nurbank received a Kazakhstani
tenge (KZT) 20.038 billion Tier 1 capital injection from the major
shareholder. Also, the state-related Problem Loan Fund (PLF)
provided a five-year asset guarantee of a similar amount.
Furthermore, the bank received KZT46.8 billion in the form of a
15-year subordinated loan from the PLF, which allowed for a one-off
gain of KZT31.2 billion shown in first-half 2020 financials. These
measures helped Nurbank to create additional provisions of KZT 51.2
billion.

Because of created provisions, coverage metrics improved to 39%
(Stage 3 under International Financial Reporting Standards) as of
July 1, 2020, compared with 27% as of year-end 2019. Although this
was still below the market average of about 64%. S&P expects the
bank to create the remaining provisions in due course allowing it
to further clean up its portfolio.

S&P said, "As a result, we expect Nurbank's cost of risk will be
elevated and significantly above the market average, and result in
negative return on equity in 2020. We do not expect that the bank
will substantially increase its business volumes and improve its
earnings generation any time soon. Owing to the above-mentioned
factors, we believe that the risk adjusted capital (RAC) ratio
might deteriorate to 3.2%-3.7% in 2020-2021, compared with 5.3% as
of Dec. 31, 2019, which we still view as rating neutral, according
to our criteria. We also note the bank meets all regulatory
requirements, with the capital ratio significantly above minimum
required levels. Nevertheless, we consider that the pressure on
regulatory capital might arise in the medium term if we observed
deterioration of the bank's asset-quality metrics, in particular a
higher share of restructured loans, following COVID-19-containment
measures and their effects on borrowers.

"Until we see significant improvements in loan book credit quality,
toxic assets might continue constraining the bank's competitive
position and prospects for new business generation, while hindering
its earnings capacity and capital adequacy.

"We view the bank's funding and liquidity in line with the system
average. We haven't seen a deterioration in customer confidence in
the first eight months of the year, on the contrary, the bank built
a sufficient liquidity cushion, which we view as positive in the
current macroeconomic environment. Moreover, under our base case,
we do not expect any massive deposit outflows over the outlook
horizon.

"The stable outlook reflects our expectation that support measures
implemented by the majority shareholder and the banking regulator
will enable Nurbank to maintain its current adequate liquidity and
sustain its capital position in the next 12 months, while gradually
improving its asset quality via the creation of additional
provisions.

"We could take a negative rating action in the next 12 months if we
saw a significant decline in Nurbank's capitalization (RAC falling
below 3%), regulatory ratios falling below minimum levels,
pronounced funding and liquidity pressure, or a material weakening
in asset-quality indicators. This could happen, for instance, if
the amount provided via support measures appears insufficient to
meet provisioning needs, or new provisioning needs arise due to the
current macroeconomic environment and the bank does not receive
additional external support to cover them."

A positive rating action appears remote in the next 12 months,
since it would require significant improvement in the group's
capitalization (with RAC sustainably in the "strong" category)
alongside further pronounced progress in recovering problem assets,
restoring profitability, and maintaining a relatively low risk
appetite. An upgrade would also require Nurbank to demonstrate
customer deposit stability.


TECHNOLEASING LLC: Fitch Affirms B- LT IDR, Outlook Stable
----------------------------------------------------------
Fitch Ratings has affirmed TechnoLeasing LLC's (TL) Long-Term
Issuer Default Ratings (IDRs) at 'B-' and National Rating at
'B+(kaz)'. The Outlooks are Stable.

KEY RATING DRIVERS

TL is a small leasing company operating in Kazakhstan that focuses
on leasing agricultural and road construction equipment. Its
portfolio is concentrated by lessees and industries. The ratings
reflect TL's small franchise and concentrated business model. TL's
ratings also reflect a track record of acceptable performance and
access to government-subsidised funding.

Fitch's assessment of TL's rating and the operating environment
largely incorporates the risks stemming from the coronavirus
pandemic and oil price slump, but the company's financial
performance will remain under pressure in the medium term.

TL's funding profile has improved as challenges related to failure
of the company's largest creditor Tsesnabank (now First Heartland
Jysan Bank) have receded. TL's liquidity position is acceptable,
with cash outflows well-matched against the inflows. TL has only
limited access to unsecured committed lines, which could prompt
refinancing problems in case of stress. However, this scenario does
not form part of its base case.

Fitch assesses TL's credit risk as high, given that the lease book
has mostly semi-annual payments and this could lead to sudden
spikes in impaired lease assets. Fitch expects TL's asset quality
to worsen in 2H20, as deferred leases, mainly due with road
construction and transport companies, reached 6% of gross leasing
assets at end-1H20. Payment discipline in TL's largest portfolio -
agricultural leases - is yet to be tested, with repayments due at
year end.

Absent of export controls, agricultural sector's performance should
be supported by minimal lockdown measures for farmers and stable
demand for agricultural goods. TL's reported impaired leases ratio
was below 2% at end-1H20 (2.5% at end-2019). Low reserve coverage
of reported impaired leases (19% at end-1H20) is partly balanced by
prudent down-payments (20%-30%), and a high proportion of
government-subsidised deals in the lease book (51% at end-1H20).

Fitch believes TL's profitability will be pressured by higher
impairment charges on worsening asset quality and higher cost of
funding. TL's historical performance has been adequate, but the net
interest margin was squeezed to around 7% in 1H20 (annualised) from
10% in 2018 due to the increased average cost of funding. The
pre-tax return on average assets increased to 4.3% in 1H20 (2019:
3%), but this would be lower if TL provisioned more
conservatively.

TL's absolute capital level is modest (USD9.6 million-equivalent at
end-1H20) with debt-to-tangible equity at 3.1x and
liabilities-to-equity at 3.7x. Management intends to maintain
leverage at below liabilities-to-equity covenanted level of 7.5x.
At end-1H20, capital could sustain additional impairment provisions
of 11.4% of gross leases before hitting the covenanted level. TL's
shareholder waived dividends for 2019, which supports leverage in
the short term.

TL's senior unsecured bond issue's rating is equalised with its
Long-Term Local-Currency IDR, reflecting Fitch's view that the
likelihood of default on the senior unsecured obligation is the
same as that of the entity, with average recovery prospects as
reflected in the 'RR4' Recovery Rating.

TL has an ESG Relevance Score of 4 for Exposure to Environmental
Impacts due to its sizable exposure to the agricultural sector (80%
of total lease book at end-1H20) through leasing of specialised
equipment. The vulnerability of the agricultural sector to weather
conditions exposes TL to high credit risks during weak harvests.
This has a negative impact on the company's credit profile, and is
relevant to the ratings in combination with other factors.

RATING SENSITIVITIES

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

Signs of refinancing problems, with a funding profile that becomes
increasingly reliant on short-term funding sources and/or an
inability to access liquidity when needed;

An increase in the debt-to-tangible equity ratio to above 5x, which
would significantly narrow the headroom to covenanted leverage
metrics;

A deterioration in asset quality that impacts profitability and
reduces absorption buffers, particularly the availability and
quality of equity.

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

Upside is limited in the medium term given the challenging
operating environment, the company's modest size and narrow
business model. In the longer term, a materially stronger franchise
and larger scale of business relative to both domestic and
international peers would support an upgrade.

ESG CONSIDERATIONS

TL has an ESG Relevance Score of 4 for Exposure to Environmental
Impacts.

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



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

DRYDEN 35 EURO 2014: S&P Lowers Class E-R Notes Rating to 'B+(sf)'
------------------------------------------------------------------
S&P Global Ratings lowered to 'B+ (sf)' from 'BB- (sf)' and removed
from CreditWatch negative its credit rating on Dryden 35 Euro CLO
2014 B.V.'s class E-R notes. At the same time, S&P has affirmed its
ratings on all other classes of notes.

On June 9, 2020, S&P placed on CreditWatch negative its rating on
the class E-R notes following a number of negative rating actions
on corporates with loans held in Dryden 35 driven by
coronavirus-related concerns and the current economic dislocation.

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

Since S&P's previous full review of the transaction at closing, its
estimate of the total collateral balance (performing assets,
principal cash, and expected recovery on defaulted assets) held by
the CLO has slightly decreased, due to a par lost caused by
defaulted and 'CCC' rated assets. As a result, available credit
enhancement has decreased for all rated notes.

  Table 1

  Credit Analysis Results

  Class   Current amount   Credit enhancement   Credit enhancement

           (mil. EUR)       as of August 2020      at previous
                              (based on June        review (%)
                            trustee report; %) (closing Jan. 2020)

  X               3.00             N/A               N/A
  A-R           261.40            38.19             38.50
  B-1A-R         22.10            27.3428.23        28.60
  B-1B-R         20.00            28.23             28.60
  C-1A-R         15.10            22.30             22.70
  C-1B-R         10.00            22.30             22.70
  D-R            28.10            15.65             16.10
  E-R            24.70             9.81             10.30
  F-R            12.80             6.78              7.20
  Subordinated   47.30             N/A                N/A

  N/A--Not applicable.

S&P said, "In our view, the credit quality of the portfolio has
deteriorated since our previous review, for example, due to the
increase in 'CCC' rated assets to about EUR49.95 million from
EUR10.62 million and defaulted rated assets to about EUR5.64
million from EUR0 million at closing. Additionally, we placed on
CreditWatch negative our ratings on more than 7.4% of the pool, and
assets with negative outlooks also increased, reaching almost
47%."

  Table 2

  Transaction Key Metrics
                          As of August 2020   At S&P's previous
                        (based on June 2020    review (closing
                           trustee report) January 2020)
  
  SPWARF                          3,060.38         2,712.66
  Default rate dispersion (%)       696.41           649.01
  Weighted-average life (years)       4.78             4.46
  Obligor diversity measure          83.08            78.07
  Industry diversity measure         19.38            18.39
  Regional diversity measure          1.39             1.45
  Total collateral amount
   excluding cash (mil. EUR)         420.42          425.00
  Defaulted assets (mil. EUR)          5.64             N/A
  Number of performing obligors         132             124
  'AAA' WARR (%)                      34.37           37.10

  SPWARF--S&P Global Ratings' weighted-average rating factor.
  WARR--Weighted-average recovery rate.
  N/A--Not applicable.

S&P said, "Following the application of our criteria, for the class
X, A-R, B-1A-R, B-1B-R, C-1A-R, C-1B-R, and D-R notes, our credit
and cash flow analysis indicates that the available credit
enhancement is still able withstand the stresses we apply at the
currently assigned ratings. We note that classes can pass at a
higher level and one class passes at a lower level."

S&P said, "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 classes of
notes that could achieve a higher rating. For the class of notes
that could be assigned a lower rating level, given the available
credit enhancement, the seniority of the class in the waterfall,
and as the CLO is still in its reinvestment phase, we will maintain
the current rating level. We will continue to monitor our rating on
this class of notes. We have therefore affirmed our 'AAA (sf)'
ratings on the class X and A-R, 'AA (sf)' ratings on the class
B-1A-R and B-1B-R, 'A (sf)' ratings on the class C-1A-R and C-1B-R,
and 'BBB (sf)' rating on the class D-R notes."

On a standalone basis, the results of the cash flow analysis
indicated a lower rating than that currently assigned for the class
E-R notes. S&P said, "The collateral portfolio's credit quality has
deteriorated since our previous review, specifically in terms of
'CCC' rated and defaulted asset exposure. At the same time, our
cash flow analysis highlights a general decline in excess spread
cash flows attributable to the class E-R notes along with a decline
in recoveries of about 3% across all rating levels. 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 under our analysis
indicates that the next passing level for the class E-R notes is
one notch lower than its current rating level, at 'B+ (sf)'. We
have also considered its level of credit enhancement and position
in the waterfall. We have therefore lowered to 'B+ (sf)' from 'BB-
(sf)' our rating on the class E-R notes."

In S&P's view, the portfolio is granular in nature, and
well-diversified across obligors, industries, and asset
characteristics when compared with other CLO transactions we have
rated recently. Therefore, it has not performed any additional
scenario analysis.

The class F-R notes' current BDR cushion is -4.47%. Based on the
portfolio's actual characteristics and additional overlaying
factors, including S&P's long-term corporate default rates and the
class F-R notes' credit enhancement, this class is able to sustain
a steady-state scenario, in accordance with its criteria. S&P's
analysis further reflects several factors, including:

-- The class F-R notes' available credit enhancement is in the
same range as that of other CLOs S&P has rated and that have
recently been issued in Europe.

-- S&P's model-generated portfolio default risk is at the 'B-'
rating level at 28.63% (for a portfolio with a weighted-average
life of 4.78 years) versus 14.82% if it was to consider a long-term
sustainable default rate of 3.1% for 4.78 years.

-- Whether the tranche is vulnerable to nonpayment in the near
future.

-- If there is a one-in-two chance for this note to default.

-- If S&P envisions this tranche to default in the next 12-18
months.

S&P said, "Following this analysis, we consider that the available
credit enhancement for the class F-R notes is commensurate with its
current 'B- (sf)' rating. We have therefore affirmed our 'B- (sf)'
rating on the class F notes.

"Counterparty, operational, and legal risks are adequately
mitigated in line with our criteria. Following the application of
our structured finance sovereign risk criteria, we consider the
transaction's exposure to country risk to be limited at the
assigned ratings, as the exposure to individual sovereigns does not
exceed the diversification thresholds outlined in our criteria.

"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 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."


DRYDEN 52 EURO 2017: S&P Lowers Class E Notes Rating to 'BB- (sf)'
------------------------------------------------------------------
S&P Global Ratings lowered to 'BB- (sf)' from 'BB (sf)' and removed
from CreditWatch negative its credit rating on Dryden 52 Euro CLO
2017 B.V.'s class E notes. At the same time, S&P has affirmed its
ratings on all other classes of notes.

S&P said, "On June 9, 2020, we placed on CreditWatch negative our
rating on the class E notes following a number of negative rating
actions on corporates with loans held in Dryden 52 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 S&P's previous full review of the transaction in June 2018,
our estimate of the total collateral balance (performing assets,
principal cash, and expected recovery on defaulted assets) held by
the CLO has slightly decreased, due to a par lost caused by
defaulted and 'CCC' rated assets. As a result, available credit
enhancement has decreased for all rated notes.

  Table 1

  Credit Analysis Results

  Class   Current amount   Credit enhancement   Credit enhancement

           (mil. EUR)       as of August 2020      at previous
                              (based on June        review (%)
                            trustee report; %)

  A-1         237.10              40.43              40.9
  B-1          21.00              27.21              27.8
  B-2          31.60              27.21              27.8
  C-1          16.40              20.43              21.1
  C-2          10.60              20.43              21.1
  D            20.00              15.40              16.1
  E            22.00               9.88              10.6
  F            12.50               6.74              7.5
  Subordinated 44.50                N/A              N/A

  N/A--Not applicable.

S&P said, "In our view, the credit quality of the portfolio has
deteriorated since our previous review, for example, due to the
increase in 'CCC' rated assets to about EUR37.86 million from
EUR16.86 million at the last review and defaulted rated assets to
about EUR3.43 million from EUR0 million at our previous review.
Additionally, we placed on CreditWatch negative our ratings on more
than 6% of the pool, and assets with negative outlooks also
increased, reaching almost 49%."

  Table 2
  Transaction Key Metrics
                          As of July 2020    At S&P's previous
                        (based on June 2020        review
                           trustee report) (July 2018)*
  
  SPWARF                         2,980.27          N/A
  Default rate dispersion (%)      660.66          N/A
  Weighted-average life (years)      5.09          N/A
  Obligor diversity measure         93.34          N/A
  Industry diversity measure        19.04          N/A
  Regional diversity measure         1.33          N/A
  Total collateral amount
    excluding cash (mil. EUR)      394.13          411.84
  Defaulted assets (mil. EUR)        3.43          N/A
  Number of performing obligors       156          159
  'AAA' WARR (%)                    34.84          36.18

  *Under previous CLO criteria.
  SPWARF--S&P Global Ratings' weighted-average rating factor.
  WARR--Weighted-average recovery rate.
  N/A--Not applicable.

S&P said, "Following the application of our criteria, for the class
B-1, B-2, C-1, C-2, 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 these classes
of notes. The class A-1 notes are still able to withstand the
stresses we apply at the currently assigned rating, based on their
available credit enhancement levels. We have therefore affirmed our
'AAA (sf)' rating on the class A-1, 'AA (sf)' ratings on the class
B-1 and B-2, 'A (sf)' ratings on the class C-1 and C-2, and 'BBB
(sf)' rating on the class D notes."

On a standalone basis, the results of the cash flow analysis
indicated a lower rating than that currently assigned for the class
E notes. S&P said, "The collateral portfolio's credit quality has
deteriorated since our previous review, specifically in terms of
'CCC' rated and defaulted asset exposure. At the same time, our
cash flow analysis highlights a general decline in excess spread
cash flows attributable to the class E notes along with a decline
in recoveries of about 1.2% across all rating levels. 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 under our analysis
indicates that the next passing level for the class E notes is one
notch lower than its current rating level, at 'BB- (sf)'. We have
therefore lowered to 'BB- (sf)' from 'BB (sf)' our rating on the
class E notes."

S&P said, "In our view, the portfolio is granular in nature, and
well-diversified across obligors, industries, and asset
characteristics when compared with other CLO transactions we have
rated recently. Therefore, we have not performed any additional
scenario analysis.

"The class F notes' current BDR cushion is -3.02%. Based on the
portfolio's actual characteristics and additional overlaying
factors, including our long-term corporate default rates and the
class F notes' credit enhancement, this class is able to sustain a
steady-state scenario, in accordance with our criteria." S&P's
analysis further reflects several factors, including:

-- The class F notes' available credit enhancement is in the same
range as that of other CLOs we have rated and that have recently
been issued in Europe.

-- S&P's model-generated portfolio default risk is at the 'B-'
rating level at 26.07% (for a portfolio with a weighted-average
life of 5.09 years) versus 15.78% if it was to consider a long-term
sustainable default rate of 3.1% for 5.09 years.

-- Whether the tranche is vulnerable to nonpayment in the near
future.

-- If there is a one-in-two chance for this note to default.

-- If S&P envisions this tranche to default in the next 12-18
months.

S&P said, "Following this analysis, we consider that the available
credit enhancement for the class F notes is commensurate with its
current 'B- (sf)' rating. We have therefore affirmed our 'B- (sf)'
rating on the class F notes.

"Counterparty, operational, and legal risks are adequately
mitigated in line with our criteria. For CLOs where the documented
downgrade provisions reflect our 2013 counterparty rating
framework, we have also analyzed the CLOs in accordance with our
current counterparty criteria. Following the application of our
structured finance sovereign risk criteria, we consider the
transaction's exposure to country risk to be limited at the
assigned ratings, as the exposure to individual sovereigns does not
exceed the diversification thresholds outlined in our criteria.

"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 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."




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

DISTRIBUIDORA INTERNACIONAL: S&P Cuts Issuer Credit Rating to CC
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on
Distribuidora Internacional de Alimentacion S.A. to 'CC' from 'CCC'
and its issue rating on its senior unsecured notes to 'C' from
'CC'. S&P's '6' recovery rating on the notes remains unchanged.

The downgrade reflects the likelihood that it may see the
transaction as tantamount to a default.

On Aug. 10, 2020, DIA's main shareholder LetterOne, via its
subsidiary DEA Finance, announced a cash tender offer for DIA's
EUR300 million 1% senior unsecured notes due in April 2021 and
EUR300 million 0.875% notes due in April 2023, for up to EUR225
million each. LetterOne's offer for the existing noteholders of the
2021 notes is EUR913.50-EUR948.50 per EUR1,000 in aggregate
principal amount, with a EUR10 early tender premium. The offer
price for the 2023 notes is EUR603.6-EUR703.6 per EUR1,000, with a
EUR30 early tender premium. The offer runs until Sept. 4, 2020, and
is subject to terms and conditions under the tender offer
memorandum, including the tendering of at least EUR300 million of
the EUR600 million aggregate amount due in 2021 and 2023.

S&P said, "We are likely to view the current bond exchange offer as
distressed because it is clearly below the par value, and
bondholders may accept less than the original promise because of
the risk that DIA will not fulfill its original obligations. As per
our methodology, if a related party offers to buy the obligor's
debt from market investors at below par, we would view it in the
same light as if the obligor made the same offer in a debt
restructuring." It is irrelevant that the debt would remain
outstanding, held by the related party, because the investors
participating in the transaction receive less than the original
value.

S&P views this transaction as likely part of an ongoing
restructuring.

S&P said, "In our view, the bond tender offer is further
confirmation of LetterOne's support to DIA. Although we do not know
LetterOne's intentions after acquiring the notes, we note that its
ownership of the majority of the notes would facilitate
negotiations in the context of a potential broader restructuring of
the same bonds. Given the sizable debt level and imminent debt
maturities, we view DIA as likely to continue to pursue a broader
restructuring of the same bond liabilities over the next few
months."

As of July 2020, DIA's capital structure comprises total gross debt
of EUR1.7 billion, including a EUR727 million syndicated loan
facility, a EUR271 million super senior secured facility, and
EUR600 million of senior unsecured notes, the subject of the
current tender offer. DIA's liquidity also includes a cash balance
of EUR420 million and undrawn bank facilities totaling EUR15
million.

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

-- Health and safety

S&P said, "The negative outlook reflects our expectation that we
will lower our issuer credit rating on DIA to 'SD' and our issue
rating on its 2021 and 2023 notes to 'D' once the bond tender offer
transaction closes. Following the transaction, we will re-evaluate
the ratings on the company in light of the company's resulting
capital structure, any further restructuring plans the company may
decide to undertake, and the company's operating performance."


OBRASCON HUARTE: Moody's Cuts CFR to Caa2; Alters Outlook to Neg.
-----------------------------------------------------------------
Moody's Investors Service downgraded to Caa2 from Caa1 the
corporate family rating and to Caa2-PD from Caa1-PD the probability
of default rating of Spanish construction company Obrascon Huarte
Lain S.A. Moody's further downgraded to Caa3 from Caa1 the
instrument ratings on the group's senior unsecured notes due March
2022 and March 2023. The outlook has been changed to negative from
stable.

"The downgrade was driven by OHL's weakened operating performance
in the first half of 2020, which was significantly impacted by the
coronavirus pandemic in some regions and prompted an over EUR200
million cash burn during this period. The rating action also
reflects that planned asset disposals and collection of certain
receivables will likely be delayed, which are key to fund
additional significant cash needs over the next few quarters,
prompting a contraction of OHL's liquidity profile and increasing
refinancing risks", says Goetz Grossmann, a Moody's Vice President
- Senior Analyst and lead analyst for OHL. "Furthermore, OHL's
rating is constrained by its highly leveraged capital structure."

RATINGS RATIONALE

The downgrade to Caa2 follows OHL's results for the first half of
2020 (H1 2020), which were adversely affected by a
coronavirus-driven slowdown in construction activity, especially in
Spain and Latin America. While reported group EBITDA of around
EUR20 million decreased only slightly year-over-year (EUR23 million
in H1 2019), the ongoing significant cash consumption of EUR206
million and likely delay in planned asset disposals has caused a
deterioration in Moody's liquidity assessment for the group. OHL's
newly secured EUR140 million syndicated bank loan, which is backed
by the Spanish government and currently utilized by EUR70 million,
will help it bridge the delayed disposal of its two main
development projects Old War Office and Canalejas until mid-2021,
however amid a more challenging market environment and increased
execution risks.

In light of a further diminished cash position of EUR352 million at
the end of June 2020 (EUR555 million at year-end 2019), around half
of which Moody's estimates to be located in joint-ventures or
affiliates, hence, not readily available to the parent, Moody's now
considers OHL's liquidity as overall weak. This assessment also
takes into account that loans granted to Grupo Villar Mir S.A.U.
and Pacadar S.A. in an aggregate amount of EUR128 million, which
are due in September 2020, can likely not or only partially be
cashed in on time. Considering around EUR125 million of remaining
cash outflows for unprofitable legacy projects over the next six
quarters, OHL's free cash flow generation will remain highly
negative at least until 2022, leaving it increasingly reliant on a
timely execution of asset disposals. Although Moody's recognizes
that OHL could more than halve the cash consumption in its regular
construction business to EUR92 million in H1 2020 (EUR191 million
in H1 2019), after turning positive in Q2 2020, the rating agency
currently does not expect a return to positive cash generation in
the near term. This considers ongoing difficult market conditions
in some key regions of the group, including Spain, Peru, Colombia
or Chile, where activity remains depressed due to the coronavirus
pandemic, while prospects for a firm recovery remain uncertain at
this stage.

At the same time, OHL faces its two outstanding bonds of EUR323
million and EUR273 million maturing in March 2022 and March 2023,
respectively, implying increased refinancing pressure, including a
potential debt restructuring in the coming months or quarters, in
Moody's view, in light of OHL's highly leveraged capital
structure.

The downgrade of the ratings on the senior unsecured notes by two
notches to Caa3 from Caa1 reflects their junior ranking behind the
EUR140 million syndicated bank loan and trade payables in Moody's
loss-given-default (LGD) assessment, which would benefit from a
priority claim in a potential consensual restructuring scenario.

The rapid spread of the coronavirus outbreak, deteriorating global
economic outlook, low oil prices and high asset price volatility
have created an unprecedented credit shock across a range of
sectors and regions. The action reflects the impact on OHL of the
breadth and severity of the shock, and the broad deterioration in
credit quality it has triggered, given its exposure to regions
strongly affected by the crisis. This has left it vulnerable to
delays in certain projects due to safety related restrictions, a
slowdown in tender activity and the general sensitivity to consumer
demand and sentiment.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

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

OUTLOOK

The negative outlook indicates imminent downgrade risk if OHL was
unable to fund its sizeable cash needs over the next 12-18 months,
due to either a higher cash consumption in its regular construction
activities, the inability to collect certain receivables on time or
a significant further delay in asset disposals or at materially
distressed values. A downgrade could be further triggered by a
possible restructuring of OHL's capital structure, which may result
in a default under Moody's definitions, including a potential
distressed exchange of the bonds which are currently trading far
below par.

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

OHL's ratings could be further lowered if the group failed to
maintain sufficient liquidity to help fund its upcoming sizeable
cash needs over 2020-2021. An increased likelihood of a default or
reduced recovery expectations for lenders could also lead to a
downgrade.

The ratings could be upgraded if OHL could steadily improve its
operating performance, resulting in improving cash flow generation
and enabling a timely disposal of non-core assets, helping to
strengthen its liquidity and materially reduce its very high
leverage. Positive rating pressure would also require OHL to
successfully refinance its debt maturities in a timely manner,
without creating any losses to its creditors.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Construction
Industry published in March 2017.

COMPANY PROFILE

Headquartered in Madrid, OHL is one of Spain's leading construction
groups. The group's activities include (1) its core engineering and
construction business (including industrial and services
divisions), and (2) concessions development in identified core
markets in Europe, North America and Latin America. In the 12
months ended June 30, 2020, OHL reported sales of around EUR2.9
billion and EUR62 million of EBITDA.



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

CNN MONEY: Files for Bankruptcy, Halts Operations
-------------------------------------------------
Silke Koltrowitz at Reuters reports that CNN Money Switzerland
(CNNMS) will cease operations and file for bankruptcy after the
coronavirus pandemic hit revenues, the Swiss business media company
said on Aug. 17.

According to Reuters, CNNMS said in a statement while audience
figures for the company's audiovisual programs rose sharply over
the past six months, revenues contracted as business partners hit
by the crisis cancelled or postponed contracts.

CNNMS said its board of directors came to the conclusion that the
uncertainty surrounding the economy and the future of the Swiss
media market did not point to "a sustainable profitability
solution" for the channel's activities, Reuters notes.

CNNMS, as cited by Reuters, said the probation commissioner will
preside over the liquidation of the company.

Launched in January 2018, CNNMS is managed by a privately owned
Swiss media company and has 25 employees, Reuters discloses.


UPC HOLDING: Moody's Downgrades CFR to B1, Outlook Stable
---------------------------------------------------------
Moody's Investors Service downgraded UPC Holding B.V.'s (UPC or the
company) corporate family rating (CFR) to B1 from Ba3 and
probability of default rating (PDR) to B1-PD from Ba3-PD.
Concurrently, Moody's has downgraded the instrument ratings on the
senior secured credit facilities issued by UPC Financing
Partnership and UPC Broadband Holding BV and the senior secured
notes issued by UPCB Finance IV Limited and UPCB Finance VII
Limited to B1 from Ba3. Moody's has also downgraded the instrument
rating on the senior notes issued by UPC Holding B.V. to B3 from
B2. Finally Moody's has also assigned a B1 instrument rating to the
new CHF1,610 million (equivalent) Term Loan B-1 due 2029 to be
raised by NewCo I B.V. and NewCo Financing Partnership and EUR213
million revolving credit facility due 2026 to be raised by NewCo I
B.V. and NewCo Financing Partnership, both subsidiaries of UPC
Holding B.V., and to the new CHF1,616 million (equivalent) Term
Loan B-2 due 2029 to be raised by UPC Financing Partnership and UPC
Broadband Holding BV. The outlook on the ratings has been changed
to stable from negative.

The rating action follows the announcement by Liberty Global plc
(Ba3 stable) on August 12, 2020 of the launch of a tender offer to
acquire the shares of Sunrise Communications Group AG.
Headquartered in Zurich, Switzerland, Sunrise is the second-largest
integrated telecom operator in Switzerland with reported revenues
of CHF1.9 billion and adjusted EBITDA (as reported by the company
before share-based payments and non-recurring events pre-IFRS16) of
CHF624 million in 2019.

Liberty Global plans to fund the transaction through a combination
of approximately CHF3.5 billion of cash from its balance sheet and
approximately CHF3.2 billion of financing, of which CHF1.61 billion
equivalent will be raised through a Term Loan B-1 to refinance
existing indebtedness of Sunrise. The Sunrise credit pool will also
have access to a new EUR213 million revolving credit facility which
will be undrawn at closing. The CHF 1.61 billion equivalent Term
Loan B-2 will be used to partly fund the acquisition of Sunrise and
will be drawn proportionately to the percentage of shares acquired
by Liberty Global in Sunrise.

Upon becoming a wholly-owned subsidiary of Liberty Global, assuming
an initial minimum 90% shareholding threshold is reached, Sunrise
will become part of the UPC credit pool. At that point the Sunrise
term loan and revolving credit facility will be converted into an
additional facility under the UPC senior facilities agreement by
upsizing the term loan B-2 and will benefit from the same guarantee
and security package as the existing UPC senior secured credit
facilities.

RATINGS RATIONALE

The downgrade of UPC's CFR to B1 reflects the fact that although
the acquisition of Sunrise will result in a de-leveraging of the
combined group compared to UPC stand-alone, adjusted gross leverage
will remain high and not commensurate with a Ba3 rating. Indeed,
pro forma for the acquisition of Sunrise and assuming 100%
ownership, UPC's adjusted leverage was 5.9x as of the end of 2019
compared to 6.5x as of Q1 2020 prior to the transaction. The rating
action also reflects Moody's expectation for limited de-leveraging
going forward based on the stated financial policy set by Liberty
Global. Targeted leverage (as reported by the company including
vendor financing and leases) for the combined group will be 5.0x in
line with the pro forma leverage as reported by the company at
4.84x as of the last twelve months (LTM) to Q1 2020. The key
difference between the company's 5.0x reported leverage and Moody's
5.9x adjusted leverage lies in the treatment of non-cash related
party fees and share-based payments, among others.

Prior to this transaction, UPC's CFR at Ba3 with a negative outlook
was weakly positioned within the rating category. However, Moody's
acknowledged that Liberty Global plc, the parent of UPC, benefitted
from a large cash balance following the sale of its German and
certain Central and Eastern European assets in 2019. Although it
was not clear what the parent intended to do with the remaining
proceeds, the rating and outlook reflected the possibility for
Liberty Global plc to apply part of the cash balance to
significantly de-leverage UPC, its 100% owned asset. While Liberty
Global plc will contribute significant equity for the acquisition
of Sunrise, Moody's considers that the reduction in leverage is not
sufficient to maintain the Ba3 rating and no further equity
injections to support further de-leveraging are expected at this
stage.

On the positive side, pro forma for the acquisition, UPC will
significantly increase its scale to approximately CHF3.5 billion of
combined revenue from CHF1.7 billion on a standalone basis as of
2019, and become the clear #2 telecom operator in Switzerland with
significant market share in mobile, broadband and pay TV services.
Additionally, with the combination of UPC's fixed assets and
Sunrise's mobile assets, the combined group will become
Switzerland's only other fully integrated telecom operator
alongside Swisscom AG (A2 stable). The two companies will be able
to better align their assets to more effectively compete in a
convergent telecom market without having to individually build
operations each company lacks individually. While UPC will be able
to use Sunrise's extensive mobile network, UPC will provide fibre
backhaul capacity for Sunrise's mobile base stations, which is
crucial to deliver 5G mobile services.

The combined group will generate significant synergies from the
integration of UPC and Sunrise. Liberty Global plc estimates that
cost and capital expenditure savings will amount to approximately
CHF229 million, the bulk of which Moody's believe will be realized
in the first three years. Cost and capital expenditure savings will
come from the sharing of existing infrastructure to provide
services for each entity's customers at lower cost compared to on a
standalone/wholesale basis, the migration of UPC's mobile traffic
to Sunrise's network, and the reduction of general and
administration costs. Additionally, there is significant potential
to realize revenue synergies through the cross-selling of fixed and
mobile services to the existing 5.2 million video, broadband and
mobile subscribers. Notwithstanding the joint venture's strong
industrial logic, there are still some execution risks. While
Moody's positively notes Sunrise's track record of revenue growth
driven by positive net adds across mobile, broadband and pay TV,
UPC has been facing significant headwinds in the context of
increasing competition in the Swiss telecom market. In the first
six months of 2020, UPC experienced a decline of 3.1% for rebased
revenue and 7.9% for rebased EBITDA. Moody's does not forecast any
stabilization before 2022.

The combined group will benefit from an adequate liquidity position
supported by the existing EUR500 million revolving credit facility
at UPC and the new EUR213 million revolving credit facility at
Sunrise, both of which are undrawn at the closing of the
transaction. While Moody's forecasts that the combined group will
generate positive free cash flow before dividends supported by
stable capital expenditures thanks to the recent upgrade of UPC's
cable network and the realization of synergies, the rating agency
assumes that excess cash will be used for shareholder distributions
in order for the combined group to maintain its leverage at around
5.0x as reported by the company.

Whilst environmental and social risks are not meaningful for this
rating action, Moody's notes that UPC's rating is constrained by
the financial policy set up by Liberty Global plc to maintain a
high leverage at around 5.0x (as reported by the company) with
increasing shareholder distributions as the combined group delivers
higher EBITDA and excess cash flows.

UPC's B1-PD PDR is at the same level as the CFR, reflecting the
company's expected recovery rate of 50% typically assumed for a
capital structure that consists of a mix of bank and bond debt. The
claims at the operating subsidiaries, including trade payables,
pension obligations and lease rejection claims, have been ranked
highest in order of priority. The senior secured bank credit
facilities are ranked second in priority of claims, pari passu with
the senior secured notes issued by certain trust-owned
special-purpose entities that were created for the primary purpose
of facilitating the offering of the notes. The second-ranking
position of the senior secured debt reflects the fact that it is
secured only over the shares in the obligors held by any member of
the senior secured group or any obligor, and over intercompany
loans made by the obligors. The guarantor coverage test for the
senior secured debt is on a consolidated basis, and so, the
guarantees are from the borrower group (including only holding
companies) representing a minimum of 80% of EBITDA on a
consolidated basis. The senior secured debt instruments have been
assigned a B1 rating. The senior unsecured notes issued by UPC,
rated B3, are ranked last in priority of claims, reflecting the
fact that they are structurally subordinated to the senior secured
debt. The new Term Loan B-2 will be made available as an additional
facility under UPC's existing credit agreement. While the Term Loan
B-1 will initially be part of the Sunrise restricted group, Moody's
assumes that Liberty Global will achieve 100% ownership of the
target, at which point it will merge the Sunrise credit pool into
that of UPC and the Term Loan B-1 and the new EUR213 million
revolving credit facility will be converted into UPC credit
facilities ranking pari passu with UPC's existing senior secured
credit facilities.

The stable outlook reflects (1) Moody's expectation that UPC's
pressure on revenues and EBITDA will be mitigated by growth at
Sunrise over the next two years, (2) the company will maintain
adjusted leverage at or below 6.0x, and (3) Liberty Global plc will
achieve 100% ownership of Sunrise so that it can merge the Sunrise
credit pool into UPC. The rating agency notes however that the
transaction is subject to execution risk due to the high threshold
required in order to rapidly merge the credit pools. If Liberty
Global plc will not be able to achieve the threshold and the
distinct credit pools were to remain, Moody's may revisit the
rating positioning of the instrument ratings in order to reflect
the respective leverage of the credit pools and the relative
seniority/subordination of the different instruments. This could
result in potential downward pressure on the UPC credit pool
instrument ratings and potential upward pressure on the Sunrise
credit pool instrument ratings.

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

Upward pressure on the rating could develop over time if (1) UPC's
operating performance improves materially with the timely
realization of synergies and the eventual upside from convergent
opportunities leading to sustainable revenue and EBITDA growth; (2)
its adjusted Gross Debt/EBITDA ratio (as calculated by Moody's)
falls below 5.0x on a sustained basis; and the company maintains a
strong cash flow generation.

Downward ratings pressure could develop if (1) UPC's Moody's
adjusted Gross Debt/EBITDA ratio rose well above 6.0x on a
sustained basis; and/or (2) operating performance deteriorates
driven by increasing competition or problems in executing the
integration of Sunrise. Negative pressure could also arise if
liquidity were to deteriorate materially.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

UPC is a European cable company that operates principally in
Switzerland, but also in Poland and Slovakia.



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

CONTOURGLOBAL PLC: Fitch Affirms BB- LT IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed ContourGlobal Plc's Long-Term Issuer
Default Rating (IDR) at 'BB-' with a Stable Outlook. Fitch has also
affirmed ContourGlobal Power Holdings S.A.'s senior secured notes
due 2023 and 2025 at 'BB' and affirmed the super senior revolver at
'BB+'. CGPH is a financing subsidiary of CGPLC and the ratings of
its debt obligations primarily benefit from a guarantee from
CGPLC.

The rating affirmation reflects predictable cash flows of CGPLC's
portfolio of generating assets, supported by long-term contracts,
regulated capacity or regulated cost-of service payments. The
assets have an average remaining contracted/regulated life of about
10 years with limited exposure to changes in electricity demand and
with little negative impact of COVID-19 on operations and financial
results.

The ratings also reflect re-contracting risk as two large power
purchase agreements (PPAs) will expire in 2021 and 2024, which
Fitch assumes will lead to lower distributions from these two
projects.

KEY RATING DRIVERS

Expanding, More Diversified Asset Base: CGPLC continues to increase
scale and diversification of its asset portfolio by geography, fuel
type and counterparty concentration risk through acquisitions
largely financed with non-recourse project debt. LTM 1H20 EBITDA
split (pro forma for the acquisition of two gas-fired combined heat
and power plants in Mexico closed in November 2019) was 51% Europe,
38% LatAm and 11% Africa. EBITDA split by technology was 44%
renewables, 39% thermal and 18% high efficiency cogeneration.

Relaxation of Rating Guidelines: Fitch expects CGPLC to take a
disciplined approach to asset selection and acquisitions, focusing
on renewable and low-carbon thermal assets with good cash flow
predictability, while maintaining its holdco funds from operations
(FFO) leverage below its negative rating sensitivity of 4.5x. Fitch
has relaxed the negative sensitivity from 4x allowing for more debt
capacity at the current rating due to increasing portfolio
diversification and CGPLC's decision to no longer proceed with the
lignite-fired power plant project in Kosovo. Fitch viewed this
project as a credit constraint due to its large size, long
construction period, construction-related risks, and fairly high
counterparty risk.

Deconsolidated Approach: Fitch rates CGPLC using a deconsolidated
approach. The main credit metric is holdco-only FFO leverage
calculated as the recourse debt (excluding project finance debt at
subsidiaries) divided by holdco-only FFO before interest paid
(dividends from subsidiaries (excluding one-off transactions, such
as the VAT refund in Mexican assets, and proceeds from sell downs
of minority stakes in projects) less holdco operating expenses and
taxes).

Earnings Supported by Long-Term Contracts: CGPLC's predictable
earnings are underpinned by long-term contracts, regulated capacity
or regulated cost-of service payments, which account for more than
90% of total revenue from projects. The weighted average remaining
contracted/regulated life was about 10 years as of end-June 2020.
The contracts are typically with state-owned or state-supported
utilities or large investment grade companies. The average credit
rating of counterparties is 'BBB-'. In addition, CGPLC uses
political risk insurance in sub-investment grade countries although
its coverage has not yet been tested.

Long-Term Re-contracting Risks: Two large PPAs will expire over its
five-year rating horizon. This includes Maritsa's PPA in Bulgaria
(representing 13% of pro-forma proportionate adjusted EBITDA for
2019) expiring in 2024 and Arrubal's PPA in Spain (9% of EBITDA) in
2021. Fitch conservatively assumes substantially lower EBITDA of
these two projects after the expiration of the existing PPAs,
particularly for Arrubal given the Spanish plant's weaker market
position and transformation of the Spanish electricity market.

No Impact from Parent Linkage: CGPLC is 71%-owned by ContourGlobal
L.P., whose ultimate parent is Reservoir Capital Group, a privately
held investment firm with an opportunistic hybrid investment
approach. Fitch assesses the legal and operational links between
CGPLC and Reservoir overall as weak based on its Parent and
Subsidiary Rating Linkage Criteria due to, among others, the
absence of guarantees, financial covenants at CGPLC level and a
separate treasury. As a consequence, Fitch rates CGPLC on a
standalone basis.

DERIVATION SUMMARY

Fitch rates CGPLC based on a deconsolidated approach as the
company's operating assets are largely financed with non-recourse
project debt. CGPLC is comparable with Terraform Power Operating
LLC (TERPO: BB-/Stable), Nextera Energy Partners, L.P. (NEP,
BB+/Stable) and Atlantica Sustainable Infrastructure Plc
(Atlantica, previously Atlantica Yield plc, BB/Stable) in operating
scale.

Fitch views TERPO's and NEP's US-dominated portfolio of renewable
assets as superior to those of CGPLC, which are roughly equally
split between renewables and thermal generation, and carry
re-contracting risk and political and regulatory risks in emerging
markets. Atlantica's portfolio of assets is also superior to
CGPLC's in its view, given the focus on renewables, largely solar
(about 68% of power generation capacity), longer remaining
contracted life (18 years vs. 10 years) and better geographic split
(largely North America and Europe). This is partly mitigated by the
larger size of CGPLC portfolio than Atlantica's.

CGPLC's holdco leverage metric is stronger than that of TERPO but
weaker than Atlantica's.

KEY ASSUMPTIONS

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

  - Equity investments of about USD660 million in 2020-2013,
largely for new assets (holdco's share in acquisition funding)

  - Substantially lower EBITDA of the Arrubal gas-fired power plant
in Spain following the expiration of existing PPA in 2021

  - Lower EBITDA of the Maritsa lignite-fired power plant in
Bulgaria following the expiration of existing PPA in 2024

  - Holdco's dividends rising 10% per year in 2020-2022 in line
with management's dividend policy

  - Share buy-back programme for up to GBP30 million in line with
company announcement

RATING SENSITIVITIES

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

  - Holdco-only FFO leverage below 3.5x on a sustained basis and
FFO interest cover higher than 5x

  - Materially reduced counterparty concentration risks such that
EBITDA from any single off-taker is consistently less than 15%

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

  - Holdco-only FFO leverage above 4.5x on a sustained basis and
FFO interest cover lower than 3x, for example driven by
opportunistic recourse debt financing

  - Major PPAs experiencing unexpected and material price reduction
or termination

  - More than 40% of total revenue becoming uncontracted

  - A change in strategy to invest in more speculative,
non-contracted assets or material decline in cash flow from
contracted power generation assets

  - Future projects experiencing material cost overruns and delays,
not being prudently financed and/or encountering substantial
political interference, causing financial distress at the project
level and/or at the parent level so that CGPLC breaches its rating
sensitivities on a sustained basis

LIQUIDITY AND DEBT STRUCTURE

Sufficient Liquidity: CGPLC has solid liquidity at holdco level
with no debt refinancing until 2023. Project-finance debt
maturities at operating subsidiaries, comprising the vast majority
of consolidated debt, are evenly balanced due to debt amortisation
with no substantial refinancing risk in 2020-2021.

Holdco level cash was USD188 million at end-June 2020 together with
an undrawn revolving credit facility of EUR75 million expiring in
November 2021. The holdco does not have debt maturities until
August 2023 when EUR450 million bonds are due. CGPLC has sufficient
liquidity at the holdco level to fund its planned equity
investments until at least 2021 based on its projections.

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).

DW SPORTS: Frasers Group Bids to Acquire Business for GBP30MM
-------------------------------------------------------------
According to Business Sale, Mike Ashley's Frasers Group has
reportedly bid in excess of GBP30 million to acquire DW Sports from
administrators.

Dave Whelan's DW Sports, which operated 73 gyms and 75 stores and
employs over 1,700 people, went into administration earlier this
month, Business Sale relates.

DW Sports website ceased trading with immediate effect when it
entered administration, while 25 stores had already been closed
down, with the remaining 50 entering closing-down sales, Business
Sale recounts.  The company, as cited by Business Sale, said it
hoped to save as many gyms as possible but that it was "inevitable"
that some would close down.

Administrators BDO are thought to have been seeking a sale for
around GBP20 million and it had been speculated that the Whelan
family could look to buy back the business, less its liabilities,
Business Sale discloses.  BDO says it has "received a number of
serious and credible offers", Business Sale notes.

Prior to entering administration, DW Sports' most recent available
accounts, for the year ended March 31 2019, show turnover of
GBP222.2 million, with its fitness clubs generating GBP137.9
million in revenue and retail stores GBP84.3 million, according to
Business Sale.

Its fixed assets stood at GBP146.9 million, current assets at
GBP43.6 million, with net current liabilities of GBP58.7 million
and net assets of around GBP55 million, Business Sale states.


FINABLR: Founder Steps Down as Joint Chairman Amid HMRC Crackdown
-----------------------------------------------------------------
Michael O'Dwyer at The Telegraph reports that the founder of
Finablr has resigned as joint chairman of the payments company as
UK tax officials move to shut down parts of the ailing business.

According to The Telegraph, BR Shetty, the Indian former
billionaire, stepped down from the board of the company that is
battling for survival after the discovery of more than US$1 billion
of undisclosed debt and a hit to its currency exchange business
during the pandemic.

Finablr, which is based in the United Arab Emirates, said on Aug.
17 it had been notified by HMRC that the business registration of
two of its subsidiary businesses could be suspended, The Telegraph
relates.

Tax officials notified the company that the registration of its
Xpress Money Services Limited would be suspended and also proposed
halting the registration of another subsidiary, UAE Exchange UK
Limited, The Telegraph discloses.

Finablr, as cited by The Telegraph, said: "Suspension of business
registration would result in cessation of business by the relevant
entities unless and until the suspension is lifted.  The company
intends to work with HMRC to attempt to restore the
registrations."

The London-listed company warned in March that it was in danger of
going bust, The Telegraph recounts.  It called in US law firm
Skadden last month to pursue potential claims backed by litigation
funders to bankroll any legal action, The Telegraph relays.

More than 1,300 jobs were lost when its Travelex business was
rescued through a pre-pack administration earlier this month, The
Telegraph notes.

Mr. Shetty claimed in April that his lawyers had found evidence of
"serious fraud and wrongdoing" at Finablr, The Telegraph discloses.


EY resigned as Finablr's auditor in March after disagreements over
corporate governance at the firm, The Telegraph recounts.


STONEGATE PUB: Fitch Assigns B- LT IDR, Outlook Stable
------------------------------------------------------
Fitch Ratings has assigned Stonegate Pub Company Limited
(Stonegate) a final Long-Term Issuer Default Rating (IDR) of 'B-'
with a Stable Outlook. In addition, Fitch has assigned a final
senior secured rating of 'B+'/'RR2' to senior secured instruments
issued by Stonegate Pub Company Financing 2019 PLC, and a final
second-lien rating 'CCC'/'RR6' to the subordinated debt issued by
Stonegate Pub Company Bidco Limited.

The assignment of the final instrument ratings is in line with the
expected ratings (assigned in July 2020), given that the final
terms were consistent with the draft finance documentation.

Fitch expects the enlarged UK pub group Stonegate, following its
recent acquisition of the EI Group portfolio, to return to its
pro-forma run rate EBITDA by FY22 (end-September 2022)
post-pandemic. This, together with realised synergies, should
result in a lease-adjusted net debt/EBITDAR below 6.5x. As at July
2020, over 80% of the enlarged group's pubs were trading, but some
Stonegate's high-EBITDA pubs remain closed.

KEY RATING DRIVERS

Threat of Lockdowns: Fitch continues to assume no further national
lockdown of all UK pubs but, upon a potential second wave of
infections, Fitch expects the government to co-ordinate lockdowns
on a regional basis. Stonegate has a regionally diverse portfolio.
As part of its sensitivity analysis, compared with the rating case
described under Key Assumptions, Fitch decreased the number of the
pubs open per quarter by 10% for 1HFY21 and by 5% for 2HFY21, which
resulted in a 7% reduction in FY21 EBITDA. This would not prompt
rating action or adversely affect liquidity, which is reflected in
the Stable Outlook.

Sizeable Portfolio: The acquisition of the EI Group portfolio has
provided Stonegate with increased purchasing power and a pipeline
of EI Group's leased & tenanted (L&T) portfolio for selective
conversions to Stonegate or EI Group-managed formats, including the
latter's more profitable Craft Union. It will continue to invest in
pub formats and operational publicans to increase EBITDA per pub.
Its existing wet-led L&T portfolio will generate rent and wet
income as well as low yoy increases in profit. Similar to other UK
pub groups, Stonegate will continue to dispose of smaller less
profitable pubs, thereby improving the quality of the remaining
portfolio.

Operating under Coronavirus: Health and safety requirements will
result in reduced capacity across the different predominantly
wet-led pubs, some part-food brands, as well as sports club and
(most severely) late-night venues. Customer numbers will decrease
due to hesitation to visit pubs and weakened UK consumer sentiment.
A full recovery to pre-pandemic levels is not envisaged until 2022
at the earliest. A sustained decline in volumes in 2022 would put
ratings under pressure.

UK Government Support: As well as furlough and a business rates
holiday, according to the ratable value of each pub around 90% of
the group's L&T publicans are each eligible for GBP10,000-GBP25,000
government grants. Stonegate has also provided trade credit to aid
initial re-stocking. These forms of support have provided liquidity
to cover costs, including re-start-up costs and pay accrued rent.
Stonegate management reports that 83% of its L&T tenants received
these grants, which (as represented to Fitch) amount to these
publicans expected annual net income.

Different Operating Capacities: Fitch assumes that Stonegate's town
centre-focused managed brands like Be At One, Venues and Common
Room are severely constrained during July to September (4QFY20) and
will gradually open further in FY21. Other managed outlets operate
(July: 77% opened) at reduced capacity to yield 50%-70% of their
run-rate profits in 4QFY20, improving to 80%-90% by 4QFY21. Over
comparable periods, Fitch expects the suburban-located EI Group
portfolio (80% opened) to operate at slightly higher capacity (also
reaching 90% of pre-coronavirus EBITDA by 4QFY21).

FY20 EBITDA Halved: Compared with a pro-forma annualised EBITDA,
Fitch forecasts that the combined group's FY20 pro forma EBITDA
(1HFY20 assuming a six-month contribution from EI Group, and
minimal from 3QFY20) is around 50% lower, and FY21 EBITDA 30%
lower. This is before potential annualised synergies from the
combined group, of which around half are expected to have been
actioned by December 2020.

Visibility of Near-Term Forecasts: Management has provided limited
post-4 July 2020 trading information indicating L&T wet volumes at
around 85%-90% of pre-coronavirus levels. In the managed portfolio,
where Stonegate controls and assumes operating costs, 70% of
volumes translate into a 70% run-rate EBITDA for opened sites
(including the benefit of the business rates holiday until April
2021). In the L&T portfolio, 70%-80% of volumes translate into
70%-80% run-rate EBITDA for opened sites. Over the next 18-24
months, the combined group plans to realise GBP80 million
synergies.

Leveraged Capital Structure: Pro-forma, pre-coronavirus, the
combined group's annualised EBITDAR of GBP508 million relative to
drawn debt of GBP3.2 billion (at closing) points to
lease-adjusted/EBITDAR gross leverage of 8.0x (or 6.9x including
GBP80 million of synergies). For FY22 Fitch expects this metric to
be below 6.5x. Compared with other leveraged finance credits, the
enlarged group has positive free cash flow (FCF) post-maintenance
capex. However, with a Fitch-assumed 8% cost of debt under the
current refinancing, FY21 fixed charge coverage is tight at 1.4x
before improving to 1.7x in FY22. Management's focus is to run the
business "for cash" until trading conditions improve before
expansionary capex can be re-activated.

Diversified Wet-led Pub Formats: The enlarged group, primarily
wet-led, is diversified across the UK, with a 48% weighting in the
south. The diversification, with Stonegate weighted towards town
centre outlets while EI Group towards unbranded suburban pubs, many
of which are with outdoor facilities and closer to WFH workers,
aids the group's profile. The enlarged portfolio combines
Stonegate's 761 managed formats yielding an average EBITDAR of
GBP270k/pub versus EI Group's larger 3,988 L&T portfolio averaging
GBP70k/pub. Using pro-forma annualised EBITDA figures, the EI
Group/Stonegate profit split is approximately 60:40.

DERIVATION SUMMARY

As there is no Fitch navigator framework for UK pubs, Fitch rates
Stonegate under its global restaurants navigator framework,
acknowledging its predominantly wet-led operations and a
significantly higher proportion of freehold property ownership.

Compared with 'B' rating category peers in Fitch's EMEA credit
opinion portfolio, the acquisition of EI Group affords the group
size and the potential to maximise synergies, while constraining
the potential for further large M&A. Stonegate is not facing the
industry challenges seen in casual-dining peers. Stonegate's higher
leverage is partially mitigated by marginally stronger fixed charge
coverage and better financial and operational flexibility given its
freehold property, and greater FCF flexibility than peers'.

KEY ASSUMPTIONS

Pro-forma EBITDA (after rents and including projected synergies of
GBP80 million) of the enlarged group is GBP494 million for FY20.
Fitch's figures include 12 months of EI Group ownership (versus
actual six months). Fitch's base case does not see a return to
pro-forma EBITDA until FY22. At this point FCF profit visibility
should enable management to revert to its strategy of investing in
managed formats to grow EBITDA/pub. Fitch base case is 30% of
pro-forma enlarged group pre-synergies EBITDA in FY20 and 72% in
FY21.

For 4QFY20 and FY21, of the branded Stonegate formats, Fitch has
re-phased profit contributions from 76%-opened (as at July 2020)
outlets) and minimal profit from some high EBITDA/pub outlets to
reflect their 4QFY20 non-operation and social-distancing operating
conditions. Management intends to re-assess these formats for the
near-term. These formats were significant contributors to
Stonegate's EBITDA. The Stonegate portfolio is also weighted
towards city centre-based locations. Fitch base case is 61% of
pro-forma Stonegate pre-synergies EBITDA in FY21.

For 4QFY20 and FY21, of the E&I Group L&T portfolio, Fitch has
maintained the EBITDA/pub contribution but re-phased profitability
to reflect operating conditions. As at July 2020, 80% of the EI
Group estate was open. This income is a mixture of contractual rent
and proportionally higher net wet income related to volumes. These
outlets will have greater profit recovery given their outdoor and
non-city centre locations. Fitch base case is 77% of pro-forma E&I
Group pre-synergies EBITDA in FY21 and closer to 100% by 4QFY22.

Fitch does not assume another national lockdown of all UK pubs but,
upon a potential second wave of infections, Fitch expects the
government to co-ordinate lockdowns on a regional basis.

Tax rate at near-20% of profit.

Capex is a minimal maintenance level of GBP70 million in FY21,
thereafter increasing above GBP130 million per year.

Site disposals resuming from FY21 at GBP35 million per year. No
other disposals.

Benefit of negotiated working capital accruals (including deferral
of the group's third-party pub rents) in FY20, before reversing in
FY21.

Increase in revolving credit facility (RCF) to GBP250 million.
Capital injection from private equity owner of GBP50 million. No
external dividends.

RECOVERY ASSUMPTIONS

Its recovery analysis assumes that Stonegate would be liquidated
rather than restructured as a going concern in a default.

  -- Recoveries are based on the freehold value of the newly
consolidated group. Fitch's liquidation approach uses the September
2019 third-party valuations of the EI Group's freehold and long
leasehold assets, and the updated valuation of the Stonegate
portfolio. The former is based on the 'fair maintainable trade'
(FMT, or profitability) of the pubs, using relevant 8x to 12x
multiples. Fitch applied a 25% discount to the 2019 valuations
comparable to the stress experienced by industry peers during 2007
to 2011 on an EBITDA/pub basis, replicating the FMT component of
the valuation.

  -- The 25% discount applicable to the whole portfolio, in the
event of distress, also reflects the strong record of both groups
in disposing of freehold assets at close to or above book value.

  -- After deducting a standard 10% for administrative claims,
Fitch has assumed that the GBP250 million super-senior RCF would be
fully drawn in the event of default.

  -- Fitch's principal waterfall analysis generates a ranked
recovery for senior secured loans in the 'RR2' band, indicating a
'B+' instrument rating, two notches above the IDR. The waterfall
analysis output percentage on these metrics and assumptions is
90%.

  -- Given the structural subordination in the debt structure,
Fitch assigns a ranked recovery for the second-lien in the 'RR6'
band with 0% expected recoveries. The 'RR6' band indicates a 'CCC'
instrument rating, two notches below the IDR.

RATING SENSITIVITIES

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

  - FFO gross lease-adjusted leverage below 6.0x on a sustained
basis

  - FFO fixed charge coverage above 2.5x on a sustained basis

  - Full clean-down (repayment) of the RCF

  - FCF margin at 2%-5%

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

  - FFO gross lease-adjusted leverage above 7.0x beyond FY21

  - FFO fixed charge coverage trending towards 1.5x

  - Failure to deliver on management's envisaged asset disposals of
GBP75 million

  - Erosion of positive FCF margin

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).

LIQUIDITY AND DEBT STRUCTURE

Limited Liquidity: With low near-term prospects of the upsized RCF
(GBP250 million) being partially repaid, liquidity is limited after
the E&I Group whole business securitisation entity, Unique's,
ring-fenced cash balance is demarcated for its liquidity
assessment. Selective asset disposals will aid liquidity; Fitch's
rating case assumes 50% of management's guidance on disposal
receipts.

Scheduled amortising debt within the self-financing Unique
structure will rise in FY22 to GBP100 million a year from GBP60
million in FY21.

TATA STEEL: Says Bailout Talks with UK Government Ongoing
---------------------------------------------------------
Alan Tovey at The Telegraph reports that Tata Steel could still get
a state bailout with the country's biggest steelmaker continuing to
discuss potential support packages with the Government.

According to The Telegraph, the company--a subsidiary of Indian
conglomerate Tata, which also owns Jaguar Land Rover--has refuted
claims that it has abandoned talks about a bailout.

The Financial Times first reported that discussions about aid
through "Project Birch", the Government scheme to support companies
seen as structurally important to the UK economy, had ended, The
Telegraph relates.

However the story, which was widely followed up, has been dismissed
as "baseless" by one insider at Tata Steel, The Telegraph notes.
It employs about 8,000 staff in the UK, mostly in Port Talbot,
south Wales, The Telegraph discloses.

According to The Telegraph, the company said: "We remain in ongoing
and constructive talks with the UK Government on areas of potential
support.  As these discussions have not reached a conclusion, it
would be premature to comment on any options that may or may not be
under consideration.   

"In the meantime, we will not respond to speculative and inaccurate
media reports about the future of our operations in the UK or
elsewhere."

Tata Steel has been hit hard by the pandemic, The Telegraph states.
At one point it had 2,500 staff on furlough as stoppages in the
automotive and construction industries say demand for its products
collapse, The Telegraph notes.

Like many other steel companies, Tata Steel has a poor credit
rating which means it has not been able to tap the Bank of
England-backed Covid Corporate Financing Facility scheme, and other
state aid packages were not big enough to meet its needs, according
to The Telegraph.

Even before the coronavirus hit, the company was struggling,
reporting a GBP371 million pre-tax loss on revenues that were flat
at GBP2.4 billion in its most recent annual results, The Telegraph
says.  The previous year it posted a GBP222 million loss, The
Telegraph relays.


VICTORIA'S SECRET: UK Arm Owed GBP466MM Prior to Administration
---------------------------------------------------------------
Laura Onita at The Telegraph reports that Victoria's Secret's UK
arm sunk to a GBP100 million operating loss before it fell into
administration, with 200 creditors owed nearly half a billion
pounds.

The lingerie chain, famous for its fashion shows featuring
supermodel "angels", drafted in advisors at Deloitte in June to
oversee a so-called light touch administration, The Telegraph
recounts.

According to The Telegraph, for the 16 months to May, it recorded
an operating loss of GBP109 million, documents at Companies House
show, having been propped up by its American owner L Brands for
years.  It has 25 shops in the UK.

Deloitte said that claims with 208 unsecured creditors--typically
suppliers, landlords and the taxman--totalled GBP466 million, The
Telegraph discloses.  But there should be sufficient cash to pay
some of it back, although it did not say how much, The Telegraph
states.

High street stalwart Next has taken over Victoria's Secret business
in the UK after fending off competition from Marks & Spencer, The
Telegraph relays.

It secured an exclusivity agreement until the end of September
while it finalizes a deal, The Telegraph notes.

Next has not yet agreed which sites it will keep, if any, as it
tries to secure cheaper rents, The Telegraph states.

Victoria's Secret opened its first UK store in 2012, along with
others in Europe and South America.  Although it was instrumental
for provocative designs during its peak, it has been slow to adapt
beyond padded and push-up bras, according to The Telegraph.

It has been struggling in the UK before coronavirus, too, The
Telegraph states.  A combination of cautious spending by shoppers,
higher staff wages, business rates and rents have all led to its
demise, The Telegraph notes.

When the pandemic hit it was forced to shut losing almost three
months worth of sales, The Telegraph recounts.

Deloitte, as cited by The Telegraph, said it was still in talks
with one landlord after seeking rent free agreements since it
stepped in.

The UK division posted GBP49 million and GBP171 million operating
loss in 2018 and 2019 respectively, The Telegraph discloses.  Its
cash balance was GBP12 million at the end of May, The Telegraph
notes.



                           *********


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

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

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

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