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

                          E U R O P E

          Thursday, October 15, 2020, Vol. 21, No. 207

                           Headlines



F R A N C E

STAN HOLDING: Fitch Assigns 'BB(EXP)' IDR, Outlook Stable
TEREOS FINANCE 1: Fitch Rates EUR300MM Sr. Unsec. Bonds 'B+(EXP)'


G E R M A N Y

DEUTSCHE BANK: Fitch Hikes Rating on Add'l. Tier 1 Debt to 'BB-'
TECHEM VERWALTUNGSGESELLSCHAFT: Fitch Affirms B IDR, Outlook Neg.
[*] GERMANY: Corporate Insolvencies May Rise by 35% by March


I R E L A N D

L & M KEATING: High Court Confirms Appointment of Examiner


L U X E M B O U R G

CURIUM BIDCO: Fitch Puts 'BB-' LongTerm IDR on Watch Negative
CURIUM MIDCO: S&P Alters Outlook to Negative & Affirms 'B' ICR
MAXEDA DIY: S&P Hikes Issuer Credit Rating to 'B-' on Refinancing


N E T H E R L A N D S

ARES EUROPEAN XI: Fitch Affirms Class F Notes at 'B-sf'


N O R W A Y

ADEVINTA ASA: Fitch Assigns BB(EXP) LT IDR, Outlook Stable
ADEVINTA ASA: S&P Assigns Preliminary 'BB-' LT ICR, Outlook Stable


P O R T U G A L

TAP: Restructuring Plan to Be Sent to EU Commission in November


R U S S I A

BANK MAYSKIY: Bank of Russia Revokes Banking License
BANK PROHLADNYJ: Bank of Russia Revokes Banking License


T U R K E Y

ALTERNATIFBANK AS: Fitch Affirms B+ LongTerm IDR, Outlook Neg.
BURGAN BANK: Fitch Affirms B+ LongTerm IDR, Outlook Negative
ICBC TURKEY: Fitch Affirms 'B+' LongTerm IDR
TURKLAND BANK: Fitch Affirms 'B' LongTerm IDRs, Outlook Negative


U N I T E D   K I N G D O M

CANTERBURY FINANCE 1: Fitch Affirm BBsf Rating on 2 Tranches
CURIUM BIDCO: Moody's Cuts Corp Family Rating to B3, Outlook Stable
ENQUEST PLC: S&P Alters Outlook to Stable & Affirms 'CCC+' ICR
GOURMET BURGER: Bought Out of Administration by Boparan
ROLLS-ROYCE PLC: S&P Gives BB- Issuer Rating, Rates Unsec. Notes BB

WPP PLC: Egan-Jones Lowers Senior Unsecured Ratings to BB-

                           - - - - -


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F R A N C E
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STAN HOLDING: Fitch Assigns 'BB(EXP)' IDR, Outlook Stable
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Fitch Ratings has assigned Stan Holding SAS (Voodoo) a first-time
expected Long-Term Issuer Default Rating (IDR) of 'BB(EXP)' with a
Stable Outlook. Fitch has also assigned an expected rating of
'BB+(EXP)'/'RR2' to Voodoo's EUR220 million senior secured term
loan. The assignment of final ratings is contingent on the receipt
of final documents being in line with the information received for
the expected ratings.

Voodoo is the largest global publisher of mobile hyper-casual games
with around 1 billion of downloads in Apple's App store and Google
Play in 1H20 and 4.1 billion cumulative downloads to June 2020.

The ratings of Voodoo reflect its strong position in its market
niche, a well-established business model, robust free cash flow
(FCF) generation, modest leverage, which are balanced with its
small scale and execution risks.

KEY RATING DRIVERS

Market Pioneer: Voodoo pioneered the hyper-casual games model and
has a strong record of successful game launches. Its own developers
and around 2,000 partner game development studios are constantly
generating new ideas. It uses internally developed algorithms and
managers' expertise in identifying the most promising titles.
Voodoo then delivers them to the app stores and acquires customers
via advertisements in third-party apps, own games and on social
networks. Monetisation of these games is mainly from customers
viewing in-app advertising.

Low-Risk Business Model: Fitch believes that Voodoo's model is
lower-risk than the traditional game development cycle where
substantial time and money are spent on production while the
visibility of the game's success and payback is low. Hyper-casual
games have low development cost for a high number of games, quick
delivery to the market and high revenue visibility based on initial
performance. Customer-acquisition spending - a main cost component
- can be reduced if a game does not perform in line with
expectations. This provides costs flexibility and makes investments
in the promotion of games success-driven. Voodoo has spent years
establishing and fine-tuning its business model, which Fitch does
not expect to be easily replicated by other publishers.

Competitive Market: The mobile gaming market is fragmented and
competitive due to low barriers to entry and attractive growth.
High growth and success stories attract new developers and
publishers into the hyper-casual sector including from the
neighbouring segment of casual games. As this segment is getting
more saturated, users may become more demanding in game quality and
more sensitive to extensive in-game ads, which may adversely impact
monetisation.

Small Scale a Constraint: Fitch believes that Voodoo's small
absolute EBITDA and cashflow and focus on a single genre are a
rating constraint. The video game industry is inherently hit-driven
and highly competitive, which increases the potential volatility of
cash flows. Voodoo is able to manage this risk in the hyper-casual
segment with data analysis and an ability to shift focus and
efforts towards more successful projects. Its planned entry into
the casual games segment (larger than the hyper-casual segment)
should diversify its active user base and generate additional
revenues from in-app purchases.

Execution Risks from Expansion: Plans to expand its presence to
casual games carry execution risks as the business model differs
from that of hyper-casual games. Differences include timing and
costs of game development, monetisation mechanics, games' lifecycle
and target audience. Fitch is yet to see how Voodoo would extend
innovative gameplay used in hyper-casual games to monetise casual
games. Fitch reflects such risks in more conservative revenue
assumptions versus management's and tighter leverage thresholds
relative to that of other media and entertainment peers, which are
generally larger than Voodoo.

Tencent Partnership Supportive: Fitch believes that Voodoo's
partnership with Chinese media conglomerate Tencent should be
supportive for the company's expansion in APAC. Voodoo generates
only 19% from APAC, which is disproportionally low given that
globally it is the largest market. Expansion in APAC is one of
Voodoo's strategic priorities and Tencent is well-placed to help
the company distribute and promote games via its local distribution
channels and by tailoring games to local tastes. Tencent acquired
26% in Voodoo in August 2020.

Low Leverage: Fitch expects Voodoo's funds from operations (FFO)
gross leverage to decline to 2.7x in 2021 from 3.4x in 2020, driven
primarily by revenue growth and profitability improvement. Further
deleveraging is possible but will depend on the successful
execution of the company's plan to expand into the casual games
segment, continuing growth in hyper-casuals and its ability to
improve margins.

Key Man Risk: Voodoo founders still control the company and one of
the founders Alexandre Yazdi is the current CEO. Fitch believes
that this is supportive of the company's credit profile as the
founders currently prefer a more conservative capital structure and
prioritise the long-term growth of the company over short-term
shareholder remuneration. On the other hand, the concentration of
decision-making power makes the company's success reliant on a key
person, whose departure would create uncertainty.

Strong FCF Generation: Fitch expects Voodoo to generate strong FCF
of EUR50 million-EUR80 million in 2020-2023, which implies FCF
margin in the low to mid-teens. Fitch does not project early
repayment of debt and believe that excess cash will be spent on
investments in further expansion or, to a lesser extent, payment of
dividends. With low visibility on the use of excess cash, Fitch is
focusing on gross leverage metrics.

DERIVATION SUMMARY

Voodoo's ratings are supported by the company's strong position in
the mobile hyper-casual gaming market, the company's expertise in
consistent delivery of new successful game titles and their
efficient monetisation as well as by a strong financial profile.
Compared with the broader media and entertainment sector, Voodoo
exhibits higher revenue growth prospects, EBITDA and FCF margins.
The ratings are constrained by Voodoo's small scale, lack of
platform and game genre diversification and by an exposure to a
hit-driven volatility of the gaming industry, which is partially
mitigated by company's expertise and strong track record.

Voodoo's peers in the gaming sector Electronic Arts Inc (A-/Stable)
and Activision Blizzard have significantly larger scale and robust
portfolios of established gaming franchises. Their ratings benefit
from diversification by game console, PC and mobile revenues, low
leverage and strong FCF generation.

Compared with similarly sized companies that are exposed to TV,
video and visual effects production like Banijay Group SAS
(B/Negative) and Prime Focus World N.V. (DNEG, B+/Stable) Voodoo
exhibits higher revenue growth, stronger margins and is notably
less leveraged. Voodoo's leverage profile is partially comparable
with that of larger media groups RELX PLC (BBB+/Stable) and WPP
plc, which benefit from businesses diversification, low leverage, a
high proportion of subscription-based revenue and stronger
discretionary cash flows that support higher ratings. Another media
peer Daily Mail and General Trust Plc (BBB-/Stable) operates with
low leverage but is affected by uncertainties in the evolution of
print circulation and advertising and the likely need for continued
investment in new products and digital platforms.

KEY ASSUMPTIONS

Fitch's Key Assumptions within its Rating Case for the Issuer:

  - Revenue to grow 12% in 2020 and 25% in 2021 due to contribution
from the casual games segment. Total revenue growth in the mid- to
low-teens in 2022-2023 with the revenue mix contribution from
casual games increasing to 20% in 2023 from 10% in 2021.

  - Fitch-defined EBITDA margin at 18.5% in 2020, improving to 25%
by 2022.

  - Capex at 1.3%-1.6% of revenue in 2020-2023

  - Modest positive working capital inflow in 2020 followed by EUR7
million - and increasing - working capital outflow from 2021 to
support development and expansion

  - EUR5 million of annual M&A on small bolt-on acquisitions and
earn-outs from previous deals until 2023

RATING SENSITIVITIES

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

  - Successful diversification into the casual gaming segment as
evidenced by growing contribution of the latter to revenue and
EBITDA

  - FFO gross leverage sustainably below 2.0x

  - Sustainable improvement of Fitch-defined EBITDA margin towards
25%

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

  - Intensified competition resulting in pressures on revenue
growth and margins

  - FFO gross leverage sustainably above 3.0x

ESG CONSIDERATIONS

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

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: Once the term loan is contracted, Fitch expects
Voodoo to have a strong liquidity profile, with estimated EUR75
million of cash on the balance at end-2020, an untapped EUR50
million revolving credit facility and sustainable positive FCF
generation.


TEREOS FINANCE 1: Fitch Rates EUR300MM Sr. Unsec. Bonds 'B+(EXP)'
-----------------------------------------------------------------
Fitch Ratings has assigned Tereos Finance Groupe 1's (FinCo)
planned EUR300 million five-year bond an expected senior unsecured
rating of 'B+(EXP)'. FinCo is a subsidiary of Tereos SCA, which has
a Long-Term Issuer Default Rating (IDR) of 'BB-' with Negative
Outlook.

The planned bond's 'B+(EXP)' rating is in line with the rating of
EUR600 million senior unsecured bonds currently outstanding at
FinCo and is derived from the consolidated Tereos' IDR of 'BB-'.
Prior-ranking debt at Tereos' operating entities constitutes more
than 2.5x consolidated EBITDA, which Fitch expects to remain
largely unchanged for the next four years. Under its criteria this
indicates a high likelihood of subordination and lower recoveries
for unsecured debt raised by FinCo, which Fitch reflects by
notching down the bond's rating once from Tereos' IDR. In the event
of an IDR downgrade to the 'B' category, weak recoveries could lead
to a differential between the IDR and the senior unsecured rating
by up to two notches.

The assignment of the final senior unsecured bond rating is
contingent on the receipt of final documents, along with the
confirmation of amount, maturity, and pricing in line with its
expectations and information already received.

Tereos' 'BB-' IDR reflects Fitch's expectations that, despite
weaker sugar price and volume prospects, the company's
strengthening operations, which include a more flexible cost
structure, should sufficiently mitigate market risks and allow
continued de-leveraging to levels that are consistent with the
rating by financial year to March 2023, at the latest. The bond
issue is neutral to the leverage as proceeds will be used to repay
debt. The Negative Outlook reflects uncertainty around the pace of
both recovery and deleveraging.

KEY RATING DRIVERS

Mild Price Recovery: While international sugar prices remain close
to historical lows, Tereos' FY20 and 1QFY21 results show the
company has since September 2019 been able to lock in firmer
prices, which combined with cost-optimisation measures, allowed it
to achieve stronger EBITDA than the trough of FY19 (when it fell
50%). However, Fitch sees global supply-and-demand dynamics only
supporting a mild price recovery above current levels. Despite
improving farming yields, shrinking demand for sugar in the
developed world is only going to be compensated by growth in
emerging markets. Fitch now expects sugar prices to average
12cts/lb, one cent below its previous forecasts.

High Sugar Stocks: Stock-to-use ratios remain high after years of
abundant crops. Fitch believes that the lower production connected
to the decline of French farming yields is only compensating the
contraction in sugar and ethanol demand earlier in 2020 during the
pandemic lockdown.

FY19-FY21 Negative Cash Flow: Fitch expects free cash flow (FCF) to
remain negative at a cumulative post- dividend outflow of EUR170
million in FY21-FY22, as profitability sees slow growth while
planned capex and working capital outflows weaken cash flow
generation. Tereos' business profile requires continued maintenance
capex and the company is making de-bottlenecking investments in its
starch and sweeteners plants. The impact on its net debt position
should be manageable due to around EUR200 million divestment
proceeds in FY20.

Lengthy Deleveraging: Due to its assumptions of lower sugar prices,
combined with yield reduction in France for the 2020/2021 crop,
Fitch expects readily marketable inventories (RMI)-adjusted funds
from operations (FFO) net leverage to remain above 5.0x in FY21,
which is high for the current rating. Fitch forecasts it to
gradually decrease towards 5.0x by FY22 and below from FY23, a
level that is consistent with the current rating - and for FFO to
return to around EUR400 million. Its Negative Outlook reflects
uncertainty around the impact of French yields, and on the pace of
FFO recovery and deleveraging.

Conservative Financial Policy: Tereos has historically been able to
keep shareholder distributions to a minimum and has refrained from
M&A in times of challenging operating conditions. Additionally, its
EUR200 million asset disposal in FY20 demonstrated management's
willingness to support financial flexibility. Fitch believes that
Tereos will continue to have good access to debt capital markets
and adequate liquidity to fund its operations.

Strong Business Profile: Tereos has a business profile that is
commensurate with the mid- to-high end of the 'BB' category through
the cycle. This reflects its large operational scope and strong
position in a commodity market with moderate long-term growth
prospects. Tereos is the world's second-largest sugar company with
production in the EU and Brazil, and good product diversification
from starches to sweeteners, which its investment programme should
strengthen and allow it to reduce the reliance on sugar operations.
Tereos also has flexibility to alternate between sugar- and
ethanol-processing, depending on market prices, as well as a
flexible pricing mechanism for beetroot procurement agreed with its
member farmers.

ESG - Exposure to Environmental Impacts: Tereos has an ESG credit
relevance score of '4' for Exposure to Environmental Impacts as the
volumes of its sugar production in France are affected by
regulation that restrains the use of nicotinoid-based insecticides
in beetroot farming.

The French authorities banned neonicotinoid-based treatments in
2018, causing sugar beet producers to stop using this product for
the 2020/2021 crop. As a result, jaundice has materially expanded
over sugar beet farms, affecting yields although the magnitude
remains unknown. Its forecasts include around a 10% reduction in
French production for the current crop. Fitch believes that
existing inventories and geographic sourcing diversification should
partly offset this impact, mitigating the effect on Tereos' sales
volumes for FY20 and FY21.

The French government announced it intends to reallow neonicotinoid
until 2023, subject to legislation to be voted in October, which is
currently in progress and would provide additional time for Tereos
to finalise alternatives.

DERIVATION SUMMARY

Tereos's 'BB-' IDR is three notches below larger and significantly
more diversified commodity trader and processor Bunge Limited's
(BBB-/Stable). Tereos enjoys a stronger business profile than
Biosev S.A. (B/Negative) and Corporacion Azucarera del Peru S.A.
(B/Stable), whose ratings reflect higher geographic and product
concentration. Tereos also enjoys lower refinancing risk and
greater financial flexibility than both Biosev S.A. and Corporacion
Azucarera del Peru S.A., which is, however, partly offset by
Tereos' higher leverage.

Tereos has comparable scale to but a weaker financial profile than
similarly rated Kernel Holding S.A.'s (BB-/Stable). This is
balanced by Kernel's dependence on a single source of supply,
Ukraine, compared with Tereos's ability to source raw materials
from Europe and Brazil. In addition, although Kernel is gradually
diversifying away from sunflower oil by growing its grain trading,
renewable energy production and infrastructure operations, Fitch
views Tereos as more diversified due to its production and trading
of sweeteners, ethanol, and starches aside from sugar.

KEY ASSUMPTIONS

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

  - USD/EUR at 1.1 over the next four years, USD/BRL at 5.2 in
FY21, improving towards 4.8x by FY24;

  - NY11 stabilising at around 12ct/lb, and European sugar price
around EUR400/ton for FY21-FY24;

  - Fitch-adjusted EBITDA margin improving towards 12% by FY23;

  - Capex of around EUR360 million-EUR370 million per annum up to
FY24;

  - Dividends paid to cooperative members at EUR25 million per
annum up to FY24; and

  - Credit lines used to finance operations are renewed.

RATING SENSITIVITIES

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

  - Strengthening of profitability (excluding price fluctuations),
as measured by RMI-adjusted EBITDAR/gross profit returning to above
30%, reflecting reasonable capacity utilisation in sugar beet and
overall increased efficiency.

  - At least neutral FCF while maintaining strict financial
discipline.

  - Consolidated FFO net leverage (RMI-adjusted) consistently below
4x, aided by debt repayments as opposed to cyclical profit
expansion.

Factors that could, individually or collectively, lead to an
Outlook revision to Stable

  - Consolidated FFO of at least EUR400 million by FY21-FY22.

  - FFO interest coverage (RMI-adjusted) above 2.5x on a sustained
basis, along with enhanced liquidity buffer and progress on
extending the debt maturity profile.

  - FFO net leverage (RMI-adjusted) of 5.0x-5-5x by FY21 and
expected to fall below 5.0x by FY22.

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

  - Reduced financial flexibility as reflected in FFO interest
coverage (RMI-adjusted) falling permanently below 2.5x or inability
to maintain adequate availability under committed medium-term
credit lines.

  - Inability to maintain cost savings derived from efficiency
programme or excessive idle capacity in different market segments,
leading to weak RMI-adjusted EBITDAR/gross profit on a sustained
basis.

  - Inability to return consolidated FFO to approximately EUR400
million.

  - Consolidated FFO net leverage (RMI-adjusted) above 5.0x on a
sustained basis, reflecting higher refinancing risks.

LIQUIDITY AND DEBT STRUCTURE

Satisfactory Liquidity: Tereos had a weak internal liquidity score
for the 'BB' rating category at 0.7x as of FYE20 (defined as
unrestricted cash plus RMI plus accounts receivables divided by
total current liabilities). In its view, this is offset by prudent
balance-sheet management, and access to external funding in Europe
and in Brazil.

Tereos used its EUR225 million revolving credit facility (RCF) due
July 2021 to refinance half of its EUR500 million bond due in March
2020, constraining financial flexibility. It obtained in July 2020
a new EUR230 million state-guaranteed loan, with a maturity of up
to five years. The planned bond should bring in around EUR300
million, further enhancing the company's liquidity position.

In its rating case, Fitch assumes that Tereos will be able to
extend its main RCF, of which EUR211 million was undrawn as of June
30, 2020.

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

Tereos has an ESG credit relevance score of '4' for Exposure to
Environmental Impacts as the volumes of its sugar production in
France are affected by regulation that restrains the use of
nicotinoid-based insecticides in beetroot farming. This has a
negative impact on the credit profile and is relevant to the rating
in conjunction with other factors.

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



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

DEUTSCHE BANK: Fitch Hikes Rating on Add'l. Tier 1 Debt to 'BB-'
----------------------------------------------------------------
Fitch Ratings has upgraded Deutsche Bank AG's Additional Tier 1
(AT1) securities to 'BB-' from 'B+'.

The notes (ISIN US251525AN16, DE000DB7XHP3, XS1071551391,
XS1071551474) are now rated four notches below Deutsche Bank's
Viability Rating (VR) of 'bbb'. Fitch has reduced the notching for
non-performance risk to a baseline of two notches, from previously
three, to reflect the bank's improved capitalisation, including a
common equity Tier 1 (CET1) ratio of 13.3% at end-2Q20 and further
Tier 2 issuance in July, and its outlook that the bank will
maintain a wide enough buffer over its distribution-relevant
requirements. In addition to the two notches for non-performance
risk, the notes remain notched twice for loss severity.

KEY RATING DRIVERS

Deutsche Bank's AT1 securities are rated four notches below the VR
to reflect their deep subordination and high non-performance risk.
Non-performance risk has reduced in its view, due to the bank's
improved total capital position and reduced likelihood that the
CET1 ratio target of 12.5% will be breached this year. Deutsche
Bank's CET1 ratio rose to 13.3% (+42bp) in 2Q20, in contrast to its
expectation of a decline, helped by repayments of revolving credit
facilities, reduced exposure in the capital release unit, reversal
of most of the 1Q20 prudential valuation impact, as well as a
modest 11bp from regulatory relief. Its total capital also improved
due to Tier 2 issuance in May and July.

Consequently, Deutsche Bank's buffer over total capital
requirements relevant for the maximum distributable amount (MDA)
increased to 2.6% (phased-in, pro-forma including the July 2020
issue) from 1.6% at end-1Q20. Assuming the CET1 ratio declines to
the target of 12.5%, and risk-weighted assets (RWA) develop as
guided, Fitch expects the MDA buffer to drop to a still comfortable
about 1.8% at end-2020. In its view, this provides sufficient
comfort that non-performance risk would remain comparable with that
of higher-rated peers' AT1 instruments, and commensurate with the
baseline notching for non-performance, even if the guidance was
missed due to e.g. higher than expected credit losses or RWA
inflation.

Fitch's baseline notching for AT1 securities has changed to four
from five following the publication of updated Bank Rating Criteria
in February 2020, which was driven by a recalibration of the
notching for non-performance risk.

RATING SENSITIVITIES

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

Deutsche Bank's AT1 notes are mainly sensitive to changes in the
bank's VR. The VR is sensitive to progress toward the bank's
restructuring targets and to the economic repercussions of the
coronavirus pandemic. A downgrade of the VR would lead to a
downgrade of the notes.

In addition, the notes could be downgraded back to five notches
below the VR, including three notches for non-performance, if Fitch
no longer believes that the bank can maintain a buffer of over
100bp over distribution-relevant capital requirements. The notching
of these notes is also sensitive to an unexpected increase in
requirements that would trigger coupon restrictions, or to a
decline in distributable reserves.

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

The notes could be upgraded if the bank's VR is upgraded. Upward
pressure on the ratings over the medium term would require
continued successful execution in the bank's restructuring,
including evidence of growing revenue, further progress with
cost-reduction targets and reduction of non-strategic exposures.

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

The securities' rating is liked to Deutsche Bank AG's VR.

ESG CONSIDERATIONS

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


TECHEM VERWALTUNGSGESELLSCHAFT: Fitch Affirms B IDR, Outlook Neg.
-----------------------------------------------------------------
Fitch Ratings has revised Germany-based heat and water sub-metering
services operator Techem Verwaltungsgesellschaft 674 mbH's (Techem)
Outlook to Negative and affirmed its Long-Term Issuer Default
Rating at 'B'. Senior secured instruments ratings have been
affirmed at 'B+'/'RR3'.

The changed Outlook reflects Fitch's expectations of a temporary
increase in leverage and a decrease in cash generation due to
higher operating expenses and capex aimed at improving the
long-term economic and technological efficiency of the group.
Higher-than-expected cash taxes in Germany are also behind its
lower forecasts for funds from operations (FFO) and free cash flow
(FCF) through the cycle. The discretionary part of investments, a
proven resilient business model and solid coverage ratios help
mitigate the increase in financial risk.

Fitch now expects no reduction in FFO gross leverage to below its
downgrade sensitivity until the financial year ending March 2023
(FY23). A reduction of non-recurring costs, margin improvements and
stabilising tax expenses leading to resumed deleveraging over the
next 12 to 18 months will be key to revising its Outlook to Stable.
As Techem is in the process of moving its financial year-end to
September, Fitch will adjust its forecasts accordingly as soon as
sufficient information is made available.

KEY RATING DRIVERS

Increase in Leverage: Fitch expects Techem's leverage, on an FFO
gross basis, to materially rise in FY21 to 9.6x, versus its
previous expectations of around 8.3x, which Fitch expects to fall
below its downgrade sensitivity of 8.0x only by FY23. Its leverage
forecast is based on a structural increase in the tax burden,
precautionary drawdowns under Techem's revolving credit facility
(RCF), and modest growth expected for FY21-FY22. However, the
increase in financial risk is mitigated by a part of the company's
investments being discretionary, particularly those related to
efficiency initiatives.

Challenges in Business Innovation: Techem's activity in
sub-metering is supported by high barriers to entry, strong
innovation and leadership in Germany. However, a saturated German
market limits margin growth and deleveraging prospects, causing
management to invest in cost-efficiency initiatives and expansion
in other European countries. Nevertheless, regulatory delays in
European countries and material expenses for innovation will limit
margin expansion in the medium term, and Fitch expects to see
substantial margin improvements only in the long term.

Stable Operating Performance: Techem's operating performance for
FY20 was in line with Fitch's expectations with moderate revenue
growth in Germany and a 4% growth globally. Fitch-defined EBITDA
(EUR362 million) was broadly in line with FY19's. EBITDA margin
fell around 1% due to an increase in incurred recurrent consultancy
and related fees. Increased Fitch-calculated working capital
outflow (EUR32 million) was driven by financial year-end timing
effects on invoiced billings.

Business Model Resilient to Pandemic: The outbreak of coronavirus
has had limited effect on Techem's operations, due mainly to the
remote and smart readability of over 70% of the devices installed
in Germany, while payment delinquencies are currently stable.
Additionally, the bulk of the seasonal reading activity took place
in January 2020, before the adoption of pandemic-related
restrictions. A recent internal simulation on the financial
resilience of the broad client base in Germany showed moderate
downside protection of the business in case of further social-
distancing measures.

Conservative Outlook for Global Activiity: Installations suffered a
temporary setback during lockdown, while the backlog in arrears is
expected to be collected by end-2020. However, Fitch believes that
the adoption of further restrictive measures and complexities
arising from local legislations may impact Techem's expansion out
of Germany. Consequently, Fitch takes a conservative stance on the
Energy Services International division growth for FY21-FY22.

Slower FCF Generation: Fitch revised Techem's FCF margin
expectation to an average of around 1% for FY21-FY24, impacted by
higher taxes, adverse working capital movements and higher capex.
The higher capital intensity is viewed by management to increase
the technological quality of the business and, ultimately, its
value. In addition, Techem's corporate structure implemented since
the last leveraged buyout in 2018 has generated higher tax payments
in Germany than initially expected, which leads us to expect higher
cash taxes through the cycle. Fitch forecasts cash taxes to peak in
FY21 due to some retroactive payments, which Fitch excludes from
FFO.

Ongoing Efficiency Plan: Techem's initiated in FY19 an ambitious
programme of efficiency- and margin- improvement under the label of
'Energize T'. Programme costs totalled over EUR30 million for FY20
on consulting fees and related items. In line with previous
forecasts and due to limited visibility, Fitch assumed on average
around EUR25 million of non-recurring expenses for FY21-FY23.

Supportive Legislative Environment: The adoption of sub-metering
devices around energy and water consumption in the EU is
underpinned by the Energy Efficiency Directive. Favourable
regulations in European countries support Techem's long-term growth
prospects, notwithstanding adoption delays in certain geographies
that will impact the timing of revenue expansion. Increasing
competition threats arise from market regulations, such as the
requirement to install inter-operable devices, which may result in
additional investment requirements. Fitch believes that the
sub-metering competition regime will not be part of the political
agenda in the current German legislative period.

DERIVATION SUMMARY

Techem's IDR of 'B' reflects a utility-like business profile in the
'BBB' category, which has proved resilient against the coronavirus
pandemic, but is constrained by high gross leverage with no
deleveraging prospects in the short term. Proximity to utility
peers, such as Energia Group Limited (B+/Stable), is underpinned by
a similar benign regulatory environment and a high share of
contracted revenues. In comparison with smaller sub-metering peers
within its private rating coverage, Techem shows a stronger
business profile and cash flow generation but also higher gross
total indebtedness.

Techem is also comparable with highly leveraged business services
operators, such as Nets Topco Lux 3 Sarl (Nets, B+/ Stable) and
Nexi S.p.A. (BB-/Stable) and Hurricane Bidco Limited (Paymentsense,
B/Stable), which share a similar billing model on a wide portfolio
of customers in a favourable competitive environment. Fitch views
Nets' unique market positioning and Nexi's secular growth prospects
as stronger than Techem's. In its 'B' rated LBO portfolio,
operators, such as Moto Ventures Limited (Moto, B-/Stable), share
Techem's utility-resembling business profile with high barriers to
entry. For Moto Fitch sees marginally lower gross leverage
notwithstanding its limited FCF generation, a more aggressive
financial policy and slower deleveraging due to the impact of the
coronavirus outbreak.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include

  - Revenue growth CAGR of 2.5% for FY20-FY24

  - EBITDA margins, adjusted for non-recurring expenses, at 46% -
48% up to FY24

  - Capex on average at 22% of revenue p.a. up to FY24

  - No dividend paid, in line with stated financial policy

Key Recovery Assumptions

The recovery analysis assumes that Techem would be re-organised as
a going-concern in bankruptcy rather than liquidated, based on its
strong cash flow generation and asset-light operations. Its
installed base and contractual portfolio are key, intangible assets
of the business, which are likely to be operated post-bankruptcy by
competitors with higher cost efficiency. Fitch has assumed a 10%
administrative claim.

Fitch estimated a going-concern EBITDA of about EUR230 million,
unchanged from its previous analysis. Fitch assumes that at this
level of EBITDA, after corrective measures have been undertaken,
Techem would generate moderately positive FCF.

Fitch also assumed a distressed multiple of 7x, considering the
stable business profile of Techem and comparing it with similarly
cash-generative peers with infrastructure and utility-like business
models.

Its debt waterfall includes a fully drawn revolving credit facility
(RCF) of EUR275 million and the updated term loan B (TLB) and
senior secured notes amounts, resulting in a final recovery of
'RR3'/57%, unchanged from its previous analysis. The senior
unsecured notes have a 'RR6' rating.

RATING SENSITIVITIES

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

  - Reduction of FFO gross leverage to below 7.0x on a sustained
basis;

  - FFO interest coverage greater than 3.0x;

  - Ongoing commitment to current financial policy of zero dividend
distribution and/or debt-funded M&A activity; and

  - For a revision to Stable Outlook Fitch expects to see evidence
of momentum in deleveraging with FFO gross leverage trending
towards 8.0x or below by FY23 with a resumed FCF margin approaching
5%.

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

  - FFO gross leverage sustainably at or above 8.0x with no sign of
deleveraging;

  - FFO interest coverage below 2.5x on a sustained basis;

  - Departure from financial policy of debt reduction and zero
dividend distribution and/or debt-funded M&A activity; and

  - FCF margin declining sustainably below 5%.

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: Fitch estimates over EUR210 million of
undrawn RCF commitments, indicating a comfortable liquidity
profile, reinforced by positive FCF generation. Techem had cash on
balance of EUR232 million at end-June 2020 and no material upcoming
debt maturities.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch adjusted Techem's EBITDA for the application of IFRS16 to
determine operating lease expense

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

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


[*] GERMANY: Corporate Insolvencies May Rise by 35% by March
------------------------------------------------------------
Reuters reports that the Bundesbank said on Oct. 13 German banks
should prepare for a surge in insolvencies as the coronavirus
crisis pushes weaker companies over the edge and puts a question
mark on the country's property boom.

According to Reuters, with part of a government moratorium on
insolvencies now expired, the German central bank said corporate
insolvencies could rise by more than 35% by March to more than
6,000 per quarter, a level not seen since 2013.

"The severe economic downturn gives rise to fears that the number
of corporate insolvencies will rise significantly in the coming
quarters," the Bundesbank, as cited by Reuters, said in its annual
financial stability report, with the rise expected to be sharper in
manufacturing than in services and construction.

The impact on banks could be more contained as the worst hit
hospitality industry accounts for just under 2% of German banks'
domestic loan books, compared to 23% for real estate and
construction, Reuters states.

The coronavirus pandemic could still spell trouble for Germany's
property markets after they have boomed for years, Reuters notes.




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

L & M KEATING: High Court Confirms Appointment of Examiner
----------------------------------------------------------
Ann O'Loughlin at BreakingNews.ie reports that the High Court has
confirmed the appointment of an examiner to two companies in the
Keating group of specialist marine and general engineering
companies.

Mr. Justice Denis McDonald appointed Kieran Wallace of KPMG on Oct.
12 as examiner to L & M Keating Ltd (LMK), and Kilmihil Rental
Store Ltd (KRS), with registered offices in Kilmihil, Co Clare,
BreakingNews.ie. relates.

Noting some creditors had raised "significant" issues about conduct
of the companies, he directed the examiner to see if there was any
basis for two issues -- whether the companies traded for some
months while insolvent and whether a July 2019 loan transaction
breached the Companies Act, BreakingNews.ie. discloses.

LMK, the main trading company in the Keating group, employed 150
people up to last June but currently has 91 full time employees, of
whom 45 are temporarily laid off.

KRS supplies plant and machinery exclusively to LMK's projects and
has no direct employees.

The judge had on Oct. 3 appointed Mr. Wallace as interim examiner,
BreakingNews.ie. recounts.

In seeking protection, Kelley Smith SC, for the companies, said
they were traditionally profitable but, due to factors including
cessation of works due to the Covid 19 pandemic, they were, or are
likely to be imminently, cash flow insolvent, BreakingNews.ie.
relays.

She said other factors leading to the application included
loss-making contracts, the short term lack of new work available in
the industry and the impact of sales transactions with the
companies' founder Louis Keating, resulting in EUR5.5 million cash
having been extracted from the companies by Mr. Keating,
BreakingNews.ie. notes.

Some 600 trade creditors were owed a combined EUR9.9 million at the
end of August and significant pressure from some of those had led
to the application, BreakingNews.ie. states.

In his ruling, the judge said it was clear the companies have been
suffering for some time in relation to financial stability and are
unable to pay their debts, according to BreakingNews.ie.

The judge, as cited by BreakingNews.ie, said the report of the
independent expert in this case was, unlike most such reports,
"very detailed" and formed a proper basis for the court to conclude
both companies had a reasonable prospect of survival subject to
factors outlined.  He said those factors met the statutory criteria
for examinership but some creditors had raised significant issues
which the court could not, in the absence of evidence, address at
this stage, BreakingNews.ie. relates.




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

CURIUM BIDCO: Fitch Puts 'BB-' LongTerm IDR on Watch Negative
-------------------------------------------------------------
Fitch Ratings has placed Curium Bidco S.a.r.l.'s 'B+' Long-Term
Issuer Default Rating and 'BB-'/'RR3' senior secured instrument
rating on Rating Watch Negative (RWN).

The rating action follows the announcement of the intended sale of
Curium, via a secondary market transaction primarily between
CapVest's private equity Funds III and IV. The transaction will be
financed with a tap issue under the existing EUR740 million senior
secured loans to a total of EUR960 million equivalent.
Additionally, a second-lien issuance of EUR275 million equivalent
and PIK notes of EUR215 million, the latter being issued by Curium
Midco S.a.r.l. outside the restricted group, will also be issued to
fund the transaction.

Fitch has also assigned to Curium's planned EUR275 million
second-lien loans a 'CCC+(EXP)'/'RR6' rating. Following completion
of the transaction, Fitch expects to downgrade the existing senior
secured debt rating by one notch to 'B+'/'RR3 ', applying the same
rating to the enlarged senior secured facilities of EUR960
million.

The RWN reflects the incremental debt raised not being deployed to
enhance the business and correspondingly, EBITDA. Post-transaction
Fitch estimates Curium's funds from operations (FFO) gross leverage
to rise to 9.2x at FYE20 (December year-end) from 5.3x at FYE19.
Despite a strong deleveraging capacity, the incremental debt would
leave Curium's leverage above 6.0x, over the downgrade trigger of
5.5x at the 'B+' rating over the rating horizon. This would lead to
a downgrade of Curium's IDR by an expected one notch to 'B'.

The IDR will remain underpinned by expectation of steady underlying
operations with sustainably positive organic revenue growth
underpinning the launch of new product lines and acquired
revenues.

The resolution of the RWN and the final ratings are contingent upon
the completion of the proposed transaction and the receipt of final
documentation and structure conforming to information already
received.

KEY RATING DRIVERS

Deleveraging Capacity Remains Strong: Following the planned
transaction, Fitch expects FFO gross leverage to rise above 9.0x,
but organically reducing by 2.0x-2.5x by 2023, given an envisaged
return to uninterrupted testing volumes and subsequent margin
improvement exploiting Curium's operational leverage. Nevertheless,
Fitch expects leverage to remain at high sustained levels of 6.5x,
reducing interest coverage and the generation of free cash flow
(FCF) to levels more commensurate with a 'B' financial profile. The
reduced financial flexibility due to increased leverage will be the
key rating constraint, leading to a lower IDR.

Strong Position in Niche Market: Curium's solid market leadership
in the nuclear medicine industry means no other competitor can
service Curium's geographical footprint or product range. The
company's vertical integration allows it to have control from the
sourcing of radioactive substances to the distribution of products
to end users underpinning a robust business model. Environmental
provisions related to the decommissioning of production sites
totaled EUR89.4 million at FYE19. Cash outlay will occur when sites
are decommissioned, although this is not expected to occur within
the next 25 years.

Manageable Pandemic Impact: Fitch expects top-line growth to remain
flat for 2020, reflecting some demand disruption from hospitals
allocating resources towards treating COVID-19 patients, away from
nuclear imagining scans in 2Q20. However, Fitch expects the
recovery that began in 3Q20 to continue into 2021, with a return to
normal testing volumes and new product launches allowing Curium to
exceed pre-pandemic EBITDA and margins in 2021.

However, while the pandemic continues, there is a risk that volumes
and profit margins could be lower than expected by Fitch in the
autumn and winter months, especially in the event of renewed or
more generalised lockdowns, with hospitals becoming overwhelmed
again and delaying the recovery trajectory to 2021. A much longer
or protracted pace of recovery could put further negative pressure
on the ratings, if profits stagnation is not compensated by
material cash preservation actions, resulting in lack of visibility
of deleveraging.

Moderate Execution Risks: Aside from any pandemic-related near-term
performance volatility, Fitch believes that Curium will continue
its acquisitive strategy, as this is central to the sponsors' value
creation strategy. Its view of moderate execution risks reflects
the broad scope (and scale) of possible acquisitions and subsequent
integration, of which there is a limited track record. Being
vertically integrated offers a variety of opportunities for further
consolidation, which creates some uncertainty about how the
business model will evolve.

Limited Product Diversification: The rating is also heavily
influenced by rather weak product diversification and scale
relative to rated peers. Despite being a dominant player in a niche
industry, any positive rating trajectory is unlikely as there is
limited scope for growth beyond a nuclear medicine specialty. A
meaningful increase in Curium's scale would most likely be achieved
via debt-funded M&A, which in turn would probably further change
the company's leverage profile, in addition to the incremental
leverage contemplated in the sales process.

Industry with High Barriers to Entry: The nuclear medicine industry
exhibits very high barriers to entry as strict regulatory approvals
are required from both nuclear and medical agencies, as well as
clearance at various customs for transportation. Fitch believes the
creation of Curium's consolidated key markets (the US and the EU),
further entrenching the position of existing players, as entry into
the niche industry would require a significant up-front capital
investment. This remains an important consideration supporting its
assessment of Curium's robust business model.

DERIVATION SUMMARY

Fitch applies its rating navigator framework for producers of
medical products and devices in assessing Curium's rating, also
against peers. Larger medical devices focused peers such as Boston
Scientific Corporation (BBB/Stable) and Fresenius SE & Co. KGaA
(BBB-/Stable) do not necessarily relate to Curium's line of
business. Nevertheless, both issuers clearly illustrate the
benefits of size upon ratings (revenue of more than EUR10 billion)
and diversified product offering, which in the case of Fresenius
offsets about 4.5x FFO adjusted leverage for an investment grade
rating.

Unlike specialist generic pharmaceutical producers such as Stada
Arzneimittel AG (Nidda BondCo GmbH; B/Stable), Curium's business
risk profile benefits from operating in protected niche markets,
albeit with lower scale and diversification. However, this is
currently compensated by Curium's lower financial leverage, which
supports the higher rating.

Upon completion of the transaction Fitch expects Curium's rating to
converge with the ratings of European lab testing companies, such
as Synlab, which operate with slightly higher levels of leverage
(8.0x) due to its continuing "buy and build" strategy, similar to
CAB Societe d'excercice liberal par actions simplifiee's (CAB;
B/Negative). However, both lab testing groups will continue to have
notably larger operations than Curium.

KEY ASSUMPTIONS

  - Revenue growth to EUR770 million by 2023 (7.8% 2020-23 CAGR)
driven by organic growth and bolt-on M&A

  - EBITDA margins trending towards 30% by 2023

  - Modest working capital outflows of EUR4 million-EUR6 million
per year

  - Capex intensity at around 10% of sales, supporting new product
launches

  - Bolt-on M&A of EUR50 million per year

  - No dividends distributions

KEY RECOVERY ASSUMPTIONS

Curium would be considered a going concern in bankruptcy and would
be reorganised rather than liquidated;

Curium's post-reorganisation, going-concern EBITDA reflects Fitch's
view of a sustainable EBITDA that is 33% below 2019's Fitch-defined
EBITDA of EUR164 million. In such a scenario, the stress on EBITDA
would most likely result from severe operational or/and regulatory
issues;

A distressed EV/EBITDA multiple of 6.0x has been applied to
calculate a going-concern enterprise value; this multiple reflects
the group's strong infrastructure capabilities, leading market
positions and FCF capabilities;

Based on the payment waterfall the existing revolving credit
facility (RCF) of EUR120 million ranks pari passu with the senior
secured term loans. After deducting 10% for administrative claims,
its waterfall analysis therefore generates a ranked recovery for
the senior secured loans in the 'RR3' band, indicating a 'BB-'
instrument rating, one notch above the IDR. The waterfall analysis
output percentage on current metrics and assumptions was 65%.

Under the planned transaction, the enlarged RCF and senior secured
term loans would reduce the recovery percentage for the senior
secured rating from 65%, but likely remain around 55% and therefore
within the 'RR3' band maintaining the one notch uplift to 'B+' from
the IDR (which Fitch expects to stabilise at 'B'). The recovery
ratings for the planned second-lien loans would be assigned at
'RR6' with 0% recoveries, driving the 'CCC+(EXP)' rating, two
notches below the IDR envisaged post-transaction.

RATING SENSITIVITIES

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

  - Evidence of envisaged sale transaction not proceeding as
planned reflecting in FFO gross leverage remaining below 5.5x on a
sustained basis;

  - Steady operational performance or contract wins leading to a
stable to mildly rising revenues and EBITDA margin trending towards
30%;

  - FCF margin above 5% on a sustained basis.

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

  - FFO gross leverage above 6x on a sustained basis;

  - Operational challenges or loss of contracts that would lead to
a stable decline in revenues eroding the EBITDA margin below 27% by
2021;

  - Loss of regulatory approval relating to the handling/processing
of nuclear substances and/or key products in core markets (the US
and the EU);

  - FCF margin below 5% on a sustained basis.

LIQUIDITY AND DEBT STRUCTURE

Satisfactory Liquidity post-Transaction: Pro-forma to the proposed
transaction, Curium will have access to an enlarged EUR200 million
(currently EUR120 million) RCF, supporting cash on balance sheet of
around EUR60 million. Fitch projects cash balances to remain
roughly stable, as excess FCF is used towards new product launches
and selective M&A.

Higher debt burden means higher interest costs, overall diminishing
the group's financial flexibility, even though Fitch expects FCF
will remain positive in the low-to-mid single digits (% of sales).
Factoring facilities of EUR55 million are available to the company
to manage the group's working capital needs, of which EUR30 million
is drawn, as of June 2020. New TLB maturities are long-dated,
pushing major debt maturities to 2027-2028.

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

Curium has an ESG Relevance Score of 3 for Waste & Hazardous
Materials Management; Ecological impacts due to the production and
transportation of radioactive materials central to its operations.
The successful management of handling hazardous materials and
corresponding ecological impacts means that there is no influence
on Curium's rating at the current levels. Production of radioactive
material leads to contamination of the production sites, so Curium
is obliged to fully decommission and decontaminate such sites when
no longer used. Nevertheless, per the company's disclosure under
its IAS 37 requirements, no decommissioning will start taking place
until 2048 at earliest, with environmental accounting provisions
and bank guarantees in place.

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

CURIUM MIDCO: S&P Alters Outlook to Negative & Affirms 'B' ICR
--------------------------------------------------------------
S&P Global Ratings revised its outlook on nuclear medical imaging
group Curium Midco S.a.r.l. to negative from stable and affirmed
its 'B' rating.

S&P said, "We are assigning a 'B' issue rating and '3'(60%)
recovery rating to the existent EUR750 million senior secured term
loan B (TLB) and to the new first-lien TLB of EUR220 million (US$
denominated). We are also assigning a 'CCC+' issue rating and
'6'(0%) recovery rating to the new subordinated second-lien TLB of
EUR275 million (US$ denominated).

"The negative outlook reflects the possibility that we could lower
the rating on Curium Midco over the next 12-18 months, if we see
any deviation from the business plan that would hinder cash flow
generation and delay deleveraging to about 8.5x-9x by 2021 and to
7x by 2022.

"We revised the outlook to negative because the secondary LBO will
increase leverage, leaving limited headroom for operating
underperformance with the rating level.   The proposed secondary
LBO through the fund-to-fund transfer within CapVest will result in
higher debt, increasing S&P Global Ratings-adjusted leverage above
10x. Curium will only gradual deleverage, potentially to 8.5x-9x in
2021 and to about 7x by 2022." S&P estimates S&P Global
Ratings-adjusted debt for 2020 will amount to EUR1.6 billion,
including:

-- The proposed EUR495 million (US$ denominated) of new term
    loans;

-- EUR215 million of payment-in-kind debt;

-- EUR39 million of trade receivables sold related to factoring;

-- EUR48 million of lease liabilities;

-- EUR67 million of asset retirement obligations; and

-- About EUR70 million of debt guarantees and contingent
    considerations.

The convertible preferred equity certificate of about EUR90
million-EUR100 million held at the level of GLO HoldCo SCA will be
repaid as part of the transaction.

Deleveraging will hinge on seamless execution and delivery of
management's growth plan.   S&P said, "We anticipate a fast
recovery, with sales picking up to pre-pandemic levels in 2021,
given the recovery trend we've seen in the months since the
lockdown was lifted. However, we foresee successful deleveraging
only if the company is able to deliver its growth plan and launch
products and increase sales volumes. We also consider the company's
operating performance dependent on management's ability to cut
expenses, especially if it does not meet growth projections that
can protect margins. We expect S&P Global Ratings-adjusted EBITDA
generation of EUR190 million-EUR200 million in 2021 and
EUR240-EUR250 million in 2022."

Curium's relatively resilient performance during the COVID-19
pandemic, solid business fundamentals, and generation of positive
free operating cash flow (FOCF) still support the current rating.  
With hospitals diverting capacity for COVID-19 treatment and
patients postponing elective procedures, Curium's sales suffered
and topline growth decreased in April-June in most of its key
markets. Despite having high fixed costs (personnel costs alone
represent 35% of total expense), the company managed to cut part of
its discretionary spending and offset this dip in sales. S&P also
notes the fast recovery trend in the months since the lockdown was
lifted and we anticipate sales will pick up relatively quickly to
levels comparable with those of last year. This is mostly thanks to
the essential nature of positron-emission tomography (PET) and
single-photon emission computerized tomography (SPECT) scans to
diagnose and monitor the brain and heart and to detect cancer.

Curium's supplier contingency plans have been key in guaranteeing
demand and weathering potential supply chain challenges.  This is
especially applicable because supply reliability is a key
differentiating factor in nuclear medical imaging, given that SPECT
and PET radioisotopes have short half-lives. During the pandemic,
Curium had all of its PET and SPECT plants running and functional.
The group benefitted from supply redundancies with three reactors
that could supplement each other and two molybdenum processing
lines (Mo-99, Curium's principal raw material) backing each other.
S&P also notes that Curium was able to meet customer demand amid
the halt in air traffic by creating over 100 new logistics routes
and assuring the shipment of Mo-99.

S&P said, "The negative outlook reflects the possibility that we
could lower the rating on Curium over the next 12-18 months. This
is because the new capital structure leaves limited headroom for
any greater operational underperformance or investments than in our
base case that would cause a deviation or delay in deleveraging.

"Our base-case projections imply that growth will be driven by new
diagnostic products and past project investments being completed.
Although leverage will continue to remain high in 2020, we
anticipate the company will deleverage toward 8.5x-9x in 2021 and
to 7x thereafter, supported by positive FOCF. This is conditional
on Curium's smooth business plan execution, for which we view some
risks amid the COVID-19 pandemic that could cause further product
delays, lower demand, or supply chain disruptions.

"We could consider a downgrade if over the next 12-18 months the
company fails to make progress toward reducing our adjusted
leverage to 8.5x-9.0x by 2021 and to 7x by 2022. The most likely
cause in our opinion would be if:

The company fails to deliver revenue of about EUR680 million in
2021 and about EUR770 million in 2022, with S&P Global
Ratings-adjusted EBITDA margins of at least 28% in the same period
because of further delays in product launches and failure to
successfully commercialize these, as well as potentially lower
demand caused by COVID-19 or supply disruptions.

-- Its ability to generate positive FOCF of about EUR40 million
    in 2021 and above EUR80 million in 2022 is unlikely; or

-- The group attempted further material debt-funded acquisitions
    that would delay deleveraging to below 7x in 2022.

S&P could revise the outlook to stable if:

-- Curium manages to deliver its growth plan for the group's end
    markets while lowering the cost base through volume increases
    and significantly overperforming our base-case expectations.

-- S&P sees the group delivering on its growth plan such that
    the adjusted debt to EBITDA is below 7x with EBITDA of at
    least EUR250 million and no further debt-funded acquisitions.

-- FOCF generation is around EUR50 million.


MAXEDA DIY: S&P Hikes Issuer Credit Rating to 'B-' on Refinancing
-----------------------------------------------------------------
S&P Global Ratings raised its long-term rating on Benelux-based
Maxeda DIY Group B.V. to 'B-' from 'CCC+', and removed it from
CreditWatch positive. The outlook is positive.

S&P said, "We are assigning our 'B-' issue rating to the EUR420
senior secured notes and our 'B+' issue rating to the RCF, both due
2026.

"We are subsequently withdrawing all ratings at Maxeda's request.

"We have withdrawn our 'B-' issuer credit rating on Maxeda, as well
as our 'B-' and 'B+' issue ratings on the group's EUR420 senior
secured notes and EUR65 million super senior secured revolving
credit facility (RCF), respectively.

"We had upgraded Maxeda to 'B-', reflecting the group's completed
refinancing. At the same time, we removed the rating from
CreditWatch with positive implications, where we had placed them on
Sept. 14, 2020." At the time of the withdrawal, the outlook was
positive, indicating the potential for an upgrade considering
Maxeda's improved credit metrics and cash generation, should demand
for home improvement withstand a potential larger weakening in
consumer confidence induced by the current recession.

Maxeda's recent refinancing resolved the short-term refinancing
risk and supports the group's debt management.  The completed
transaction comprised EUR420 million of senior secured notes and a
EUR65 million super senior RCF. This has effectively removed
Maxeda's exposure to short-term refinancing risk and extended the
weighted-average maturity of the capital structure to about five
years. In addition, the refinancing transaction enabled the group
to use EUR55 million of cash on the balance sheet to bring down the
total gross debt, which strengthens the group's credit metrics, as
adjusted by S&P Global Ratings. S&P estimated that, on the back of
this transaction, Maxeda's reported financial debt (excluding
finance leases) will fall to EUR420 million from EUR475 million at
Jan. 31, 2020 (end of fiscal 2019).

Maxeda has performed robustly during the pandemic.  The social
distancing measures introduced to combat the spread of COVID-19
have ushered in a surge of home improvement projects. All of
Maxeda's stores in the Netherlands remained open throughout the
lockdown, and its stores in Belgium were closed for just one month.
As a result, the group capitalized on higher demand for home
improvement and DIY products, reporting strong growth over the
first half of the year. Year-to-date revenue growth as of July 2020
was 12%, significantly stronger than our previous expectations of a
10%-15% decline. Furthermore, the group's gross margins
strengthened as the group lowered discounts to capitalize on the
higher demand. It has also maintained strong operating cost
discipline, especially regarding marketing expense and labor costs,
although these were slightly offset by investments in
COVID-19-related safety and security measures at the stores. S&P
said, "We observed solid EBITDA margin expansion in year-to-date
July 2020, with EBITDA margins increasing by 3-4 percentage points
compared with the same period last year. We believe DIY's
popularity will continue for at least another quarter since people
are remaining indoors. We forecast revenue growth of 6.5%-7.5% and
adjusted EBITDA margins of about 13.5%-14.5% for fiscal 2020, up
from 12.4% in fiscal 2019."

S&P said, "We expect Maxeda to report like-for-like revenue decline
once demand normalizes in 2021, followed by growth of about 2%-3%.
This year has been exceptionally strong, with a revenue base
remaining higher than in 2019. But consumers will likely reduce
their discretionary spending given the volatile macroeconomic
environment and the mounting uncertainty around the severity and
duration of the pandemic. That said, the pandemic might lead to
structurally increased demand for the DIY segment, since we
anticipate that the number of people working from home is likely to
rise, bolstering demand for equipment and furniture. We assume
Maxeda will see a decline in profitability in fiscal 2022 against
fiscal 2021 levels, but that its absolute EBITDA will be higher
than pre-pandemic levels. A more discount-led market should
constrain margins, but be partly offset by fewer one-offs than in
previous years, supporting adjusted EBITDA and free cash flow, as
per our base-case assumptions at the time of the withdrawal. We
recognize that the group's now completed heavy restructuring
programs should yield gradually increasing profitability and lower
exceptional costs compared with historical levels.

"Uncertainties regarding the pandemic are clouding earnings
visibility.   We note that Maxeda was among the few retailers to
report positive growth during the lockdown period, largely because
DIY stores were seen as essential and therefore remained opened or
closed only temporarily. Therefore, in a scenario of further
restrictions, the effect on Maxeda could be more positive than on
retail peers. Still, the economic implications and, in particular,
durably higher unemployment rates and lower purchasing power are
likely to weigh on Maxeda's business environment. Furthermore, even
if demand for the DIY segment rises, we do not expect spikes in
demand comparable with the one we have witnessed over the past six
months.

"We acknowledge 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 past, 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. We are using this assumption in assessing the economic and
credit implications associated with the pandemic.

"At the time of withdrawal, the outlook was positive.  This
reflected our view of Maxeda's solid credit metrics and strong cash
generation thanks to the boost in sales on the back of an uptick in
home improvement. We also considered the company's more prudently
planned investments and restructuring compared to last years, such
that debt to EBITDA would likely remain at 5.0x-6.0x, with EBITDAR
to cash interest cover at 1.5x-1.8x and reported FOCF after all
lease related payments between EUR20 million and EUR40 million over
the next 12 months."

The issue and recovery ratings reflect the issuer credit rating on
the company and the relative ranking of the instruments.   S&P
said, "Prior to the withdrawal, the EUR420 million senior secured
fixed rate notes maturing in 2026, had an issue rating of 'B-' and
a recovery rating of '3'. We anticipated meaningful recovery
prospects (50%) in the event of a default. The recovery rating is
limited by the prior-ranking RCF and the large amount of
second-lien debt. We rated the group's new EUR65 million super
senior RCF, maturing in 2026, 'B+' with a recovery rating of '1'.
This reflected our expectations of very high recovery (95%) in a
default scenario. The super senior ranking of the RCF support the
recovery rating; the weak security package, mainly comprising share
pledges, constrain the recovery rating. Under our hypothetical
default scenario, we envisaged a default in 2022 because of a
decline in discretionary consumer spending in Maxeda's key markets
following deteriorated macroeconomic conditions, intensifying
competition pressuring margins, and weakening demand in the housing
market."




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

ARES EUROPEAN XI: Fitch Affirms Class F Notes at 'B-sf'
-------------------------------------------------------
Fitch Ratings has affirmed Ares European CLO XI B.V.'s ratings. The
ratings of the class E and F notes have been removed from Rating
Watch Negative (RWN) and have been assigned a Negative Outlook. All
other Outlooks are Stable.

RATING ACTIONS

Ares European CLO XI B.V.

Class A-1 XS1958264803: LT AAAsf Affirmed; previously at AAAsf

Class A-2 XS1958265446: LT AAAsf Affirmed; previously at AAAsf

Class B-1 XS1958266337: LT AAsf Affirmed; previously at AAsf

Class B-2 XS1958266683: LT AAsf Affirmed; previously at AAsf

Class C XS1958267061: LT Asf Affirmed; previously at Asf

Class D XS1958267574: LT BBB-sf Affirmed; previously at BBB-sf

Class E XS1958267905: LT BB-sf Affirmed; previously at BB-sf

Class F XS1958269273: LT B-sf Affirmed; previously at B-sf

Class X XS1958264639: LT AAAsf Affirmed; previously at AAAsf

TRANSACTION SUMMARY

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

KEY RATING DRIVERS

Coronavirus Baseline Scenario Impact

Fitch carried out a sensitivity analysis on the portfolio to
envisage the coronavirus baseline scenario. Fitch notched down the
ratings for all assets with corporate issuers on Negative Outlook,
regardless of sector. This scenario shows resilience of the current
ratings of class X and A to D notes with cushions. This supports
the affirmation with a Stable Outlook for these tranches.

Class E and F notes pass the current portfolio analysis with a
cushion, yet show shortfalls in the coronavirus sensitivity
analysis. The removal of RWN on both notes reflects its view that
the portfolios' negative rating migration is likely to slow and
category-level downgrade is less likely in the short term. The
Negative Outlook assigned to both reflects the risk of credit
deterioration over the longer term, due to the economic fallout
from the pandemic.

Portfolio Performance

Per Fitch's calculation, the portfolio WARF is 34.8, and would
increase by around 3.9 points in the coronavirus sensitivity
analysis for the respective transactions. Assets with a
Fitch-derived rating (FDR) on Negative Outlook make up 34% of the
portfolio balance. Assets with an FDR at the 'CCC' category or
below make up 5% of the portfolio, and there are no unrated assets
in the portfolio. The transaction is slightly above par and has no
reported defaults as of September. However, one asset with a
notional balance of EUR6.5 million became a defaulted obligation as
of October 1, 2020. All tests, including the coverage tests, are
passing, except the Fitch WARF test and the maximum covenant-light
loan limit.

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

Fitch calculated that the Fitch WARF of the current portfolio is
34.8.

Recovery Expectations:

Almost 100% of the portfolios comprise senior secured obligations.
Fitch views the recovery prospects for these assets as more
favourable than for second-lien, unsecured and mezzanine assets.
The Fitch weighted average recovery rate of the current portfolio
is 63.5%.

Portfolio Composition

The portfolio is fairly diversified, with the exposure to the top
10 obligors and to the largest obligor at 17% and 1.9%,
respectively. The top three-industry exposure is at about 31%.
Semi-annual paying obligations represent 43% of the portfolio
balance. However, no frequency event occurs due to the high
interest coverage ratios.

Cash Flow Analysis

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

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

RATING SENSITIVITIES

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

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

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

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

Downgrades may occur if the build-up of the notes' CE following
amortisation does not compensate for a higher loss expectation than
initially assumed by Fitch due to unexpectedly high levels of
default and portfolio deterioration. As the disruptions to supply
and demand due to the coronavirus pandemic-related disruption
become apparent for other sectors, loan ratings in those sectors
will also come under pressure. Fitch will update the sensitivity
scenarios in line with the view of Fitch's Leveraged Finance team.

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




===========
N O R W A Y
===========

ADEVINTA ASA: Fitch Assigns BB(EXP) LT IDR, Outlook Stable
----------------------------------------------------------
Fitch Ratings has assigned Adevinta ASA a first-time Long-Term
Issuer Default Rating (IDR) of 'BB(EXP)' with a Stable Outlook.
Fitch has also assigned a 'BB+(EXP)' instrument rating to the
company's proposed secured debt facilities. Final ratings would
depend on the successful completion of the announced acquisition of
eBay's Classified Group (eBayC), Adevinta's shareholder Schibsted
ASA completing the acquisition of eBayC's Danish operations and
Fitch obtaining final documents conforming to information already
received. If the Danish assets are not sold, Adevinta's ratings are
likely to be a notch lower.

Following its acquisition of eBayC, Adevinta will become one of the
largest and most diversified global online classified groups, with
a significant market segment and geographic diversification. It
will derive most of its revenues from western Europe. The company
holds number one or two positions in its key markets in terms of
traffic or revenues, which leads to sustainably robust EBITDA
margins of above 30% and strong free cash flow (FCF) generation and
which will allow for rapid deleveraging from the high 8.1x proforma
funds from operations (FFO) net leverage that Fitch expects at
end-2020. Fitch excludes yet-to-be-realised synergies from its
leverage metric calculation.

KEY RATING DRIVERS

Leading Market Positions: Adevinta holds number one or two
positions by traffic or ad listings in most of its large markets,
which Fitch views as a key factor in sustaining profitable
operations. Leading classified operators benefit from a virtuous
cycle of a large number of visitors attracting more advertisers and
sellers that generate high volumes of classified ad inventory -
which in turn stimulates visitor interest. This phenomenon makes it
significantly more complicated for new competitors to enter the
market even if they are offering much lower pricing. - or even free
services

Most classified horizontal and vertical markets are dominated by
one or two players that have a coveted 'must see' status and can
obtain disproportionately large shares of revenues and sustain
significant pricing premiums compared to smaller competitors.

Strong Organic Growth: Fitch expects Adevinta to maintain strong
organic revenue growth, in the high single digit to mid-teen yoy
percentage range. It will be driven by the wider adoption of online
classifieds and by additional opportunities from transactional
services and cross-synergies between the company's horizontal and
vertical segments.

Leading online classified platforms have experienced strong growth
over the past five years, supported by customer interest migrating
to online, and this trend will probably continue over at least the
next three years. CAGR revenue growth in 2017-2019 was 15% for
Adevinta and 10% for eBayC.

Adevinta is exploring options to increase the span of its
transactional services whereby an online classifieds platform takes
a more active role in transaction security, goods/service
logistics, delivery and payments. The strong brand awareness of its
horizontal sites in a few key markets, such as Germany and Benelux,
provides an opportunity to develop its vertical propositions such
as in the auto, real estate and jobs segments.

Diversified Operations: Adevinta's business portfolio is well
diversified between geographies, vertical and horizontal markets,
and advertising versus non-advertising revenues. Diversification is
a mitigating factor in a downturn. Pro-forma for the eBayC
transaction, the share of advertising revenues was 28% in 2019,
with cars, real estate and horizontal classifieds contributing 40%,
15% and 11%, respectively.

Horizontal markets are typically less cyclical than vertical
markets, with the advertising and jobs segments being the most
vulnerable to the cycle. In the long term, greater consumer
awareness of environmental issues will probably lead to a wider
adoption of purchasing second-hand items, which would support
Adevinta's business model. In times of financial need, the
company's large portfolio of brands and sites provides substantial
divestment opportunities without compromising its overall
strategy.

Integration Synergies: Adevinta expects an acquisition of eBayC to
generate substantial operating and cost synergies - revenue
synergies are less obvious, in its view. Synergies may come from
sharing best practices and common IT solutions, having less
operating and administrative duplication, and from Adevinta's
larger scale, which has a positive impact on procurement costs,
including on cloud services.

Marketing Cost Reduction Flexibility: Fitch views Adevinta as
having substantial flexibility to quickly and significantly reduce
its marketing cost in a downturn with a mitigating impact on
financial performance. Marketing accounted for a sizeable 20% of
Adevinta's total operating costs in 2019.

Pandemic Impact Short-Lived: Fitch expects the negative impact of
the pandemic to be short-lived, with visitor traffic and leads
quickly recovering. Some markets, such as France, had already
resumed organic growth by the end of 2Q20. Economic activity was
initially curtailed during the pandemic, although lockdown
restrictions stimulated more online activity. Macroeconomic
pressures and a second wave of pandemic-related government lockdown
restrictions could be more severe and prolonged than Fitch had
initially anticipated, and may have a lingering impact on the pace
of Adevinta's financial recovery.

Strong Cash Flow Generation: Adevinta's credit profile is supported
by its strong FCF generation, with a pre-dividend FCF margin in the
low-to-mid teen percentage range. Fitch believes the company can
sustainably generate strong Fitch-defined EBITDA margins of above
30% under an asset-light business model with low capex requirements
of less than 5% of revenues.

Capex is likely to be supplemented with bolt-on acquisitions that
may be equal to or surpass capex spend. Even taking this into
account Fitch estimates Adevinta's cash flow generating capacity to
be high. Bolt-on acquisitions are likely to maintain or achieve
market-leading positions and to expand Adevinta's expertise,
including in IT, and enable new services, such as
transaction-related services.

High Leverage, Rapid Deleveraging: Fitch expects Adevinta to
rapidly delever from its Fitch-estimated peak FFO net leverage of
8.1x pro-forma for the merger with eBayC at end-2020. Assuming no
or minimal dividends until the company's leverage drops to within
its targeted range of 1x-4x net debt/EBITDA (company definition),
Fitch projects Adevinta's FFO net leverage to improve to 5.5x at
end-2021 and potentially to 4.3x in 2022.

The 2020 increase in leverage is driven by the eBayC acquisition
and a slump in EBITDA/FFO generation following the coronavirus
pandemic, with heavy discounts or deferred payment terms offered to
professional customers, such as agents and dealers. Deleveraging is
supported by continuing organic revenue and EBITDA/FFO growth and
by net debt reduction from the company's strong free cash flow.
Fitch expects Adevinta to adhere to a prudent shareholder
distribution policy that would not jeopardise its deleveraging
progress. Moderate bolt-on acquisitions can be accommodated within
the current rating level, while any large deals would be treated as
an event risk.

DERIVATION SUMMARY

Adevinta is a leading global classified ads company generating more
classified revenues than its similarly large peer Traviata B.V.
(B/Stable). The latter's key operating asset is AxelSpringer SE,
although AxelSpringer is larger due to its significant media
business. Adevinta also generates more classified revenues than
Prosus Classifieds (unrated) and 5x more classified revenues than
SPEEDSTER BIDCO GMBH (AutoScout 24; 'B'/Stable). Adevinta's leading
market positions in its vertical markets, and its geographic and
business diversification are comparable to AxelSpringer's
classifieds segment and are ahead of AutoScout24 as the latter is
focused on the motor segment and is only number two player in its
most important German market.

Unlike Prosus, and similarly to AxelSpringer and AutoScout24,
Adevinta generates most of its revenues in western Europe, with
limited exposure to emerging markets. On par with most of its
peers, Adevinta is strongly cash-generative with capex of below 5%
of revenue (similar to AutoScout24) and EBITDA margins of above
30%, which is behind that of AutoScout24 and AxelSpringer (the
latter on classifieds revenues).

Adevinta's FFO net leverage of 8.1x expected at end-2020 is high
and is comparable to AutoScout24. However, with a public leverage
target of below 4x net debt/EBITDA (company definition), Adevinta
may be more committed to deleveraging than some of its privately
owned peers.

KEY ASSUMPTIONS

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

  - High single-digit yoy revenue decline in 2020 (pro-forma for
the eBayC merger) with the impact of the pandemic strongest in 2Q20
and a gradual recovery in 3Q20-4Q20.

  - Growth will resume in 2021, with absolute 2021 revenues
slightly above 2019 levels and EBITDA slightly below 2020 levels.

  - Gradual EBITDA margin improvement in 2020-2023, with this
metric exceeding the 2019 level from 2022.

  - Minimal cash outflows from working capital, below EUR10 million
a year.

  - Cash capex of below 4% of revenues.

  - Bolt-on M&A spend of around EUR50 million a year.

  - No dividends until leverage declines to below 4x net
debt/EBITDA (company definition).

RATING SENSITIVITIES

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

  - FFO net leverage below 4x on a sustained basis with strong
progress on integrating operations of Adevinta and eBayC, with the
maintenance of the enlarged group's strong market position.

  - Pre-dividend FCF margin sustained in the mid-to-high-teen range
on the back of EBITDA margin improvements and low capex
requirements.

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

  - Slow progress with reducing FFO net leverage to below 5x within
18-24 months from the eBayC transaction closure.

  - Market share pressures and a loss of number one or two status
in key markets.

  - Lack of progress on integrating operations of Adevinta and
eBayC, with insignificant post-merger synergies realised.

ESG CONSIDERATIONS

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

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: Following the acquisition of eBayC, Adevinta
has access to a five-year EUR450 million RCF, which comfortably
covers its operating liquidity needs and is likely to be sufficient
to support its bolt-on acquisitions. Fitch projects Adevinta to
generate strong FCF, which would also be an important liquidity
source. The company's debt instruments after the eBayC acquisition
are expected to have maturities of between five and seven years,
which would protect it from short-to-medium term refinancing
risks.


ADEVINTA ASA: S&P Assigns Preliminary 'BB-' LT ICR, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'BB-' long-term issuer
credit rating to Norway-based classifieds operator Adevinta ASA,
and its preliminary 'BB-' issue rating to the proposed term loans
and revolving credit facility (RCF).

The strategic acquisition of eCG will turn Adevinta  into a leading
online classifieds operator, and improve its geographic footprint
and segment mix.

The acquisition will make Adevinta the largest pure-play online
classifieds group globally, with revenue of more than EUR1.6
billion (pro forma 2019). The scale of the combined business will
compare favorably with that of industry peers', such as the Axel
Springer's classifieds division or Prosus Classifieds, which
generated 2019 revenue of EUR1.2 billion and EUR1.1 billion,
respectively. The improved geographic diversification of Adevinta's
operations should also support its earnings stability, in our view.
eCG's acquisition will improve the group's revenue mix, making it
more balanced and less concentrated, in our view. France's exposure
will decline to 22% from 53% (all pro forma 2019 revenue), and the
largest single country exposure will not exceed 27% (Germany).

The preliminary rating on Adevinta reflects the elevated leverage
post acquisition, with expected deleveraging below 4.5x (pro forma
the full consolidation of eCG) in 2021 and to 3.5x-4.0x in 2022.
S&P said, "We view the acquisition of eCG as transformative for
Adevinta, leading to a significant increase in its S&P Global
Ratings-adjusted leverage to 4.5x (pro forma the full consolidation
of eCG), or 5.5x-6.0x when taking into account nine months of eCG's
contribution to Adevinta's results in 2021, from about 1.6x in
first-half 2020. Also, on a stand-alone basis (before eCG), we
estimate that Adevinta's S&P Global Ratings-adjusted leverage will
increase already in 2020 above 4.0x from 1.5x in 2019, due to a
debt-funded acquisition in Brazil via its joint venture OLX
Brazil."

Adevinta will fund a part of the EUR7.8 billion acquisition
(excluding the price for the Danish classifieds business of eCG)
with its own shares (540 million of shares) and about EUR2.386
billion of debt, which it intends to raise to pay the cash part of
the acquisition and to refinance the existing debt. The new debt
will include term loans of about EUR1.326 billion (denominated in
euro and U.S. dollar), other senior secured debt of EUR1.06
billion, and a new EUR450 million RCF, which will all rank pari
passu. This transaction includes the acquisition of Danish
classifieds business from eBay that Adevinta will sell subsequently
to its main shareholder, Schibsted ASA, at the closing of the eCG
deal. Given this, S&P excludes the acquisition price and funding
related to the Danish assets (about EUR290 million) from our
calculations and from our preliminary rating assignment. If at
finalization of the transaction, the circumstances around the
Danish assets have changed, we may reevaluate the rating on
Adevinta accordingly. EUR2.386 billion of new debt reflects total
new borrowings, excluding the debt related to the Danish
classifieds operations. S&P expects Adevinta will deleverage to an
S&P Global Ratings-adjusted ratio of 3.5x-4.0x by 2022 via
increases in EBITDA from by top-line growth and gradual improvement
in the group's monetization of its less mature online classifieds
platforms, as well as synergies from the integration.

S&P said, "The preliminary rating is based on our expectation that
Adevinta will focus on deleveraging, while adhering to a moderate
financial policy.  We expect that Adevinta will focus on
integrating the new assets and deleverage in the next years, and
not pursue any material debt-funded acquisitions or aggressive
financial policy decisions around shareholder returns. We
understand that Adevinta's current defined reported leverage range
is wide at 1.0x-4.0x, and that the company's financial policy
allows it to be at the top of this range or above it for
transformative deals with a goal to return to this range in the
subsequent months. We estimate that the difference between
Adevinta's defined leverage and S&P Global Ratings-adjusted
leverage is in the range of 0.6x-1.0x (based on S&P adjusted EBITDA
and debt that is calculated differently than Adevinta's defined
metrics), meaning that the top end of the company's leverage is up
to 5.0x. Our preliminary rating incorporates our expectation that
the group will deleverage to below 4.5x on an S&P Global
Ratings-adjusted basis by the end of 2021 and 3.5x-4.0x
subsequently.

"We expect the combined group will generate sizeable free operating
cash flows (FOCF) already in 2021, supporting Adevinta's
deleveraging trend.  The combined group's cash flow generation
will, in our view, benefit from its asset-light business model, and
diversified geographic and segment mix in the classifieds space. We
expect Adevinta will have only marginal annual working capital
needs that, combined with a moderate capital expenditure (capex) of
EUR50 million-EUR60 million, will translate into reported FOCF
(after lease payments) in excess of EUR230 million in 2021 (pro
forma the full consolidation of eCG) and above EUR310 million in
2022. We therefore anticipate that Adevinta's S&P Global
Ratings-adjusted FOCF to debt could reach 10%-13% in 2021 (pro
forma the full consolidation) and 14.5%-17.5% in 2022. In our base
case, we assume some bolt-on acquisitions in 2022, and no dividend
payments, allowing Adevinta to deleverage to 3.5x-4.0x by the end
of 2022.

"Adevinta's improved competitive advantage supports the group's
quality of earnings.   We consider that Adevinta's portfolio of
online classifieds platforms will strengthen by adding eCG's
leading brands, such as mobile.de, Germany's largest online
car-classifieds operator, Kijiji in Canada, and Marktplaats in the
Netherlands (both No. 1 horizontal platforms in their respective
markets) to name a few. As a result, Adevinta's platforms will have
either a leading or top-3 market position in their respective
markets. We believe that the success of the online classifieds
operator is largely dependent on maintaining a top-3 position in
its respective local markets; thus, we expect Adevinta will
continue attracting high traffic to its platforms, maintaining its
pricing advantage and improving monetization. We also anticipate
that Adevinta will leverage the expertise of the combined group by
launching new verticals, improving its customer proposition (new
functionalities and features), and enabling increasing
customization of its offering. We also understand that Adevinta
will continue to pursue the implementation of transactional
services in its horizontal platforms, which in the medium term
should also support growth and monetization."

A high share of recurring revenue will partly balance out increased
exposure to advertising.  After the acquisition, Adevinta's
exposure to advertising operations will increase to 28% (pro forma
2019) from 20% (Adevinta stand-alone). S&P views the advertising
revenue stream as more volatile and dependent on economic activity,
making Adevinta more susceptible to economic cycles. In our view,
the increased exposure to cyclical advertising will be partly
mitigated by its sound revenue share from vertical online
classifieds platforms, such as cars, jobs, and real estate,
representing 62% of pro forma 2019 total revenue. The majority of
the verticals' revenue is recurring in nature, because it is
generated from contracts with professional customers (such as car
dealers or real estate agents for example) that either buy packages
to place listings (of cars or real estate objects) or have
subscription-like contracts.

Adevinta's historically lower EBITDA margins will gradually
converge to industry standards.  Despite the integration costs in
2021 and 2022, S&P expects that Adevinta's S&P Global
Ratings-adjusted EBITDA margins will gradually improve to 27%-30%
in 2021 and 32%-35% in 2022 from 17%-24% in 2019-2020,. Mature
online classified platforms generally generate EBITDA margins in
excess of 35%. Adevinta's historical EBITDA margins did not exceed
30%. This was because they were diluted by the lower profitability
of its horizontal classifieds platforms (platforms that offer goods
in various categories versus vertical platforms that focus on one),
and the unprofitable operations of Global Markets, which runs
classifieds platforms across different regions in Europe, Africa,
and the Americas that are not yet mature. In 2020, we also expect
lower top line growth due to the impact of the COVID-19 pandemic.
S&P expects the EBITDA growth in 2021-2022 will be underpinned by
eCG's generally higher EBITDA margins (stand-alone above 30%),
improving operating leverage, better monetization of the company's
maturing platforms, and the positive impact from achieved synergies
from 2022.

Increasing competition from other players could challenge
Adevinta's competitive standing in the medium to long term.
Adevinta operates in a very competitive and fragmented online
classifieds landscape. Its horizontal and vertical classifieds
platforms compete locally against other horizontal and vertical
brands (for example, mobile.de competes with a No. 2 in Germany,
AutoScout24), niche players, social networks as well as
marketplaces. Large marketplaces like Amazon compete mostly with
Adevinta's horizontal brands. Facebook also has traction in some of
Adevinta's markets of operations (the U.K. and Canada) and competes
with Adevinta's horizontal platforms. S&P said, "That said, we
believe that Facebook's offering is more limited, since it mostly
focuses on consumer-to-consumer (C2C) transactions and its
monetization is rather limited, mainly containing advertising. We
think that Adevinta's competitive standing is currently backed by
its leading vertical brands with premium proposition to its
business-to-consumer and C2C customers through a higher
personalized offering and higher safety standards for transactions
than for example Facebook can offer. We also believe that
Adevinta's horizontal platforms, such as Marktplaats, eBay
Kleinanzeigen, or Kijiji, enhance their own vertical categories,
thus helping Adevinta to better monetize horizontal platforms'
traffic."

A lack of business diversification and the moderate size of
Adevinta's operations constrain the rating.  While the acquisition
will make the group a global leader in the online classifieds
space, Adevinta will still be a pure-play online classifieds
business, and lack diversification in other businesses. In
addition, despite Adevinta's increased scale of business following
the deal, its size will remain moderate compared with the global
classifieds industry and with other rated peers in the broader
media industry. In addition, an area of potentially weaker results
will be Adevinta's Spanish business, since the fallout from the
pandemic has hit country's economy especially hard, materially
limiting the population's purchasing power. These in S&P's view are
limiting factors for the group's creditworthiness.

Integration risks are partly mitigated by Adevinta's record of
previous acquisitions. S&P said, "We note that the group has
executed asset integrations before, including smaller deals, such
as horizontal online classifieds platforms milanuncios in Spain,
and DoneDeal in Ireland. The transformational acquisition of eCG is
by far Adevinta's largest deal. We cannot rule out implementation
or execution risks, given the size of the acquisition, the
complexity of operations, and the length of the integration process
that is to be spread over three years. Risks include higher
integration costs than initially planned, and lower or delayed
synergies than anticipated by Adevinta. Therefore, we are taking a
more conservative view of identified synergies expected by the
group. Adevinta aims to achieve about EUR150 million of synergies
over 2021-2023." The majority will be cost synergies, including a
cost optimization (for example, the integration of tech
infrastructure, lower general and administrative expenses, reduced
headcount costs, and removal of duplicate functions). The group
also aims to achieve about EUR50 million of revenue synergies. The
focus will be on more efficient advertising operations and
improvement of relationships with large advertisers; revenue growth
of its existing platforms by leveraging pricing expertise; and the
launch of new verticals and cross-border transactional classifieds
models.

S&P said, "The final ratings will depend on our receipt and
satisfactory review of all final documentation and final terms of
the transaction.  The preliminary ratings should therefore not be
construed as evidence of final ratings. If S&P Global Ratings does
not receive final documentation within a reasonable time frame, or
if the final documentation and final terms of the transaction
depart from the materials and terms reviewed, we reserve the right
to withdraw or revise the ratings. Potential changes include, but
are not limited to, the finalization of the documentation, use of
the proceeds, maturity, size and conditions of the facilities,
financial and other covenants, security, and ranking.

"The stable outlook reflects our expectation that Adevinta will
acquire eCG, achieve synergies within the planned timeline and
budget, and ultimately benefit from a solid market position in the
online classifieds industry. We also expect that Adevinta will
reduce its S&P Global Ratings-adjusted leverage to below 4.5x (pro
forma full consolidation of eCG) by year-end 2021 and below 4.0x in
2022, primarily due to EBITDA growth and sizeable positive FOCF
generation, while maintaining at least adequate liquidity and
adhering to a moderate financial policy."

S&P could take a negative rating action over the next 12 months if
Adevinta underperformed our base case because its operating
performance weakened, likely due to:

-- Integration challenges, such as delays in achieving synergies,
    or higher-than-anticipated integration costs;

-- Weaker macroeconomic conditions, including a more prolonged
    and severe impact from the pandemic and the recession
    extending through 2021; or

-- Increased competition that weakened Adevinta's market
    position, leading to a decline of traffic and listings,
    as well as lower revenue, earnings, and margins.

This would translate into S&P Global Ratings-adjusted leverage
increasing above 4.5x, or FOCF to debt declining below 10% by the
end of 2021. S&P could also lower the rating if the company's
financial policy became more aggressive than currently perceived,
including sizeable debt-funded mergers and acquisitions, or
shareholder remuneration, leading to elevated leverage levels for a
prolonged period, or if the group's liquidity position weakened.

Although unlikely over the next 12 months, S&P could raise the
rating if Adevinta significantly outperformed our base case by
integrating eCG with no setbacks, delivering synergies, increasing
its EBITDA and cash flows such that S&P Global Ratings-adjusted
debt to EBITDA declined to the low- to mid-3x range on a sustained
basis, and committing to a financial policy supporting this lower
leverage.




===============
P O R T U G A L
===============

TAP: Restructuring Plan to Be Sent to EU Commission in November
---------------------------------------------------------------
Sergio Goncalves at Reuters reports that a restructuring plan for
Portugal's flag carrier TAP will be sent to the European Commission
in November, the secretary of state for the treasury said on Oct.
13, which if approved will buy the airline time to repay a huge
bailout loan.

TAP asked for state aid in April after the outbreak of the
coronavirus forced it to suspend almost all of its 2,500 weekly
flights, Reuters recounts.

The European Commission approved a EUR1.2 billion rescue loan in
June, contingent on the airline drawing up a restructuring plan
within six months, or by the middle of December, Reuters notes.

If Brussels accepts the plan, TAP will have several years to repay
the debt, otherwise it must be repaid immediately, Reuters states.

According to Reuters, in its 2021 draft budget, Portugal included a
state guarantee for a new loan of EUR500 million to be granted to
the company this year.

"The restructuring plan is being drawn up, the expectation is that
it . . . could be presented (to Brussels) during November," Reuters
quotes Secretary of State for the Treasury Miguel Cruz as saying.

"Projections have been revised to significantly lower values, as
with all airlines in the world," Mr. Cruz told reporters, blaming
the high uncertainty caused by the pandemic with some forecasts not
expecting the travel sector to recover until 2024-25.




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

BANK MAYSKIY: Bank of Russia Revokes Banking License
----------------------------------------------------
The Bank of Russia, by virtue of its Order No. OD-1638, dated
October 9, 2020, revoked the banking license of LLC Bank Mayskiy
(Registration No. 1673, Kabardino-Balkar Republic, city of Mayskiy;
hereinafter, Bank Mayskiy).  The credit institution ranked 350th by
assets in the Russian banking system.

The Bank of Russia took this decision in accordance with Clauses 6
and 6.1 of Part 1 of Article 20 of the Federal Law "On Banks and
Banking Activities", based on the facts that Bank Mayskiy:

   -- violated federal banking laws and Bank of Russia regulations,
and also understated the amount of loan loss provisions to be
created, due to which the regulator repeatedly applied measures
against it over the past 12 months, which included restrictions on
household deposit-taking;

   -- failed to comply with the anti-money laundering and
counter-terrorist financing laws. The credit institution failed to
keep record of operations subject to obligatory control and submit
to the authorised body information thereon in a timely manner.

The Bank of Russia repeatedly sent the credit institution orders to
make a proper assessment of risks assumed and to reflect its real
financial standing in the financial statements.  The inspection
revealed instances of fictitious repayment of outstanding loans in
order to conceal the actual amount of overdue debt and to
artificially create interest income of the credit Institution.

The Bank of Russia will submit information about the bank's
transactions suggesting a criminal offence to law enforcement
agencies.

The Bank of Russia appointed a provisional administration to Bank
Mayskiy for the period until the appointment of a receiver or a
liquidator.  In accordance with federal laws, the powers of the
credit institution's executive bodies were suspended.

Information for depositors: Bank Mayskiy is a participant in the
deposit insurance system; therefore, depositors will be compensated
for their deposits in the amount of 100% of the balance of funds
but no more than a total of RUR1.4 million per depositor (including
interest accrued), except for the cases stipulated by Chapter 2.1
of the Federal Law "On the Insurance of Deposits with Russian
Banks".

Deposits are to be repaid by the State Corporation Deposit
Insurance Agency (hereinafter, the Agency).  Depositors may obtain
detailed information regarding the repayment procedure 24/7 at the
Agency's hotline (8-800200-08-05) and on its website
(https://www.asv.org.ru/) in the Deposit Insurance / Insurance
Events section.


BANK PROHLADNYJ: Bank of Russia Revokes Banking License
-------------------------------------------------------
The Bank of Russia, by virtue of its Order No. OD-1640, dated
October 9, 2020, revoked the banking license of Bank Prohladnyj LLC
(Registration No. 874, Kabardino-Balkar Republic, city of
Prohladnyj; hereinafter, Bank Prohladnyj).  The credit institution
ranked 348th by assets in the Russian banking system.1

The Bank of Russia took this decision in accordance with Clause 6
of Part 1 of Article 20 of the Federal Law "On Banks and Banking
Activities", based on the facts that Bank Prohladnyj:

   -- violated federal banking laws and Bank of Russia regulations,
and also understated the amount of loan loss provisions to be
created, due to which the regulator repeatedly applied measures
against it over the past 12 months, which included restrictions on
household deposit-taking;

Over 70% of the loan portfolio of Bank Prohladnyj are represented
by bad loans.  The Bank of Russia repeatedly requested Bank
Prohladnyj to create additional loss provisions.  Compliance with
the above requests revealed sufficient grounds in the bank's
activities calling for action to prevent its insolvency
(bankruptcy), which created a real threat to its creditors' and
depositors' interests.

Moreover, the bank was engaged in scheme operations to conceal the
level of overdue debt and to create interest income.  The Bank of
Russia will submit information about the above activities to law
enforcement agencies.

The Bank of Russia appointed a provisional administration3 to Bank
Prohladnyj for the period until the appointment of a receiver or a
liquidator.  In accordance with federal laws, the powers of the
credit institution's executive bodies were suspended.

Information for depositors: Bank Prohladnyj is a participant in the
deposit insurance system; therefore, depositors will be compensated
for their deposits in the amount of 100% of the balance of funds
but no more than a total of RUR1.4 million per depositor (including
interest accrued), except for the cases stipulated by Chapter 2.1
of the Federal Law "On the Insurance of Deposits with Russian
Banks".

Deposits are to be repaid by the State Corporation Deposit
Insurance Agency (hereinafter, the Agency).  Depositors may obtain
detailed information regarding the repayment procedure 24/7 at the
Agency's hotline (8-800-200-08-05) and on its website
(https://www.asv.org.ru/) in the Deposit Insurance / Insurance
Events section.




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

ALTERNATIFBANK AS: Fitch Affirms B+ LongTerm IDR, Outlook Neg.
--------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Foreign-Currency (LTFC)
Issuer Default Rating (IDR) of Alternatifbank A.S. at 'B+'. The
Outlook on the LTFC IDR remains Negative. The agency also affirmed
the bank's Viability Rating at 'b-'.

Fitch also affirmed the support-driven Long-Term Issuer Default
Ratings (IDRs) of Alternatif Finansal Kiralama A.S. The Outlook
remains Negative, mirroring that on the parent, Alternatifbank.

KEY RATING DRIVERS

IDRS, SUPPORT RATINGS

The bank's LTFC IDR is driven by institutional support from its
100% shareholder, The Commercial Bank (P.S.Q.C.) (A/Stable), in
case of need. Its view of the propensity and ability of The
Commercial Bank to provide support reflects the bank's ownership,
strategic importance, integration, and role within the wider group.
However, its Support Rating is capped at '4' due to Fitch's view of
government intervention risks in the banking system.

Fitch's view of government intervention risk caps the bank's LTFC
IDR at 'B+', one notch below Turkey's rating. This reflects its
assessment that weaknesses in Turkey's external finances make some
form of intervention in the banking system that would impede banks'
ability to service their foreign-currency obligations more likely
than a sovereign default.

In Fitch's view, government intervention risks have increased,
given the greater risk of a stress in Turkey's external finances
amid current heightened market volatility and Turkey's weakened net
sovereign FX reserves position.

The Long-Term Local-Currency IDR, which is also driven by
institutional support, is one notch above the bank's LTFC IDR,
reflecting its view of a lower likelihood of government
intervention that would impede the bank's ability to service
obligations in local versus foreign currency. However, the
Long-Term Local-Currency IDR is also on Negative Outlook, mirroring
the sovereign Outlook, and reflecting its view that the likelihood
of government intervention that would impede the bank's ability to
service its obligations in local currency is not lower than the
probability of a sovereign default in local currency.

VR

The bank's 'b-' VR reflects its weak capitalisation, despite
ongoing capital support from its parent, and very limited core
capital buffer above the common equity Tier 1 (CET1) regulatory
minimum available to absorb losses. Capitalisation constrains the
bank's rating. Downside risks to capitalisation remain significant
given asset-quality pressures, lira depreciation (given the
inflation of foreign-currency risk-weighted assets) and the
concentration of the bank's operations in the high-risk Turkish
operating environment.

Alternatifbank has a limited domestic franchise with market shares
of banking sector assets, loans and deposits of below 1%. Pressures
on its credit profile were already significant coming into the
crisis and have been further heightened by the coronavirus pandemic
and lockdown measures, given the economic contraction and market
volatility. The lira depreciated by 24% in 9M20 and Fitch forecasts
Turkey's GDP will contract 3.2% in 2020, followed by a subsequent
sharp recovery (5.0% growth) in 2021.

Monetary policy measures and fiscal support for the private sector
and financial markets, including further lira interest-rate cuts in
1H20 and the expanded Credit Guarantee Fund (whereby financing
disbursed under the facility largely to SMEs is covered by a
Turkish Treasury guarantee up to a certain level of non-performing
loan), have supported borrower repayment capacity and sector loan
growth over the course of the pandemic.

Regulatory forbearance in place until end-2020 will also continue
to provide uplift to the bank's reported asset quality, capital and
performance metrics over the short term.

Alternatifbank grew by 8% on an FX-adjusted basis in 1H20 (sector:
16%), despite heightened operating environment pressures, creating
seasoning risks. However, growth was mainly in local-currency
lending and its growth appetite in 2H20 is likely to be relatively
lower. At end-1H20, foreign-currency lending (including foreign
currency-indexed loans) remained very high at 51% of gross loans
(sector: 34%), despite efforts since 2019 to deleverage
foreign-currency loans and convert some exposures to local
currency.

Asset quality forbearance measures may serve only to delay
recognition of the bank's problematic exposures, in its view. NPLs
made up an above-sector-average 5.0% of Alternatifbank's gross
loans at end-1H20. Stage 2 exposures were also high (13%, of which
30% were restructured/overdue), largely comprising foreign-currency
loans in the construction and real estate portfolios.

Fitch expects the bank's underlying asset quality to deteriorate
and impairments to rise given its risk profile, the weaker growth
outlook, high foreign-currency lending and the potential impact of
ongoing lira depreciation on often weakly hedged borrowers' ability
to service their debt. The extent of asset-quality deterioration
will depend on the impact of the pandemic fallout and the pace of
economic recovery.

Single-name concentration risk at the bank is material; the top 25
cash loans make up about 41% of total loans, or 3.8x of CET1, at
end-1H20. Alternatifbank also has exposure to risky sectors
including construction (end-1H20: 18% of loans, largely consisting
of loans to commercial/real estate development), energy (7%) and
logistics (9%), a sector that has proved highly sensitive to the
coronavirus fallout. Exposure to tourism (2%) is more moderate.

At end-1H20, the bank's total reserves coverage of NPLs was just
68% (sector average: 116%). This reflects reliance on collateral,
which could be challenging to realise in the current challenging
operating environment. The latter drives the bank's low specific
reserves coverage of Stage 3 loans (31%), which is one of the
lowest among Fitch-rated banks. However, reserves coverage of Stage
2 exposures is in line with most other banks' (11%).

The bank's core capitalisation is very weak given its risk profile,
asset-quality pressures and the depreciation of the lira (due to
the inflation of foreign-currency risk-weighted assets), and acts
as a constraint on growth. Leverage is also high, as reflected in
its tangible equity/tangible assets ratio of 6.8% at end-1H20.

Alternatifbank reported a CET1 ratio of 8.7% at end-1H20. Its CET1
and Tier 1 ratios net of regulatory forbearance were in line with
the minimum regulatory requirements of 7% and 8.5%, respectively,
implying no buffer to absorb losses. The bank's ability to generate
capital internally is also weak and has come under further pressure
in the weaker economic climate.

The bank's ratio of unreserved NPLs (considering specific reserves
only) to CET1 capital is also high (32% of at end-1H20).
Pre-impairment profit (1H20: equal to 3% of average gross loans,
annualised) implies a moderate buffer to absorb credit losses
through the income statement.

The bank's total capital ratio is higher (18.4% at end-1H20),
supported by external foreign-currency subordinated debt (call
option in April 2021) and additional Tier 1 from its parent, which
provide a partial hedge against potential lira depreciation.

Commercial Bank has provided regular capital support to
Alternatifbank totalling USD200 million since 2018 amid heightened
operating environment pressures in Turkey. This includes a USD50
million (TRY308 million) cash injection (equal to 14% of end-2019
equity) in March 2020 at the time of lockdown. Further capital
support will be needed to ensure compliance with regulatory
minimums given pressure on the bank's core capital position. Within
Alternatifbank's business plans, further capital injections are
being considered to support capital and growth.

Alternatifbank's profitability has historically been below the
sector average, weighed down by asset-quality pressures, a focus on
cleaning up the loan book over growth (2017-2019) and a lack of
economies of scale. Its operating profit/risk-weighted assets ratio
continued to fall in 1H20, declining to 0.7% (sector: 2.2%) due to
contraction in the net interest margin - which is significantly
below the sector average due to the bank's focus on the
low-yielding corporate and commercial segments - and higher loan
impairments (equal to 68% of pre-impairment profit).

The bank increased provisions in 2Q20 despite the easing of
regulatory loan classifications, partly reflecting weaker
macroeconomic IFRS 9 model inputs.

Fitch expects performance to remain weak due to high loan
impairments - as the bank makes provisions for increased risks
despite ongoing regulatory forbearance in the short term - weak
loan growth (due to capital constraints) and pressure on margins in
the rising lira interest rate environment.

The bank's funding and liquidity profile is only adequate. Customer
deposits comprised 50% of total funding at end-1H20 and a
significant share (56%) is in foreign currency (sector: 50%). The
bank reported a gross loans/deposits ratio of 125%, significantly
weaker than the sector average of 111%, reflecting high reliance on
wholesale funding (end-1H20: 37% of total funding).
Foreign-currency debt excluding parent funding is moderately lower,
but still high, at 31%.

Refinancing risks for Turkish banks have increased due to
heightened operating environment pressures and market volatility.
Wholesale funding is mainly (91%) in foreign currency and largely
comprises trade finance from commercial banks or export agencies.
The bank has slightly decreased external foreign currency debt and
repaid its USD150 million syndicated loan (3% of total funding) in
3Q20.

The bank's foreign-currency liquidity is sufficient to cover
short-term foreign-currency non-deposit liabilities due within a
year. Foreign-currency liquid assets comprise mainly
foreign-currency swaps, unpledged foreign-currency government
bonds, foreign-currency cash and interbank placements.
Nevertheless, foreign-currency liquidity could come under pressure
from prolonged market closure or deposit instability. Refinancing
risks are mitigated by potential foreign-currency liquidity support
from the parent.

Alternatifbank's liquidity coverage ratio was 218% at end-1H20,
above the regulatory limit of 100%, and its foreign-currency
Liquidity Coverage Ratio was at a similar level (221%).

NATIONAL RATING

The National Rating is affirmed with Stable Outlook reflecting its
view that the bank's creditworthiness in local currency relative to
other Turkish issuers has not changed.

SUBSIDIARY RATINGS

The IDRs of Alternatif Finansal Kiralama are equalised with those
of the parent, reflecting Fitch's view that it is a core and highly
integrated subsidiary and the sole provider of leasing products
within the group. Its view of support also considers full ownership
and shared branding. The Negative Outlook on the company's IDRs
mirror that of the parent bank.

RATING SENSITIVITIES

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

The bank's LTFC IDR is primarily sensitive to Fitch's view of
government intervention risk in the banking sector and could be
downgraded if Fitch assesses this risk as having increased.
Alternatifbank's LTFC IDR could also be downgraded if its
assessment of its owner's ability and propensity to provide support
materially weakens.

The Long-Term Local-Currency IDR is sensitive to the ability and
propensity of its parent to provide support and to Fitch's view of
intervention risk in the banking sector.

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

An upgrade of the bank's ratings is unlikely in the near term given
the Negative Outlooks. The Outlook on the Long-Term IDRs could be
revised to Stable if Fitch believes that the risk of government
intervention in the banking system has abated.

VR

The VR is sensitive to a marked deterioration in the operating
environment and therefore to the economic and financial market
fallout from the pandemic, given the negative implications for the
bank's financial profile.

The bank's VR could be downgraded due to further weakening of its
pressured capital position, including through further deterioration
in asset quality, or a weakening of its foreign-currency liquidity
position due to deposit outflows or an inability to refinance
maturing external obligations, if not offset by shareholder
support.

The bank's VR could be upgraded upon a strengthening of its core
capitalisation (excluding forbearance).

NATIONAL RATING

The National Rating is sensitive to changes in the bank's Long-Term
Local-Currency IDR and also in its relative creditworthiness to
other Turkish issuers.

SUBSIDIARY RATING

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

The ratings are sensitive to adverse changes in (i)
Alternatifbank's ratings; and (ii) Fitch's view of the ability and
willingness of the parent to provide support in case of need.

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

Rating upgrades are unlikely in the short term given the Negative
Outlooks.

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

The bank's IDRs are driven by institutional support from its
parent. Alternatif Lease's IDRs are driven by institutional support
from Alternatifbank.

ESG CONSIDERATIONS

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


BURGAN BANK: Fitch Affirms B+ LongTerm IDR, Outlook Negative
------------------------------------------------------------
Fitch Ratings has affirmed Burgan Bank A.S.'s (Burgan Bank Turkey)
Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at
'B+'. The Outlook is Negative. At the same time, Fitch has
downgraded the Viability Rating (VR) to 'b-' from 'b'.

The downgrade of the VR reflects heightened pressures on the bank's
performance and asset quality resulting from the coronavirus
pandemic. Its core capitalisation is weak, while risks to capital
from unreserved net impaired loans and potential further lira
depreciation remain significant.

KEY RATING DRIVERS

IDRs AND SUPPORT RATING

Burgan Bank Turkey's 'B+' LTFC IDR is driven by institutional
support from its 99.6% shareholder, Kuwait-based Burgan Bank
K.P.S.C. (Burgan Bank Kuwait; A+/Stable), in case of need. Its view
of support reflects the bank's ownership, strategic importance to
and integration with the group, and common branding. However, its
Support Rating is capped at '4' due to Fitch's view of government
intervention risks in the banking system. Burgan Bank Turkey is
Burgan Bank Kuwait's largest international subsidiary, and
represented 15% of the parent's consolidated assets at end-1H20.

Fitch's view of government intervention risk caps the bank's LTFC
IDR at 'B+', one notch below Turkey's rating. This reflects its
assessment that weaknesses in Turkey's external finances make
intervention in the banking system that would impede banks' ability
to service their foreign-currency obligations more likely than a
sovereign default.

In Fitch's view, government intervention risks have increased,
given the greater risk of a stress in Turkey's external finances
amid current heightened market volatility and Turkey's weakened net
sovereign FX reserves position. This drives the Negative Outlook on
the bank's LTFC IDR.

Fitch has also affirmed the Long-Term Local Currency (LTLC) IDR,
which is also driven by institutional support, at 'BB-', one notch
above Burgan Bank Turkey's LTFC IDR. This reflects its view that
government intervention that would impede the bank's ability to
service obligations in local currency is less likely than in
foreign currency. The Outlook on the LTLC IDR is Negative,
mirroring the sovereign Outlook, and reflecting its view that
government intervention that would impede the bank's ability to
service its obligations in local currency is not less likely than a
sovereign default in local currency.

VR

The VR reflects the concentration of the bank's operations in the
Turkish operating environment and significant risks to its credit
profile from the economic and financial-market fallout from the
coronavirus. These factors have heightened pressures on asset
quality, performance and capitalisation.

Burgan Bank Turkey's core capitalisation (1H20: common equity Tier
1 - CET1 - ratio of 10%, with forbearance) is weak given its risk
profile, fairly high unreserved impaired loans (1H20: equal to 22%
of CET1 capital), asset-quality pressures, concentration risks and
the lira depreciation (given the inflation of foreign-currency
risk-weighted assets). Its loss-absorption buffer has been eroded,
while its internal capital generation has also declined
significantly.

Risks to Burgan Bank Turkey's standalone creditworthiness were
already significant coming into the pandemic and have been further
heightened by the coronavirus outbreak and lockdown measures, given
the economic contraction and market volatility. The lira
depreciated by 24% in 9M20 and Fitch forecasts Turkey's real GDP
will contract 3.2% in 2020, followed by a subsequent sharp recovery
(5.0% growth) in 2021.

Monetary policy measures and fiscal support for the private sector
and financial markets, including further lira interest-rate cuts in
1H20 and the expanded Credit Guarantee Fund (whereby financing
disbursed under the facility largely to SMEs is covered by a
Turkish Treasury guarantee up to a certain percentage of
non-performing loans), have supported borrower repayment capacity
and sector loan growth over the course of the pandemic. However,
Credit Guarantee Fund-backed loans comprised a small 3% of Burgan
Bank Turkey's gross loans at end-1H20.

Regulatory forbearance in place until end-2020 will continue to
provide uplift to the bank's reported asset quality, capital and
performance metrics over the short term. Asset quality-related
forbearance measures may serve only to delay recognition of
problematic exposures, in its view.

Burgan Bank Turkey has a limited franchise in Turkey. The bank's
very small size (ranked among the top 30 banks in Turkey) and
market shares (end-1H20: 0.4% of sector assets) result in limited
competitive advantages and pricing power.

Asset-quality risks for the bank are significant given material
foreign-currency lending (end-1H20: 67% of gross loans) and the
potential impact of lira depreciation on often weakly hedged
borrowers' ability to service their debt, high single-name risk
(the 25 largest cash exposures were equal to 54% of gross loans or
an exceptionally high 5.3x CET1 at end-1H20) and exposure to risky
sectors. Loan growth was 12.6% in 1H20 (2% on an FX adjusted basis,
compared with 16% for the sector).

Lumpy project finance lending, largely to the commercial real
estate and renewable energy sectors, comprised 25% of gross loans
at end-1H20. The largely long-term, slowly amortising structure of
the loan book creates seasoning risks and means credit losses are
likely to feed through only gradually. The bank also has
concentration risk to vulnerable sectors, including construction
and real estate (end-1H20: 19% of gross loans), which has come
under pressure from the weak growth outlook and lira depreciation,
and tourism (14%), which has been negatively affected by the
pandemic.

The bank's weakening asset quality is a key rating driver of the
VR. The bank's impaired loans (NPLs) ratio has risen sharply since
2016 and increased to a fairly high 8.6% at end-1H20, significantly
above the sector average of 4.4%.

Fitch believes the bank's NPL ratio will exceed 10% by end-2020 due
to the migration of loans overdue by 90-180 days (equal to a high
5.7% of gross loans at end-1H20) classified as Stage 2 due to
regulatory forbearance. Stage 2 loans were a high 20% of gross
loans (over half were restructured) at end-1H20.

Total reserves coverage of impaired loans is weak (end-1H20: 74%;
sector: 116%), partly reflecting reliance on collateral (including
for leases), which is likely to be harder to realise given
operating environment pressures. Specific reserves coverage of
Stage 2 loans (end-1H20: 18%) was above that of most peers.
However, single-name risk could result in volatility in reserve
coverage levels.

The bank's operating profit/risk-weighted assets ratio was
negligible in 1H20 due to high loan impairment charges that
consumed 98% of pre-impairment operating profit and a decrease in
the net interest margin (3.8%; 2019: 4.4%) partly given higher cash
balances with the central bank.

Pre-impairment operating profitability is below the sector average,
reflecting a lack of economies of scale and diversification,
limited pricing power and concentration on corporate lending where
margins are relatively low. Profitability is likely to remain weak,
due to high impairments and low growth in the weaker economic
climate.

Burgan Bank Turkey's CET1 ratio was broadly flat at 10% in 1H20 but
includes +90bp uplift from regulatory forbearance. Core
capitalisation is weak in light of its risk profile, pressured
asset quality (end-1H20: unreserved impaired loans were equal to
22% of CET1 capital; end-2019: 15%) and weak earnings generation
(1H20: return on average equity of 0.3%).

Core capital is also sensitive to lira depreciation given the
bank's high share of foreign-currency loans. However,
pre-impairment operating profit (1H20: 2.5% of annualised average
loans) provides a limited buffer to absorb losses through the
income statement.

Burgan Bank Turkey's total capital adequacy ratio is also higher
(19.4% at end-1H20, broadly in line with the sector average) and
comfortably above the regulatory minimum. It comprises a large
buffer of foreign-currency subordinated debt (equivalent to 10.5%
of risk-weighted assets at end-1H20) from Burgan Bank Kuwait that
provides a partial hedge against lira depreciation.

Funding is primarily sourced from customer deposits (end-1H20: 56%
of total funding), but a significant and increased share is in
foreign currency (70% of total customer deposits; sector: 50%).
Foreign-currency wholesale funding is also significant (42% of
total funding at end-1H20), which creates refinancing risks for the
bank amid increased operating environment pressures and market
volatility.

However, about three-quarters of external debt is provided by the
bank's parent via foreign-currency bilateral borrowings and
long-term foreign-currency subordinated debt. The VR consequently
also reflects heavy reliance on group funding.

The bank's foreign-currency liquidity position is adequate, with
additional comfort provided by the presence of its parent.
Foreign-currency liquidity is broadly sufficient to cover total
foreign-currency wholesale funding falling due within 12 months but
could come under pressure in case of prolonged market closure or
deposit outflows.

NATIONAL RATING

The National Rating has been affirmed at 'AA(tur)' with a Stable
Outlook, reflecting its view that the bank's creditworthiness in
local currency relative to other Turkish issuers has not changed.

RATING SENSITIVITIES

IDRs, SUPPORT RATING, VR

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

An upgrade of the bank's IDRs is unlikely in the near term given
the Negative Outlooks. The Outlook on the LT IDRs could be revised
to Stable if Fitch believes that the risk of government
intervention in the banking system has abated.

Fitch could upgrade the VR if the bank demonstrates sustainable
improvement in asset quality and profitability, which reduces risks
to core capitalisation.

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

The bank's LTFC IDR is primarily sensitive to Fitch's view of
government intervention risk in the banking sector and could be
downgraded if Fitch assesses this risk as having increased. The
LTFC IDR could also be downgraded if its assessment of
institutional support simultaneously weakens.

The LTLC IDR is sensitive to the ability and propensity of its
parent to provide support and to Fitch's view of intervention risk
in the banking sector.

The VR is sensitive to a marked deterioration in the operating
environment and therefore to the economic and financial market
fallout of the pandemic, given the negative implications for the
bank's financial profile.

The VR could be downgraded as a result of a further material
deterioration in asset quality or profitability beyond its
expectations or a sharp increase in unreserved impaired loans if
this further erodes the bank's core capital position and weakens
its loss-absorption capacity.

A VR downgrade could also result from a weakening in the bank's
foreign-currency liquidity position due to deposit outflows or an
inability to refinance maturing external obligations, if not offset
by shareholder support.

NATIONAL RATING

The National Rating is sensitive to changes in the bank's LTLC IDR
and also in its relative creditworthiness to other Turkish
issuers.

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

The ratings of Burgan Bank Turkey are linked to the ratings of
Burgan Bank Kuwait.

ESG CONSIDERATIONS

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


ICBC TURKEY: Fitch Affirms 'B+' LongTerm IDR
---------------------------------------------
Fitch Ratings has affirmed ICBC Turkey Bank A.S.'s (ICBC Turkey)
Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at
'B+', while downgrading the Viability Rating (VR) to 'b' from 'b+'.
The Outlook on the LTFC IDR is Negative.

The downgrade of the VR reflects pressure on ICBC Turkey's core
capital position amid the coronavirus outbreak. At end-1H20, ICBC
Turkey's reported regulatory Tier 1 ratio was 8.56% (including the
impact of forbearance), below the regulatory minimum requirement of
8.76%, although the bank was compliant with its minimum CET1 and
total capital ratios. As a result of the downgrade, the bank's 'B+'
LTFC IDR is now driven solely by institutional support.

KEY RATING DRIVERS

IDRS AND SUPPORT RATING

The LTFC IDR of ICBC Turkey is driven by support from its 92.8%
owner, Industrial and Commercial Bank of China Limited (ICBC;
A/Stable). Its view of the propensity and ability of ICBC to
provide support reflects the bank's ownership, strategic
importance, integration, and role within the wider group. However,
its SR is capped at '4' due to Fitch's view of government
intervention risks in the banking system.

Fitch's view of government intervention risk caps the bank's LTFC
IDR at 'B+', one notch below Turkey's rating. This reflects its
assessment that weaknesses in Turkey's external finances make some
form of intervention in the banking system that would impede banks'
ability to service their foreign currency (FC) obligations more
likely than a sovereign default.

In Fitch's view, government intervention risks have increased,
given the greater risk of a stress in Turkey's external finances
amid current heightened market volatility and Turkey's weakened net
sovereign FX reserves position. This drives the Negative Outlook on
the bank's rating.

The bank's 'BB-' Long-Term Local-Currency (LTLC) IDR, which is also
driven by institutional support, is one notch above ICBC Turkey's
LTFC IDR, reflecting its view of a lower likelihood of government
intervention that would impede the bank's ability to service
obligations in LC versus obligations in FC. However, the LTLC IDR
is also on Negative Outlook mirroring the sovereign Outlook,
reflecting its view that the likelihood of government intervention
that would impede the bank's ability to service its obligations in
LC is not lower than the probability of a sovereign default in LC.

VR

The downgrade of the VR reflects very weak core capitalisation at
ICBC Turkey, considering its Tier 1 ratio (including the uplift
from regulatory forbearance) was in breach of the regulatory
minimum at end-1H20. Risks to capitalisation are further heightened
by high single-name concentration risk in the bank's loan book and
material FC lending due to the inflation of FC risk-weighted assets
(RWAs) from lira depreciation.

Fitch continues to believe that ordinary capital support for ICBC
Turkey from its parent will continue to be forthcoming given the
bank's small size, strategic importance to its parent and role in
ICBC's 'Road and Belt Initiative'. Nonetheless, ICBC Turkey's Tier
1 ratio falling below the regulatory minimum reflects core capital
pressures from RWA growth, primarily relating to off-balance sheet
exposures, and indicates potential delays in the timeliness of
required ordinary support. This is the main driver of the VR
downgrade. The bank expects a new capital injection in 1Q21 which
should moderately improve its core capital ratios, and should help
restore compliance with minimum Tier-1 ratio requirements.

The bank's total capital ratio is strong (21.9%) and was
comfortably above the 12% regulatory minimum at end-1H20, supported
by a large buffer of subordinated FC funding from ICBC, which
provides a partial hedge against lira depreciation.

A material part of ICBC Turkey's funding (end-1H20: equal to 44% of
total funding) is also sourced from ICBC, indicative of a high
level of ordinary funding and liquidity support. As a result, the
bank has limited FC wholesale debt exposure. Its FC liquidity is
supported by a material share of stable parent funding, the absence
of significant maturing wholesale funding liabilities and a high
level of FC deposit funding.

ICBC Turkey has a limited franchise in Turkey, where it operates as
a universal commercial bank mainly servicing commercial, corporate
and, to a lesser extent, SME customers. Single-name concentration
risk in the loan book is exacerbated by its small absolute size.
The bank has a niche servicing large corporates and China-Turkey
trade-related flows, but such business is limited relative to its
overall operations. Its strategy is also to expand lending to
domestic financial institutions.

Risks to the bank's standalone credit profile were already
significant coming into the pandemic and have been further
heightened by the coronavirus outbreak and lockdown measures. The
lira has depreciated 24% in 9M20 and Fitch forecasts Turkey's GDP
will contract 3.2% in 2020 followed by a sharp recovery (5%) in
2021.

Monetary policy measures and fiscal support for the private sector
and financial markets, including the Central Bank of the Republic
of Turkey interest-rate cuts and the expanded Credit Guarantee Fund
(CGF; whereby financing disbursed under the facility to SMEs and
certain retail borrowers is covered by a Turkish Treasury guarantee
up to a certain non-performing financing (NPF) cap), have supported
borrowers' repayment capacity. However, take-up of CGF loans at
ICBC Turkey has been limited given its more corporate focus.
Regulatory forbearance measures will provide uplift to its reported
asset quality, capital and performance metrics over the short
term.

At end-1H20, ICBC Turkey's non-performing loan I (NPL) ratio was a
low 0.5% and its Stage 2 loans ratio a moderate 6.5% (the latter
43% restructured). Fitch expects the bank to continue to outperform
peers in terms of NPL origination rate. Its reported asset-quality
metrics will continue to be supported by forbearance in the short
term. Fitch does not expect sector NPLs to pick up until at least
1Q21.

Asset-quality risks for the bank are significant given the weaker
GDP growth outlook, exceptionally high FC lending (end-1H20: 82% of
loans versus 35% for the sector) - given the potential impact of
the lira depreciation on often weakly hedged borrowers' ability to
service their debt - and significant concentration risk. Its 24
largest loans comprised 76% of gross loans at end-1H20 (or 4.6x
equity). Exposure to the troubled energy sector amounted to a
combined 25% of gross loans at end-1H20, a sector that has come
under pressure from the weak growth outlook, lira depreciation and
weak energy prices.

Mitigating the credit risk, however, is the bank's focus on
generally higher-quality corporate borrowers, Turkish financial
institutions and projects under government guarantee (including
revenue and debt assumption guarantees and feed-in tariffs on
energy projects), among others. The largely long-term, slowly
amortising structure of the loan book also means credit losses are
likely to feed through only gradually. Its base case is that
asset-quality risks for the bank should be manageable considering
ICBC Turkey's loan book composition and the high share of Turkish
government securities and loans extended to Turkish banks in the
form of bilateral and syndication loans on the bank's balance
sheet.

In addition, total NPL and Stage 2 reserves coverage is strong
(end-1H20: 491% and 24%, respectively), albeit sensitive to
single-name risk.

ICBC Turkey generally reports below-sector-average profitability
metrics, reflecting a lack of economies of scale, limited pricing
power and a below-sector average net interest margin, due to its
corporate, largely FC-denominated loan book. The bank's operating
profit-to-RWAs was 1.5% in 1H20 (sector: 2.2%), but included large
trading gains from the bank's FX position. Its performance is
likely to remain muted given capital constraints on growth and
likely further moderate impairment charges in the weaker economic
climate.

At end-1H20, ICBC Turkey reported a Tier 1 ratio of 8.56%
(including 149bp uplift from regulatory forbearance), below its
8.76% regulatory minimum, the latter including a 2.5% capital
conservation buffer and 0.26% countercyclical buffer. Tier 1
capital is tight for its concentration risk, weak internal capital
generation and the lira depreciation (due to the inflation of FC
RWA assets). Its CET1 ratio was also 8.56% (including the impact of
regulatory forbearance), above the minimum regulatory requirement
of 7.26%, and its reported total capital adequacy ratio of 21.9%
(including forbearance) comfortably above the minimum of 12%.

Deposit funding, primarily in FC, accounted for a moderate 56% of
ICBC Turkey's total funding at end-1H20. The remainder of its
funding comprised parent funding, indicating high reliance on group
funding.

The bank's FC liquidity position is generally moderate with
additional comfort provided by the presence of funding from its
parent. Fitch calculates that at end-1H20 FC liquid assets
(comprising mainly cash and interbank placements, FC reserves held
under the reserve option mechanism and unpledged government
securities) sufficiently covered short-term FC non-deposit
liabilities due within a year. Nevertheless, FC liquidity could
come under pressure in the event of deposit instability, if not
offset by shareholder support.

NATIONAL RATING

The affirmation of the National Rating reflects its view that the
bank's creditworthiness in LC relative to that of other Turkish
issuers has not changed.

RATING SENSITIVITIES

IDRS, SUPPORT RATING AND VR

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

The bank's LTFC IDR is primarily sensitive to Fitch's view of
government intervention risk in the banking sector and could be
downgraded if Fitch assesses this risk as having increased. The
LTFC IDR could also be downgraded if its assessment of
institutional support simultaneously weakens.

The LTLC IDR is sensitive to the ability and propensity of ICBC to
provide support and to Fitch's view of intervention risk in the
banking sector.

The VR is sensitive to marked deterioration in the operating
environment and therefore to the economic and financial market
fallout of the pandemic, given the negative implications for the
bank's financial profile.

The bank's VR could be downgraded due to further weakening in core
capital metrics or a weakening in Fitch's view of the likelihood or
timeliness of ordinary capital support from ICBC - including if the
bank remains below its minimum regulatory capital requirements over
a sustained period as a result of capital support being
insufficient or not forthcoming on a timely basis.

A downgrade could also result from material deterioration of asset
quality or a weakening of the bank's FC liquidity position due to
deposit outflows, if not offset by shareholder support.

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

An upgrade of the bank's ratings is unlikely in the near term given
the Negative Outlooks. The Outlook on the LT IDRs could be revised
to Stable if Fitch believes that the risk of government
intervention in the banking system has abated.

NATIONAL RATING

The National Rating is sensitive to changes in the bank's LTLC IDR
and also in its relative creditworthiness to other Turkish
issuers'.

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

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

TURKLAND BANK: Fitch Affirms 'B' LongTerm IDRs, Outlook Negative
----------------------------------------------------------------
Fitch Ratings has affirmed Turkland Bank A.S.'s (T-Bank) Long-Term
Issuer Default Ratings (IDRs) at 'B' with a Negative Outlook. The
bank's Viability Rating (VR) has also been affirmed at 'ccc+'.

KEY RATING DRIVERS

LONG-TERM FOREIGN- AND LOCAL-CURRENCY IDRS AND SUPPORT RATING

T-Bank's Long-Term Foreign-Currency (LTFC) and Long-Term Local
Currency (LTLC) IDRs of 'B' are driven by institutional support
from the bank's 50% Jordan-based owner, Arab Bank Plc
(BB/Negative), as reflected in its Support Rating (SR) of '4'. The
Negative Outlook on the bank's IDRs mirrors that on its parent.

The support-driven IDRs of T-Bank are notched three times below its
parent's, reflecting its limited role in the Arab Bank group, weak
performance and Fitch's view that Turkey constitutes a non-core
market for Arab Bank compared with its other strategically
important markets. T-Bank continues to be classified as an
investment held for sale in Arab Bank's financial statements,
indicating high potential for disposal in its view and in turn
limiting potential reputational risk for Arab Bank and reducing its
propensity to support T-Bank in case of need, in its view.

Arab Bank holds only a 50% stake in T-Bank, which may also
complicate the prompt provision of solvency support, if required.
Nevertheless, the affirmation of T-Bank's SR considers the record
of timely and sufficient provision of capital and liquidity support
to date from both Arab Bank and its other 50% owner, Lebanon-based
BankMed Sal.

NATIONAL RATING

The affirmation of the National Rating reflects its view that
T-Bank's creditworthiness in local currency relative to that of
other Turkish issuers has not changed. The Negative Outlook
reflects downside risks to its creditworthiness relative to other
Turkish issuers'.

VR

The 'ccc+' VR of T-Bank reflects pressure on its credit profile
given the concentration of its operations in the high-risk Turkish
operating environment and the economic and financial-market fallout
from the coronavirus pandemic.

The VR also considers the bank's small size and limited franchise
as a universal bank servicing commercial and corporate customer
(market shares of banking-sector assets, loans and deposits below
1%). Asset quality is very weak and single-name borrower risk high,
although both have been distorted by loan book deleveraging since
2016.

Risks to T-Bank's standalone credit profile were already
significant coming into the pandemic and have been further
heightened by the coronavirus outbreak and lockdown measures. The
lira depreciated 24% in 9M20 and Fitch forecasts Turkey's GDP will
contract 3.2% in 2020 followed by a sharp recovery (5% GDP growth)
in 2021.

Monetary policy measures and fiscal support for the private sector
and financial markets, including the Central Bank of the Republic
of Turkey interest-rate cuts and the expanded Credit Guarantee Fund
(CGF; whereby loan disbursed under the facility to SMEs and certain
retail borrowers is covered by a Turkish Treasury guarantee up to a
certain non-performing loans (NPL) cap), have supported borrowers'
repayment capacity. Regulatory forbearance measures will provide
uplift to T-Bank's reported asset quality, capital and performance
metrics over the short term.

Asset-quality risks for the bank are significant and have increased
given the weaker GDP growth outlook and high, albeit below-sector
average, foreign currency (FC) loans (end-1H20: 24% of gross loans;
sector: 35%), given the potential impact of the lira depreciation
on often weakly hedged borrowers' ability to service their
borrowing. Exposure to the troubled construction and real estate
sectors (at end-1H20: 30% of the bank's total cash and non-cash
exposures) is an additional source of risk.

Lending contracted 41% in FX-adjusted terms between end-2017 and
end-1H20, as T-Bank focused on cleaning up its loan book over
growth. T-Bank has also set rapid growth targets for primarily LC
corporate lending over the medium term, underpinned by planned
capital support from shareholders, as it endeavours to boost
profitability. However, high growth appetite may heighten risks to
asset quality as loans season.

T-Bank reports significantly weaker asset quality ratios than
peers, reflecting asset-quality weakness and loan book contraction.
Its reported non-performing loan (NPL) and Stage 2 ratios were a
very high 41% (sector average: 4.4%, unconsolidated basis) and 18%,
respectively, at end-1H20. Thirteen per cent of its Stage 2 loans
were restructured. Fitch expects asset quality to remain under
pressure given the bank's risk profile, although the extent of
further asset-quality deterioration will depend on the impact of
the pandemic fallout and the pace of economic recovery.

Total reserves coverage of NPLs is low (59%), partly reflecting
T-Bank's large NPL portfolio, but also reliance on collateral. The
latter drives the bank's only moderate level of specific reserves
against NPLs. However, collateral could be challenging to realise
given pricing pressure and market illiquidity in the weaker
operating environment. Reserves coverage of Stage 2 loans is
moderate at 16%, but above that of many banks.

T-Bank generally reports below-sector-average profitability
metrics, due to its lack of economies of scale, loan-book
deleveraging, high impairments and below-sector-average net
interest margin (reflecting its limited pricing power). The bank is
structurally unprofitable and reported pre-impairment losses in
2019/1H20, reflecting its high cost and weak revenue base.

Nevertheless, its operating profit/risk-weighted assets (RWAs)
ratio rose to 5.2% (annualised) in 1H20 (sector: 2.2%), following
three years of operating losses (2017-2019). Fitch does not regard
such a level to be sustainable given T-Bank's small size,
asset-quality pressures and the rising lira rate environment (and
ensuing rise in deposit costs). The bank's 1H20 performance was
also boosted by strong collections and a sharp widening in the net
interest margin (NIM) (1H20: 5.1%; 2019: 0.2%), as lira interest
rates fell and reflecting the bank's strategy to release some
high-cost deposits.

T-Bank's capitalisation is weak (end-1H20: common equity tier 1
ratio of 17.8%) given asset-quality risks, very high unreserved
NPLs (end-1H20: equal to 71% of CET1 capital), capital erosion
(from losses) and the lira depreciation (which inflates FC RWAs).
Further capital support from shareholders will be needed to
mitigate further losses and support growth, given the bank's weak
profitability. In 2019, T-Bank received the equivalent of USD90
million of core equity (USD30 million of which represented
conversion from additional Tier 1 capital).

T-Bank is fully funded by customer deposits (1H20: nearly 100% of
total funding), a high 54% of which is in FC (sector: 50%).
Consequently, it has no FC wholesale funding exposure. The bank's
FC liquidity position is generally moderate and additional funding
support comes from its foreign-bank parents. Nevertheless, FC
liquidity could come under pressure from material deposit outflows,
if not offset by shareholder support.

RATING SENSITIVITIES

IDRS, SR AND VR

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

The bank's IDRs and SR could be downgraded on a reduction in the
ability or propensity of the parent banks to support their Turkish
investment. The ratings could also be downgraded if the bank does
not receive sufficient and timely capital support in case of
further material weakening in asset quality or performance.

The bank's ratings are also sensitive to a change in Fitch's view
of government intervention risk in the banking sector.

The VR is sensitive to marked deterioration in the operating
environment and therefore to the economic and financial market
fallout of the pandemic, given the negative implications for the
bank's financial profile.

The bank's VR could be downgraded due to material deterioration of
asset quality leading to significant pressure on the bank's capital
position, or a weakening of its FC liquidity due to deposit
outflows, if not offset by shareholder support.

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

The Outlook on the bank's IDRs could be revised to Stable in case
of a similar action on Arab Bank.

An upgrade of the bank's ratings is unlikely in the near term given
the Negative Outlooks.

NATIONAL RATING

The National Rating is sensitive to changes in the bank's LTLC IDR
and also in its relative creditworthiness to other Turkish
issuers'.

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

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



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

CANTERBURY FINANCE 1: Fitch Affirm BBsf Rating on 2 Tranches
------------------------------------------------------------
Fitch Ratings has affirmed Canterbury Finance No 1 PLC (CF1) and
Canterbury Finance No 2 PLC (CF2) and removed 10 tranches from
Rating Watch Negative (RWN).

RATING ACTIONS

Canterbury Finance No.1 PLC

Class A1 XS1876157048; LT AAAsf Affirmed; previously AAAsf

Class A2 XS2020619230; LT AAAsf Affirmed; previously AAAsf

Class B XS1876157394; LT AAsf Affirmed; previously AAsf

Class C XS1876157477; LT Asf Affirmed; previously Asf

Class D XS1876157634; LT BBBsf Affirmed; previously BBBsf

Class E XS1876157717; LT BBsf Affirmed; previously BBsf

Class F XS1876157980; LT BBsf Affirmed; previously BBsf

Class X XS1876158012; LT B+sf Affirmed; previously B+sf

Canterbury Finance No.2 PLC

Class A1 XS2133480199; LT AAAsf Affirmed; previously AAAsf

Class A2 XS2133481080; LT AAAsf Affirmed; previously AAAsf

Class B XS2133483458; LT AAsf Affirmed; previously AAsf

Class C XS2133483706; LT Asf Affirmed; previously Asf

Class D XS2133483888; LT BBBsf Affirmed; previously BBBsf

Class E XS2133483961; LT BB+sf Affirmed; previously BB+sf

Class F XS2133484001; LT BB+sf Affirmed; previously BB+sf

Class X XS2133484340; LT Bsf Affirmed; previously Bsf

TRANSACTION SUMMARY

The transactions feature static securitisations of buy-to-let (BTL)
mortgages originated by OneSavings Bank PLC (OSB), trading under
its Kent Reliance brand, in England and Wales. The loans are
serviced by OSB via its UK-based staff and offshore team.

KEY RATING DRIVERS

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 related containment measures. As a result,
Fitch applied coronavirus assumptions to the mortgage portfolios.

The combined application of revised 'Bsf' representative pool
weighted average foreclosure frequency (WAFF), revised rating
multiples and arrears adjustment resulted in a multiple to the
current FF assumptions of about 1.4x at 'Bsf' and 1.1x at 'AAAsf'.
The updated assumptions are more modest for higher rating levels as
the corresponding rating assumptions are already meant to withstand
more severe shocks.

Off RWN

The affected classes have been removed from RWN, where they were
placed in April in response to the coronavirus outbreak.

The class C and below notes of CF1 and CF2 were placed on RWN to
reflect Fitch's weaker asset performance outlook. Fitch has
analysed these transactions under the alternative coronavirus
assumptions (see EMEA RMBS: Criteria Assumptions Updated due to
Impact of the Coronavirus Pandemic) and considered the notes
sufficiently robust to affirm their ratings.

Performance in Line with Expectations

The level of loans in 0-1 months arrears have picked up in recent
months, while arrears of more than two months and three months
remain low, like the levels observed in the wider UK BTL sector.
The higher recent arrears level is in line with the overall
expectation for generalised increase in arrears for borrowers not
resuming regular payments due to the economic impact of the
coronavirus pandemic and related containment measures.

Credit enhancement for the class A notes has increased to 19.8% and
19.3% from 17% and 18.5% at cloaing for CF1 and CF2, respectively.
This is a result of the sequential note pay down and the
non-amortising reserve fund established at closing. This has
resulted in increased credit support available to the notes,
contributing to the affirmations.

Limited Impact of Payment Holidays

Borrowers on payment holiday in CF1 and CF2 represented a low
proportion of the portfolio balance as of August 2020. For this
reason, Fitch did not apply any stress to payment holidays in its
cash-flow analysis and does not view payment holidays as a
liquidity risk in these transactions.

Strong Liquidity Coverage

The transactions have a non-amortising general reserve fund (GRF),
which was funded at closing to 1.5% of the class A1 to class F
notes' balance at issuance. The GRF is available to provide
liquidity and credit support to the class A1 to F notes. Fitch has
tested the ability of the GRF to cover senior fees, net swap
payments and class A to F interest under various interest rate
scenarios and found that payment interruption risk is mitigated for
both transactions.

Collateral and Notes Balance Mismatch

Fitch has noticed discrepancies between note amounts and mortgage
portfolio amounts for both transactions since 2Q20. Fitch has been
informed this is due to reconciliations in the reporting of
periodic loan repurchases and thus Fitch assumed the collateral
balance to be equal to the notes' balance.

RATING SENSITIVITIES

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

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 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 action 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.

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 assumed a 15% increase in WAFF and
a 15% decrease in WARR. The results indicate an adverse rating
impact of up to four notches in CF1 and up to three notches in
CF2.

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 FF of 15% and an increase in
the RR of 15%, implying upgrades of up to two notches for the
mezzanine and junior 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 pool
and the transaction. 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.

Prior to the transactions' closing, Fitch reviewed the results of a
third-party assessment conducted on the asset portfolio information
and concluded that there were no findings that affected the rating
analysis.

Prior to the transactions' closing, Fitch conducted a review of a
small targeted sample of Paragon's origination files and found the
information contained in the reviewed files to be adequately
consistent with the originator's policies and practices and the
other information provided to the agency about the asset
portfolios.

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

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

CURIUM BIDCO: Moody's Cuts Corp Family Rating to B3, Outlook Stable
-------------------------------------------------------------------
Moody's Investors Service downgraded nuclear radiopharmaceuticals
provider Curium Bidco S.a r.l.'s corporate family rating to B3 from
B2 and its probability of default rating to B3-PD from B2-PD. The
outlook remains stable.

The rating action follows the launch of a EUR575 million equivalent
new debt financing, including EUR495 million of additional term
loans and a EUR80 million upsize to the existing revolving credit
facility (RCF). The proceeds from the new facilities will fund
CapVest's secondary buyout of the business through new investment
vehicles and pay for the transaction fees and expenses.

The rating actions primarily reflect the following factors:

  -- Material increase in Moody's-adjusted leverage toward 9.0x in
2020 as a result of the new capital structure

  -- Reduced projected free cash flow generation but adequate
liquidity

  -- Degree of business risk persists, in particular with regards
to ESG factors

Concurrently, Moody's has affirmed the B2 instrument ratings on
Curium Bidco S.a r.l.'s existing EUR739-million equivalent senior
secured first lien term loans and pari passu ranking EUR120 million
RCF. The rating agency has also assigned B2 instrument ratings to
Curium Bidco S.a r.l.'s EUR220 million equivalent senior secured
first lien term loan add-on and EUR80 million RCF add-on. Moody's
also assigned a Caa2 instrument rating to Curium Bidco S.a r.l.'s
new EUR275-million equivalent senior secured second lien term
loan.

RATINGS RATIONALE

Curium's B3 CFR reflects first and foremost its very elevated
Moody's adjusted gross debt/EBITDA of 8.6x at the end of June 2020,
pro forma for the new debt structure. The group's CFR also
incorporates ESG risks including (1) social risks relating to
non-compliance across multiple proof points given the highly
regulated nature of the group's activities and relating to supply
in light of the long and complex chain, (2) governance risks
pertaining to the aggressive financial policy, including the use of
PIK debt outside the restricted group which creates structural
complexity and (3) a degree of environmental risk reflected in the
site decommissioning and dismantling provisions on the balance
sheet, which, although long-dated, increase over time. In addition,
Curium's acquisitive stance means there is risk that the group will
delever more slowly than Moody's projects because of potential
debt-funded acquisitions.

Curium's credit profile is supported by (1) the growing underlying
market for diagnostic radiopharmaceuticals in which the group holds
a solid market share globally, (2) its scale and vertical
integration in the value chain enhancing the supply reliability of
the group toward its customers, (3) the high barriers to entry
created by multiple regulations spanning nuclear, pharmaceutical
and transportation, (4) multi-year US contracts with share or
volume commitments providing a degree of revenue visibility and (5)
Curium's track record of positive free cash flow (FCF) generation.

Moody's estimates that the contemplated debt additions supporting
CapVest's buyout of Curium will increase the group's adjusted
leverage to 8.6x pro forma from 6.1x as of 30 June 2020. Moody's
leverage calculation incorporates a lower EBITDA than management,
principally because (i) it reverses the capitalisation of R&D costs
and (ii) takes into account the extended use of exceptional items
historically by considering some of them as recurring expenses,
including sponsor monitoring fees, ongoing restructuring and
severance costs and various project costs. Moody's adjusted debt
includes the aforementioned environmental provisions, drawings
under the factoring lines and the group's defined pension benefit
obligation.

Leverage will peak in 2020 because of a moderate contraction in
Curium's EBITDA induced by coronavirus. While many of the company's
customer imaging centres have remained opened during the pandemic,
patient volumes dropped, especially in the second quarter, as
elective procedures were deferred to focus on the coronavirus
response and patients were reluctant to visit healthcare
facilities. As a result, organic sales volumes will decline in
2020, mitigated by contractual price increases resulting in an
organic sales decline in the mid-single digits in percentage terms.
Moody's expects that the like-for-like contraction in Curium's
EBITDA will exceed 10%, however, owing to the group's high fixed
cost base and despite cost savings of over EUR10 million versus
2019.

During the pandemic, Curium's supply chain has held up well despite
lockdown measures and significantly reduced air traffic. Employees
at sites along the group's supply chain have been allowed to work
while hygiene and safety procedures in place prevented any virus
outbreak, meaning that Curium has had continued access to
irradiation services while its own Moly processing and generator
manufacturing lines have remained fully operational. Hardly any
Moly deliveries were missed as shipments were shifted to
alternative flights and routes and to road.

Moody's believes that underlying demand for the group's products
remains solid and will support deleveraging from 2021 while the
rating agency expects sequential improvements in trading conditions
from 2020's second quarter trough. In addition to the recovery, the
launch of generic lung scintigraphy product Pulmotech MAA earlier
this year, as well as the recent launch of Detectnet for
neuroendocrine tumours, both in the US, will benefit the group's
earnings growth. 2021 EBITDA will be higher than 2019 on a
like-for-like basis and lead to a reduction in Moody's-adjusted
leverage to around 7.0x.

Despite Curium's history of positive FCF generation, Moody's
forecasts that it will be marginally negative in 2020 as the
reduction in interest costs and non-recurring cash items will be
outweighed by (i) the reduction in EBITDA, (ii) increased working
capital use and (iii) significantly higher growth capex to support
new product launches and capacity expansions in the next 18 months.
The rating agency expects FCF in 2021 to move towards EUR50 million
on the back of EBITDA growth and a normalisation of working
capital, even if the interest bill will materially increase as a
result of higher debt. Downside risks on Moody's FCF forecast
principally include non-recurring items as well as a lack of
reduction in growth capex, which can be lumpy and remains essential
to drive future EBITDA improvement.

Curium's liquidity profile is adequate. The group had EUR60 million
of cash on balance sheet as of 30 June 2020. Curium's liquidity
will also benefit from access to a senior secured first lien RCF
upsized to EUR200 million, of which EUR176 million will be undrawn
at close and which matures in 2025. The RCF contains a net senior
leverage springing covenant tested if drawings reach or exceed 40%
of facility commitments. Should it be tested, Moody's expects that
Curium would retain ample headroom against the test level of
10.15x.

The B2 ratings on the EUR200 million senior secured first lien RCF
and EUR959 million equivalent secured first lien term loans, one
notch above the CFR, reflect their large share of the group's debt
structure and the degree of loss absorption offered by the new
EUR275 million second lien facility ranking behind.

RATING OUTLOOK

The stable outlook reflects Moody's expectation that over the next
12-18 months the group will (1) grow revenue and Moody's adjusted
EBITDA, with continuously high contract renewal rates and new
product launches more than offsetting the sales decline in older
products, (2) delever to around 7.0x on a Moody's adjusted basis,
(3) generate Moody's adjusted free cash flow (after exceptionals
and interest) of at least EUR40 - 50 million per annum whilst
maintaining adequate liquidity and (4) not make any shareholder
distributions or material debt-funded acquisitions.

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

Curium's ratings could experience positive pressure should the
group (1) continue to build a track record of organic growth as a
consolidated business, supported by a longer history of successful
product launches and consolidated audited accounts, coupled with
(2) Moody's adjusted leverage sustainably reduced below 6.0x and,
(3) FCF/debt rising to well above 5%.

Curium's ratings could experience downward pressure if (1) any of
the conditions for the stable outlook were not to be met or, (2)
Moody's adjusted leverage failed to decline to below 7.5x or, (3)
FCF generation were to weaken towards zero on a sustainable basis
or the liquidity position deteriorated.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Pharmaceutical
Industry published in June 2017.

LIST OF AFFECTED RATINGS:

Downgrades:

Issuer: Curium Bidco S.a.r.l

Probability of Default Rating, Downgraded to B3-PD from B2-PD

LT Corporate Family Rating, Downgraded to B3 from B2

Affirmations:

Issuer: Curium Bidco S.a.r.l

Senior Secured Bank Credit Facility, Affirmed B2

Assignments:

Issuer: Curium Bidco S.a.r.l

Senior Secured Bank Credit Facility, Assigned B2

Senior Secured Bank Credit Facility, Assigned Caa2

Outlook Actions:

Issuer: Curium Bidco S.a.r.l

Outlook, Remains Stable

COMPANY PROFILE

Curium, dual-headquartered in the UK and France, is a global
producer and supplier of nuclear medicine and radiopharmaceutical
products to around 6,000 imaging centres, primarily in Europe and
the US. The group's radioactive products and tracers enhance the
outcome of diagnostic imaging in oncology and cardiology (together
representing around 60% of revenue) as well as renal, lung and bone
diseases.


ENQUEST PLC: S&P Alters Outlook to Stable & Affirms 'CCC+' ICR
--------------------------------------------------------------
S&P Global Ratings revised its outlook on U.K.-based oil and gas
producer EnQuest PLC to stable from negative, and affirmed the
'CCC+' rating on EnQuest and its senior unsecured notes.

The stable outlook balances its expectation of positive FOCF in
2020-2021 with EnQuest's still-uncertain liquidity position.

S&P said, "Reduced costs and our expectation of supportive oil
prices have decreased default risks in the next few months.
Despite our previous concerns regarding cash flow generation,
EnQuest managed to cut costs and further reduced net debt to $1,351
million at June 30, 2020, from $1,413 million at Dec. 31, 2019. The
cost reduction was primarily a result of stopping production at
higher cost fields and cancelling capital expenditure (capex), but
also due to workforce management and reduction in discretionary
spending. As more production comes offline, EnQuest expects costs
will drop further, resulting in free cash flow breakeven of $33 per
barrel (/bbl) in 2020 and $27/bbl in 2021. Given our latest Brent
oil price assumption of $40/bbl for the rest of 2020, and $50/bbl
in 2021, we expect that EnQuest will continue to gradually reduce
net debt thanks to positive FOCF. We therefore believe default risk
over the next months has reduced, since we expect liquidity to be
more manageable and leverage to moderate.

"Liquidity will continue to be challenged until the credit facility
due in October 2021 is refinanced.   We believe refinancing is the
key risk for EnQuest, given the maturity of its $440 million credit
facility in October 2021. Under our base case, we expect adjusted
EBITDA of about $525 million-$600 million in 2020 and $650
million-$700 million in 2021. We estimate, this will translate in
the cash flow available for the credit facility of at least $150
million-$250 million, starting from July 2020. This should help
EnQuest be in a position to repay most of the facility, but it
would still likely need to refinance at least some portion. We
therefore continue to see the risk that from Jan. 1, 2021, our
12-month forward liquidity estimate could point to a shortfall if
the facility is not refinanced. We understand the company is
confident that it would be able to refinance the facility, and is
considering several options, including new bank debt and
prefinancing transaction. Given any transaction remains uncertain,
especially in such volatile market conditions, we cannot factor it
in our base case.

"Lower capex helps to maintain sustainable leverage, but it might
weaken our view of the business if production reduces
significantly.  The company's efforts to reduce debt combined with
our expectation of recovery in the oil price should translate into
reduced leverage over time. We estimate adjusted debt to EBITDA
will be close to 5.5x in 2020, but will reduce toward 4x in 2021.
We see this leverage as sustainable and absent any liquidity
concerns it could support a higher rating. That said, EnQuest has
halved its 2020 capex compared with 2019, and we expect a further
reduction in 2021. While we assume EnQuest will produce
50,000–55,000 barrels of oil equivalent per day (boepd) in 2021,
we believe that this low investment will have longer-term
implications." The company will have to replenish its reserve base
organically or inorganically. This may lead to higher leverage,
which could hamper refinancing the bonds due 2023. Any future
rating upside will therefore be subject to a sustainable reserve
and production profile going forward.

The risk of a distressed debt exchanged is less pronounced in the
short term, but is an important consideration.  EnQuest's bonds are
trading at a significant discount to par. S&P said, "If the company
used this opportunity to announce the purchase of the bonds and we
thought that investors were receiving less than the original
promise, we could see this as a selective default, and lower the
rating accordingly. We anticipate that EnQuest will try to preserve
cash through the downturn and so would not engage in bond buybacks
(which also need to be agreed to by the banks)."

S&P said, "The stable outlook balances our expectation of positive
FOCF in 2020-2021 with EnQuest's still-uncertain liquidity
position. As the maturity of its $440 million credit facility
approaches in October 2021, liquidity headroom will be under
continuous pressure. Under our base case, we expect refinancing
needs will be limited but this remains subject to an increase in
oil prices, supported by ongoing economic recoveries and oil supply
restrictions."

Downside scenario

S&P said, "We could downgrade EnQuest if it had acute liquidity
pressure. Such a scenario could materialize if, as of Jan. 1, 2021,
our 12-month forward liquidity estimate pointed to a significant
shortfall, which could be the case if the oil price decreased
materially or if the credit facility were not refinanced.

"Alternatively, we could also lower the rating if the company
bought bonds at a significant discount or announced a distressed
exchange."

Upside scenario

S&P could raise the rating to 'B-' if EnQuest:

-- Repaid or refinanced the credit facility due October 2021,
    eliminating liquidity pressure; and

-- Reduced adjusted debt to EBITDA toward 4.5x and below.


GOURMET BURGER: Bought Out of Administration by Boparan
-------------------------------------------------------
BBC News reports that restaurant chain Gourmet Burger Kitchen has
been bought out of administration by Boparan Restaurant Group.

According to BBC, the deal includes 35 sites and 669 jobs. However,
26 restaurants and 362 jobs will be lost.

GBK was sold out of administration by accountancy firm Deloitte,
BBC recounts.

"As with a number of dining businesses, the broader challenges
facing 'bricks and mortar' operators, combined with the effect of
the lockdown, resulted in a deterioration in financial performance
and a material funding requirement," BBC quotes Gavin Maher, Joint
Administrator at Deloitte, as saying.

The company has been in trouble since November 2018 when it entered
a Company Voluntary Arrangement, BBC notes.

Deloitte said since then, the coronavirus lockdown has hit sales,
BBC relates.


ROLLS-ROYCE PLC: S&P Gives BB- Issuer Rating, Rates Unsec. Notes BB
-------------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue rating and '3' recovery
rating to the proposed senior unsecured notes to be issued by
Rolls-Royce PLC (BB-/Watch Neg/B). The proposed notes are on
CreditWatch with negative implications as are the group's existing
debt instruments. S&P expects Rolls-Royce to use the proceeds of
its benchmark-sized bond to bolster liquidity and repay some debt
maturing in the next 12 months.

As the COVID-19 pandemic exacerbates economic instability,
liquidity has become critical for all affected companies.
Rolls-Royce's treasury team has been taking multiple actions
through 2020 to bolster its liquidity position and its ability to
weather short-term uncertainty. This proposed benchmark-sized
issuance is part of the recently announced GBP5 billion
recapitalization package.

S&P said, "In our view, successful completion of all of the
measures planned under the proposed GBP5 billion recapitalization
package, including this benchmark bond issuance, will boost
Rolls-Royce's liquidity. Under our current base case, absent the
GBP5 billion package, we expect Rolls-Royce's S&P Global
Ratings-adjusted debt to rise to more than GBP6.5 billion by Dec.
31, 2020, and more than GBP7.5 billion in 2021, from about GBP3.1
billion on Dec. 31, 2019." If the GBP5 billion recapitalization
package is completed as planned, however, the speed of the increase
would slow materially. Adjusted debt would rise to about GBP4.6
billion in 2020 and about GBP5.8 billion in 2021.

However, flying hours are still well below the 2019 level, which
has resulted in materially reduced demand from airlines for new
aircraft. This, in turn, weighs on original equipment manufacturer
(OEM) production rates. If the COVID-19 pandemic spreads again in a
second wave, the airline and civil aerospace industries could lose
the slight progress they have made. Rolls-Royce's cash flow
generation in 2020--and to a lesser extent, in 2021--has been and
will be deeply negative. Given the very tough trading environment,
management's actions to reduce the business in line with lower
demand from airline and civil aerospace OEMs has been vital.
Management has taken action to lower the cost base and headcount,
and has rationalized its production footprint to improve margins.
Ultimately, it aims to return to positive free cash flow
generation. This will be crucial to the long-term trajectory of the
rating.

The recapitalization package includes:

-- The GBP2 billion rights issue;

-- This proposed benchmark bond offering, which is intended to
    be at least GBP1.5 billion;

-- Commitments agreed for a new two-year term loan facility of
    GBP1 billion; and

-- Support in principal from United Kingdom Export Finance (UKEF)
    for an extension of the existing 80% guarantee, to back a
    potential loan increase of up to GBP1 billion.

S&P Global Ratings acknowledges a high degree of uncertainty about
the evolution of the coronavirus pandemic. The current consensus
among health experts is that COVID-19 will remain a threat until a
vaccine or effective treatment becomes widely available, which
could be around mid-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."

Issue Ratings - Recovery Analysis

Key analytical factors

-- Pro forma the proposed new benchmark bond issuance, the issue
    rating on Rolls-Royce's senior unsecured debt remains 'BB-'.
    The recovery rating is unchanged at '3', and is constrained
    by the unsecured nature of the revolving credit facilities
    (RCFs) and notes.

-- In S&P's recovery waterfall, it now excludes the GBP1.9
    billion RCF maturing October 2021 because it matures in less
    than 12 months and management has indicated that it will be
    cancelled when the rights issue settles.

-- S&P includes in its waterfall the GBP1 billon two-year term
    loan; the GBP2 billion UKEF-backed loan and this proposed
    new benchmark bond issuance. S&P also notes that Rolls-Royce
    has indicated that if the proposed benchmark bond is upsized,
    it may use the additional proceeds to lower the amount of
    the GBP1 billion extension to the GBP2 billion UKEF facility.

-- S&P therefore expect about 60% recovery in the event of a
    payment default (rounded estimate).

-- S&P's default scenario assumes a continued recession, coupled
    with ongoing deterioration in the global aviation industry
    and in Rolls-Royce's other core markets and increasing
    competitive pressure. S&P thinks this would lead to a steady
    decline in revenue, profitability, and cash flow, and weaker
    liquidity.

-- S&P values the group on a going-concern basis. S&P believes
    that if the group were to default, it would still have a
    viable business model because of continued demand for its
    products and services, its established position in the
    manufacturing supply chain, and strong market shares.
    For this reason, S&expect the group would reorganize and
    emerge with significant value.

Simulated default assumptions

-- Year of default: 2025
-- Jurisdiction: U.K.

Simplified waterfall

-- Emergence EBITDA: GBP1.33 billion
    --Maintenance capex is assumed to be 4% of revenue
    --Cyclical adjustment of 10% (standard for the sector)
-- EBITDA multiple: 5.5x
-- Gross recovery value: GBP7.3 billion
-- Net recovery value for waterfall after admin. expenses (5%):
     GBP6.95 billion
-- Priority claims: None*
-- Value available for senior unsecured claims: GBP6.95 billion
-- Senior unsecured claims: GBP11.4 billion*
-- Recovery range: 50%-70% (rounded estimate: 60%)

All debt amounts include six months' prepetition interest.


WPP PLC: Egan-Jones Lowers Senior Unsecured Ratings to BB-
----------------------------------------------------------
Egan-Jones Ratings Company, on October 5, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by WPP plc to BB- from BBB+.

Headquartered in London, United Kingdom, WPP plc operates a
communications services group.



                           *********


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

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

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

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