---

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

                          E U R O P E

          Wednesday, October 21, 2020, Vol. 21, No. 211

                           Headlines



F R A N C E

PARTS HOLDING: S&P Affirms 'B-' Rating on Senior Secured Debt


G E R M A N Y

CHEPLAPHARM ARZNEIMITTEL: Fitch Affirms B+ LT Issuer Default Rating
KME SE: Fitch Cuts LT IDR to 'CCC+' on Low EBITDA Margins


I R E L A N D

GTLK EUROPE: Fitch Gives BB+(EXP) on Upcoming USD Guaranteed Notes


K A Z A K H S T A N

KAZAKHMYS INSURANCE: Fitch Affirms BB- Insurer Fin. Strength Rating
NOMAD LIFE: S&P Raises ICR to 'BB+' on Improving Capital Buffers


L U X E M B O U R G

PLT VII FINANCE: Fitch Affirms 'B' LongTerm IDR, Outlook Stable


T U R K E Y

ULKER BISKUVI: S&P Assigns 'B+' LongTerm Issuer Rating


U N I T E D   K I N G D O M

ABOKADO: Rescue Deal Won't Save 150 Jobs
BREDBURY HALL: Enters Administration, 90+ Jobs Affected
DEBENHAMS PLC: Mike Ashley Makes Fresh Bid for Business
EAST WEST: Placed In Administration After Ruling Hits Solvency
INEOS GROUP: S&P Maintains 'BB' LongTerm ICR on Watch Negative

INTERNATIONAL PERSONAL: Fitch Cuts LT Issuer Default Rating to BB-
MANSARD MORTGAGES 2007-1: Fitch Affirms BB- Rating on Cl. B2a Debt
PREFERRED RESIDENTIAL 06-1: Fitch Cuts Class E1c Debt to Bsf
WESTDALE PRESS: Brexit, Covid-19 Pandemic Prompt Administration

                           - - - - -


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

PARTS HOLDING: S&P Affirms 'B-' Rating on Senior Secured Debt
-------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' ratings on France-based Parts
Holding Europe (PHE) and the senior secured debt issued by its
subsidiary Parts Europe SA. S&P also affirmed its 'B+' rating on
the company's super senior revolving credit facility (RCF), and
assigned a 'B-' rating to the proposed EUR280 million tap.

The negative outlook reflects S&P's view that, even if the planned
refinancing is executed smoothly, PHE's refinancing of the
remaining EUR304 million is dependent on capital markets remaining
open for highly leveraged companies.

Given the current volatile environment and the upcoming maturity of
PHE's RCF, S&P views the proposed refinancing as a necessary step
to smooth the group's debt maturity profile.   PHE intends to use
the proceeds from the proposed EUR280 million tap to the senior
secured notes due 2025 to repay part of its EUR581 million senior
secured notes due on May 1, 2022. This would leave PHE with EUR304
million of senior secured notes maturing in May 2022. Additionally,
PHE's EUR100 million super senior RCF matures on Feb. 1, 2022, as
long as the 2022 notes have not been fully repaid with debt
maturing after December 2024. Although the proposed transaction is
an important intermediate step in addressing PHE's maturities, the
residual 2022 debt represents a material risk, in our view. This is
because the evolving situation concerning the COVID-19 pandemic and
associated uncertainty may lead to volatile market conditions over
the next few months, with a risk of intermittent loss of market
access for highly leveraged companies.

S&P said, "Although, in our base case we assume that PHE will
complete all portions of the refinancing eventually, we could lower
the rating on PHE to the 'CCC' category if the refinancing of the
remaining 2022 notes is not addressed by the end of first-quarter
2021. This is because at this point the likelihood of a default
scenario within the ensuing 12 months would increase materially, in
our view.

"We expect PHE will generate positive FOCF in 2020, despite impacts
from the pandemic.   Preliminary data on PHE's third-quarter 2020
results suggest that the company's operating performance is
recovering faster than we anticipated, leading us to revise upward
our expectations for 2020. For instance, we are expect the
company's adjusted EBITDA will land closer to the 2019 level of
about EUR169 million. Management's countermeasures, including the
use of furlough schemes across its European operations, mitigated
revenue loss in the second quarter. Unless we see other episodes of
extensive lockdowns or rules preventing drivers from using their
cars, we expect PHE's sales will increase organically in
fourth-quarter 2020 by up to 5%-7%. This would be below growth
levels seen in third-quarter 2020, which have benefited from
postponement of demand during the lockdown. Overall, we forecast a
revenue decline of 2%-4% in 2020, leading to an S&P Global
Ratings-adjusted EBITDA margin of 8.5%-9.5%, only slightly down
from 9.5% in 2019 (which, however, included large one-off
restructuring charges of about EUR16 million related to the
turnaround of online business Oscaro, bought at end-2018). With
capital expenditure (capex) cut to EUR30 million-EUR35 million this
year from EUR40 million in 2019, we forecast S&P Global
Ratings-adjusted FOCF of EUR25 million-EUR30 million in 2020
compared with EUR11 million in 2019."

Although PHE's business fundamentals remain supportive, its highly
leveraged capital structure constrains the rating.  PHE should
continue to benefit from more favorable industry trends than for
typical auto suppliers. This is because auto parts distribution is
less cyclical than new car sales and depends primarily on the size
of the car park, its average age, and the mileage. This is partly
reflected in the stability of the company's S&P Global
Ratings-adjusted EBITDA margin, which has remained at 9%-10% over
the past five years. Another cause of limited volatility in
operating profitability is the company's ability to derive
purchasing synergies through market consolidation. Conversely, one
major constraint to PHE's creditworthiness is its highly leveraged
capital structure, reflected in S&P Global Ratings-adjusted debt to
EBITDA of 8.2x in 2019, increasing toward 9.0x in 2020 then falling
below 8.5x in 2021. The company's high indebtedness also constrains
FOCF due to the heavy interest burden (cash interest of about EUR50
million in 2019).

The negative outlook reflects S&P's view that the successful
refinancing of the 2022 notes is subject to PHE retaining access to
capital markets even during possible times of market stress over
the next few months.

Downside scenario

S&P could lower its ratings to the 'CCC' category if PHE does not
refinance the remaining 2022 notes within first-quarter 2021.

S&P could also lower its ratings on PHE if its debt to EBITDA
remains above 8.5x in 2021, or if its FOCF turns negative.

Upside scenario

S&P could revise its outlook to stable if PHE successfully
refinances its remaining 2022 notes and improves its operating
performance such that debt to EBITDA decreases to below 8.5x and
FOCF stays positive.




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

CHEPLAPHARM ARZNEIMITTEL: Fitch Affirms B+ LT Issuer Default Rating
-------------------------------------------------------------------
Fitch Ratings has affirmed CHEPLAPHARM Arzneimittel GmbH's
Long-Term Issuer Default Rating (IDR) at 'B+' with a Stable Outlook
following announcement of the acquisition of several drug
portfolios. Fitch has also affirmed Cheplapharm's senior secured
debt rating at 'BB-'/'RR3' based on the final terms of the new
senior secured notes of EUR575 million and USD500 million due in
January 2028 (the Transaction).

Cheplapharm's IDR reflects its niche yet growing and scalable
asset-light business model with strong operating and cash flow
margins. The company's aggressively debt-funded buy-and-build
strategy is balanced by a disciplined execution of product rights
acquisitions translating into funds from operations (FFO) leverage
averaging about 5.5x through to 2023, which is in line with the
rating.

The Stable Outlook reflects its expectation that the company will
maintain the quality and risk profile of its product portfolio by
investing all its internally generated cash flows into new IP
rights while applying consistent acquisition and financial
policies, which will facilitate a stable operating and financial
profile.

KEY RATING DRIVERS

Debt-Funded Acquisitions Rating Neutral: Fitch regards the
announced debt-funded addition of several drug portfolios as rating
neutral. This also includes the purchase of additional
international rights for USD400 million, which were not part of the
Transaction, but which were reflected in Fitch's rating case as
part of its assumed annual acquisition basket for additional
opportunistic M&A and therefore covered by the rating headroom
available under the 'B+' IDR.

Furthermore, all these acquisitions show consistent economics
adherent to Cheplapharm's acquisition criteria, and therefore
enhance operating performance sufficiently to ensure a stable
financial risk profile despite the increasing debt. A strict
adherence to conservative acquisition multiples remains a key
factor underpinning the rating and its Stable Outlook as the
company implements its ambitious growth strategy.

Improving Scale and Diversification: The period of strong
acquisitive growth has translated into receding
product-concentration risks as shown in a projected lower
contribution from the top three products to below 25% after the
transaction in FY20 from 40% in FY19. The company also has broad
presence in more than 120 countries, which further mitigates
individual product risks.

Moderate Execution Risks: Fitch views the execution risks as
moderate due to an extended period of uninterrupted rapid, largely
debt-funded, growth. Fitch expects the business to double in size
between FY19 and FY21 with sales projected to reach EUR1.2 billion
and EBITDA to reach EUR600 million. However, the company remains
engaged in the integration of recently made acquisitions.

The increased execution risks are mitigated by Cheplapharm's record
of strong operating performance, improved cash generation,
disciplined approach to asset selection and adapted corporate
structures to deal with increased business volumes.

Defensive Operations: The ratings are underpinned by Cheplapharm's
defensive business profile, characterised by well-executed
acquisitions of drug IP rights and active product life-cycle
management. Fitch takes a positive view of Cheplapharm's highly
visible and predictable revenue, and limited exposure to
competition, despite expected gradual sales erosion as the
company's drugs approach the final stage of their economic life.

OTC Products Rating Neutral: Fitch views the recent addition of
over-the-counter (OTC) drugs as part of larger portfolios as rating
neutral despite their higher embedded market risks. This is due to
the low expected share of OTC drugs in the company's portfolio
benefitting from a pull effect from doctors and patients, which
will not require higher marketing spend, with the riskiness of
these OTC products broadly comparable to Cheplapharm's existing
legacy drugs.

Fitch therefore thinks the acquisitions contribute to an overall
improved business risk. Increasing riskiness of asset additions
could lead to a higher business risk and, together with less
disciplined execution and financial policies, could put pressure on
the rating.

Healthy Operating Profitability: Cheplapharm ranks among the most
profitable credits in Fitch's low speculative-grade portfolio in
the sector, with EBITDA margins projected at about 50% until 2023.
This provides strong support to Cheplapharm's credit profile. Fitch
expects healthy profitability to be maintained, given the company's
ability to continuously add margin-accretive products, which could
be funded from internal cash flows in combination with the sizeable
revolving credit facility (RCF) to be increased to EUR450 million
as part of the Transaction.

Strong Free Cash Flow: Fitch estimates that the acquisitions will
facilitate a further increase of free cash flow (FCF) from about
EUR130 million in FY19 to EUR250 million in FY22-FY23, with FCF
margins sustained at 20%, which is high for the rating. In its
view, the high FCF margins support a stable business risk profile,
balancing gradually declining earnings from its existing niche and
legacy products with the addition of new IP rights.

Fitch does not expect FCF to be used for debt reduction, but Fitch
sees little risk of dividends given the founders' long-term
commitment to the business. Fitch views reinvestment of significant
FCF into the business in line with Cheplapharm's acquisition policy
as a key factor in supporting the IDR at 'B+' in the absence of
commitment to deleveraging.

Appropriate Leverage: Fitch projects FFO leverage to remain within
the sensitivities at about 5.5x. Its leverage and rating
considerations are supported by the expectation of continuously
strong and stable operating performance, which, in addition to an
active portfolio management, come as a result of a disciplined
approach to M&A in terms of acceptable asset valuation and
operating profitability levels of the acquired products.

More Debt-Funded M&A Expected: Fitch assumes continuous use of the
RCF in combination with FCF during FY21-FY23 to fund further M&A
estimated at EUR250 million a year as Cheplapharm looks to sustain
and grow its product portfolio. However, given ample supply of
off-patent drug acquisition opportunities offered by big
pharmaceutical companies, Fitch will see more debt-funded M&A in
excess of EUR1 billion a year. The rating remains exposed to the
quality of targets and acquisition execution as Fitch does not
assume debt-financed event risks beyond the committed debt
funding.

Aggressive Financial Policy: Fitch expects the company to continue
its aggressive growth trajectory, prioritising inorganic growth
over deleveraging. The existing senior secured term loan and the
new senior secured notes in this regard offer weak creditor
protection given the absence of maintenance financial covenants.
The company's ability to repeatedly raise incremental debt
increases the risk of re-leveraging, particularly should the
company change its acquisition and financial policies.

DERIVATION SUMMARY

Fitch rates Cheplapharm applying its Ratings Navigator framework
for pharmaceutical companies. The IDR reflects Cheplapharm's
defensive business profile with resilient and predictable earnings,
as well as high operating margins and strong cash flow generation
due to the company's asset-light business model.

Cheplapharm is rated at the same level as Antigua Bidco Limited
(B+/Stable) as they share high and stable operating and cash flow
margins, and similar business models and product portfolio
management. Fitch regards both companies as having structurally
similar operating risks and comparable financial risk profiles
despite Antigua Bidco's smaller scale, more concentrated product
portfolio and slightly different approach to new product
evaluation, with FFO-adjusted gross leverage at about 5.0x, which
translates into their 'B+' IDRs.

Fitch sees Cheplapharm's credit profile as stronger than that of
the specialist pharmaceutical company IWH UK Finco Ltd (B/Stable)
as warranting a one-notch difference. The rating differential
reflects the former's higher operating and cash flow margins, in
combination with a more conservative financial profile reflected in
an FFO leverage of 5.0x-5.5x against IWH's 5.5x-6.0x.

Fitch also regards Cheplapharm as being a stronger credit than
generics producer Nidda BondCo GmbH (B/Stable), despite its much
smaller scale and more concentrated portfolio, which are mitigated
by wide geographic diversification within each brand. Nidda
BondCo's rating is burdened by high leverage, with a spike in
expected FFO adjusted gross leverage to 8.7x in 2020 following the
recent debt-funded acquisitions, which Fitch projects to return to
below 8.0x in the medium term.

KEY ASSUMPTIONS

  - Revenue growth of 88% in 2021 driven by acquisitions,
decelerating to a flat growth thereafter.

  - EBITDA margins at about 50% in 2020 and gradually declining to
about 47% in 2023.

  - Maintenance capex of EUR3 million-EUR7 million a year from
FY20.

  - About EUR420 million of IP rights purchased in 2020 followed by
about EUR1.2billion in 2021. Fitch projects the larger drug
portfolios that are being funded with new senior secured notes to
take place in January 2021 in addition to opportunistic
acquisitions of EUR250 million a year during 2021-2023 including
estimated milestone payments arising from recently completed
acquisitions. Funding for these opportunistic acquisitions is
assumed to be a combination of FCF and RCF drawdowns based on
average enterprise value/sales acquisition multiple of 3.0x.

  - Fitch forecasts the new senior secured notes will be issued in
early 2021 with the payments for the announced acquisitions
expected to be completed by end-2020 also made in early 2021.

  - Trade working capital outflows of EUR290 million in 2021
followed by EUR170 million in 2022 and EUR150 million in 2023
driven by product additions and stock purchases following transfer
of product marketing authorisations on a country-by-country basis.

  - No dividend payments.

RECOVERY ASSUMPTIONS:

In a distressed scenario, Cheplapharm would most likely be sold or
restructured as a going concern rather than liquidated given its
asset-light business model.

  - Fitch estimates a post-restructuring EBITDA at about EUR360
million. Cheplapharm would be required to address debt service and
fund trade working capital as the company takes over inventories
following transfer of market authorisation rights, as well as to
make smaller M&A to sustain its product portfolio to compensate for
a natural sales decline. This EBITDA represents an about 45%
discount to Fitch's estimated post-acquisition EBITDA of about
EUR640 million in 2021, which will reflect the full-year
contribution from all recent acquisitions.

  - Fitch applies a distressed enterprise value/EBITDA multiple of
5.5x (unchanged), reflecting the underlying value of the company's
portfolio of IP rights.

  - After deducting 10% for administrative claims, its principal
waterfall analysis generated a ranked recovery in the 'RR3' band
for the first-lien senior secured facilities including the new
senior secured notes equivalent of EUR1 billion and an increase of
RCF to EUR450 million indicating a 'BB-' instrument rating. The
waterfall analysis output percentage on current metrics and
assumptions is 60%.

RATING SENSITIVITIES

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

  - An upgrade to the 'BB' rating category would require a maturing
of Cheplapharm's business risk profile, characterised by a
sustained improvement of business scale with sales above EUR1
billion in combination with a more diversified product portfolio,
resilient operating and strong FCF margins, and reducing execution
risks.

  - Conservative FFO leverage at about 4.0x.

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

  - Unsuccessful management of individual pharmaceutical IP rights
leading to material permanent loss of income and EBITDA margins
declining towards 40%;

  - Positive but continuously declining FCF; and

  - FFO leverage sustainably above 6.0x (net of readily available
cash: 5.5x), signalling a more aggressive financial policy.

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: Cheplapharm's strong internal FCF
generation, which Fitch estimates at EUR160 million in 2020 and
increasing to EUR250 million by 2023, will be sufficient to fund
further portfolio expansions and maintain year-end cash at EUR20
million-40 million. Organic liquidity will be further supported by
access to a committed RCF of EUR450 million, up from EUR310 million
following the completion of the Transaction and long-dated debt
maturities spread between July 2024 and January 2028. Fitch
estimates most of the cash will be used to acquire IP rights,
rather than for debt reduction.

In its assessment of freely available cash, Fitch deducts EUR10
million of minimum liquidity required for operations in 2020 and
EUR20 million in 2021-2023, as the business gains scale.

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.


KME SE: Fitch Cuts LT IDR to 'CCC+' on Low EBITDA Margins
---------------------------------------------------------
Fitch Ratings has downgraded German-based manufacturer KME SE's
Long-Term Issuer Default Rating (IDR) to 'CCC+' from 'B-'.

The downgrade reflects Fitch's expectations that EBITDA margins,
including the IFRS accounting inventory and derivatives valuation,
will remain very low and that free cash flow (FCF) generation is
likely to be negative in the medium term.

The ratings reflect KME's adequate business profile with
established market positions in Europe and a diversified and stable
customer base. Fitch expects synergies from recently finalised M&A
activities to moderately strengthen profitability in the medium
term, although it is forecast to remain weak in the low
single-digits.

KEY RATING DRIVERS

Profitability under Pressure: KME's 2019 EBITDA margin fell to
1.8%, below its 3.2% forecast and negative rating sensitivity, and
further reflected weak funds from operations (FFO), which Fitch
expects to continue. KME's weaker-than-expected 2019 EBITDA was due
partly to weaker market conditions and postponed cost synergies,
but also reflected the IFRS accounting of inventory valuation.
Although acquisition-related synergies are starting to feed through
in 2020, Fitch forecasts profitability to be under further pressure
from an accelerated slowdown in KME's end-markets due to the
pandemic and continued IFRS inventory valuation effects.

Leverage Breaching Negative Sensitivity: As a result of the lower
EBITDA, in combination with higher interest costs, the FFO margin
declined to 0.1% in 2019, which is extremely weak for the rating.
This had a material adverse effect on FFO gross leverage, which
increased to double-digits, breaching its negative rating
sensitivity of 8.0x. Although Fitch forecasts an improvement of the
ratio from 2021, Fitch believes leverage will remain stretched and
high for the rating in the medium term.

Free Cash Flow Turning Negative: Following the adverse impact on
KME's performance from the pandemic Fitch expects the free cash
flow (FCF) margin to turn negative in 2020 and remain so until
2022. A better-than-expected effect from working capital
management, especially inventory levels, and realisation of
synergies could support faster FCF recovery. In 2019, cash flow was
eroded by high interest costs and higher investments related to the
integration of KME Mansfeld and one-off enlargement of KME's
production footprint. This was, however, partly mitigated by
material working capital releases and positive FCF, albeit weaker
than in previous years.

Lower Demand for Copper: Demand for copper decreased materially in
1H20 as sectors with a high usage, such as construction and
transportation, were impacted by lockdowns and lower consumer
spending due to the pandemic. Prices have, however, increased from
their low point in March 2020 and Fitch forecasts average copper
prices to reach USD6,000/tonne at end-2020, versus USD6,020/ tonne
in 2019. In the medium term, Fitch forecasts increasing demand will
drive prices towards USD6,500/tonne. Fitch expects KME's revenue to
be under pressure from lower copper prices in 2020, but to start
recovering in 2021 along with higher copper prices.

High Working Capital Needs: KME's working-capital necessity poses a
threat to credit quality as an increase in copper prices increases
draws on working-capital facilities and leads to higher utilisation
of its factoring facilities, or puts potential pressure on
liquidity. Volatile price movements can weaken KME's working
capital position, albeit the company can ultimately pass on price
movements to its customers.

Adequate Business Profile: KME's business profile is supported by
established market positions in Europe within copper products and
special engineered products as well as a diversified customer base
with long-term customer relationships, ranging up to 20 years with
some larger clients. This limits the risks related to low entry
barriers, which are an effect of the highly commoditised processing
of most copper products. In contrast, entry barriers for special
engineered products and rolled special industrial alloys are
moderate due to higher technological content and a more complex
manufacturing process.

Senior Secured Uplift: Fitch's recovery for KME's senior secured
debt is based on a liquidation approach. This reflects the security
package of the notes and the borrowing-base facility, which
contains separate collateral. Fitch understands from management
that senior secured noteholders will have first-priority claim on
KME's Osnabruck property. Hence, Fitch has based its recovery
analysis on a discounted market value of the property and the net
book value of the machinery and equipment related to the property.
These assumptions result in a recovery rate for the senior secured
rating within the 'RR3' range, which enables a one-notch uplift to
the debt rating from the IDR.

DERIVATION SUMMARY

KME's leverage is high in comparison with 'CCC+' companies rated by
Fitch, but Fitch expects it to return to levels more in line with
similarly rated peers' in the medium term. Aluminium-processing
peer Constellium is somewhat larger and has stronger EBITDA margins
mainly driven by lower basic metal prices (aluminium versus copper)
given its higher value-added product portfolio for
aerospace/automotive end-markets. KME and Constellium had shared
similar FFO leverage until 2019 when KME's lower profitability
resulted in a higher ratio, while Constellium improved its
leverage.

KME is much larger than the security systems niche player
Praesidiad Group Limited (CCC+), but has similar forecast leverage
in the short- and medium term. Although Praesidiad has a materially
stronger EBITDA margin both companies have weak cash flow
generation, resulting in forecast negative FCF margins.

KEY ASSUMPTIONS

  - Revenue to decline 15% in 2020 as a result of lower copper
prices and slower product demand. Revenue growth to average 3%
annually in 2021-2023 based on recovery of copper prices that is
partially offset by further decrease in demand.

  - EBITDA margin to contract to 1.3% in 2020, before recovering in
the next three years on a higher revenue base, increasing copper
prices and further costs synergies from the acquisition of MKM.

  - Working capital changes affected by lower activity and copper
prices in 2020, before normalising from 2021.

  - Total restructuring costs of nearly EUR31 million until 2022.

  - Capex to drop to 0.9% of sales in 2020, followed by 1.1%, in
line with historical trend.

  - No dividends and M&A for the next three years.

  - Refinancing of the borrowing-base facility and factoring lines
in 2021 as well as senior secured notes in 2023.

RATING SENSITIVITIES

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

  - FFO gross leverage sustainably below 7.0x

  - FFO interest coverage sustainably above 2.0x

  - EBITDA margin above 3%, supported by business integration
synergies in 2020-2021

  - Positive FCF margin on a sustained basis

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

  - FFO gross leverage consistently above 10x

  - FFO interest coverage less than 1.5x

  - EBITDA margin below 1.5%

  - Failure to reach positive FCF

LIQUIDITY AND DEBT STRUCTURE

Weak Liquidity: Fitch views KME's liquidity profile as adequate for
continued operations in the short term. This is based on EUR70
million of cash on the balance sheet as at end-1H20, after
adjusting for not-readily-available cash of EUR5 million as well as
available EUR30 million shareholder working capital facility line.
KME also has access to a committed EUR395 million borrowing-base
facility, which is highly utilised for outstanding letters of
credit, leaving little headroom for typical cash funding. Further,
its forecast negative FCF in 2020 will not support short-term
liquidity.

Fitch assumes that KME will have continued access to
working-capital facilities based on its regular extension pattern
in the past as well as compliance with financial covenants under
the borrowing-base facility agreement and factoring programme. This
mitigates liquidity risks.

Material Refinancing Risk: Fitch assesses the refinancing risk
related to the senior secured notes maturing in February 2023 as
material. However, Fitch believes that the initial successful issue
in 2018 and the gradual recovery of the business will allow KME to
gain access to the capital market in the next two years.

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.




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

GTLK EUROPE: Fitch Gives BB+(EXP) on Upcoming USD Guaranteed Notes
-------------------------------------------------------------------
Fitch Ratings has assigned Ireland-based GTLK Europe Capital DAC's
upcoming issue of US dollar-denominated guaranteed notes an
expected 'BB+(EXP)' rating. The final rating is contingent upon the
receipt of final documents conforming to information already
received.

GTLK Europe Capital is a financing special purpose entity of GTLK
Europe DAC (GTLK Europe), an Irish subsidiary of Russia-based PJSC
State Transport Leasing Company (STLC, BB+/Stable). GTLK Europe has
been established as an operating entity utilising the favourable
tax and regulatory regimes of Ireland for the leasing of aircraft
and ships.

The notes will represent direct, unsubordinated, and unsecured
obligations of GTLK Europe Capital and will benefit from
unconditional and irrevocable, joint and several guarantees from
both STLC and GTLK Europe.

The proceeds will be used mainly for general corporate purposes,
including refinancing current outstanding US dollar-denominated
borrowings.

KEY RATING DRIVERS

The notes' rating is equalised with STLC's Long-Term
Foreign-Currency Issuer Default Rating (IDR), reflecting Fitch's
view that STLC, if required, would have a very strong propensity to
honour the obligation under the guarantee due to its publicly
expressed commitment to do so, and potential reputational damage
from not honouring the obligation.

Fitch affirmed STLC's Long-Term IDR at 'BB+' and revised Outlook to
Stable from Positive in April 2020 to reflect the significant
impact of the global COVID-19 pandemic on the Russian economy and
on the propensity of the Russian sovereign to support STLC.

RATING SENSITIVITIES

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

-- An upgrade of STLC's Long-Term Foreign-Currency IDR will be
reflected in the notes' rating.

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

-- A downgrade of STLC's Long-Term Foreign-Currency IDR will be
reflected in the notes' rating.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The ratings of STLC are driven by sovereign support from Russia and
linked to the Russia's IDRs. The ratings of guaranteed debt issued
by GTLK Europe and GTLK Europe Capital are equalised with STLC's
Long-Term Foreign-Currency IDR.




===================
K A Z A K H S T A N
===================

KAZAKHMYS INSURANCE: Fitch Affirms BB- Insurer Fin. Strength Rating
-------------------------------------------------------------------
Fitch Ratings has affirmed JSC Kazakhmys Insurance Company
(Kazakhstan)'s Insurer Financial Strength (IFS) Rating at 'BB-' and
National IFS at 'BBB+(kaz)' with Negative Outlooks.

KEY RATING DRIVERS

The affirmation of the rating reflects Kazakhmys Ins's strong
capital position, sound underwriting profitability and adequate
investment quality. The Negative Outlook continues to reflect
Kazakhmys Ins's very high dependence on outward reinsurance
coverage purchased abroad, which may expose the insurer's
underwriting result and capital to higher foreign currency
(FC)-driven volatility due to the economic implications of the
coronavirus pandemic.

Kazakhmys Ins's has made some progress towards reducing its
dependence on the outward reinsurance. In 9M20 the insurer reported
a 18% decline in gross premiums written (GPW) but a 55% growth in
net premiums written (NPW). The growth in net business volumes
reflects the nascent restructuring of the insurer's portfolio
towards less reinsurance-demanding risks and higher levels of net
retention. The insurer expects to support this trend in 4Q20.

Kazakhmys Ins's reinsurance utilisation ratio, measured in terms of
written premiums, remains high at 75% in 9M20, albeit lower than
the five-year average of 88% in 2015-2019 and 87% in 9M19. The
reinsurers' share in earned premiums remains unchanged, at 90% in
9M20, in line with 91% in 2019 and the five-year average of 87% in
2014-2018, as the large contracts written and fronted to reinsurers
in 4Q19 continue to be earned and prevail over small volumes of
NPW.

Kazakhmys Ins remains a commercial lines-focused insurer with a
significant dependence on a single customer - Kazakhmys Corporation
LLC. The latter accounted for 73% of the insurer's GWP in 2019 and
77% in 2018. The related-party risks are largely fronted abroad and
make little contribution to the insurer's net underwriting result.
Nevertheless, the size of the related-party business makes
Kazakhmys Ins one of the largest local commercial underwriters.

Kazakhmys Ins reported KZT1.5 billion net income and 13% return on
equity in 2019, a weakening from KZT3.2 billion and 30% in 2018.
The unusually high net profit in 2018 was supported by FX gains of
KZT1.2 billion and a reserve release of KZT0.7 billion. In 9M20 the
net profit reached KZT2.4 billion, supported by KZT1 billion FX
gains and KZT0.4 billion reserve releases. Fitch regards both FX
gains and reserves releases as one-off sources.

Risk-adjusted capital was supportive of the rating level at
end-2019, in line with levels at end-2018. The company maintained
low net premium volumes, which together with considerable
reinsurance utilisation, has led to stable target capital. However,
the company's capital remains highly exposed to any risks related
to the quality of the reinsurance protection, as 90% of the
business was ceded to reinsurers in 2019 (88% in 2014-2018).

Kazakhmys Ins was in compliance with the regulatory solvency
requirements by a robust margin; the regulatory solvency margin was
282% at end-9M20, compared with 197% at end-2019. In May 2019 the
insurer's shareholders withdrew KZT3billion of dividends or 95% of
the profit earned in 2018.

Fitch views Kazakhmys Ins' investment strategy as relatively
prudent given the available choice of domestic investment
instruments. Kazakhmys Ins' asset mix shifted to fixed-income
securities of a better credit quality in 2019 compared with the
asset allocation at end-2018 and end-2017. The improvement in the
credit quality of the fixed-income portfolio was driven by the
growing share of government bonds (Lon-Term IDR: BBB) and US
Treasury bonds. The company's risky-assets-to-equity ratio was 41%
at end-2019.

RATING SENSITIVITIES

The ratings remain sensitive to a material change in Fitch's
rating-case assumptions with respect to the coronavirus pandemic.
Periodic updates to its assumptions are possible given the rapid
pace of changes in government actions in response to the pandemic,
and the pace with which new information is made available on the
medical aspects of the outbreak.

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

  - A material adverse change in Fitch's rating assumptions with
respect to the coronavirus impact would be rating negative.

  - The ratings could be downgraded if Kazakhmys Ins's underwriting
losses start to erode capital.

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

  - A material positive change in Fitch's rating assumptions with
respect to the coronavirus impact would be rating positive.

  - A positive rating action would need to be prefaced by Fitch's
ability to reliably forecast the impact of the coronavirus pandemic
on the financial profiles of both the Kazakh insurance sector and
Kazakhmys Ins.

  - The ratings could be upgraded if Kazakhmys Ins reduces its
dependence on reinsurance, provided the company repositions its
business mix while maintaining its asset risk.

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.

NOMAD LIFE: S&P Raises ICR to 'BB+' on Improving Capital Buffers
----------------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit and financial
strength ratings on Kazakhstan-based Life Insurance Company Nomad
Life JSC to 'BB+' from 'BB'. The outlook is stable.

At the same time, S&P raised its national scale rating on the
insurer to 'kzAA' from 'kzAA-'.

S&P said, "The upgrade reflects our view of Nomad Life's materially
improved capital adequacy, which supports further business growth
and sufficiently cushions against potential adverse operating
conditions or unexpectedly large claims. In addition, we note that
management is focused on a prudent asset policy that aims to invest
in assets with an average credit quality of no less than 'BBB'.
This has improved liquidity and enabled the gradual derisking of
its investment portfolio over the past two years, with a shift
toward higher-quality instruments.

"Nomad Life's capital adequacy materially improved, according to
our measures, after sound operating performance in 2018-2020.
Strong retained earnings relieved previous pressure on the capital
position. The company has moderated its dividend policy to below
50% of net income in 2019-2020 from more than 80% in the past, and
this move has supported its capital adequacy. We expect the company
could make a dividend payout of up to 40%-50%) in 2020-2021, but we
do not anticipate that this would undermine the insurer's capital
adequacy, both under S&P Global Ratings' and the regulator's
criteria. We forecast that Nomad Life will expand its solvency
margin via internal capital generation, taking margins close to
200% in the next year and 300% in the next two to three years
(minimum required level is 100%). We still consider the company's
capital to be modest in absolute terms, at about Kazakh tenge (KZT)
23 billion (or around $55 million) as of end-September 2020, in an
international context. We also recognize that Nomad Life started to
produce an audited embedded value report in 2020. We give partial
credit in our capital model for this calculation.

"In our base-case scenario for 2020-2021, we expect Nomad Life will
report average annual net profit of about KZT9.0 billion-KZT9.5
billion, a return on equity of 30%-35% and a return on assets of
5%-6%, which are above our expectations for the life insurance
sector in Kazakhstan. We expect Nomad Life's investment yield will
be close to 7.5-8.0% in order to meet its obligations under
insurance policies with investment guarantees."

Nomad Life boasts a sound market position, business longevity,
solid distribution ties, and a well-known brand name. It is
Kazakhstan's second-largest life insurer, with a 30% market share
(based on gross premium written). Thanks to its strong reputation,
the company has expanded its book of business in the past five
years. The scale effect bolstered growth, with the Kazakhstan life
market still characterized by a low penetration rate below 1% and
average spending of less than $20 per capita. S&P expects Nomad
Life will moderate its growth in 2020-2021 to approximately 15%
annually. In its view, introduction of unit-linked products will
not immediately boost the premium, but might be a medium-term
driver. At the same time, the potential further development of
state annuity transfers to life insurance companies from the "JSC
Unified Accumulative Pension Fund" will likely propel growth, too.

S&P said, "The stable outlook reflects our expectation that, in the
next 12-18 months, Nomad Life will uphold its well-established
position in the Kazakhstan life insurance market while maintaining
stronger-than-peers' profitability metrics. In addition, we expect
Nomad Life to preserve its capital adequacy at least at a very
strong level in 2020-2021 thanks to retained earnings, a moderated
dividend policy, and further inclusion of embedded value figures in
the capital model."

S&P could consider a negative rating action over the next 12-18
months if Nomad Life increased its exposure to lower-quality
instruments of 'BB' or below or elevated currency risk. Rating
pressure could also stem from its capital position weakening to
below 'BBB'. This could be due to a weaker-than-expected operating
performance, investment losses, or considerably
higher-than-expected dividend pay-outs.

An upgrade is possible over the next 12-18 months if Nomad Life
strengthens its capital adequacy sustainably and materially, and
executes further asset derisking to higher-quality bond
investments.




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

PLT VII FINANCE: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has assigned PLT VII Finance S.a r.l. (Bite) a
Long-Term Issuer Default Rating (IDR) of 'B' with a Stable Outlook
and affirmed its senior secured notes' rating at 'B+'/'RR3'. Fitch
also affirmed and simultaneously withdrew the IDR of 'B' with a
Stable Outlook assigned to PLT VII International S.a r.l.
(previously known as Bite), following the group's legal
reorganisation. The change in which entity is rated means the group
name 'Bite' now refers to PLT VII Finance S.a r.l..

As a result of the reorganisation, Bite, which is the issuer of
rated senior secured notes, became the top entity of the restricted
group. The senior secured notes benefit from the guarantees of
Bite's key operating subsidiaries. The reorganisation did not lead
to any changes in Fitch's assumptions or key rating drivers.

Bite is a mobile-centric operator in Latvia and Lithuania with
growing broadband/pay-TV segments and substantial advertised-based
free-to-air (FTA) TV revenues across the Baltics. The company's
funds from operations (FFO) gross leverage is high at above 6x at
end-2020 and is likely to be maintained in the 5x-6x range with no
expected debt prepayments.

There is some deleveraging capacity driven by continuing
single-digit EBITDA and FFO growth but this may be temporarily
stalled by the impact of the coronavirus pandemic. The company's
pre-dividend free cash flow (FCF) generation is strong due to
sustained low capex, with the pre-dividend FCF margin close to
double digits.

The rating of PLT VII International S.a r.l. is withdrawn due to
reorganisation of the rated entity.

KEY RATING DRIVERS

Sustainable Market Positions: Bite has defended its service revenue
share in Latvia and Lithuania during the market's contraction and
growth and Fitch expects the company to retain its strong market
positions. Bite's share of the mobile service market (by revenue)
was stable at around 33% in Lithuania and 25% in Latvia in
2017-2019, by the company's estimates. Bite operates in
three-operator markets, with the same set of mobile competitors in
Latvia and Lithuania.

Rational Competition: The lack of any significant mobile virtual
network operators (MVNOs) and the clear brand positioning of each
of the network operators helps sustain a degree of service
differentiation, reducing direct price competition. Bite positions
itself as an innovative operator with an emphasis on a higher
average revenue per user (ARPU) customer base, while Tele2 pursues
a strategy of perceived price leadership and Telia-controlled
operators focus on exploiting their status as established
incumbents with superior network quality.

Full Bundling Capabilities: The acquisition of cable-centric
Baltcom in February 2020 made Bite fully bundled-enabled in Latvia,
while in Lithuania the company can rely on regulated access to the
incumbent's fixed network to complement its mobile and pay-TV
propositions. Both markets have been spared aggressive fixed-mobile
bundling competition so far, but Fitch views an ability to offer
bundled services as a strategic advantage that can help maintain
Bite's competitive position.

A wide array of offered services also provides significant
cross-selling opportunities, including between mobile and pay-TV
customers.

Pandemic Impact: Fitch expects Bite to retain substantial
deleveraging capacity that may allow it to keep leverage under
control, even if there are temporary GDP pressures in its markets
and low growth or a modest revenue/EBITDA decline. The coronavirus
crisis will be disruptive across the region, leading to a decline
in GDP in Latvia of 4.5% yoy and in Lithuania of 6.8% yoy in 2020,
followed by growth of 3.5% yoy and 4.4% yoy, respectively, in 2021,
by Fitch estimates.

Telecoms and digital revenues are likely to be reasonably resilient
but not totally immune to the disposable income pressures that are
likely to accompany a GDP contraction. The impact is likely to be
much more negative in the media segment, with FTA TV revenues being
the most vulnerable. The decline in this sub-segment is likely to
exceed the GDP dip. However, this segment accounted for only 20% of
total service revenues and its impact is likely to be manageable.

Stagnant FTA TV: Fitch believes that Bite's advertising revenue
from FTA TV channels will be supported by its leading market share
(at around 60% of TV advertising revenue across the Baltics in
2019, according to the company's estimates) and its focus on
local-language content, as there is only limited competition in
local-language content production.

However, Fitch believes traditional advertising is in structural
decline globally and Fitch expects advert-based revenues to trail
GDP growth in the medium term and to be more susceptible to the
impact of the pandemic.

Pay-TV Diversification: Fitch views Bite's pay-TV segment as
complimentary to the existing mobile and broadband franchise,
enabling cross-selling, bundling and opportunities to reduce churn.
The company's existing franchise and continuing expansion in the
pay-TV segment also provide it with a degree of business
diversification, allows it to better-monetise its content library
and spread new content acquisition costs between FTA and pay-TV
platforms.

Sustained Low Capex: Fitch expects Bite to sustain its efficient
capex, with average capex/revenue of around 10% in the medium term.
The key contributors to its capex efficiency are its comfortable
spectrum portfolio in Latvia and Lithuania, with overall spectrum
per head of population over twice the EU average in both countries,
and benign geographical topology in its area of operations, with no
extremely densely populated cities and no wide "white" spots.

Network JV Improves Efficiency: The company's network sharing joint
venture (JV) with Tele2 covering Latvia and Lithuania should help
further rationalise capex allocation and protect against an
excessive capex spike from a 5G roll-out. Joint network management
should mitigate network quality-based competition with Tele2 but
also improve competitive standing compared with the fixed-line
incumbent's networks, as the JV is seeking to achieve superior
network coverage and quality across both countries.

5G Cost Is Likely Manageable. Retrospectively low spectrum costs
compared with the EU average and a long extension period for 4G
spectrum instalment payments suggest that the forthcoming 5G
auctions for 700-megahertz (MHz) spectrum in Lithuania and Latvia
and 3.5 gigahertz (GHz) in Lithuania may lead to only a moderate
spike in capex. Bite already holds a significant 150MHz of spectrum
in the 3.5GHz band in Latvia, which, if allowed to be used for 5G,
may also reduce additional investment requirements.

Strong FCF Generation. Fitch projects Bite to sustain high
pre-dividend FCF generation as a high single-digit percentage of
reported revenue, supported by an EBITDA margin of more than 30% on
service revenues, low taxes typical for the Baltics (which Fitch
projects to remain below 3% of service revenue on average), and
moderate capex (at around 10% of revenue on average).

Inflated Leverage. Fitch expects Bite's leverage to remain high, at
6.4x on an FFO gross basis in 2020, with a reduction to 5.8x-5.4x
in 2021-2023 and low-to-mid single-digit EBITDA and FFO growth (all
metrics pro forma for the Baltcom acquisition in February 2020).
Fitch assumes that most of the company's pre-dividend FCF will be
paid as dividends as there are few significant restrictions on
shareholder distributions. The company will retain only the minimum
amount necessary for its operations on its balance sheet.

Its deleveraging may be stalled by bolt-on acquisitions in its
current geographical franchise. Any significant acquisitions will
be treated as event risk but Fitch expects dividends to be
curtailed to allow for deleveraging to below 5x reported gross
debt/EBITDA (on an IFRS 16 basis) within a reasonable timeframe, in
line with the company's internal financial policy.

Fitch does not analytically reverse the sale of customer equipment
receivables, as Fitch views equipment sales as a non-core segment
that would not have any impact on service revenue from the existing
subscriber base, while Fitch believes the company has significant
flexibility to mitigate any negative impact on its working
capital.

DERIVATION SUMMARY

Bite is significantly smaller (by absolute scale) than most mobile
and telecoms peers with the same ratings, but it is larger than
Melita Bidco Limited (B/Stable), which operates in the small but
highly consolidated domestic market of Malta. Bite benefits from
operating in less-congested three-operator mobile markets with no
significant MVNO presence, like Crystal Almond Intermediary
Holdings Limited (Wind Hellas; B/Negative) in Greece, the rating of
which reflects its weak FCF generation.

Bite is highly cash flow generative, with a pre-dividend FCF margin
in high single digits, potentially consistent with a higher rating
category, but it is more leveraged than most of its higher-rated
peers, such as Telenet Group Holding N.V. (BB-/Stable) and eircom
Holdings (Ireland) Limited (B+/Stable). It is less leveraged than
Tele Columbus AG (B-/Stable) but the latter benefits from higher
margins and the more stable and longer-term customer relationships
that characterise the cable industry.

KEY ASSUMPTIONS

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

Low single-digit mobile service revenue growth in 2021-2023;

FTA TV advertising revenue growth trailing expected GDP growth
across the Baltics region, with a mid-teen percentage contraction
(yoy) in 2020;

EBITDA margin modestly improving to around 33% of service revenues
(from the existing operating franchise) in 2022-2023;

Taxes at below 3% of service revenue on average;

Capex at around 10% of revenue on average in 2021-2023;

Around EUR10 million of cash on the balance sheet to cover
operating needs, with all extra cash up-streamed as dividends.

Key Recovery Rating Assumptions

The recovery analysis assumes that Bite would be considered a going
concern in bankruptcy and that the company would be reorganised
rather than liquidated.

Fitch has assumed a 10% administrative claim.

Fitch estimates post-restructuring going concern EBITDA of EUR92
million, which is approximately 20% lower than its 2020 EBITDA
forecast, pro forma for the acquisition of Baltcom.

Fitch uses an enterprise value multiple of 5.0x to calculate a
post-reorganisation valuation.

Fitch calculates the recovery prospects for the senior secured
instruments at 56%, assuming the super senior secured revolving
credit facility (RCF) of EUR50 million is fully drawn, which
implies a one-notch uplift of the ratings relative to the company's
IDR to arrive at 'B+' with a Recovery Rating of 'RR3' for the
company's EUR650 million of senior secured debt.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:

FFO gross leverage sustained below 5x

Continued strong pre-dividend FCF generation while maintaining
competitive positions in Latvia and Lithuania

Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:

FFO gross leverage above 6x on a sustained basis

A significant reduction in pre-dividend FCF generation driven by
competitive or regulatory challenges

LIQUIDITY AND DEBT STRUCTURE

Fitch views Bite's liquidity as satisfactory. It is primarily in
the form of its EUR50 million RCF. This is likely to be sufficient
to address its operating needs and to cover small bolt-on
acquisitions but a larger acquisition may require more advanced
liquidity management that would consider lower shareholder
distributions. The company's refinancing risk is limited in the
next few years as all debt instruments, including both floating and
fixed-rate senior secured notes, mature in January 2026.

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.




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

ULKER BISKUVI: S&P Assigns 'B+' LongTerm Issuer Rating
------------------------------------------------------
S&P Global Ratings assigned its 'B+' long-term issuer and
issue-level credit ratings to Turkey-based Ulker Biskuvi Sanayi
A.S. (Ulker) and its proposed senior unsecured notes.

The stable outlook indicates that Ulker's operating performance is
likely to remain resilient despite the COVID-19 pandemic. S&P
Global Ratings-adjusted EBITDA margins are forecast to remain
stable at 17.0%-17.5%, and gross debt to EBITDA to be 4.0x-5.0x
over the next 12-18 months.

S&P's base-case scenario assumes that credit metrics will not be
disrupted by the COVID-19 pandemic.   Ulker's product is in a
staple food category that has low, but positive, volume growth
prospects. It is well-entrenched in its main geographical markets,
and we forecast that revenue will grow by up to 16%-17% in 2020--to
Turkish lira (TRY) 9 billion-TRY9.1 billion--and 13%-15% in 2021.
It has a track record of profitable top-line growth; over
2016-2019, it reported a compound annual growth rate (CAGR) of
about 26%, partly fueled by high inflation in Turkey.

The Turkish confectionary market largely operates as a duopoly,
with Ulker and Eti Gida being the largest players by far. Ulker's
market shares, by value, for the various subcategories are all very
high. It has No. 1 positions in biscuits (43.3%) and chocolate
(41.3%) and a No. 2 position in cakes (22.2%).

In S&P's view, Ulker is well-positioned in this large consumer
market and should gain share in other markets. Its strong local
brands and good coverage of price points should enable it to pass
on price increases without losing much volume growth. That said,
defending its market share in Turkey and expanding in other
geographies will likely cause marketing and selling expenses to
increase over the next few years.

S&P said, "We forecast stable adjusted EBITDA margins of
17.0%-17.5% in 2020 and 2021. We also anticipate that Ulker's FOCF
will weaken slightly but remain healthy, at more than TRY300
million in 2020, and will exceed TRY600 million in 2021." Annual
capital expenditure (capex), including growth, will be about
1.5%-2.0% of net revenue.

S&P said, "Given the absence of cash dividends or acquisitions in
2020, we forecast adjusted (gross) debt to EBITDA of 4.0x-5.0x and
adjusted EBITDA interest coverage of over 3.0x; these metrics are
commensurate with our 'B+' rating. Because we assess the company's
business risk as weak, and cash is not earmarked for debt
repayment, we do not deduct cash and cash equivalents and financial
investments from debt in our leverage calculations. We do include
approximately TRY126 million of postretirement benefit obligations
and TRY63 million of on-balance-sheet lease obligations in debt."

The proposed Eurobond issuance completes the refinancing of the
group's capital structure, significantly prolonging the debt
maturity profile.

The proceeds of the planned senior unsecured notes issuance, the
final amount of which is subject to market conditions, will largely
be used to refinance Ulker's capital structure. As of Aug. 30,
2020, about 48% (about TRY3.7 billion) of Ulker's debt was due to
mature in November 2020. The company had sufficient liquidity
sources at its disposal on Aug. 30 to manage the refinancing risks.
Liquidity sources comprised about TRY2.2 billion of cash and cash
equivalents on the balance sheet (mostly bank deposits in hard
currency), TRY1.7 billion of cash deposited at ultimate parent
company Yildiz Holding, and about TRY1.9 billion (after S&P Global
Ratings' adjustments) in liquid financial investments outside
Turkey. S&P still considers these liquidity sources sufficient,
even after it applies a cumulative haircut of about 41% to the
group's financial investments to account for the inherent
volatility of the liquidation value for these investments.

The financial policy and substantial financial covenant headroom
are supportive. Thanks to the group's cash generation and prudent
acquisition and shareholder remuneration policy, the company enjoys
a financial buffer despite the highly volatile foreign exchange
(FX) environment in Turkey. S&P said, "In deriving our rating on
Ulker, we capture some acquisition risk and the potential for
extraordinary shareholder distribution because we do not give any
benefit in our adjusted credit metrics for the company's cash
balances and sizable financial investments. We consider the group
is most likely to use its financial assets to fund potential
acquisitions, or to fund an extraordinary dividend distribution
from 2021 onward."

Business constraints include a lack of full direct control on the
distribution network and supply chain in its large domestic market
in Turkey.   In 2019, Ulker generated about 61% of total revenue
and 52% of reported EBITDA in Turkey, where it almost exclusively
procures its raw materials and distributes its products to
end-customers through related parties that are fully owned by
Yildiz Holding. The group sources flour, chocolate dough, cocoa
products, and hazelnuts from Onem, vegetable oil from Besler Gida
and Marsa, and sugar from Pendik Nisasta. Collectively, these
accounted for 58% of the total raw materials it procured during
2019. Ulker has an arms-length relationship with these entities,
which pass on costs with a margin. This subjects it to raw material
price movements and associated FX risks.

Similarly, the company almost exclusively sells its products in
Turkey through two Yildiz Holding-owned distribution companies,
Horizon and Pasifik. These two entities handle the traditional
(independent grocery stores, vending machines, nut sellers,
forecourts, and buffets), and modern (supermarkets, discounters,
cash & carry) channels, respectively. S&P said, "In particular, we
understand that Pasifik covers 90% of the total traditional channel
and Horizon covers 100% of the modern channel in Turkey. Although
Ulker has a long track record of successful execution with this
business model, its dependence on other companies and lack of
direct control over the distribution network and supply chain
presents additional risks. We do not normally see such risks among
the companies we rate in the food and beverage manufacturing
industry."

Although the asset and sales concentration in Turkey is a risk, it
is also an important source of production efficiencies.   The
company is still largely dependent on Turkey, its domestic market.
Turkey and Saudi Arabia, which is its second-largest market,
comprise about 75% of the total business. The company is still
pursuing growth outside Turkey, but is only a clear market leader
in the biscuits subcategory. It is gaining market share in
Kazakhstan's chocolate market, where it is currently the
third-largest player.

That said, its geographical concentration is largely offset by its
portfolio of Ulker and licensed brands, which include McVitie's and
Godiva. These branded goods, combined with revenue from its own
brands, comprise 89% of total net revenue and grant the company
pricing power.

Ulker boasts some flagship local and regional brands, including
Ulker, Cizi, Biskrem, and Ikram biscuits, as well as Albeni
chocolate and Olala and Dankek cakes. These are market leaders in
their respective categories in most of the company's end markets.
The company also has the exclusive manufacturing and distribution
rights for the Middle East and North Africa (MENA) region for
McVitie's biscuits, which is a more internationally recognized
brand.

The contribution from the McVitie's and Godiva chocolate brands is
growing fast. According to management, their revenue contribution
is set to reach about TRY500 million in 2020 (about 5%-6% of
forecast total net revenue), and will help Ulker to expand its
market share in value terms. Ulker also benefits from solid organic
growth potential, thanks to its focus on very large emerging
consumer markets--such as Turkey, Saudi Arabia, and
Egypt--supported by positive population growth prospects.

A well-invested manufacturing presence and sizable domestic
procurement of raw materials in Turkey mitigates foreign currency
risk.   Ulker operates 10 manufacturing sites across four
countries: six in Turkey, two in Saudi Arabia, one in Egypt, and
one in Kazakhstan. The company has invested considerably in recent
years to expand its presence and consolidate most of Yildiz
Holding's confectionary production assets in the region.
Investments include EUR17 million (more than TRY100 million at
current FX rates) in capex in the Hamle plant in Kazakhstan in
2017-2018.

Nevertheless, approximately 84% of its total production capacity
(981 thousand tons of units) is still in Turkey. This means that
Ulker's cost base is very competitive, compared with global
players. Ulker's manufacturing presence in its other main markets
(Saudi Arabia, Egypt, and Kazakhstan), and ample idle production
capacity (41% as of FY2019), enables Ulker to effectively respond
to changes in consumer demand across its end markets, without
making sizable additional investments in its asset base.

Much of the company's cost base is in Turkish lira, thanks to its
production capacity in Turkey; this shields it from the inherent
volatility of the lira against hard currency. In 2019, about 57% of
the group's cost of goods sold was lira-denominated. This is
because the company procures a sizable proportion of its raw
materials from Turkey (for example, wheat, sugar, and hazelnut).
Approximately 14% of total revenue is in natural hard currencies
such as U.S. dollars and euros, thanks to its export business from
Turkey. An additional 15% of revenue is in currencies pegged to the
U.S. dollar, such as the Saudi Arabian dinar (SAR) and United Arab
Emirates dirham (AED).

Ulker's ownership structure is not a rating constraint, since the
ultimate parent adheres to a financial policy S&P views as
favorable.  Yildiz Holding has been supportive of Ulker's decision
to postpone dividend distributions for a second year in a row in
2020, as a precautionary measure, following the outbreak of
COVID-19. The company has an important indirect business
relationship with related parties--three subsidiaries of Yildiz
Holding--through which Ulker procures its main raw materials and
distributes its products in Turkey. That said, S&P understands that
the relationship with Yildiz Holding is on an arms-length basis and
that Ulker can terminate the contracts quickly.

The parent company, through its influence over Ulker's board, may
play an active role in its business strategy. For example, when
Ulker initiated the restructuring of its confectionary business in
2011-2012, Yildiz Holding approved the consolidation of assets
under the Ulker umbrella. Some of Ulker's bank facilities were
transferred to the Yildiz Holding level, with associated guarantees
provided by Ulker and its subsidiaries, as part of Yildiz's debt
restructuring in 2018.

Ulker's credit quality can withstand a Turkish sovereign downgrade.
  The company is buffered from sovereign risk by its established
presence outside Turkey, share of earnings in hard currency, that
the sizable financial investment portfolio it holds abroad. S&P
said, "Despite Ulker's pronounced exposure to Turkey (84% of total
production capacity)--which subjects it to a high country risk--we
do not anticipate that a negative rating action on Turkey would
trigger a rating action on our 'B+' rating on Ulker. This is based
on our analysis of the group under our sovereign default stress
test, which includes both economic stress and potential currency
devaluation. It also includes our transfer & convertibility (T&C)
assessment, which assumes the imposition of capital controls for
all nonfinancial corporates in the country."

Ulker has sizable financial investments abroad and material cash in
bank deposits denominated in hard currency (83.5% as of June 30,
2020). S&P said, "In addition, we view positively the company's
position as a food manufacturer with export activities and
established operations outside Turkey (just over 20% of revenue and
earnings are not linked to Turkish operations, excluding exports
activities from Turkey). These factors enable Ulker to pass our
sovereign stress test--especially that its ratio of liquidity
sources to uses is over 1.0x. This allows us to rate Ulker above
Turkey in the event of a sovereign downgrade. Given the total
exposure to Turkey in terms of overall production capacity, and
that the company passes our T&C assessment, our rating on Ulker is
capped at one notch above the T&C assessment on Turkey ('BB-')."

The stable outlook indicates that Ulker's operating performance is
likely to remain resilient over the next 12-18 months, despite the
ongoing pandemic. This is because Ulker is an established player in
its main markets and operates in the staple food category. Despite
the inherent volatility in the price of raw materials, Ulker's
well-known brands should enable it to maintain pricing power and
support steady profitability, with adjusted EBITDA margins of about
17%.

S&P said, "We anticipate that Ulker is likely to maintain adjusted
(gross) debt to EBITDA of 4.0x-5.0x, EBITDA interest coverage of at
least 3x, and positive FOCF for the next 12-18 months.

"We could lower our rating if adjusted (gross) debt to EBITDA rises
to or above 5.0x and EBITDA interest coverage approaches 2.0x over
the next 12-18 months. This could occur if there is
stronger-than-expected competitive and retail pressure, or market
disruptions across Ulker's main geographies. This, alongside a
sharp rise in raw material prices and an inability to pass these
through to the end customers, could lead to lower cash flows.

"Although we are already factoring acquisition risk into our gross
credit metrics forecasts, ratings downside could also emerge if the
group cannot meet its large debt maturities over the next few
months, for example because of high capital market volatility.

"We could raise the ratings on Ulker if its operating performance
and cash flow is much stronger than our current base-case
projections. Combined with a consistent financial policy, this
should enable adjusted (gross) debt-to-EBITDA to be below 4.0x and
EBITDA interest coverage of 3x-6x. This could occur if we see a
rapid and profitable expansion outside Turkey (notably in
Kazakhstan and export markets) and significant growth in the
high-end segment (especially McVitie's and Godiva)."

An upgrade would also hinge on certainty that the ultimate parent
company Yildiz Holding's intentions toward Ulker remain consistent
and compatible with a higher rating, especially in terms of
shareholder remuneration.




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

ABOKADO: Rescue Deal Won't Save 150 Jobs
----------------------------------------
Hannah Uttley and Ben Woods at The Telegraph report that a rescue
deal to buy fast food chain Abokado out of administration will not
save the jobs of its 150 staff.

The company, founded in 2004 by Mark Lilley and his wife Lindsay,
filed for administration last week as a dearth of office workers in
the City made it uneconomic for its outlets to reopen after
lockdown, The Telegraph relates.

Abokado has 19 stores in central London that rely on custom from
office workers, The Telegraph discloses.

The group has since been bought out of administration by Mr. Lilley
in a pre-pack administration deal through a new holding company,
Montway, The Telegraph notes.

However, Abokado's 150-strong workforce was made redundant last
month, The Telegraph recounts.

Mr. Lilley, as cited by The Telegraph, said five of Abokado's
stores have closed with immediate effect, while talks with
landlords over the remaining 14 sites continue.


BREDBURY HALL: Enters Administration, 90+ Jobs Affected
-------------------------------------------------------
Emily Heward at Manchester Evening News reports that Stockport's
landmark hotel and country club Bredbury Hall has gone into
administration.

The venue's parent company Newco Ventures Ltd entered the
insolvency process on Oct. 9, with the loss of more than 90 jobs,
Manchester Evening News relates.

The hotel has remained shut since the national lockdown was imposed
in March, with most staff placed on furlough, Manchester Evening
News notes.

According to Manchester Evening News, administrators at business
advisory firm FRP said it had experienced trading difficulties
before closing that had resulted in increased creditor arrears and
financial pressure.

"As a result of these inherent pressures, the hotel was unable to
reopen after lockdown restrictions were eased and an appointment of
administrators was made," they said.

The firm is now seeking a buyer for the 148-room, three-star hotel,
Manchester Evening News discloses.

"The COVID-19 pandemic has put incredible pressure on hospitality
businesses across the country as domestic and international travel
is severely restricted," Manchester Evening News quotes Anthony
Collier, joint administrator and partner at FRP, as saying.

"As trading operations have already ceased, we will be taking steps
to market the hotel for sale in its current form.

"We have a team on-site and working remotely to engage with and
assist all the affected staff through this difficult time.  We
would encourage any interested parties in the business to come
forward as soon as possible."


DEBENHAMS PLC: Mike Ashley Makes Fresh Bid for Business
-------------------------------------------------------
James Warrington at City A.M. reports that Sport Direct tycoon Mike
Ashley has reportedly made a fresh bid for Debenhams, reviving his
long-standing pursuit of the department store chain.

The retail billionaire this month submitted an improved offer as
the auction for Debenhams nears its final stages, City A.M. relays,
citing the Sunday Times.

Debenhams, which collapsed into administration in April, has hired
Lazard to conduct a sale process, City A.M. discloses.

It has also appointed Hilco Capital to liquidate the business if it
fails to find a buyer -- a move that would put more than 12,000
jobs at risk, City A.M. relates.

Ashley previously owned almost 30% of Debenhams and lost GBP150
million when the chain was taken over by its lenders last year,
City A.M. notes.

The outspoken tycoon also backed a failed legal challenge by
landlords over Debenhams' company voluntary arrangement, which
earmarked 50 stores for closure and allowed the firm to slash rents
at 100 further sites, City A.M. states.

Mr. Ashley could be well placed to snap up the chain after India's
richest man reportedly pulled out of the auction, City A.M. says.
Mukesh Ambani, who owns Reliance Retail, had been the frontrunner
in the race, according to City A.M.


EAST WEST: Placed In Administration After Ruling Hits Solvency
--------------------------------------------------------------
Terry Gangcuangco at Insurance Business reports that the High Court
has appointed Ernst & Young LLP's Richard Barker --
rbarker@uk.ey.com -- and Simon Edel -- sedel@uk.ey.com -- as joint
administrators of East West Insurance Company Limited (EWIC), which
was placed into administration on Oct. 12.

"The firm has ceased writing any new insurance," Insurance Business
quotes the Financial Conduct Authority (FCA) as saying in a
release, "and has been focussed on claims management and run-off.
The firm had a range of insurance policies including building
guarantee policies."

It was clarified that the failure was not connected to the
coronavirus pandemic, Insurance Business notes.  The FCA said a
Court of Appeal ruling adversely impacted EWIC's book of UK
building defect liability and subsequently affected the company's
solvency position, rendering it unable to pay its debts, Insurance
Business relates.

The insurance firm's directors, after exploring the available
options, concluded that there was no viable alternative to placing
EWIC into administration, Insurance Business discloses.

According to Insurance Business, the regulator told EWIC's
customers: "If you are an East West policyholder, the
administration of East West doesn't automatically end or cancel
your contract of insurance, and you'll be covered by the Financial
Services Compensation Scheme if you're an eligible policyholder.

"The administrators will write to you in due course.  They will
also write to you with their proposals for the administration,
usually within eight weeks of appointment."

Meanwhile, the company continues to be regulated by the FCA and the
Prudential Regulation Authority (PRA), Insurance Business states.


INEOS GROUP: S&P Maintains 'BB' LongTerm ICR on Watch Negative
--------------------------------------------------------------
S&P Global Ratings maintained its CreditWatch with negative
implications on its 'BB' long-term issuer credit rating on INEOS
Group Holdings (IGH), 'BB+' issue rating on its senior secured
debt, and 'B+' rating on its unsecured notes, where S&P placed them
on July 1, 2020. S&P also assigned its 'BB+' issue rating to the
proposed senior secured debt.

The CreditWatch negative placement continues to reflect potentially
higher leverage in the wider INEOS group, following the
announcement of the purchase of petrochemical assets from BP in
June 2020.

The proposed new debt and subsequent EUR300 million dividend in
2021 will not significantly affect credit metrics.   S&P forecasts
adjusted debt to EBITDA of about 5.0x-5.5x in 2020, recovering to
4.3x-4.7x in 2021. Even though adjusted debt to EBITDA may be weak
for its 'bb' stand-alone credit profile (SACP) assessment for IGH
in 2020, the expected recovery from 2021 will support the SACP. S&P
estimates the proposed transaction, and subsequent EUR300 million
dividend, will have a limited 0.2x effect on debt to EBITDA in
2021. Still, the recovery remains highly uncertain and is subject
to a rebound of global economies and eventually increasing demand
for the company's products. S&P therefore continues to see the risk
that it may revises downward the SACP in the next six to 12
months.

Future financial policy decisions will be key to maintaining the
'bb' SACP on IGH.   S&P said, "Even though we do not expect
significant pressure on metrics because of the dividend in 2021,
the company's readiness to make distributions during still-weak
industry conditions shows potentially higher risk tolerance. IGH's
financial policy is to keep reported net debt to EBITDA (as defined
by management) of 3x through the cycle. In the first half of 2020,
this ratio stood at 3.8x on a historical cost basis (3.3x on a
replacement cost basis). The 2021 dividend payment will limit
deleveraging and we do not anticipate reported net debt to EBITDA
will recover below 3x in 2021. We expect that free operating cash
flow (FOCF) in 2021 will be sufficient to cover the dividend, but
even if it were not, we believe the company would nonetheless
proceed with the distribution, because projects in the wider INEOS
group (in particular INEOS Automotive) require investments. As a
base case, we anticipate that IGH will continue to pay dividends of
EUR150 million-EUR250 million (similar to historical levels) per
year in the future. If dividends were constantly higher and if
discretionary cash flow (DCF) were negative, this would likely
pressure the SACP. We further note the unpredictable nature of
acquisitions that IGH may consider; its headroom to acquire new
assets is very low."

S&P said, "The rating and CreditWatch on IGH continue to reflect
our view of the wider INEOS group.   The wider INEOS group includes
Inovyn, Enterprises, Styrolution, Oil & Gas, and other entities
within INEOS Industries. Based on our calculations and publicly
available information for entities that we don't rate, the wider
INEOS group has lower leverage than IGH. We view IGH as a core
member of the wider INEOS group and as such, the rating is equal to
our wider INEOS group credit profile (GCP). The combined group is
bigger (IGH is about 50% of combined EBITDA), more diversified, and
benefits from lower leverage, which we expect to continue over
2020-2021. On June 29, 2020, INEOS group announced the purchase of
BP's petrochemical division for $5 billion. Although INEOS has not
announced the final capital structure, we understand that at least
$4 billion will be debt, which might weaken our assessment of the
GCP. We understand that IGH will not be part of the transaction,
will not provide financing, and will not guarantee new debt. Still,
given our rating on IGH is underpinned by the wider INEOS GCP, we
reflect the potential weakness in the creditworthiness of the wider
group in our CreditWatch negative on IGH.

"We will resolve the CreditWatch once we have more information
regarding the capital structure of the wider INEOS group following
its purchase of petrochemical assets from BP, and form a view on
the business benefits of the transaction to the wider INEOS group.

"We could lower our rating on the wider INEOS group and all its
entities (including IGH) by one notch depending on the capital
structure of the combined group and each entity within the group,
as well as the respective financial policies. We expect to resolve
the CreditWatch as further information becomes available and before
the transaction closes in late 2020."


INTERNATIONAL PERSONAL: Fitch Cuts LT Issuer Default Rating to BB-
------------------------------------------------------------------
Fitch Ratings has downgraded International Personal Finance Plc's
Long-Term Issuer Default Rating and senior unsecured debt rating to
'BB-' from 'BB' and affirmed the Short-Term IDR at 'B'. IPF's
Long-Term IDR and senior debt rating have been placed on Rating
Watch Negative (RWN).

Fitch has also assigned IPF's upcoming issue of euro-denominated
senior unsecured bonds a 'BB-(EXP)' rating. The expected rating has
been placed on RWN. The final rating is contingent upon the receipt
of final documents conforming to information already received.

The rating action follows IPF's announcement on October 14, 2020
that it had launched an exchange offer for its EUR412 million
senior unsecured bond (XS1054714248) maturing in April 2021 (of
which EUR397 million is outstanding) and that it is in the process
of amending its bank covenants that have become necessary because
of the negative impact the pandemic is likely to have on IPF's
covenant tests at future testing dates.

KEY RATING DRIVERS

IDRs

The downgrade reflects Fitch's view that IPF's credit profile,
notably its funding and coverage profile, is no longer commensurate
with its previous rating level. Fitch believes IPF's need to amend
certain covenants and its decision to exchange rather than
refinance its April 2021 bond maturity is indicative of more
constrained debt capital market access than previously assumed by
Fitch. This weighs on its assessment of IPF's funding profile,
which is also affected by an expected increase in funding costs and
continued concentrated funding (by both sources and maturities) as
a result of the planned transaction

The RWN on IPF's Long-Term IDR and senior secured debt rating
reflects its view that IPF could be downgraded further if the
refinancing of its April 2021 bond maturity were further delayed or
not successfully executed in line with terms announced on October
14, 2020.

IPF's IDRs are underpinned by the low balance-sheet leverage by
conventional finance company standards, structurally profitable
business model, despite high impairment charges, and
cash-generative and short-term loan book. The rating also captures
IPF's high-risk lending focus, evolving digital business, and
inherent vulnerability to regulatory risks. IPF has a
geographically diversified loan book that allows it to mitigate
pandemic-related deteriorating conditions in individual markets.

Like other companies in the high-cost credit sector, IPF faces
material regulatory risks, including additional limitations imposed
by governments as a pandemic response. These include a
debt-repayment moratorium (Hungary, Romania) and ad-hoc interest
rate caps in several other jurisdictions.

IPF's management intends to exchange the existing bond with
maturity in April 2021 into new issue with five years' maturity.
The proposed deal assumes partial cash repayment at around 20% upon
exchange. To enable an exchange of the full nominal, amount the
offer requires a voting majority of at least 75% of the bondholders
participating in the upcoming bondholder meeting in early November
2020. If realised, the bond exchange would eliminate the near-term
refinancing risk although it would maintain the maturity
concentration in the funding profile.

While the exchange offer represents a material reduction in terms
according to Fitch's criteria (largely because of the maturity
extension), it is, Fitch believes, not being conducted to avoid
bankruptcy, similar insolvency or intervention proceedings, or a
traditional payment default. Consequently, Fitch does not treat the
exchange offer as a distressed debt exchange.

IPF's cash-generative and short-term loan portfolio (12 months'
average maturity) allows for potential debt repayment through rapid
deleveraging. This would, however, require a prolonged underwriting
freeze and, if realised, would trigger a longer-term erosion of the
company's franchise and earning capacity. IPF continued
accumulating liquidity in 3Q20, bringing its unrestricted cash
balance to GBP172 million. Undrawn committed credit facilities
comprise another GBP176 million as of end-3Q20.

IPF reported a loss of GBP53 million in 1H20 (GBP56 million net
profit in 1H19), mainly due to a 15% drop in revenue from
contracted lending activities in 2Q20 and a pandemic-related
impairment charge of GBP91 million. Credit issued for 1H20 was 42%
lower yoy at GBP378 million, resulting in a yoy reduction in
outstanding net receivables of 25% to GBP756 million at end-1H20.
The impaired loan ratio increased marginally to 20% at end-1H20
(measured as Stage 3 net receivables/total net receivables) from
19% at end-2019.

IPF's financial performance recovered in 3Q20. The company
increased loan origination and improved collection performance. in
the absence of significant lockdown tightening in Poland, Hungary
and Mexico, Fitch expects IPF to remain profitable in 4Q20, while
recording a net loss for the whole year. IPF's strong net interest
margin provides a buffer against an expected increase in funding
costs and impairment.

IPF's leverage remains adequate for a lending business focused on
high-risk customers and bearing significant impairment risks. IPF's
equity base fell by 11% to GBP389 million at end-1H20 from GBP436
million at end-2019 but a reduction in its asset base supported its
leverage ratio, which remains a credit strength, with gross
debt/tangible equity at 3x at end-1H20.

SENIOR DEBT

The rating of IPF's senior unsecured notes is in line with the
group's Long-Term IDR, reflecting Fitch's expectation for average
recovery prospects given that all IPF's funding is unsecured.

Fitch assigned the expected rating to a new bond resulting the
exchange of the existing euro-denominated bond due in April 2021.

ESG Governance Score - Social Impacts: IPF has an ESG Relevance
Score of '4' for Exposure to Social Impacts stemming from the
business model focused on high-cost consumer lending, and hence
exposure to shifts of consumer or social preferences, and to
increasing regulatory scrutiny, including tightening of interest
rate caps. Fitch views this as having a moderate effect on the
rating, with a direct impact on the pricing strategy, product mix,
and targeted customer base. It is relevant to the ratings in
conjunction with other factors.

RATING SENSITIVITIES

IDRS AND SENIOR DEBT

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

  -- Fitch would downgrade IPF's Long-Term IDR and debt ratings by
at least one notch should IPF be unable to refinance its April 2021
bond either through a successful exchange offer or other funding
sources in the short-term. The magnitude of the downgrade would
depend on the impact a reduction of IPF's receivables book (in
order to generate cash in time for the April 2021 maturity) would
have on its franchise and business model stability in the
medium-term.

  -- Inability to amend its bank covenants in line with its October
14, announcement would also lead to a downgrade.

  -- A notable deterioration of solvency with leverage measured as
gross debt to tangible equity exceeding 4x would likely lead to a
downgrade.

  -- An increase in regulatory risks (related to rate caps and
early settlement rebate) having a materially negative impact on
IPF's profitability and equity base would also be rating-negative.

  -- In the normal course of its business, IPF's ratings also
remain sensitive to a material deterioration of profitability or
asset quality as its product mix evolves, for example as the
digital proportion of the loan book grows or as loan maturities are
extended.

  -- IPF's senior unsecured debt rating is principally sensitive to
a downgrade of the company's Long-Term IDR.

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

  -- A successful exchange offers in line with terms outlined by
IPF on October 14 or other refinancing of its April 2021 bond
maturity with other capital market sources at comparable terms
would likely lead to an affirmation of IPF's Long-Term IDR and
senior unsecured debt rating at their current level. In this case,
Fitch would probably assign a Negative Outlook to IPF's Long-Term
IDR to reflect pandemic-related pressures on the company's
financial profile, notably asset quality and earnings and
profitability.

  -- Given the RWN and the challenging operating environment, an
upgrade of IPF's ratings is unlikely in the short- to medium-term
and would require a material improvement in its funding profile via
diversification by sources and removing maturity spikes, coupled
with the recovery of the financial profile.

  -- IPF's senior unsecured debt rating is principally sensitive to
an upgrade of the company's Long-Term IDR.

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

International Personal Finance plc has an ESG Relevance Score of
'4' for Exposure to Social Impacts due to focus on high-cost
consumer lending, which give rise to a regulatory risk and 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.


MANSARD MORTGAGES 2007-1: Fitch Affirms BB- Rating on Cl. B2a Debt
------------------------------------------------------------------
Fitch Ratings has affirmed Mansard Mortgages 2007-1 Plc, removed
the class B2a notes from Rating Watch Negative and assigned them a
Negative Outlook.

RATING ACTIONS

Mansard Mortgages 2007-1 PLC

Class A2a XS0293438965; LT AAAsf Affirmed; previously AAAsf

Class B1a XS0293442215; LT BBBsf Affirmed; previously BBBsf

Class B2a XS0293446711; LT BB-sf Affirmed; previously BB-sf

Class M1a XS0293458054; LT AAAsf Affirmed; previously AAAsf

Class M2a XS0293460381; LT AA-sf Affirmed; previously AA-sf

TRANSACTION SUMMARY

The transaction is backed by residential mortgages originated by
Rooftop Mortgages, a non-conforming mortgage lender.

KEY RATING DRIVERS

Off RWN

The class B2a notes have been removed from RWN where they were
placed in April in response to the coronavirus outbreak. Fitch has
now analysed the transaction under its coronavirus assumptions and
considered the ratings sufficiently robust to be affirmed.

Fitch placed the class B2a notes on RWN due to an expectation of
weakening asset performance. These notes were considered exposed
both due to their junior ranking for principal redemptions and as
their interest payments rely on sufficient revenue funds being
available at a junior position in the priority of payments. Since
April there has not been substantial performance deterioration and
credit enhancement has continued to increase. Consequently, Fitch
has affirmed the rating with a Negative Outlook.

Coronavirus Related Alternative Assumptions

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

The combined application of revised 'Bsf' representative pool
weighted average foreclosure frequency (WAFF) and revised rating
multiples resulted in a multiple to the current FF assumptions of
1.3x at 'Bsf' and 1.0x at 'AAAsf'. The alternative coronavirus
assumptions are more modest for higher rating levels as the
corresponding rating assumptions are already meant to withstand
more severe shocks.

Fitch also applied a payment holiday stress for the first six
months of projected collections, assuming 25% of interest
collections will be lost, and related principal receipts will be
delayed. Payment holiday data was not provided in the investor
reports. Fitch estimated the current payment holiday percentage by
comparing the interest collection in June 2020 IPD against the
previous interest payment dates. The estimate of payment holiday
percentage for these pools as of June 2020 is around 25%.

Increasing Credit Enhancement (CE)

The cash reserve is non-amortising due to irreversible trigger
breaches. As a result, CE for all notes is continuing to increase
and is expected to do so for the life of the transaction. CE for
the senior notes increased to 60.0% from 59.7% at its last review
in December 2019, while the increase in CE for the junior notes was
relatively higher, to 3.2% from 2.8%. Fitch's analysis showed the
CE available to protect against expected losses was sufficient to
withstand the relevant stresses at each notes' current rating,
leading to their affirmation.

Tail Risk

The portfolio is very seasoned and has lost a substantial part of
its original granularity. The pool has 520 loans remaining and the
small loan count could lead to volatile performance and a
dependency on the reserve fund to protect against tail risk losses,
which could limit the rating of the junior notes.

As a result of the potential performance volatility and tail risk
Fitch has affirmed the class B1a and B2a notes at one notch below
their model-implied ratings.

Interest Only (IO) Concentration

The transaction has a material concentration of IO loans maturing
within a three-year period during the lifetime of the transaction.
IO loans maturing between 2030 and 2032 make up 59.5% of the
portfolio. For the owner-occupied sub-portfolio, the IO
concentration WAFF is lower than the standard portfolio WAFF. As a
result, the IO concentrations do not constrain the notes' ratings.

There are a small number of owner-occupied IO loans that have
failed to make their bullet payments at maturity. The servicer has
implemented alternative plans with these borrowers, which have
recovered part of the amounts due since last reviews. If this trend
reverses and grows to a significant number, Fitch may apply more
conservative assumptions in its asset and cash flow analysis.

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 potential
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%. The results indicate an upgrade of five
notches for the junior notes.

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 initially
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 a four-notch downgrade
for the junior tranche.

The transaction's performance may be affected by changes in market
conditions and economic environment. Weakening economic 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 notes' ratings
susceptible to potential negative rating action depending on the
extent of the decline in recoveries. Fitch conducts sensitivity
analyses by stressing both a transaction's base case FF and 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 pool ahead of the transaction's initial
closing. The subsequent performance of the transaction 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

Mansard Mortgages 2007-1 PLC: Customer Welfare - Fair Messaging,
Privacy & Data Security: 4, Human Rights, Community Relations,
Access & Affordability: 4

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.

Mansard Mortgages 2007-1 has an ESG Relevance Score of 4 for "Human
Rights, Community Relations, Access & Affordability" due to a
significant proportion of the pools containing owner-occupied loans
advanced with limited affordability checks, which has a negative
impact on the credit profile, and is relevant to the ratings in
conjunction with other factors.

Mansard Mortgages 2007-1 has an ESG Relevance Score of 4 for Social
Impact due to accessibility to affordable housing and compliance
risks including fair lending practices, mis-selling,
repossession/foreclosure practices and 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.


PREFERRED RESIDENTIAL 06-1: Fitch Cuts Class E1c Debt to Bsf
------------------------------------------------------------
Fitch Ratings has downgraded two tranches of two Preferred
Residential Securities (PRS) RMBS transactions and affirmed 12
tranches.

RATING ACTIONS

Preferred Residential Securities 06-1 PLC

Class B1a XS0243655577; LT AAAsf Affirmed; previously AAAsf

Class B1c XS0243665022; LT AAAsf Affirmed; previously AAAsf

Class C1a XS0243658670; LT AAAsf Affirmed; previously AAAsf

Class C1c XS0243665964; LT AAAsf Affirmed; previously AAAsf

Class D1a XS0243659728; LT Asf Affirmed; previously Asf

Class D1c XS0243666939; LT Asf Affirmed; previously Asf

Class E1c XS0243669529; LT Bsf Downgrade; previously B+sf

Class FTc XS0243675336; LT Bsf Affirmed; previously Bsf

Preferred Residential Securities 05-2 PLC

Class B1a XS0234207594; LT AAAsf Affirmed; previously AAAsf

Class B1c XS0234208485; LT AAAsf Affirmed; previously AAAsf

Class C1a XS0234209020; LT AAAsf Affirmed; previously AAAsf

Class C1c XS0234209459; LT AAAsf Affirmed; previously AAAsf

Class D1c XS0234212594; LT A-sf Affirmed; previously A-sf

Class E1c XS0234213642; LT Bsf Downgrade; previously BB+sf

TRANSACTION SUMMARY

The transactions are securitisations of seasoned non-conforming
residential mortgage loans originated by Preferred Mortgages
Limited. The loans are buy-to-let (BTL) and non-conforming
owner-occupied (OO).

KEY RATING DRIVERS

Coronavirus Related Alternative Assumptions

Fitch expects a generalised weakening in borrowers' ability to keep
up with mortgage payments due to the economic impact of the
coronavirus pandemic and related containment measures. As a result,
Fitch applied updated criteria assumptions to PRS 05-2 and PRS
06-1's mortgage portfolios. The combined application of revised
'Bsf' representative pool's weighted average foreclosure frequency
(WAFF), revised rating multiples and, for PRS 06-1 only, the
arrears adjustment resulted an increase to the current FF
assumptions ranging from 1.15x to 1.30x at 'Bsf' and 1.00x to 1.04x
at 'AAAsf'. The updated assumptions are more modest for higher
ratings as the corresponding rating assumptions are already meant
to withstand more severe shocks.

The transactions may also face some liquidity constraints if many
borrowers opt for a payment holiday. Considering this, Fitch
applied a payment holiday stress for the first six months of its
projections, assuming up to 15% of interest collections will be
lost and related principal receipts will be delayed. As of early
September 2020, approximately 7% of the loans for PRS 05-2 and 9%
of the loans for PRS 06-1 were subject to a payment holiday.

Increasing Credit Enhancement (CE)

The sequential redemption of the notes has led to a build-up in CE
for all tranches. Due to trigger breaches, the transactions are not
expected to revert to pro rata payments, nor is the reserve fund
expected to amortise. Hence, CE for the notes is expected to
increase.

Volatile performance

PRS 05-2 and PRS 06-1 have seen arrears at the higher end of the
non-conforming spectrum, often seeing larger increases than other
non-conforming pools. Three months arrears have increased
significantly for PRS 05-2, to 19.3% in June 2020 from 13.4% in
December 2019. Arrears are also expected to increase for PRS 06-1
as a result of the COVID-19 pandemic. Consequently, the
subordinated notes, class E1c for both PRS 05-2 and PRS 06-1, which
are most sensitive to movements in WAFF and WARR, have been
downgraded.

Excess Spread Note

The net excess spread for PRS 06-1 has declined over the past two
years and is currently at 0.5%. Fitch expects the excess spread
generated in the PRS 06-1 to be sufficient to redeem the excess
spread notes within 12-18 months, considering the small outstanding
balance the continued payment to the notes in 2020, even when
payment holidays were at the peak, and the low prepayment rates.
This led to the affirmation of the class F1c notes.

Loans Past Expiry

There are a small number of OO interest-only loans that failed to
make their bullet payments at maturity (0.8% for PRS 05-2 and 1.7%
for PRS 06-1). If this trend grows to a significant number, Fitch
may apply more conservative assumptions in its asset and cash flow
analysis for these loans.

Tail Risk

Both transaction portfolios are very seasoned and have lost most of
their original granularity. PRS 05-2 has 477 loans remaining in the
pool and PRS 06-01 735. The small loan count could lead to
dependency on the reserve fund to protect against tail risk losses,
which could limit the ratings of the junior notes in both
transactions.

As a result of this tail risk, along with the transactions volatile
arrears performance, Fitch has constrained the class D1c notes for
PRS 05-2 and class D1a and D1c notes for PRS 06-1 at two notches
below their model-implied ratings.

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 potential
upgrades. Fitch tested an additional rating sensitivity scenario by
applying a decrease in the FF of 15% and an increase in the RR of
15%. For PRS 05-2, the rating on the class D notes could be
upgraded by up to five notches and the class E notes by nine
notches. For PRS 06-1 the rating on the class D notes could be
upgraded by up to four notches, the class E notes by up to seven
notches and the class F notes by up to four 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 an adverse rating
impact for PRS 05-1 class E notes and for PRS 06-1 class E notes
and class F notes to below 'B-sf'.

The discontinuation of LIBOR by December 2021 could introduce basis
risk as the whole pool and the notes are currently linked to LIBOR
and the replacement index remains uncertain, creating the
possibility of asset and liability index mismatching.

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

ESG Relevance Scores are not formally part of the rating committee
materials on which committee members vote and, as such, they are
not subject to the Ratings Process Manual (RPM). Instead the
Committee process is used to ensure at least annual administrative
review of ESG Relevance Scores. It is acceptable to the committee
members to review and question the ESG Relevance Scores but queries
may be resolved outside the committee process.

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

Preferred Residential Securities transactions have an ESG Relevance
Score of 4 for "Human Rights, Community Relations, Access &
Affordability" due to a significant proportion of the pools
containing owner-occupied loans advanced with limited affordability
checks, which has a negative impact on the credit profile, and is
relevant to the ratings in conjunction with other factors.

Preferred Residential Securities transactions have an ESG Relevance
Score of 4 for "Customer Welfare - Fair Messaging, Privacy & Data
Security" due to the pools exhibiting an interest-only maturity
concentration of legacy non-conforming owner-occupied loans of
greater than 47%, which has a negative impact on the credit
profile, and is relevant to the ratings in conjunction with other
factors.


WESTDALE PRESS: Brexit, Covid-19 Pandemic Prompt Administration
---------------------------------------------------------------
Jo Francis at Printweek reports that Westdale Press has gone into
administration after being fatally wounded by the double-whammy of
Brexit and the Covid-19 pandemic.

Administrators from Menzies were appointed at the Cardiff-based
company on Oct. 15 by managing director and owner Alan Padbury,
Printweek relates.

Mr. Padbury told Printweek that he had strived to find a way to
save the business, which employed around 85 staff.  It previously
had sales of GBP13 million but had been "limping along" at about
GBP8 million this year, Printweek notes.

According to Printweek, he said Westdale had been ineligible for
CBILS loans because the group had posted losses in its most recent
accounts, after customers deferred projects and put work on hold
due to Brexit uncertainty.

A Bounceback loan would have restricted the firm from selling
assets "and we knew we had to restructure".

Westdale's staff have been laid off and the firm has ceased
printing. Padbury is helping the administrators deal with the
company's affairs, Printweek discloses.

Westdale ran B1 sheetfed presses and the award-winning printer
specialized in high-end brochures, magazines, catalogues, books and
other marketing collateral.  The firm also had extensive in-house
finishing capabilities.



                           *********


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 * * *