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

                          E U R O P E

          Friday, September 18, 2020, Vol. 21, No. 188

                           Headlines



A R M E N I A

IDBANK: Moody's Hikes LT Deposit Ratings to B2, Outlook Stable


B U L G A R I A

BULGARIAN TELECOM: Moody's Withdraws Ba3 Corp. Family Rating


C R O A T I A

TZV GREDELJ: Tatravagonka Submits Sole Valid Bid for Business


F R A N C E

EUROPCAR MOBILITY: S&P Lowers ICR to 'CC', Outlook Negative
IMERYS SA: Egan-Jones Lowers Senior Unsecured Ratings to BB+


G E R M A N Y

THYSSENKRUPP AG: Egan-Jones Lowers Senior Unsecured Ratings to B


I R E L A N D

ARES EUROPEAN VII: Moody's Confirms B2 Rating on Class E-R Notes
NEW LOOK: Confirmation of Examiner Appt. for Irish Unit Adjourned


I T A L Y

SESTANTE FINANCE 3: Fitch Lowers Rating on Class C1 Notes to 'Csf'


L U X E M B O U R G

CAMELOT FINANCE: Moody's Rates $1.6BB Incremental Term Loan 'B2'
MARCEL LUX IV: Moody's Affirms B3 CFR on Rancher Acquisition
MARCEL LUX IV: S&P Alters Outlook to Negative on Rancher Deal


N E T H E R L A N D S

TMF SAPPHIRE: Moody's Alters Outlook on B3 CFR to Stable
WERELDHAVE NV: Moody's Alters Outlook on B1 CFR to Negative
[*] S&P Puts Ratings on 5 Tranches From 2 Euro CLOs on Watch Neg.


R U S S I A

CARCADE LLC: Fitch Affirms BB+ LongTerm IDR, Outlook Stable
JSC ALFA-BANK: Fitch Alters Outlook on 'BB+' LT IDR to Stable
SISTEMA PJSFC: S&P Raises ICR to 'BB' on Improved Leverage
SOVCOMBANK LEASING: Fitch Alters Outlook on BB+ LT IDR to Stable


S P A I N

CAIXABANK LEASINGS 3: DBRS Lowers Series B Notes Rating to B(low)
CAIXABANK PYMES 11: DBRS Lowers Series B Notes Rating to CCC(high)
CATALONIA: DBRS Confirms BB(high) LT Issuer Rating, Stable Trend
CELLNEX TELECOM: S&P Affirms 'BB+' LongTerm ICR, Outlook Stable
DISTRIBUIDORA INT'L DE ALIMENTACION: S&P Downgrades IDR to 'SD'



T U R K E Y

DRIVER TURKEY 2018-1: Moody's Cuts Rating on Class A Notes to Ba3
[*] Moody's Cuts Ratings on Covered Bonds From 5 Turkish Banks


U K R A I N E

METINVEST BV: Fitch Rates Upcoming Unsecured Notes 'BB-(EXP)'
METINVEST BV: S&P Assigns 'B' Rating on New Senior Unsecured Notes


U N I T E D   K I N G D O M

ARDONAGH MIDCO: Fitch Affirms LT IDR at B-, Outlook Stable
AVON FINANCE 2: S&P Assigns Prelim. B- Rating on Class F Notes
CARTWRIGHT GROUP: Files Notice to Appoint Administrator
CASTELL PLC 2020-1: DBRS Gives Prov. BB (low) Rating on F Notes
FERGUSON MARINE: Unsecured Creditors to Get 9p for Every GBP1 Due

GVC HOLDINGS: S&P Alters Outlook to Stable & Affirms 'BB' ICR
INTU: Ellandi to Take Over Merry Hill Centre, 200 Jobs Saved
LANDMARK MORTGAGE 3: Fitch Affirms BB+sf Rating on Class D Notes
LIBERTY GLOBAL: Egan-Jones Hikes Senior Unsecured Ratings to B+
NEWDAY PARTNERSHIP: DBRS Confirms B Rating on 2 Note Classes

SUBSEA 7: Egan-Jones Lowers Senior Unsecured Ratings to BB+
WIGAN ATHLETIC: May Face Liquidation, Administrators Say


X X X X X X X X

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

                           - - - - -


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A R M E N I A
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IDBANK: Moody's Hikes LT Deposit Ratings to B2, Outlook Stable
--------------------------------------------------------------
Moody's Investors Service upgraded IDBank's long-term foreign and
local currency deposit ratings to B2 from B3, long-term
counterparty risk ratings (CRRs) to B1 from B2, the bank's baseline
credit assessment (BCA) and adjusted BCA to b2 from b3 and
long-term counterparty risk assessment (CR Assessment) to B1(cr)
from B2(cr). Concurrently, the rating agency affirmed Not Prime
short-term local and foreign currency deposit ratings, Not Prime
short-term local and foreign currency CRRs, and Not Prime(cr)
short-term CR Assessments.

At the same time, Moody's changed the outlook on the long-term
deposits ratings to Stable from Developing.

RATINGS RATIONALE

The rating action reflects reduced pressure on the bank's credit
profile as a result of (1) the recent favorable court ruling [1]
which dismissed a large claim of U$22 million (around AMD10
billion) filed against the bank in October 2017 and (2) improved
recovery prospects for large legacy problem loans along with their
increased coverage.

According to Moody's, the bank is no longer exposed to the risk of
potentially having to pay a large legal claim (litigation risk),
which was among the key factors constraining the bank's ratings in
recent years, given the substantial amount of claim (equivalent of
around 24% of the bank's equity). The legal case, that was
dismissed, had been filed by a defaulting customer in dispute of
the bank's sale of collateral assets.

The rating action also reflects improved recovery prospects for a
few large corporate legacy non-performing loans which accounted for
the largest portion of problem loans and Moody's expectation of
their gradual reduction over the next 12-18 months. Although,
IDBank's problem loans (comprising stage 3) remained high, the
level of their coverage by loan loss reserves materially increased
in recent years, easing pressure on the bank's solvency profile.

Pre-provision profitability remained robust, which together with
strong capitalisation, supports the bank's loss absorption
capacity. Moody's expects that with tangible common equity to risk
weighted assets of above 30% at end-2019, IDBank's capitalisation
will remain strong over the next 12-18 months.

In addition, the ratings will continue to be underpinned by the
bank's ample liquidity which consisted mainly of cash and liquid
government bonds.

STABLE OUTLOOK

The outlook on IDBank's deposit ratings is stable, reflecting
removed uncertainty related to litigation process. The stable
outlook also reflects Moody's view that the elevated risks stemming
from the deteriorated operating conditions in Armenia will be
counter-balanced by the bank's ample liquidity and robust capital
position. Thus, a likelihood of any rating changes for IDBank in
the next 12 to 18 months is limited.

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

A material improvement in asset quality could result in a positive
rating action. Negative pressure could be exerted on IDBank's
ratings if its financial fundamentals, notably asset quality,
capitalization and profitability, were to deteriorate significantly
beyond Moody's expectation.

LIST OF AFFECTED RATINGS

Issuer: IDBank

Upgrades:

Adjusted Baseline Credit Assessment, Upgraded to b2 from b3

Baseline Credit Assessment, Upgraded to b2 from b3

Long-term Counterparty Risk Assessment, Upgraded to B1(cr) from
B2(cr)

Long-term Counterparty Risk Rating, Upgraded to B1 from B2

Long-term Bank Deposits, Upgraded to B2 from B3, Outlook Changed to
Stable from Developing

Affirmations:

Short-term Counterparty Risk Assessment, Affirmed NP(cr)

Short-term Counterparty Risk Rating, Affirmed NP

Short-term Bank Deposits, Affirmed NP

Outlook Actions:

Outlook, Changed to Stable from Developing

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
Methodology published in November 2019.



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

BULGARIAN TELECOM: Moody's Withdraws Ba3 Corp. Family Rating
------------------------------------------------------------
Moody's Investors Service withdrawn the Ba3 corporate family rating
and the B1-PD probability of default rating (PDR) of Bulgaria's
leading integrated telecoms operator, Bulgarian Telecommunications
Company EAD (Vivacom). The outlook has been also withdrawn.

At the time of withdrawal, the ratings were on review for downgrade
following the announcement that Vivacom had received a buyout offer
for its entire share capital from United Group B.V. (rated at Adria
Midco B.V. level, "Adria", B2 stable). The acquisition closed in
July 2020.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings for its own business
reasons.

COMPANY PROFILE

Bulgarian Telecommunications Company EAD (Vivacom) is the national
telecom incumbent and leading integrated operator in Bulgaria,
providing mobile, fixed-line telephony, fixed-line broadband and
pay-TV services nationwide.




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C R O A T I A
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TZV GREDELJ: Tatravagonka Submits Sole Valid Bid for Business
-------------------------------------------------------------
Iskra Pavlova at SeeNews reports that Slovakian manufacturer of
freight railcars and bogies Tatravagonka submitted the sole valid
bid in the tender for investing in Croatian rolling stock producer
TZV Gredelj, which is undergoing bankruptcy proceedings.

TZV Gredelj said in an e-mailed statement Tatravagonka is proposing
to invest EUR45 million (US$53 million) in TZV Gredelj and its bid
contains all required documentation, including the necessary
guarantee of seriousness of the proposal, SeeNews relates.

TZV Gredelj received one more bid in the tender, from Zagreb-based
Dok-Ing, which offered to invest EUR35 million but failed to
provide all required documents, including the proposal seriousness
guarantee, as a result of which its bid was considered invalid,
SeeNews discloses.

According to SeeNews, in addition, Swiss rolling stock manufacturer
Stadler Rail notified TZV Gredelj's board of creditors that at this
moment it is unable to come up with a legally binding offer for the
Croatian company.

TZV Gredelj has been in bankruptcy since 2012, SeeNews notes.




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F R A N C E
===========

EUROPCAR MOBILITY: S&P Lowers ICR to 'CC', Outlook Negative
-----------------------------------------------------------
S&P Global Ratings downgraded Europcar Mobility Group to 'CC' from
'CCC+', and lowered its issue ratings on its revolving credit
facility (RCF) to 'CCC-', its fleet notes to 'CC', and its senior
unsecured notes to 'C'.

The negative outlook incorporates the group's intentions to pursue
debt-restructuring negotiations with corporate lenders. In S&P's
view, there is a high probability it will receive debt holders'
consent to pursue negotiations and ultimately restructure its debt.
If the company does not obtain consent or the restructuring
negotiations fail, it cannot rule out a conventional default.

The downgrade stems from Europcar's announcement that it intends to
engage in debt-restructuring negotiations.

On Sept. 7, 2020, Europcar announced that it intends to commence
discussions with its corporate debt creditors with the aim of
restructuring its financial debt to address the sustainability of
its capital structure and liquidity constraints, amid COVID-19
disruptions. To facilitate these discussions, Europcar will first
seek consent from its creditors and bondholders to appoint a
mandataire ad hoc or conciliateur, without triggering an event of
default, as defined in the relevant credit agreements and bond
documentations. S&P understands Europcar will seek consent from RCF
lenders and holders of the senior unsecured bond in the coming
weeks, subject to ongoing discussions and negotiations with
parties.

Given difficult economic conditions in the global leisure and
travel sector, and the group's leveraged corporate financial
position, S&P believes Europcar is highly likely to obtain the
consent waiver in the near term and will then seek to engage in
restructuring negotiations with its corporate lenders in coming
months. The company has not released any further details about its
intentions or actions regarding its capital structure.

S&P said, "Given the group's goal of resetting its capital
structure, we see a high probability of default.  We currently
forecast a material deterioration in the group's operating
performance in 2020 and 2021 due to COVID-19, resulting in a cash
burn of up to EUR500 million in 2020 and EUR200 million in 2021
under our base-case assumptions. In our view, the capital structure
is unsustainable, and debt restructuring is highly likely, given
the high level of debt and servicing costs. We understand that
Europcar is in the first instance seeking to negotiate with
corporate lenders to reduce the group's corporate debt structure,
comprising the EUR670 million senior secured RCF, EUR1.05 billion
of unsecured notes, EUR220 million of state-guaranteed loans in
France (Pret Garanti par l'Etat), and EUR50 million bilateral
credit line.

"Without the benefit of a successful restructuring transaction, we
also view the group as potentially exposed to a liquidity shortfall
in the short term. As of June 30, 2020, EUR160 million of
unrestricted cash was fully available to Europcar Mobility Group
S.A., and EUR38 million was available under its corporate RCF. In
addition, we understand another EUR200 million in cash is at
operating companies, but cannot be transferred to the group.
Upcoming maturities include a EUR50 million bilateral credit line
due in December 2020 and EUR500 million of fleet notes due November
2022. Lastly, we also note that under current lending documentation
the group has permitted indebtedness baskets allowing for a maximum
of EUR30 million in additional corporate financing."

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

-- Health and safety

S&P said, "The negative outlook incorporates that the group intends
to pursue debt-restructuring negotiations with corporate lenders.
In our view, there is a high probability the group will receive
consent from debtholders to pursue negotiations to restructure its
debt. If the company does not obtain consent or restructuring
negotiations fail, we cannot rule out a conventional default.

"We would lower our issuer credit rating on Europcar to either 'SD'
(selective default) or 'D' (default) and our issue ratings on the
securities involved to 'D', upon a default.

"We could also lower our issuer credit and issue ratings to 'D' if
Europcar was not successful in completing a restructuring
transaction and faced a conventional default. This could occur for
example if the company filed for bankruptcy, became insolvent, or
fell into payment default.

"We could raise the issuer credit rating if Europcar did not
receive the consent required to proceed with debt-restructuring
negotiations or failed to reach agreement for restructuring with
corporate lenders, and concurrently we no longer viewed default as
a virtual certainty. In our view, this would likely also include,
if the group received material additional extraordinary liquidity
support from its shareholders or governments without triggering a
default."


IMERYS SA: Egan-Jones Lowers Senior Unsecured Ratings to BB+
------------------------------------------------------------
Egan-Jones Ratings Company, on September 8, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Imerys SA to BB+ from BBB-.

Headquartered in Paris, France, Imerys SA produces and distributes
chemicals, pigments, and additives.




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

THYSSENKRUPP AG: Egan-Jones Lowers Senior Unsecured Ratings to B
----------------------------------------------------------------
Egan-Jones Ratings Company, on September 8, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Teekay Corporation to B from BB-. EJR also
downgraded the rating on commercial paper issued by the Company to
B from A3.

Headquartered in Essen, Germany, thyssenkrupp AG manufactures
industrial components.




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

ARES EUROPEAN VII: Moody's Confirms B2 Rating on Class E-R Notes
----------------------------------------------------------------
Moody's Investors Service confirmed the ratings on the following
notes issued by Ares European CLO VII B.V.:

EUR20,000,000 Class C-R 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

EUR29,000,000 Class D-R 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

EUR12,500,000 Class E-R 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:

EUR265,000,000 Class A-1-R Senior Secured Floating Rate Notes due
2030, Affirmed Aaa (sf); previously on Aug 15, 2017 Definitive
Rating Assigned Aaa (sf)

EUR52,000,000 Class A-2A-R Senior Secured Floating Rate Notes due
2030, Affirmed Aa2 (sf); previously on Aug 15, 2017 Definitive
Rating Assigned Aa2 (sf)

EUR10,000,000 Class A-2B-R Senior Secured Fixed Rate Notes due
2030, Affirmed Aa2 (sf); previously on Aug 15, 2017 Definitive
Rating Assigned Aa2 (sf)

EUR29,000,000 Class B-R Senior Secured Deferrable Floating Rate
Notes due 2030, Affirmed A2 (sf); previously on Aug 15, 2017
Definitive Rating Assigned A2 (sf)

Ares European CLO VII B.V., issued in September 2014 and reset in
August 2017, is a collateralised loan obligation (CLO) backed by a
portfolio of mostly high-yield senior secured European loans. The
portfolio is managed by Ares European Loan Management LLP. The
transaction's reinvestment period will end in October 2021.

The action concludes the rating review on the Classes C-R, D-R and
E-R notes initiated on June 03, 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 confirmations on the Class C-R, D-R and E-R notes and
rating affirmations on Class A-1-R, A-2A-R, A-2B-R and B-R notes
reflect the expected losses of the notes continuing to remain
consistent with their current ratings despite the risks posed by
credit deterioration, which have been primarily prompted by
economic shocks stemming from the coronavirus outbreak. 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.

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). According
to the trustee report dated August 2020[1], the WARF was 3277,
compared to value of 2937 as per the February 2020[2] report.
Securities with ratings of Caa1 or lower currently make up
approximately 1.8% of the underlying portfolio. 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).

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 449.1 million,
a weighted average default probability of 25.8% (consistent with a
WARF of 3288 over a weighted average life of 5.18 years), a
weighted average recovery rate upon default of 45.6% for a Aaa
liability target rating, a diversity score of 56 and a weighted
average spread of 3.59%.

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 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.

  -- 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.


NEW LOOK: Confirmation of Examiner Appt. for Irish Unit Adjourned
-----------------------------------------------------------------
Mary Carolan at The Irish Times reports that an application to
confirm the appointment of an examiner to the Irish arm of the
fashion retail chain New Look has been adjourned at the High Court
following concerns from landlords.

Kelley Smith BL, for the company, secured an adjournment on Sept.
16 of the application from Mr. Justice Denis McDonald to allow her
side to reply to affidavits provided on behalf of the landlords,
The Irish Times relates.

According to The Irish Times, Rossa Fanning SC, for a number of
landlords, said the company had cash reserves of some EUR15.6
million on the date the petition for examinership was presented
last month and was not insolvent.

He said his side was very concerned about prepetition liabilities
and that the company had withheld rent payments to landlords when
it had resources to make the payments, The Irish Times notes.

He outlined the landlords are concerned the company had sought to
"contrive" insolvency for the purposes of using examinership to
reduce its long-term liabilities even though its business was
profitable for the last two financial years, The Irish Times
discloses.

The counsel, as cited by The Irish Times, said they believed the
company was seeking "to ride on the coat-tails" of a Company
Voluntary Arrangement voted upon on Sept. 15 in England in respect
of which the parent company did much the same thing.

Mr. Fanning, with Brian McGuckian BL, was appearing on behalf of
companies which are the landlords of New Look's stores in Liffey
Valley shopping centre, Dublin; Navan Town Centre, Co Meath;
Fairgreen Shopping Centre, Mullingar, Co Westmeath and the
Castlewest Shopping Centre, Ballincollig, Co Cork, The Irish Times
notes.

The judge adjourned to Sept. 29 the application to confirm the
appointment of Ken Fennell, of Deloitte, as examiner, The Irish
Times states.  Court protection and Mr. Fennell's appointment as
interim examiner continues until then, The Irish Times says.

New Look Retailers (Ireland) Limited, which operates 27 stores and
employs 475 people, sought examinership last month due to financial
difficulties and losses caused by the fallout from the Covid-19
pandemic, The Irish Times recounts.  At the August hearing, Mr.
Justice Max Barrett said he was satisfied to appoint Mr. Fennell as
interim examiner, noted the company's financial difficulties and
that an independent expert was of the view it has a reasonable
prospect of survival as a going concern if certain steps are taken,
The Irish Times discloses.

According to The Irish Times, in seeking Mr. Fennell's appointment,
Ms. Smith said, in the recent past, the company had been profitable
but, like many other businesses, had been badly hit by the Covid-19
pandemic.  Its stores were closed after the country went into
lockdown in March and reopened on a phased basis from June, The
Irish Times relates.

The counsel said the company had suffered losses due to the
closures and reduced footfall in its stores, and, as things stand,
expects to be cash flow insolvent and unable to pay its debts as
they fall due by October, The Irish Times notes.

The court heard its biggest creditors are Revenue and its
landlords, The Irish Times relays.  The court was told that as part
of the proposed examinership process the company will be seeking
reductions on its leases, which may have to be repudiated, The
Irish Times recounts.

According to The Irish Times, Ms. Smith said the independent
expert's report showed appointment of an examiner to put together a
survival scheme was in the best interests of all stakeholders,
including the firm's 475 employees.  She added the report stated
all the relevant stakeholders would fare much better through a
successful examinership process compared to liquidation, The Irish
Times notes.




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I T A L Y
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SESTANTE FINANCE 3: Fitch Lowers Rating on Class C1 Notes to 'Csf'
------------------------------------------------------------------
Fitch Ratings has downgraded Sestante Finance S.r.l. - 3's (SF3)
class C1 notes and affirmed the other classes. Fitch has also
removed affected classes from Rating Watch Negative (RWN).

RATING ACTIONS

Sestante Finance S.r.l. - 4

Class A2 IT0004158157; LT BBB-sf Affirmed; previously BBB-sf

Class B IT0004158165; LT CCsf Affirmed; previously CCsf

Class C1 IT0004158249; LT Csf Affirmed; previously Csf

Class C2 IT0004158264; LT Csf Affirmed; previously Csf

Sestante Finance 2 S.r.l.

Class A IT0003760136; LT AA-sf Affirmed; previously AA-sf

Class B IT0003760193; LT BBB+sf Affirmed; previously BBB+sf

Class C1 IT0003760227; LT BB-sf Affirmed; previously BB-sf

Class C2 IT0003760243; LT B+sf Affirmed; previously B+sf

Sestante Finance S.r.l

Class A1 IT0003604789; LT AA-sf Affirmed; previously AA-sf

Class B IT0003604839; LT AA-sf Affirmed; previously AA-sf

Class C IT0003604854; LT AA-sf Affirmed; previously AA-sf

Sestante Finance S.r.l. - 3

Class A IT0003937452; LT Asf Affirmed; previously Asf

Class B IT0003937486; LT Bsf Affirmed; previously Bsf

Class C1 IT0003937510; LT Csf Downgrade; previously CCsf

Class C2 IT0003937569; LT Csf Affirmed; previously Csf

TRANSACTION SUMMARY

Sestante Finance S.r.l. (SF1), Sestante Finance S.r.l. 2 (SF2), SF3
and Sestante Finance S.r.l. 4 (SF4) were originated by Meliorbanca
(part of the BPER Banca banking group, BB/RWN/B) and are serviced
by Italfondiario as master servicer (RMS2+) and doValue as primary
and special servicers (RSS1-/RPS2+).

KEY RATING DRIVERS

Removed From RWN

Fitch has removed notes from RWN where they were placed in April in
response to the coronavirus outbreak. Fitch has analysed the
transactions under its coronavirus assumptions and Fitch considered
all affected ratings sufficiently robust to be affirmed.

Coronavirus-related Assumptions

Fitch expects a generalised weakening in borrowers' ability to keep
up with mortgage payments due to the economic impact of the
coronavirus pandemic and the related containment measures. As a
result, Fitch applied coronavirus assumptions to the mortgage
portfolios. Fitch also applied a payment holiday stress for the
first 12 months of projected collections, assuming 10% of interest
collections will be lost and related principal receipts will be
delayed. This reflects the current payment holiday data provided by
the servicer plus a sizeable margin of safety. The servicer data
show that loans benefiting from a payment holiday account for a
percentage of the portfolio balance net of outstanding defaults
that ranges between 1.1% and 2.2% across the four transactions.

Weakening Asset Performance

Loans that are three months or more in arrears have increased since
its previous review across almost all of the four transactions, and
currently range between 7.0% and 8.1%. The only exception is SF2,
where these arrears marginally decreased to 7.0% from 7.2%.
However, one month plus arrears significantly increased for all
transactions over the last two collection periods and currently
range between 12.1% and 13.8%, from 8.5% and 11.4% previously,
which is their highest levelto date. Fitch applies a foreclosure
frequency floor for loans in arrears to account for the increased
default risk.

SF3 Class C1 Notes Irrevocably Impaired

The outstanding principal balance of SF3's class C1 notes is not
expected to be repaid in full during the life of the transaction.
The outstanding principal deficiency ledger (PDL) balance (EUR17.9
million) is insufficient to fully cover the gap between the
collateralised notes' balance and the portfolio balance net of
defaults (EUR18.3 million). This implies that even if during the
remaining life of the transaction enough excess spread was
available to fully clear the outstanding PDL balance, the class C1
notes (the most junior among the collateralised notes) would remain
unpaid by EUR331,000 (equivalent to 1.5% of the notes' current
balance).

Use of SF3 Liquidity Line Non-Compliant

According to the transaction documents, SF3's liquidity facility
(LF) should be used to cover interest shortfalls on the mezzanine
notes regardless of any cumulative default trigger breach. However,
this is currently not the case as interest on the class C notes
remains unpaid despite the availability of the LF. Fitch
acknowledges that the current use of the LF is more protective of
the senior tranche, but it rates and maintains its ratings in
accordance with legal documentation, and the current analysis has
been run accordingly.

Highest Ratings at Sovereign Cap

The cap applied to Italian SF transactions constrains the highest
rating of the notes at 'AA-sf', whose Stable Outlook reflects that
on the sovereign rating (BBB-/Stable).

SF3 has an ESG Relevance Score of 5 for Governance due to the
ambiguity surrounding the current use of the LF, which is not fully
consistent with the transaction documents, which has a negative
impact on the credit profile, and is highly relevant to the rating,
resulting in a lower rating for class A notes.

RATING SENSITIVITIES

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

Stable to improved asset performance driven by stable delinquencies
and defaults would lead to increasing credit enhancement and
potential upgrades. Fitch tested an additional rating sensitivity
scenario by applying a decrease in the foreclosure frequency of 15%
and an increase in the recovery rate of 15%. The results indicate a
one- or two-notch upgrade for some notes across all transactions
but SF1's (which are already rated at the highest possible level
for Italian securitisation notes).

SF3's class A notes rating reflects the ambiguity surrounding the
current use of the LF, which is not fully consistent with the
transaction documents. If the documents are amended to clarify that
the mezzanine notes can only benefit from the LF in the absence of
trigger breaches, the rating of the class A notes would be
upgraded.

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

The broader global economy remains under stress due to the
coronavirus pandemic, with surging unemployment and pressure on
businesses stemming from social-distancing guidelines. Fitch
acknowledges the uncertainty of the path of coronavirus-related
containment measures and has therefore considered more severe
economic scenarios.

As outlined in "Fitch Ratings Coronavirus Scenarios: Baseline and
Downside Cases — Update", Fitch considers a more severe downside
coronavirus scenario for sensitivity purposes whereby a more severe
and prolonged period of stress is assumed. Under this scenario,
Fitch assumed a 15% increase in the weighted average foreclosure
frequency and a 15% decrease in the weighted average recovery rate.
The results indicate an adverse rating impact of up to three
notches in the Sestante Finance transactions.

The transactions' performance may be affected by changes in market
conditions and economic environment. Weakening asset performance is
strongly correlated to increasing levels of delinquencies and
defaults that could reduce credit enhancement (CE) available to the
notes.

Additionally, unanticipated declines in recoveries could also
result in lower net proceeds, which may make certain notes' ratings
susceptible to potential negative rating actions depending on the
extent of the decline in recoveries. Fitch conducts sensitivity
analyses by stressing both a transaction's base-case FF and RR
assumptions, and examining the rating implications on all classes
of issued notes.

The rating of SF1's notes and SF2's class A notes are sensitive to
changes in Italy's Long-Term Issuer Default Rating (IDR). Changes
to Italy's IDR and the rating cap for Italian structured finance
transactions, currently 'AA-sf', could trigger rating action on
these notes.

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. There were no findings that affected
the rating analysis. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Fitch did not undertake a review of the information provided about
the underlying asset pools ahead of the transactions' initial
closing. The subsequent performance of the transactions over the
years is consistent with the agency's expectations given the
operating environment and Fitch is therefore satisfied that the
asset pool information relied upon for its initial rating analysis
was adequately reliable.

Overall, 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.

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

SF1's notes rating and SF2's class A notes rating are directly
driven by Italy's Long-Term IDR. Changes to Italy's IDR and the
rating cap for Italian structured finance transactions, currently
'AA-sf', could trigger rating action on these notes.

ESG CONSIDERATIONS

SF3 has an ESG Relevance Score of 5 for Governance due to the
ambiguity surrounding the current use of the LF, which is not fully
consistent with the transaction documents, which has a negative
impact on the credit profile, and is highly relevant to the rating,
resulting in a lower rating for the class A notes.

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




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

CAMELOT FINANCE: Moody's Rates $1.6BB Incremental Term Loan 'B2'
----------------------------------------------------------------
Moody's Investors Service assigned a B2 rating to Camelot Finance
SA's proposed $1.6 billion incremental senior secured first-lien
term loan. Camelot Finance SA is a wholly-owned intermediate
holding company of Camelot UK Holdco Limited, which will be a
guarantor of the new facility. Clarivate's B2 Corporate Family
Rating (CFR) and stable outlook remain unchanged.

Net proceeds from the incremental term loan plus cash-on-hand will
be used to refinance approximately $2 billion USD equivalent of
debt and notes residing at intellectual property (IP) management
services and software firm Capri Acquisitions BidCo Limited (d/b/a
"CPA Global"), which Clarivate is acquiring in an all-stock
transaction valued at $6.8 billion. Clarivate will exchange
approximately $6.3 billion of its common shares for CPA Global's
equity, which is majority-owned and controlled by Leonard Green &
Partners, L.P. Subject to customary regulatory approvals, the
transaction is expected to close in early October 2020.

Following is a summary of the rating actions:

Assignment:

Issuer: Camelot Finance SA (Co-Borrowers: Camelot US Acquisition
LLC, Camelot US Acquisition 1 Co and Camelot US Acquisition 2 Co)

$1,600 Million Gtd Incremental Senior Secured First-Lien Term Loan
B due 2026, Assigned B2 (LGD3)

The assigned rating is subject to review of final documentation and
no material change in the size, terms and conditions of the
transaction as advised to Moody's. The new incremental term loan B
will be pari passu with the existing senior secured first-lien term
loan B, have the same maturity and collateral package and benefit
from the same guarantors on a senior secured basis.

RATINGS RATIONALE

Though pro forma gross debt will increase, the transaction is
leverage and ratings neutral due to the inclusion of CPA Global's
LTM EBITDA and full twelve months impact of EBITDA from Clarivate's
DRG acquisition, which was purchased in March 2020. As such,
Moody's expects the company's pro forma total debt to EBITDA to
remain near the 5.8x level (Moody's adjusted) recorded at June 30,
2020. Inclusive of the approximate $124 million of realized annual
run-rate cost savings, pro forma financial leverage is estimated at
4.8x (Moody's adjusted).

CPA Global is the leading provider of patent renewals with a 35%
global market share and around $500 million in revenue. Since
Clarivate competes in the same market, the merger will create a
scaled player and grow Clarivate's IP business to account for about
half of the combined company's pro forma revenue of $1.7 billion
(includes DRG revenue). The transaction values CPA Global at
roughly 20x 2020 EBITDA pre-synergies, which includes a tax step-up
benefit estimated at a present value of $900 million, or 16x
including $75 million of run-rate cost synergies (achievable within
18 months from closing).

Clarivate's B2 CFR is supported by the company's leading global
market positions across its core scientific/academic research and
intellectual property businesses. The rating also considers the
high proportion of subscription-based recurring revenue (~80% of
revenue) and high switching costs derived from Clarivate's
proprietary data extraction methodology, which facilitates
development of value-added databases that are considered the
"gold-standard" among its clients. Given that its mission-critical
subscription products are embedded in customers' core operations
and research workflows, customer renewals and retention rates on a
weighted average basis have remained above 90%. Clarivate also
benefits from good diversification across end markets, geography
and customers and relatively high EBITDA margins in the 30%-40%
range (Moody's adjusted, excluding one-time cash items). With the
expected elimination of one-time cash costs associated with the
carve-out from Thomson Reuters by year end 2020, the company's low
net working capital and "asset-lite" operating model should
facilitate good conversion of EBITDA to positive free cash flow.

Factors that weigh on the rating include Clarivate's moderately
high pro forma financial leverage and low single-digit percentage
organic revenue growth rate, influenced by transactional revenue
declines partially offset by subscription revenue growth. Further,
transactional revenue is more vulnerable to reduced demand caused
by the economic conditions arising from the coronavirus pandemic.
Clarivate faces competitive challenges from industry players that
are amassing scale as well as new technology entrants, and
regulatory changes that could restrict its access to data. Low
single-digit percentage revenue growth at North American
universities coupled with consolidation across the pharmaceutical
industry could lead to customer budget constraints in the future.
The credit profile is also influenced by governance risks related
to private equity ownership, such as sizable debt-financed cash
distributions to shareholders or growth-enhancing acquisitions,
which could pose integration challenges and lead to volatile credit
metrics in the future.

The stable outlook reflects Moody's view that Clarivate's business
model and operating profitability will remain fairly resilient
during the economic recession, experience low-to-mid-single digit
organic revenue and EBITDA growth and generate solid free cash flow
this year. Moody's expects the company will maintain good
liquidity, even during the remainder of the economic recession, and
use free cash flow to reduce debt towards a long-term net leverage
target of around 3x (approximately 4.75x gross leverage on a
Moody's adjusted basis).

Over the next 12-18 months, Moody's expects good liquidity
supported by positive free cash flow generation in the range of
3%-4% of total debt (Moody's adjusted), solid cash levels (cash
balances totaled $609 million at June 30, 2020) and access to its
$250 million revolving credit facility.

The rapid spread of the coronavirus outbreak, deteriorating global
economic outlook, low oil prices, and high asset price volatility
have created an unprecedented credit shock across a range of
sectors and regions. Moody's regards the coronavirus outbreak as a
social risk under its ESG framework, given the substantial
implications for public health and safety. As a result of
Clarivate's exposure to the US and overseas economies, the company
remains vulnerable to shifts in market demand and business and
consumer sentiment in these unprecedented operating conditions.

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

Ratings could be upgraded if Clarivate demonstrates organic revenue
growth in the mid-single digit percentage range and EBITDA
expansion that leads to consistent and growing free cash flow
generation of at least 6% of total debt (Moody's adjusted).
Additionally, upward rating pressure could occur if total debt to
EBITDA is sustained below 4.5x (Moody's adjusted) and the company
exhibits prudent financial policies and a good liquidity profile.

Ratings could be downgraded if total debt to EBITDA was sustained
above 6.5x (Moody's adjusted) or free cash flow were to materially
weaken below 2% of total debt (Moody's adjusted) due to
deterioration in operating performance. Market share erosion,
liquidity deterioration, significant client losses or if Clarivate
engages in debt-financed acquisitions or shareholder distributions
resulting in leverage sustained above Moody's downgrade threshold
could also result in ratings pressure.

The principal methodology used in this rating was Business and
Consumer Service Industry published in October 2016.


MARCEL LUX IV: Moody's Affirms B3 CFR on Rancher Acquisition
------------------------------------------------------------
Moody's Investors Service affirmed the corporate family rating
(CFR) of Marcel Lux IV S.a.r.l. at B3 and affirmed the probability
of default rating (PDR) at B3-PD. Moody's has also affirmed the
instrument ratings of the senior secured bank credit facilities at
B2 of Marcel Bidco GmbH and Marcel BidCo LLC and assigned a B2
instrument rating to the new $300 million equivalent term loan,
issued by Marcel Lux Debtco S.a.r.l. The outlook on all ratings is
stable.

The proceeds of the new facility combined with cash on hand and
equity of $197 million will be used to finance the acquisition of
the open-source Kubernetes container management platform Rancher
which has been announced in July 2020.

RATINGS RATIONALE

The rating action primarily reflects the high leverage of close to
8x following the acquisition of Rancher as well as the diluted
margin profile of the combined entity, as the acquired business is
in a phase of rapid growth and is expected to contribute to the
group's EBITDA from 2022. In particular, the stable outlook
reflects the expectation to reduce leverage back to levels for the
B3 rating category in the next 12-18 months and the continued
ability to generate positive free cash flows going forward. Driven
by the high leverage and the strong growth necessary to achieve the
deleveraging the rating is weakly positioned.

The B3 CFR additionally reflects (i) the company's position as
distant number two player in a niche market and the resulting
limited scale measured by revenue; (ii) the predominantly indirect
nature of customer relationships due to the increasing reliance on
indirect sales channels (e.g. cloud service providers, OEMs,
hardware vendors) with some concentration in these intermediaries;
and (iii) the effects of customer transitions to the cloud, such as
shortening average contract duration and resulting less favourable
cash flow dynamics, as well as potentially increasingly indirect
relationships with end customers.

However, the B3 rating also reflects SUSE's track record of
sustained good growth over the last years as part of Micro Focus
and on a stand-alone basis since 2018 as well as the cash
generative nature of the business supported by strong EBITDA
margins and limited overall investment needs, despite sizable
one-off cash costs related to the carve-out over 2019-20. In
addition, it reflects (i) the company's position as one of two main
paid Linux enterprise operating system (OS) providers with solid
positions in certain customer segments (i.e. its SAP, IBM, HPE
relationships), (ii) the strong growth dynamics in the core server
OS market fueled by the increasing use of Linux as the preferred
cloud server OS and the strong demand for Rancher Kubernetes
solutions although the track record is so far limited, (iii) good
revenue visibility resulting from a subscription-based,
upfront-cash business model and high stickiness of the product and
(iv) the company's geographically diversified revenue base with
multiple distribution channels.

OUTLOOK

The stable outlook reflects its expectation that the leverage will
not exceed 8x (Moody's adjusted) in the next 12-18 months, a level
that is commensurate with a B3 rating. Additionally, it reflects
the expected realization of synergies and sustainable cost
reductions to cope with the initial margin deterioration and risks
around the expected strong growth of the acquired business in a
swiftly developing market environment with related substitution
risk.

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

Positive pressure on the rating could result from SUSE's continued
strong performance in its core market and return to visible
reported EBITDA growth following the dilution from the Rancher
acquisition such that Moody's adjusted debt/EBITDA declines
sustainably below 6.5x while the free cash flow generation is
maintained at or above 5% free cash flow/debt (Moody's adjusted).

Conversely, negative pressure on the rating could arise from free
cash flow (after interest) turning negative or lack of EBITDA
growth. Leverage increasing above 8x could in any case strain the
rating as would a significant weakening of the company's liquidity
profile. Any shareholder distributions as well as debt-funded
acquisition will create negative pressure on the rating as well.

LIQUIDITY

Fitch views SUSE's liquidity profile as adequate. Following the
acquisition of Rancher, Fitch expects around $25 million of cash on
balance sheet, which is complemented by the fully undrawn $81
million revolving credit facility (RCF) due 2025. Fitch also
expects the company to continue to generate free cash flow. The RCF
is subject to a springing total net leverage covenant tested when
the facility is drawn for more than 40%. The covenant is set at
8.09x (calculated as per the definition in the Syndicated Facility
Agreement), and Fitch expects the company to retain sufficient
capacity.

STRUCTURAL CONSIDERATIONS

The rated first-lien debt, comprising the $360 million, EUR300
million equivalent senior secured term loan B, both due 2026, the
new $300 million term loan B due in 2027, as well as the $81
million senior secured RCF due 2025, benefits from first-ranking
security interests in shares, bank accounts and intercompany
receivables, and a guarantor coverage of at least 80% of the
company's consolidated EBITDA, tested annually. The debt ranks
ahead of the unrated second-lien $270 million debt and is
consequently rated B2, one notch above the company's B3 corporate
family rating.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Moody's takes into account the impact of environmental, social and
governance (ESG) factors when assessing companies' credit quality.
SUSE's ratings factor in its private equity ownership and an
aggressive financial policy, illustrated by its very high financial
leverage with an additional meaningful debt quantum to finance the
significant purchase price for Rancher.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Software
Industry published in August 2018.


MARCEL LUX IV: S&P Alters Outlook to Negative on Rancher Deal
-------------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable and
affirmed its ratings, including its 'B' long-term issuer credit
rating, on Linux software and service provider Marcel Lux IV
(SUSE). S&P also assigned its 'B' issue rating and '3' recovery
rating to the proposed $300 million first-lien term loan.

The negative outlook reflects the limited headroom under the rating
over the next 12 months, in light of weaker credit metrics compared
with 'B' rated software peers because of the Rancher acquisition.

On July 7, 2020, SUSE agreed to acquire open source container
management platform provider Rancher Labs for $530 million.

The Rancher acquisition significantly increases SUSE's leverage,
but is partly offset by resilient cash flow of the company's core
business. SUSE will fund the acquisition with a new $300 million
first-lien term loan, $197 million of equity, and cash from the
company's balance sheet. S&P said, "We forecast that the majority
debt-funded transaction, coupled with loss-making Rancher's
business and high integration costs, will materially increase
SUSE's S&P Global Ratings-adjusted pro forma leverage to about 9.2x
in fiscal 2020 and 7.5x in 2021, much higher than our previous
expectation of 6.6x and close to downside trigger of 8x.
Nevertheless, we think SUSE's strong cash flow generation ability,
with a forecast pro forma free operating cash flow (FOCF) of more
than $75 million and FOCF to debt of about 6.3% in 2021, currently
continues to support the 'B' ratings."

The company's revenue will likely accelerate in the near-to-medium
term. S&P said, "We anticipate SUSE's revenue will grow by more
than 15% in 2021-2022 compared with our previous forecast of
10%-12%, underpinned by fast growing Rancher business. In 2019,
Rancher more than doubled its annual recurring revenue to $24
million and expects this to increase to about $50 million in 2020,
stemming from rapidly growing container adoption. We think
Rancher's products are highly complementary to SUSE's core business
of managing applications in multiple IT environments." Therefore,
SUSE will be able to leverage Rancher's more advanced container
management services to drive its topline growth, while gradually
improving its margins on the expected cost synergies.

Further debt-funded acquisitions or dividend distributions could
result in a downgrade, considering the very limited headroom under
the rating. S&P sees a risk that SUSE's owner, EQT, could pursue
acquisitions or dividends distributions to fully use the company's
cash flow. In its view, this will limit SUSE's organic deleveraging
prospect and could contribute to pressure on the ratings. However,
EQT has demonstrated willingness to support acquisitions with
partial equity funding to enhance SUSE's product offerings and
long-term growth.

The negative outlook reflects the limited headroom under the rating
over the next 12 months, in light of weaker credit metrics compared
with 'B' rated software peers following the Rancher acquisition.

S&P said, "We could lower our rating if lower-than-expected revenue
growth or EBITDA margins, or an aggressive financial policy, were
to leave SUSE's adjusted leverage above 8x in fiscal 2021, without
a clear perspective for a further decline below 8.0x thereafter, or
if adjusted FOCF to debt stayed below 5%.

"We could revise the outlook back to stable if SUSE reduced
adjusted debt to EBITDA to sustainably below 8.0x while achieving
FOCF to adjusted debt above 5% in 2021."




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

TMF SAPPHIRE: Moody's Alters Outlook on B3 CFR to Stable
--------------------------------------------------------
Moody's Investors Service changed the outlook to stable from
negative and affirmed the B3 corporate family rating (CFR) and
B3-PD probability of default rating (PDR) of TMF Sapphire Midco
B.V. (TMF). Concurrently, Moody's has affirmed B2 instrument
ratings of the EUR950 million 1st lien senior secured term loan and
the EUR150 million senior secured revolving credit facility (RCF)
as well as the Caa2 instrument rating on the EUR200 million 2nd
lien senior secured term loan, all at the level of TMF Sapphire
Bidco B.V. and changed the outlook to stable from negative.

The rating action reflects an improvement in operating performance
and liquidity profile in the first half of 2020 and Moody's
expectation that credit metrics will continue to improve.

RATINGS RATIONALE

The outlook change is driven by an improvement in operating
performance of TMF in the first half of 2020 and the expectation of
further improvements of operating performance and financial
leverage going forward. The company has recorded organic revenue
growth of 6% in the period, despite the negative impact of the
coronavirus uncertainty on the pace of new business. At the same
time, EBITDA margin improved significantly supported by revenue
growth and cost saving initiatives, including the benefits of
restructuring in the Netherlands. As a result, the company posted
an EBITDA growth of around 12% during the first half of 2020 which
in turn allowed the company to outperform its budget. The
improvement in profitability, coupled with improvements in
receivables collection has significantly improved the company's
free cash flow (FCF) generation which Moody's expects to be around
EUR20 million in 2020 (compared to around EUR25 million negative in
2019). While Moody's believes that the recessionary impact of the
coronavirus pandemic will dampen the growth prospects of the market
in the next one or two years, an increase in customer retention as
part of TMF's strategy is expected to compensate for a decline in
new business. Business volume growth together with cost savings
initiatives should allow its earnings to further strengthen in
2021. As such Moody's adjusted debt/EBITDA (excluding overdrafts)
is expected to decline below 7.0x in the next 12-18 months.

That said, the ratings remain constrained by the high leverage and
the company's acquisitive growth strategy, which could slow the
deleveraging pace. In addition, Moody's recognizes company's
exposure to the regulatory and legal risks inherent to the
industry.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Governance considerations factored into the rating include the
company's aggressive financial strategy, characterized by the
highly levered capital structure. Moody's also notes that the
company has been undergoing several management changes in the
recent past which have created some uncertainty regarding the
strategic direction of the business. Nevertheless, Moody's
recognizes that the current management team is making good progress
on the business turnaround since late 2019 and expects continued
strategy and budget execution going forward.

STRUCTURAL CONSIDERATIONS

The B2 rating on the pari passu ranked 1st lien term loan and RCF
is one notch above the CFR of B3 of TMF Sapphire Midco B.V. which
reflects the seniority of these facilities in relation to the Caa2
second-lien term loan and the unsecured lease rejection claims
under Moody's loss given default methodology (LGD). The company's
facilities benefit from guarantees from a number of guarantors
which together represent no less than 70% of TMF's consolidated
adjusted EBITDA.

The structure includes shareholder funding instrument, in the form
of intercompany loan, which amounted to approximately EUR398
million as of June 30, 2020 and which Moody's treats as equity.

LIQUIDITY

Moody's considers TMF's liquidity to be adequate, based on its
expectation of positive FCF in the next 12-18 months. It is
supported by around EUR102 million of cash balances as of June-end
2020, which included EUR59 million of drawings under the company's
EUR150-million-equivalent revolving credit facility (RCF). Fitch
understands that the RCF has been fully repaid in August 2020. The
RCF has one springing covenant (first-lien net leverage, a maximum
of 9.50x versus the actual 5.9x as of June-end 2020) that is tested
when the facility is drawn by more than 40%. Fitch expects the
company to be in compliance with the springing covenant at all
times.

OUTLOOK

The stable outlook reflects Moody's expectation that the positive
momentum of operational performance improvements will be sustained
over the next 12-18 months, allowing the Moody's-adjusted
debt/EBITDA (excluding overdrafts) to decline below 7.0x. Moody's
also expects that the group will continue to generate positive FCF
and maintain its adequate liquidity profile.

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

Positive rating pressure could arise if the deleveraging pace is
faster than Moody's expectation, such that Moody's-adjusted
debt/EBITDA (excluding overdrafts) falls towards 6.0x;
EBITA/Interest remains around 2.0x and FCF / Debt (excluding
overdrafts) increases to around 3% or above.

Negative rating pressure could arise if Moody's-adjusted gross
debt/EBITDA (excluding overdrafts) increases towards 8.0x; EBITA/
Interest declines towards 1.0x; FCF turns negative on a sustained
basis resulting in deterioration of company's liquidity profile; or
the company undertakes debt-funded shareholder distributions or
acquisitions, which result in weakening of credit metrics and
liquidity.

LIST OF AFFECTED RATINGS:

Issuer: TMF Sapphire Bidco B.V.

Affirmations:

BACKED Senior Secured Bank Credit Facility, Affirmed B2

BACKED Senior Secured Bank Credit Facility, Affirmed Caa2

Outlook Actions:

Outlook, Changed to Stable from Negative

Issuer: TMF Sapphire Midco B.V.

Affirmations:

LT Corporate Family Rating, Affirmed B3

Probability of Default Rating, Affirmed B3-PD

Outlook Actions:

Outlook, Changed To Stable From Negative

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

TMF Sapphire Midco B.V. (TMF or the company) is a global provider
of business process services, mainly for companies, as well as for
individuals, funds and structured finance vehicles, with 57% of
revenue generated in EMEA, including 33% in Benelux and Western
Europe, in 2019. The company's Global Business Services (GBS)
division represents 62% of its revenue and provides integrated
legal, tax, administrative (including payroll) and accounting
services for companies. The Trust and Corporate Services (TCS)
division generates 38% of revenue and provides services associated
with the creation and administration of financial vehicles, the
administration of corporate structures for high-net-worth
individuals and the administration of alternative investments,
especially for the private equity and real estate sectors. Since
2018, TMF has been owned by funds ultimately controlled by CVC,
while its current and previous management hold an aggregate stake
of less than 10%.


WERELDHAVE NV: Moody's Alters Outlook on B1 CFR to Negative
-----------------------------------------------------------
Moody's Investors Service confirmed the corporate family rating and
the rating on the senior unsecured bonds ratings of Wereldhave N.V.
at B1. The outlook was changed to negative from ratings under
review.

"The rating confirmation and the change of the outlook follows
Wereldhave's announcement of agreements for further debt facilities
that should remove the company's imminent refinancing needs and
help its liquidity position" says Oliver Schmitt, Senior Credit
Officer at Moody's. "Looking ahead, a stabilisation of the outlook
or a rating improvement would require execution on the company's
plans to increase covenant headroom".

RATINGS RATIONALE

On September 7, 2020, Wereldhave announced agreement on new and
amended debt facilities representing over EUR130 million. This
should remove most of the pressure with respect to refinancing
requirements, while Fitch still considers the liquidity situation
to be tight. With the refinancing activity announced, the company
should be able to meet its obligation through the liquidity
bottleneck in Q2 next year, not considering any further actions
that the company currently pursues to further improve the liquidity
situation. Fitch does expect the company to secure further funding
in the next months.

While the immediate risk related to refinancing has reduced, a
stabilisation or improvement of Wereldhave's credit profile would
require a larger buffer to its financial covenants, reflecting in
the negative outlook. Based on its understanding, the covenant
headroom allows less than a 20% fall in property values from its
reported value in H1 2020, considering the implications from the
updated funding. While this headroom is still meaningful, the
current investment market environment for retail properties is
weak, with further value declines widely expected. Fitch has
reflected the possibility of further falls of value of up to 20% in
the next 18 months in its ratings, but also expect the company to
take action to avoid any covenant breach through property sales or
other measures.

The company has announced a strategic sale of the French portfolio
activities early 2020, which is subject to substantial execution
and price risk, also reflected in the negative outlook. The company
expects the sale to delever the company and enable investments into
its remaining property portfolio.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook further reflects the ongoing transmission of
the coronavirus economic implications on retail tenants and
consumers. While certain countries and property types show
encouraging recoveries, the retail tenants are on average in a
weaker shape than prior to the crisis. Government support schemes
so far have helped avoiding higher insolvencies and unemployment
rates, but these schemes are to run off at some time, leading to
the risk of rising shop failures and reduced consumer spending.

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

Upgrade pressure on ratings would require meaningful deleveraging
to create buffer against value declines and substantial sales
especially in the French business at reasonable price discounts.
Fitch would also expect operating performance to stabilise.

Downgrade pressure will arise from

  - Failure to improve covenant headroom through execution of
intended sales or other means that (i) allow the company to
meaningfully deliver, creating buffers to likely further value
declines and (ii) create liquidity that allows for investments in
the remaining property portfolio

  - Failure to retain sufficient liquidity

  - A reintroduction of business restrictions and a repeating
consumer sentiment shift leading to further weakness in the retail
sector and declining retail sales

LIST OF AFFECTED RATINGS:

Issuer: Wereldhave N.V.

Confirmations:

LT Corporate Family Rating, Confirmed at B1

BACKED Senior Unsecured Regular Bond/Debenture, Confirmed at B1

Outlook Actions:

Outlook, Changed To Negative From Ratings Under Review

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was REITs and Other
Commercial Real Estate Firms published in September 2018.


[*] S&P Puts Ratings on 5 Tranches From 2 Euro CLOs on Watch Neg.
-----------------------------------------------------------------
S&P Global Ratings placed its ratings on Jubilee CLO 2014-XI B.V.'s
class D-R, E-R, and F-R notes on CreditWatch with negative
implications. S&P also placed its ratings on Jubilee CLO 2015-XV
B.V.'s class E and F notes on CreditWatch with negative
implications.

During the past few weeks, a growing number of companies with loans
held in European CLOs have experienced negative rating actions,
largely due to coronavirus-related concerns and the current
economic dislocation.

For S&P's analysis of these transactions, it used the latest
trustee report data available as of the end of August.

S&P said, "Our actions reflect a combination of multiple factors
that affected these transactions, like pressure on the
overcollateralization ratios and available credit enhancement due
to defaults, a decline in portfolio credit quality, and indicative
preliminary cash flow results.

For CLO tranches rated 'B-' and below, in addition to the above
factors, S&P also applied its 'CCC' criteria.

Jubilee CLO 2015-XV B.V.

Jubilee CLO 2015-XV is a cash flow CLO transaction that securitizes
loans granted to primarily speculative-grade corporate firms. The
transaction was refinanced in October 2017.

S&P said, "In our April 2020 rating action, we upgraded the class
B-R and C-R notes and affirmed our ratings on all other classes of
notes.

"In our April rating actions, we expected the transaction to begin
deleveraging following the end of the reinvestment period in July
2019. As of the July payment date report, none of the notes had
deleveraged. At the same time, we observed that the defaults had
increased, 'CCC' exposure (assets rated 'CCC+', 'CCC', and 'CCC-')
remained above 5%, and weighted average spread had declined. As a
result, our cash flow analysis showed that the class E and F notes
now pass at lower rating levels.

"We have therefore placed on CreditWatch negative our 'BB (sf)' and
'B- (sf)' ratings in Jubilee CLO 2015-XV B.V."

Jubilee CLO 2014-XI B.V.

S&P said, "Jubilee CLO 2014-XI is also a cash flow CLO transaction
that securitizes loans granted to primarily speculative-grade
corporate firms. In our April 2018 rating action, we affirmed all
our ratings.

"In the August monthly report, we observed that some of the
collateral quality tests are now failing and so are the junior
coverage tests. Similar to Jubilee 2015-XV, we have noted that due
to defaults the credit enhancement has reduced.

"As a result, our cash flow analysis showed that the class D-R,
E-R, and F-R notes now pass at lower rating levels.

"We have therefore placed on CreditWatch negative our 'BBB (sf)',
'BB (sf)', and 'B- (sf)' ratings on the class D-R, E-R, and F-R
notes in Jubilee CLO 2014-XI B.V."

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

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

"We typically resolve CreditWatch placements within 90 days after
we complete a cash flow analysis and committee review for each of
the affected transactions. As we work to resolve these CreditWatch
placements, we will attempt to contact the managers of these
transactions to ensure we have the most current data, including any
credit risk sales or other trades that may have occurred but have
yet to be reflected in trustee reports, and understand the
strategies for their portfolios moving forward."




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

CARCADE LLC: Fitch Affirms BB+ LongTerm IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Carcade LLC's Long-Term Issuer Default
Rating at 'BB+' with Stable Outlook. All ratings have
simultaneously been withdrawn for commercial reasons.

The ratings have been withdrawn for commercial purposes.

KEY RATING DRIVERS

The rating reflects its assessment of the ability and propensity of
Carcade's shareholder, JSC Gazprombank (GPB; BBB-/Stable/bb), to
provide support to the company. GPB controls Carcade through two of
its fully-consolidated subsidiaries - Gazprombank Leasing JSC and
Novfintech LLC, with a 68% and 32% stake, respectively, in
Carcade.

In Fitch's view, the ability of GPB to support is underlined by its
systemic importance and state control through the bank's key
shareholder Gazprom PJSC (BBB/Stable). Fitch sees a high
probability of state support being available for the bank, if
needed. Carcade's small size (less than 0.5% of the parent's
consolidated assets at end-1H20) reinforces GPB's support ability
and, in its view, means any sovereign support (if required) to the
bank would be allowed to flow to Carcade, if needed.

RATING SENSITIVITIES

N/A

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

Carcade's IDRs and Support Rating are driven by GPB's IDR.

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).

Following the withdrawal of ratings for Carcade Fitch will no
longer be providing the associated ESG Relevance Scores.


JSC ALFA-BANK: Fitch Alters Outlook on 'BB+' LT IDR to Stable
-------------------------------------------------------------
Fitch Ratings has revised Russian-based JSC Alfa-Bank's (Alfa)
Outlook to Stable from Negative while affirming the bank's
Long-Term Issuer Default Rating (IDR) at 'BB+'. Fitch has also
affirmed the Long-Term IDR of Alfa's holding company, ABH Financial
Limited (ABHFL), at 'BB'.

The Outlook revision reflects reduced pressure on Alfa's credit
profile from the pandemic, lower oil prices and the resulting
economic contraction in Russia. Pre-impairment profitability has
remained robust, which supports the bank's loss absorption capacity
and, in Fitch's view, would be sufficient to provide for further
credit losses even in the event of a longer and more severe
downturn than currently anticipated. Asset-quality erosion has also
been limited to date.

Alfa's ratings could be upgraded to 'BBB-' if the Russian economy
stabilises in line with Fitch's base case, and credit losses from
the downturn and from expansion into retail lending remain
manageable. A more severe economic contraction than anticipated by
Fitch or larger-than-expected credit losses could result in the
ratings remaining at their current level, rather than negative
rating action, given the bank's loss absorption capacity and strong
record in managing problematic assets.

KEY RATING DRIVERS

KEY RATING DRIVERS

The IDRs of Alfa are driven by its intrinsic credit strength, as
expressed by its Viability Rating (VR), and continue to capture its
strong franchise, a record of strong performance and resilient
asset quality to date, and reasonable liquidity and capital
buffers.

Alfa's Stage 3 loans were a moderate 4.4% of gross loans at
end-1H20 (a 20bp increase versus end-2019) and were 88% covered
with total loan loss allowances (LLAs). Stage 2 loans increased
sharply to 13% of gross loans at end-1H20 from 6% at end-2019, but
most of these reside in Alfa's corporate portfolio, and Fitch
believes that the largest are mostly of reasonable credit quality
and carry only a moderate risk of further impairment. Alfa's
largest Stage 1 loans are extended to leading Russian corporates,
most of which have international credit ratings of 'BB' and above.
Fitch continues to view Alfa's corporate loan quality as resilient
and do not expect significant impairment losses in corporate
lending.

Risks in retail are driven by a considerable share of unsecured
lending (77% of retail loans) in Alfa's retail loan portfolio and
the bank's fast retail loan growth in 2018 and 2019 (66% and 53%,
respectively), which gives rise to seasoning risks. However, loan
restructuring in retail was only moderate (about 5%) at end-2Q20,
and Fitch does not expect this to increase sharply in 2H20. A
further mitigating factor is the only moderate overall share of
retail loans (27% of gross loans or 1.5x CET1 capital at end-2Q20)
in Alfa's assets. In addition, retail growth is likely to moderate
in 2020 and 2021, which Fitch views as positive. If adjusted for
foreign-currency moves, unsecured retail loans and mortgages
expanded by 5% and 39% respectively, in 1H20, resulting in an
overall 11% retail loan growth.

Alfa's annualised pre-impairment profit was a high 5% of average
gross loans in 1H20, providing the bank with significant loss
absorption capacity, while loan impairment charges (LICs) were only
2.7% (annualised) of loans, allowing Alfa to post a moderate 7%
return on equity. Alfa's pre-impairment performance is supported by
wide margins, which benefit from low funding costs (3.5% in 1H20)
and reasonable cost control. Fee income was under some pressure in
1H20, but not enough to dent the bank's overall profitability.

Alfa's Fitch Core Capital (FCC) ratio was a comfortable 15.6% at
end-2Q20, but regulatory capitalisation was tighter, reflecting
higher statutory risk-weighting (particularly on Alfa's retail
loans) and deeper loan provisioning in regulatory accounts. At
end-2Q20 Alfa's regulatory Core Tier-1 ratio was 9.9%, which is
190bp higher than the statutory minimum (including fully-loaded
capital conservation and systemic importance buffers), which Fitch
views as providing only moderate headroom. Alfa's regulatory
capital ratios were supported by a sector-wide relaxation of
risk-weighting on lower-risk corporate loans in January, and by the
bank's significant one-off foreign-currency gains.

Alfa's funding profile remains robust. Alfa was 80% deposit-funded
at end-1H20 and Fitch views its deposit base as stable and
granular, due to a high share of retail on-demand accounts (28% of
total liabilities at end-2Q20). Alfa's near-term wholesale-funding
repayments are limited and the bank's liquidity buffer (consisting
of cash and bonds) exceeded 25% of total liabilities at end-2Q20.

ABHFL

The 'BB' Long-Term IDR of ABHFL is one notch lower than Alfa's.
Fitch expects that default risks for Alfa and ABHFL will be highly
correlated due to high fungibility of capital and liquidity within
the group, which is managed as a single entity.

ABHFL's double leverage, defined by Fitch as equity investments in
subsidiaries divided by the holding company's equity, fell to a
moderate 108% at end-2Q20 from 156% at end-1H17, reflecting the
entity's significant deleveraging in recent years. The currently
moderate volume of ABHFL's third-party debt further supports close
alignment of its ratings with those of Alfa.

The one-notch differential between the bank's and the holding
company's ratings reflects the absence of consolidated regulation
for the two entities due to them being incorporated in different
jurisdictions. However, Fitch does not expect this to be a
significant constraint on ABHFL's ability to benefit from the
strong liquidity of the broader group, and of Alfa in particular.

DEBT RATINGS

Alfa's senior unsecured debt ratings (including on debt issued
through Alfa Bond Issuance plc) are affirmed at 'BB+' in line with
the bank's IDRs. The senior unsecured debt issued by ABHFL (through
Alfa Holding Issuance plc) is rated 'BB', at the same level as the
holding company's IDR.

Alfa's subordinated debt issues (placed by Alfa Bond Issuance plc)
are rated 'BB-' and notched down twice from the bank's VR,
reflecting higher loss severity than senior unsecured obligations.

The perpetual notes (placed by Alfa Bond Issuance plc) are rated
'B' and notched down four times from the VR, reflecting their deep
subordination and fully discretionary coupon payments.

SUPPORT RATING AND SUPPORT RATING FLOOR (SRF)

Alfa's 'BB-' SRF and '3' Support Rating reflect Fitch's view a
moderate of probability of support from the Russian authorities in
case of need. This view is based on an improved record of state
support to privately-owned banks in Russia, as evidenced by the
bail-out of senior unsecured creditors at three medium-sized
Russian private banks that failed in 2017, and the absence of any
current plans to introduce comprehensive senior creditor bail-in
provisions into Russian legislation. Alfa's 'BB-' SRF also captures
the bank's moderate systemic importance as the fourth-largest bank
in Russia with a 4% market share and its sizable (in absolute
terms) deposit base.

RATING SENSITIVITIES

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

Alfa's ratings could be upgraded to 'BBB-' if the Russian economy
stabilises in line with Fitch's base case, and credit losses from
the downturn and from expansion into retail lending remain
manageable. In Fitch's view, some aspects of Alfa's credit profile
(in particular, its franchise, track record and some of the
financial metrics) are already consistent with a 'BBB-' rating.

ABHFL's ratings will likely be upgraded if Alfa is upgraded. An
upgrade of ABHFL to the level of Alfa is unlikely, given that the
entities are incorporated in different jurisdictions.

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

A more severe economic contraction than anticipated by Fitch or
larger-than expected-credit losses are unlikely by themselves to
result in negative rating action given the bank's healthy loss
absorption capacity and strong record in managing problematic
assets. However, if large credit losses are accompanied by a
significant reduction in pre-impairment profit, resulting in
tighter capitalisation, then ratings could come under pressure.

ABHFL will likely be downgraded if Alfa is downgraded.


SISTEMA PJSFC: S&P Raises ICR to 'BB' on Improved Leverage
----------------------------------------------------------
S&P Global Ratings raised its rating on Russian investment holdco
Sistema (PJSFC) to 'BB' from 'BB-'.

The outlook is stable because S&P thinks Sistema will manage to get
its loan-to-value (LTV) ratio sustainably below 40%, thanks to its
focus on debt reduction also supported by continued portfolio
growth and selected asset disposals.

Over the last year Sistema has reduced its leverage by selling
assets and growing its portfolio, improving its LTV to slightly
above 30% on Aug. 31, 2020, from about 40% a year ago. Sistema sold
its remaining 20% stake in Detsky Mir in September 2020 after
selling 13% in June 2020 and 19% in November 2019. According to S&P
Global Ratings' calculations, Sistema also markedly grew its
overall portfolio value to RUB572 billion ($7.4 billion) on Aug.
31, 2020, from RUB474 billion a year earlier. Sistema's portfolio
value has increased by 20% since our rating action in August last
year, supported by almost 30% growth of its main listed asset, MTS,
but also by almost 30% growth in its unlisted portfolio. This
offset the reduction in the portfolio caused by the Detsky Mir
disposal.

Sistema's portfolio comprises several assets that either remained
resilient during the pandemic in terms of operating performance or
benefitted from it.   These include telecom MTS and a leading
Russian online retailer Ozon. MTS reported broadly flat OIBDA in
second-quarter 2020 year-over-year. Ozon reported a 188% increase
in gross merchandise value (total value or orders processed and
revenue from services to clients) in the same period. The travel
and hospitality sectors are among the worst hit by COVID-19, since
the pandemic halted international travel and tourism. However, the
hospitality sector represents an immaterial share of Sistema's
asset portfolio, namely less than 1% of our adjusted portfolio
value.

Sistema's management remains committed to deleveraging.   S&P
understands that Sistema is targeting gross debt in the medium term
of about RUB140 billion-RUB150 billion compared with slightly less
than RUB175 billion on Aug. 31, 2020, pro-forma Detsky Mir's
disposal. Provided the portfolio value remains at around the
current level, this implies Sistema's LTV could further decline
from current levels of slightly above 30%.

S&P said, "Although we regard positively the release of the pledge
over its MTS shares, the Detsky Mir disposal brings the share of
listed assets just under 60%.   Since the time of legal proceedings
related to the claim from Rosneft (completely resolved by March
2018), part of the MTS shares owned by Sistema remained pledged to
secure funding under the RUB105 billion facility from Sberbank. In
September 2020 Sistema managed renegotiate the terms of this loan
with Sberbank to secure the release of this pledge. As a result,
including the full disposal of its listed asset Detsky Mir, that
brought the share of listed and liquid assets to just below 60% as
of Aug. 31, 2020 on pro forma basis. We believe that Sistema has
marginally improved its portfolio liquidity. We believe that
listing of some Sistema's private assets could improve asset
liquidity further in the future; however, this is not currently
part of our base case."

Sistema's portfolio is fairly concentrated.   MTS, its largest
asset, accounts for about 60% of the portfolio's value. At the same
time, MTS' 'bbb-' stand-alone credit profile supports its
assessment of the average credit quality of Sistema's assets in its
'bb' category. Sistema's investments are diversified across more
than 15 industries. The holding exerts control over most of its
assets, which facilitates strategic planning and access to
dividends. However, Sistema's smaller assets, except for real
estate developer Etalon, are unlisted and therefore inherently less
liquid.

S&P said, "The stable outlook reflects our expectation that
Sistema's LTV ratio will remain materially below 40% in the next 12
months. We continue to expect that Sistema will use the vast
majority of proceeds from asset disposals for deleveraging. That
said, we do not expect Sistema will decrease its stake in MTS below
50%. Finally, our stable outlook factors in our expectation that
Sistema will maintain adequate liquidity over time and ample
covenant headroom, proactively managing its debt maturities."

Rating upside is currently fairly remote, but might come from
further improvement in the asset liquidity of the holding's
portfolio, coupled with a track record of solid operating
performance from its portfolio companies. An LTV ratio sustainably
well below 30%, supporting it by firm financial policy commitments,
would be commensurate with a higher rating.

S&P said, "We could consider a negative rating action if Sistema's
financial risk profile deteriorates, with the LTV ratio reaching
40% or higher without management taking firm action to lower it.
This may be a result of an aggressive debt-financed acquisition,
which we currently do not expect, asset divestment not balanced by
proportionate debt reduction, or performance deterioration of
Sistema's key assets, which is not our base case."


SOVCOMBANK LEASING: Fitch Alters Outlook on BB+ LT IDR to Stable
----------------------------------------------------------------
Fitch Ratings has revised Sovcombank Leasing LLC's (SCBL) Outlook
to Stable from Negative, while affirming the company's Long-Term
Issuer Default Rating (IDR) at 'BB+'.

The rating action follows the Outlook revision of parent bank PJSC
Sovcombank's (SCB) IDRs.

KEY RATING DRIVERS

The ratings of SCBL are driven by a moderate probability to support
from its ultimate shareholder, SCB (BB+/Stable/bb+). SCBL's ratings
are equalised with the parent's, reflecting the company's strategic
role, full ownership by SCB, common branding and integration within
the group.

Fitch's support assessment also reflects SCBL's close supervision
by SCB management, significant parent funding (around 30% of SCBL's
borrowings at end-1H20), SCBL's record of strong performance in
auto leasing, and SCBL's small size relative to SCB's (less than 1%
of assets), making potential support manageable for the
shareholder.

SCBL's asset quality has been hit by the coronavirus crisis, as
problem receivables reached 10% of gross receivables. Profitability
was affected by a hike in provisions, with annualised return on
average equity (ROAE) decreasing to 14% in 1H20 from 42% in 2019.
Fitch expects the coronavirus crisis to further pressure SCBL's
profitability and asset quality, although this is likely to be
mitigated by the resilience of the business model, in its view.

RATING SENSITIVITIES

SCBL's ratings are linked to and will therefore move in tandem with
SCB's IDRs.

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

  - A weakening of SCB's propensity to support SCBL triggered, for
example, by reduced strategic importance, weaker integration,
reduced ownership and a prolonged period of weak performance.

  - A downgrade of SCB's ratings will result in a corresponding
downgrade of SCBL's ratings.

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

  - An upgrade of SCB's IDRs, although this is currently unlikely,
given the Stable Outlook on SCB's ratings and the bank's still
moderate franchise.

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

SCBL's IDRs and Support Rating are driven by SCB's.

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).




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

CAIXABANK LEASINGS 3: DBRS Lowers Series B Notes Rating to B(low)
-----------------------------------------------------------------
DBRS Ratings GmbH took the following rating actions on the Notes
issued by Caixabank Leasings 3, FT (the Issuer):

-- Series A Notes confirmed at AA (sf)

-- Series B Notes downgraded to B (low) (sf) from B (high) (sf).

The Under Review with Negative Implications (UR-Neg.) status on the
rating was removed.

The downgrade of the Series B Notes was driven by higher perceived
default risk as a result of the negative economic impact on
enterprises caused by the Coronavirus Disease (COVID-19) pandemic,
given the transaction's large exposure towards small and
medium-size enterprise (SME) borrowers operating in vulnerable
sectors, and taking into consideration the higher unemployment
rates expected per DBRS Morningstar's moderate scenario in the
global macroeconomic outlook, as last updated on 22 July 2020.

The rating on the Series A Notes addresses the timely payment of
interest and the ultimate payment of principal on or before the
legal final maturity date in December 2039. The rating on the
Series B Notes addresses the ultimate payment of interest and
principal on or before the legal final maturity date in December
2039.

The rating actions follow an annual review of the transaction and
are based on the following analytical considerations:

-- Portfolio performance, in terms of delinquencies, defaults, and
losses as of the June 2020 payment date;

-- Probability of default (PD), loss given default (LGD), and
expected loss assumptions on the remaining receivables;

-- Current available credit enhancement to the Notes to cover the
expected losses at their respective rating levels;

-- Current economic environment and an assessment of sustainable
performance, as a result of the coronavirus pandemic.

The Issuer is a securitization of Spanish lease contracts granted
by CaixaBank, S.A. (CaixaBank) to enterprises and self-employed
individuals based in Spain. CaixaBank also acts as the servicer of
the portfolio. At closing, the EUR 1,830.0 million portfolio
consisted of equipment leases (38.9%), vehicle leases (36.5%), and
real estate leases (24.6%). The transaction closed in June 2019,
with no revolving period.

PORTFOLIO PERFORMANCE

As of August 2020, loans that were 0 to 30 days, 30 to 60 days, and
60 to 90 days delinquent represented 0.28%, 0.04%, and 0.02% of the
outstanding collateral balance, respectively, while loans more than
90 days delinquent amounted to 0.76%. Gross cumulative defaults are
low at 0.13% of the original portfolio balance, with receivables
classified as defaulted after 12 months of arrears per the
transaction documentation.

PORTFOLIO ASSUMPTIONS AND KEY DRIVERS

DBRS Morningstar conducted a loan-by-loan analysis of the remaining
pool of receivables and has updated its base case PD and LGD
assumptions to 6.8% and 54.2%, respectively.

Considering the framework, the downgrade of the Series B Notes is
driven by the heavy exposure towards SME borrowers, as well as
taking into consideration the unemployment levels contemplated in
DBRS Morningstar's moderate scenario of the updated global
macroeconomic outlook commentary published on July 22, 2020
(https://www.dbrsmorningstar.com/research/364318/global-macroeconomic-scenarios-july-update),
which could result in higher delinquencies, ultimately higher
defaults and lower recoveries.

CREDIT ENHANCEMENT

The subordination of the Series B Notes and the cash reserve
provide credit enhancement to the Series A Notes while the Series B
Notes receive credit enhancement from the cash reserve only once
the Series A Notes have been repaid in full. As of the June 2020
payment date, credit enhancement to the Series A Notes increased to
26.3% from 18.9% at the initial rating date; credit enhancement to
the Series B Notes increased to 6.8% from 4.9%.

The transaction benefits from an amortizing cash reserve available
to cover senior expenses and all payments due on the senior-most
class of notes outstanding at the time. The reserve was funded to
EUR 89.7 million at closing through a subordinated loan granted by
CaixaBank, and starting from the September 2020 payment date, is
expected to begin amortizing to its target level of 4.9% of the
outstanding principal balance of the notes.

CaixaBank acts as the account bank for the transaction. Based on
the account bank reference rating of CaixaBank at A (high), which
is one notch below the DBRS Morningstar public Long-Term Critical
Obligations Rating (COR) of AA (low), the downgrade provisions
outlined in the transaction documents, and other mitigating factors
inherent in the transaction structure, DBRS Morningstar considers
the risk arising from the exposure to the account bank to be
consistent with the ratings assigned to the notes, as described in
DBRS Morningstar's "Legal Criteria for European Structured Finance
Transactions" methodology.

DBRS Morningstar analyzed the transaction structure in Intex
DealMaker.

The Coronavirus Disease (COVID-19) and the resulting isolation
measures have caused an economic contraction, leading to sharp
increases in unemployment rates and income reductions for many
borrowers. DBRS Morningstar anticipates that delinquencies may
arise in the coming months for many ABS transactions, some
meaningfully. The ratings are based on additional analysis and
adjustments to expected performance as a result of the global
efforts to contain the spread of the coronavirus. For this
transaction, DBRS Morningstar increased the expected default rate
on receivables granted to enterprises operating in certain
industries based on their perceived exposure to the adverse
disruptions of the coronavirus and conducted an additional
sensitivity analysis to determine that the transaction benefits
from sufficient liquidity support to withstand high levels of
payment holidays or payment moratoriums in the portfolio.

Notes: All figures are in Euros unless otherwise noted.


CAIXABANK PYMES 11: DBRS Lowers Series B Notes Rating to CCC(high)
------------------------------------------------------------------
DBRS Ratings GmbH took the following rating actions on the notes
issued by CaixaBank PYMES 11, FT (the Issuer):

-- Series A Notes confirmed at AA (low) (sf)

-- Series B Notes downgraded to CCC (high) (sf) from B (sf)

The Under Review with Negative Implications (UR-Neg.) status on the
ratings was removed.

The downgrade of the Series B Notes was driven by higher perceived
default risk as a result of the negative economic impact on small
and medium-size enterprises (SMEs) caused by the Coronavirus
Disease (COVID-19) pandemic, given the transaction's large exposure
towards borrowers operating in vulnerable sectors, and taking into
consideration the higher unemployment rates expected per DBRS
Morningstar's moderate scenario in the global macroeconomic
outlook, as last updated on September 10, 2020. The confirmation of
the rating for Class A considered the transaction performance to
date and that it did not yet deteriorate meaningfully.

The rating of the Series A Notes addresses the timely payment of
interest and the ultimate payment of principal on or before the
legal maturity date in April 2052. The rating of the Series B Notes
addresses the ultimate payment of interest and principal on or
before the legal maturity date.

The rating actions follow an annual review of the transaction and
are based on the following analytical considerations:

-- The portfolio performance, in terms of level of delinquencies
and defaults, as of the July 2020 payment date.

-- The base case probability of default (PD) and default and
recovery rates on the receivables.

-- The current available credit enhancement to the notes to cover
the expected losses at their respective rating levels.

-- The current economic environment and an assessment of
sustainable performance, as a result of the Coronavirus Disease
(COVID-19) pandemic.

CaixaBank PYMES 11, FT is a cash flow securitization collateralized
by a portfolio of secured and unsecured loans and drawdowns of
secured lines of credit originated and serviced by CaixaBank, S.A.
(CaixaBank) to corporate, SMEs, and self-employed individuals in
Spain. The transaction closed in November 2019.

PORTFOLIO PERFORMANCE

The transaction's performance has been stable since closing. As of
July 2020, loans that were two to three months in arrears
represented 0.05% of the outstanding portfolio balance. The 90+
delinquency ratio was 0.9% and the cumulative gross default ratio
stood at 0.04% of the original portfolio balance. Receivables are
classified as defaulted after 12 months of arrears per the
transaction documentation.

PORTFOLIO ASSUMPTIONS AND KEY DRIVERS

DBRS Morningstar conducted a loan-by-loan analysis on the remaining
pool of receivables and updated its default rate and recovery
assumptions on the outstanding portfolio to 33.9% and 26.4%,
respectively, at the AA (low) (sf) rating level, and to 11.6% and
36.9%, respectively, at the CCC (high) (sf) rating level. The base
case PD has been updated to 2.8% following coronavirus
adjustments.

CREDIT ENHANCEMENT

The credit enhancements available to the rated notes have increased
as the transaction deleverages. As of the July 2020 payment date,
the credit enhancements available to the Series A Notes and Series
B Notes were 21.0% and 5.6%, respectively (up from 17.7% and 4.7%,
respectively, at closing). Credit enhancement is provided by
subordination of the Series B Notes and a reserve fund. The reserve
fund was funded through a subordinated loan and is available to
cover senior fees, interest. and principal payments on the Series A
Notes, and once the Series A Notes are fully amortized, interest
and principal on the Series B Notes. The cash reserve is expected
to begin amortizing from the January 2021 payment date, subject to
the target level being equal to 4.7% of the outstanding balance of
the rated notes.

CaixaBank acts as the account bank for the transaction. Based on
the account bank reference rating of CaixaBank at A (high), one
notch below its DBRS Morningstar Long-Term Critical Obligation
Rating of AA (low), the downgrade provisions outlined in the
transaction documents, and other mitigating factors inherent in the
transaction structure, DBRS Morningstar considers the risk arising
from the exposure to the account bank to be consistent with the
rating assigned to the Series A Notes, as described in DBRS
Morningstar's "Legal Criteria for European Structured Finance
Transactions" methodology.

DBRS Morningstar analyzed the transaction structure in its
proprietary Excel-based cash flow engine.

The Coronavirus Disease (COVID-19) and the resulting isolation
measures have caused an economic contraction, leading to sharp
increases in unemployment rates and income reductions for many
borrowers. DBRS Morningstar anticipates that payment holidays and
delinquencies may arise in the coming months for many SME
transactions, some meaningfully. The ratings are based on
additional analysis and adjustments to expected performance as a
result of the global efforts to contain the spread of the
coronavirus.

For this transaction, DBRS Morningstar increased the expected
default rate for obligors in certain industries based on their
perceived exposure to the adverse disruptions of the coronavirus.
Additionally, DBRS Morningstar conducted additional sensitivity
analysis to determine that the transaction benefits from sufficient
liquidity support to withstand high levels of payment holidays in
the portfolio. As of August 31, 2020, around 3.0% of the current
portfolio balance benefits from any type of payment moratorium. For
Class A, DBRS Morningstar also considered the transaction
performance to date and that it did not yet deteriorate
meaningfully. As such DBRS Morningstar placed less weight on the
adjusted stressed performance assumptions.

Notes: All figures are in Euros unless otherwise noted.


CATALONIA: DBRS Confirms BB(high) LT Issuer Rating, Stable Trend
----------------------------------------------------------------
DBRS Ratings GmbH (DBRS Morningstar) confirmed the Long-Term Issuer
Rating of the Autonomous Community of Catalonia (Catalonia) at BB
(high) and its Short-Term Issuer Rating at R-4. The trend on all
ratings is Stable.

KEY RATING CONSIDERATIONS

The Stable trend reflects DBRS Morningstar's assessment that the
risks to the ratings remain broadly balanced. As a reminder, DBRS
Morningstar deviated from its EU Calendar on June 5, 2020 to change
the trend on Catalonia's ratings to Stable from Positive to reflect
the substantial shock from the Coronavirus Disease (COVID-19) on
the Spanish and the regional economy. Catalonia's finances will be
affected by a combination of higher healthcare-related expenditure
and lower tax collection. Although DBRS Morningstar expects the
national government to mitigate the impact on the region's
financial performance in 2020, Catalonia's fiscal outcomes are
likely to remain under pressure in 2021 and 2022.

Catalonia's ratings remain underpinned by (1) the region's robust
economic indicators and its sound fiscal performance in recent
years; and (2) the financing support provided by the Kingdom of
Spain (A, Stable) to the regional government. While the political
situation in the region remains a source of uncertainty, its impact
on the regional economy or more generally on fiscal and financial
management has thus far remained limited.

Catalonia's Long-Term Issuer Rating currently remains at the BB
(high) level given the region's high debt metrics and a still
challenging political environment. Although DBRS Morningstar
expects the region's debt reduction to be a slow and lengthy
process and the political noise over independence to remain over
the long-term, it considers that the region's intrinsic performance
had substantially improved between 2015 and 2019.

RATING DRIVERS

The ratings could be upgraded if: (1) the relationship between the
region and the national government remains stable after the
upcoming regional elections, with debt and fiscal management
staying insulated from any potential rise in political tensions;
(2) the region continues its fiscal consolidation towards a
balanced budget position and improves its debt sustainability
metrics; or (3) the Kingdom of Spain’s rating is upgraded.

The ratings could be downgraded if: (1) there is a material
escalation of the political tensions between the region and the
national government. Specifically, indications that the financing
support received by the region may be reduced would have negative
credit implications; or (2) there is a structural reversal in the
region’s fiscal consolidation, leading fiscal deficits to widen
over time.

RATING RATIONALE

The COVID-19 Outbreak Negatively Affects the Regional Economy

The COVID-19 outbreak has been taking its toll on the Spanish and
the regional economy since March this year. Catalonia has been
severely affected by the pandemic. The region, in line with the
rest of the country, has been under one of the longest and
strictest lockdowns in Europe. While the strict initial lockdown
has helped reduce the transmission of the virus among the
population, it also brought economic activity to an halt.

The regional gross domestic product (GDP) is estimated to have
contracted by 22% in the second quarter (QoQ), by the Independent
Authority for Spanish Fiscal Responsibility (AIReF). This result
underperforms the GDP drop recorded in Spain (-18.5%) over the same
period. Year-on-year, the regional GDP contraction is estimated at
a staggering -26% compared with -22% for the country. While these
results are very negative, DBRS Morningstar highlights the
preliminary nature and the uncertainty surrounding these first
estimates. The GDP drop largely reflected the extent of the
healthcare crisis within the national and regional territories, the
stringency of the lockdown that followed, and the higher
concentration of economic activity in sectors severely affected
such as tourism.

While a solid rebound is expected for the second part of 2020 and
in 2021, uncertainty remains regarding its strength, given the
resurgence in recent weeks of infections in the region and in
Spain. DBRS Morningstar considers that the fiscal measures
announced by the national government to mitigate the adverse
consequences of the COVID-19 outbreak, as well as the resources
expected from the Next Generation EU plan from 2021, should help
alleviate the long-term impact of the pandemic. While DBRS
Morningstar expects this shock to affect all Spanish regions, its
overall impact on the region of Catalonia will depend in large part
on how quickly economic activity normalizes in coming quarters.

The Political Environment Remains a Key Rating Consideration

On the political front, while the regional pro-independence party,
Esquerra Republicana de Catalunya (ERC), implicitly supported
through its abstention the formation of a coalition government led
by the Partido Socialista Obrero Español (PSOE) at the national
level in January 2020, political uncertainty in the region remains.
In particular, new regional elections, which could be held in
coming months, could mean the resurgence of political tensions, as
the outcome of the vote might bring ERC to reconsider its implicit
support for Prime Minister Sanchez's government and harden the
pro-independence stance.

DBRS Morningstar believes that regional elections that would
confirm a softer strategy on the independence question, such as the
one currently followed by ERC, and reduce political tensions
between both government tiers, would benefit its assessment of the
region's political risk and subsequently support Catalonia's
ratings.

Catalonia's Fiscal Performance Will be Affected, but the National
Government Will Limit the Negative Impact

On the fiscal front, Catalonia's fiscal performance largely
stabilized in 2019, with a deficit-to-gross domestic product (GDP)
ratio at -0.56%. While the deficit slightly worsened compared to
the -0.44% outcome in 2018, it was affected by one-offs, and
remained in line with the -0.55% of regional peers. In 2020,
further fiscal consolidation appears challenging given the rapid
deterioration in economic indicators in the region and in Spain.
DBRS Morningstar currently expects strong pressure on Spanish
regions' operating expenditure, as regions directly manage
healthcare related costs which are expected to increase. In
addition, the anticipated drop in economic output in 2020 is likely
to markedly affect the amount of regional taxes collected by the
region.

On the other hand, Catalonia and other Spanish regions under the
common regime will benefit from the automatic stabilizers built
into the regional financing system. While the pandemic is likely to
decrease substantially the level of taxes collected by the national
government and in particular shared taxes such as value added tax
and personal income tax, the regions should remain insulated from
this drop in 2020. The national government has not revised down the
level of transfers (entregas a cuenta) that it will make to regions
this year. Transfers from the financing system will therefore
continue to increase in 2020; by EUR 7.7 billion or 7.1%
year-on-year compared with 2019.

The negative effect of the lower tax collection in 2020 will
therefore be borne by the central government. While this will
support regions in 2020, the regional financing system will prompt
a negative settlement to be paid by regions in 2022, which is
likely to be very substantial. However, DBRS Morningstar considers
it likely that the national government will allow regions to repay
this settlement over the long-term, as it did regarding the 2008
and 2009 negative settlements which are currently being repaid over
20 years.

DBRS Morningstar also highlights that the national government
approved additional fiscal transfers to its regions (Fondo
COVID-19) in 2020, totaling EUR 16 billion or 1.3% of national GDP.
These correspond to one-off grants, aimed at supporting regional
finances in the face of the COVID-19 crisis. These funds will be
split between EUR 10 billion directed to healthcare expenditure,
EUR 5 billion to compensate for lower regional revenues and EUR 1
billion for additional social costs borne by regions. Catalonia
currently estimates that it could receive close to EUR 3.2 billion
(1.4% of regional GDP) from the Fondo COVID-19, EUR 1.6 billion of
which has already been confirmed for healthcare and education.
Overall, the AIReF expects that Catalonia overall fiscal balance
for 2020, taking into account these additional transfers, could
range between a deficit of -0.2% and -0.6% of regional GDP.

DBRS Morningstar therefore anticipates that Catalonia and other
Spanish regions' 2020 financial performance should be only
partially affected by the COVID-19 crisis, as the central
government finances take the hit. The situation is nevertheless
likely to deteriorate rapidly in 2021 and 2022, with lower revenues
from the regional financing system and still high expenditure
increasing pressure on regional finances. While the national
government is likely to continue supporting its regions, growing
regional deficits and debt levels are likely to materialize. DBRS
Morningstar will monitor the level of transfers (entregas a cuenta)
to regions in 2021, as well as any potential additional measures
taken by the national government to limit the impact of the crisis
on regional finances over the medium-term.

The National Government's Financing is Critical to the Region's
Creditworthiness

DBRS Morningstar expects Catalonia's financing needs to continue
being covered by the national government. Such financing remains
critical for the region's credit ratings. While Catalonia's debt is
very high at EUR 81.8 billion at the end of 2019, or 278% of its
operating revenues, DBRS Morningstar gains comfort around its
sustainability, given the support it receives from the national
government. The Spanish Treasury currently holds about 75% of the
regional debt stock (Banco de España figure) and Catalonia has
benefited from very low funding rates in recent years. While the
reduction in the region's debt-to-operating revenues ratio is now
being challenged by the healthcare crisis, DBRS Morningstar
continues to consider that Catalonia will remain committed to
strengthen its debt metrics over the medium-term.

RATING COMMITTEE SUMMARY

The DBRS Morningstar European Sub-Sovereign Scorecard generates a
result in the BBB (high) – BBB (low) range. Additional
considerations factored into the Rating Committee decision included
the uncertainty related to the political environment in the region
and its potential impact on the region's relationship with the
national government as well as the region's economic and fiscal
prospects.

The main points discussed during the Rating Committee include: the
region's economic growth and the potential impact of the COVID-19
on its fiscal and debt trajectories. The relationship between the
national government and the Autonomous Community of Catalonia and
the political situation in the region and in the country.

Notes: All figures are in Euros (EUR) unless otherwise noted.


CELLNEX TELECOM: S&P Affirms 'BB+' LongTerm ICR, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' long-term issuer credit
rating on Cellnex Telecom S.A.

The outlook is stable because S&P assumes that Cellnex will
smoothly integrate the acquired assets and maintain a solid
operating track record, while keeping leverage in check and key
metrics within commensurate limits for the rating.

Cellnex has recently completed the GBP2 billion acquisition of
Arqiva's telecom sites portfolio in the U.K. This transaction,
combined with other deals across Europe in 2019-2020, materially
expands Cellnex's scale and broadens its client and geographic
diversification.

The acquisition will further strengthen Cellnex's business risk
profile.   The completed acquisition of 7,400 existing telecom
sites in the U.K. leads to a significant increase in scale, and
will underpin a higher operating margin and an extensive geographic
and client diversity. S&P said, "We estimate the large U.K. market
will likely contribute about 15% of consolidated EBITDA, behind
Spain and France, but similar to Italy and above Portugal and other
smaller markets. Including the U.K. and the deals closed in
2019-2020, we estimate that the number of Cellnex sites will reach
about 50,000 (including DAS "distributed antenna systems" nodes)."
This figure is about twice as at year-end 2018, excluding projects
under construction. The acquisitions also reduce the share of
lower-margin TV and radio broadcasting business to about 15% of
revenue from about 25%.

S&P continues to view the telecom tower industry as credit
supportive.  Telecom services benefit from long-term and protective
contracts, strong local market shares, high barriers to entry, and
steadily increasing demand from telecom operators to expand 4G
coverage. There is also the need to increase the density of
capillary cellular networks (local networks using short-range
radio-access technologies to provide local connectivity to things
and devices) to facilitate timely 5G deployments. Recent 5G
frequency auctions across Europe have also come with added coverage
obligations for operators, which further enhances the high revenue
visibility of tower companies.

Aggressive growth entails execution risks, but the company's track
record is solid.   S&P sees potential execution risks related to
the significant influx of new assets and delivery of a large number
of planned custom-made projects to clients. Cellnex is pursuing an
aggressive mergers and acquisitions (M&A) strategy to drive
industry consolidation across Europe. Nevertheless, Cellnex has a
strong operating track record established through smooth
integration of acquired businesses, and a well-managed growth and
geographic expansion. In addition, regular increases in organic
colocation reflect successful ongoing optimization of its tower
portfolio and efficiency gains.

S&P said, "We foresee heavy debt leverage, albeit commensurate with
the business profile.   Excluding the benefit of the recent equity
injection, we think that the company's leverage would have reached
about 6.3x pro forma in 2020, including the GBP2 billion U.K.
transaction, which is commensurate with our metrics for the rating.
In particular, we have somewhat relaxed to 6.5x from 6.0x
previously the maximum debt leverage that we believe is compatible
with the strengthened business risk profile. Concurrently we have
revised our financial risk assessment to highly leveraged,
reflecting our expectation that leverage will remain heavy in the
foreseeable future, given the company's aggressive M&A strategy.
This also assumes Cellnex will use the fresh proceeds from the
equity injection to fund future acquisitions, and we therefore do
not net them off of debt.

"We foresee a continuously supportive financial policy.   We
believe financial policy will continue to be supportive, as
illustrated by the recent EUR4 billion capital increase and the two
capital increases, worth EUR3.8 billion, done in 2019. This fresh
equity injection should allow the company to continue its
consolidating strategy in Europe while keeping leverage in check.
Including the fresh EUR4 billion equity proceeds, we foresee
leverage actually falling toward 3.6x in 2020 (and 3.1x pro forma a
12-month consolidation of recent acquisitions). This very low level
of leverage will likely be temporary, however, as it is likely a
prelude to additional M&A initiatives. The fresh equity injection,
therefore, provides considerable ammunition for future deals, and
should allow Cellnex to continue its consolidating strategy within
commensurate rating parameters.

"The outlook is stable because we anticipate that Cellnex will
benefit from its increasing scale and diversity, smoothly integrate
recently acquired businesses or transferred sites, and maintain its
adjusted debt to EBITDA at less than 6.5x. We also forecast
sustainable ratios of funds from operations (FFO) to debt higher
than 10% and discretionary cash flow (DCF) to debt at more than
6%.

"We could lower our rating on Cellnex if we anticipated that our
adjusted debt to EBITDA metric would not stay below 6.5x, our
adjusted FFO-to-debt ratio would fall below 10%, or DCF to debt
would remain below 6%. We think underperformance could result from
additional debt-funded acquisitions, higher-than-expected
shareholder remuneration, or weaker organic revenue growth than we
currently anticipate in our base case, owing in particular to
setbacks in integrating acquired assets.

"We could raise the rating if our adjusted debt to EBITDA metric
for Cellnex stayed consistently lower than 5.5x, FFO to debt above
13%, and DCF to debt above 9%. We see ratings upside as remote at
this stage, however, based on our view of likely additional
consolidation opportunities in the European towers market and
Cellnex's aggressive stance toward M&A along with the current
financial policy."


DISTRIBUIDORA INT'L DE ALIMENTACION: S&P Downgrades IDR to 'SD'
---------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Distribuidora Internacional de Alimentacion's (DIA) to 'SD'
(selective default) from 'CC'. S&P also lowered the issue ratings
on DIA's senior unsecured notes to 'D' from 'C'.

On Sept. 11, 2020, DIA's main shareholder, LetterOne, completed the
purchase of 97.5% of DIA's EUR300 million 1% notes due in 2021 and
76% of the EUR300 million 0.875% notes due in 2023.

The downgrade follows the settlement of LetterOne's tender offer on
the senior unsecured notes on Sept., 2020. S&P understands that
EUR292.6 million of the notes due in 2021 and EUR281 million of the
notes due in 2023 have been tendered and that LetterOne has
acquired the full amount of the 2021 notes tendered and EUR228
million of the 2023 notes, representing 87% of the total amount.
The 2021 price has been set at EUR948.5 per EUR1,000 with a EUR10
early tender premium, and the 2023 price at EUR603.6 per EUR1,000
with a EUR30 early tender premium. On Sept. 15, 2020, LetterOne
launched an offer to purchase the remaining portion of the 2023
notes. The offer expires on Sept. 25, 2020.

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

S&P will likely revisit its issuer credit rating on DIA in the
coming weeks.




===========
T U R K E Y
===========

DRIVER TURKEY 2018-1: Moody's Cuts Rating on Class A Notes to Ba3
-----------------------------------------------------------------
Moody's Investors Service downgraded the ratings of two series of
Class A notes in Driver Turkey Master S.A., which is a cash
securitisation of auto loans extended to obligors in Turkey by
Volkswagen Dogus Finansman A.S. (not rated).

The rating action reflects the increase in country risk as
reflected by the lowering of Turkey's local currency bond ceiling
to Ba3 from Ba2, following Moody's recent decision to downgrade
Turkey's government bond rating to B2 from B1 and maintain the
negative outlook.

TRY566.5M Series 2018-1 Class A Notes, Downgraded to Ba3 (sf);
previously on Jun 19, 2019 Downgraded to Ba2 (sf)

TRY250M Series 2018-2 Class A Notes, Downgraded to Ba3 (sf);
previously on Jun 19, 2019 Downgraded to Ba2 (sf)

RATINGS RATIONALE

Increased Country Risk

The rating action is prompted by the decrease in the Turkey
local-currency country ceiling to Ba3 from Ba2, which follows the
weakening of Turkey's credit profile, as captured by the downgrade
of the Government of Turkey's long-term issuer rating to B2 from B1
on September 11, 2020.

Turkey's country ceiling, and therefore the maximum rating that
Moody's can assign to a domestic issuer in Turkey under its
methodologies, including structured finance transactions backed by
Turkish receivables, is Ba3 (sf). The increase in country risk is
reflected in Moody's quantitative analysis for senior tranches. The
portfolio credit enhancement ("PCE") represents the required credit
enhancement under the senior tranche for it to achieve the rating
at country ceiling.

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
July 2020.

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

Factors or circumstances that could lead to an upgrade of the
ratings is (1) a decrease in sovereign risk reflected in a higher
local-currency country ceiling; (2) performance of the underlying
collateral that is better than Moody's expected; (3) an increase in
available credit enhancement; and (4) improvements in the credit
quality of the transaction counterparties

Factors or circumstances that could lead to a downgrade of the
ratings include (1) an increase in sovereign risk; (2) performance
of the underlying collateral that is worse than Moody's expected;
(3) deterioration in the notes' available credit enhancement; and
(4) deterioration in the credit quality of the transaction
counterparties.


[*] Moody's Cuts Ratings on Covered Bonds From 5 Turkish Banks
--------------------------------------------------------------
Moody's Investors Service taken a rating action on the following
covered bonds:

  - Mortgage covered bonds issued by Akbank T.A.S. (Akbank):
Downgraded to Ba3 from Ba2

  - SME covered bonds issued by Sekerbank T.A.S. (Sekerbank):
Downgraded to Ba3 from Ba2

  - Mortgage covered bonds issued by Turkiye Garanti Bankasi A.S.
(Garanti): Downgraded to Ba3 from Ba2

  - Mortgage covered bonds issued by Turkiye Vakiflar Bankasi
T.A.O. (Vakif): Downgraded to Ba3 from Ba2

  - Mortgage covered bonds issued by Yapi ve Kredi Bankasi A.S.
(Yapi): Downgraded to Ba3 from Ba2

This rating action follows Moody's recent decision to downgrade
Turkey's government bond rating to B2 from B1.

RATINGS RATIONALE

The rating action on the Turkish covered bonds follows Moody's
lowering of Turkey's local-currency bond ceiling to Ba3 from Ba2 on
September 11, 2020, which follows the sovereign downgrade.

As a result, Turkish covered bonds' ratings are currently capped at
Turkey's local currency bond ceiling of Ba3 because ceilings
generally act as the maximum ratings that can be assigned to a
domestic issuer in Turkey, including covered bonds backed by
Turkish receivables.

Moody's also lowered the Counterparty Risk (CR) Assessments of four
covered bond issuers (see "Moody's downgrades 13 Turkish banks;
outlooks remain negative" published on September 15, 2020) on the
back of the recent sovereign downgrade.

As a result of the lowering of the CR Assessments, Moody's assesses
a higher probability that these issuers would cease making payments
under the covered bonds, which the rating agency factors into its
methodology.

For Sekerbank T.A.S. - SME Covered Bonds, the downgrade of Turkey's
government bond rating to B2 from B1 has triggered a so-called
"Non-Performance Event" (NPE) in the documentation.

Under the documentation, in case of a NPE, the issuer shall,
amongst other actions, ensure that (i) no further covered bonds
will be issued, (ii) all collections of interest and principal to
be transferred to designated accounts and that thereafter all
collections on the assets to be paid directly to the designated
accounts, and (iii) all collections on the assets to be dedicated
exclusively to the payment of all the outstanding covered bonds
pro-rata on a monthly basis. Furthermore, following a potential
NPE, the bondholder representative can instruct the servicer to
conduct an asset sale to repay the covered bonds, while the issuer
can choose to redeem them early.

Moody's understands that a sufficient majority of investors may
decide to waive the rights to take these actions.

Moody's has considered in its analysis the factual implications of
both an NPE, and the investors' decision to waive the rights to
take these actions. Moody's noted that the bonds feature an
extension period of 36 months.

KEY RATING ASSUMPTIONS/FACTORS

Moody's determines covered bond ratings using a two-step process:
an expected loss analysis and a TPI framework analysis.

EXPECTED LOSS: Moody's uses its Covered Bond Model (COBOL) to
determine a rating based on the expected loss on the bond. COBOL
determines expected loss as (1) a function of the probability that
the issuer will cease making payments under the covered bonds (a CB
anchor event); and (2) the stressed losses on the cover pool assets
following a CB anchor event.

The CB anchor for Turkish programmes is the CR assessment plus 0
notches.

The cover pool losses are an estimate of the losses Moody's
currently models following a CB anchor event. Moody's splits cover
pool losses between market risk and collateral risk. Market risk
measures losses stemming from refinancing risk and risks related to
interest-rate and currency mismatches (these losses may also
include certain legal risks). Collateral risk is derived from the
collateral score, which measures losses resulting directly from the
cover pool assets' credit quality.

The cover pool losses of Akbank TAS - Mortgage Covered Bonds are
41.9%, with market risk of 31.3% and collateral risk of 10.6%. The
collateral score for this programme is currently 10.6%. The
over-collateralisation in this cover pool is 187.8%, of which the
issuer provides 12.5% on a "committed" basis. Under Moody's COBOL
model, the minimum OC consistent with the Ba3 rating is 11.5%, of
which 11.5% needs to be in "committed" form to be given full value.
These numbers show that Moody's is not relying on "uncommitted" OC
in its expected loss analysis.

The cover pool losses of Sekerbank T.A.S. - SME Covered Bonds are
35.8%, with market risk of 11.8% and collateral risk of 24%. The
collateral score for this programme is currently 24%. The
over-collateralisation in this cover pool is 533.7%, of which the
issuer provides 35% on a "committed" basis. Under Moody's COBOL
model, the minimum OC consistent with the Ba3 rating is 2.5%, of
which 2.5% needs to be in "committed" form to be given full value.
These numbers show that Moody's is not relying on "uncommitted" OC
in its expected loss analysis.

The cover pool losses of Turkiye Garanti Bankasi A.S. - Mortgage
Covered Bonds are 30.7%, with market risk of 20.4% and collateral
risk of 10.3%. The collateral score for this programme is currently
10.3%. The over-collateralisation in this cover pool is 340.6%, of
which the issuer provides 20% on a "committed" basis. Under Moody's
COBOL model, the minimum OC consistent with the Ba3 rating is
11.5%, of which 11.5% needs to be in "committed" form to be given
full value. These numbers show that Moody's is not relying on
"uncommitted" OC in its expected loss analysis.

The cover pool losses of Turkiye Vakiflar Bankasi TAO - Mortgage
Covered Bonds are 38.8%, with market risk of 28.3% and collateral
risk of 10.5%. The collateral score for this programme is currently
10.5%. The over-collateralisation in this cover pool is 135.6%, of
which the issuer provides 22.5% on a "committed" basis. Under
Moody's COBOL model, the minimum OC consistent with the Ba3 rating
is 11.5%, of which 11.5% needs to be in "committed" form to be
given full value. These numbers show that Moody's is not relying on
"uncommitted" OC in its expected loss analysis.

The cover pool losses of Yapi Kredi Bankasi A.S. - Mortgage Covered
Bonds are 27.3%, with market risk of 17% and collateral risk of
10.3%. The collateral score for this programme is currently 10.3%.
The over-collateralisation in this cover pool is 219.7%, of which
the issuer provides 20% on a "committed" basis. Under Moody's COBOL
model, the minimum OC consistent with the Ba3 rating is 11.5%, of
which 11.5% needs to be in "committed" form to be given full value.
These numbers show that Moody's is not relying on "uncommitted" OC
in its expected loss analysis.

TPI FRAMEWORK: Moody's assigns a "timely payment indicator" (TPI),
which is its assessment of the likelihood of timely payment of
interest and principal to covered bondholders following a CB anchor
event. The TPI framework limits the covered bond rating to a
certain number of notches above the CB anchor.

For all Turkish mortgage covered bonds, Moody's has assigned a TPI
of Improbable. For Sekerbank's SME covered bonds, Moody's has
assigned a TPI of Probable-High.

RATING METHODOLOGY

The principal methodology used in these ratings was "Moody's
Approach to Rating Covered Bonds" published in June 2020.

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

The CB anchor is the main determinant of a covered bond programme's
rating robustness. A change in the level of the CB anchor could
lead to an upgrade or downgrade of the covered bonds. The TPI
Leeway measures the number of notches by which Moody's might lower
the CB anchor before the rating agency downgrades the covered bonds
because of TPI framework constraints.

The TPI assigned to Akbank's mortgage covered bonds is Improbable.
The TPI Leeway for this programme is limited, and thus any
reduction of the CB anchor may lead to a downgrade of the covered
bonds.

The TPI assigned to Sekerbank's SME covered bonds is Probable-High.
The TPI Leeway for this programme is limited, and thus any
reduction of the CB anchor may lead to a downgrade of the covered
bonds.

The TPI assigned to Garanti's mortgage covered bonds is Improbable.
The TPI Leeway for this programme is limited, and thus any
reduction of the CB anchor may lead to a downgrade of the covered
bonds.

The TPI assigned to Vakif's mortgage covered bonds is Improbable.
The TPI Leeway for this programme is limited, and thus any
reduction of the CB anchor may lead to a downgrade of the covered
bonds.

The TPI assigned to Yapi's mortgage covered bonds is Improbable.
The TPI Leeway for this programme is limited, and thus any
reduction of the CB anchor may lead to a downgrade of the covered
bonds.

A multiple-notch downgrade of the covered bonds might occur in
certain circumstances, such as (1) a country ceiling or sovereign
downgrade capping a covered bond rating or negatively affecting the
CB Anchor and the TPI; (2) a multiple-notch downgrade of the CB
Anchor; or (3) a material reduction of the value of the cover
pool.




=============
U K R A I N E
=============

METINVEST BV: Fitch Rates Upcoming Unsecured Notes 'BB-(EXP)'
-------------------------------------------------------------
Fitch Ratings has assigned Metinvest B.V.'s (BB-/Negative) upcoming
notes issue an expected 'BB-(EXP)' senior unsecured rating. The
assignment of the final rating is contingent on the receipt of
final documents conforming to information already reviewed.

The proposed bond is expected to extend and smooth out the
company's maturity profile, which will support financial
flexibility over the medium term. For Metinvest to maintain its
Long-Term Issuer Default Rating (IDR) at two notches above the 'B'
Country Ceiling of Ukraine, hard-currency (HC) debt service cover
needs to remain sustainably above 1.5x on an 18-months rolling
basis. Refinancing its 2021 bond and a portion of its 2023 bond
early will create headroom relative to the minimum requirement for
hard-currency debt service cover.

Fitch expects the new issue to be broadly neutral to gross debt as
the proceeds will be mainly used to repay outstanding debt. Given
Metinvest's weak financial position before the coronavirus
pandemic, with funds from operations (FFO) gross leverage of 3.9x
at end-2019, and its expectation that leverage will remain above
its negative rating sensitivity of 2.5x at end-2020, an increase of
gross debt would be negative for the credit profile.

KEY RATING DRIVERS

1H20 Earnings Support Deleveraging Capacity: Metinvest reported
EBITDA of around USD615 million (excluding joint ventures) -versus
its full-year rating case of USD1.19 billion - and cash flow was
supported by working capital inflow in excess of USD100 million.
Overall, prospects for cash flow generation to support deleveraging
by end-2021 are now firmer than at its rating review in June 2020.
Before considering a revision of Outlook to Stable Fitch would look
for more evidence of the sustainability of economic recovery and of
discipline over related-party transactions and corporate activity.

Budget Measures Implemented: Management has closely reviewed
overheads, cut back on non-essential items, announced a 30%
reduction of administration staff and renegotiation of contracts
with external service providers. Capex guidance has been reduced by
around USD350 million over the next two years and dividends have
been suspended (including distributions that had already been
declared). The company is maintaining enhancement capex for
efficiency improvements. These measures support a trajectory of
improving free cash flow (FCF).

Advanced Integration: Metinvest is a sizeable eastern European
producer of metal products (4.4mt in 1H20; 8.8mt in 2019) and iron
ore (15.2mt of concentrate and pellets in 1H20; 29mt in 2019), with
around 300% self-sufficiency in iron ore but only 46% in coking
coal. It also supplies commission steel on behalf of its joint
venture Zaporizhstal and other Ukrainian steel producers (5.6mt in
2019). Proximity to Black Sea and Azov Sea ports allows Metinvest
to benefit from cheaper steel and iron ore exports and seaborne
coal imports logistics. Operations are also integrated into
downstream operations in Italy, Bulgaria and the UK. However, the
business exhibits high earnings volatility despite advanced
integration.

Rating above Country Ceiling: Fitch expects Metinvest's HC external
debt service cover to be at or above its 1.5x threshold on an
18-month rolling basis, allowing the company's IDR to remain two
notches above Ukraine's 'B' Country Ceiling. The 1.5x is derived
from mainly 50% of export EBITDA, aided by some EBITDA generated
abroad and liquidity held offshore, over principal repayments
(excluding trade finance) and interest payments. The proposed bond
is further evidence of Metinvest pro-actively managing maturities
and ensuring financial flexibility in excess of the minimum
requirements for the two-notch IDR uplift above the Country
Ceiling.

Oversupplied Steel Markets: COVID-19 restrictions have impacted
manufacturing activity more extensively than construction,
weakening flat steel demand more than for long steel. Fitch assumes
that the steel industry, excluding China, will only recover to
pre-coronavirus level towards 2022. Demand from China has directly
or indirectly supported sheet prices since the reported lows in
March and restocking of sheet products across the value chain in
Europe is progressing. As a result, hot rolled coil prices have
improved to USD500/tonne (free on-board Black Sea) from
USD360/tonne.

Costs more Aligned with West: Metinvest's steel assets at Mariupol
are mid-ranking in site costs for liquid steel (unintegrated basis;
subsidiary Ilyich Steel is third quartile for hot rolled coil),
while iron ore and coal assets are higher-cost (based on business
costs) on average. As a result, Metinvest is less competitive than
Russian companies PJSC Novolipetsk Steel (NLMK) and PJSC
Magnitogorsk Iron & Steel Works (MMK) that export through Black Sea
ports. Its cost position is more comparable with European mills'.
Metinvest owns re-rolling facilities in Europe to which it delivers
semi-finished products from Ukraine, providing good access to the
European market outside of quotas.

ESG - Group Structure: Fitch changed the score to '4' in June 2020
from '3'. In 2019, Metinvest extended USD367 million of medium-term
trade credit to associates and issued loans to shareholders of
USD146 million. Acting as working capital provider in a down-cycle
to related parties could unduly impact free cash flow (FCF)
generation and increase the debt burden. Fitch will monitor gross
debt, cash flow generation and related-party transactions closely
to assess whether to revise the Outlook to Stable or downgrade the
rating. This has a negative impact on the credit profile, and is
relevant to the rating in conjunction with other factors.

ESG - Exposure to Social Impacts: The Kerch Strait incident in
November 2018, when the Russian navy exercised control over access
to the Azov Sea and captured Ukrainian navy ships and crew members,
highlighted that the conflict in eastern Ukraine continues to pose
risks to Metinvest's day-to-day operations, a risk that its EMEA
peers do not face. However, a high proportion of Metinvest's EBITDA
is generated by its mining assets located substantially farther
from the conflict zone. Fitch has maintained the score at '4'. This
has a negative impact on the credit profile, and is relevant to the
rating in conjunction with other factors.

DERIVATION SUMMARY

Metinvest has a smaller scale of operations and weaker cost
position than major CIS flat steel producers NLMK (BBB/Stable), PAO
Severstal (BBB/Stable) and MMK (BBB/Stable).

Metinvest has an overall cost position that is closer to the middle
of the liquid steel cost curve (on an unintegrated basis), compared
with the first quartile for its three peers, which reflects that
assets of the Russian peer group are better invested and
maintained, as well as cheaper electricity and gas in Russia than
in Ukraine. Metinvest's iron ore and coal assets are on average
also higher-cost than Severstal and NLMK. Its re-rolling assets in
Europe and smaller domestic steel market are the reason for
Metinvest's 70%-75% export share, comparable with NLMK's and above
more domestically-oriented Severstal's and MMK's.

Metinvest's scale with advanced vertical integration, higher-cost
position and substantial export share are factors behind the
company's good business profile. It has higher leverage than the
Russian peer groups and high earnings variability despite advanced
integration, due partly to fluctuations of the hryvnia, less
capacity to absorb pricing pressure and high exposure to
competitive export markets such as Europe and southeast Asia.
Metinvest is also less committed to their financial policies
compared with higher rated peers.

Metinvest's ratings also take into consideration the
higher-than-average systemic risks associated with the business and
jurisdictional environment in Ukraine.

KEY ASSUMPTIONS

  - Ukrainian hryvnia to depreciate against US dollar towards 27.3
in 2020 and 30.4 in 2021.

  - EBITDA margin to recover but remain subdued at 14% in 2020 and
around 15% thereafter on weaker hryvnia, recovering volumes and
normalising product mix.

  - Capex at around USD600 million in 2020, fluctuating around
USD800 million in the following three years.

  - No dividends over the next four years.

RATING SENSITIVITIES

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

As the Outlook is Negative an upgrade is unlikely in the
short-term. However, reducing FFO gross leverage to 2.5x by
end-2021 and maintaining it at or below that level on a sustained
basis (2019: 3.9x) together with increased at arm's-length dealing
with associates and joint ventures would lead to a revision of the
Outlook to Stable.

  - Gross debt reduction through retention of positive FCF,
resulting in FFO gross leverage below 1.5x on a sustained basis,
which along with an upgrade of Ukraine's Country Ceiling could
support an upgrade.

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

  - FFO gross leverage above 2.5x on a sustained basis.

  - Market pressure resulting in EBITDA margin (excluding resales)
below 12% on a sustained basis.

  - HC external debt service cover ratio falling below 1.5x on an
18-month rolling basis.

  - Further related-party transactions putting pressure on working
capital and overall liquidity position.

  - Downgrade of Ukraine's Country Ceiling.

  - Development of the conflict in the eastern part of Ukraine
affecting the company's profile or profitability.

LIQUIDITY AND DEBT STRUCTURE

Satisfactory Liquidity: At end-June 2020, Metinvest had available
cash balances of USD403 million (excluding less than USD1 million
cash in transit and USD61 million of balances held with related
party). The company also has unutilised trade- finance facilities
of USD373 million. Short-term maturities amounted to USD651
million, of which USD442 million related to trade-finance
facilities.

Fitch forecasts Metinvest will generate on average more than USD100
million FCF per year over the next four years. Fitch expects the
company to make use of trade finance and factoring to fund working
capital, but all other funding needs are covered until end-2021
(not including the proposed bond).

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.

ESG CONSIDERATIONS

Metinvest has ESG Relevance Scores of 4 for 'Exposure to Social
Impacts' and 'Group Structure (Complexity, Transparency and
Related-Party Transactions)' which have a negative impact on the
credit profile, and are relevant to the rating in conjunction with
other factors. This is linked to the proximity of Metinvest's
Ukrainian steel plants to the conflict zone and a series of related
party transactions over recent years.

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


METINVEST BV: S&P Assigns 'B' Rating on New Senior Unsecured Notes
------------------------------------------------------------------
S&P Global Ratings said that it has assigned its 'B' issue rating
to the proposed senior unsecured notes issued by Metinvest B.V.,
the holding company of a group of mostly Ukraine-based vertically
integrated steel and mining assets.

The company is expecting to issue senior unsecured notes of minimum
$300 million with maturity in 2027. It will use the proceeds to
refinance existing debt, primarily at the short end of the bond
curve--the full redemption of the $115 million bonds due in 2021
and partial redemption of the bonds due in 2023.

S&P sees the transaction as credit neutral and our assessment of
Metinvest's liquidity will remain at less than adequate,
underpinned by sizable trade finance facilities (about $375 million
outstanding at end-June) and factoring (about $150 million
factoring at end-June), which are short-term in nature.

On Sept. 8, Metinvest published its results for the first half of
2020, with EBITDA of $0.7 billion, in line with S&P's expectations.
S&P continues to forecast EBITDA of $1.4 billion-$1.7 billion in
2020 (excluding about a $170 million contribution from joint
ventures).

ISSUE RATINGS--SUBORDINATION RISK ANALYSIS

CAPITAL STRUCTURE

The pro forma gross debt, taking into account the proposed new
senior unsecured bonds, amounts to about $3.0 billion and consists
of:

-- About $365 million of a senior unsecured pre-export finance
(PXF) facility with maturity in October 2022;

-- Up to $2.1 billion senior unsecured notes, including the new
issuance of minimum $300 million, with maturities 2023-2029;

-- About $375 million trade finance facilities; and

-- Other financial debt of about $170 million.

ANALYTICAL CONCLUSIONS

S&P rates Metinvest's proposed bonds 'B', in line with the issuer
credit rating. This is because there are no elements of
subordination risk in Metinvest's capital structure. The proposed
new notes will rank pari passu with the existing bonds and the PXF
facility.




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

ARDONAGH MIDCO: Fitch Affirms LT IDR at B-, Outlook Stable
----------------------------------------------------------
Fitch Ratings has affirmed Ardonagh Midco 3 Plc's Long-Term Issuer
Default Rating (IDR) at 'B-' with a Stable Outlook and subsequently
withdrawn the rating for commercial reasons.

Fitch has also assigned Ardonagh Midco 2 Plc's GBP400
million-equivalent senior PIK toggle notes a final 'CCC' rating on
receipt of final documentation that is consistent with information
presented when assigning the expected rating.

Ardonagh Midco 2 plc's Long-term IDR is 'B-' with a Stable Outlook.
Ardonagh's ratings reflect high leverage following a GBP2 billion
refinancing to acquire Bravo Group (Bravo) and Arachas Group
(Arachas). This is balanced by its expectation that continued cost
savings, synergies and healthy free cash flow (FCF) will all
support sufficient organic deleveraging.

The ratings of Ardonagh Midco 3 Plc were withdrawn for commercial
purposes.

KEY RATING DRIVERS

Acquisitions Increase Leverage: Total debt (excluding leases) has
increased materially to GBP2 billion at refinancing close from
GBP1.2 billion in March 2020. Fitch estimates Ardonagh's funds from
operations (FFO) gross leverage for 2021, the first full financial
year after the acquisitions, at 9.5x. The refinancing follows a
series of debt-funded acquisitions over the last three years,
including the purchase of Swinton Insurance in 2018.
Notwithstanding the operational and strategic rationale for such
acquisitions, without material equity injections into the capital
structure leverage has been managed above its 'B' rating threshold
for the last three years.

Complete Refinancing: The GBP2 billion refinancing was used to
refinance all existing debt facilities, including the existing
revolving credit facility (RCF) and extend the maturities of the
capital structure. Also included in the new financing was GBP300
million delayed draw facility, which will support future M&A.

Margin Growth to Continue: Ardonagh has made good progress in its
GBP30 million annualised cost- saving programme, with GBP11 million
already implemented as of March 31, 2020. Fitch expects the
recently announced acquisitions and the proposed acquisitions of
Bennetts announced on February 17, 2020 to deliver further cost
savings of up to GBP7 million by 2022. After deducting
rights-of-use asset depreciation and amortisation and lease
interest charges Fitch conservatively assumes EBITDA margin to
increase to 31% by 2022 from 26% in 2019. The insurance-broking
market remains highly fragmented and Fitch expects the company to
continue pursuing opportunistic, EBITDA-accretive bolt-on
acquisitions.

Higher Execution & Integration Risks: While increasing scale is key
to margin growth in the insurance- broking industry, Fitch believes
integration and cost-saving programmes may sometimes take longer
than expected, often demanding higher business-transformation
spending and investments. Ardonagh has extracted good EBITDA growth
from previous acquisitions and cost-saving measures but
acquisitions of larger businesses such as Swinton, Bravo and
Arachas could come with higher integration risks. The larger debt
burden under the new financing also increases the need for solid
execution of their cost-saving plans.

Acquisitions Increase Scale: The acquisitions of Bravo and Arachas
both increase the scale of Ardonagh's advisory-business unit, which
provides insurance-broking products and advice to SMEs and large
corporates. Advisory will become the largest segment of the
consolidated group at 38% of revenues on a pro-forma basis. Fitch
expects the retail business to generate the lowest underlying
growth of the three main segments and with margin improvements and
mid-single digit revenue growth expected in advisory, Fitch views
the change in business mix towards advisory as a positive
development.

FCF to Improve: As a result of transformation spending and
regulatory fines, Ardonagh has reported negative FCF for the last
four years. As it cuts back on such investment and reaches the end
of its regulatory repayments, Fitch expects FCF to turn positive
with high single-digit FCF margins from 2021 onwards.

DERIVATION SUMMARY

Ardonagh has less scale in the UK than the large international
insurance brokers. However, it has greater scale and a more diverse
product offering than other independent brokers Acropole BidCo SAS
(B/Negative) and Andromeda Investissements SAS (B/Stable). While
its expertise in niche, high-margin product lines and its leading
position among UK insurance brokers underpin a sustainable business
model, Ardonagh's higher financial risk, lower financial
flexibility, and execution risk in integrating acquisitions
constrain the rating.

KEY ASSUMPTIONS

  - Acquisitions of Bravo, Arachas and Bennett to close on June 30,
2020 with six-month contributions to 2020 consolidated numbers.

  - Revenue to increase 10%-13% in 2020 and 2021 following the
announced acquisitions. Thereafter revenue growth of just over 4%
per year.

  - Pre-IFRS16 EBITDA margin to increase to 27.4% in 2020 before
growing to over 31% by 2022. EBITDA margin growth driven by
predominantly by announced cost-saving measures and deal-related
cost synergies.

  - PIK for interest payments the chosen option when opportunity
allows.

  - GBP50 million of regulatory payments in respect of enhanced
transfer value schemes (ETV) in 2020 and 2021 (ETV provision was
GBP38.5 million at March 2020).

  - Capex to rise to 4% of sales in 2020 before declining towards
1% by 2022.

KEY RECOVERY ASSUMPTIONS

  - Fitch uses a going-concern approach for Ardonagh in its
recovery analysis, assuming that it would be considered a
going-concern in a bankruptcy rather than be liquidated

  - A 10% administrative claim

  - Post-restructuring going-concern EBITDA estimated at EUR190
million, 22% below its projected 2021 Fitch-defined EBITDA

  - Fitch uses an enterprise value (EV) multiple of 5.5x to
calculate a post-restructuring valuation

These assumptions result in a recovery rate for the new GBP400
million PIK notes within the 'RR6' range, resulting in the
instrument rating being two notches below Ardonagh Midco 2 Plc's
IDR.

RATING SENSITIVITIES

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

No significant changes to operating and regulatory conditions with
stable EBITDA margin leading to FFO gross leverage below 7x on a
sustained basis

FFO interest cover above 2x

Successful delivery of cost-saving programmes and full realisation
of deal-related synergies

Positive FCF generation and a financial policy demonstrating
commitment to reducing leverage

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

Increasing competitive pressure or operational challenges resulting
in lower EBITDA margin leading to FFO gross leverage above 9x on a
sustained basis

FFO interest cover below 1.5x

Consistently negative FCF and sustained use of RCF or other
facilities to support liquidity

LIQUIDITY AND DEBT STRUCTURE

Healthy Liquidity: Each aspect of the new financing will be
structured as a bullet repayment with no amortising tranches and
long-dated maturities. Fitch expects Ardonagh to start generating
high single-digit FCF margins from 2021 as regulatory payments and
restructuring costs start to decline.

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.

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).


AVON FINANCE 2: S&P Assigns Prelim. B- Rating on Class F Notes
--------------------------------------------------------------
S&P Global Ratings assigned preliminary credit ratings to Avon
Finance No. 2 PLC's class A, B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and
F-Dfrd U.K. RMBS notes. At closing, Avon Finance No.2 will also
issue unrated class Z notes, as well as class S1, S2, and Y
certificates, and VRR loan notes.

The transaction is a repack of the Warwick Finance Residential
Mortgages Number One PLC transaction, which closed in May 2015. It
is a static RMBS transaction, which securitizes a portfolio of
GBP865.7 million first-lien mortgage loans, both owner-occupied and
buy-to-let (BTL), secured on properties in the U.K.

The underlying loans in the securitized portfolio were originated
by Platform Funding Ltd. and GMAC-RFC Ltd. (now called Paratus AMC
Ltd.). The loans in the securitized portfolio will continue to be
serviced by Western Mortgage Services Ltd.

S&P said, "We consider the collateral to be nonconforming based on
the prevalence of loans to self-certified borrowers and borrowers
with adverse credit history, such as prior county court judgments
(CCJs), an individual voluntary arrangement, or a bankruptcy
order.

"Our preliminary rating on the class A notes addresses the timely
payment of interest and the ultimate payment of principal. Our
preliminary ratings on the class B-Dfrd to F-Dfrd notes reflect the
ultimate payment of interest and principal. Our rating definitions
are in line with the notes' terms and conditions."

The timely payment of interest on the class A notes is supported by
the principal borrowing mechanism and the liquidity reserve, which
will be fully funded at closing to its required level.

S&P said, "Our preliminary ratings reflect our assessment of the
transaction's payment structure, cash flow mechanics, and the
results of our cash flow analysis to assess whether the notes would
be repaid under stress test scenarios. Subordination, a warranty
reserve fund, excess spread and the liquidity reserve fund (before
the optional redemption date only) will provide credit enhancement
to the rated notes.

"Our cash flow analysis indicates that the available credit
enhancement for the class C-Dfrd and E-Dfrd notes is commensurate
with higher ratings than those currently assigned. The preliminary
ratings on these notes also reflect their ability to withstand the
potential repercussions of the COVID-19 outbreak, including higher
default sensitivities also considering their relative positions in
the capital structure, and potential increased exposure to tail-end
risk.

"Similarly, our cash flow analysis on the class B-Dfrd notes also
indicated a higher rating than that assigned, but we do not
consider deferrable notes to be commensurate with our 'AAA (sf)'
rating.

"In our analysis, the class F-Dfrd notes are unable to withstand
the stresses we apply at our 'B' rating level. We do not consider
that meeting the obligations of this class of notes is reliant on
favorable business, financial, and economic conditions.
Consequently, we have assigned a 'B- (sf)' rating to the notes in
line with our criteria.

"There are no rating constraints in the transaction under our
counterparty, legal, operational risk, or structured finance
sovereign risk criteria. We consider the issuer to be bankruptcy
remote.

"Our credit and cash flow analysis and related assumptions consider
the ability of the transaction to withstand the potential
repercussions of the coronavirus outbreak, namely, higher defaults,
liquidity stresses, and longer recovery timing stresses.
Considering these factors, we believe that the available credit
enhancement is commensurate with the preliminary ratings
assigned."

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

  Preliminary Ratings Assigned

  Class     Prelim. rating*    Amount (GBP)
  A          AAA (sf)            TBD
  B-Dfrd     AA+ (sf)            TBD
  C-Dfrd     AA- (sf)            TBD
  D-Dfrd     A (sf)              TBD
  E-Dfrd     BB (sf)             TBD
  F-Dfrd     B- (sf)             TBD
  Z          NR                  TBD
  S1 certs   NR                  N/A
  S2 certs   NR                  N/A
  Y certs    NR                  N/A
  VRR loan notes     NR          TBD
  
  NR--Not rated.
  TBD--To be determined.
  N/A--Not applicable.


CARTWRIGHT GROUP: Files Notice to Appoint Administrator
-------------------------------------------------------
Motor Transport reports that Cheshire-based trailer manufacturer
Cartwright Group has filed a notice to appoint an administrator.

According to Motor Transport, calls to the Altrincham family
business went unanswered but it is understood that the company has
filed a notice to appoint Deloitte to handle its affairs.

Cartwright Group can trace its history back to 1952 and it has
grown into one of the UK's leading trailer and commercial vehicle
body and conversion manufacturers, Motor Transport discloses.



CASTELL PLC 2020-1: DBRS Gives Prov. BB (low) Rating on F Notes
---------------------------------------------------------------
DBRS Ratings GmbH assigned provisional ratings to the following
classes of notes to be issued by Castell 2020-1 plc (Castell 2020
or the Issuer):

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

The provisional ratings assigned to the Class A, Class B, Class C,
Class D, Class E, Class F, and Class X notes address the timely
payment of interest and the ultimate repayment of principal on or
before the legal final maturity date.

Castell 2020 is a bankruptcy-remote special-purpose vehicle
incorporated in the United Kingdom. The notes will be used to fund
the purchase of UK second-lien mortgage loans originated by Optimum
Credit Limited (Optimum Credit or the seller) while primary and
special servicing of the portfolio are undertaken by Pepper UK
Limited. Optimum Credit, established in November 2013, is a
specialist provider of second-lien mortgages based in Cardiff,
Wales. Both Optimum Credit and Pepper are part of Pepper Group
Limited (Pepper Group), a worldwide consumer finance business,
third-party loan servicer, and asset manager, which has been
operating successfully in Australia since 2001. The servicing
businesses of the Pepper Group are being acquired by Link Group,
which is subject to regulatory approval and expected to be
completed in 2020. Intertrust Management Limited has been appointed
as the backup servicer facilitator.

DBRS Morningstar was provided with information on a provisional
mortgage portfolio as of July 31, 2020. Unlike previous Castell
transactions, Castell 2020 will not have a prefunding period, and
the portfolio will be static. The portfolio consists of 6,826
mortgage loans with an aggregate principal balance of EUR 276.7
million. The average loan per borrower is GBP 40,543.

All of the mortgage loans in the provisional portfolio are
owner-occupied and almost all loans are repaying on a capital and
interest basis. Within the portfolio, 67.4% of the loans are
fixed-rate loans that switch to floating rate upon completion of
the initial fixed-rate period whereas 30.2% are floating-rate loans
for life, and the remaining 2.4% are fixed-rate loans for life.
Interest rate risk is expected to be hedged through a
fixed-floating interest rate swap with Natixis (the swap
counterparty) to mitigate the fixed interest rate risk from the
mortgage loans and Sonia payable on the notes. The issuer will pay
the swap counterparty an amount equal to the swap notional amount
multiplied by the swap rate and in turn, the issuer will receive
the swap notional amount multiplied by Sonia. Natixis is rated
privately by DBRS Morningstar and the swap documents reflect DBRS
Morningstar's "Derivative Criteria for European Structured Finance
Transactions" methodology.

Furthermore, approximately 2.4% of the portfolio by loan balance
comprises loans originated to borrowers with a prior County Court
Judgment, 0.8% of the borrowers are in arrears, and 13.8% of the
loans were granted to self-employed or unemployed borrowers or
pensioners (referring to the primary borrowers employment status
only). Castell 2020 will include approximately one third of the
loans from the previous Castell 2017-1 plc transaction, which was
called in July 2020. The weighted-average seasoning of the
portfolio is 19 months with a weighted-average remaining term of
approximately 14 years. The weighted-average current loan-to-value,
inclusive of any prior ranking balances of the portfolio, is 62.2%
(based on DBRS Morningstar's calculation).

Credit enhancement for the Class A Notes is expected to be 27.0% at
closing and is to be provided by the subordination of the Class B
Notes to the Class H Notes (excluding the uncollateralized Class X
Notes). The Class A and the Class B notes benefit from further
liquidity support provided by an amortizing liquidity reserve,
which can support the payment of senior fees and interest on the
Class A and Class B notes. The liquidity reserve fund (LRF) will be
unfunded at closing, with the required amount of 1.5% of the
outstanding balance of the Class A and Class B notes. Initially,
the LRF will be funded through principal receipts. Any subsequent
use of the LRF will be replenished from revenue receipts. The
excess amounts following amortization of the Class A and Class B
notes will form part of available principal.

The structure includes a principal deficiency ledger (PDL)
comprising eight subledgers (Class A PDL to Class H PDL) that
provision for realized losses as well as the use of any principal
receipts applied to meet any shortfall in payment of senior fees
and interest. The losses will be allocated starting from Class H
PDL and then to the subledgers of each class of notes in reverse
sequential order.

Available principal funds can be used to provide liquidity support
to the transaction. Following the application of the available
revenue funds and liquidity reserve, available principal funds can
be used to pay senior fees, swap payments, and interest shortfalls
on the Class A to Class F notes. In more detail, principal is
available to provide liquidity support to the Class B to Class F
notes provided the respective PDL balance is less than 10% of the
outstanding balance of the respective class of notes. There is no
condition for principal being used to provide liquidity support for
the Class A notes, given that available revenue funds and the LRF
have been applied first. Any use will be recorded as a debit in the
PDL.

The coupon on the notes will step up on the interest payment date
falling in October 2023, which is also the first optional
redemption date. The notes can be redeemed in full, at the
outstanding balance plus accrued interest, on any subsequent
payment date. DBRS Morningstar has considered the increased
interest payable on the notes on the step-up date in its cash flow
analysis.

The issuer account bank is Citibank N.A., London Branch. Based on
the DBRS Morningstar private rating of the account bank, the
downgrade provisions outlined in the transaction documents, and
structural mitigants, DBRS Morningstar considers the risk arising
from the exposure to the account bank to be consistent with the
ratings assigned to the notes, as described in DBRS Morningstar's
"Legal Criteria for European Structured Finance Transactions"
methodology.

DBRS Morningstar based its ratings on a review of the following
analytical considerations:

-- The transaction capital structure and form and sufficiency of
available credit enhancement.

-- The credit quality of the mortgage portfolio and the ability of
the servicer to perform collection and resolution activities. DBRS
Morningstar calculated probability of default (PD), loss given
default (LGD), and expected loss (EL) outputs on the mortgage
portfolio, which are used as inputs into the cash flow tool. The
mortgage portfolio was analyzed in accordance with DBRS
Morningstar's "European RMBS Insight: U.K. Addendum".

-- The ability of the transaction to withstand stressed cash flow
assumptions and repays the Class A, Class B, Class C, Class D,
Class E, Class F, and Class X notes according to the terms of the
transaction documents. The transaction structure was analyzed using
Intex DealMaker.

-- The structural mitigants in place to avoid potential payment
disruptions caused by operational risk, such as a downgrade, and
replacement language in the transaction documents.

-- DBRS Morningstar's sovereign rating on the United Kingdom of
Great Britain and Northern Ireland at AAA with Negative trend as of
the date of this press release.

-- The consistency of the transaction's legal structure with DBRS
Morningstar's "Legal Criteria for European Structured Finance
Transactions" methodology and presence of legal opinions addressing
the assignment of the assets to the issuer.

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

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


FERGUSON MARINE: Unsecured Creditors to Get 9p for Every GBP1 Due
-----------------------------------------------------------------
Greig Cameron at The Times reports that dozens of businesses will
be left thousands of pounds out of pocket by the collapse of the
Ferguson shipyard.

According to The Times, administrators have told the unsecured
creditors of Ferguson Marine Engineering (FMEL) they are estimated
to receive 9p for every GBP1 due.

The Port Glasgow business went into insolvency last summer after a
long-running dispute over a GBP97 million contract to build ferries
for the Scottish government, The Times recounts.  The bill for the
vessels is thought to be more than GBP200 million and the first one
will not be in service until 2022, four years later than planned,
The Times discloses.  The yard was purchased from administration by
Scottish ministers in December last year, The Times relays.

Deloitte, the administrator, has given an update in a document
lodged at Companies House, The Times notes.


GVC HOLDINGS: S&P Alters Outlook to Stable & Affirms 'BB' ICR
-------------------------------------------------------------
S&P Global Ratings revised its outlook on GVC Holdings PLC to
stable from positive. At the same time, S&P affirmed its 'BB'
long-term issuer credit rating on GVC and its 'BB' issue rating on
its debt. S&P also assigned issue and recovery ratings of 'BB' and
'3', respectively, to GVC's new GBP535 million revolving credit
facility (RCF).

The stable outlook reflects S&P's view that GVC's market leading
positions, strong brands, and spread across numerous geographies
and product types provide it with neccessary diversification to
enable it to generate free operating cash flow (FOCF) of about
GBP250 million in 2020.

Regulatory changes in Germany and the U.K. and investigations
around payment processing in its former Turkish business represent
significant headwinds

The U.K. and Germany accounted for about 53% and 9%, respectively,
of GVC's 2019 net gaming revenue (NGR). In Germany, gaming
operators will be permitted to operate online casino, poker, and
sports betting during the transition period beginning from October
2020, provided the regulations specified within the Interstate
Treaty, effective from July 2021, are proactively implemented from
Oct. 15, 2020.

The immediate effect of the tolerance policy for GVC includes:

-- A restriction on online table games such as Blackjack and
Roulette;

-- A potential monthly cap on deposits for slots and poker; and

-- Restrictions on some in-play sports betting markets and monthly
limits on sports wagers, if the 2020 sports betting licenses are
issued.

Similarly, S&P expects the U.K. government to set out the scope and
timescale of its Gambling Act Review in the coming months. The
House of Lords' recent report made several recommendations
including restricting the speed of play along with maximum stakes
for online gaming, steps operators need to take to assess customer
affordability, and restrictions on advertising. The scale, impact,
and disruption arising from both these new regulations are
uncertain and could be significant in the near term. Stricter
regulations tend to benefit the larger players in the long term as
they have the scale, resources, technology, and liquidity to
implement the changes during the transition phase.

An additional challenge arises from HMRC's investigation relating
to processing by former third-party suppliers to GVC in Turkey. The
group disposed of its Turkish business in December 2017. HMRC's
investigation is for "potential corporate offending" and exposes
the overall group to both financial and reputational risks.

Strong online positioning, cost-cutting measures, and HMRC VAT
refund helps GVC maintain its forecast credit metrics in 2020
despite the significant impact of COVID-19 on its retail
operations.   COVID-19-related cancellations of global sporting
events and closure of retail stores (about 40% of its revenue)
disrupted the group in the first half (H1) of 2020. GVC reported
NGR declines of about 47% in both its U.K. and European retail
segments in H1 2020. While the stores have reopened since the
lockdown, it will be a while before the lasting effect of the
pandemic on retail stores can be understood as some users may
migrate to online channels permanently. Nevertheless, GVC's revenue
declined by just 10% in H1 2020 as its online segment (particularly
gaming) increased significantly during lockdown, offsetting the
losses in other segments. The group benefited from owning the
technological platform and multiple well-known brands as customers
sought alternatives to substitute the lack of sport events. GVC
preserved liquidity by reducing its marketing spend, canceling its
dividend payments of about GBP200 million, and improving its
covenant flexibility by refinancing its old GBP550 million RCF.
Additionally, a windfall VAT refund of GBP200 million due from the
HMRC by December 2020 will offset the negative cash flow effect of
the COVID-19-related lockdown. Therefore, S&P forecasts the group's
leverage to be about S&P Global Ratings-adjusted 4.0x, similar to
the level in 2019. S&P also forecasts FOCF of about GBP250
million-GBP300 million in 2020 compared with GBP250 million in
2019.

GVC is unlikely to achieve its financial policy of a stipulated
leverage target of company reported 1x-2x within the next 12-18
months.  Like other U.K.-listed gaming companies, GVC's stated
long-term financial leverage target is 1x-2x (which translates in
S&P Global Ratings-adjusted leverage of about 2.2x-3.2x, based on
current period adjustments). However, the group has not achieved
its stated policy since the acquisition of Ladbrokes Coral Group in
March 2018. Due to various subsequent regulatory changes, one-off
payments, the effects of the COVID-19 outbreak, and other cash
investments, GVC's leverage remains well above its target financial
policy levels. In the context of adhering to its publicly stated
financial policy, S&P views this as credit negative. As of June 30,
2020, the group reported its leverage as 2.9x (4.1x in our adjusted
terms). While its peers such as Flutter PLC and William Hill PLC
issued equity in H1 2020 to reduce its leverage aggressively toward
their stated target, its current base-case forecasts for GVC
incorporate no equity raising but rather deleveraging from EBITDA
growth over the medium term.

The U.S market represents a significant growth opportunity but will
be extremely competitive.  GVC estimates the U.S. sporting betting
and online gaming market will be worth about $20.3 billion by 2025.
GVC aims to achieve about 15%-20% market share via BetMGM (its 50%
joint venture with MGM resorts). As such, the group has committed
to invest $125 million equity over the next three years in addition
to the initial $100 million already committed. The joint venture is
unlikely to generate any EBITDA in the next three years because of
the marketing and customer acquisition costs required to build
scale and market position. While BetMGM will benefit from MGM's
superior brand recall value, peers such as DraftKings and FanDuel
are in a strong competitive positon, in our view, through their
fantasy sport affiliation and years of previously sunk marketing
spend. However, there are signs that BetMGM is strengthening its
position in the gaming segment, particularly in New Jersey. GVC
accounts its interest in BetMGM under the equity method, and
therefore the revenue is not reflected within its consolidated
group accounts. Currently, S&P does not include the losses from
this joint venture within its S&P Global Ratings-adjusted EBITDA
definition.

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

-- Health and safety
-- Consumer related

S&P said, "The stable outlook reflects our view that GVC's market
leading positions, strong brands, and geographic and product
diversification provide it with operational stability to enable it
to generate FOCF of about GBP250 million in 2020. It also
incorporates our view that the group's capital allocation policy
will result in gradual deleveraging, with S&P Global
Ratings-adjusted leverage of 4.0x in 2020 and about 3.5x in 2021
while FFO to debt remains about 20% over the next 12 months."

S&P could lower the rating if:

-- The group's operations were significantly hit, for example, by
the regulations under Germany's Interstate Treaty and the U.K.'s
review of the Gambling Act;

-- A spike in COVID-19 cases caused another round of lockdowns,
disrupting sporting events and forcing retail stores to close;

-- Gaming taxation rates across multiple geographies increased by
more than previously expected;

-- HMRC's potential corporate offending investigation were to:

    --highlight material weakness in GVC's internal control and
governance measures;

    --result in material reputational damage;

    --impair the maintenance or awarding of licenses; or

    --progress to a formal prosecution or fines.

-- The group underperformed S&P's base case or maintained leverage
well outside of its stated financial policy target range for a
prolonged period. For example, if the group were unable to maintain
leverage comfortably below 4.5x or its FFO to debt declined below
mid-teens on a sustained basis.

While S&P considers it less likely within the next 12 months, S&P
could raise the rating if:

-- The group were to take meaningful actions to reduce its
leverage to be in line with its long-term financial policy leverage
target of 1x-2x (which translates in S&P Global Ratings-adjusted
leverage of  around 2.2x-3.2x);

-- Stabilization in the macroeconomic and regulatory environment
gave us greater confidence in group trading performance and its
ability to deleverage organically, such that its debt to EBITDA
reduces below 3.5x on a sustained basis; and

-- The HMRC investigation did not result in any detrimental
outcomes to the group.


INTU: Ellandi to Take Over Merry Hill Centre, 200 Jobs Saved
------------------------------------------------------------
BBC News reports that about 200 jobs have been secured at a
shopping centre after a new owner was found.

In June, Intu, the owner of some of the UK's biggest shopping
centres, called in administrators, partly blaming the effects of
the coronavirus pandemic on shopping habits, BBC recounts.

According to BBC, shopping centre operator Ellandi will take on the
Intu Merry Hill centre near Dudley.

It is expected to keep its existing name until a rebrand next year,
BBC notes.

Intu employed 2,500 people across the UK and its wider supply chain
was said to support about 130,000 jobs.

Despite the effects of coronavirus, the firm had also reported
financial problems that predate the pandemic, BBC recounts.

Last year, retail sales fell for the first time in a quarter of a
century, BBC relays, citing trade body the British Retail
Consortium.

In January of this year, Intu was forced to approach its
shareholders to ask for more money amid a downturn in the retail
sector, BBC discloses.


LANDMARK MORTGAGE 3: Fitch Affirms BB+sf Rating on Class D Notes
----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of 16 tranches of Landmark
RMBS series, resolved two rating watch negative (RWN) to Outlook
Negative and changed the Outlook of three notes to Negative from
Stable.

Fitch has taken the rating actions set out in the table below.

RATING ACTIONS

Landmark Mortgage Securities No.3 Plc

Class A XS1110731806; LT AA-sf Affirmed; previously AA-sf

Class B XS1110738132; LT A+sf Affirmed; previously A+sf

Class C XS1110745004; LT BBB+sf Affirmed; previously BBB+sf

Class D XS1110750699; LT BB+sf Affirmed; previously BB+sf

Landmark Mortgage Securities No.2 Plc

Class Aa XS0287189004; LT AA+sf Affirmed; previously AA+sf

Class Ac XS0287192727; LT AA+sf Affirmed; previously AA+sf

Class Ba XS0287192131; LT BBB+sf Affirmed; previously BBB+sf

Class Bc XS0287193451; LT BBB+sf Affirmed; previously BBB+sf

Class C XS0287192214; LT BB+sf Affirmed; previously BB+sf

Class D XS0287192644; LT B+sf Affirmed; previously B+sf

Landmark Mortgage Securities No.1 Plc

Class Aa XS0258051191; LT AAAsf Affirmed; previously AAAsf

Class Ac XS0260674725; LT AAAsf Affirmed; previously AAAsf

Class B XS0260675888; LT AAAsf Affirmed; previously AAAsf

Class Ca XS0258052165; LT A+sf Affirmed; previously A+sf

Class Cc XS0261199284; LT A+sf Affirmed; previously A+sf

Class D XS0258052751; LT B+sf Affirmed; previously B+sf

TRANSACTION SUMMARY

The transactions are UK non-conforming and backed by mixed pools
originated by Amber Home Loans, Infinity Mortgages and Unity
Homeloans.

KEY RATING DRIVERS

Rating Watch Resolved (LMS 2)

The RWN on class C and D notes of Landmark 2 (LMS 2) has been
resolved. These were placed in April 2020 in response to the
outbreak of the coronavirus pandemic. They were placed on RWN due
to an expectation of weakening asset performance. These notes were
considered exposed both due to their junior ranking for principal
redemptions and as their interest payments rely on sufficient
revenue funds being available at a junior position in the priority
of payments. The transactions have now been analysed under its
coronavirus assumptions and the ratings were considered
sufficiently robust to be affirmed. However, Fitch has assigned
them Negative Outlooks, in addition to class B and the class D for
Landmark 1 (LMS 1).

Coronavirus-Related Alternative Assumptions

Fitch expects a generalised weakening in borrowers' ability to keep
up with mortgage payments due to the economic impact of the
coronavirus pandemic and the related containment measures. As a
result, Fitch applied alternative coronavirus assumptions to the
mortgage portfolio.

The combined application of revised 'Bsf' representative pool
weighted average foreclosure frequency (WAFF), revised rating
multiples and higher probability of loans in payment holiday
rolling to arrears for both the owner-occupied (OO) and the
buy-to-let (BTL) sub-pools, resulted in a multiple to the current
foreclosure frequency (FF) assumptions of very minor impact at
'AAAsf' and 1.24x, 1.26x and 1.25x at 'Bsf' for LMS 1, LMS 2 and
LMS 3, respectively. The alternative coronavirus assumptions are
more modest for higher rating levels as the corresponding rating
assumptions are already meant to withstand more severe shocks.

Fitch also applied a payment holiday stress for the first 12 months
of projections, assuming up to 30% of interest collections will be
lost, and related principal receipts will be delayed.

Impact of Payment Holidays

Of the portfolio loans of LMS 1, LMS 2 and LMS 3, 8.3% (end-June
2020), 11.5% (end-June) and 14.4% (end-July), respectively, were on
payment holidays. Fitch expects providing borrowers with a payment
holiday to have a temporary positive impact on loan performance.
However, the transaction may face some liquidity constraints if a
large number of borrowers opt for a payment holiday. Fitch has
tested the ability of the liquidity reserves to cover senior fees
and note interests, and found that payment interruption risk would
be mitigated.

Significant Tail Risk

The transactions are exposed to significant tail risk in light of
pro-rata pay and interest-only (IO) exposure. LMS 1 and LMS 2
mitigate this risk via the sequential allocation of principal
receipts once the debt outstanding is less than 10% of the original
amount. However, LMS 3 lacks this mitigating feature. LMS 3's class
A notes are constrained by the account bank provider's rating (HSBC
Bank PLC, AA-/Negative/F1+), where the reserve fund is credited.
This can be the only source of credit enhancement in scenarios
where the collateral performance deteriorates but remains within
the conditions for pro-rata payments. The Negative Outlook on LMS
3's class A notes reflects a similar outlook on HSBC. The
unmitigated tail risk in light of pro-rata pay and IO exposure
drives Fitch assignation of an ESG Relevance Score of '5'.

In addition, the rating of the class C notes of LMS 1 might be more
exposed to tail risk given its low seniority so that its rating was
kept in the 'A' category, i.e. at a level comparable to that of the
account bank (Barclays Bank plc, A+/RWN/F1) on which it may rely as
reserve fund holder to face tail risk.

Interest-Only Maturities

The transactions all have a large portion of IO loans (87.0% for
LMS 1, 92.2% for LMS 2 and 94.6% for LMS 3) with the highest
maturity concentration in one year of 22.26% (in 2031), 42.74% (in
2031) and 45.42% (in 2032) for LMS 1, LMS 2 and LMS 3,
respectively. Additionally, 1.34%, 1.20% and 0.99% of IO loans have
missed the maturity bullet - a slight improvement compared with
Fitch's last review. Fitch has tested scenarios where loan
maturities are extended by 24 months (given the proximity to bond
legal final maturity) and found this to be a rating driver for LMS
1's D notes.

Negative Outlook

Fitch has assigned a Negative Outlook to classes B, C and D for LMS
2 and Class D for LMS 1. Fitch considers these classes as more
vulnerable to collateral underperformance or prolonged payment
holidays. In assigning a Negative Outlook, Fitch considered its
downside sensitivity, a 15% increase in foreclosure frequency and a
15% reduction in recovery rate, which suggested the possibility for
downgrade should the economic outlook worsen beyond its baseline
expectations.

RATING SENSITIVITIES

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

The broader global economy remains under stress due to the
coronavirus pandemic, with surging unemployment and pressure on
businesses stemming from social-distancing guidelines. Recent
government measures related to the coronavirus pandemic introduced
a suspension on tenant evictions for three months and mortgage
payment holidays, also for up to three months. Fitch acknowledges
the uncertainty of the path of coronavirus-related containment
measures and has therefore considered more severe economic
scenarios.

As outlined in "Fitch Ratings Coronavirus Scenarios: Baseline and
Downside Cases", Fitch considers a more severe downside coronavirus
scenario for sensitivity purposes whereby a more severe and
prolonged period of stress is assumed with a halting recovery from
2Q21. Under this scenario, Fitch assumes a 15% increase in WAFF and
a 15% decrease in WARR. The results indicate up to five notches for
LMS 1, four notches for LMS 2 and three notches for LMS 3 adverse
rating impact.

The transaction's performance may be affected by changes in market
conditions and economic environment. Weakening asset performance is
strongly correlated to increasing levels of delinquencies and
defaults that could reduce credit enhancement (CE) available to the
notes.

Additionally, unanticipated declines in recoveries could also
result in lower net proceeds, which may make certain note ratings
susceptible to potential negative rating actions depending on the
extent of the decline in recoveries. Fitch conducts sensitivity
analyses by stressing both a transaction's base-case FF and
recovery rate (RR) assumptions, and examining the rating
implications on all classes of issued notes.

Ratings may be sensitive to the resolution of the Libor rate
exposure on both the mortgages and the notes. For example, if a
material basis risk is introduced or there is a material reduction
in the net asset yield then ratings may be negatively affected.

Ratings are sensitive to the owner-occupied IO loan maturity
profile and, in particular, the ability of borrowers to redeem such
loans on a timely basis.

Ratings are sensitive to the amortisation profile of the notes. A
switch to sequential (prior to the 10% pool balance) may be
positive for the junior notes. However, the effect may be offset by
the negative factors that gave rise to the trigger breach.

The class A notes' rating is capped at HSBC Bank plc's Long-Term
Issuer Default Rating (LT IDR). If HSBC Bank Plc's LT IDR was
downgraded, this could lead to an event-driven downgrade of the
class A notes.

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

A stable to improved asset performance driven by stable
delinquencies and defaults would lead to increasing credit
enhancement (CE) levels and potential upgrades. Fitch tested an
additional rating sensitivity scenario by applying a decrease in
the FF of 15% and an increase in the RR of 15%. The ratings for the
subordinated notes could be upgraded by up to five notches for LMS
1, four notches for LMS 2 and four notches for LMS 3.

The highest achievable rating for the class A notes' is equal to
the LT IDR of the transaction account bank, currently at 'AA-sf'.
Any upgrade of the notes would be conditional upon an upgrade HSBC
Bank plc's LT IDR, or the appointment of an alternative account
bank with a higher LT IDR.

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. There were no findings that affected
the rating analysis. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Fitch did not undertake a review of the information provided about
the underlying asset pools ahead of the transactions' initial
closing. The subsequent performance of the transactions over the
years is consistent with the agency's expectations given the
operating environment and Fitch is, therefore, satisfied that the
asset pool information relied upon for its initial rating analysis
was adequately reliable.

Overall, 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.

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.

ESG CONSIDERATIONS

Landmark Mortgage Securities No.1 Plc: Customer Welfare - Fair
Messaging, Privacy & Data Security: '4', Human Rights, Community
Relations, Access & Affordability: '4'

Landmark Mortgage Securities No.2 Plc: Customer Welfare - Fair
Messaging, Privacy & Data Security: '4', Human Rights, Community
Relations, Access & Affordability: '4'

Landmark Mortgage Securities No.3 Plc: Customer Welfare - Fair
Messaging, Privacy & Data Security: '4', Human Rights, Community
Relations, Access & Affordability: '4'

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


LIBERTY GLOBAL: Egan-Jones Hikes Senior Unsecured Ratings to B+
---------------------------------------------------------------
Egan-Jones Ratings Company, on September 8, 2020, upgraded the
local currency senior unsecured ratings on debt issued by Liberty
Global PLC to B+ from B-.

Headquartered in London, United Kingdom, Liberty Global PLC owns
interests in broadband, distribution, and content companies
operating outside the continental United States, principally in
Europe.


NEWDAY PARTNERSHIP: DBRS Confirms B Rating on 2 Note Classes
------------------------------------------------------------
DBRS Ratings Limited confirms and downgrades the ratings of NewDay
Partnership Funding related transactions as follows:

NewDay Partnership Funding 2017-1 plc:

Class A Notes: confirmed at AAA (sf)
Class B Notes: downgraded to AA (sf) from AAA (sf)
Class C Notes: downgraded to A (sf) from AA (high) (sf)
Class D Notes: downgraded to BBB (high) (sf) from A (sf)
Class E Notes: downgraded to BB (sf) from BBB (sf)
Class F Notes: confirmed at B (sf)

NewDay Partnership Funding Loan Note Issuer VFN-P1 V1:

Class A Notes: downgraded to BBB (high) (sf) from A (sf)
Class E Notes: confirmed at BB (sf)
Class F Notes: confirmed at B (sf)

NewDay Partnership Funding Loan Note Issuer VFN-P1 V2:

Class A Notes: confirmed at AAA (sf)
Class B Notes: downgraded to AA (sf) from AAA (sf)
Class C Notes: downgraded to A (sf) from AA (high) (sf)
Class D Notes: downgraded to BBB (high) (sf) from A (sf)
Class E Notes: confirmed at BB (sf)
Class F Notes: confirmed at B (sf)

Except for two AAA (sf) rated Class A Notes which was not placed
Under Review with Negative Implications (UR-Neg.), the rating
actions above remove the relevant ratings from such status, where
they were first placed on 28 May 2020 and maintained on 28 August
2020. For more information, please refer to
www.dbrsmorningstar.com.

The ratings address timely payment of scheduled interest and
ultimate repayment of principal by the relevant legal final
maturity dates.

DBRS Morningstar based its ratings on information provided by the
issuer and its agents as of the date of this press release.

The notes are backed by a portfolio of co-branded credit cards
(with limited legacy store cards and installment credit) affiliated
with high street and online retailers granted to individuals
domiciled in the UK by NewDay Cards (the originator).

The ratings are based on the following analytical considerations:

-- The transaction's capital structure, including form and
sufficiency of available credit enhancement to support DBRS
Morningstar's revised expectation of charge-off, principal payment,
and yield rates under various stress scenarios.

-- The ability of the transaction to withstand stressed cash flow
assumptions and repays the notes.

-- The originator's capabilities with respect to originations,
underwriting, and servicing.

-- An operational risk review of the originator, which DBRS
Morningstar deems to be an acceptable servicer.

-- The transaction parties' financial strength regarding their
respective roles.

-- The credit quality, diversification of the collateral, and
historical and projected performance of the securitized portfolio.

-- DBRS Morningstar's sovereign rating of the United Kingdom at
AAA with a Negative trend.

-- The consistency of the transaction's legal structure with DBRS
Morningstar's "Legal Criteria for European Structured Finance
Transactions" methodology.

TRANSACTION STRUCTURE

The notes are part of the master issuance structure of Newday
Partnership Funding, where all series of notes are supported by the
same pool of receivables and generally issued under the same
requirements regarding servicing, amortization events, priority of
distributions, and eligible investments.

The transactions include scheduled revolving periods. During this
period, the issuer may purchase additional receivables provided
that the eligibility criteria set out in the transaction documents
are satisfied. The revolving period may end earlier than scheduled
if certain events occur, such as the breach of performance triggers
or servicer termination. The scheduled revolving period may be
extended by the servicer by up to 12 months. If the notes are not
fully redeemed at the end of the respective scheduled revolving
periods, the transaction enters into a rapid amortization.

The interest rate mismatch risk between the fixed-interest rate
collateral and floating-rate coupons of the notes is, to a degree,
mitigated by the excess spread in the transactions and considered
in DBRS Morningstar's cash flow analysis.

The transactions include series-specific liquidity reserves that
are available to cover the shortfalls in senior expenses and
interests on the notes.

COUNTERPARTIES

Citibank N.A. is the account bank for the transactions. Based on
DBRS Morningstar's rating of Citibank and the downgrade provisions
outlined in the transaction documents, DBRS Morningstar considers
the risk arising from the exposure to the account bank to be
commensurate with the ratings assigned.

PORTFOLIO AND CASH FLOW ASSUMPTIONS

The Coronavirus Disease (COVID-19) and the resulting isolation
measures have caused an economic contraction, leading to increases
in unemployment rates and adverse financial impact on many
borrowers. DBRS Morningstar anticipates that delinquencies could
continue to rise, and payment and yield rates could remain subdued
in the coming months for many credit card portfolios. The ratings
are based on additional analysis and adjustments to expected
performance as a result of the global efforts to contain the spread
of the coronavirus.

The estimated monthly principal payment rates (MPPRs) of the
securitized portfolio have been largely stable above 20% over the
reported period until March 2020. The most recent performance in
June 2020 shows an estimated MPPR of 16.1%, after a record low
level of 14.6% in May because of the impact of coronavirus. The
MPPRs appear to have stabilized but remain lower than historical
levels. Based on the analysis of historical data, macroeconomic
factors and the portfolio-specific COVID-19 adjustments, DBRS
Morningstar revised the expected MPPR down to 16% from 20.5%.

Similarly, the portfolio yield is largely stable over the reported
period until March 2020. The most recent performance in June 2020
shows an interest yield of 19.2%, a record low level because of the
forbearance measures of payment holiday and payment freeze offered
and higher delinquencies. DBRS Morningstar, nonetheless, maintained
the expected cash interest yield at 19%, after consideration of the
observed trend and potential yield compression because of the
forbearance measures.

The reported historical charge-off rates have been below 5% since
2015 until March 2020. The most recent performance in June 2020
shows an annualized charge-off rate of 6.3%, a record high level
over the past five years likely because of coronavirus. Based on
the analysis of delinquency trends, macroeconomic factors and the
portfolio-specific adjustment because of the impact of coronavirus,
DBRS Morningstar revised the expected charge-off rate upward to 7%
from 5%.

DBRS Morningstar also elected to stress the asset performance
deterioration over a longer period for the notes rated below
investment grade in accordance with its "Rating European Consumer
and Commercial Asset-Backed Securitizations" methodology.

DBRS Morningstar analyzed the transaction structure in its
proprietary cash flow tool.

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


SUBSEA 7: Egan-Jones Lowers Senior Unsecured Ratings to BB+
-----------------------------------------------------------
Egan-Jones Ratings Company, on September 8, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Subsea 7 SA to BB+ from BBB-.

Headquartered in Sutton, United Kingdom, Subsea 7 SA offers
oilfield services.


WIGAN ATHLETIC: May Face Liquidation, Administrators Say
--------------------------------------------------------
Arvind Sriram at Reuters reports that Wigan Athletic are struggling
to find investors due to the COVID-19 pandemic and there is a
danger they could be wound up like Macclesfield Town, one of the
third-tier club’s administrators has said.

Macclesfield were relegated from the fourth-tier of English soccer
this year and were wound up in the High Court over debts exceeding
GBP500,000 (US$647,600), Reuters discloses.

Wigan went into administration in July, less than a month after
being taken over by a partnership headed by Hong Kong businessman
Au Yeung Wai Kay, and were handed a 12-point deduction that saw
them relegated to League One, Reuters recounts.

Paul Stanley, Gerald Krasner and Dean Watson of Begbies Traynor
were appointed as joint administrators of the Latics, who spent
eight seasons in the Premier League before they were relegated in
2013, the same year they won the FA Cup, Reuters relates.




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

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

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

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

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

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

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

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

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



                           *********


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

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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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                * * * End of Transmission * * *