---

       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

          Wednesday, September 9, 2020, Vol. 21, No. 181

                           Headlines



B E L G I U M

RADISSON HOSPITALITY: Moody's Confirms B3 CFR, Outlook Now Neg.


I R E L A N D

BAIN CAPITAL 2017-1: Moody's Confirms B2 Rating on Class F Notes
CARLYLE GLOBAL 2016-1: Moody's Confirms B2 Rating on Cl. E-R Notes


R U S S I A

SOVCOMBANK: Fitch Rates Upcoming Sr. Unsec. Notes Issue BB+(EXP)
SOVCOMBANK: Moody's Rates Proposed LPNs 'Ba2'


S L O V E N I A

ABANKA D.D.: Fitch Withdraws BB+ LT IDR After Nova Kreditna Merger


S P A I N

INT'L CONSOLIDATED: Moody's Cuts CFR to Ba2, Outlook Negative
VALENCIA HIPOTECARIO 3: Fitch Affirms 'CCCsf' Class D Notes Rating


S W I T Z E R L A N D

GLOBAL BLUE: S&P Affirms 'B' Issuer Rating Then Withdraws Rating


U N I T E D   K I N G D O M

BRITISH AIRWAYS: Moody's Cuts CFR to Ba2, Outlook Negative
CPUK FINANCE: Fitch Gives B(EXP) Rating to Class B5 Notes
CPUK FINANCE: S&P Assigns Prelim B- (sf) Rating to B5-Dfrd Notes
JAEGER: Former Owner Hires New Lawyers Over Collapse
LONDON CAPITAL: Investors Get Greenlight for FSCS Judicial Review

NATIONWIDE ACCIDENT: Sold to RunMyCar Following Administration
WINDBOATS GROUP: Cockwells Acquires Hardy Marine
YCE CATERING: Fails to Find Buyer, Enters Administration
[*] UK: Cos. Forced to Take Extra Debt During Pandemic May Cut Ops

                           - - - - -


=============
B E L G I U M
=============

RADISSON HOSPITALITY: Moody's Confirms B3 CFR, Outlook Now Neg.
---------------------------------------------------------------
Moody's Investors Service confirmed the B3 corporate family rating
(CFR) of Radisson Hospitality AB, the B3-PD probability of default
rating and the B3 instrument rating of its EUR250 million backed
senior secured bond due 2023 issued by a subsidiary, Radisson Hotel
Holdings AB. The outlook was changed to negative from ratings under
review. Subsequent to the rating action, Moody's will withdraw all
of Radisson's ratings following the early redemption of the
company's senior secured bond. This action concludes the review for
downgrade initiated on May 20, 2020.

"The confirmation of Radisson's rating recognizes that while the
company's credit profile has deteriorated due to the challenges
brought on by the pandemic, its key operating metrics has started
to recover. However, Radisson's leverage and coverage will remain
weak at least through 2021" said Maria Gillholm, a Moody's Vice
President -- Senior Credit Officer, and lead analyst for Radisson.
At the same time, Moody's notes the commitment of the group's
indirect majority shareholder, Jin Jiang Group, which has injected
cash to safeguard the group's liquidity.

RATINGS RATIONALE

The rating action reflects that Moody's expectation that Radisson's
business will remain disrupted for longer as travel activity will
take time to recover to pre-crisis levels. While occupancy, average
daily rates and RevPAR have started to recover, there are high
risks from a potential second wave as infections have started to
rise again since the summer in some of Radisson's key markets. As
such, Radisson relies on the ongoing commitment of its indirect
majority owner, Jin Jiang Group, to support the group's recovery by
additional liquidity injections until the business recovers to an
extent that it can cover operating costs.

Subsequently to the rating confirmation, Moody's will withdraw the
ratings because Radisson's debt previously rated by Moody's has
been fully repaid.

RATING OUTLOOK

The rating could be under continued negative pressure should
Radisson not be able to preserve a sufficient liquidity profile in
light of the expected period of negative free cash flow, an
extended period of operational disruption or in absence of adequate
measure to restore leverage metrics.

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

Upward rating pressure is unlikely at this point but could develop
if a combination of the below:

  -- There is improvement in credit metrics: debt/EBITDA close to
4.0x, coverage (EBITA/interest) approaching 2.5x and cash flow
(retained cash flow [RCF]/net debt) above 20%, all on a sustained
basis and including its standard adjustments

  -- There is adequate liquidity and positive free cash flow at all
times

Negative rating pressure could develop if the business disruptions
last longer. No material recovery beyond Q2 2020 will result in
significant negative cash flow in 2020 and weakening credit
metrics, and will put severe pressure on liquidity. Other factors
that could lead to a downgrade include:

  -- Deterioration in its credit profile, such that leverage is
sustainably above 5.5x, coverage returns below 1.5x and cash
flow/net debt drops below 12%

  -- Any liquidity challenges or more aggressive financial policy

LIST OF AFFECTED RATINGS

Confirmations:

Issuer: Radisson Hospitality AB

Probability of Default Rating, Confirmed at B3-PD

Corporate Family Rating, Confirmed at B3

Issuer: Radisson Hotel Holdings AB

BACKED Senior Secured Regular Bond/Debenture, Confirmed at B3

Outlook Actions:

Issuer: Radisson Hospitality AB

Outlook, Changed To Negative From Rating Under Review

Issuer: Radisson Hotel Holdings AB

Outlook, Changed To Negative From Rating Under Review

PRINCIPAL METHODOLOGY

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



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

BAIN CAPITAL 2017-1: Moody's Confirms B2 Rating on Class F Notes
----------------------------------------------------------------
Moody's Investors Service confirmed the ratings on the following
notes issued by Bain Capital Euro CLO 2017-1 Designated Activity
Company:

EUR17,500,000 Class D Senior Secured Deferrable Floating Rate Notes
due 2030, Confirmed at Baa2 (sf); previously on Jun 3, 2020 Baa2
(sf) Placed Under Review for Possible Downgrade

EUR22,500,000 Class E Senior Secured Deferrable Floating Rate Notes
due 2030, Confirmed at Ba2 (sf); previously on Jun 3, 2020 Ba2 (sf)
Placed Under Review for Possible Downgrade

EUR10,500,000 Class F Senior Secured Deferrable Floating Rate Notes
due 2030, Confirmed at B2 (sf); previously on Jun 3, 2020 B2 (sf)
Placed Under Review for Possible Downgrade

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

EUR206,500,000 Class A Senior Secured Floating Rate Notes due 2030,
Affirmed Aaa (sf); previously on Oct 12, 2017 Definitive Rating
Assigned Aaa (sf)

EUR31,500,000 Class B-1 Senior Secured Floating Rate Notes due
2030, Affirmed Aa2 (sf); previously on Oct 12, 2017 Definitive
Rating Assigned Aa2 (sf)

EUR15,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2030,
Affirmed Aa2 (sf); previously on Oct 12, 2017 Definitive Rating
Assigned Aa2 (sf)

EUR22,000,000 Class C Senior Secured Deferrable Floating Rate Notes
due 2030, Affirmed A2 (sf); previously on Oct 12, 2017 Definitive
Rating Assigned A2 (sf)

Bain Capital Euro CLO 2017-1 DAC, issued in October 2017, is a
collateralised loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans. The portfolio is
managed by Bain Capital Credit, Ltd. The transaction's reinvestment
period will end in October 2021.

The action concludes the rating review on the Class D, E and F
notes initiated on June 3, 2020 as a result of the deterioration of
the credit quality and/or the reduction of the par amount of the
portfolio following from the coronavirus outbreak.

RATINGS RATIONALE

The rating actions taken on September 7, rating confirmations on
Classes D, E and F and rating affirmations of Classes A, B-1, B-2
and C, reflect the expected losses of the notes continue to remain
consistent with their current ratings despite the risks posed by
credit deterioration and loss of collateral coverage observed in
the underlying CLO portfolio, which have been primarily prompted by
economic shocks stemming from the coronavirus outbreak.

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 August 2020, the WARF
was 3529 [1], compared to value of 2997 [2] in February 2020.
Securities with ratings of Caa1 or lower currently make up
approximately 11.2% [1] of the underlying portfolio. In addition,
the over-collateralisation (OC) levels have weakened across the
capital structure. According to the trustee report of August 2020
the Class A/B, Class C, Class D , Class E and Class F OC ratios are
reported at 134.7% [1], 124.0% [1], 116.5% [1], 108.2% [1] and
104.7% [1] compared to February 2020 levels of 138.3% [2], 127.3%
[2], 119.6% [2], 111.1% [2] and 107.5% [2] respectively. Moody's
notes that none of the OC tests are currently in breach and the
transaction remains in compliance with the following collateral
quality tests: Diversity Score, Weighted Average Recovery Rate
(WARR), Weighted Average Spread (WAS) and Weighted Average Life
(WAL).

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.

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 EUR343.6 million,
defaulted par of EUR5.3 million, a weighted average default
probability of 29.3% (consistent with a WARF of 3584 over a
weighted average life of 5.7 years), a weighted average recovery
rate upon default of 45.0% for a Aaa liability target rating, a
diversity score of 59 and a weighted average spread of 3.64%.

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.

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 coronavirus outbreak, the government measures put in place to
contain it, and the weak global economic outlook continue to
disrupt economies and credit markets across sectors and regions.
Its analysis has considered the effect on the performance of
corporate assets from the current weak global economic activity and
a gradual recovery for the coming months. Although an economic
recovery is underway, it is tenuous and its continuation will be
closely tied to containment of the virus. 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 rating:

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

Additional uncertainty about performance is due to the following:

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

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

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

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

CARLYLE GLOBAL 2016-1: Moody's Confirms B2 Rating on Cl. E-R Notes
------------------------------------------------------------------
Moody's Investors Service confirmed the ratings on the following
notes issued by Carlyle Global Market Strategies Euro CLO 2016-1
Designated Activity Company:

EUR21,900,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2031, Confirmed at Baa2 (sf); previously on Jun 3, 2020
Baa2 (sf) Placed Under Review for Possible Downgrade

EUR30,000,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2031, Confirmed at Ba2 (sf); previously on Jun 3, 2020
Ba2 (sf) Placed Under Review for Possible Downgrade

EUR13,000,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2031, Confirmed at B2 (sf); previously on Jun 3, 2020 B2
(sf) Placed Under Review for Possible Downgrade

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

EUR269,700,000 Class A-1-R Senior Secured Floating Rate Notes due
2031, Affirmed Aaa (sf); previously on May 17, 2018 Definitive
Rating Assigned Aaa (sf)

EUR11,200,000 Class A-2-A-R Senior Secured Floating Rate Notes due
2031, Affirmed Aa2 (sf); previously on May 17, 2018 Definitive
Rating Assigned Aa2 (sf)

EUR20,000,000 Class A-2-B-R Senior Secured Fixed Rate Notes due
2031, Affirmed Aa2 (sf); previously on May 17, 2018 Definitive
Rating Assigned Aa2 (sf)

EUR9,300,000 Class A-2-C-R Senior Secured Floating Rate Notes due
2031, Affirmed Aa2 (sf); previously on May 17, 2018 Assigned Aa2
(sf)

EUR12,500,000 Class B-1-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed A2 (sf); previously on May 17, 2018
Definitive Rating Assigned A2 (sf)

EUR17,000,000 Class B-2-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed A2 (sf); previously on May 17, 2018
Assigned A2 (sf)

Carlyle Global Market Strategies Euro CLO 2016-1 Designated
Activity Company, issued in May 2016, is a collateralised loan
obligation (CLO) backed by a portfolio of mostly high-yield senior
secured European loans. The portfolio is managed by CELF Advisors
LLP. The transaction's reinvestment period will end in November
2022.

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

RATINGS RATIONALE

The rating action is primarily a result of consistent expected loss
despite the credit quality deterioration due to the coronavirus
outbreak.

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 August 2020, the WARF was 3535[1], compared to a value
of 3082[2] in February 2020. Securities with ratings of Caa1 or
lower currently make up approximately 8.1% of the underlying
portfolio. In addition, the over-collateralisation (OC) levels have
weakened by on average 2 percentage points across the capital
structure. According to the trustee report of August 2020 the Class
A, Class B, Class C, Class D and Class E ratios are reported at
137.79%[1], 125.83%[1], 118.20%[1], 109.15%[1] and 105.64%[1]
compared to February 2020 levels of 140.10%[2], 127.93%[2],
120.18[2]%, 110.98%[2] and 107.41%[2] respectively.

Moody's notes that none of the OC tests are currently in breach and
the transaction remains in compliance with the following collateral
quality tests: Diversity Score, Weighted Average Recovery Rate
(WARR), Weighted Average Spread (WAS) and Weighted Average Life
(WAL). However, the WARF test is not passing as per the August
trustee report [1]. Furthermore, the portfolio contains defaulted
assets representing 1.6% of the aggregate principal balance.

Despite the deterioration in credit quality of the portfolio,
Moody's concluded that the expected losses on all rated notes
remain consistent with their current ratings following analysis of
the latest portfolio and taking into account the recent trading
activities as well as the full set of structural features of the
transaction. Consequently, Moody's has confirmed the ratings on the
Classes C-R, D-R and E-R notes and affirmed the ratings on the
Classes A-1-R, A-2-A-R, A-2-B-R, A-2-C-R, B-1-R and B-2-R notes.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base case,
Moody's analysed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR 426.7 million,
defaults of EUR 6.9 million, a weighted average default probability
of 29.3% (consistent with a WARF of 3588), a weighted average
recovery rate upon default of 45.6% for a Aaa liability target
rating, a diversity score of 59 and a weighted average spread of
3.86%.

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.

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; 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 coronavirus outbreak, the government measures put in place to
contain it, and the weak global economic outlook continue to
disrupt economies and credit markets across sectors and regions.
Its analysis has considered the effect on the performance of
corporate assets from the current weak global economic activity and
a gradual recovery for the coming months. Although an economic
recovery is underway, it is tenuous and its continuation will be
closely tied to containment of the virus. 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.

PRINCIPAL METHODOLOGY

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

Additional uncertainty about performance is due to the following:

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

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

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

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



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

SOVCOMBANK: Fitch Rates Upcoming Sr. Unsec. Notes Issue BB+(EXP)
----------------------------------------------------------------
Fitch Ratings has assigned Sovcombank's (SCB) upcoming issue of
Russian ruble-denominated senior unsecured Eurobonds an expected
long-term 'BB+(EXP)' rating.

The bonds will be issued by SCB's existing Irish SPV, Sovcom
Capital DAC, which will on-lend the proceeds to the bank.

The issue size and interest rate are yet to be determined, while
the tenor is expected to be three years. SCB plans to use the
proceeds from this bond issue for financing its portfolio of
instalment cards.

The final rating is contingent upon the receipt of final documents
conforming to information already received.

KEY RATING DRIVERS

The expected rating is in line with SCB's Long-Term Issuer Default
Rating (IDR) of 'BB+', as the notes will represent unconditional,
senior unsecured obligations of the bank, which rank pari passu
with its other senior unsecured obligations.

The 'BB+' IDR of SCB is driven by its intrinsic credit strength as
expressed by the Viability Rating (VR) of 'bb+'. The ratings
reflect a record of strong profitability to date, reasonable asset
quality in a Russian economic environment, and adequate capital and
liquidity buffers.

RATING SENSITIVITIES

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

SCB's senior unsecured debt rating may be upgraded if the IDR is
upgraded.

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

SCB's senior unsecured debt rating may be downgraded if the IDR is
downgraded.

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).

SOVCOMBANK: Moody's Rates Proposed LPNs 'Ba2'
---------------------------------------------
Moody's Investors Service assigned a Ba2 senior unsecured debt
rating to the Loan Participation Notes to be issued on a limited
recourse basis by SovCom Capital D.A.C., a special purpose vehicle
incorporated under laws of Ireland, for the sole purpose of
financing a senior unsecured loan to Sovcombank PJSC (Sovcombank).
The outlook for the rating is stable. The maturity, the size and
the pricing of the notes are subject to prevailing market
conditions during placement.

RATINGS RATIONALE

The Ba2 rating assigned to the notes is the same as Sovcombank's
long-term local currency deposit rating and in line with the bank's
Adjusted Baseline Credit Assessment (BCA). The rating for the LPNs
is based on the fundamental credit quality of Sovcombank, the
ultimate obligor under the transaction.

The notes will rank pari passu with the claims of all other
unsecured creditors of the borrower and according to the terms and
conditions of the loan agreement, Sovcombank must comply with a
number of covenants such as negative pledge, limitations on
mergers, disposals and transactions with affiliates.

The cross-default clause embedded in the bond documentation will
cover, inter alia, a failure by Sovcombank or any of its principal
subsidiaries to pay any of their financial indebtedness in the
amount exceeding $35 million.

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

Sovcombank's ratings are not likely to be upgraded in next 12-18
months because of increased challenges amid the unfavorable
operating conditions related to the coronavirus outbreak. Downward
rating pressure could emerge if the bank's asset quality weakens
significantly for an extended period, resulting in higher
than-expected credit or market losses and eroded profitability and
capital buffer.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Banks Methodology
published in November 2019.



===============
S L O V E N I A
===============

ABANKA D.D.: Fitch Withdraws BB+ LT IDR After Nova Kreditna Merger
-------------------------------------------------------------------
Fitch Ratings has withdrawn Slovenia-based Abanka d.d.'s (Abanka)
ratings.

Abanka's ratings are withdrawn because the bank no longer exists as
a separate legal entity following the completion of its merger with
Nova Kreditna Banka Maribor d.d. (NKBM) on September 1, 2020.

The ratings were withdrawn following the entity's reorganisation.

KEY RATING DRIVERS

Fitch is withdrawing the ratings of Abanka as the bank no longer
exists. Accordingly, Fitch will no longer provide ratings or
analytical coverage for Abanka.

RATING SENSITIVITIES

N/A

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, either due to their nature or
to the way in which they are being managed by the entity. Following
the withdrawal of ratings for Abanka d.d., Fitch will no longer be
providing the associated ESG Relevance Scores.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

N/A

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).

RATING ACTIONS

Abanka d.d.

LT IDR; WD Withdrawn; previously BB+

ST IDR; WD Withdrawn; previously B

Viability; WD Withdrawn; previously bb+

Support; WD Withdrawn; previously 5



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

INT'L CONSOLIDATED: Moody's Cuts CFR to Ba2, Outlook Negative
-------------------------------------------------------------
Moody's Investors Service downgraded Int'l Consolidated Airlines
Group, S.A.'s corporate family rating to Ba2 from Ba1 and its
probability of default rating to Ba2-PD from Ba1-PD. Concurrently
Moody's has downgraded the ratings to B1 from Ba2 of the company's
EUR1 billion senior unsecured notes divided into EUR500 million
series A bonds due 2023 and EUR500 million series B bonds due 2027.
The outlook remains negative.

The rating actions reflect:

  -- The slow pace of passenger demand recovery in Europe since
national travel restrictions and quarantine measures were
introduced in the first half of 2020

  -- IAG's large exposure to long haul, cross-border and corporate
travel which is expected to remain weaker than the industry as a
whole

  -- Despite the credit positive proposed equity rights issuance,
liquidity headroom remains a consideration if wider coronavirus
outbreaks and extensive travel restrictions and quarantine measures
inhibit meaningful recovery

  -- An increasing debt burden to support the company over a slow
recovery with challenges to recover the balance sheet and delever
in the next two to three years

  -- Execution risks in implementing substantial restructuring and
cost reduction programmes, recognising the company's strong track
record in implementing similar programmes since its formation

  -- The company's scale, strong market positions, global network
and high profitability prior to the pandemic

RATINGS RATIONALE

The coronavirus pandemic, the weakened global economic outlook, low
oil prices and asset price declines are sustaining a severe and
extensive credit shock across many sectors, regions and markets.
The combined credit effects of these developments are
unprecedented. The passenger airline industry is one of the sectors
most significantly affected by the shock given its exposure to
travel restrictions and sensitivity to consumer demand and
sentiment. The action reflects the impact on IAG of the breadth and
severity of the shock, and the broad deterioration in credit
quality it has triggered.

The International Air Transport Association (IATA) reports that
European air passenger volume, as measured by revenue passenger
kilometers (RPK), fell in June and July 2020 by 94% and 81% year on
year respectively, with international travel down by 97% [1] and
87% [2] respectively. The weak recovery in demand was largely
limited to domestic travel.

In July, IATA revised its baseline forecast due to the evolving
trajectory of coronavirus, and now expects that RPK will not
recover to 2019 levels until 2024 [3]. There is now a greater
likelihood that the pace of recovery will be at the slower end of
scenarios considered by Moody's in assessing the industry. There
are also risks that demand will not improve materially from current
levels, particularly if there is a lack of international
coordination over travel restrictions and quarantine measures. With
around 67% of capacity outside Europe and a high exposure to
corporate travel and premium leisure, Moody's expects that IAG
would see a slower recovery profile than the industry average.

In the first half of 2020, IAG reported a EUR3.5 billion free cash
outflow (including lease repayments), reflecting near full
grounding of the fleet over the second quarter, as well as around
EUR600 million outflows from overhedging of fuel, and refunds of
advance bookings. Its liquidity position reduced from around EUR10
billion at the end of March to EUR8.1 billion by the end of June,
after securing substantial additional liquidity and reducing
operating cash burn rate to EUR193 million per week from EUR440
million at the start of the crisis. The company also halved its
capital expenditure by EUR7 billion in aggregate over the next
three years by delaying or cancelling new aircraft deliveries and
retiring its older generation fleet earlier.

In order to further boost its liquidity, IAG has proposed an equity
rights issuance in September of up to EUR2.75 billion and also has
received GBP750 million proceeds from American Express Company (A3
negative), relating to the renewal of IAG's global partnership and
which includes a substantial component of advance sale of air
miles. The proposed issuance is supported by an irrevocable
commitment from IAG's largest shareholder, Qatar Airways, which
owns a 25.1% equity stake. The current ratings are based on the
expectation that the proposed equity rights issue is achieved.

Moody's anticipates that pro forma for the rights issue and
American Express proceeds, IAG's liquidity will support the company
to operate for around 500 days if demand does not improve from
estimated levels in the third quarter of 2020. There is a high
degree of uncertainty in this estimate, however Moody's considers
that the company's liquidity is weaker compared than similarly
Ba-rated airlines. Nevertheless, the company has further levers to
generate additional liquidity including through its remaining
unencumbered aircraft fleet. Moody's also notes that the proposed
equity issuance will improve the company's balance sheet and help
the company to restore leverage metrics.

IAG also faces challenges in executing an extensive restructuring
programme involving up to 13,000 staff within British Airways plc
(Ba2 negative) and other headcount reductions in other airlines
across the group. The company expects the ultimate headcount
reductions to be substantially lower. As part of its cost reduction
programme British Airways is also planning to amend contract terms
for certain existing staff which could lead to industrial unrest.
IAG may potentially also need to re-orientate its business towards
leisure and away from corporate travel which is typically a highly
profitable segment of the airline industry and it may face
challenges to return to prior levels of profitability as a result.

Moody's expects that in light of the possible pace of recovery,
pressures on long haul and corporate aviation, IAG will continue to
absorb cash over the next one to two years and Moody's adjusted
debt/EBITDA will be sustained above 4.0x by 2023.

IAG will also need to complete and finance the EUR1 billion
debt-funded acquisition of Air Europa during 2020 if the
transaction is approved by regulators, which will weaken its
financial metrics, although the company is in active discussions
with the vendor and the final price may be substantially lower.

At the same time the rating reflects Moody's expectation that IAG
will remain a leading operator in the industry and that it is
likely to gain market share and improve operational efficiencies
after the crisis. This is supported by its large scale, strong
brands, extensive and diversified global network, and strong market
positions on certain routes, including highly profitable
transatlantic routes, and at sought after airports.

STRUCTURAL CONSIDERATIONS

The company's EUR1 billion senior unsecured notes are rated B1, two
notches below the corporate family rating. This reflects the
substantial levels of senior secured and unsecured debt in the
company's operating companies, which rank ahead of the debt at IAG
holding company level.

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.

IAG complied with all the applicable recommendations of the Spanish
Corporate Governance Code and 2018 UK Corporate Governance Code,
with minor exceptions as detailed in its 2019 annual report.

The company is targeting a 10 per cent improvement in fuel
efficiency between 2020 and 2025, a 20 per cent reduction in net
CO2 emissions by 2030, and net zero CO2 emissions by 2050.

OUTLOOK

The negative outlook reflects the continued uncertain prospects for
the airline industry, with risks of extended disruption to travel
causing further strain on the company's balance sheet and
liquidity.

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

The ratings are unlikely to be upgraded in the short term. Positive
rating pressure would not arise until the coronavirus outbreak is
brought under control, travel restrictions are lifted, and
passenger volumes return to more normal levels. At this point
Moody's would evaluate the balance sheet and liquidity strength of
the company and positive rating pressure would require evidence
that the company is capable of substantially recovering its
financial metrics and restoring liquidity headroom within a
1-2-year time horizon.

Moody's could downgrade IAG if:

  -- There are expectations of deeper and longer declines in
passenger volumes extending materially into 2021

  -- There are concerns over the adequacy of liquidity

  -- There are clear expectations that the company will not be able
to maintain financial metrics compatible with a Ba2 rating
following the coronavirus outbreak, in particular if:

  - Gross adjusted leverage is not expected to reduce sustainably
below 5x

  - Reported operating profit margin were to fall substantially
below 10%

  - Retained cash flow to debt reduces towards 10%

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Passenger
Airline Industry published in April 2018.

COMPANY PROFILE

IAG is a Spanish registered company, with a corporate head office
in London and listed on the Spanish and London stock exchanges. It
was formed in January 2011 following the merger of British Airways
and Iberia and manages five airline subsidiaries including British
Airways, Iberia, Vueling, Aer Lingus and LEVEL, representing
complementary brands and operating in distinctive markets. IAG has
minimal operations of its own other than its Global Business
Services (GBS) division, which incorporates the Group's centralised
and back office functions and Cargo. 2019 revenues and Moody's
adjusted EBIT were EUR25.5 billion and EUR3.3 billion respectively.

VALENCIA HIPOTECARIO 3: Fitch Affirms 'CCCsf' Class D Notes Rating
------------------------------------------------------------------
Fitch Ratings has downgraded two tranches of Valencia Hipotecario
3, FTA (Valencia 3) and affirmed two tranches. Fitch has also
affirmed three tranches of Valencia Hipotecario 2, FTH (Valencia 2)
and maintained one tranche on Rating Watch Negative (RWN). The
rating actions are as follows:

RATING ACTIONS

Valencia Hipotecario 3, FTA

Class A2 ES0382746016; LT AA+sf Affirmed; previously AA+sf

Class B ES0382746024; LT A-sf Downgrade; previously A+sf

Class C ES0382746032; LT BBBsf Downgrade; previously A-sf

Class D ES0382746040; LT CCCsf Affirmed; previously CCCsf

Valencia Hipotecario 2, FTH

Series A ES0382745000; LT AAAsf Affirmed; previously AAAsf

Series B ES0382745018; LT A+sf Affirmed; previously A+sf

Series C ES0382745026; LT A+sf Rating Watch Maintained; previously
A+sf

Series D ES0382745034; LT CCCsf Affirmed; previously CCCsf

TRANSACTION SUMMARY

The transactions comprise fully amortising Spanish residential
mortgages serviced by Caixabank, S.A. (BBB+/Negative/ F2).

KEY RATING DRIVERS

COVID-19 Additional Stresses

In its analysis of the transactions, Fitch has applied additional
stresses in conjunction with its European RMBS Rating Criteria in
response to the coronavirus outbreak and the recent legislative
developments in Catalonia. Fitch anticipates a generalised
weakening of Spanish borrowers' ability to keep up with mortgage
payments due to a spike in unemployment and vulnerable
self-employed borrowers.

Performance indicators such as the level of late stage arrears (in
the range between 1.1% and 0.6% as of June 2020 for Valencia 2 and
3, respectively,) could deteriorate in the coming months and
therefore Fitch has also incorporated a 10% increase to the
weighted average foreclosure frequency (WAFF) of the portfolios.

As outlined in "Fitch Ratings Coronavirus Scenarios: Baseline and
Downside Cases", Fitch also considers a downside coronavirus
scenario for sensitivity purposes whereby a more severe and
prolonged period of stress is assumed. Under this scenario, Fitch's
analysis accommodates a 15% increase to the portfolio WAFF and a
15% decrease to the WA recovery rates. See Ratings Sensitivities.

Credit Enhancement Trends

The affirmation of Valencia 2's class A and B notes, and Valencia
3's class A notes reflect its view that credit enhancement (CE) is
sufficient to mitigate the risks associated with its base case
coronavirus scenario. The Stable Outlook on these tranches reflects
the ratings' resilience to the coronavirus downside sensitivity
assessment, supported by CE. Additionally, the high portfolio
seasoning of around 14 years and the large share of floating-rate
loans with low interest rates are mitigating factors against
macroeconomic uncertainty.

The downgrade of Valencia 3's class B and C notes ratings reflects
insufficient CE to compensate for the larger projected losses under
its base case coronavirus scenario. The sensitivity of the ratings
to scenarios more severe than currently expected is in Rating
Sensitivities.

Valencia 2 RWN Maintained

Valencia 2's class C notes' rating is capped at the issuer account
bank provider's rating (Barclays Bank plc; A+/RWN/F1), as the only
source of structural CE for this class is the reserve fund held at
the account bank. As Barclays Bank plc remains on RWN, Valencia
Hipotecario 2's class C notes also remain on RWN. Resolution of the
RWN is directly linked to the resolution of the RWN on Barclays
Bank plc, which may take longer than six months. The rating cap
reflects the excessive counterparty dependency on the SPV account
bank holding the cash reserves, as the sudden loss of these amounts
would imply a downgrade of 10 or more notches of the notes in
accordance with Fitch's criteria.

Low Take-up Rates on Payment Holidays

Fitch does not expect the COVID-19 emergency support measures
introduced by the Spanish government for vulnerable borrowers to
negatively impact the SPV's liquidity positions, given the low
take-up rate of payment holidays in the transactions, which range
between 5.6% and 6.5% of the outstanding portfolio balances as of
June 2020 (versus the Spanish national average of around 9.0%).

Regional Concentration Risk

The portfolios are exposed to geographic concentration risk, mainly
to the region of Valencia, which represents approximately 65% and
71% of the portfolios for Valencia 2 and Valencia 3, respectively.
Fitch has applied higher rating multiples to the base FF assumption
to the portion of the portfolios that exceeds 2.5x the population
within this region.

RATING SENSITIVITIES

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

  - CE ratios increasing as the transactions deleverage, able 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:

  - A longer-than-expected coronavirus crisis that deteriorates
macroeconomic fundamentals and the mortgage market in Spain beyond
Fitch's current base case. CE ratios that cannot fully compensate
the credit losses and cash flow stresses associated with the
current ratings scenarios, all else being equal. To approximate
this scenario, Fitch conducted a rating sensitivity by increasing
default rates by 15% and cutting recovery expectations by 15%,
which would imply downgrades between one and two categories for
most of the notes.

  - For Valencia 2's class C notes, a downgrade of Barclays Bank
plc's Long-Term Issuer Default Rating as the notes' rating is
capped to the bank's rating due to excessive counterparty risk
exposure.

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

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

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. 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, 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.



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

GLOBAL BLUE: S&P Affirms 'B' Issuer Rating Then Withdraws Rating
----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer rating on Global Blue,
removed it from CreditWatch negative, and withdraws the rating at
the company's request after the redemption of the rated term
loans.

The rating affirmation follows the successful refinancing of the
term loans and subsequent improvement in liquidity.

S&P said, "We no longer see a risk of a covenant breach over the
next 12 months. As part of the merger with FPAC and the public
listing, pre-merger and current majority shareholders Silver Lake
and its affiliates provided a $75 million committed liquidity
facility to Global Blue and waived a EUR154 million pre-transaction
cash dividend payment. In addition, as part of the refinancing, the
revolving credit facility was upsized from EUR80 million, of which
EUR79 million was drawn preceding the merger, to EUR100 million. We
also understand that Global Blue continues to deliver on its
permanent cost reduction program in response to the ongoing
COVID-19 pandemic."

The negative outlook reflected uncertainties related to the pace of
economic recovery from the COVID-19 pandemic, which could lead to
negative free cash flows beyond the current fiscal year or debt
covenant pressures beyond S&P's current base case.

That said, S&P recognizes that the long-term effects of COVID-19
cannot be accurately and reasonably quantified at this time and the
above may meaningfully change.

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

-- Health and safety.




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

BRITISH AIRWAYS: Moody's Cuts CFR to Ba2, Outlook Negative
----------------------------------------------------------
Moody's Investors Service downgraded British Airways, Plc's
corporate family rating to Ba2 from Ba1. Concurrently Moody's has
downgraded the ratings of British Airways Pass Through Trust
2019-1AA (Class AA) to A2 from A1, British Airways Pass Through
Trust 2019-1A (Class A) to Baa2 from Baa1, British Airways Pass
Through Trust 2018-1AA (Class AA) to A2 from A1, British Airways
Pass Through Trust 2018-1A (Class A) to Baa2 from Baa1 and
Speedbird 2013 Limited transaction (Class A) to Baa2 from Baa1. The
outlook on British Airways and on all of the above EETC
transactions remains negative.

  -- The slow pace of passenger demand recovery in Europe since
national travel restrictions and quarantine measures were
introduced in the first half of 2020.

  -- British Airways' large exposure to long haul, cross-border and
corporate travel which is expected to remain weaker than the
industry as a whole.

  -- Liquidity headroom remains a consideration if wider
coronavirus outbreaks and extensive travel restrictions and
quarantine measures inhibit meaningful recovery, despite the
expected financial support from its parent company International
Consolidated Airlines Group, S.A. (IAG, Ba2 negative).

  -- An increasing debt burden to support the company over a slow
recovery with challenges to recover the balance sheet and delever
in the next two to three years.

  -- Execution risks in implementing substantial restructuring and
cost reduction programmes, recognising IAG's and the company's
strong track record in implementing similar programmes.

  -- The company's strong market position, high profitability,
strategic importance to the United Kingdom economy and industry
leadership prior to the pandemic.

RATINGS RATIONALE

The coronavirus pandemic, the weakened global economic outlook, low
oil prices and asset price declines are sustaining a severe and
extensive credit shock across many sectors, regions and markets.
The combined credit effects of these developments are
unprecedented. The passenger airline industry is one of the sectors
most significantly affected by the shock given its exposure to
travel restrictions and sensitivity to consumer demand and
sentiment. The action reflects the impact on British Airways of the
breadth and severity of the shock, and the broad deterioration in
credit quality it has triggered.

The International Air Transport Association (IATA) reports that
European air passenger volume, as measured by revenue passenger
kilometers (RPK), fell in June and July 2020 by 94% and 81% year on
year respectively, with international travel down by 97% [1] and
87% [2] respectively. The weak recovery in demand was largely
limited to domestic travel.

In July, IATA revised its baseline forecast due to the evolving
trajectory of coronavirus, and now expects that RPK will not
recover to 2019 levels until 2024 [3]. There is a greater
likelihood that the pace of recovery will be at the slower end of
scenarios considered by Moody's in assessing the industry. There
are also risks that demand will not improve materially from current
levels, particularly if there is a lack of international
coordination over travel restrictions and quarantine measures. With
around 80% of available seat kilometres outside Europe and a high
exposure to corporate travel and premium leisure, Moody's expects
that British Airways would see a slower recovery profile than the
industry average.

In the first half of 2020, British Airways reported a GBP1.5
billion free cash outflow (including lease repayments), reflecting
near full grounding of the fleet over the second quarter and around
GBP400 million outflows from overhedging of fuel, and refunds of
advance bookings. As of June 30, 2020, its liquidity position
reduced to around GBP3.5 billion compared to GBP4.2 billion by end
of 2019, reflecting the cash burn due to limited air travel
activities and advanced bookings in the second quarter, which was
partially offset by the new funding secured during the crisis.

Moody's expects that British Airways will receive financial support
from its parent IAG. IAG has proposed an equity rights issuance in
September of up to EUR2.75 billion and also has received GBP750
million proceeds from American Express Company (A3 negative),
relating to the renewal of IAG's global partnership and which
includes a substantial component of advance sale of air miles. The
proposed equity issuance is supported by an irrevocable commitment
from IAG's largest shareholder, Qatar Airways, which owns a 25.1%
equity stake. The current ratings of IAG and British Airways are
based on the expectation that the proposed equity rights issue is
achieved.

Moody's estimates that pro forma for the IAG equity rights issue
and that a proportion of proceeds are made available to British
Airways, the company's liquidity will support its operations for
around 450 days if demand does not improve from estimated levels in
the third quarter of 2020. There is a high degree of uncertainty in
this estimate, however Moody's considers that the company's
liquidity is weaker compared than similarly Ba-rated airlines.
Nevertheless, the company has further levers to generate additional
liquidity including through its remaining unencumbered aircraft
fleet. Moody's also notes that the proposed equity issuance will
improve IAG's ability to support British Airways' balance sheet and
help the company to restore its leverage metrics.

British Airways also faces challenges in executing an extensive
restructuring programme involving up to 13,000 staff. The company
expects the ultimate headcount reductions to be substantially
lower. As part of its cost reduction programme British Airways is
also planning to amend contract terms for certain existing staff
which could lead to industrial unrest. The company may potentially
also need to re-orientate its business towards leisure and away
from corporate travel which is typically a highly profitable
segment of the airline industry and it may face challenges to
return to prior levels of profitability as a result.

Moody's expects that in light of the possible pace of recovery,
pressures on long haul and corporate aviation, British Airways will
continue to absorb cash over the next one to two years and Moody's
adjusted debt/EBITDA will be sustained above 4.0x by 2023.

At the same time the rating reflects Moody's expectation that
British Airways will remain a leading operator in the industry and
that it is likely to gain market share and improve operational
efficiencies after the crisis. This is supported by its position as
the UK's leading international scheduled airline, with a strong
premium brand and competitive positions on key routes and airports
including at London Heathrow Airport. It also reflects the
company's high operating margins, its extensive global network,
further supported by its membership in the one-world alliance and
its position within IAG, and its strategic importance to the UK's
economy and connectivity.

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.

British Airways' parent company IAG complied with all the
applicable recommendations of the Spanish Corporate Governance Code
and 2018 UK Corporate Governance Code, with minor exceptions as
detailed in IAG's 2019 annual report.

The company's commitments to reduce its carbon dioxide emissions
are aligned with those of its parent company, which is targeting a
10 per cent improvement in fuel efficiency between 2020 and 2025, a
20 per cent reduction in net CO2 emissions by 2030, and net zero
CO2 emissions by 2050.

OUTLOOK

The negative outlook reflects the continued uncertain prospects for
the airline industry, with risks of extended disruption to travel
causing further strain on the company's balance sheet and
liquidity.

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

The ratings are unlikely to be upgraded in the short term. Positive
rating pressure would not arise until the coronavirus outbreak is
brought under control, travel restrictions are lifted, and
passenger volumes return to more normal levels. At this point
Moody's would evaluate the balance sheet and liquidity strength of
the company and positive rating pressure would require evidence
that the company is capable of substantially recovering its
financial metrics and restoring liquidity headroom within a
1-2-year time horizon.

In addition, Moody's will continue to assess the operating
performance of other IAG airline subsidiaries. This is because the
operating and financial performance of IAG airline subsidiaries
determines that balance of contribution to servicing IAG's holding
company debt and informs British Airways' debt capacity and
financial policy.

Moody's could downgrade British Airways if:

  -- There are expectations of deeper and longer declines in
passenger volumes extending materially into 2021

  -- There are concerns over the adequacy of liquidity

  -- There are clear expectations that the company will not be able
to maintain financial metrics compatible with a Ba2 rating
following the coronavirus outbreak, in particular if:

  - Gross adjusted leverage is not expected to reduce sustainably
below 5x

  - Reported operating profit margin were to fall substantially
below 10%

  - Retained cash flow to debt reduces towards 10%

In addition, a material increases in IAG's debt levels or the
substantial deterioration of the operating performance of IAG's
other airline subsidiaries could put negative pressure on British
Airways' ratings.

Changes in EETC ratings can result from any combination of changes
in the underlying credit quality or ratings of the company, Moody's
opinion of the importance of the aircraft collateral to the
operations and/or its estimates of current and projected aircraft
market values, which will affect estimates of loan-to-value.

PRINCIPAL METHODOLOGY

The principal methodology used in rating British Airways, Plc was
Passenger Airline Industry published in April 2018.

COMPANY PROFILE

British Airways is the UK's largest international scheduled airline
and Europe's third-largest airline carrier in terms of revenues.
Following the merger with Iberia S.A. (Iberia) in January 2011,
British Airways reports as part of IAG, which is incorporated as a
Spanish company, with its shares trading on the London Stock
Exchange and the Spanish Stock Exchanges. In 2019 revenues and
Moody's adjusted EBIT were GBP13.3 billion and GBP1.8 billion
respectively.

CPUK FINANCE: Fitch Gives B(EXP) Rating to Class B5 Notes
---------------------------------------------------------
Fitch Ratings has assigned CPUK Finance Ltd.'s upcoming class B5
notes an expected rating of 'B(EXP)'. The Outlook is Negative. The
final rating is contingent upon the receipt of final documentation
conforming materially to the information already received.

Fitch expects the existing class A and class B notes to be
unaffected on completion of the new issue.

CPUK is a securitisation of five holiday villages in the UK
operated by Center Parcs Limited (CP).

RATING ACTIONS

RATING RATIONALE

The B5 notes' rating is at the same level as the existing class B3
and B4 notes as they share similar creditor-protective features and
reflect their pari passu ranking.

The rating considers CPUK's demonstrated ability in the
pre-pandemic period to maintain high and stable occupancy rates,
increase prices in excess of inflation and, ultimately deliver
strong financial performance. However, the ratings also factor in
CPUK's exposure to the UK holiday and leisure industry, which is
highly exposed to discretionary spending.

Fitch expects that CPUK's credit profile and debt service coverage
will be negatively impacted by a severe demand shock related to the
coronavirus pandemic. Nevertheless, the medium-term leverage
profile remains above its downgrade sensitivities, suggesting only
a temporary impairment in the credit profile.

The extensive creditor-protective features embedded in the debt
structure support the class A notes' 'BBB' ratings, while the deep
subordination of the class B notes weighs negatively on their 'B'
ratings.

The Negative Outlook reflects significant uncertainty around the
depth of the 2020 shock, its duration and the recovery path to
pre-coronavirus EBITDA and leverage. This is in light of the
government-ordered lockdown and social-distancing measures, which
are severely damaging to the UK economy and expected to curtail the
leisure sector, in particular.

The outbreak of coronavirus and related government containment
measures worldwide create an uncertain global environment for the
leisure sector. While CPUK's most recently available performance
data may not have indicated the full extent of impairment, material
changes in revenue and cost profile are occurring across the
leisure sector and will continue to evolve as economic activity and
government restrictions respond to ongoing developments. Fitch's
ratings are forward-looking in nature, and Fitch will monitor the
coronavirus outbreak for its severity and duration, and incorporate
revised base- and rating-case qualitative and quantitative inputs
based on expectations for future performance and assessment of key
risks.

ISSUANCE SUMMARY

The transaction is a new issue class B5 notes of up to GBP250
million due in 2050 and partial refinancing of a minimum of GBP230
million of the outstanding GBP480 million class B3 notes. Any net
new additional debt is planned to remain within the securitisation
for additional liquidity purposes, which could also be used to the
benefit of class B notes debt service until February 2022.

The class B5 notes' terms and conditions are somewhat different
from the rest of class B notes, notably the absence of financial
covenant (free cash flow (FCF) debt service ratio (DSCR)), which
would trigger a share enforcement event at a ratio of less than
1.0x. Fitch views these changes as credit-negative, but not
sufficient to impact class B5's key rating drivers (KRDs) and
rating. Fitch will monitor any amendments to securitisation and
cautions that the accumulation of incremental negative changes in
the debt structure may ultimately result in a reassessment of the
KRDs and ratings.

The transaction was preceded by consent solicitation process, which
granted a covenant waiver until February 2022 on the existing class
A and class B notes to avoid potential technical default amid
pandemic-induced demand stress. CPUK also received approval from
class A noteholders for the possibility to make class B payments if
class A FCF DSCR is below 1.35x. For the period in which the waiver
and amendments apply, the issuer will not make any shareholder
distributions. This is similar to other whole business
securitisation (WBS) transactions rated by Fitch.

Under Fitch's revised rating case, projected leverage and repayment
profile remains broadly unchanged for the class A and class B notes
from the Fitch rating case (FRC) in June 2020.

KEY RATING DRIVERS

Operating Environment Drives Assessment - Industry Profile:
'Weaker'

The UK holiday parks sector has both price and volume risks, which
makes the projection of long-term future cash flows challenging. It
is highly exposed to discretionary spending and, to some extent,
commodity and food prices. Events and weather risks are also
significant, with Center Parcs (CP) having been affected by a fire
and minor flooding in the past and the current coronavirus
pandemic. Fitch views the operating environment as a key driver of
the industry profile, resulting in its overall 'Weaker' assessment.
In terms of barriers to entry, the scarcity of suitable, large
sites near major conurbations is credit-positive for CPUK. The
company's offering is also exposed to changing consumer behaviour
(e.g. holidaying abroad or in alternative UK sites).

Sub-KRDs: Operating Environment: 'Weaker', Barriers to Entry:
''Midrange, Sustainability: 'Midrange'

Strong Performing Market Leader - Company Profile: 'Stronger'

Fitch views CP as a medium-sized operator with financial year to
April 2020 EBITDA of GBP200 million, and it benefits from some
economies of scale. Revenue and EBITDA growth has been consistent
through the cycle. Growth has been driven by villa price increases,
bolstered by committed development funding to upgrade villa
amenities and increase capacity. An aspect of revenue stability is
CP's large repeating customer base, with around 50% of guests
returning over three years and 35% within 12 months. CP also
benefits from a high level of advanced bookings and constantly high
occupancy rates of 97%-98% until 2019.

There are no direct competitors and the uniqueness of its offer
differentiates CP from camping and caravan options or overseas
weekend breaks. Management is generally stable, with the current
CEO having been in place since 2000 and no known
corporate-governance issues. The CP brand is fairly strong and the
company benefits from other brands operated on a concession basis
at its sites. As the business is largely self-operated, visibility
over underlying profitability is good. An increasing portion of
food and beverage revenues are derived from concession agreements,
but these are fully turnover-linked, thereby still giving some
visibility of the underlying performance.

CP is reliant on high capex to keep its offer current and remains a
well-invested business with around GBP800 million of capex since
2006 (around GBP480 million of investment/refurbishment capex).
Major accommodation upgrades were completed by end- 2016. The
current capex plan involves ongoing lodge refurbishment.

Sub-KRDS: Financial Performance: 'Stronger', Company Operations:
'Stronger', Transparency: 'Stronger', Dependence On Operator:
'Midrange', Asset Quality: 'Stronger'

Cash Sweep Amortisation - Debt Structure - Class A: 'Stronger',
Class B - 'Weaker'

All principal is fully amortising via a cash sweep and the
amortisation profile under FRC is commensurate with the industry
and company profile. The class A notes have an interest-only
period, but no concurrent amortisation with subordinated debt. The
class A notes also benefit from the payment deferability of the
junior-ranking class B notes. Additionally, the notes are all
fixed-rate, avoiding any floating-rate exposure and swap
liabilities.

The class B notes are sensitive to small changes in
operating-stress assumptions and particularly vulnerable towards
the tail end of the transaction. This is because large amounts of
accrued interest may have to be repaid, assuming the class B notes
are not repaid at their expected maturity. The sensitivity stems
from the interruption in cash interest payments upon a breach of
the class A notes' cash-lockup covenant (at 1.35x FCF DSCR) or
failure to refinance any of the class A notes one year past
expected maturity.

The transaction benefits from a comprehensive WBS security package,
including full senior-ranking asset and share security available
for the benefit of the noteholders. Security is granted by way of
fully fixed-rate and qualifying floating-rate security under an
issuer-borrower loan structure. The class B noteholders benefit
from a topco share pledge structurally subordinated to the borrower
group, and as such would be able to sell the shares upon a class B
event of default (e.g. non-payment, failure to refinance in 2022 or
FCF DSCR under 1.0x).

The class B5 notes lack the FCF DSCR covenant, which means, once
the class B3 and class B4 notes are no longer outstanding, the
class B5 noteholders will only be able to enforce their share
pledge at the topco level if class B loan interest is not paid when
due (effectively the same mechanics as FCF DSCR of 1.0x) or if the
notes are not refinanced/repaid by expected maturity. Nevertheless,
as long as the class A notes are outstanding, only the class A
noteholders are entitled to direct the trustee with regard to the
enforcement of any borrower security (e.g. if the class A notes
cannot be refinanced one year after their expected maturity).
Additionally, the class B5 notes' new terms will come into effect
only after class B3 and B4 are repaid in full.

Fitch views the covenant package as slightly weaker than other
typical WBS deals. The financial covenants are only based on
interest cover ratios (ICR). Even though documentation formally
uses DSCRs, effectively they are ICRs as there is no scheduled
amortisation of the notes. However, this is compensated by the cash
sweep feature. At GBP90 million, the liquidity facility is
appropriately sized, covering 18 months of the class A notes' peak
debt service. The class B notes do not benefit from any liquidity
enhancement but benefit from certain features while the class A
notes are outstanding, such as the operational covenants.

During the 2020 waiver period (until February 2022), the class B
notes benefit from additional liquidity availability. Proceeds of
up to GBP75 million raised via the class B notes issuance in excess
of any amounts utilised for refinancing may be available to make
payments on the class B notes without being subject to the class A
restricted payment conditions (including 1.35x class A FCF DSCR).
These funds are not exclusive to the class B notes and can be used
within securitisation for other purposes; therefore, Fitch does not
view it as liquidity enhancement.

Sub-KRDs: Debt Profile: Class A - 'Stronger', Class B - 'Weaker';
Security Package: Class A - 'Stronger', Class B - 'Weaker';
Structural Features: Class A - 'Stronger', Class B - 'Weaker'

Financial Profile: The projected deleveraging profile under FRC
envisages class A and B full repayment by 2031 and 2038 and net
debt-to-EBITDA by 2023 at 4.5x and 7.4x, respectively. Projected
prepayment under the FRC is still quicker than at initial
transaction close in 2012. If class B5 placement amount is lower
than Fitch currently assumes (GBP250 million), it is possible that
the class B notes may be repaid sooner than 2038, subject to actual
transaction terms (actual debt amount placed, amount of B3
refinanced and B5 interest rate).

PEER GROUP

Operationally, the most suitable WBS comparisons are WBS pubs, as
they share exposure to consumer discretionary spending. CP has
proven less cyclical than the leased pubs with strong performance
during previous major economic downturns. The coronavirus pandemic
has also demonstrated that CP has more control over its costs.

Due to the similarity in debt structure, the transaction can also
be compared with Arqiva. Arqiva's WBS notes are also rated 'BBB'
and envisage full repayment via cash sweep by 2030, similar to
CPUK's expected full class A repayment by 2031. The industry risk
KRD for Arqiva is assessed as 'Stronger' as it benefits from
long-term contractual revenues with strong counterparties, versus
the 'Weaker' assessment for CPUK. However, Arqiva's prepayment
timing is somewhat restricted by the expiry of these long-term
contracts.

Arqiva's junior high-yield debt is less comparable with CPUK's
class B due to the separate issuer and bullet maturity (which
introduces refinancing risk). While CPUK class B prepayment is
projected to be slightly later than Arqiva's class B notes, the
lesser degree of subordination and cash sweep feature of CPUK class
B notes justify the 'B' rating, which is one notch higher than
Arqiva's junior notes.

Roadster Finance DAC (Tank & Rast) is rated 'BBB-' with 5.5x net
debt/EBITDA on a five-year average basis, higher than CPUK's class
A leverage. T&R is not operationally similar to CP, but the soft
maturity with cash sweep financial structure is comparable. T&R's
legal structure aims to emulate the WBS framework, but Fitch views
it as weaker than the UK's administration receivership framework
utilised in WBS.

RATING SENSITIVITIES

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

  - A quicker-than-assumed recovery from the pandemic-induced
demand shock, supporting a sustained recovery in cash flows
generation, which may lead to an Outlook revision to Stable.

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

Class A notes:

  - Deterioration of the expected leverage profile with net
debt-to-EBITDA above 5.0x by 2023;

  - A full debt repayment of the notes beyond 2031 under the FRC.

Class B notes:

  - Deterioration of the expected leverage profile with net
debt-to-EBITDA above 8.0x by 2023;

  - A full debt repayment of the notes beyond 2038 under the FRC.

TRANSACTION SUMMARY

The transaction is secured by CP's holiday villages Sherwood Forest
in Nottinghamshire, Longleat Forest in Wiltshire, Elveden Forest in
Suffolk, Whinfell Forest in Cumbria and Woburn Forest in
Bedfordshire. Each site has around 865 villas and is set in a
forest environment with extensive central leisure facilities.

CREDIT UPDATE

As a result of government-imposed lockdown measures to fight the
COVID-19 pandemic, CP closed its five UK holiday parks, with effect
from March 20, 2020 until July 13, 2020. This closure has had a
significant negative effect on the net earnings and cash flows of
CPUK in FY20.

Revenue decreased 7.6% to GBP443.7 million in FY20 from GBP 480.2
million in FY19. This was driven by village closures and therefore
lower physical occupancy, down at 88% from 97.1%. EBITDA decreased
14% to GBP200 million from GBP232.6 million. Average daily rate
(ADR) was up 1.7%, while rent per available lodge night (RevPAL)
was down 7.8% due to lower capacity utilisation. Capex was down at
GBP53 million from GBP66 million, mainly driven by lower investment
and new-build capex.

The 14-year revenue and EBITDA CAGRs to FY20 remain strong at 4.6%
and 6.3%, respectively. FY20 adjusted EBITDA is below its projected
FY20 EBITDA by 15.8% (GBP200 million vs. GBP237 million) owing to
lockdown closures.

However, yoy performance during the 52 weeks ended February 27,
2020 (i.e. pre COVID-19 lockdown) was strong and in line with the
previous years. Revenues were up 4.4%, EBITDA up 3.7%, physical
occupancy at 97.1%, ADR and RevPAL up 4.2% and 4.4%, respectively.

To mitigate lockdown effect, management applied a range of
measures, such as furlough of staff, capex re-phasing and deferral
of VAT and other taxes.

In this context, CPUK received tangible support from its main
shareholder, Brookfield Asset Management, which approved GBP160
million of funding to be injected into CPUK via a combination of
equity and subordinated, interest-free shareholder loans. To date,
GBP139 million has already been injected into the structure. CP
villages reopened on July 13, with a reduction in accommodation
capacity and activities to ensure that social-distancing guidelines
are enforced. Due to health restrictions, occupancy is limited at
65% (vs. the usual 97%-98%).

FINANCIAL ANALYSIS

FRC

Under FRC, Fitch assumes class B5 notes placement amount of GBP250
million and net additional debt of GBP20 million, significant
revenue declines reflecting the 3.5 months closure of villages in
March-July and continued decreased occupancy levels owing to weaker
demand and social distancing. This should result in an annual
revenue decline of around 60% in 2020. Revenue will then
progressively normalise and reach 2019 levels only by 2022.

CP has some flexibility to partially offset the impact of the
expected significant revenue shortfall. In the FRC, Fitch assumes a
significant reduction in fixed costs to reflect the period of full
closure, during which Fitch believes it was possible to
significantly reduce most components of operating expenditure.
Fitch also assumes some reduction in maintenance and investment
capex as it can be reduced to minimum covenanted levels. Fitch also
believes it may be possible to reduce capex further as any capex
shortfall versus covenant could be made up later in the year.

Overall, the FRC results in largely similar repayment profile and
leverage compared with the last review in June 2020, due to a
minimal net debt increase, shareholder injections aimed at curing
pandemic-induced demand shock and structural features of the
securitisation.

Sensitivity Case

Fitch has also run a more severe sensitivity case that builds on
the FRC, and assumes the crisis worsens materially from its current
levels with a longer demand shock versus the revised rating case,
resulting in significant revenue reductions of around 70% during
2020 and progressive recovery by 2025. Mitigation measures are
unchanged compared with the FRC. The sensitivity shows
deterioration of CPUK's credit profile. Under this scenario
projected deleveraging envisages class A and B full repayment by
2032 and 2041 and net debt-to-EBITDA by 2023 at 11.6x and 20.0x,
respectively.

Solid Liquidity Position

CPUK has sufficient liquidity to cover at least 2020 needs. As of
mid-July CPUK, had GBP102.2 million in cash and liquidity facility
totaling GBP90 million available for senior fees and A note
interest payments, while scheduled debt service after class B5
notes placement is expected at GBP100.2 million in 2020 and
GBP100.2 million in 2021. The closest expected maturity date is in
2022 for the remaining class B3 notes of GBP250 million. Fitch
believes CPUK is has sufficient time to refinance the remainder of
the class B3 notes well in advance.

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).

CPUK FINANCE: S&P Assigns Prelim B- (sf) Rating to B5-Dfrd Notes
----------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B- (sf)' credit rating
to CPUK Finance Ltd.'s new fixed-rate GBP250 million class B5-Dfrd
notes. S&P's preliminary rating on these junior notes only
addresses the ultimate payment of interest and ultimate payment of
principal on the legal final maturity date.

CPUK Finance is a corporate securitization, where the collateral is
in form of secured loans made by the issuer to the borrower, Center
Parcs Holdings 1 Ltd. (CPH1). The borrowers' primary source of
funds for ongoing payments is cash flow from the operations of a
portfolio of five short-stay holiday villages located in the U.K.
The borrower and its subsidiaries granted security (fixed and
floating) over the borrower's operating assets, shares, and
accounts to guarantee undertakings under the loan and ensure that
noteholders have the ability to enforce the security in line with
covenants, thereby gaining control over the cash generating
operating assets and, if necessary, appointing an administrative
receiver to control any insolvency process.

The transaction originally closed in February 2012 and has been
tapped several times since, most recently in November 2018.

On the issue date, the issuer will issue the new class B5-Dfrd
notes totaling GBP250 million. These new notes will be
contractually subordinated to the outstanding class A notes and
pari pasu with the existing class B3-Dfrd and B4-Dfrd notes. The
interest on these instruments is fully deferrable and they are
fully subordinated, similar to existing class B3-Dfrd and B4-Dfrd
notes. S&P said, "Our preliminary ratings on these junior notes
only address ultimate payment of interest and principal. However,
the financial default covenant--where the class B free cash flow
debt service coverage ratio (FCF DSCR) cannot be less than
100%--will no longer apply once the existing class B3-Dfrd and
B4-Dfrd notes are redeemed. In our view, this would significantly
weaken the borrower security trustee's right to enforce the
security package on behalf of the class B5-Dfrd noteholders
compared to the existing class B3-Dfrd and B4-Dfrd notes."

In a scenario where the existing senior notes and class B3-Dfrd and
B4-Dfrd notes are no longer outstanding, the lack of class B FCF
DSCR covenant will prevent the class B5-Dfrd noteholders from
enforcing security and exercising recourse against the borrower,
which may either result in a lower rating or prevent S&P from
continuing to rate the class B5-Dfrd notes under our corporate
securitization criteria.

S&P anticipates that this new issuance will result in a class
B5-Dfrd notes leverage ratio of about 8.1x, based on 12-month
(ending January 2020) reported EBITDA of GBP238.4 million,
excluding cash available at the borrower level and considering that
the revolving credit facility is not drawn.

Following the issuance, and subject to the limitations arising from
the removal of the class B FCF DSCR covenant, the class B5-Dfrd
notes will have access to the same security package as the existing
class B3-Dfrd and B4-Dfrd notes. Notably, the class B5-Dfrd notes
will continue to have the benefit of a share pledge over the shares
of CP Cayman Midco 2 Ltd. (the topco, the topmost entity in the
securitization group outside of the corporate securitization) that
may be enforced upon a failure to refinance on their expected
maturity dates.

The class B5-Dfrd notes are structured as soft-bullet notes due in
August 2050, but with interest and principal due and payable to the
extent received under the B5-Dfrd loans. Under the terms and
conditions of the class B5-Dfrd loan, if the loan is not repaid on
its expected maturity date (August 2026), interest and principal
will no longer be due and will be deferred. The deferred interest,
and the interest accrued thereafter, becomes due and payable on the
final maturity date of the class B5-Dfrd notes in 2050. Our
analysis focuses on scenarios in which the loans underlying the
transaction are not refinanced at their expected maturity dates.
S&P therefore considers the class B5-Dfrd notes as deferring
accruing interest from the class B5-Dfrd's expected maturity date
and receiving no further payments until the class A and B notes are
fully repaid.

Moreover, under the terms of the class B issuer-borrower loan
agreement, further issuances of class A notes, for the purpose of
refinancing, are permitted without consideration given to any
potential impact on the then current ratings on the outstanding
class B notes.

Both the extension risk, which S&P views as highly sensitive to the
borrowing group's future performance given its deferability, and
the ability to refinance the senior debt without consideration
given to the class B notes, may adversely affect the issuer's
ability to repay the class B notes. As a result, the uplift above
the borrowing group's creditworthiness reflected in its ratings on
the class B notes is limited.

The transaction will likely qualify for the appointment of an
administrative receiver under the U.K. insolvency regime. When the
events of default allow security to be enforced ahead of the
company's insolvency, an obligor event of default would allow the
noteholders to gain substantial control over the charged assets
prior to an administrator's appointment, without necessarily
accelerating the secured debt, both at the issuer and at the
borrower level. S&P said, "However, under certain circumstances,
removal of the class B FCF DSCR financial covenant would, in our
opinion, prevent the borrower security trustee, on behalf of the
class B5-Dfrd noteholders, from gaining control over the borrowers'
assets as their operating performance deteriorates and would no
longer trigger a borrower event of default under the class B5 loan,
ahead of the operating company's insolvency or restructuring. This
may lead us to conclude that we are unable to rate through an
insolvency of the obligors, which is an eligibility condition under
our criteria for corporate securitizations. Our criteria state that
noteholders should be able to enforce their interest on the assets
of the business ahead of the insolvency and/or restructuring of the
operating company. If at any point the class B5-Dfrd noteholders
lose their ability to enforce by proxy the security package we may
revise our analysis, including forming the view that the class B5
notes' security package is akin to covenant-light corporate debt
rather than secured structured debt."

S&P has received legal comfort confirming that the obligors are not
companies that benefit from the new moratorium provisions under the
Corporate Insolvency and Governance Act (CIGA) 2020.

The rating S&P assigns on the issue date will depend upon receipt
and satisfactory review of all final transaction documentation,
including legal opinions, and conditions precedent being met.

  Ratings List

  Class     Prelim. rating    Prelim. amount
  B5-Dfrd      B- (sf)           TBD


JAEGER: Former Owner Hires New Lawyers Over Collapse
----------------------------------------------------
Ava Szajna-Hopgood at Retail Gazette reports that former Jaeger
owner and retail veteran Harold Tillman has hired new lawyers to
help in his legal case over the collapse of the fashion business.

Mr. Tillman told The Mail on Sunday he has "strengthened" his claim
against Lloyds and Better Capital, the private equity firm set up
by Jon Moulton, over the collapse of Jaeger, Retail Gazette
relates.

In 2012, Lloyds Bank sold GBP16 million of Jaeger's debt to Better
Capital, in a move Mr. Tillman states was sprung on the business
while he was on holiday without warning, adding that he was not
offered the chance to finance the debt himself, Retail Gazette
recounts.

Lloyds and Better Capital maintain there had been a "very clear
risk" that Jaeger would fail, Retail Gazette notes.

Jaeger was put into administration shortly after the debt sale to
Better Capital, Retail Gazette discloses.  It was then restructured
under its new ownership, allowing the fashion brand to continue
trading, Retail Gazette states.

LONDON CAPITAL: Investors Get Greenlight for FSCS Judicial Review
-----------------------------------------------------------------
Rachel Mortimer at FTAdviser reports that investors fighting for
greater compensation following the collapse of London Capital &
Finance have been given the green light for their judicial review
of the Financial Services Compensation Scheme.

The bondholders launched the review in March this year but have now
received the go ahead for the case to be heard in court after an
attempt to have the case dismissed by the lifeboat body was
refused, FTAdviser relates.

The judicial review comes as bondholders fight for greater
compensation from the FSCS, an issue of much debate over the past
year with mini-bonds falling outside the scheme as unregulated
investments, FTAdviser notes.

According to FTAdviser, the claimants in the case are hoping to see
the compensation decision made by the FSCS quashed and the
eligibility for investors broadened as a result of the review.

The lifeboat body has already paid millions in compensation to
those London Capital & Finance investors it believes received
misleading advice from the scandal-embroiled mini-bond provider,
FTAdviser discloses.

LCF fell into administration in January 2019 owing more than GBP230
million and putting the funds of more than 14,000 bondholders at
risk, FTAdviser recounts.

The company signed clients up to fixed-rate Isas promising 8%
interest, with investors' capital then invested into mini-bonds
used to issue loans to small businesses, FTAdviser states.

Administrators at Smith & Williamson are trying to recover money
for the 11,600 investors, claiming nearly 60% of all of the
investors' cash was channelled to its executives instead of being
invested as promised, FTAdviser relays.


NATIONWIDE ACCIDENT: Sold to RunMyCar Following Administration
--------------------------------------------------------------
Car Dealer Magazine reports that the UK-wide garage chain
Nationwide Accident Repair Services has gone into administration
after trading was badly hit by the coronavirus pandemic.

Some of Nationwide's subsidiaries have also been placed in
administration, Car Dealer Magazine discloses.

According to Car Dealer Magazine, administrators Pricewaterhouse
Coopers (PwC) managed to sell almost all Nationwide's business and
assets to RunMyCar Ltd--a subsidiary of Redde
Northgate--immediately following their appointment on Friday, Sept.
4, after an agreement was reached ahead of the administration
process starting.

The move saved 2,350 posts across 80 sites including repair
garages, but 540 jobs have been lost and 30 sites closed at the
Witney-based company, which was a major player in the accident
repair sector, Car Dealer Magazine notes.


WINDBOATS GROUP: Cockwells Acquires Hardy Marine
------------------------------------------------
Hannah Finch at BusinessLive reports that Cornish boatbuilder
Cockwells has bought Norfolk-based brand, Hardy Marine in a move
that is set to create jobs.

Its acquisition comes after Hardy Marine's parent company, The
Windboats Group, went into administration in April, BusinessLive
relates.  

According to BusinessLive, the collapse of the firm was not due to
the Hardy brand, which has a healthy order book but as a result of
financial difficulties and the negative impact of COVID-19.



YCE CATERING: Fails to Find Buyer, Enters Administration
--------------------------------------------------------
Catering Insight reports that Leeds-based distributor, YCE Catering
Equipment, has not succeeded in its quest to find a buyer and has
therefore lapsed into administration.

Last month, the dealer engaged Eddisons to market the business,
after experiencing financial difficulties due to the impact of
Covid-19 on the hospitality sector, Catering Insight relates.

Unfortunately no viable purchaser was found, and so Begbies Trainor
has now been appointed as the joint administrator, with insolvency
director Richard Kenworthy handling the case, Catering Insight
discloses.

YCE was founded in 1980 as the Yorkshire Catering Equipment
Company.  The firm employed 27 staff, offering nationwide kitchen
design, installation and maintenance services.




[*] UK: Cos. Forced to Take Extra Debt During Pandemic May Cut Ops
------------------------------------------------------------------
Daniel Thomas at The Financial Times reports that more than a
quarter of companies forced to take on extra debt to survive the
pandemic have warned they may need to cut back their operations,
highlighting a mounting crisis that economists warn could hold back
business recovery in the UK.

More than 40% of companies took on debt during the crisis,
according to a survey conducted by the British Chambers of Commerce
and banking group TSB, the FT relates.  According to the FT, while
one in four warned over their future growth plans, about a tenth
said they may cease trading altogether.

Many of the companies that borrowed took government-guaranteed
loans from banks using the Coronavirus Business Interruption Loan
Scheme (CBILS) or the Bounce Back Loan Scheme (BBLS), the FT notes.
In total, state-backed loan schemes have lent more than GBP52
billion to 1.2 million businesses during the pandemic, the FT
discloses.

However, senior banking executives and policymakers are
increasingly concerned over the huge debts being taken on by
weakened businesses, with fears over so-called "zombie companies"
that are strong enough to survive but unable to invest for growth
because of the need to cover their debts, the FT states.

Two-thirds of the companies surveyed said repaying debts built up
during the pandemic might have a negative impact on their business,
the FT relays.  A fifth said they would change their investment
plans because of their debt, according to the FT.

More than four in 10 of the companies surveyed said they have not
yet accessed additional finance, but faced challenging business
conditions, the FT notes.

According to the FT, the BCC and TSB poll, which surveyed more than
500 companies, also showed that many businesses will require
flexible repayment solutions to rebuild revenues and avoid an
unsustainable debt crisis.

The government-backed schemes come to an end this autumn, with
CBILS closing for new applications this month and bounce-back loans
ending in October, the FT says.

Businesses that had taken government-backed loans are evenly spread
across all sectors, according to the survey, with manufacturers
slightly more likely to have needed extra debt, the FT notes.

More than two-thirds of companies that took on extra debt said they
used it to support cash flow, reflecting the challenges in keeping
businesses afloat as they closed their doors and demand fell away
sharply during the pandemic, the FT discloses.

More than 40% of those who took loans said they used the money for
overheads or for paying staff, while a third used it to pay other
debts, the FT states.  The smallest companies were more likely to
say that repaying debt could cause them to cease trading, the FT
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.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000.


                * * * End of Transmission * * *