/raid1/www/Hosts/bankrupt/TCREUR_Public/201016.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                          E U R O P E

          Friday, October 16, 2020, Vol. 21, No. 208

                           Headlines



F R A N C E

VEOLIA ENVIRONNEMENT: S&P Assigns 'BB+' Rating on Sub. Hybrid Notes


G E R M A N Y

HAPAG-LLOYD AG: Moody's Hikes CFR to Ba3 & Alters Outlook to Stable


I R E L A N D

BASTILLE EURO 2020-3: S&P Assigns Prelim. B-(sf) Rating on F Notes
HENLEY CLO III: Fitch Assigns 'B-(EXP)' Rating to Class F Debt
HENLEY CLO III: S&P Assigns Prelim. B- Rating on Class F Notes


I T A L Y

MONTE DEI PASCHI: Unicredit Sale Inappropriate, 5-Star Mvmt. Says
NEXI SPA: Moody's Affirms 'Ba3' CFR, Outlook Stable


L I T H U A N I A

PLT VII FINANCE: S&P Assigns 'B' Ratings, Outlook Stable


R U S S I A

CB PFC-BANK: Declared Bankrupt by Moscow Arbitration Court


S W I T Z E R L A N D

PEACH PROPERTY: Fitch Upgrades LT Issuer Default Rating to BB-
PEACH PROPERTY: Moody's Affirms Ba3 CFR, Outlook Stable
PEACH PROPERTY: S&P Rates EUR300MM Unsec. Notes 'BB-'
SPORTRADAR AG: S&P Assigns Prelim. 'B' LongTerm ICR, Outlook Stable
SPORTRADAR HOLDING: Moody's Assigns 'B2' CFR, Outlook Stable

SPORTRADAR MANAGEMENT: Fitch Gives B LongTerm IDR, Outlook Stable
[*] SWITZERLAND: Won't Extend Emergency Company Bankruptcy Steps


T U R K E Y

EMLAK KONUR: Fitch Affirms BB LongTerm IDRs, Outlook Negative


U N I T E D   K I N G D O M

ASPINAL OF LONDON: Creditors Back Company Voluntary Arrangement
CAPRI ACQUISITIONS: S&P Withdraws 'B-' Rating on Sr. Sec. Debts
DELTIC GROUP: Seeks Emergency Buyer to Avert Potential Collapse
FONTWELL SECURITIES 2016: Fitch Affirms B+ Rating on 3 Tranches
KONDOR FINANCE: Fitch Assigns B(EXP) Rating on New Unsec. Notes

POUNDSTRETCHER: Plans to Open 50 New Stores Next Year Amid CVA
RMAC SECURITIES 2006-NS4: Fitch Affirms BB+ on Class B1c Debt
WEIR GROUP: S&P Affirms 'BB+/B' ICRs on Oil and Gas Division Sale


X X X X X X X X

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

                           - - - - -


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F R A N C E
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VEOLIA ENVIRONNEMENT: S&P Assigns 'BB+' Rating on Sub. Hybrid Notes
-------------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' long-term issue rating to the
proposed, undated, optionally deferrable, and deeply subordinated
hybrid capital securities to be issued by France-based vertically
integrated utility Veolia Environnement S.A. (BBB/Stable/A-2).

S&P considers the proposed securities to have intermediate equity
content until their first call dates (5.5 years and 8.5 years after
issuance), because they meet its hybrid capital criteria in terms
of their subordination, permanence, and optional deferability
during this period.

S&P arrives at its 'BB+' issue rating on the proposed securities by
notching down from our 'BBB' long-term issuer credit rating (ICR)
on Veolia. The two-notch differential between the issue rating and
the ICR reflects our notching methodology, which calls for:

-- A one-notch deduction for subordination because the ICR on
Veolia is investment grade (that is, 'BBB-' or above); and

-- An additional one-notch deduction for payment flexibility to
reflect the fact that the deferral of interest is optional and that
the ICR is investment grade.

S&P said, "The notching of the proposed securities reflects our
view that there is a relatively low likelihood that Veolia will
defer interest. Should our view change, we may significantly
increase the number of downward notches that we apply to the issue
rating, and more quickly than we might take a rating action on the
ICR.

"In addition, in view of what we see as the intermediate equity
content of the proposed securities, we allocate 50% of the related
payments on these securities as a fixed charge and 50% as
equivalent to a common dividend, in line with our hybrid capital
criteria. The 50% treatment (of principal and accrued interest)
also applies to our adjustment of debt. We note hybrids represent
about 10% of Veolia's total capital, and it would be lower should
Veolia launch a full takeover offer on Suez."

Although the securities are perpetual, they can be called at any
time for tax, gross-up, rating, or accounting events. Furthermore,
Veolia can redeem them for cash as of the first call dates, and
every five years thereafter. If any of these events occur, the
company intends to replace the instrument, although it is not
obliged to do so. As per its statement of intent, we understand
that Veolia's capital strategy is to strengthen its balance sheet
following the announced acquisition and that hybrids play a key
role in this financial policy. S&P said, "We note that Veolia
redeemed hybrids in the past without replacing them and currently
does not have any hybrids. We believe that financial policy has
evolved since then though, notably in the context of the
acquisition of the 29.9% stake in Suez, which we consider a
material development for the group. Should we perceive a change in
the commitment to the hybrids, we would consider the proposed
securities to have no equity content compared with intermediate
equity content currently."

The interest to be paid on the proposed securities will increase by
25 basis points (bps) from 2026 for the 5.5 year tranche and from
2029 for the 8.5 year tranche with a further 75-basis-point
increase five years later. S&P considers the cumulative 100 bps as
a material step-up, which is currently unmitigated by any
commitment to replace the instrument at that time. This step-up
provides an incentive for Veolia to redeem the instrument on the
call date.

KEY FACTORS IN S&P's ASSESSMENT OF THE INSTRUMENT'S DEFERABILITY

S&P said, "In our view, Veolia's option to defer payment of
interest on the proposed securities is discretionary. This means
that Veolia may elect not to pay accrued interest on an interest
payment date because it has no obligation to do so. However, any
outstanding deferred interest payment would have to be settled in
cash if Veolia declares or pays an equity dividend or interest on
equal-ranking securities, and/or if Veolia or its subsidiaries
redeem or repurchase shares or equal-ranking securities. We see
this as a negative factor in our assessment of equity content. That
said, this condition remains in line with our rating methodology
because once the issuer has settled the deferred amount, it can
choose to defer payment on the next interest payment date."

Veolia retains the option to defer coupons throughout the
instrument's life. The deferred interest on the proposed securities
is cash-cumulative, and will ultimately be settled in cash.

KEY FACTORS IN S&P's ASSESSMENT OF THE INSTRUMENT'S SUBORDINATION

The proposed securities (and coupons) are intended to constitute
direct, unsecured, and deeply subordinated obligations of Veolia.
The proposed securities rank junior to all unsubordinated
obligations, ordinary subordinated obligations, and prĂȘts
participatifs, and are only senior to common and preferred shares.
As per its criteria, however, S&P only notch the proposed notes
down by one notch despite their deep subordination.




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

HAPAG-LLOYD AG: Moody's Hikes CFR to Ba3 & Alters Outlook to Stable
-------------------------------------------------------------------
Moody's Investors Service upgraded the corporate family rating of
Hapag-Lloyd AG to Ba3 from B1, its probability of default rating
(PDR) to Ba3-PD from B1-PD as well as the senior unsecured rating
to B2 from B3. The outlook on all ratings changed to stable from
negative.

The rating action reflects that the negative ratings pressure on
the sector and on the company that Moody's anticipated as a
consequence of COVID-19 has not materialized. Instead,
Hapag-Lloyd's profitability and credit metrics have continued to
strengthen during the first half of 2020, supported by a very
strong performance amidst the pandemic by the container shipping
industry as well as continued efficiency improvements. The rating
action also incorporates the company's commitment to a financial
policy focused on longer term deleveraging of the capital
structure, as evidenced by significant debt reduction efforts over
the last years.

RATINGS RATIONALE

The container shipping market has performed very strongly amidst
the pandemic, where all carriers have exhibited discipline in terms
of adjusting capacity to decreased demand during the first half of
2020. Moody's understands volumes during the third quarter have
been strong, sending up freight rates higher than at the start of
the year. Coupled with low bunker prices, carriers have recorded
double digit growth rates in EBITDA during the first half of 2020
compared to the corresponding period in 2019. Considering how the
industry is currently behaving, coupled with continued low bunker
prices and relatively high freight rates and strong volumes during
Q3, Moody's believes the second half will be even better in terms
of operating performance.

Notwithstanding currently strong market fundamentals, the rating
action is based on Hapag-Lloyd's efforts to continue to strengthen
its balance sheet as well as continuously improving efficiency.
This has been a continuous development since the merger with UASC
was completed in 2017, from where reported financial debt has been
decreased by around EUR1.0 billion until end of Q2 2020. During the
same time period, Moody's-adjusted debt / EBITDA has decreased to
3.5x for the last twelve months ending June 2020 from 5.3x end of
2017. Moody's also notes as positive the fact that free cash flow
has been positive and growing every year since 2017; a trend
Moody's foresees will continue over the next couple of years absent
any larger capex plans.

The rating action balances the positives with still present
downside risks, such as the looming threat of additional lockdowns,
increased trade tension between the US and China as well as a
deterioration in capacity discipline by carriers. In addition,
there has not been a long track record of the recently improved
performance in the container shipping industry, which still needs
to prove to be sustainable for the longer term. That being said,
Hapag-Lloyd's capital structure and credit ratios are strong enough
to have cushion for these types of risks.

RATIONALE FOR STABLE OUTLOOK

The stable outlook assumes that recent performance improvements in
the industry and Hapag-Lloyd's disciplined actions to improve its
capital structure will be sustained, leading to Moody's-adjusted
debt / EBITDA of 2.7x-3.1x and EBIT margin of 6-8% for the next
12-18 months.

LIQUIDITY PROFILE

Moody's views Hapag-Lloyd's liquidity as good. The company had $1.7
billion of cash and access to $585 million in revolving credit
facilities, of which $400 had been drawn as of June 30, 2020. In
addition, another $290 million is available in committed capex
financing. Given the high volatility typical for container
shipping, the company's covenants include minimum equity and
minimum liquidity, but no leverage or coverage ratios. Hapag-Lloyd
has a number of unencumbered vessels and containers that could be
pledged to raise additional liquidity. Although maintenance capex
needs are limited, Moody's notes that the company is contemplating
ordering new ultra large container vessels, however nothing has yet
been signed and Moody's assumes this will be financed with a
combination of cash and debt. For the next 12 months, the company
has around $870 million in debt coming due, which in Moody's base
case could be retired altogether given expectations of strong free
cash flow.

ESG Considerations

Moody's understands that Hapag-Lloyd's efforts to deleverage the
capital structure following the merger with UASC in 2017 and the
continued efforts to do so further, is the result of a strategic
decision fully backed by the company's owners. Moody's views this
as clearly positive under its corporate governance framework.

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

An upgrade could be possible with debt / EBITDA expected to remain
below 3.0x and an FFO Interest Coverage above 4.5x through the
cycle. Furthermore, an upgrade would also require a high single
digit EBIT-margin in percentage terms. In addition, a prerequisite
for positive ratings pressure is that the company maintains the
good liquidity profile at all times.

Negative ratings pressure could arise if the company's debt/EBITDA
ratio is expected to exceed 4.0x and FFO interest coverage to
decrease below 4.0x on a sustained basis. Additionally, negative
free cash flow and a weakened liquidity profile would cause
negative pressure on ratings.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Shipping
Industry published in December 2017.

LIST OF AFFECTED RATINGS:

Upgrades:

Issuer: Hapag-Lloyd AG

Probability of Default Rating, Upgraded to Ba3-PD from B1-PD

LT Corporate Family Rating, Upgraded to Ba3 from B1

Senior Unsecured Regular Bond/Debenture, Upgraded to B2 from B3

Outlook Actions:

Issuer: Hapag-Lloyd AG

Outlook, Changed To Stable From Negative

COMPANY PROFILE

Hapag-Lloyd AG, headquartered in Hamburg, Germany, is the
fifth-largest container liner globally based on market share by
volume. As of June 30, 2020, it operated a fleet comprising 239
ships, including 112 owned and 127 chartered-in vessels. For the
last twelve months ending June 30, 2020, the company reported
revenue of $14.1 billion and EBIT of $1.0 billion. Hapag-Lloyd was
established in 1970 as a result of the merger of Hapag (1847) and
North German Lloyd (1857).




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I R E L A N D
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BASTILLE EURO 2020-3: S&P Assigns Prelim. B-(sf) Rating on F Notes
------------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
Bastille Euro CLO 2020-3 DAC's class A, B-1, B-2, C, D, E, and F
notes. At closing, the issuer will also issue unrated subordinated
notes.

Under the transaction documents, the rated notes will pay quarterly
interest unless there is a frequency switch event. Following this,
the notes will switch to semiannual payment.

The portfolio's reinvestment period will end approximately 3.8
years after closing, and the portfolio's maximum average maturity
date will be approximately 13.2 years after closing.

The preliminary ratings assigned to the notes reflect S&P's
assessment of:

-- The diversified collateral pool, which consists primarily of
broadly syndicated speculative-grade senior secured term loans and
bonds that are governed by collateral quality tests.

-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.

-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.

  Portfolio Benchmarks
                                                       Current
  S&P Global Ratings weighted-average rating factor   2,691.84
  Default rate dispersion                               574.15
  Weighted-average life (years)                           5.10
  Obligor diversity measure                              85.16
  Industry diversity measure                             14.78
  Regional diversity measure                              1.45
  
  Transaction Key Metrics
                                                       Current
  Total par amount (mil. EUR)                           300.00
  Defaulted assets (mil. EUR)                             0.00
  Number of performing obligors                             96
  Portfolio weighted-average rating
   derived from our CDO evaluator                          'B'
  'CCC' category rated assets (%)                         0.83
  'AAA' weighted-average recovery (%)                    36.79
  Weighted-average spread (%)                             3.58
  Covenanted weighted-average coupon (%)                  4.00

Under the transaction documents, the issuer may purchase workout
obligations. This provides the issuer with the ability to invest in
debt and non-debt assets of an existing collateral obligation
offered in connection with a workout, restructuring, or bankruptcy
of the obligation.

The purpose of workout obligations is to maximize recovery value
prospects of the related collateral obligation. While the objective
is positive, it can also lead to par erosion, as additional funds
will be placed with an entity that is under distress or in default.
S&P said, "This may cause greater volatility in our ratings if
these loans' positive effect does not materialize. In our view, the
restrictions on the use of proceeds and the presence of a bucket
for these workout obligations helps to mitigate the risk."

Workout obligations

The issuer may purchase workout obligations using:

Interest proceeds;

Principal proceeds; and/or

Amounts standing to the credit of the supplemental reserve
account.

The issuer may only purchase workout obligations if the following
conditions are satisfied:

The transaction documents limit the CLO's exposure to workout
obligations quarterly, and on a cumulative basis may not exceed 10%
of target par if purchased with principal proceeds, and otherwise
10% of target par if purchased with principal and/or interest
proceeds.

Except for calculation of the par value test numerator, the
principal balance of any workout obligation in all other tests must
be zero.

Workout obligations may only be purchased in connection with an
existing collateral obligation held by the issuer.

Where principal proceeds are used, the obligation ranks pari passu
or senior to the collateral obligation held by the issuer.

At any time a workout obligation satisfies the CLO's eligibility
criteria, it will be considered as a collateral obligation.

Use of interest proceeds

At any time, the issuer may purchase workout obligations using
interest proceeds. As a result, the issuer must ensure that after
taking into account the purchase of any workout obligation the
coverage tests are satisfied, and that it has determined there are
sufficient interest proceeds to pay interest on all notes on the
upcoming payment date.

At the point of purchase, the issuer may determine whether or not
each workout obligation is a principal proceeds (PP) workout
obligation. If it is, then all distributions received from workout
obligations up to carry value in the coverage tests will
irrevocably form part of the issuer's principal account proceeds.

In all other cases, zero credit will be attributed to any workout
obligation. That is, any distributions received from workout
obligations in this instance will flow directly back to the
interest proceeds account.

Solely with respect to PP workout obligations that satisfy most of
the eligibility criteria will a defaulted treatment be afforded in
the CLO's par value tests.

Where the issuer makes no determination in the second scenario
above, then it will consider the workout obligation to be a PP
workout obligation.

Use of supplemental reserve amounts

At any time, the issuer may purchase workout obligations using
amounts standing to the credit of the supplemental reserve
account.

Similar to using interest proceeds above, at the point of purchase,
the issuer may determine whether or not each workout obligation is
a PP workout obligation. If it is a PP workout obligation, then all
distributions received from workout obligations will irrevocably
form part of the issuer's principal account proceeds. In all other
cases, zero credit will be attributed to any workout obligation.
That is, any distributions received from workout obligations in
this instance will flow directly back to the supplemental reserve
account.

Only with respect to PP workout obligations that are debt
obligations that are current on interest and principal payments at
point of purchase and going forward, will a defaulted treatment be
afforded in the CLO's par value tests.

Where the issuer makes no determination in the second scenario
above, then it will consider the workout obligation to be a PP
workout obligation.

Use of principal proceeds

At any time, the issuer may use principal proceeds to purchase
workout obligations, subject to the following conditions being
satisfied:

Any obligation purchased is a debt obligation;

The obligation ranks pari passu or senior to the collateral
obligation held by the issuer;

Each par value test is satisfied;

The workout obligation is not long-dated; and

The par value of each workout obligation exceeds or equates to the
purchase price of the applicable obligation.

Any distributions received from workout obligations in these
instances--including interest proceeds--will form and always remain
as part of the issuer's principal account proceeds.

As with the scenarios highlighted above, where the workout
obligation satisfies most of the eligibility criteria, a defaulted
treatment will be afforded to these obligations in the CLO's par
value tests. In all other cases, zero credit will be afforded at
all times.

S&P said, "Our preliminary ratings reflect our assessment of the
collateral portfolio's credit quality, which has a weighted-average
rating of 'B'. We consider that the portfolio will be
well-diversified on the effective date, primarily comprising
broadly syndicated speculative-grade senior secured term loans and
senior secured bonds. Therefore, we conducted our credit and cash
flow analysis by applying our criteria for corporate cash flow
collateralized debt obligations.

"In our cash flow analysis, we used a EUR300 million par amount,
weighted-average spread of 3.58%, the covenanted weighted-average
coupon of 4.00%, and a weighted-average recovery rate of 36.79% at
the 'AAA' rating level. We applied various cash flow stress
scenarios, using four different default patterns, in conjunction
with different interest rate stress scenarios for each liability
rating category.

"We expect that the transaction's documented counterparty
replacement and remedy mechanisms will adequately mitigate its
exposure to counterparty risk under our current counterparty
criteria.

"Following the application of our structured finance sovereign risk
criteria, we consider the transaction's exposure to country risk to
be limited at the assigned preliminary ratings, as the exposure to
individual sovereigns does not exceed the diversification
thresholds outlined in our criteria.

"At closing, we consider that the transaction's legal structure
will be bankruptcy remote, in line with our legal criteria.

"Our credit and cash flow analysis indicates that the available
credit enhancement for the class B-1, B-2, and D notes could
withstand stresses commensurate with higher rating levels than
those we have assigned. However, as the CLO is still in its
reinvestment phase, during which the transaction's credit risk
profile could deteriorate, we have capped our assigned preliminary
ratings on the notes.

"The class F notes' current cushion is (1.68%). Based on the
portfolio's actual characteristics and additional overlaying
factors, including our long-term corporate default rates and the
class F notes' credit enhancement (6.73%), this class is able to
sustain a steady-state scenario, in accordance with our criteria."

The one-notch uplift (to 'B-') from the model-generated results (of
'CCC+'), reflects several key factors, including:

-- The class F notes' available credit enhancement, which is
generally in the same range as that of other CLOs S&P has rated.

-- S&P's model-generated portfolio default risk for the 'B-'
rating level, which is at 26.24% (for a portfolio with a
weighted-average life of 5.10 years) versus 15.81% if it was to
consider a long-term sustainable default rate of 3.1% for 5.10
years.

Following this analysis, S&P considers that the available credit
enhancement for the class F notes is commensurate with a 'B- (sf)'
rating.

S&P said, "In our view the portfolio is granular in nature, and
well-diversified across obligors, industries, and asset
characteristics when compared to other CLO transactions we have
rated recently. As such, we have not applied any additional
scenario and sensitivity analysis when assigning ratings on any
classes of notes in this transaction."

Until the end of the reinvestment period on Aug. 5, 2024, the
collateral manager can substitute assets in the portfolio for so
long as S&P's CDO Monitor test is maintained or improved in
relation to the initial ratings on the notes. This test looks at
the total amount of losses that the transaction can sustain as
established by the initial cash flows for each rating, and compares
that with the default potential of the current portfolio plus par
losses to date. As a result, until the end of the reinvestment
period, the collateral manager may, through trading, deteriorate
the transaction's current risk profile, as long as the initial
ratings are maintained.

In light of the rapidly shifting credit dynamics within CLO
portfolios due to continuing rating actions (downgrades,
CreditWatch placements, and outlook changes) on speculative-grade
corporate loan issuers, we are making qualitative adjustments to
our analysis when rating CLO tranches to reflect the likelihood
that changes to the credit profile of the underlying assets may
affect a portfolio's credit quality in the near term. This is
consistent with paragraph 15 of our criteria for analyzing CLOs. To
do this, S&P reviews the likelihood of near-term changes to the
portfolio's credit profile by evaluating the transaction's specific
risk factors, including, but not limited to, the percentage of the
underlying portfolio that comes from obligors that:

-- Are rated in the 'CCC' range;
-- Are currently on CreditWatch with negative implications;
-- Are rated with negative a negative outlook; or
-- Sit within a static portfolio CLO transaction.

Based S&P's review of these factors, it believes that the minimum
cushion between this CLO tranches' break-even default rates (BDRs)
and scenario default rates (SDRs) should be 0% (from a possible
range of 0%-5%).

As noted above, the purpose of this analysis is to take a
forward-looking approach for potential near-term changes to the
underlying portfolio's credit profile.

Taking the above into account and following its analysis of the
credit, cash flow, counterparty, operational, and legal risks, S&P
believes that its preliminary ratings are commensurate with the
available credit enhancement for all of the rated classes of
notes.

S&P said, "In addition to our standard analysis, to provide an
indication of how rising pressures among speculative-grade
corporates could affect our ratings on European CLO transactions,
we have also included the sensitivity of the preliminary ratings on
the class A to E notes to five of the 10 hypothetical scenarios we
looked at in our recent publication.

"As our ratings analysis makes additional considerations before
assigning ratings in the 'CCC' category we would assign a 'B-'
rating if the criteria for assigning a 'CCC' category rating are
not met."

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

Bastille Euro CLO 2020-3 is a European cash flow CLO securitization
of a revolving pool, comprising euro-denominated senior secured
loans and bonds issued mainly by speculative-grade borrowers. CBAM
CLO Management Europe LLC will manage the transaction.

  Ratings List

  Class  Rating    Amount   Credit  Size  Deferrable   Spread/
                 (mil. EUR)  en(%)        (Y/N)        Coupon(%)

   A     AAA (sf)  186.00    38.00  61.75   N   3M EURIBOR + 1.15
   B-1   AA (sf)    11.85    29.00   3.93   N   3M EURIBOR + 2.15
   B-2   AA (sf)    15.15    29.00   5.03   N   2.30
   C     A- (sf)    31.80    18.40  10.56   Y   3M EURIBOR + 2.70
   D     BBB- (sf)  13.80    13.80   4.58   Y   3M EURIBOR + 3.85
   E     BB- (sf)   14.40     9.00   4.78   Y   3M EURIBOR + 6.70
   F     B- (sf)     6.80     6.73   2.26   Y   3M EURIBOR + 8.14
   Sub notes   NR   21.425    N/A    7.11  N/A  N/A

   NR--Not rated.
   N/A--Not applicable.
   3M EURIBOR--Three-month Euro Interbank Offered Rate.


HENLEY CLO III: Fitch Assigns 'B-(EXP)' Rating to Class F Debt
---------------------------------------------------------------
Fitch Ratings has assigned Henley CLO III DAC expected ratings as
follows.

The assignment of final ratings is contingent on the receipt of
final documents being in line with the information received for the
expected ratings.

RATING ACTIONS

Henley CLO III DAC

Class A; LT AAA(EXP)sf Expected Rating

Class B-1; LT AA(EXP)sf Expected Rating

Class B-2; LT AA(EXP)sf Expected Rating

Class C; LT A(EXP)sf Expected Rating

Class D; LT BBB-(EXP)sf Expected Rating

Class E; LT BB-(EXP)sf Expected Rating

Class F; LT B-(EXP)sf Expected Rating

Sub. Notes; LT NR(EXP)sf Expected Rating

TRANSACTION SUMMARY

This is a securitisation of mainly senior secured obligations (at
least 90%) with a component of senior unsecured, mezzanine,
second-lien loans and high-yield bonds. Note proceeds will be used
to fund a portfolio with a target par of EUR350 million. The
portfolio will be actively managed by Napier Park Global Capital
Ltd. The collateralised loan obligation (CLO) has a 3.4-year
reinvestment period and a 7.5-year weighted average life (WAL).

KEY RATING DRIVERS

'B'/'B-' Portfolio Credit Quality: Fitch assesses the average
credit quality of obligors to be in the 'B'/'B-' category. The
Fitch weighted average rating factor (WARF) of the identified
portfolio is 33.3, while the indicative covenanted maximum Fitch
WARF is 35.5.

High Recovery Expectations: At least 90% of the portfolio will
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 (WARR) of the identified portfolio is 63.3%, while the
indicative covenanted minimum Fitch WARR is 61.0%.

Diversified Asset Portfolio: The indicative maximum exposure of the
10 largest obligors for assigning the expected ratings is 20% of
the portfolio balance. The transaction also includes various
concentration limits, including the maximum exposure to the three
largest (Fitch-defined) industries in the portfolio at 40%. These
covenants ensure that the asset portfolio will not be exposed to
excessive concentration.

Portfolio Management: The transaction has a 3.4-year reinvestment
period and includes reinvestment criteria similar to those of other
European transactions. Fitch's analysis is based on a stressed-case
portfolio with the aim of testing the robustness of the transaction
structure against its covenants and portfolio guidelines.

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, and to assess their
effectiveness, including the structural protection provided by
excess spread diverted through the par value and interest coverage
tests.

The transaction was also modelled using the current portfolio and
the current portfolio with a coronavirus sensitivity analysis
applied. Fitch's analysis for the coronavirus sensitivity analysis
was based on the stable interest-rate scenario but includes the
front-, mid- and back-loaded default timing scenarios as outlined
in the agency's criteria.

Deviation from Model-Implied Rating: The ratings of the class E and
F notes are one notch higher than their model-implied ratings. The
ratings are supported by credit enhancement that is above the
historical average for EMEA CLOs for both notes, as well as the
significant default cushion based on the identified portfolio, as a
result of a notable cushion between the covenants and the
portfolio's parameters. Both notes pass the assigned ratings based
on both the identified portfolio and the coronavirus sensitivity
analysis that the agency will use for surveillance.

The class F notes' rating deviates from the model-implied rating
and reflects the agency's view that the notes display a safety
margin given the high credit enhancement level. The notes are not
showing a real possibility of default, which is the definition of
'CCC'.

RATING SENSITIVITIES

This section provides insight into the model-implied sensitivities
the transaction faces when one assumption is modified, while
holding others equal. The modelling process uses the modification
of these variables to reflect asset performance in upside and
downside environments. The results below should only be considered
as one potential outcome, as the transaction is exposed to multiple
dynamic risk factors. It should not be used as an indicator of
possible future performance.

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

A 25% reduction of the mean default rate (RDR) across all ratings
and a 25% increase in the recovery rate (RRR) across all ratings
will result in an upgrade of no more than five notches across the
structure, apart from the class A which is already at the highest
'AAAsf' rating.

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
smaller 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 by natural credit migration, but also through
reinvestments.

After the end of the reinvestment period, upgrades may occur if
there is better-than-expected portfolio credit quality and deal
performance, leading to higher credit enhancement and excess spread
available to cover for losses on the remaining portfolio.

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

A 25% increase of the mean RDR across all ratings and a 25%
decrease of the RRR across all ratings will result in downgrades of
between two to five notches cross the structure.

Coronavirus Baseline Scenario Impact

Fitch carried out a sensitivity analysis on the target portfolio to
envisage the coronavirus baseline scenario. The agency notched down
the ratings for all assets with corporate issuers on Negative
Outlook regardless of sector. This scenario shows resilience of the
assigned ratings, with a substantial cushion across the class A to
D notes while the cushion is more limited for the class E and F
notes.

Fitch also considered the possibility that the stress portfolio,
determined by the transaction's covenants, would further
deteriorate due to the impact of coronavirus mitigation measures.
Fitch believes this circumstance is adequately addressed by the
coronavirus baseline sensitivity run, in which all classes pass the
current ratings.

Coronavirus Downside Scenario impact

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 halting recovery begins
in 2Q21. The downside sensitivity incorporates the following
stresses: applying a single-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.

Under this downside scenario, the ratings would be one to four
notches below the current ratings.

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

The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other Nationally
Recognised Statistical Rating Organisations and/or European
Securities and Markets Authority registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information.

Overall, Fitch's assessment of the asset pool information relied
upon for the agency's rating analysis according to its applicable
rating methodologies indicates that it is adequately reliable.


HENLEY CLO III: S&P Assigns Prelim. B- Rating on Class F Notes
--------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
Henley CLO II DAC's class A, B1, B2, C, D, E, and F notes. The
issuer will also issue unrated subordinated notes.

Henley CLO III is a European cash flow CLO securitization of a
revolving pool, comprising euro-denominated senior secured loans
and bonds issued mainly by speculative-grade borrowers. Napier Park
Global Capital Ltd. manages the transaction.

Under the transaction documents, the rated notes will pay quarterly
interest unless there is a frequency switch event. Following this,
the notes will switch to semiannual payment.

The portfolio's reinvestment period will end approximately
three-and-a-half years after closing.

The preliminary ratings assigned to the notes reflect S&P's
assessment of:

-- The diversified collateral pool, which consists primarily of
broadly syndicated speculative-grade senior secured term loans and
bonds that are governed by collateral quality tests.

-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.

-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.

-- The transaction's legal structure, which will be bankruptcy
remote.

-- The transaction's counterparty risks, which are in line with
our counterparty rating framework.

S&P said, "Our preliminary ratings reflect our assessment of the
collateral portfolio's credit quality, which has a weighted-average
rating of 'B'. We consider that the portfolio will be
well-diversified on the effective date, primarily comprising
broadly syndicated speculative-grade senior secured term loans and
senior secured bonds. Therefore, we conducted our credit and cash
flow analysis by applying our criteria for corporate cash flow
collateralized debt obligations.

"In our cash flow analysis, we used the EUR350 million par amount,
the covenanted weighted-average spread of 3.85%, the reference
weighted-average coupon of 4.50%, and the actual weighted-average
recovery rates for all rating levels. We applied various cash flow
stress scenarios, using four different default patterns, in
conjunction with different interest rate stress scenarios for each
liability rating category. Our cash flow analysis also considers
scenarios where the underlying pool comprises 100% of floating-rate
assets (i.e., the fixed-rate bucket is 0%) and where the fixed-rate
bucket is fully utilized (in this case 15%).

"At closing, we anticipate that the documented downgrade remedies
will be in line with our current counterparty criteria.

"Following the application of our structured finance sovereign risk
criteria, we consider the transaction's exposure to country risk to
be limited at the preliminary ratings assigned, as the exposure to
individual sovereigns does not exceed the diversification
thresholds outlined in our criteria.

"At closing, we consider that the issuer will be bankruptcy remote,
in accordance with our legal criteria.

"Our credit and cash flow analysis indicates that the available
credit enhancement for the class B to D notes could withstand
stresses commensurate with higher rating levels than those we have
assigned. However, as the CLO will be in its reinvestment phase,
during which the transaction's credit risk profile could
deteriorate, we have capped our preliminary ratings on the notes.

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe that our preliminary
ratings are commensurate with the available credit enhancement for
all of the rated classes of notes.

"In addition to our standard analysis, to provide an indication of
how rising pressures among speculative-grade corporates could
affect our ratings on European CLO transactions, we have also
included the sensitivity of the ratings on the class A to E notes
to five of the 10 hypothetical scenarios we looked at in our recent
publication. The results shown in the chart below are based on the
actual weighted-average spread, coupon, and recoveries.

"As our ratings analysis makes additional considerations before
assigning ratings in the 'CCC' category, and we would assign a 'B-'
rating if the criteria for assigning a 'CCC' category rating are
not met, we have not included the above scenario analysis results
for the class F notes."

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."

  Ratings List

  Class   Prelim. rating   Credit enhancement (%)
  A         AAA (sf)        41.00
  B1        AA (sf)         31.57
  B2        AA (sf)         31.57
  C         A (sf)          24.71
  D         BBB- (sf)       18.43
  E         BB- (sf)        11.00
  F         B- (sf)          8.63
  Subordinated  NR            N/A

  NR--Not rated.
  N/A--Not applicable.




=========
I T A L Y
=========

MONTE DEI PASCHI: Unicredit Sale Inappropriate, 5-Star Mvmt. Says
-----------------------------------------------------------------
Reuters reports that lawmakers from Five Star Movement, Italy's
ruling political party, said a sale of Banca Monte dei Paschi to
UniCredit would be inappropriate after UniCredit announced it would
appoint former Economy Minister Pier Carlo Padoan as chairman.

Mr. Padoan oversaw the bailout of Italy's oldest bank, Monte dei
Paschi, back in 2017, with Rome spending EUR5.4 billion (US$6.31
billion) on a 68% stake, Reuters discloses.  According to Reuters,
under an agreement with European Union authorities, the stake must
be sold by mid-2022.

UniCredit, long seen as the best candidate to take over ailing
Monte dei Paschi, said on Oct. 13 it would appoint Mr. Padoan as
chairman when it renews the board next spring, in a choice that
fueled speculation over a possible tie-up between the two lenders,
Reuters relates.


NEXI SPA: Moody's Affirms 'Ba3' CFR, Outlook Stable
---------------------------------------------------
Moody's Investors Service affirmed Nexi S.p.A.'s (Nexi or the
company) corporate family rating (CFR) at Ba3 and probability of
default rating (PDR) at Ba3-PD. Concurrently, Moody's has also
affirmed the Ba3 instrument rating on the EUR825 million senior
unsecured notes due 2024 issued by Nexi S.p.A. The outlook remains
stable.

On October 5, 2020, Nexi announced the signing of a memorandum of
understanding with SIA S.p.A. (SIA) for the integration of the two
groups through the merger by incorporation of SIA into Nexi. The
combined group would remain listed on the Borsa Italiana's Main
Market (MTA) and be a leader in digital payments in Europe, with
about 2 million merchants and 120 million cards and the generation
of about EUR1.8 billion 2019 pro-forma revenues and EUR1 billion
EBITDA (including run-rate synergies, as well as pro forma the
acquisition of Intesa Sanpaolo S.p.A.'s [ISP] merchant acquiring
business which closed in June 2020).

The combination of Nexi and SIA will be an all-share transaction
and current SIA shareholders will have a stake in the share capital
of the combined group of about 30%, while current Nexi shareholders
will have a stake of about 70%. The largest shareholders of the
combined group will be Cassa Depositi e Prestiti S.p.A. (CDP, Baa3
stable), with a stake of about 25%, and Mercury UK HoldCo Limited
(Mercury), Nexi's current shareholder, with a stake of about 14%
(this considers Mercury's recent sale of 13.4% in Nexi). The
transaction is still conditional upon several elements, including
the satisfactory outcome of a confirmatory due diligence on Nexi
and SIA, as well as regulatory approvals.

RATINGS RATIONALE

While recognizing that the merger with SIA is positive for Nexi's
credit profile, the affirmation of Nexi's Ba3 ratings with a stable
outlook reflects some uncertainties related to the transaction
approval process and timing, with a closing expected in summer
2021; an operating environment still affected by the pandemic
effects; and Nexi's active acquisition strategy in a consolidating
sector, with SIA's integration adding to the integration of
previously-acquired businesses. Nevertheless, if the transaction
progresses as contemplated, Nexi's earnings and cash flow continue
to recover from the pandemic effects, and, absent any material
debt-funded acquisition, positive rating pressure would develop
accordingly.

A merger of SIA into Nexi would improve Nexi's credit profile,
through increased scale and diversification and stronger financial
ratios, given the all-share funding of the acquisition and expected
synergies which will grow EBITDA and improve the cash flow
generation of the group. The combination of Nexi and SIA would
result in in-market consolidation in Italy, with Nexi further
strengthening its market leadership position, while SIA would also
bring geographic diversification with its presence in other
European markets. The transaction would result in synergies that
Nexi estimates at EUR150 million recurring cash synergies and would
gradually materialize between 2021 and 2025. While Moody's views
integration risks as moderate for the Nexi-SIA combination, and
principally related to the in-sourcing of some processing
activities, the rapid pace of acquisitions in the recent past
increase's integration risks.

Moody's estimates that the integration of SIA into Nexi would add
around EUR0.9 billion of debt and Nexi's gross debt would total
EUR3.7 billion pro forma the transaction vs. EUR2.8 billion (pro
forma ISP merchant acquiring business acquisition), considering
2019 financial data. SIA has a slightly lower leverage than Nexi,
and this combined with expected synergies, would improve Nexi's
leverage over the coming years. The combined group will also have a
stronger cash flow generation with a 2019 pro forma operating cash
flow estimated at about EUR0.8 billion (including synergies).
According to Moody's assumptions, leverage (gross debt/EBITDA)
would reach 4.3x in 2021 (pro forma the merger with SIA and
excluding integration costs) and 4.8x, if integration costs are
included, and then improve to 4.0x by the end of 2022 (4.4x
including integration costs).

Nexi has stated a "medium-long term" net leverage target of
2.0x-2.5x and the conservative way that the transaction with SIA
has been structured supports this move to a more conservative
financial policy. The shift in ownership to CDP could also support
conservative financial policies going forward. Nevertheless, Nexi
has publicly stated its intention to use the combination with SIA
as a platform for future organic and inorganic growth and to
participate in the sector's ongoing consolidation, and acquisitions
are likely to take place in its view, which could limit any
deleveraging.

Nexi's Ba3 ratings, prior to the merger with SIA, continue to
reflect (1) the company's presence across the payments value chain
in Italy with leading market shares in merchant acquiring, card
issuing, point-of-sale and automated teller machines (ATM)
management, among others, (2) the company's strong relationships
with around 150 partner banks, which are both clients and
distributors of its payment solutions to both merchants and
individuals, (3) high barriers to entry in the payment processing
market, (4) good growth prospects supported by the relatively low
penetration of card transactions in Italy, and (5) Nexi's good
liquidity position.

These strengths are nevertheless currently mitigated by (1) the
concentration of operations in a single country, (2) the relative
concentration of customers due to the wholesale nature of its
issuing and clearing services, (3) execution risks related to
growth, ongoing reduction in non-recurring items and continued
improvement in free cash flow generation, (4) potential competition
following the implementation of PSD2, and (5) the company's
acquisitive nature with potentially negative implication for future
leverage, as well as associated integration risk.

Moody's assumes that Nexi will continue to benefit from a good
liquidity position supported by (1) cash of EUR316 million
(including ISP's contribution) as at June 30, 2020, (2) an undrawn
EUR350 million revolving credit facility due 2024, and (3)
dedicated clearing and overdraft facilities, including a
non-recourse factoring line of up to EUR3,200 million and EUR1,500
million of bilateral credit facilities, that cover the group's
short-term working capital requirements.

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

Positive rating pressure could arise if (1) Nexi's revenue
continues to grow at around mid-single digit rates in percentage
terms and it maintains its EBITDA margin, (2) the company continues
to reduce non-recurring items materially, (3) Moody's adjusted
(gross) leverage is maintained at well below 4.5x on a sustained
basis, (4) adjusted FCF/debt improves to well above 5% on a
sustained basis, and (5) the company maintains a good liquidity
position.

Negative rating pressure could arise if (1) Nexi experiences the
loss of large customer contracts or increased churn, (2) Moody's
adjusted (gross) leverage increases to above 5.0x on a sustainable
basis, (3) free cash flow generation weakens, or (4) the company's
liquidity position deteriorates.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Headquartered in Milan, Italy, Nexi is the leading provider of
payment solutions in its domestic market, including card issuing,
merchant acquiring, point-of-sale and ATM management and other
technology-driven services to financial institutions, individual
cardholders, and corporate clients. The company reported net
revenue and adjusted EBITDA of EUR1.0 billion and EUR503 million,
respectively, in 2019.




=================
L I T H U A N I A
=================

PLT VII FINANCE: S&P Assigns 'B' Ratings, Outlook Stable
--------------------------------------------------------
S&P Global Ratings assigned its 'B' ratings to PLT VII Finance S.a
r.l., holding company of telco and media group Bite and withdrew
its 'B' ratings on PLT VII Finance B.V.

The stable outlook reflects its expectation that Bite's revenue and
EBITDA margin will continue increasing, including in 2020, due to
the Baltcom acquisition, with leverage remaining below 6.5x.

The 'B' long-term ratings on PLT VII Finance S.a r.l. are in line
with the previous ratings on PLT VII Finance B.V.

S&P's previous analysis on Bite group, including the issuer credit
rating and S&P's ratings on the group's senior secured debt,
continues to apply after the merger.




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

CB PFC-BANK: Declared Bankrupt by Moscow Arbitration Court
----------------------------------------------------------
The provisional administration to manage CB PFC-BANK PJSC
(hereinafter, the Bank) appointed by virtue of Bank of Russia Order
No. OD-65, dated January 17, 2020, following the revocation of its
banking license, in the course of the inspection of the Bank,
established the existence of signs suggestive of the Bank's
officials operations to divert assets through lending to borrowers
with dubious solvency or knowingly unable to fulfil their
obligations.

On September 30, 2020, the Arbitration Court of the city of Moscow
recognized the Bank as bankrupt.  The State Corporation Deposit
Insurance Agency was appointed as a receiver.

As the Bank of Russia reasonably presumes that the Bank's officials
were engaged in financial operations suggestive of criminal
offence, the Bank of Russia submitted relevant information to the
Prosecutor General's Office of the Russian Federation and the
Investigative Committee of the Ministry of Internal Affairs of the
Russian Federation for consideration and procedural
decision-making.




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

PEACH PROPERTY: Fitch Upgrades LT Issuer Default Rating to BB-
--------------------------------------------------------------
Fitch Ratings has upgraded Peach Property Group AG's Long-Term
Issuer Default Rating (IDR) to 'BB-' from 'B+' and senior unsecured
rating to 'BB' from 'BB-'. Fitch has assigned Peach Property
Finance GmbH's planned EUR300million bond, which is guaranteed by
Peach, a 'BB(EXP)' expected rating.

The upgrades reflect improvements in Peach's business and financial
profile following the acquisition of two portfolios ('Rock' and
'Pure'). The group's larger CHF2billion German residential rented
portfolio is expected to result in higher profitability by
leveraging Peach's existing operating platform, and provide greater
asset and geographical diversification as well as a larger
unencumbered portfolio. The upgrade also includes the benefit of
the announced CHF200million equity issuance.

The expected rating of the planned EUR300million bond is in line
with the group's existing senior unsecured bond, also guaranteed by
Peach. The final rating is subject to receipt of final
documentation.

KEY RATING DRIVERS

Achieving Portfolio Scale. The acquisitions of the Rock and Pure
German residential portfolios announced in July and September 2020
should be completed by end-2020 and will double the group's
portfolio size to CHF2.0 billion (end-YE19: CHF1.1 billion) and
increase residential units to more than 23,000. Fitch expects the
larger portfolio to improve operating margins and profitability, as
Peach can leverage its operating platform across a larger
portfolio. The acquisitions follow the template of its 4Q19 Grande
acquisition and complement the existing portfolio.

Improving Leverage: Fitch forecasts Peach's financial profile to
improve, with net debt to EBITDA falling to around 19.0x and EBITDA
net interest cover to 1.8x in 2021, when Peach has collected its
first full year rents after the acquisitions. Fitch sees potential
for further deleveraging, assuming no dilution from other
debt-funded acquisitions. The improvement in leverage will
primarily be driven by improved profitability, supported by the
issuance of a short-term CHF200 million mandatory convertible that
converts into equity no later than June 2021 with an option to
convert earlier until December 4, 2020.

More Unencumbered Assets: The funding of the acquisition will leave
additional assets unencumbered, bringing Peach's unencumbered
portfolio to about CHF0.7 billion, with a Fitch-calculated
unencumbered cover ratio slightly above 1x. Fitch expects the LTV
will gradually improve from pro forma 65% Fitch-adjusted LTV at
end-2020.

Peach plans to complete the sale of its Swiss assets in 4Q20,
reducing the related secured debt. Fitch treats Peach's CHF86
million convertible hybrid and hybrid warrant bond as 100% debt,
while the new CHF200-million mandatory convertible bonds have been
assigned 100% equity credit. Fitch has also included some take-up
on the 4Q20 conversion option of Peach's convertible hybrid bond,
which is expected to convert once the next coupon has been paid.

Senior Unsecured Uplift: To calculate the recovery estimate for the
two unsecured bonds, Fitch has used the recent post-acquisition
CHF839 million independent valuations of the two acquired
portfolios, resulting in a recovery rate within the 'RR2' range.
Existing unsecured debt includes the EUR250 million existing bond
and its planned EUR300 million bonds, and the CHF64 million (CHF63
million unsecured drawn) debt at the Peach Property Group
(Deutschland) AG level.

As per Fitch's criteria, this recovery analysis assumes no timely
recovery to the unsecured creditors from the encumbered secured
portfolios controlled by the group's secured creditors.

North-Rhine-Westphalia-Focused Portfolio: Peach's off-market
acquired portfolios have core metrics broadly comparable with
German peers, but pockets of high vacancies to work through. The
two announced acquisitions of more than 10,000 units complement
Peach's existing footprint (including the Grande portfolio). Its
Peach Point network of customer service centres and digital
platform leads to better communication with local tenants and cost
savings, compared with peers covering a Germany-wide portfolio.
Peach's small market share does not work against it, as no
participants command a regional market share that can influence
evidence for local rent setting.

High Vacancy Rates: Vacancies suggest opportunities for landlords
to re-set an apartment's rent closer to market rent, particularly
if it has been renovated. Peach's vacancy rate at 8.2% at 1H20 is
higher than the 2.0% to 4.0% industry norms. Peach acquired two
portfolios at Neukirchen in 2015 and Fassberg in 2016 and only
gradually reduced their high vacancies after renovating the
buildings.

The group's 1H20 vacancy rate excluding Fassberg and Neukirchen was
6.1%. Together with the high-vacancy Rheinland and Kaiseslautern I
portfolios, this represents potential rental uplift after capex.
Until then, Peach incurs the cost of acquisition and vacancy costs
(the latter around 2% of gross rents).

DERIVATION SUMMARY

Fitch has compared Peach with German residential peers. Its
portfolio is broadly comparable with larger peers' portfolios as
measured by market value per sq m, in-place-rent per sq m, gross
yield for the location and quality. Peach's portfolio is different
in that it has markedly higher vacancy rates (1H20 pro forma for
acquisitions: 8.8%), which stem from some portfolios being acquired
with properties awaiting renovation and re-letting. Over time, this
provides an opportunity for increased rents.

Peach's pro forma end-December 2021 net debt/EBITDA leverage of
around 19x is high, consistent with its historical high LTVs.
Relative to office and retail property company metrics, residential
net debt/EBITDA ratios will be higher because of the asset class's
tighter income yield and lower risk profile. Given the current and
prospective conducive supply and demand dynamics, German
residential has a more stable income profile.

Peach's growing size, its overall secondary quality of the
portfolio (given vacancies, and average rents), exposure to secured
funding, and current high leverage frame Peach's IDR within the
lower end of the 'BB' rating category. Fitch expects this profile
to improve as the company acquires similar portfolios and accesses
additional unsecured debt.

KEY ASSUMPTIONS

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

  - 4Q20 events including the acquisition of the Rock and Pure
portfolios for CHF838 million (EUR228 million) subsequently
revalued by CHF107 million

  - Issuance of the CHF323 million (EUR300 million) five-year
unsecured bond.

  - Conversion of an additional CHF28 million of the CHF30.9
million convertible hybrid into equity. CHF200 million equity
increase including mandatory convertible.

  - CHF145 million (EUR135 million) of new mortgage secured
financing.

  - Sale of Swiss development assets

RATING SENSITIVITIES

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

  - Leverage (for residential) below 18x net debt/EBITDA and EBITDA
net interest coverage above 1.75x

  - Vacancies below 7%

  - Commitment to an unencumbered balance sheet resulting in an
unencumbered asset cover above 1.5x

  - For the property company recovery unsecured sector uplift: a
larger, more diversified, unencumbered portfolio base.

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

  - Leverage above 20x net debt/EBITDA and EBITDA net interest
coverage below 1.5x

  - Costs for holding vacancies increasing to 5% of rent roll

  - Contrary to financial policy, incurring more secured funding
and leading to unencumbered asset ratio falling below 1.0x

  - For the bespoke Recovery Rating: a decrease in the valuation of
the unencumbered portfolio.

LIQUIDITY AND DEBT STRUCTURE

Limited Liquidity: Available liquidity at end-June (1H20) was
limited to CHF39 million of cash on balance sheet. This covered
maturing debt within 12 months (CHF30 million) including secured
debt amortisations. The group also has CHF1 million undrawn and
available under the Peach Property Group (Deutschland) AG unsecured
facility. Peach management intends to run the group with CHF20
million of cash on balance sheet.

Secured debt funding amortisations per year total CHF5.5 million.
FY20's liquidity will be aided by expected sale proceeds from the
Swiss development property.

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.


PEACH PROPERTY: Moody's Affirms Ba3 CFR, Outlook Stable
-------------------------------------------------------
Moody's Investors Service affirmed the Ba3 corporate family rating
of Peach Property Group AG (PPG), a real estate company focused on
German residential rental properties. Moody's also affirmed the Ba3
backed senior unsecured rating of Peach Property Finance GmbH, a
wholly owned subsidiary of PPG. At the same time, Moody's assigned
a Ba3 rating to the planned EUR300-million senior unsecured bond
issued by Peach Property Finance GmbH and guaranteed by PPG. The
outlook is stable.

The planned bond along with additional bank finance and new
instruments that convert into equity will finance two recent
acquisitions of 10,290 apartments in Germany, amounting to CHF731
million, that are expected to complete by end of 2020.

RATINGS RATIONALE

The Ba3 rating affirmation is supported by PPG's stable rental cash
flow from its 23,500 residential units (pro forma for the
acquisitions) with a granular tenant base and a nine-year average
tenancy length. The affirmation also reflects Moody's positive view
of the regulated rental sector in Germany, which is one of the most
stable European real estate asset classes and was minimally
impacted by the coronavirus pandemic. Rents and values in the
sector are underpinned by the structural undersupply that current
regulations tend to exacerbate by reducing incentives to build.

The planned acquisitions are credit positive because they double
the size of PPG's portfolio allowing it to benefit from the cost
synergies and saving from operating a much larger platform. The
larger scale will also improve the PPG's access to debt and equity
capital markets.

The Ba3 rating assigned to the planned EUR300 million senior
unsecured bond maturing in 2025 is in line with the company's Ba3
CFR. The planned bond will rank pari passu with all existing and
future senior unsecured obligations of the company. The planned
bond will be subject to three financial incurrence covenants: (1)
minimum interest coverage of 1.5x until end of 2021, increasing to
1.6x during 2022 and to 1.75x from 2023 onwards, (2) a maximum net
LTV ratio of 60% (3) a maximum net secured LTV ratio of 40%.

KEY CREDIT METRICS

The transaction is largely leverage neutral, and credit metrics
will be in line by year-end 2021 with Moody's expectations when
Moody's first assigned the rating in November 2019.

As of 30 June 2020, PPG's Moody's-adjusted gross debt/total assets
stood at 68%, with an elevated Moody's-adjusted Net debt/EBITDA and
a Moody's-adjusted fixed charge coverage of 1.4x. By year-end 2021,
Moody's expects these ratios to respectively move to around 62%,
21x, and above 1.5x.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS

Governance risks taken into consideration in PPG's credit profile
include financial policies and governance regulations imposed on
the company as a result of its listing on the Swiss stock exchange.
The company has a financial policy of maintaining a loan-to-value
(LTV) ratio below 60% and an interest cover ratio above 1.5x (based
on the full portfolio run rate). The company targets an average
debt maturity that is above four years and aims to maintain ample
liquidity, with a minimum of CHF20 million cash on balance sheet.

OUTLOOK

The stable outlook reflects Moody's expectation that the company
will (1) continue to generate stable cash flow, while gradually
improving its occupancy levels; and (2) maintain good liquidity
alongside a balanced growth strategy. The outlook also reflects a
favourable operating environment, and Moody's expectation that the
company will maintain leverage within its financial policies.

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

FACTORS THAT COULD LEAD TO A UPGRADE OF THE RATING

  -- Growth in scale and diversification and a consistent track
record of strong operating performance, along with a balanced
growth strategy and strong access to debt and equity capital

  -- Moody's-adjusted gross debt/total assets below 55% and a
corresponding improvement in Moody's-adjusted net debt/EBITDA,
along with financial policies that support lower leverage

  -- Moody's-adjusted fixed charge coverage above 2.0x on a
sustained basis

FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING

  -- If Moody's-adjusted gross debt/total assets is not maintained
around 60% on a sustained basis and Moody's-adjusted net
debt/EBITDA does not improve towards the 20x level

  -- Weak operating performance and a vacancy rate that is
persistently and materially above market levels

  -- Moody's-adjusted fixed charge coverage below 1.5x on a
sustained basis

  -- Failure to maintain adequate liquidity or addressing upcoming
debt maturities well in advance and a balanced funding mix of
majority senior unsecured borrowing, supported by a high-quality
unencumbered asset pool

LIQUIDITY

PPG's liquidity is adequate. As of 30 June 2020, its sources of
liquidity included CHF39.3 million of cash and cash equivalents.
The company's internal cash sources, pro forma for the recent bond
issue, are sufficient to cover the cash requirements (acquisitions,
capital spending and debt service) for the next 18 months.

STRUCTURAL CONSIDERATIONS

In line with Moody's REITs and Other Commercial Real Estate Firms
rating methodology, the company's Ba3 CFR is equal to a senior
unsecured rating, because pro forma for the planned bond and
additional bank borrowing, senior unsecured debt forms most of the
funding on a sustained, forward-looking basis.

PROFILE

Peach Property Group (PPG) is a real estate company focused on
residential investments in Germany. The company is headquartered in
Zurich and has been listed on the SIX Swiss Exchange since 2010
(market capitalisation of CHF293 million as of 12 October 2020),
with its German group headquarters in Cologne. As of 30 June 2020,
pro forma for the two most recently announced acquisition, the
company will own 23,220 residential units, with a total lettable
area of around 1,510,000 square metres and a total market value of
CHF2 billion. The company's annual target rental is CHF110 million
pro forma for the acquisitions.

PRINCIPAL METHODOLOGY

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


PEACH PROPERTY: S&P Rates EUR300MM Unsec. Notes 'BB-'
-----------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term issue rating to the
EUR300 million senior unsecured notes to be issued by Swiss real
estate company Peach Property Group AG (PPG; B+/Stable/--), through
its wholly owned financing vehicle Peach Property Finance GmbH. The
proposed bond has an expected maturity of five years.

The recovery rating on the debt is '2', reflecting S&P's
expectation of around 85% recovery prospects in the event of a
default.

S&P arrives at its 'BB-' issue rating on the proposed notes by
adding one notch to its 'B+' long-term issuer credit rating on PPG,
as per our recovery analysis for debt ratings.

Issue Ratings - Recovery Analysis

Key analytical factors

-- The '2' recovery rating reflects PPG's valuable asset base,
which consists of residential real estate properties in Germany.

-- The proposed notes will be issued by PPG's financing
subsidiary, Peach Property Finance GmbH, and S&P understands that
the notes will be fully guaranteed by the parent.

-- S&P's recovery prospects are constrained by the unsecured
nature of the debt instrument and its contractual subordination to
the current amount of secured debt.

-- S&P expects PPG will use the proceeds from the bond issuance to
finance recently announced acquisitions.

-- In S&P's hypothetical default scenario, it envisages a severe
macroeconomic downturn in Germany, resulting in market depression
and exacerbated competitive pressure.

-- S&P values the group as a going concern. Its stressed valuation
comprises the stressed worth of the company's property portfolio.

-- Recovery prospects for the senior unsecured notes are sensitive
to change in the amount of senior secured debt or any other
priority debt outstanding at default.

Simulated default assumptions

-- Year of default: 2024
-- Jurisdiction: Switzerland

Simplified waterfall

-- Gross enterprise value (EV) at emergence: Swiss franc (CHF)
1,405 million
-- Net EV at emergence after administrative costs: CHF1,335
million
-- Estimated priority debt (secured debt): CHF622 million
-- Net EV available to senior unsecured bondholders: CHF713
million
-- Senior unsecured debt claims: CHF664 million
-- Recovery expectation: 80%-90% (rounded estimate: 85%)

*All debt amounts include six months of prepetition interest.


SPORTRADAR AG: S&P Assigns Prelim. 'B' LongTerm ICR, Outlook Stable
-------------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B' long-term issuer
credit rating to Switzerland-based sports data and content company
Sportradar AG and its 'B' issue rating to the group's proposed
EUR420 million first-lien term loan.

Sportradar is one of the main players in sports data and content,
where there are some barriers to entry, and its high customer
retention rate offers some visibility on earnings and cash flows.

It is the market leader in global sports betting data and odds,
with around 40% market share. It is also the second-largest player
in the sports audiovisual (AV) market with around 28% market share.
Sportradar's business is based on the sport-related data
accumulated by its teams attending major sport events around the
world, for which the company pays hefty license fees to sports
franchises. Its 19 years of historical sports data and a
proprietary technology act as a barrier to entry for new entrants
in the market. It has long-term and entrenched relationships with
its key customers as demonstrated by the fact that 38% of revenues
in 2019 is sourced from customers that were signed in 2008.
Sportradar's services represent a relatively modest cost for a
betting or media company and the rate of customer churn has been
low over the years (2%-3%).

Sportradar has a solid track record of year-on-year organic revenue
growth of 18%, 28%, and 34% in 2019, 2018, and 2017.  This has been
driven by expansion in the core betting business, an acceleration
in managed trading services while bookmakers continue to shift to
outsourced platforms, and high growth in the U.S. market following
the legalization of sports betting. Future growth will depend on
new industry characteristics and technology advancements such as:

-- Changing viewing habits in the fragmenting media and betting
landscape, with a younger, technologically savvy population fueling
demand for data; and

-- The potential legalization of sports betting across the U.S.,
which could have a significant effect on the group's future growth.
We understand that sports betting has been legalized in 19 states,
and four more have passed, but not yet implemented, a sports
betting bill.

Nonetheless, future business growth could suffer if a potential
second wave of the pandemic further disrupts sports activity or
subdues consumption.

Sportradar operates in a niche market that has limited scale, but
it has adopted an organic and inorganic growth strategy.  S&P said,
"We estimate that Sportradar's S&P Global Ratings-adjusted EBITDA
for full-year 2020 (including the contemplated acquisition) will be
about EUR70 million-EUR75 million, which is fairly modest in terms
of scale of operations. The company is exposed to moderate
end-market concentration. With its main focus being on betting, the
company is exposed to the industry's strengths and weaknesses
including indirect regulatory exposure. We understand that
Sportradar is in advanced discussions to complete an acquisition.
While we do not know who the target is, we understand that there
are significant revenue synergies with the target and is of
considerable size, with an estimated annual EBITDA of EUR20
million-EUR25 million. While we think the preliminary 'B' rating
will encompass this acquisition, if we see higher-than-expected
integration risk -- or if the transaction does not go ahead and is
replaced by a more aggressive transaction -- we would review our
preliminary rating."

COVID-19 related disruptions affected operating performance but not
as badly as expected.  The second quarter of 2020 saw most global
sporting events either cancelled or postponed. As such, Sportradar
reported a revenue decline of 10% year-on-year in the second
quarter of 2020. The decline was not as severe as expected because
the company was able to offer content for ping pong and volleyball,
which were not severely affected in the lockdown, and alternative
digital content like virtual sports tournaments. Almost 50% of its
revenue generated in the second quarter of 2020 was driven by
alternative content. After a solid first quarter, the year-on-year
revenue decline for the first half of this year was only 1%. S&P
said, "We expect the third and fourth quarter results to be
stronger than the second quarter given that most of sporting
activity has resumed during the third quarter. As such, we estimate
a low-single-digit revenue decline for the whole of 2020, although
we acknowledge downside risk to our base case from potential second
wave of COVID-19 that could see sporting events suspended again --
and when the company's leverage will be substantial."

Sportradar's proposed issuance of the term loan results in a highly
leveraged capital structure but with solid FOCF generation.  
Sportradar intends to issue a senior secured term loan B of EUR420
million along with a EUR110 million RCF. Part of the proceeds from
the term loan will be used to refinance the existing EUR125 million
of existing bank debt facilities. The remaining proceeds will fund
a near-term acquisition. The RCF will remain undrawn at the closing
of the transaction. The contemplated acquisition will likely be
completed by year-end 2020 and so S&P's rating base case includes
the EBITDA contribution from the acquisition in 2020, on a pro
forma basis. On a pro forma basis, S&P expects the adjusted debt to
EBITDA to reach close to 6.5x in 2020 and revert to below 6.0x in
2021, resulting in a highly leveraged capital structure. That said,
the company's ability to generate solid FOCF supports S&P's rating
with estimated S&P Global Ratings-adjusted FOCF to debt of about
10% in 2020 and 2021.

S&P said, "We are assigning preliminary ratings at this stage and
these should not be construed as evidence of final ratings. The
final ratings will depend, not only on the execution of the
contemplated acquisition in the terms represented by management,
but also on our receipt and satisfactory review of all final
refinancing transaction documentation. If S&P Global Ratings does
not receive final documentation within a reasonable time frame, or
if final documentation departs from materials reviewed, we reserve
the right to withdraw or revise our ratings." Potential changes
include, but are not limited to, use of loan proceeds, maturity,
size and conditions of the loans, financial and other covenants,
and ranking.

The stable outlook assumes the company will report solid
year-on-year organic revenue growth of around 10% in 2021 after a
low-single-digit decline in 2020, while maintaining S&P Global
Ratings-adjusted EBITDA margins of 16%-20%. As a result, and
following the completion of the contemplated acquisition, S&P
expects S&P Global Ratings-adjusted debt to EBITDA to remain close
to but below 6.5x and S&P Global Ratings-adjusted FOCF to debt at
around 10% in 2020.

S&P could lower the rating if:

-- S&P Global Ratings-adjusted debt to EBITDA increases above
6.5x; or

-- FOCF to debt falls below 5% for a sustained period.

This could occur if the company fails to close the contemplated
acquisition in the terms represented by management or it undertakes
a larger and more expensive transaction than expected. The above
credit metrics could also materialize if Sportradar's operating
performance was weaker than S&P's base case due either to
difficulties integrating the contemplated acquisition or a
potential second wave of COVID-19 resulting in lower-than-expected
consumption.

S&P said, "We see an upgrade as unlikely over the next 12 months,
given Sportradar's highly leveraged capital structure. We could
raise the rating over the longer term if Sportradar reduced its S&P
Global Ratings-adjusted debt to EBITDA to below 5.0x and FOCF to
debt of nearly 10%."


SPORTRADAR HOLDING: Moody's Assigns 'B2' CFR, Outlook Stable
------------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating
(CFR) and a B2-PD probability of default rating (PDR) to Sportradar
Holding AG. Concurrently, Moody's has assigned B2 instrument
ratings to the proposed EUR420 million senior secured Term Loan B
and EUR110 million senior secured multicurrency Revolving Credit
Facility, to be borrowed by Sportradar Capital S.a r.l. The outlook
is stable.

Up to EUR300 million of the proceeds from the proposed EUR420
million TLB will be used to fund near term acquisitions, and around
EUR120 million will be used to refinance existing drawn debt.
Moody's notes that despite the majority of the proceeds being
intended for acquisitions, the identity of actual acquisition
targets has not been disclosed.

Headquartered in St. Gallen, Switzerland, Sportradar is a service
provider of end to end sports data analytics solutions to both
betting and media industries, as well as to sport federations and
authorities. The company operates under five segments: Sports
Betting Services, Sports Audio Visual (AV), Sports Media, Ad:s and
Integrity Services, covering the entire value chain of collecting,
processing, marketing and monitoring of sports related live data.
Sportradar serves more than 1,000 customers and partners in
approximately 30 countries through over 2,200 employees. The
company generated June 2020 LTM revenue of EUR386million and
company-adjusted EBITDA of EUR79.5 million.

The rating action reflects:

  - The relatively high opening Moody's adjusted gross leverage of
5.5x which Moody's expects to reduce below 5x over the next 6-12
months as the company executes its current acquisition strategy.

  - Moody's expectation that Sportradar will continue to generate
positive free cash flow going forward

  - The company's demonstrated ability to mitigate the risk of
widespread sports-event cancellations during the coronavirus
pandemic

  - Moody's expectation that the company's leading market position
will enable it to continue to monetize the growing demand for
sports data analytics and sports content solutions

RATINGS RATIONALE

The B2 CFR is supported by the company's (1) market leading
position, with the highest revenue, largest market share in core
markets and largest volume of sports data among its peers; (2)
well-invested proprietary technology and strong geographic coverage
with more than 7,500 trained scouts which act as barriers to entry;
(3) established long term relationships with key sports betting and
media companies, sports federations, authorities and content rights
providers; (4) deeply embedded workflows with customers that mean
switching costs are high and churn is low, and; (5) a moderate
financial policy with no plans for shareholder distributions.

The B2 rating is constrained by (1) the company's dependence on
live sporting events which have proven vulnerable to widespread
closures during the current coronavirus pandemic, significantly
mitigated by the ability to renegotiate contracts and both switch
and generate content; (2) the company's high ongoing sports rights
spend, mitigated by the proven ability to reduce sports rights
payments during recent live sports disruptions; (3) the risks
involved in executing the company's M&A strategy, including
integration risk as well as the potential for leverage to increase
in the future in order to achieve scale, supported by ample
covenant headroom in the new senior facilities agreement, and (4)
some keyman risk on the principal owner and original founder of the
business.

LIQUIDITY PROFILE

Moody's considers that the company benefits from a good liquidity
profile, supported by (1) Moody's estimate of cash balances of
around EUR50 million net of near-term acquisitions; (2) the new
undrawn RCF of EUR110 million, and; (3) free cash flow generation
expected in the forecast period.

There is one springing senior secured net leverage maintenance
covenant on the proposed RCF, tested if drawings under the RCF
exceed 40%, set with large headroom.

STRUCTURAL CONSIDERATIONS

Using Moody's Loss Given Default for Speculative-Grade Companies
methodology, the B2-PD PDR is in line with the CFR. This is based
on a 50% recovery rate, as is typical for transactions including
only 1st lien bank debt with no financial maintenance covenants.
The TLB and the RCF rank pari passu and are rated in line with the
CFR. All debt facilities are secured by pledges over shares, bank
accounts and structural inter-company receivables, and guaranteed
by material subsidiaries representing at least 80% of the
consolidated EBITDA.

RATING OUTLOOK

The stable outlook on the company's ratings reflects Moody's
expectation that the company will successfully deliver its
acquisition strategy over the next 6-12 months leading to lower
leverage and an enhanced product offering. The outlook also
incorporates the potential for continued minor challenges to
performance as the sports market recovers from coronavirus-driven
closures.

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

Upgrade pressure on the ratings could arise if the company
continues its business profile diversification, Moody's adjusted
debt/EBITDA sustainably declines below 4.0x and (Moody's adjusted)
free cash flow generation is consistently positive, with good
liquidity.

Downward pressure on the ratings could arise if the company's
Moody's-adjusted gross leverage remains sustainably above 5.5x in
the next 12 months, if free cash flow generation is negative during
a sustained period of time, or if liquidity weakens. A shift to a
more aggressive financial policy involving debt-funded acquisitions
beyond what is currently contemplated or any material shareholder
distribution would also put immediate downward pressure on the
ratings.

PRINCIPAL METHODOLOGY

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


SPORTRADAR MANAGEMENT: Fitch Gives B LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has assigned Sportradar Management Ltd a first-time
Long-Term Issuer Default Rating (IDR) of 'B' with a Stable Outlook.
Fitch has also assigned Sportradar Capital S.a r.l.'s EUR420
million senior secured term loan an expected rating of 'B+
(EXP)'/'RR3'/56%. The assignment of a final rating is contingent on
the receipt of final documents being in line with the information
received for the expected rating.

The ratings reflect Sportradar's position as the market leading
end-to-end sports data analytics company in a rapidly growing
market. The company's solid geographic and customer diversification
along with its long tail of content coverage limit the risk of
individual rights losses. The business model has proven robust in
light of the challenges posed by the coronavirus and free cash flow
remain strong. The company is small in size relative to its
publicly rated data analytics peers and has a weaker EBITDA margin
at below 20%, driven predominantly by expensive audiovisual (AV)
sports rights. The leverage profile is more consistent with a 'B'
rating, with initial funds from operations (FFO) leverage expected
at 7.5x at December 2020 before falling to 5.4x by 2022.

The Stable Outlook reflects its expectation that organic and
inorganic EBITDA growth will reduce leverage below its downgrade
sensitivity of 6.5x FFO leverage within a year of the new financing
completing.

KEY RATING DRIVERS

Sports Data Market Leader: Sportradar is the global market leader
in sports data and content-related services with a 40% market share
in its largest segment, sports betting data and odds services. The
company has established a breadth of coverage that is unparalleled
with over 400,000 matches covered annually from over 70 sports.
This long tail of content coverage coupled with its portfolio of AV
rights present a strong value proposition to customers of all
sizes. With a growing demand for global and local data and content,
Sportradar has entrenched itself in its customers' supply chains
leading to renewal rates of close to 100%.

As the market leader, Sportradar is well diversified, with its top
10 customers representing around 18% of 2019 revenue. Its wide
content coverage and customer diversification limit the risk of
individual customer losses or the impact from a competitor gaining
exclusive rights to compete with Sportradar's in some of its larger
sports leagues.

High Growth Market: In the largest segment, data and odds, the
company's markets (excluding the US) are expected to grow at an
average of 20% between 2019 and 2022 according to BCG. The company
has been well placed as the largest player in the market to outpace
the market, with average organic revenue growth of 29% between 2014
to 2019. Positive sector trends, such as the continued growth in
online betting with its 24-hour betting options, e-sports and
simulation sports gambling should mean more data points for
Sportradar and its competitors to sell on the pre-game and live
data markets.

Coronavirus Resilience: Revenue in the first half of the year to
June 2020 was down only 1.0%, with the largest segment, sports
betting, seeing revenue growth of 1.1%. This highlights the revenue
visibility in this business, supported by contracts of typically at
least one year to five years. This was an unprecedented period for
the business, with many sports events cancelled or postponed.

Reported first half EBITDA was down 11% compared with the previous
year, reflecting unexpected costs incurred to support revenue
during lockdown from the creation of simulation, e-sports and other
events. Since the beginning of the pandemic, Sportradar has taken a
series of cost-saving measures, such cutting senior staff pay,
which should support a recovery in EBITDA in the second half of the
year.

Risk Outsourcing Opportunities: The average proportion of gross
gaming revenue spent by Sportradar's betting operators on
outsourcing risk management has grown to 20% in 2018 from 10% in
2012. With growing regulation costs, coronavirus-linked retail
closures and gaming taxation pressures, gaming operators will
increase their focus on cost cutting. As the number of matches to
bet on continues to increase, betting operators will outsource more
of their risk management costs such as live-odds calculations to
trusted third parties such as Sportradar.

US Market Legalisation: Revenue from customers in the US totalled
6% of 2019 revenue. Fitch expects this to grow as recent decisions
made by the US Supreme Court have opened the door for legalisation
of sports betting across the country. With exclusive AV and data
rights including the exclusive data rights for the National
Football League and National Hockey League and non-exclusive rights
with the other major sports leagues, Sportradar should be well
placed to drive material revenue growth in the US.

The regulation decisions are being considered on a state-by-state
basis, meaning timing of the market's expansion is uncertain and
the EUR36 million impairment of the National Basketball Association
contract highlights the initial execution risks associated in
investing in the US market.

Small Scale: The company's scale with an EBITDA below EUR100
million is small compared with other publicly rated data analytics
companies. The limited scale makes the company's free cash flow
more sensitive to economic shock or failure to successfully
integrate acquired businesses than its larger peers. Small EBITDA
scale also limits its capacity to withstand competitive pressures
from well-funded, potential new entrants from the technology
sector.

Low Margin AV Services: EBITDA margin is low compared with its
publicly rated peers at less than 20%, compared with 40% and above
for higher rated peers. These lower margins predominantly reflect
the high cost of sports rights. AV rights form a critical element
of the end-to-end product offering but reduce the EBITDA margin,
with the 2019 margin declining primarily as a result of more
expensive AV rights in the US. Potential inflation in the price of
these rights could pressure EBITDA margins further.

Elevated Leverage: FFO leverage is expected to increase to 7.5x in
2020 following the refinancing and assuming no M&A in 2020. If
Fitch assumes no M&A, gross leverage will remain above its
downgrade threshold to 'B-' for the next three years. The
significant cash balance that remains in a scenario with no M&A
would lead to very low net leverage, a strong liquidity position
and good free cash flow generation support a 'B' rating without
M&A.

The company has a track record of successfully securing bolt-on
acquisitions and Fitch expects that the majority of the EUR300
million of additional funding is being raised for a specific
target. Fitch has therefore assumed EUR200 million of M&A spending
in 2020, followed by EUR50 million per year in 2021 and 2022, all
at 15x EV/EBITDA multiples.

Moderate M&A Execution Risk: With its assumed M&A profile, the
company's FFO leverage falls to 5.4x by 2022, below its upgrade
threshold to 'B+'. Fitch views the financial profile as more
consistent with a 'B' rating given the limited visibility of the
size and financials of the company's planned acquisitions, the
timing of and the probability of successful closing potential deals
This also reflects the moderate level of execution risk in
deleveraging through acquisitions where unforeseen integration
issues are a risk, as seen with the acquisitions of BTD Group in
2015 and Mocap Analytics in 2017.

Industry Consolidation Risk: The global online betting industry has
been through a period of high-profile consolidation such as the
Stars Group by Flutter and Ladbrokes Coral by GVC. Fitch believes
regulation costs are relatively harder for smaller betting
operators to absorb than larger players. Fitch expects the trend of
consolidation in the market to continue and with smaller players
typically being customers of the higher margin services, this could
potentially slow revenue and EBITDA margin growth.

ESG Factors: Sportradar has an ESG Relevance Score of '4' for
customer welfare - fair messaging, privacy & data security due to
increasing regulatory scrutiny on the sector, greater awareness
around social implications of gaming addiction and an increasing
focus on responsible gaming, which is prevalent in the UK but also
making inroads in other markets where the group is present. This
factor has a negative impact on the credit profile, as already
reflected in the rating, and is relevant to the rating in
conjunction with other factors.

DERIVATION SUMMARY

Sportradar's EBITDAof below EUR100 million is smaller than its
publicly rated data analytics peers such as Dun & Bradstreet
Corporation (B+/Positive). It has strong geographic diversification
but weaker product diversification than the higher rated peers such
as Refinitiv (BB/RWP) or IHS Markit (BBB/Stable) with its
overwhelming exposure to the betting industry through its data and
odds products. Leverage is also higher than its higher rated peers
with FFO leverage expected to be 7.5x after the financing
completes. These factors are offset by a strong market leadership
and unparalleled breadth of data coverage which enhances its value
proposition to customers. The company is the leader in a rapidly
growing market, with revenue growth rates far higher than its
mature investment grade-rated peers.

The company takes some exposure to betting risk as part of its
managed trading services (9% of 2019 revenues) where it typically
takes a share of trading profits or losses. In its view,
Sportsradar's business model compares favourably with traditional
bookmakers. The company has no physical retail stores, is a clear
market leader in a market with only four main competitors, is not
as directly exposed to betting volumes or regulatory pressures and
is very well geographically diversified.

KEY ASSUMPTIONS

FITCH'S KEY ASSUMPTIONS WITHIN ITS RATING CASE FOR THE ISSUER

  - Slight revenue decline in 2020 due to pandemic-driven
cancellation and postponement of sporting events yet mitigated by
eSports, virtual sports and newly acquired live content (e.g. table
tennis, badminton, darts)

  - Mid-to-high single digit organic revenue growth from 2021
onwards, with US growing above 20% CAGR during its forecast
period.

  - EUR200 million of M&A cashflows assumed in 2020 followed by
EUR50 million per year in 2021 and 2022. M&A revenue & EBITDA
contribution from 2021 onwards and a 15x enterprise value
(EV)/EBITDA multiple has been assumed.

  - EBITDA improvements from rising operational leverage and higher
margin profile of M&A targets.

  - Capex at 3.9% revenue.

  - Stable working capital.

  - No dividends.

FITCH'S KEY ASSUMPTIONS ON RECOVERY RATINGS:

  - Fitch uses a going-concern approach for Sportradar in its
recovery analysis, assuming that the company would be considered a
going-concern in the event of a bankruptcy rather than be
liquidated

  - A 10% administrative claim

  - Post-restructuring going-concern EBITDA estimated at EUR55
million, 25% below 2021 Fitch-defined EBITDA after assuming EUR200
million of M&A spending at end-2020 at a 15x EV/EBITDA multiple.

  - Fitch uses an EV multiple of 6x to calculate a
post-restructuring valuation

  - These assumptions, with senior secured debt of EUR420 million
and assuming a fully drawn pari-passu revolving credit facility of
EUR110 million, result in a recovery rate of 56% for the senior
secured instrument rating within the 'RR3' range, resulting in a
one-notch uplift from the IDR.

RATING SENSITIVITIES

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

  - FFO leverage below 5.5x on a sustained basis;

  - Higher EBITDA with free cash flows consistently above EUR50
million per year;

  - Reduced exposure to loss-making sports rights leading to an
increase in the EBITDA margin above 20%;

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

  - FFO leverage sustainably above 6.5x;

  - EBITDA margin falling below 15%

  - Free cash flow margin falling towards zero or below.

  - CFO - capex over total debt below 5%

LIQUIDITY AND DEBT STRUCTURE

Sportradar has a strong liquidity profile as a result of its cash
reserves, available facilities and free cash flow generation. At
half year ending June 2020 Sportradar had cash and cash equivalents
of EUR84 million. The EUR420 million term loan B and EUR110 million
revolving credit facility equip Sportradar with sufficient funds to
pursue inorganic growth via M&A as well as providing security for
eventual short-term funding requirements. Finally, Fitch expects
the company to generate positive free cash flow over the next three
years.


[*] SWITZERLAND: Won't Extend Emergency Company Bankruptcy Steps
----------------------------------------------------------------
Michael Shields at Reuters reports that the Swiss government on
Oct. 14 said it will not extend beyond next week emergency measures
it imposed in April designed to prevent the coronavirus pandemic
from driving otherwise healthy companies into bankruptcy.

According to Reuters, it said the decree that suspended companies'
obligation to report overindebtedness will expire as planned on
Oct. 19.

"The (government) is convinced that there is a need for great
restraint when interfering with the economic cycle.  Relief for
debtors, for example a deferral, always means a burden for
creditors and for the entire economy.  Both interests must be
adequately taken into account, even in an emergency," Reuters
quotes the government as saying after a cabinet meeting.

The move reflects concern that government steps to prop up ailing
companies could create "zombie" firms with no real future once the
pandemic fades, Reuters notes.

Data compiled by creditor association Creditreform showed Swiss
corporate insolvencies fell by nearly 16% in the first half of the
year, Reuters discloses.




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

EMLAK KONUR: Fitch Affirms BB LongTerm IDRs, Outlook Negative
-------------------------------------------------------------
Fitch Ratings has affirmed Turkish residential developer Emlak
Konut Gayrimenkul Yatirim Ortakligi A.S.'s (Emlak Konut) Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB-'.
The Outlooks are Negative.

The ratings reflect the company's distinct business model, which is
underpinned by the revenue-sharing model (RSM). The RSM generates
guaranteed revenue, as well as a share of upside gains, while
passing nearly all design, building, financing and marketing risks
to developers. Under a priority agreement with Turkey's Housing
Development Administration (TOKI), the company can purchase land at
independently appraised values without a tendering process. This
gives Emlak Konut a significant competitive advantage. Despite the
turbulence of the Turkish economy, reduced interest rates have
boosted sales in 2020, which should help reduce comparatively high
leverage levels.

Emlak Konut is exposed to volatile housing demand and prices,
although the RSM mitigates some of this risk. The company is also
exposed to regulatory and political risks and to contractor
failure, although this is mitigated by a number of protections.

The Negative Outlook reflects that on the Turkish sovereign
(BB-/Negative).

KEY RATING DRIVERS

Volatile Operating Environment Continues: On 21 August Fitch
revised the Outlook on Turkey's IDRs to Negative from Stable and
affirmed the IDRs at 'BB-'. The Turkish economy and the lira remain
volatile, with Fitch forecasting GDP to contract 3.9% in 2020,
although growing more than 5.0% in 2021. The lira has depreciated
more than 30% since the beginning of the year and shows little sign
of stabilising. Turkey also remains vulnerable to geopolitical
risks.

Low Interest Rates Fueling Sales: The Central Bank of Turkey has
made multiple interest rate cuts, which has resulted in real
interest rates falling from 8.3% in June 2019 to minus 3.5% in
August 2020. These measures, along with company incentive
programmes, have accelerated housing sales. In the first half of
the year, sales and pre-sales exceeded TRY10.2 billion, double the
company's 2020 target. On September 24, the government increased
the interest rates by 200bp, which may slow sales. Nevertheless,
with a young, growing and increasingly urban population and a
housing shortage, demand for housing remains strong.

Low-risk RSM Anchors Business: Emlak Konut generates most of its
revenue and EBITDA through the RSM, which provides revenue
visibility and protects the company from short-term market
volatility. Under the RSM, the company passes nearly all project
development risk to contractors, including design, build, finance
and sales. Contractors must guarantee Emlak Konut a minimum
revenue, which must be paid even if project revenue falls short,
and share any upside gains with the company under an agreed ratio.
Emlak Konut only provides land to the project.

Total project returns have historically exceeded the minimum
revenue by more than 2.5x. In some cases, the company will develop
its own projects under the turnkey model, only passing building
risk to contractors, but the RSM will be the dominant model over
the medium term.

Project Control Retained: Once a project is underway, the company
retains strong control over the project, supervising the building
process and collecting and distributing project cash flows,
including the contractor's revenue share at defined milestones.
This control also provides the flexibility to alter projects if
necessary. For example, the company delayed the latter stages of
three projects in 2019, which will resume once it feels demand is
sufficient. The company can also cancel tenders for any reason,
including if bids fall short.

TOKI Relationship Fundamental: Emlak Konut's largest shareholder is
TOKI with a 49.4% holding, including all A shares. The exclusive
priority agreement with TOKI allows the company buy land from TOKI
at independently appraised values with no tendering process. Having
ready access to significant and attractive land parcels is a
significant competitive advantage. TOKI benefits from Emlak Konut's
dividend and land payments, which helps TOKI fund its own, mainly
low-income developments. A deterioration in relations with TOKI
would materially impair Emlak Konut's business, but this risk
appears low given the arrangement is mutually beneficial.

Substantial Land Bank: Emlak Konut holds land of more than 2.9
million square metres with a value of more than TRY3.9 billion
(1H20), nearly all in or around Istanbul. The strength of the land
bank is crucial to the company's ability to continue to attract
strong contractors to its tenders and sustain sales to consumers.
Emlak Konut is under no obligation to buy land from TOKI and can
only return parcels to TOKI for an updated independent valuation,
given legitimate reasons are met.

Exposure to Contractor Performance: As the RSM passes nearly all
development risk to contractors, contractor failure is a risk.
Emlak Konut mitigates this through several means. Firstly, a
two-stage bidding process largely ensures only financially viable
contractors win tenders. The preferred bidder must provide a down
payment of around 10% of the minimum revenue amount, as well as a
letter of credit equating to around 6% of the total estimated
project revenue. The company can step in if it has concerns about a
contractor's ability to complete a project and carry out the rest
of the project under the turn-key model. There have been no project
defaults to date.

Higher Debt: Emlak Konut significantly increased debt in 2020 with
Fitch funds from operations (FFO) leverage forecast to reach 5.7x
by year end, taking advantage of low interest rates. Debt has been
steadily increasing -FFO leverage was only 1.1x at end-2017 -
reflecting difficult markets and company growth. With strong
housing sales in 1H20, Fitch expects this level to steadily fall,
although this will take time given the difference between when
sales are booked and accounted for.

The weighted average interest rate is now 10.6% (end-2019: 17.7%).
The company used the proceeds to refinance some debt, but will also
use it buy land, recently acquiring a significant plot near the
Istanbul end of the planned Istanbul Canal. Liquidity remains a
risk due to significant swings in working capital, the short-term
nature of debt, as well as dividend payments, which were TRY118
million in 2019, down from TRY644 million in 2018.

DERIVATION SUMMARY

Emlak Konut does not have a direct peer. While the company's
turn-key model is akin to most home builders, the RSM is unique,
ensuring a minimum guaranteed revenue amount and share of upside,
but also passing nearly all development risks to private
contractors. In addition, the priority agreement with TOKI --
unique among rated home builders - provides the company with access
to significant and desirable parcels of land that other local
developers do not have.

Emlak Konut is of similar size to UK-based Miller Homes
(BB-/Stable) and Germany-based Consus Real Estate AG (B-/Stable),
but smaller than Russia's PJSC LSR Group (B+/Stable) and PJSC PIK
Group (BB-/Stable). Emlak Konut operates with higher FFO margins
that have historically exceeded 50%, while most other rated peers
tend to be less than 20%. This reflects the effect of the RSM.

Emlak Konut historically had FFO leverage of under 1.0x, but 2020
projected FFO leverage is 5.7x, which is similar to Consus.
Dubai-based Azizi (B/Stable) has mainly been funded by equity, but
management is now using debt to finance projects and negative
working capital. FFO leverage is therefore forecast to average 3.3x
between 2020 and 2023.

Emlak Konut operates in a much more volatile operating environment
than rated peers, such as Consus in Germany and Miller Homes in the
UK. Azizi is in a challenging sector, but mainly because of an
excessive housing supply over demand. While Turkey has a material
housing deficit and a growing population, the economy remains
highly volatile.

KEY ASSUMPTIONS

  - Sustainable EBITDA margin above 30% despite double digit
decrease in turnover in 2020

  - FFO gross leverage averaging 5.5x on the back of land
acquisitions

  - Negative working capital assumptions for 2020 and 2021

  - Continued negative free cash flow

  - Stable dividend policy averaging 50% of net income

  - Relationship with Toki unchanged

RATING SENSITIVITIES

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

  - Business and geographical diversification reducing the inherent
risk of the Turkish housing market.

  - Consistently strong GDP growth, along with political
stabilisation.

  - Unless the above developments take place, Fitch does not expect
to upgrade the rating, as Emlak Konut's operations are exclusively
in Turkey and the Turkish sovereign rating and domestic operating
environment will constrain the rating.

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

  - Deterioration of the operating environment and downgrade of the
sovereign rating.

  - Sustained erosion of profit due either to weak housing
activity, meaningful and continued loss of market share, and/or
land, resulting in margin contraction and weakened credit metrics,
including net debt to capitalisation above 50% on a sustained
basis

  - FFO adjusted gross leverage above 4.5x on a sustained basis

  - Gross debt-to-work-in-progress (WIP) ratio consistently above
50%

  - Any material change in the relationship with TOKI causing
deterioration in Emlak Konut's financial profile and financial
flexibility.

  - Deterioration in liquidity profile over a sustained period.

  - Order backlog to WIP below 150% over a sustained period

  - EBITDA margin below 30% for a sustained period

LIQUIDITY AND DEBT STRUCTURE

Emlak Konut increased debt in 1H20, taking advantage of low
interest rates. This extended the weighted average debt maturity
profile to just over 2.5 years (H12020) from 1.4 years at end-2019.
The weighted average interest rate fell to 10.6% from 17.7% during
the same period. Although improved, the debt maturity profile
remains relatively short-term in nature, reflecting the limited
availability of long-term funding from domestic banks. This is
common among Turkish corporates but exposes the company to systemic
liquidity risk.

The debt issuances improved the company's cash position at 1H20,
with around TRY1.5 billion of available cash, but Fitch expects the
company to use the cash to acquire land and it bought a significant
land parcel valued at TRY1.4 billion in July. Liquidity will come
under pressure as Fitch forecasts negative free cash flow in 2020
and dividends of around TRY235 million.

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
===========================

ASPINAL OF LONDON: Creditors Back Company Voluntary Arrangement
---------------------------------------------------------------
Huw Hughes at Fashion United reports that British luxury retailer
Aspinal of London has received the green light from creditors to go
ahead with its proposed company voluntary arrangement (CVA),
meaning all 10 of its stores will be permanently closed.

According to Fashion United, a source close to the retailer told
Drapers the CVA was "comfortably" approved by over 75% of its
creditors last week.

In its most recent quarterly figures published in January, Aspinal
of London reported widening losses despite increasing revenue,
Fashion United discloses.

The company called in advisory firm KPMG to launch its CVA proposal
back in September after being "profoundly impacted" by the Covid-19
pandemic and months-long store closures, Fashion United relates.
None of its 10 stores had reopened after the UK lockdown was lifted
on June 15, Fashion United notes.

Founded in 2004, the luxury handbag and accessories retailer
employs over 300 staff and has 10 stores across the UK as well, an
ecommerce business, and also operates concessions in Harrods and
Selfridges.


CAPRI ACQUISITIONS: S&P Withdraws 'B-' Rating on Sr. Sec. Debts
---------------------------------------------------------------
S&P Global Ratings withdrew the issuer ratings on Capri
Acquisitions Bidco Limited and Capri Finance LLC and its 'B-' issue
ratings on the group's senior secured facilities.

Following the completion of the acquisition of CPA Global, by
Clarivate Analytics on Oct. 1, 2020, the outstanding debt at Capri
Acquisitions Bidco Limited and Capri Finance LLC has been repaid.


DELTIC GROUP: Seeks Emergency Buyer to Avert Potential Collapse
---------------------------------------------------------------
Mark Kleinman at Sky News reports that one of Britain's biggest
nightclub operators is seeking an emergency buyer after seeing its
finances hammered by the coronavirus pandemic.

Sky News has learnt that Deltic Group, which owns the Atik and
Pryzm chains, has asked the accountancy firm BDO to identify new
investors who could help avert its potential collapse.

According to Sky News, sources said that BDO had begun contacting
prospective investors in the last few days, but added that the
search for new funding was being undertaken at the worst possible
time for the company.

The Night Time Industries Association recently warned that 60% of
the UK's nightclubs could face closure without further government
support during the next two months, Sky News relates.

Deltic itself has begun consulting on roughly 400 job losses, with
Mr. Marks telling the FT last month that that figure could rise to
1,000, Sky News discloses.

In a statement issued to Sky News, a Deltic spokeswoman said: "The
unprecedented impact of the COVID-19 pandemic on the UK's
late-night sector has been well-publicised.

"Deltic's board of directors is working with advisers BDO to assess
all options available to the company, including the possibility of
bringing in new equity partners.

"Deltic also continues to participate in discussions with the
government regarding potential further support for the late-night
sector during this difficult period."

Deltic employs 2,000 people and trades from 52 venues across the
UK.  The company is privately owned by its management team, led by
chief executive Peter Marks, and a number of other individual
shareholders.


FONTWELL SECURITIES 2016: Fitch Affirms B+ Rating on 3 Tranches
---------------------------------------------------------------
Fitch Ratings has upgraded three classes of Fontwell Securities
2016 Limited and affirmed all other classes. Six classes have been
removed from Rating Watch Negative (RWN). The Outlooks on the class
A to I and P to R notes are Negative. The Outlooks on the remaining
tranches, except the class S tranche which does not have an
Outlook, are Stable.

RATING ACTIONS

Fontwell Securities 2016 Limited

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

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

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

Class D; LT AA-sf Affirmed; previously at AA-sf

Class E; LT AA-sf Affirmed; previously at AA-sf

Class F; LT AA-sf Affirmed; previously at AA-sf

Class G; LT AA-sf Affirmed; previously at AA-sf

Class H; LT AA-sf Upgrade; previously at A+sf

Class I; LT AA-sf Upgrade; previously at A+sf

Class J; LT A-sf Upgrade; previously at BBB+sf

Class K; LT BBB+sf Affirmed; previously at BBB+sf

Class L; LT BBB+sf Affirmed; previously at BBB+sf

Class M; LT BB+sf Affirmed; previously at BB+sf

Class N; LT BB+sf Affirmed; previously at BB+sf

Class O; LT BB+sf Affirmed; previously at BB+sf

Class P; LT B+sf Affirmed; previously at B+sf

Class Q; LT B+sf Affirmed; previously at B+sf

Class R; LT B+sf Affirmed; previously at B+sf

Class S; LT CCCsf Affirmed; previously at CCCsf

TRANSACTION SUMMARY

The transaction is a granular synthetic securitisation of partially
funded credit default swaps (CDS) referencing a static portfolio of
secured loans granted to UK borrowers in the farming and
agriculture sector. The loans were originated by AMC plc, a fully
owned subsidiary of Lloyds Bank plc (Lloyds, A+/Negative/F1).

The notes' ratings address the likelihood of a claim being made by
the protection buyer under the CDS by the end of the protection
period in December 2024, in accordance with the documentation.

KEY RATING DRIVERS

Direct Subsidy Dependency: Fontwell Securities 2016 Limited
references a static portfolio of secured loans granted to UK
borrowers in the farming and agriculture sector. This sector is
highly dependent on direct subsidies, which are currently provided
by the EU. These will be replaced by UK subsidies after Brexit.
Fitch places its subsidy support threshold (SST) at the UK's Issuer
Default Rating (IDR; AA/Negative). The SST constrains the maximum
achievable rating in the capital structure. Currently, class A to I
ratings are constrained by the UK's IDR. The Negative Outlooks on
the class A to I notes reflect that on the UK's IDR.

Low Default Risk: The transaction has performed better than Fitch's
expectations, with 90+ days delinquencies at around 0.6% and credit
events at around 0.4% of the outstanding portfolio balance, which
is significantly lower than the expected annual average probability
of default (PD) for the SME sector in the UK over the next five
years. Fitch continues to assign a one-year average PD (based on 90
days past due) of 2% to all borrowers in the portfolio, due to
risks associated with Brexit.

Increased Credit Enhancement: The affirmations and upgrades reflect
increased credit enhancement due to the transaction deleveraging
since October 2019. The class A notes have partially amortised by
GBP104 million since then, leading to an increase in credit
enhancement available for all notes except class S. However, the
ratings on the class A to I notes are capped by the UK's IDR.

For the class J and K tranches, the ratings are one notch below the
best pass ratings. However, Fitch deems the loss cushion at the
best pass rating small and not warranting an upgrade to one notch
above the respective current ratings, considering the volatility
associated with the coronavirus pandemic and Brexit.

Junior Tranches Off RWN: The portfolio has continued to display a
low level of arrears and credit events. The class M to O tranches
have a sufficient cushion against the portfolio loss rate and
considering the continued amortisation, Fitch has removed these
tranches from RWN and assigned Stable Outlooks.

The agency has also removed the class P to R tranches from RWN,
considering that CE for these classes can absorb losses of the
portfolio, even with the loan-to-value (LTV) floor at 50% to
account for collateral dilution risk. This renders these classes
less likely to be downgraded in the short term, and supports their
removal from RWN. However, the Negative Outlook on the class P to R
tranches reflects the limited CE, ranging from 1.1% to 1.4%, and
the downward pressure on the portfolio quality in the longer term
associated with the pandemic and Brexit.

CE for the class S notes has reduced slightly as a result of a
reduction in the class T tranche balance following the initial loss
for credit events, which offset the positive impact of
amortisation. The final loss is yet to be determined and could
change the loss level, noting that historically there have been no
losses recorded on these loans in the originator's book.

Limited Collateral Dilution Risk: The eligibility criteria and the
originator's policies set the maximum LTV at 60%, calculated on a
borrower basis. However, available mortgage collateral secures all
AMC exposure including debt outside of the transaction. Any
recoveries will be shared pro rata across a borrower's different
AMC debts. The current LTV in the portfolio is around 31% and has
been fairly stable since closing, but any additional lending could
reduce the collateral share for the securitised exposures.

Fitch has stressed the LTV to 50% for loans with LTVs under 50%.
The vast majority of available collateral is over agricultural
land. In the recovery analysis, Fitch has applied its commercial
property haircuts, which at the 'AA' level are 75% and would
reverse most of the increase experienced over the last 10 years.

Limited Obligor Concentration: The portfolio is diverse, with a
total 7,314 loans. The largest obligor and top 10 contribute below
0.4% and 4.0% of the total portfolio balance, respectively.

Single Industry Exposure: All the borrowers in the reference
portfolio are exposed to the UK farming and agriculture sector.
Accordingly, Fitch continues to apply a bespoke correlation of
10%.

RATING SENSITIVITIES

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

  - A decrease in the default rate at all rating levels by 25% of
the portfolio's mean default rate, and an increase of the recovery
rate by 25% could result in an upgrade of no more than four
notches.

  - CE ratios increase as the transaction deleverages, fully
compensating credit losses and cash flow stresses that are
commensurate with higher rating scenarios, all else being equal.
This takes into account a weaker asset performance outlook due to
the coronavirus crisis.

  - The class A to I notes' ratings are currently constrained at
the UK's IDR. As such, Fitch does not expect to upgrade the class A
to I notes to above the UK's IDR.

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

  - In the coronavirus downside scenario, an increase in the
default rate at all rating levels by 25% of the portfolio's mean
default rate, and a decrease of the recovery rate by 25% could
result in a downgrade of no more than four notches across the
capital structure, with a greater impact on the more junior
tranches.

  - A longer-than-expected coronavirus crisis that weakens
macroeconomic fundamentals and the lending market in the UK beyond
Fitch's current base case. CE ratios cannot fully compensate the
credit losses and cash flow stresses associated with the current
ratings scenarios, all else being equal. This takes into account a
weaker asset performance outlook due to the coronavirus crisis.

  - A downgrade of the UK sovereign's Long-Term IDR could lower the
maximum achievable structured finance rating for the transaction.

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 not conducted any check on the consistency and
plausibility of the information it has received about the
performance of the asset pools and the transaction. 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

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.


KONDOR FINANCE: Fitch Assigns B(EXP) Rating on New Unsec. Notes
---------------------------------------------------------------
Fitch Ratings has assigned Kondor Finance plc's proposed loan
participation notes (LPNs) an expected senior unsecured 'B(EXP)'
rating with a Recovery Rating (RR) of 'RR4'.

The LPNs will be issued by Kondor Finance on a limited recourse
basis for the sole purpose of funding a loan to National Joint
Stock Company Naftogaz of Ukraine (Naftogaz, B/Stable). The
expected senior unsecured rating is in line with Naftogaz's Issuer
Default Rating (IDR). The proceeds from the loan are expected to be
used by Naftogaz for general corporate purposes, including for the
prepayment of existing financial indebtedness in connection with a
tender offer launched by Naftogaz on a portion of 2022 and 2024
notes.

The final rating is contingent upon the receipt of final
documentation conforming materially to information already received
and details regarding the amount and tenor of the notes.

Naftogaz's IDR is equalised with that of Ukraine (B/Stable) under
Fitch's Government-Related Entities Rating Criteria, reflecting the
company's strong links with the sovereign and Fitch's assessment of
the company's Standalone Credit Profile (SCP) at 'b-'.

KEY RATING DRIVERS

'B(EXP)' Notes Rating: The LPNs are rated at the same level as
Naftogaz's IDR. The loan from Kondor Finance to Naftogaz will
constitute a direct, unconditional and unsecured obligation of
Naftogaz and will rank at least pari passu with other unsecured and
unsubordinated creditors of Naftogaz.

Noteholders will rely on the credit and financial standing of
Naftogaz in respect of payments under the notes. Noteholders will
benefit from the change-of-control provision and certain financial
covenants, including a net debt-to-EBITDA ratio of 3x.

'b-' SCP: Naftogaz's SCP captures uncertainties around the
potential volatility of its business and financial profiles
following the unbundling of the transit business from 2020. The SCP
also captures the likely deterioration in Naftogaz's financial
profile as Fitch expects lower earnings in 2020 due to
significantly weaker gas prices, macro-economic challenges and
uncertainty over domestic price regulation and collectability of
receivables amid a weaker domestic economy. Fitch therefore expects
leverage to increase, albeit with manageable liquidity.

FX Exposure: Naftogaz is subject to FX risk, as around 73% of its
debt related to Eurobonds at end-1H20 was denominated in foreign
currencies (US dollars and euros), while most of its revenue is
denominated in the Ukrainian hryvnia. Naftogaz is also exposed to
currency risk through its imports of natural gas, which it
partially passes onto unregulated market participants (not subject
to the public service obligations (PSO) regime).

Regulatory Risks: Naftogaz is obliged to supply gas to some heat
generating customers until May 1, 2021 under the PSO regime.
However, the removal of a substantial portion of Naftogaz's PSOs as
a result of increased liberalisation of the gas market from 1
August 2020 allows the company to compete for direct supplies to
households, which could improve the collection of receivables.
Naftogaz also estimates that the state owes it around UAH32 billion
compensation under PSO for supplying gas to customers at
below-market prices, which the company expects to receive in 2020.

Covenants Pressure: Further hryvnia depreciation against major
currencies (the hryvnia has lost 20% against the US dollar so far
in 2020), additional weakening of gas prices or inability to
receive the PSO compensation within 2020 may lead to a significant
deterioration in the financial profile and pressure the Eurobond
incurrence covenant of net debt/EBITDA of 3.0x.

Ratings in Line with Sovereign: Fitch views Naftogaz's overall
linkage with the sovereign as strong, which is reflected in a score
of 40 under its Government-Related Entities (GRE) Rating Criteria.
It reflects its strong assessment of status, ownership and control,
record of support and expectations and financial implications of a
potential default of Naftogaz. Fitch views the socio-political
implications of a potential default of Naftogaz as very strong.

Strategic Importance: Naftogaz is 100% state-owned and
strategically important as Ukraine's largest natural gas
production, wholesale and trading company. Dividends, taxes and
levies paid by Naftogaz represented 13.7% of Ukraine's state budget
in 2019. The share of state-guaranteed debt decreased to 5% at
end-2019 from 28% at end-2018 due to repayment of its debt to the
World Bank in May 2019.

The government provided about UAH141 billion in direct support to
Naftogaz in 2012-2015. Naftogaz's financial performance is closely
monitored by the IMF, Ukraine's main lender, which incentivises the
government to ensure that Naftogaz is adequately funded.

Focus on Domestic Markets: Naftogaz will focus on domestic gas
sales, storage, the sale of domestic petrol products and liquefied
natural gas (LNG), gas production and service legal agreements with
the newly unbundled gas transit company from 2020. Pending gas
price recovery, management plans financing of investment projects
to maintain the current level of production and increase the
resource base after gas prices rebound. Naftogaz accounts for 78%
of Ukraine's domestic gas production.

DERIVATION SUMMARY

Naftogaz's rating is at the same level as that of Ukraine under its
GRE rating criteria. Naftogaz operates in a weaker operating
environment than other Fitch-rated EMEA gas transmission and
distribution companies, such as eustream, a.s. (A-/Stable) and
KazTransGas JSC (BBB-/Stable). The unbundling has affected the
company's EBITDA and business profile, making Naftogaz a pure
gas-producing and wholesale supply company. Naftogaz's 'b-' SCP
reflects cash flow volatility as its forecasts are sensitive to the
continued pressure on domestic gas prices in Ukraine and the
ability to collect accounts receivable.

KEY ASSUMPTIONS

Limited revenues from transit-related fees in 2020-2023

No earn-out fees for unbundled assets

Natural gas prices dynamics in 2020-2023 in line with Fitch's price
deck

Domestic gas sales volumes to slightly decline in 2020-2023

Average capex of USD1 billion annually in 2020-2023

RATING SENSITIVITIES

Factors That May, Individually or Collectively, Lead to Positive
Rating Action/Upgrade

Positive rating action on Ukraine would be reflected on Naftogaz's
rating assuming that Naftogaz's SCP is up to three notches below
that of the sovereign and the links with the state do not weaken.

Factors That May, Individually or Collectively, Lead to Negative
Rating Action/Downgrade

Negative rating action on Ukraine would be reflected on Naftogaz.

Significant deterioration of Naftogaz's financial profile following
the planned reorganisation, with SCP falling more than three
notches below that of the sovereign.

Unremedied liquidity issues.

Rating Sensitivities for Ukraine (as of September 4, 2020)

The main factors that could, individually or collectively, lead to
positive rating action/upgrade are:

  - Public Finances: General government debt/GDP returning to a
firm downward path over the medium term, for example due to
post-coronavirus fiscal consolidation

  - External Finances: Reduction in external financial
vulnerabilities, for example due to a sustained increase in
international reserves, strengthened external balance sheet and
greater financing flexibility.

  - Macro and Structural: Increased confidence that progress in
reforms will lead to improvement in governance standards and higher
growth prospects while preserving improvements in macroeconomic
stability.

The main factors that could, individually or collectively, lead to
negative rating action/downgrade:

  - Macro and External Finances: Increased external financing
pressures, sharp decline in international reserves or increased
macroeconomic instability, for example stemming from extended
delays in the disbursements from the IMF programme due to
deterioration in the consistency of the policy mix and/or reform
reversals.

  - Public Finances: Persistent increase in general government
debt, for example due to a more pronounced and longer period of
fiscal loosening, economic contraction or currency depreciation.

  - Structural: Political/geopolitical shocks that weaken
macroeconomic stability, growth prospects and Ukraine's fiscal and
external position.

LIQUIDITY AND DEBT STRUCTURE

Manageable Liquidity, No Near-Term Maturities: At the beginning of
2020, the company refinanced the majority of its short-term
maturities to 2022. The nearest, largest maturities of UAH11
billion are in 2022 and partially comprise US dollar-denominated
bonds.

Around USD1.0 billion of USD2.5 billion of debt is comprised of
bank borrowings from Ukrainian state banks such as JSC State
Savings Bank of Ukraine (Oschadbank) (B/Stable), Public Joint-Stock
Company Joint Stock Bank Ukrgasbank (B/Stable) and JSC The State
Export-Import Bank of Ukraine (Ukreximbank) (B/Stable), while the
remaining USD1.5 billion is senior unsecured euro- and US
dollar-denominated bonds maturing in 2022-2026.


POUNDSTRETCHER: Plans to Open 50 New Stores Next Year Amid CVA
--------------------------------------------------------------
Tom Pegden at Business-Live reports that the Poundstretcher
discount chain wants to open 50 new stores next year, despite being
in the midst of a store closure programme as it tries to cut
costs.

According to a poster produced by the business, it is on the
look-out for dozens of new sites to open in 2021 -- ranging from
existing shop units to development sites in town centres and
out-of-town retail parks, Business-Live relates.

The poster said the business is looking for freehold or leasehold
properties, with A1 planning consent "preferred but not essential"
and "temporary and flexible arrangements considered", Business-Live
notes.

It also offers a GBP500 bonus for successful tip-offs,
Business-Live states.

It comes as creditors of the Leicestershire headquartered business
have agreed to a company voluntary arrangement (CVA) to help
Poundstretcher offload underperforming outlets, realign its head
office and pave the way for investment in its estate, Business-Live
relays.

Despite speculation that half its 450 stores could go, one retail
industry expert told Business-Live such wholesale closures could
make a business the size of Poundstretcher unsustainable.

He understood the number of stores in line for closure would be
closer to 100 -- with around half of those already shut, according
to Business-Live.

He also estimated the business had saved more than GBP20 million
through the 12-month business rates holiday -- but warned it would
need to find that cash next year, assuming the business rate
holiday period was not extended, Business-Live discloses.

A spokeswoman for KPMG, meanwhile, which is handling the CVA, said
they had no update, Business-Live notes.

However, in July, it was reported that the futures of 253 stores
would "depend on the commercial merits of each store" in
collaboration with landlords, Business-Live recounts.

It is understood that 5,500 people were employed by the group as a
whole at the time of the CVA, Business-Live states.

The deal also secured rent cuts of between 30% and 40% for 84 of
its 450 stores, while it was agreed around 94 stores would continue
to pay current rents, Business-Live relates.

Poundstretcher opted to launch the CVA after the impact of Covid-19
on store footfall "exacerbated" problems after a decline in
profitability in recent years.


RMAC SECURITIES 2006-NS4: Fitch Affirms BB+ on Class B1c Debt
-------------------------------------------------------------
Fitch Ratings has affirmed RMAC Securities No. 1 Plc 2006-NS3,
2006-NS4 and 2007-NS1. It has removed five tranches from Rating
Watch Negative (RWN) and revised the Outlooks on another five
classes of notes to Negative from Stable.

RATING ACTIONS

RMAC Securities No.1 Plc (Series 2006-NS3)

Class A2a XS0268014353; LT AAAsf Affirmed; previously at AAAsf

Class M1a XS0268021721; LT AAsf Affirmed; previously at AAsf

Class M1c XS0268024071; LT AAsf Affirmed; previously at AAsf

Class M2c XS0268027769; LT A+sf Affirmed; previously at A+sf

RMAC Securities No.1 Plc (Series 2006-NS4)

Class A3a XS0277409446; LT AAAsf Affirmed; previously at AAAsf

Class B1a XS0277450838; LT BB+sf Affirmed; previously at BB+sf

Class B1c XS0277453691; LT BB+sf Affirmed; previously at BB+sf

Class M1a XS0277411004; LT AA-sf Affirmed; previously at AA-sf

Class M1c XS0277437223; LT AA-sf Affirmed; previously at AA-sf

Class M2a XS0277457841; LT A+sf Affirmed; previously at A+sf

Class M2c XS0277445671; LT A+sf Affirmed; previously at A+sf

RMAC Securities No.1 Plc (Series 2007-NS1)

Class A2a XS0307493162; LT AAAsf Affirmed; previously at AAAsf

Class A2b XS0307489566; LT AAAsf Affirmed; previously at AAAsf

Class A2c XS0307505601; LT AAAsf Affirmed; previously at AAAsf

Class B1a XS0307500479; LT BB+sf Affirmed; previously at BB+sf

Class B1c XS0307512219; LT BB+sf Affirmed; previously at BB+sf

Class M1a XS0307496264; LT A+sf Affirmed; previously at A+sf

Class M1c XS0307506674; LT A+sf Affirmed; previously at A+sf

Class M2c XS0307511591; LT Asf Affirmed; previously at Asf

TRANSACTION SUMMARY

The RMAC Series are securitisations of buy-to-let (BTL) and
non-conforming residential mortgages originated by GMAC-RFC (now
called Paratus AMC).

KEY RATING DRIVERS

Excessive Counterparty Exposure, Off RWN

The removal of RWN follows a similar rating action on account bank
Barclays Bank Plc's Long-Term Issuer Default Rating (IDR). The
affected tranches' ratings are limited by Barclays Bank Plc's
Long-Term IDR. This is because Fitch believes that the lack of a
mandatory switch to a sequential amortisation of the notes in the
late stages of the transactions could lead to an excessive
dependence on the reserve fund held with the account bank. The
reserve fund could be the only source of credit enhancement (CE) in
scenarios where the collateral performance deteriorates but remains
within the conditions for pro-rata payments.

Coronavirus-related Additional Assumptions

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

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 of about 1.1x at
'AAAsf' in each transaction. The additional coronavirus assumptions
are more modest for higher rating levels as the corresponding
rating assumptions are already meant to withstand more severe
shocks.

Outlooks Negative for Junior Notes

The class M2c notes of RMAC 2006-NS3, class M2a and M2c of RMAC
2006-NS4 and class M1a and M1c of RMAC 2007-NS1 have been assigned
a Negative Outlook to reflect that on the account bank's Long-Term
IDR.

The Outlook revision on the class B1a and B1c notes of RMAC
2006-NS2 and class M2c, B1a and B1c of RMAC 2007-NS1 reflects their
greater susceptibility to the increased risk of collateral
underperformance given their relatively junior ranking in the
revenue and principal funds allocation and their limited credit
enhancement.

Limited Impact of Payment Holidays

Borrowers on payment holiday in RMAC 2006-NS3, RMAC 2006-NS4 and
RMAC 2007-NS1 represented 5.4%, 4.4% and 5.9% of the portfolio
balances as of end-August 2020. Payment holidays in RMAC
transactions are decreasing in line with the trend observed in peer
transactions. Given current levels, payment holidays do not expose
the transactions to liquidity risk, even when testing for higher
future take-ups.

RATING SENSITIVITIES

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

Stable to improved asset performance driven by stable delinquencies
and defaults would lead to increasing CE levels and, potentially,
upgrades. Fitch tested an additional rating sensitivity scenario by
applying a decrease in the FF of 15% and an increase in the
recovery rate (RR) of 15% and found the ratings of RMAC 2006-NS4's
and RMAC 2007-NS1's subordinated notes could be upgraded by up to
three notches.

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

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

As outlined in "Fitch Ratings Coronavirus Scenarios: Baseline and
Downside Cases", Fitch considers a more severe downside coronavirus
scenario for sensitivity purposes whereby a more severe and
prolonged period of stress is assumed with a halting recovery from
2Q21. Under this scenario, Fitch assumed a 15% increase in WAFF and
a 15% decrease in WARR. The results indicate downgrades of up to
three notches in RMAC 2006-NS3 and up to two rating categories in
RMAC 2006-NS4 and 2007-NS1.

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

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

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

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

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. There were no findings that affected
the rating analysis. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

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

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

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

RMAC 2006-NS3, 2006-NS4 and 2007-NS1 each has an ESG Relevance
Score of 4 for Human Rights, Community Relations, and Access &
Affordability due to exposure to accessibility to affordable
housing which has a negative impact on the credit profile, and is
relevant to the ratings in conjunction with other factors.

RMAC 2006-NS3, 2006-NS4 and 2007-NS1 each has an ESG Relevance
Score of 4 for Customer Welfare - Fair Messaging, Privacy & Data
Security due to exposure to compliance risks including fair lending
practices, mis-selling, repossession/foreclosure practices,
consumer data protection (data security), which has a negative
impact on the credit profile, and is relevant to the ratings 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.


WEIR GROUP: S&P Affirms 'BB+/B' ICRs on Oil and Gas Division Sale
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' long-term and 'B' short-term
issuer credit ratings on U.K.-based engineering equipment producer
The Weir Group PLC (Weir).

The stable outlook reflects the company's intention to use the
proposed disposal's proceeds for debt reduction. S&P therefore
expects it will be able to maintain its funds from operations (FFO)
to debt consistently above 30% from 2021.

The proposed sale of Weir's entire Oil and Gas division will result
in reduced revenue but also less margin volatility for the group,
with an increased focus on the mining sector.  S&P said, "We
believe that the proposed transaction (expected to be completed by
the end of 2020) will allow Weir to continue its strategic
transformation focusing on the premium mining sector and its supply
chain. The Oil and Gas division sale represents a further step
toward that goal, following the acquisition of ESCO in 2018 and the
sale of the Flow Control division in 2019. We believe that the
transaction will likely reduce volatility in the group's financial
results, because Weir Minerals and ESCO are innately more stable
businesses and their performance is more strongly reliant on the
aftermarkets services (about 70% and 95% of the divisions revenue,
respectively), which we view as more resilient than the original
equipment sales business. In addition, the disposal of the Oil and
Gas business will positively affect the group's profitability, as
the division represents the lowest margins and highest
margin-volatility segment when compared with Weir Minerals and
ESCO. However, the proposed disposal will result in smaller scale
and diversification for the group, since in fiscal year (FY) ending
Dec. 31, 2019, the Oil and Gas division's reported revenue was
about GBP600 million (23% of total revenue) and reported operating
profit (before exceptional items and intangibles amortization) was
about GBP37 million. As a result of the sale, we forecast S&P
Global Ratings-adjusted EBITDA margins will improve to 17%-18% from
FY2021."

S&P said, "We expect that the net proceeds of the sale will be used
to reduce adjusted leverage, and we are therefore revising our
assessment of Weir's financial risk profile to intermediate from
significant.  Weir is expected to receive net cash proceeds of
about $405 million (approximately GBP314 million). We believe that
Weir will use this cash to repay outstanding debt, thus reducing
adjusted leverage. Therefore, we forecast that adjusted leverage
will decrease to about 2.4x-2.6x by the end of 2021, and will
remain at similar levels over our forecast horizon, paired with an
improved FFO-to-debt ratio of about 32%-33% from FY2021.

"We continue to believe that the current weaker operating
environment is pressuring the group's performance.  Following the
latest downgrade on Weir (see "The Weir Group Ratings Lowered To
'BB+'; Outlook Remains Stable," published April 7, 2020), we
believe that the COVID-19-related pressures--paired with lower
commodity prices--remain, and will continue to weigh on the group's
performance. In the first half of 2020, the group's reported
revenue was about 18% lower than the same period in 2019 (on a
constant currency basis), with reported operating profit about 22%
down, although operating margins were only 90 basis points (bps)
lower than the previous year and cash flow generation improved,
thanks to management's cost-cutting initiatives, such as delaying
dividends and reducing capital expenditure (capex). Although the
group has recently been able to refinance its revolving credit
facility (RCF) and term loan, around GBP640 million of outstanding
debt is maturing at the beginning of 2022. However, as a result of
the proposed sale of the Oil and Gas division, from FY2021 we
expect an improvement in adjusted margins and credit metrics, which
will support the group's financial risk profile."

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."

The stable outlook reflects S&P's expectation that, following the
proposed sale of the Oil and Gas division, Weir will be able to
maintain sufficient headroom in its credit metrics for the rating
level, including FFO to debt above 30% from 2021 and debt to EBITDA
below 3x, despite the pandemic-induced difficult operating
environment.

Downside scenario

S&P would consider lowering the rating if:

-- Weir's credit metrics deteriorated, specifically if FFO to debt
were to fall to below 30% and debt to EBITDA were to increase above
3.0x on an adjusted basis with little prospect of a swift recovery;
or

-- There are delays to or challenges in the refinancing of the
group's next debt maturities at the beginning of 2022.

Upside scenario

S&P could consider a positive rating action over the mid-term if:

-- The group's adjusted EBITDA margin were to improve such that it
remained consistently above 18%, even at the bottom of the cycle,
as a result of increasing market share, organic growth and tight
cost control, supported by the stability of its aftermarket
services; and

-- Weir adheres to a conservative financial policy translating
into adjusted leverage consistently of about 2.0x.




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

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

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

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

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

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

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

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

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



                           *********


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

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

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

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

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

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


                * * * End of Transmission * * *