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

                          E U R O P E

          Thursday, August 27, 2020, Vol. 21, No. 172

                           Headlines



B E L G I U M

SOLVAY SA: Moody's Rates New Hybrid Notes Ba1, Outlook Negative
SOLVAY SA: S&P Rates New Subordinated Hybrid Security BB+


G E R M A N Y

DEMIRE DEUTSCHE: S&P Alters Outlook to Negative & Affirms BB ICR
[*] GERMANY: Agrees to Extend Corporate Insolvency Moratorium


I R E L A N D

CLOTARF PARK: Moody's Downgrades Class E Notes Rating to B2
MALLINCKRODT PLC: Management Says Going Concern Doubt Exists


I T A L Y

NATUZZI SPA: KPMG S.p.A. Raises Substantial Going Concern Doubt


L U X E M B O U R G

INTELSAT SA: Discloses Substantial Going Concern Doubt


R U S S I A

SLAVYANSKI CREDIT: Bank of Russia Cancels Banking License


S P A I N

MBS BANCAJA 2: Fitch Affirms CCCsf Rating on Class F Debt


U N I T E D   K I N G D O M

CARNIVAL CORP: Moody's Lowers CFR to B1, Outlook Negative
COLLISTER & GLOVER: Cash Flow Problems Prompt Administration
INTERNATIONAL GAME: Needs Waivers to Remain as Going Concern
LONDON CAPITAL: Watchdog Criticized Over Collapse Report Delay
MCL CREATE: Enters Administration

NOMAD FOODS: Fitch Assigns BB LT IDR, Outlook Stable
SEQUENCE FINANCIAL: Enters Administration, Halts Trading
SIGNATURE LIVING: Secures Deal to Protect All Areas of Business

                           - - - - -


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B E L G I U M
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SOLVAY SA: Moody's Rates New Hybrid Notes Ba1, Outlook Negative
---------------------------------------------------------------
Moody's Investors Service assigned a Ba1 long-term rating to the
proposed issuance of Undated Deeply Subordinated Fixed to Reset
Rate Bonds (hybrid) of Solvay SA (Solvay, Baa2 negative). The size
and completion of the hybrid remain subject to market conditions.
The proceeds of the issuance will be used for general corporate
purposes including the possible repayment of other subordinated
indebtedness, notably the EUR500 million hybrid bond with first
call date in June 2021 issued by Solvay Finance. The outlook is
negative.

RATINGS RATIONALE

The hybrid rating of Ba1 is two notches lower than Solvay's Baa2
senior unsecured rating. Further, in April 2020 Moody's changed the
outlook on Solvay's senior unsecured rating from stable to
negative, which also applies to the hybrid rating. In assigning the
hybrid rating Moody's has taken into consideration the (1) deeply
subordinated position of the proposed hybrid relative to existing
senior unsecured backed obligations of Solvay SA; (2) perpetual
maturity; (3) option to defer coupons on a cumulative basis. There
are no events of default. Consequently, the hybrid will qualify for
"basket C" treatment and will thus get a 50% equity credit on the
final size of the issued hybrid.

The Ba1 hybrid rating is the same as for existing outstanding
hybrids issued by Solvay SA in 2018 and Finance in 2013 and 2015.

RATIONALE FOR THE NEGATIVE OUTLOOK

The outlook on the proposed hybrid is negative in line with the
outlook on Solvay SA's rating. The negative outlook reflects
Moody's expectation that the company's leverage will remain above
its expectations for the next 18 months. For ratings to be
maintained at the current level Moody's expects leverage to
sustainably move below 3.0x in the next 18-24 months and RCF/net
debt in the high teens in percentage terms.

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

As the hybrid is positioned relative to another rating of Solvay,
either (i) a change in the senior unsecured rating of Solvay, or
(ii) a re-evaluation of its relative notching, could impact the
hybrid rating.

Moody's could upgrade Solvay's rating following a material and
sustained improvement in profitability with EBITDA margins
stabilising around 20%; a reduction in leverage with total debt to
EBITDA permanently falling below 2.5 times and RCF to net debt
rising above 25%.

Downward pressure can arise a prolonged deviation in the group's
future operating performance relative to its current expectations
and/or failure to extend the recent recovery in credit metrics and
position total debt to EBITDA below 3 times (assuming normalised
cash balances) and RCF to net debt into the high teens in
percentage terms.

The principal methodology used in this rating was Chemical Industry
published in March 2019.

Based in Brussels, Solvay SA is one of the leading European
chemicals groups with significant size, a broad product portfolio,
a well geographically diversified revenue base, as well as leading
global market positions in most of the segments in which it
operates. For the fiscal year ended December 31, 2019, Solvay
reported consolidated net sales of EUR10.2 billion (EUR10.3 billion
in 2018) and underlying EBITDA of EUR2.11 billion (up from EUR1.87
billion in 2018) from continuing operations, equivalent to a margin
of 20.6% (18.22% in 2018).

SOLVAY SA: S&P Rates New Subordinated Hybrid Security BB+
---------------------------------------------------------
S&P Global Ratings assigned its 'BB+' long-term issue rating to the
euro-denominated junior subordinated hybrid security to be issued
by Belgium-based chemical company Solvay S.A. (BBB/Stable/A-2). The
transaction remains subject to market conditions. The rating is
subject to our satisfactory review of final documentation.

S&P said, "We classify the proposed security as having intermediate
equity content from issuance until its first reset date, because
the notes' subordination, permanence, and optional deferability
during this period will meet the conditions under our hybrid
capital criteria. This is based on our assumption that Solvay will
use the proceeds to redeem its EUR500 million outstanding perpetual
deeply subordinated notes issued in 2015.

"At the closing of the proposed hybrid transaction, we will revise
the equity content of Solvay's existing EUR500 million hybrid
callable in June 2021 to minimal. Its redemption and replacement
with the proposed hybrids does not affect our view of Solvay's
other outstanding perpetual notes issued in 2015 and 2018, which we
assess as having intermediate equity content."

The transaction has a neutral effect on Solvay's capitalization
ratio, which stood at 14% at end-2019.

S&P expects Solvay will maintain a conservative financial policy,
keep its remaining hybrids as a permanent part of its capital
structure, and retain sufficient equity buffers to maintain its
credit profile.

As per S&P's methodology, the two-notch differential reflects:

-- A one-notch deduction for subordination because the rating on
Solvay S.A. is above 'BBB-'; and

-- An additional one-notch deduction to reflect payment
flexibility--the deferral of interest is optional.

S&P said, "The number of downward notches applied to the proposed
securities reflects our view that the issuer is relatively unlikely
to defer interest. Should our view change, we may deduct additional
notches to derive the issue rating.

"Furthermore, to capture our view of the intermediate equity
content of the proposed securities, we allocate 50% of the related
payments on these securities as a fixed charge and 50% as
equivalent to a common dividend, in line with our hybrid capital
criteria. The 50% treatment of principal and accrued interest also
applies to our adjustment of debt. Furthermore, we will likely
treat the cash hybrid issuance proceeds as surplus cash for our
debt metric calculations until they are utilized for the redemption
of the hybrid security callable in May 2021."

Key factors in S&P's assessment of the instrument's permanence

S&P said, "Solvay S.A. can redeem the securities for cash on any
date in the three months immediately prior to the first reset date
(which we understand will be no earlier than 5.5 years after
issuance), then on every interest payment date thereafter. Although
the proposed securities are long dated, they can be called at any
time for events that we deem external or remote (change in tax,
accounting, and rating). If any of these events occur, Solvay
intends, but is not obliged, to replace the instruments. In our
view, the statement of intent mitigates the issuer's ability to
repurchase the notes on the open market.

In addition, Solvay has the ability to call the instrument any time
prior to the first call date at a make-whole premium ("make-whole
call") and in case of a clean-up (25% or less outstanding). Solvay
stated its intention not to redeem the instrument during this
make-whole period, and S&P did not consider that this type of
make-whole clause creates an expectation that the issue will be
redeemed during the make-whole period.

S&P said, "Accordingly, we do not view it as a call feature in our
hybrid analysis, even if it is referred to as a make-whole call
clause in the hybrid documentation.

"We understand that the interest to be paid on the proposed
securities will increase by 25 basis points (bps) no earlier than
10.5 years after issuance, then by an additional 75 bps at the
second step-up, 20 years after the first reset date. We consider
the cumulative 100 bps as a material step-up, which is currently
unmitigated by any commitment to replace the respective instruments
at that time. This step-up provides an incentive for the issuer to
redeem the instrument on the first call date. Consequently, in
accordance with our criteria, we will no longer recognize the
instrument as having intermediate equity content after the first
reset date, because the remaining period until their economic
maturity would, by then, be less than 20 years. Solvay's
willingness to maintain or replace the instrument in the event of a
reclassification of equity content to minimal is underpinned by its
statement of intent."

Key factors in S&P's assessment of the instrument's deferability

S&P said, "In our view, Solvay's option to defer payment on the
proposed security is discretionary. This means that the issuer may
elect not to pay accrued interest on an interest payment date
because doing so is not an event of default. However, any
outstanding deferred interest payment will have to be settled in
cash if Solvay declares or pays an equity dividend or interest on
equally ranking securities, and if the issuer redeems or
repurchases shares or equally ranking securities. We see this as a
negative factor. That said, this condition remains acceptable under
our methodology, because once the issuer has settled the deferred
amount, it can still choose to defer on the next interest payment
date."

Key factors in S&P's assessment of the instrument's subordination

The proposed security (and coupons) are intended to constitute
direct, unsecured, and subordinated obligations of the issuer,
ranking senior to their common shares and pari passu to the
existing hybrid security issued by Solvay S.A. and by Solvay
Finance S.A. and guaranteed by Solvay S.A.




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G E R M A N Y
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DEMIRE DEUTSCHE: S&P Alters Outlook to Negative & Affirms BB ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook on DEMIRE Deutsche
Mittelstand Real Estate AG (DEMIRE) to negative from stable, and
affirmed its 'BB' long-term issuer credit and 'BB+' issue ratings
on the company.

As a result of the announced dividend, S&P expects DEMIRE's
leverage will increase to close to its rating downside threshold
for a 'BB' rating.

The company's majority shareholder AEPF III S.a.r.l. (Apollo) aims
for a first time dividend distribution of approximately EUR57.6
million, an amount close to DEMIRE's accumulated profit at Dec. 31,
2019. S&P said, "As a result, we expect DEMIRE's S&P Global
Ratings-adjusted debt to debt plus equity will rise to about 58% at
year-end 2020 versus 52.2% as of June 30, 2020, close to our rating
downside threshold of 60%. We also forecast debt to EBITDA will
increase to above 15x this year compared with 13.7x rolling twelve
months (RTM) as of June 30, 2020. Although, we understand the final
dividend distribution is still subject to annual general meeting
approval, we view such distribution as aggressive from a financial
policy point of view and given current market sentiments and
uncertainties surrounding the COVID-19 pandemic. We understand that
DEMIRE remains committed to its financial policy target of a
reported loan to value ratio (LTV) of 50% over the medium term,
translating into S&P Global Ratings-adjusted debt to debt plus
equity of about 55%. Our outlook revision takes into account the
tighter rating headroom, leaving the company limited ability to
absorb unexpected market developments. That said, we expect
DEMIRE's EBITDA interest coverage will continue improving closer to
3x by year-end 2020 versus 2.5x RTM as of June 30, 2020, thanks to
its refinancing activities during 2019, improving its cost of debt
to 1.8%."

COVID-19 is likely to hamper DEMIRE's earnings for 2020, but
additional rental income from its 2019 acquisitions should offset
this somewhat.

Lockdown in Germany forced shops and hotels to close during
second-quarter of 2020, and required adherence to various other
social distancing measures to curb the spread of the virus. About
16% of DEMIRE's annual contractual rental income comes from retail
assets that were not defined as essential stores and allowed to
remain open. Its hotel assets account for a further 6.5%. S&P said,
"We understand DEMIRE was able to collect above 85% of its monthly
rent collection during the second quarter, and payments from July
are now broadly back at pre-COVID-19 levels. Nonetheless, we
continue to expect DEMIRE's like-for-like rental growth in 2020
will decline to 3%-5%. Overall, we only expect a marginal recovery
of the retail sector in 2021, and remain cautious about the medium-
to long-term demand trends for office properties in Germany as a
result of increased remote working capacities for many tenants. We
anticipate that the acquisitions DEMIRE made last year will benefit
2020 net rental income by approximately EUR7.5 million, partly
mitigating the negative effect of COVID-19 on rents."

S&P continues to view DEMIRE's liquidity as robust.

S&P said, "Taking into account the announced dividend distribution,
we continue to view the company's liquidity position as adequate.
This is supported by the company´s signed loan facilities of about
EUR62.5 million post reporting date, low capital expenditure needs,
and limited short-term debt maturities. We understand that,
post-dividend distribution, the company will maintain sufficient
headroom (>10%) under its outstanding financial covenants.

"The negative outlook reflects that we could lower the ratings of
DEMIRE in the next 12 months if the company's debt to debt plus
equity rises to 60%. This could happen as a result of, for example,
weaker-than-anticipated operational performance, including
potential negative asset revaluation, or debt-financed
transactions.

"We could lower the rating if the company fails to keep its debt to
debt plus equity below 60% and EBITDA interest coverage above 2x on
a sustainable basis. We would also view debt to annualized EBITDA
below 15x as negative. This could occur if DEMIRE allows its
reported net LTV ratio to rise materially above 50%, contrary to
its publicly announced policy.

"We could also consider a downgrade if the company does not manage
to realize its business growth strategy, or if it invests in less
favorable secondary locations away from metropolitan hubs.

"In addition, we could downgrade the company if its liquidity
position deteriorates, for example, through acquisitions or a
decrease in its cash flow base.

"We would revise the outlook to stable if DEMIRE proves resilience
in the current market environment despite its dividend
distribution, with S&P Global Ratings-adjusted debt to debt plus
equity remaining well below 60% and EBITDA interest coverage well
above 2x. We would also view positively the company´s ratio of
debt to annualized EBITDA to be retained below 15x.

"At the same time, we would also view positively if the company
were to continue its growth strategy by investing in assets with
favorable market fundamentals, funded by a balanced mix of debt and
equity."


[*] GERMANY: Agrees to Extend Corporate Insolvency Moratorium
-------------------------------------------------------------
Francois Murphy and Holger Hansen at Reuters report that German
coalition parties have agreed to extend a freeze on insolvency
rules put in place to avoid a wave of corporate bankruptcies due to
the coronavirus crisis, Finance Minister Olaf Scholz said on Aug.
25.

Speaking to reporters in Vienna, Mr. Scholz said his centre-left
Social Democratic Party (SPD) and Chancellor Angela Merkel's
conservative bloc sealed a compromise deal ahead of a coalition
meeting, Reuters relates.

In March, the government gave companies that find themselves in
financial trouble due to the pandemic a respite by allowing them to
delay filing for bankruptcy until the end of September, Reuters
recounts.

Justice Minister Christine Lambrecht, a Scholz ally and SPD member,
had suggested extending the moratorium until the end of March 2021,
Reuters relays.  But her plan drew criticism from Merkel's
lawmakers who said the waiver should expire at the end of this
year, Reuters notes.

Mr. Scholz did not give any details on the agreement, but added
that the deal would be announced later, Reuters states.

A coalition member with knowledge of the talks told Reuters that
parties had agreed to extend the insolvency waiver until the end of
this year for indebted but still solvent companies.

The freeze on the obligation to file for insolvency will not be
extended for insolvent firms, Reuters relays, citing the coalition
source.  "We don't want to create zombie companies," Reuters quotes
the coalition source as saying on condition of anonymity.

The coalition parties are also expected to agree on Mr. Scholz's
proposal to double the period over which state aid is paid under a
government short-time working scheme to prevent unemployment
surging further during the COVID-19 pandemic, according to
Reuters.




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I R E L A N D
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CLOTARF PARK: Moody's Downgrades Class E Notes Rating to B2
-----------------------------------------------------------
Moody's Investors Service downgraded the rating on the following
notes issued by Clontarf Park CLO Designated Activity Company:

EUR10,750,000 Class E Senior Secured Deferrable Floating Rate Notes
due 2030, Downgraded to B2 (sf); previously on Jun 3, 2020 B1 (sf)
Placed Under Review for Possible Downgrade

Moody's has confirmed the ratings on the following notes:

EUR20,500,000 Class C Senior Secured Deferrable Floating Rate Notes
due 2030, Confirmed at Baa2 (sf); previously on Jun 3, 2020 Baa2
(sf) Placed Under Review for Possible Downgrade

EUR25,000,000 Class D Senior Secured Deferrable Floating Rate Notes
due 2030, Confirmed at Ba2 (sf); previously on Jun 3, 2020 Ba2 (sf)
Placed Under Review for Possible Downgrade

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

EUR240,000,000 Class A-1 Senior Secured Floating Rate Notes due
2030, Affirmed Aaa (sf); previously on Jul 12, 2017 Definitive
Rating Assigned Aaa (sf)

EUR20,000,000 Class A-2A1 Senior Secured Floating Rate Notes due
2030, Affirmed Aa2 (sf); previously on Jul 12, 2017 Definitive
Rating Assigned Aa2 (sf)

EUR23,000,000 Class A-2A2 Senior Secured Floating Rate Notes due
2030, Affirmed Aa2 (sf); previously on Jul 12, 2017 Definitive
Rating Assigned Aa2 (sf)

EUR10,000,000 Class A-2B Senior Secured Fixed Rate Notes due 2030,
Affirmed Aa2 (sf); previously on Jul 12, 2017 Definitive Rating
Assigned Aa2 (sf)

EUR21,000,000 Class B Senior Secured Deferrable Floating Rate Notes
due 2030, Affirmed A2 (sf); previously on Jul 12, 2017 Definitive
Rating Assigned A2 (sf)

Clontarf Park CLO Designated Activity Company, issued in July 2017,
is a collateralised loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans. The portfolio is
managed by Blackstone/GSO Debt Funds Management Europe Ltd. The
transaction's reinvestment period will end in August 2021.

The action concludes the rating review on Classes C, D and E notes
initiated on June 03, 2020.

RATINGS RATIONALE

Since the coronavirus outbreak widened in March, the decline in
corporate credit has resulted in a significant number of
downgrades, other negative rating actions, or defaults on the
assets collateralising the CLO.

The deterioration in credit quality of the portfolio is reflected
in an increase in Weighted Average Rating Factor (WARF) and of the
proportion of securities from issuers with ratings of Caa1 or
lower. According to the trustee report dated July 2020 [1], the
WARF was 3332, compared to value of 2995 in January 2020 [2].
Securities with ratings of Caa1 or lower currently make up
approximately 6.9% of the underlying portfolio. In addition, the
over-collateralisation (OC) levels have weakened across the capital
structure. According to the trustee report of July 2020 [1] the
Class A, Class B, Class C and Class D OC ratios are reported at
135.8%, 126.7%, 118.9% and 110.7% compared to January 2020 [2]
levels of 136.7%, 127.6%, 119.8% and 111.4% respectively.

Moody's analysed the CLO's latest portfolio and took into account
the recent trading activities as well as the full set of structural
features of the transaction. Despite the deterioration of WARF and
erosion of par, Moody's concluded that the expected losses on all
the Classes except Class E, remain consistent with the current
ratings. Consequently, Moodys has affirmed Classes A-1, A-2A1,
A-2A2, A-2B and B and confirmed Classes C and D.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base case,
Moody's analysed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR 399.7 million,
defaulted par of EUR 0.5 million, a negative cash exposure of
around EUR 2.2 million, a weighted average default probability of
24.9% (consistent with a WARF of 3303 over a weighted average life
of 4.78 years), a weighted average recovery rate upon default of
45.4% for a Aaa liability target rating, a diversity score of 56
and a weighted average spread of 3.52%.

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

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

In consideration of the current high uncertainties around the
global economy and the ultimate performance of the CLO portfolio,
Moody's conducted a number of additional sensitivity analyses
representing a range of outcomes that could diverge, both to the
downside and the upside, from its base case. Some of the additional
scenarios that Moody's considered in its analysis of the
transaction include, among others: additional near-term defaults of
companies facing liquidity pressure; additional OC par haircuts to
account for potential future downgrades and defaults resulting in
an increased likelihood of cash flow diversion to senior notes; and
some improvement in WARF as the global economy gradually recovers
in the second half of the year and future corporate credit
conditions generally stabilize.

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

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
August 2020.

Counterparty Exposure:

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

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

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

Additional uncertainty about performance is due to the following:

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

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

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

MALLINCKRODT PLC: Management Says Going Concern Doubt Exists
------------------------------------------------------------
Mallinckrodt plc filed its quarterly report on Form 10-Q,
disclosing a net loss of $933 million on $167 million of net sales
for the three months ended June 26, 2020, compared to a net income
of $7 million on $823 million of net sales for the three months
ended June 28, 2019.

At June 26, 2020, the Company had total assets of $9,690 million,
total liabilities of $8,721 million, and $970 million in total
shareholders' equity.

The Company said that its management has identified negative
conditions and events that raise substantial doubt about its
ability to continue as a going concern within one year from the
date of issuance of the unaudited condensed consolidated financial
statements.

The Company further stated, "Any plans to resolve these risks as a
going concern have not yet been finalized and are not fully within
the Company's control, and therefore cannot be deemed probable.
The Company has been working with external advisors to explore a
range of options and engage in dialogue with financial creditors
and litigation claimants and their advisors, which may result in a
filing for reorganization in bankruptcy under Chapter 11 by
Mallinckrodt plc and most of its subsidiaries in the near-term.  As
a result, the Company has concluded that management's plans at this
stage do not alleviate substantial doubt about the Company's
ability to continue as a going concern."

A copy of the Form 10-Q is available at:

                       https://is.gd/5PrLlQ

Mallinckrodt plc, together with its subsidiaries, develops,
manufactures, markets, and distributes specialty pharmaceutical
products and therapies in the United States, Europe, the Middle
East, Africa, and internationally. It operates in two segments,
Specialty Brands and Specialty Generics. It markets its branded
products to physicians, pharmacists, pharmacy buyers, hospital
procurement departments, ambulatory surgical centers, and specialty
pharmacies. Mallinckrodt plc has collaboration with Silence
Therapeutics plc. The company was founded in 1867 and is based in
Dublin, Ireland.




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I T A L Y
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NATUZZI SPA: KPMG S.p.A. Raises Substantial Going Concern Doubt
---------------------------------------------------------------
NATUZZI S.p.A. filed with the U.S. Securities and Exchange
Commission its annual report on Form 20-F, disclosing a loss of
EUR33,680,000 on EUR386,962,000 of revenue for the year ended Dec.
31, 2019, compared to a profit of EUR33,119,000 on EUR428,539,000
of revenue for the year ended in 2018.

The audit report of KPMG S.p.A. states that the Company has
suffered recurring losses from operations and subsequent to
year-end has declining revenue and cash flows that raise
substantial doubt about its ability to continue as a going
concern.

The Company's balance sheet at Dec. 31, 2019, showed total assets
of EUR369,394,000, total liabilities of EUR264,576,000, and
EUR104,818,000 in total equity.

A copy of the Form 20-F is available at:

                     https://is.gd/xQvfeT

NATUZZI S.p.A. designs, manufactures, and markets leather and
fabric upholstered furniture through its own and franchised stores
worldwide. The company operates through Natuzzi Brand and Private
Label segments. The company was formerly known as Industrie Natuzzi
S.p.A. and changed its name to Natuzzi S.p.A. in June 2002. Natuzzi
S.p.A. was founded in 1959 and is headquartered in Santeramo in
Colle, Italy.




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L U X E M B O U R G
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INTELSAT SA: Discloses Substantial Going Concern Doubt
------------------------------------------------------
Intelsat S.A. filed its quarterly report on Form 10-Q, disclosing a
net loss of $218,215,000 on $458,820,000 of net revenues for the
three months ended March 31, 2020, compared to a net loss of
$120,042,000 on $528,449,000 of net revenues for the same period in
2019.

At March 31, 2020, the Company had total assets of $11,695,674,000,
total liabilities of $16,903,903,000, and $5,217,916,000 in total
shareholders' deficit.

The Company said, "As reflected in our condensed consolidated
financial statements, the Company had cash and cash equivalents of
US$782.5 million and an accumulated deficit of US$7.7 billion as of
March 31, 2020.  The Company also generated income from operations
of US$97.5 million and a net loss of US$218.2 million for the three
months ended March 31, 2020.

"On May 13, 2020, the Company and certain of its subsidiaries
(each, a "Debtor") commenced voluntary cases (the "Chapter 11
Cases") under Chapter 11 of the United States Bankruptcy Code (the
"Bankruptcy Code") in the United States Bankruptcy Court for the
Eastern District of Virginia (the "Bankruptcy Court").  Primary
factors causing us to file for Chapter 11 protection included the
Company's intention to participate in the accelerated clearing
process of C-band spectrum set forth in the U.S. Federal
Communications Commission's ("FCC") final order on the topic,
requiring the Company to incur significant costs now related to
clearing activities well in advance of receiving reimbursement for
such costs, as well as the economic slowdown impacting the Company
and several of its end markets due to the novel coronavirus
("COVID-19") pandemic.

"Prior to the commencement of the Chapter 11 Cases, the Company
entered into a commitment letter (the "Commitment Letter") with
certain parties (the "Commitment Parties"), pursuant to which, and
subject to the satisfaction of certain customary conditions,
including the approval of the Bankruptcy Court, the Commitment
Parties have agreed to backstop a non-amortizing multiple draw
super-priority senior secured debtor-in-possession term loan
facility (the "DIP Facility"), in an aggregate principal amount of
US$1.0 billion.

"Our ability to continue as a going concern is contingent upon,
among other things, our ability to, subject to the Bankruptcy
Court's approval, implement a business plan of reorganization,
emerge from the Chapter 11 proceedings and generate sufficient
liquidity following the reorganization to meet our contractual
obligations and operating needs.  As a result of risks and
uncertainties related to, among other things, (i) the Company's
ability to obtain requisite support for the business plan of
reorganization from various stakeholders, and (ii) the disruptive
effects of the Chapter 11 proceedings on our business making it
potentially more difficult to maintain business, financing and
operational relationships, substantial doubt exists regarding our
ability to continue as a going concern."

A copy of the Form 10-Q is available at:

                       https://is.gd/QfmW2B

Based in Luxembourg, Intelsat S.A. operates as a satellite services
company that provides diversified communications services to the
media companies, fixed and wireless telecommunications operators,
and data networking service providers for enterprise and mobile
applications, multinational corporations, and Internet service
providers.




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

SLAVYANSKI CREDIT: Bank of Russia Cancels Banking License
---------------------------------------------------------
The Bank of Russia, by its Order No. OD-1362, dated August 21,
2020, cancelled the banking license of Moscow-based Commercial Bank
Slavyanski Credit Ltd. (hereinafter, Slavyanski Credit Ltd.) (Reg.
No. 2960). The credit institution ranked 287th by assets in the
Russian banking system.

The license of Slavyanski Credit Ltd. was cancelled following the
request that the credit institution submitted to the Bank of Russia
after the decision of its general shareholders' meeting on its
voluntary liquidation (in accordance with Article 61 of the Civil
Code of the Russian Federation).

Based on the reporting data provided to the Bank of Russia, the
credit institution has sufficient assets to satisfy creditors'
claims.

The Bank of Russia will appoint a liquidation commission to
Slavyanski Credit Ltd.

Slavyanski Credit Ltd. is a member of the deposit insurance
system.





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

MBS BANCAJA 2: Fitch Affirms CCCsf Rating on Class F Debt
---------------------------------------------------------
Fitch Ratings has affirmed 3 MBS Bancaja transactions and removed
six tranches from Rating Watch Negative (RWN). The Outlooks are
Stable.

RATING ACTIONS

MBS Bancaja 2, FTA

Class A ES0361795000; LT AAAsf Affirmed; previously at AAAsf

Class B ES0361795018; LT AAAsf Affirmed; previously at AAAsf

Class C ES0361795026; LT AAAsf Affirmed; previously at AAAsf

Class D ES0361795034; LT AA+sf Affirmed; previously at AA+sf

Class E ES0361795042; LT Asf Affirmed; previously at Asf

Class F ES0361795059; LT CCCsf Affirmed; previously at CCCsf

MBS Bancaja 3, FTA

Series A2 ES0361796016; LT AAAsf Affirmed; previously at AAAsf

Series B ES0361796024; LT AA+sf Affirmed; previously at AA+sf

Series C ES0361796032; LT AA-sf Affirmed; previously at AA-sf

Series D ES0361796040; LT A-sf Affirmed; previously at A-sf

Series E ES0361796057; LT CCCsf Affirmed; previously at CCCsf

MBS Bancaja 4, FTA

Class A2 ES0361797014; LT AAAsf Affirmed; previously at AAAsf

Class B ES0361797030; LT A+sf Affirmed; previously at A+sf

Class C ES0361797048; LT A-sf Affirmed; previously at A-sf

Class D ES0361797055; LT BBBsf Affirmed; previously at BBBsf

Class E ES0361797063; LT CCCsf Affirmed; previously at CCCsf

TRANSACTION SUMMARY

The transactions comprise Spanish residential mortgages serviced by
Bankia, S.A. (BBB/RWN/F2). The loans were originated by Bancaja,
which in 2011 transferred all rights to Bankia.

KEY RATING DRIVERS

COVID-19 Additional Stress Assumptions

Fitch has identified and applied additional stresses in conjunction
with its European RMBS Rating Criteria in response to the
coronavirus outbreak and the recent legislative developments in
Catalonia (see: EMEA RMBS: Criteria Assumptions Updated due to
Impact of the Coronavirus Pandemic and Spain RMBS: Criteria
Assumptions Updated Due to Decree Law in Catalonia).

To capture the possible build-up of arrears in the following months
due to the COVID-19 crisis, Fitch has performed a sensitivity test
towards higher arrears by increasing the default rate by 10%. Fitch
has not made an additional adjustment for payment holidays as they
account for only around 9% of the Spanish mortgage market, which is
low compared with other European countries such as the UK or Italy.
The reserve funds are also sufficient to cover transaction costs,
net swap payments and interest due on the senior notes for several
periods.

RWN Resolved; Ratings Resilient

MBS Bancaja 2 class E, MBS Bancaja 3 class D and MBS Bancaja 4
class A to D notes have been removed from RWN on which they were
placed since April 16, 2020 after Fitch found the ratings were
robust to tolerate the COVID-19 additional stress scenarios.

Payment Interruption Risk Mitigated

Reserve funds for MBS Bancaja 2 and MBS Bancaja 3 are currently
below target. Nevertheless, all three transactions are viewed by
Fitch as sufficiently protected against payment interruption risk.
In a servicer disruption, liquidity sources provide sufficient
buffer to mitigate liquidity stresses, covering at least seven
months of senior fees and interest payment obligations on the
senior notes.

Credit Enhancement (CE) Trends

For all transactions, CE ratios are expected to increase due to
currently sequential note amortisation. If pro-rata allocation is
activated for the mezzanine and junior tranches, CE ratios could
decrease. MBS Bancaja 3's and MBS Bancaja 4's CE ratios could also
decrease if the transaction reserve funds are permitted to amortise
to their floors.

For all the transactions, the notes will amortise sequentially when
the outstanding portfolio balance represents less than 10% of their
original amount (currently between 10% and 18%).

Portfolio Risk Attributes

Over 20% of the loans across all transactions were granted to
self-employed borrowers, which are considered higher-risk than
loans granted to employed borrowers, and are therefore subject to a
foreclosure frequency (FF) adjustment of 170%, in line with Fitch's
European RMBS Rating Criteria. Further, over 30% of MBS Bancaja 2
and MBS Bancaja 3 portfolio balances, and over 80% of MBS Bancaja 4
are linked to mortgages for the acquisition of second homes, which
are subject to a FF adjustment of 150%. The portfolios are exposed
to geographical concentration in the region of Valencia. In Fitch's
analysis, higher rating multiples are applied to the base FF
assumption to the portion of the portfolio that exceeds 2.5x the
population within this region. Finally, the foreclosure timing for
the (limited) share of properties in Catalonia was extended as per
its updated assumptions on Spain.

Arrears Low but Increasing

The transactions' early and late-stage arrears have increased over
the past six months but the overall level remains low with
three-month plus arrears (excluding defaults) at about 2% of the
current pool balances as of the latest reporting date. Cumulative
defaults relative to the portfolios' initial balances have remained
fairly stable over the past two years. In spite of the expected
performance deterioration over the short- to medium-term, the
portfolio may maintain its current performance record due to the
high seasoning of the mortgages of around 15 years, low current
loan-to-value and the prevailing low interest rate environment.
Downside risks stemming from COVID-19 stresses remain due to the
volatile environment.

RATING SENSITIVITIES

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

  - Sufficient increase in CE ratios as the transactions amortise
to fully compensate the credit losses and cash flow stresses
commensurate with higher rating scenarios, all else being equal.

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

  - An abrupt shift of interest rates could jeopardise the
underlying borrowers' affordability. This could have negative
rating implications, especially for junior tranches that are less
protected by structural CE.

  - A longer-than-expected coronavirus crisis that erodes
macroeconomic fundamentals and the mortgage market in Spain beyond
Fitch's current base case, such that CE cannot fully compensate the
associated credit losses and cash flow stresses, all else being
equal.

As outlined in "Fitch Ratings Coronavirus Scenarios: Baseline and
Downside Cases", Fitch considered a more severe downside
coronavirus scenario for sensitivity purpose whereby a more severe
and prolonged period of stress is assumed with a halting recovery
from 2Q21. Under this scenario, Fitch's analysis uses a 15%
weighted average FF increase and a 15% decrease in the weighted
average recovery rate. This scenario could lead MBS Bancaja 2 class
E notes being downgraded to 'BBB+sf' while leaving other notes
unchanged.

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. There were no findings that affected
the rating analysis.

Fitch has not reviewed the results of any third-party assessment of
the asset portfolio information or conducted a review of
origination files as part of its ongoing monitoring. Fitch did not
undertake a review of the information provided about the underlying
asset pools ahead of the transactions' initial closing.

The subsequent performance of the transactions over the years is
consistent with the agency's expectations given the operating
environment and Fitch is therefore satisfied that the asset pool
information relied upon for its initial rating analysis was
adequately reliable.

Overall and together with the assumptions referred, Fitch's
assessment of the information relied upon for the agency's rating
analysis according to its applicable rating methodologies indicates
that it is adequately reliable.

ESG CONSIDERATIONS

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



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

CARNIVAL CORP: Moody's Lowers CFR to B1, Outlook Negative
---------------------------------------------------------
Moody's Investors Service downgraded the ratings of Carnival
Corporation and Carnival plc including its Corporate Family Rating
to B1 from Ba1, Probability of Default Rating to B1-PD from
Ba1-PD,
senior secured rating to Ba2 from Baa3, senior secured second lien
rating to B1 from Ba1, and senior unsecured rating to B2 from Ba2.
The company's Speculative Grade Liquidity rating of SGL-2 remains
unchanged. The outlook is negative. This concludes the review for
downgrade that was initiated on July 14, 2020.

"The downgrade reflects Moody's expectation that Carnival's
metrics
will remain weak over at least the next two years with debt/EBITDA
well above 6.5x and EBITA/interest expense below 2.0x," stated
Pete
Trombetta, Moody's lodging and cruise analyst. "The downgrade also
reflects its assumption that Carnival's available capacity will be
modest in the first half of 2021 as the industry puts in place
acceptable guidelines that satisfy the requirements for the
Centers
for Disease Control and Prevention (CDC) to lift its no sail order
put in place in March," added Trombetta. Carnival's liquidity,
including about $8.8 billion (pro forma for its recent second lien
debt issuance), provides the company sufficient runway to get
through this period of unprecedented earnings pressure.

The rapid spread of the coronavirus outbreak, deteriorating global
economic outlook, and high asset price volatility have created an
unprecedented credit shock across a range of sectors and regions.
Moody's regards the coronavirus outbreak as a social risk under
its
ESG framework, given the substantial implications for public
health
and safety. The action reflects the impact on Carnival from the
deterioration in credit quality it has triggered, given its
exposure to travel restrictions in the US, which has left it
vulnerable to shifts in market demand and sentiment in these
unprecedented operating conditions.

Downgrades:

Issuer: Carnival Corporation

Probability of Default Rating, Downgraded to B1-PD from Ba1-PD

Corporate Family Rating, Downgraded to B1 from Ba1

Senior Unsecured Shelf, Downgraded to (P)B2 from (P)Ba2

Senior Secured Bank Credit Facility, Downgraded to Ba2 (LGD2) from
Baa3 (LGD2)

Senior Secured 2nd Lien Regular Bond/Debenture, Downgraded to B1
(LGD3) from Ba1 (LGD3)

Senior Secured 1st Lien Regular Bond/Debenture, Downgraded to Ba2
(LGD2) from Baa3 (LGD2)

Senior Unsecured Regular Bond/Debenture, Downgraded to B2 (LGD5)
from Ba2 (LGD5)

Issuer: Carnival plc

Senior Unsecured Shelf, Downgraded to (P)B2 from (P)Ba2

Senior Secured Regular Bond/Debenture, Downgraded to Ba2 (LGD2)
from Baa3 (LGD2)

Senior Unsecured Regular Bond/Debenture, Downgraded to B2 (LGD5)
from Ba2 (LGD5)

Issuer: Long Beach (City of) CA

Senior Secured Revenue Bonds, Downgraded to Ba2 (LGD2) from Baa3
(LGD2)

Outlook Actions:

Issuer: Carnival Corporation

Outlook, Changed to Negative from Rating Under Review

Issuer: Carnival plc

Outlook, Changed to Negative from Rating Under Review

RATINGS RATIONALE

Carnival's credit profile is supported by its good liquidity given
its significant cash balances and Moody's view that over the long
run, the value proposition of a cruise vacation relative to
land-based destinations, as well as a group of loyal cruise
customers, supports a base level of demand once health safety
concerns have been effectively addressed. The company also
benefits
from its position as the largest worldwide cruise line in terms of
revenues, fleet size and number of passengers carried, with
significant geographic and brand diversification. In the short
run,
Carnival's credit profile will be dominated by the length of time
that cruise operations continue to be highly disrupted and the
resulting impact on the company's cash consumption, liquidity and
credit metrics. The normal ongoing credit risks include Carnival's
near term very high leverage, the highly seasonal and
capital-intensive nature of cruise companies, competition with all
other vacation options, and the cruise industry's exposure to
economic and industry cycles as well as weather related incidents
and geopolitical events. At the end of the second quarter 2020,
Carnival's debt/EBITDA had weakened to 8.2x and EBITA/interest
expense was 1.2x. Moody's expects Carnival's leverage and coverage
metrics to continue to weaken over the next twelve months at which
point they will begin a slow recovery.

The negative outlook reflects Carnival's very high leverage and
the
uncertainty around the pace and level of recovery in demand that
will enable the company to reduce leverage to below 5.5x.

Carnival's liquidity is good. Moody's expects the company's cash
balances, about $8.8 billion (pro forma for its recent second lien
debt issuance), to be sufficient to cover the company's cash needs
over the next 12 to 18 months. Carnival has entered into several
amendments that have waived its required covenant compliance under
several export agreements and bank agreements through 2021. The
company's $3.0 billion revolver is fully drawn. The company's
ability to access alternate forms of liquidity are deemed to be
modest in the current operating environment.

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

The ratings could be downgraded further in the near term if the
company's liquidity weakened in any way or if the recovery in
cruising activity is delayed beyond its base assumptions which
include a resumption of US cruising in the first half of 2021 with
capacity days reaching at least 65% of their 2019 levels and
occupancy reaching at least 70% by the second quarter with
continued improvement from there. The ratings could also be
downgraded if there are indications that the company is not on a
path to restoring leverage to a sustainable level. The outlook
could be revised to stable if the impacts from the spread of the
coronavirus stabilizes and cruise operations resume at a level
that
enables the company to maintain debt/EBITDA below 5.5x. Ratings
could be upgraded if the company is able to maintain leverage
below
4.5x with EBITA/interest expense of at least 3.0x.

Carnival Corporation and Carnival plc own the world's largest
passenger cruise fleet operating under multiple brands including
Carnival Cruise Line, Holland America, Princess Cruises, AIDA
Cruises, Costa Cruises, and P&O Cruises, among others. Carnival
Corporation and Carnival plc operate as a dual listed company.
Headquartered in Miami, Florida, US and Southampton, United
Kingdom. Annual net revenues for fiscal 2019 were approximately
$16
billion.

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


COLLISTER & GLOVER: Cash Flow Problems Prompt Administration
------------------------------------------------------------
Rhys Gregor at Wales247.co.uk reports that Patrick Lannagan and
Conrad Pearson of Mazars LLP have been appointed Joint
Administrators of Collister & Glover (Pipeline Materials) Ltd ("the
Company"), as of August 11, 2020.

According to Wales247.co.uk, the Company has experienced cash-flow
difficulties as a result of difficult trading conditions in the
sector, particularly during the Covid-19 pandemic.  As a result,
the director took the decision that the company should enter
Administration and regrettably it has been necessary to make 7
redundancies, from an original staff of 13, Wales247.co.uk
discloses.

Conrad Pearson, Joint Administrator, as cited by Wales247.co.uk,
said: "Trading continues at present in a limited form and we are
seeking buyers for the business and assets, and welcome any
interest that may be forthcoming in those.  The Administrators will
be writing to all creditors over the next few days with further
details of the next steps in the process".

Collister & Glover (Pipeline Materials) Ltd is a plumbing and
supplies merchant trading from premises in Deeside, Wales.


INTERNATIONAL GAME: Needs Waivers to Remain as Going Concern
------------------------------------------------------------
International Game Technology PLC filed its Form 6-K, disclosing a
net loss of $234,099,000 on $940,195,000 of total revenue for the
three months ended March 31, 2020, compared to a net income of
$80,495,000 on $1,144,916,000 of total revenue for the same period
in 2019.

At March 31, 2020, the Company had total assets of $13,520,385,000,
total liabilities of $11,412,013,000, and $2,108,372,000 in total
shareholders' equity.

The Company said, "Decreased gaming activity resulting from the
COVID-19 pandemic could negatively impact our ability to remain in
compliance with our financial covenants, which, unless a waiver or
other accommodation is obtained would raise substantial doubt about
our ability to continue as a going concern

"Due to the COVID-19 pandemic, most casinos and gaming halls
throughout the globe have closed, and there is uncertainty as to
when they will reopen.  The closure of casinos and gaming halls has
significantly disrupted our ability to generate revenues.  In order
to remain in compliance with our debt covenants and meet our
payment obligations, on May 7, 2020, we entered into an agreement
to amend our Senior Revolving Credit Facilities Agreement (the "RCF
Amendment") and on May 8, 2020, we entered into an agreement to
amend our Senior Term Loan Facility Agreement (the "TLF Amendment,
and together with the RCF Amendment, the "Amendments") to provide
temporary relief from our financial covenants.  The Amendments,
among other things, provide a waiver for our obligation to maintain
a minimum ratio of EBITDA to net interest costs and a maximum ratio
of total net debt to EBITDA from the fiscal quarter ending June 30,
2020 through the fiscal quarter ending June 30, 2021.  During the
period beginning on the date of the Amendments and ending on August
31, 2021, the Company will be subject to a minimum liquidity
covenant that requires the Company to maintain liquidity of at
least US$500 million.  However, we have no control over and cannot
predict the length of the closure of casinos and gaming halls due
to the COVID-19 pandemic.  If we are unable to generate machine
gaming and other revenue due to closures of casinos and gaming
halls or experience significant declines in business upon
reopening, this would negatively impact our ability to remain in
compliance with our financial covenants and meet our payment
obligations even after the Amendments.  If we are unable to meet
our financial covenants or in the event some other event of default
arises, our lenders could exercise certain remedies, including
declaring the principal of and accrued interest on all outstanding
indebtedness due and payable and terminating all remaining
commitments and obligations.  Although the lenders under our Senior
Revolving Credit Facilities Agreement and Senior Term Loan Facility
Agreement could waive the defaults or forebear the exercise of
remedies, they would not be obligated to do so.  Such default may
also result in the acceleration of any other debt to which a
cross-acceleration or cross-default provision applies.  Failure to
obtain such a waiver in the future would have a material adverse
effect on our liquidity, financial condition, and results of
operations."

A copy of the Form 6-K is available at:

                       https://is.gd/Yi0wlB

International Game Technology PLC operates and provides gaming
technology products and services worldwide. The company operates
through four segments: North America Gaming and Interactive, North
America Lottery, International, and Italy. The company was formerly
known as GTECH S.p.A. and changed its name to International Game
Technology PLC in April 2015. The company was founded in 2014 and
is headquartered in London, the United Kingdom. International Game
Technology PLC operates as a subsidiary of De Agostini S.p.A.


LONDON CAPITAL: Watchdog Criticized Over Collapse Report Delay
--------------------------------------------------------------
Michael O'Dwyer at The Telegraph reports that a former appeals
court judge has hit out at the City watchdog for "unacceptable"
hold-ups after twice being forced to delay a report into one of
Britain's biggest savings scandals.

According to The Telegraph, Dame Elizabeth Gloster criticized the
Financial Conduct Authority (FCA) for delaying her work on the
failure of notorious investment firm London Capital & Finance (LCF)
with a late dump of 3,500 previously undisclosed documents.

The retired judge has been tasked with examining the regulator's
oversight of LCF, which went bust last year owing GBP237 million to
more than 11,000 people, The Telegraph discloses.

Administrators later found that LCF customers' money had been spent
on a helicopter, a riding stables and what they called "highly
suspicious" developments in the Dominican Republic, The Telegraph
relays.

Dame Elizabeth added that interviews with senior FCA staff in June
had raised important new issues which would require further
investigation, The Telegraph recounts.  As a result, she does not
expect to deliver her findings until November--far later than the
original deadline of July this year, The Telegraph states.

The report has already been push back once, after the FCA admitted
in May that it had failed to hand over "limited additional
documentation", The Telegraph notes.

In a letter to the watchdog's chairman Charles Randell, Dame
Elizabeth, as cited by The Telegraph, said: "I do not consider the
production of approximately 3,500 documents on July 17 to
constitute 'limited additional documentation'.

"It is unacceptable that your team is still identifying errors in
its disclosure of documents to my team.

"It has been a theme of the FCA 's production of documents and
information during the course of my investigation and further
instances will again impact on the timetable for completion."

The watchdog has since banned the marketing of minibonds, high risk
investments punted by LCF that promise a better rate of return than
mainstream savings products, The Telegraph notes.

Dame Elizabeth was appointed to review the FCA's regulation of LCF
after the Treasury demanded answers over how retail investors were
left nursing huge losses when the firm collapsed into
administration in January last year, The Telegraph relates.  The
Serious Fraud Office is investigating the company's failure, The
Telegraph states.

According to The Telegraph, the former judge said she was conscious
that investors who suffered as a result of LCF's collapse would be
disappointed by the fresh delay but insisted her report must be
"thorough and robust" and cover all relevant issues.

The Financial Services Compensation Scheme has agreed to make
payments to some of the investors who lost out, The Telegraph
discloses.

Mr. Randell said the watchdog has provided 45,000 documents so far,
adding: "We too are frustrated by the limitations of our legacy
technology systems in retrieving information", The Telegraph notes.


The delay came as the High Court ruled that legal agreements
entered into by London Oil & Gas--a company related to LCF--should
be set aside because they were agreed without authority and that
the board was not informed of the transactions, The Telegraph
discloses.

As part of a complex judgement, the court found that Simon
Hume-Kendall, chairman of London Oil & Gas and one of the
executives at the centre of the LCF scandal, did not have authority
to enter agreements that underpinned millions of pounds of loans,
The Telegraph recounts.

According to The Telegraph, Lane Bednash of CMB Partners, a joint
administrator to London Oil & Gas, said: "This is an important
judgment in the course of unravelling the big picture and is
significant in clearing the way for the administrators to recover
monies for the ultimate benefit of the LCF bondholders."


MCL CREATE: Enters Administration
---------------------------------
Guy Campos at AV Magazine reports that event production company MCL
Create has gone into administration, in the second major blow to
the UK events industry in the space of a week.

Staff were informed on Aug. 21, just days after the liquidation of
live events company Blitz was announced, AV Magazine notes.

The difficulties which took their toll on the two companies come as
campaigners are warning that hundreds of thousands of jobs are at
risk from the Covid-19-related shutdown of the live events
industry, AV Magazine relates.

MCL Create had a stellar client list ranging from Epson, Ricoh and
Siemens through Aston Villa and Manchester City football clubs,
Deloitte, KPMG and PWC in the accountancy and consultancy sector,
JTI and Mondelez in FMCG, unions such as the NFU and NASUWT, and
utilities such as Royal Mail and Scottish Water.



NOMAD FOODS: Fitch Assigns BB LT IDR, Outlook Stable
----------------------------------------------------
Fitch Ratings has assigned Nomad Foods Limited a first-time
Long-Term Issuer Default Rating (IDR) of 'BB' with a Stable
Outlook.

Fitch has also assigned a 'BB+' senior secured rating to the notes
and loans issued by Nomad Foods BondCo Plc, Nomad Foods US LLC,
Nomad Foods Lux S.a.r.l. and Nomad Foods Europe Midco Ltd,
100%-owned subsidiaries of Nomad Foods.

The IDR of Nomad Foods reflects its position as the largest western
European frozen food producer and its moderate financial risk
profile, which is balanced by weaker diversification than
investment-grade peers'. The rating is supported by superior free
cash flow (FCF) generation, although Fitch believes that cash is
likely to be used primarily to fund its bolt-on M&A strategy rather
than repay debt.

The Stable Outlook reflects the company's resilience to disruptions
from coronavirus pandemic given limited underlying exposure to the
food service channel and counter-cyclical nature of the company's
products. Fitch also expects that, after benefiting from increased
at-home consumption in 2020, Nomad Foods will continue growing
sales organically due to its pricing power, marketing and
innovation capabilities. The Stable Outlook also assumes that it
will be able to manage Brexit-related risks and recover any
potential shortfall in profits over the medium term.

KEY RATING DRIVERS

Leading European Frozen Food Producer: The rating reflects Nomad
Foods' business profile as the largest branded frozen food producer
in western Europe with leading positions across markets and
categories. Its market share of 14% is more than twice as high as
its next competitor. Nomad Foods also ranks third in branded frozen
food globally, after Nestle SA and Conagra Brands, Inc. The
business scale as measured by its annual EBITDAR of more than
EUR400 million puts it firmly in the 'BB' rating category.

Moderate Diversification: Geographic diversification across western
Europe (UK, Italy, Germany, France, Sweden, Norway, Austria, Spain
and others) and across frozen food products (fish, vegetables,
ready meals, poultry and pizza) differentiates Nomad Foods
favourably from 'B' category peers. However, the focus on one
packaged food category (frozen food) and mature markets in one
geographic region means business diversification is weaker than
investment-grade packaged food producers.

Resilience to Coronavirus: Nomad Foods' sales in 1H20 were boosted
by increased demand for frozen food as consumers sought convenience
and affordability and increased their at-home consumption during
lockdowns. Fitch projects organic sales to grow by high
single-digits in 2020 after factoring in a decline in the food
service channel, which accounted for only 5% of revenue in 2019.
Fitch then assumes organic sales to be flat in 2021 before growing
again by low single-digits from 2022. Growth potential is supported
by the strength of the company's brands, innovation capabilities
and pricing power.

M&A Appetite: Fitch expects Nomad Foods will continue consolidating
the European frozen food market through M&A as inorganic growth
remains an important element of its strategy. It has a history of
both large and bolt-on M&A with the most recent deals being the
acquisitions of UK-based Goodfella's Pizza in April 2018 and Aunt
Bessie in July 2018 for EUR475 million in total. Fitch assumes that
Nomad Foods will use its cash to acquire new assets, after its
planned USD500 million share buybacks, and to be supported by
accumulated FCF. While the rating has headroom for a mild increase
in funds from operations (FFO) gross leverage above 5.0x, larger
M&A that materially change the current capital structure will be
considered an event risk.

Strong FCF: Nomad Foods has proven its ability to generate positive
FCF, despite integration and restructuring charges related to M&A.
In 2019 it reported Fitch-adjusted FCF of EUR206 million,
representing 8.9% of revenue, which is strong compared with sector
peers', and in particular for the IDR. Healthy FCF generation
reduces the need for external funding sources to implement its
growth strategy.

Moderate Leverage: Nomad Foods' FFO gross leverage has declined to
5x in 2019 (2018: 5.6x), which Fitch expects to remain so over the
medium term, and is commensurate with the 'BB' rating category
median in its packaged food sector Navigator. This is premised on
its assumption that the company-calculated net debt-to-EBITDA of
4.5x (2019: mid-2x), which is part of its financial policy, is the
maximum tolerable leverage rather than a leverage target. Its view
is also supported by the company-calculated leverage never having
reached this threshold over the past five years, despite M&A
activity.

Manageable Brexit Risks: Nomad Foods generates around a third of
its sales from its largest market, the UK, exposing it to negative
effects of Brexit after the transition period ends. These possibly
include weakening of consumer sentiment, supply-chain disruptions
and input-cost increases. The company has prepared itself to
address these issues and Fitch believes that a potential shortfall
in profits in 2021 may be recovered through local sourcing and
selling price increases as the strength of its brands provides it
with sufficient pricing power.

DERIVATION SUMMARY

Fitch rates Nomad Foods according to its Ratings Navigator
framework for packaged food companies. Nomad Foods compares well
with Conagra Brands, Inc. (BBB-/ Stable), which is the
second-largest branded frozen food producer globally with
operations mostly in the US. Similarly, to Nomad Foods, Conagra's
growth strategy is based on bolt-on M&A. The two-notch rating
differential stems from Conagra's larger scale and product
diversification as it also sells snacks and sweet treats, which
account for around 20% of revenue.

Despite its more limited geographic diversification and smaller
business scale, Nomad Foods is rated higher than the world's
largest margarine producer Sigma Holdco BV (B+/ Negative) which,
like Nomad Foods, Fitch expects to deliver strong FCF. The rating
differential is explained by Nomad Foods' lower leverage, proven
ability to generate stable profitability, without execution risks
and less challenging demand fundamentals for frozen food than for
spreads.

Nomad Foods has the same rating as global diversified consumer
products company Spectrum Brands Inc. (BB/Stable). Its slightly
weaker business profile and higher leverage are compensated by
lower demand cyclicality and more stable operating performance.

Nomad Foods is rated below global packaged food and consumer goods
companies, such as Nestle SA (A+/Stable), Unilever NV/PLC (A/
Stable), Mondelez International, Inc. (BBB/ Stable) and The Kraft
Heinz Company (BB+/ Stable), due to limited diversification,
smaller business scale and a weaker financial profile.

No Country Ceiling, parent-subsidiary linkage or operating
environment aspects affect the rating.

KEY ASSUMPTIONS

  - High single-digit organic revenue growth in 2020

  - Flat organic sales in 2021 and low single-digit organic revenue
growth in 2022-2023

  - Organic EBITDA reduction in 2021 primarily due to higher costs
after Brexit transition period ends

  - Organic EBITDA growth over 2020-2023 with potential dilution of
EBITDA margin by bolt-on M&A activity

  - Restructuring charges of EUR25 million-EUR30 million a year

  - Capex at around 3% of revenue until 2023

  - Bolt-on M&A of EUR150 million in 2020, followed by EUR200
million a year over in 2021-2023 (at enterprise value (EV)/EBITDA
multiples consistent with recent transactions)

  - No dividends

  - Share buyback of USD500 million in 2020 in addition to EUR83.4
million spent on share repurchases over March-April 2020

RATING SENSITIVITIES

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

  - Strengthened business profile as evidenced by increased
business scale or greater geographical and product diversification

  - Continuation of organic growth in sales and EBITDA

  - FFO gross leverage below 4.5x on a sustained basis, supported
by a consistent financial policy

  - Maintenance of strong FCF margin

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

  - Weakening organic sales growth, resulting in market share
erosion across key markets

  - FFO gross leverage above 5.3x on a sustained basis as a result
of operating underperformance or large-scale M&A

  - Reduction in EBITDA margin or higher-than-expected exceptional
charges leading to FCF margin below 2% on a sustained basis

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

Strong Liquidity: At end-June 2020, Nomad Foods' liquidity was
strong. Cash of EUR935.3 million, an available undrawn revolving
credit facility (RCF) of EUR63.3 million (excluding EUR16.7 million
bank guarantees issued from this facility) and expected positive
FCF in 2020 were sufficient to cover short-term-debt of USD9.6
million and share buyback of USD500 million announced in August
2020. Most of the company's debt matures in May 2024, supporting
liquidity over the medium term. Refinancing risks are low due to
strong FCF and good access to diverse funding sources.

The senior credit facilities are secured by the same collateral as
the EUR400 million notes issued by Nomad Foods BondCo Plc. The
notch uplift given to the rating of the secured loans and notes to
'BB+' reflects its view of high recovery prospects supported by a
moderate leverage profile, partly offset by the lack of any
material subordinated, or first-loss, debt tranche in the capital
structure.

SEQUENCE FINANCIAL: Enters Administration, Halts Trading
--------------------------------------------------------
Tom Houghton at BusinessLive reports that Sequence Financial
Management, a wealth management firm based in Cheshire, has fallen
into administration and ceased trading.

According to BusinessLive, a statement from business recovery firm
Leonard Curtis said Andrew Poxon and Mike Dillon had been appointed
joint administrators of the firm on Aug. 12.

Sequence Financial Management aimed to offer customers independent
and impartial advice, and was founded in 2010.


SIGNATURE LIVING: Secures Deal to Protect All Areas of Business
---------------------------------------------------------------
Business Sale reports that Liverpool-based hotel firm Signature
Living has said it has secured a deal to "protect all areas of
[its] business and investors" and is looking to open four new
hotels, creating 500 jobs.

The company, owned by Lawrence Kenwright, saw multiple parts of its
business fall into administration during the coronavirus crisis,
Business Sale recounts.

However, it has now announced a deal with investors to refinance
parent company Signature Living Hotel Ltd., Business Sale relates.


In a statement, the company, as cited by Business Sale, said: "We
have decided to align ourselves with a group of our investors by
creating two new companies which will house a range of assets along
with our trading businesses.

"These new companies will also be exploring funding options to buy
back those assets which have been placed into administration.  Put
simply, this new structure will see Signature Living continue to
grow, continue to deliver wonderfully unique experiences for its
customers, continue to create new jobs and deliver new hotels and
developments."

Signature Living Hotel Ltd.'s most recent available accounts, to
the year ended March 31 2018, show total assets less liabilities
were GBP31.4 million, with net assets standing at GBP25.3 million,
Business Sale discloses.



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

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

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