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

                          E U R O P E

          Thursday, November 5, 2020, Vol. 21, No. 222

                           Headlines



B O S N I A   A N D   H E R Z E G O V I N A

BH AIRLINES: November 12 Bid Deadline Set for Assets


C R O A T I A

3 MAJ: Cuts Net Loss to HRK8.98MM in First Nine Months of 2020
VIRO: Files for Launch of Pre-Bankruptcy Proceedings


F R A N C E

EUROPCAR MOBILITY: S&P Affirms 'CC' ICR on Entering Grace Period


G E R M A N Y

WIRECARD AG: ESMA Criticizes BaFin on Handling of Accounting Matter


I R E L A N D

PENTA CLO 8: S&P Assigns Prelim. B- Rating on Class F Notes


N E T H E R L A N D S

HEMA BV: S&P Hikes ICR to 'CCC+' on Completed Distressed Exchange


R U S S I A

FIRST COLLECTION: S&P Alters Outlook to Pos. & Affirms 'B-' ICR


U K R A I N E

KYIV CITY: Fitch Assigns B(EXP) Rating on Upcoming Domestic Bond


U N I T E D   K I N G D O M

PREMIER OIL: Creditors Approve Proposed Chrysaor Merger
SALFORD FC: Fails to Meet CVA Terms, Gets Six Points Deduction
USIL EUROPEAN 36: DBRS Confirms B(high) Rating on Class F Notes

                           - - - - -


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B O S N I A   A N D   H E R Z E G O V I N A
===========================================

BH AIRLINES: November 12 Bid Deadline Set for Assets
----------------------------------------------------
Gabriel Jorby at SeeNews reports that bankrupt Bosnian air carrier
BH Airlines will hold an auction for the sale of its assets,
including a 1979 airplane produced by American manufacturer Piper
Aircraft.

The bankrupt carrier will also out up for sale airplane stairs,
trolleys, as well as office furniture and computers, SeeNews
relays, citing news portal eKapija.com.

The application deadline is Nov. 12, as the bids will be opened on
Nov. 17, SeeNews discloses.




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C R O A T I A
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3 MAJ: Cuts Net Loss to HRK8.98MM in First Nine Months of 2020
--------------------------------------------------------------
Iskra Pavlova at SeeNews reports that Croatian shipyard 3. Maj said
the company pared its net loss to HRK8.98 million (US$1.4
million/EUR1.2 million) in the first nine months of 2020, from
HRK51.68 million a year earlier, as revenue rose faster than costs.


The company said in an unaudited, unconsolidated financial
statement earlier this week operating revenue jumped to HRK208.4
million in January-September, from HRK10.7 million a year earlier,
while operating costs rose to HRK205.7 million from HRK58.5
million, SeeNews relates.

Financial revenue, however, declined to HRK4.7 million from HRK18
million in the period under review, while financial expenses fell
to HRK16.4 million from HRK21.8 million, which resulted in total
revenue going beyond total expenses for the nine-month period,
SeeNews discloses.

                          About 3 Maj

3 Maj is part of troubled Croatian shipbuilding group Uljanik. The
group includes another major shipyard in Croatia, Uljanik Shipyard,
along with smaller subsidiaries.

In May 2019, a Croatian court launched bankruptcy proceedings
against Uljanik Shipyard and the Uljanik Group at the request of
the government's financial agency, citing the companies' overdue
debt.

3 Maj avoided the launch of bankruptcy proceedings in September
2019 after the government decided to issue guarantees for a HRK150
million loan from state-owned development bank HBOR to the
shipbuilding company.


VIRO: Files for Launch of Pre-Bankruptcy Proceedings
----------------------------------------------------
Iskra Pavlova at SeeNews reports that Croatian sugar producer Viro
said it filed for the launch of pre-bankruptcy proceedings, hit by
a lasting lack of liquidity.

Viro said in a statement on Nov. 2, the company submitted its
request to the commercial court in Zagreb on Oct. 30, SeeNews
relates.

In September, Viro said its bank accounts were blocked by one of
its creditors -- Belgium-based sugar company SESVanderHave N.V.,
over an unpaid claim of HRK1.47 million (US$226,000/EUR194,000),
SeeNews recounts.

According to SeeNews, in a separate statement on Nov. 2, the
Croatian sugar producer said it narrowed its consolidated net loss
to HRK46 million in the first nine months of 2020, from HRK52
million a year earlier, while its total consolidated revenue
plunged 86% to HRK81 million in the period under review.




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F R A N C E
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EUROPCAR MOBILITY: S&P Affirms 'CC' ICR on Entering Grace Period
----------------------------------------------------------------
S&P Global Ratings affirmed its 'CC' issuer credit rating on
Europcar Mobility Group and its issue ratings on the group's debt.

On Oct. 26, 2020, Europcar announced its intention to use the
30-day grace period for the interest due on its 2024 and 2026
senior notes.

Europcar has started restructuring negotiations with corporate
lenders and elected to use the grace period for the next interest
payments due on its corporate senior notes.  In recent weeks,
Europcar has received consent from its lenders to appoint a
mandataire ad hoc and initiated discussions with corporate debt
creditors regarding a debt restructuring. Although the outcome and
duration of these negotiations remains uncertain, Europcar
announced it has elected to use the 30-day grace period for the
next interest payments due on its corporate senior notes, in order
to include the coupons in the restructuring negotiations. Europcar
did not pay the EUR9 million interest for the 2026 notes on the
Oct. 30, 2020 due date and will not pay the EUR12 million interest
for the 2024 notes on the Nov. 16 due date.

S&P said, "At this stage, we think Europcar is likely to pay the
next interest due on its senior notes within the grace period, if
it doesn't reach a restructuring agreement by then.   Europcar's
capital structure is subject to cross-default clauses. In
particular, the group's fleet notes are subject to cross-default on
the corporate bonds. We anticipate that Europcar will seek to avoid
a default on the fleet notes, which form the core funding for the
group's fleet assets. This acts as an incentive for Europcar to
avoid an event of default on the corporate notes that are subject
to restructuring negotiations. As such, we do not expect the
company to miss an interest payment. Instead, it would pay the
EUR21 million in interest due from the liquidity on hand, if it
doesn't agree a restructuring before the end of the grace period.
As of Sept. 30, 2020, Europcar Mobility Group had EUR225 million of
unrestricted cash fully available; EUR138 million of cash at
operating companies (that we understand cannot be transferred to
the group); and EUR6 million was available under its corporate
revolving credit facility (RCF).

"The negative outlook indicates that we consider a default of
Europcar in the next 12 months to be a near certainty. The group
has appointed a mandataire ad hoc and is negotiating with corporate
lenders to restructure its debt. The negative outlook also
incorporates the risk that the group does not pay the interest
coupons due on its corporate notes within the 30-day grace period.

"We would lower our rating on Europcar to 'SD' (selective default)
and our issue ratings on the affected debt instruments to 'D', upon
a selective default.

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

"We view an upgrade as remote. We could raise the rating on
Europcar if it failed to agree a restructuring with its corporate
lenders, but paid the interest due and we no longer viewed default
as a virtual certainty. Such a scenario would need to include
material additional liquidity support for the group that we did not
define as a default."




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G E R M A N Y
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WIRECARD AG: ESMA Criticizes BaFin on Handling of Accounting Matter
-------------------------------------------------------------------
Olaf Storbeck at The Financial Times reports that the European
Securities and Markets Authority (ESMA) has criticized Germany's
financial regulator BaFin and the country's accounting watchdog
FREP for their "deficient" handling of the Wirecard accounting
scandal.

In a report published on Nov. 3, in which the regulator detailed
the result of its investigation into the Wirecard accounting fraud,
Esma wrote that BaFin and FREP ignored red flags over Wirecard's
financial reporting for years, the FT relates.

"FREP did not pick up signals in the international media and failed
to select Wirecard for examination in the period between 2016 and
2018," the FT quotes Esma, as saying, adding that BaFin also had
not requested FREP to take a closer look during that period
either.

"[The] report identifies deficiencies in the supervision and
enforcement of Wirecard's financial reporting," said Esma chairman
Steven Maijoor, adding that high-quality financial reporting was
essential for maintaining investor trust in financial markets.

According to the FT, Germany's small shareholder lobby group, SdK,
said on Nov. 3 it was planning to sue the German government for
damages for losses incurred by Wirecard shareholders.

Esma's investigation began in June after the German payments group
collapsed into insolvency in one of Europe's biggest postwar
accounting frauds, the FT recounts.

Starting in 2015, the Financial Times had raised serious questions
over Wirecard's accounting in a series of articles, and in 2016
short-sellers published a critical report about the company's
conduct, the FT relays.

In its report, Esma, as cited by the FT, said the scope of an
earlier FREP probe into Wirecard in 2014 had been too narrow.

The regulator voiced similar criticism about the investigation that
FREP launched in 2019 on BaFin's request, which failed to focus on
Wirecard's outsourced business in Asia, the operations at the core
of allegations raised by whistleblowers, the FT discloses.

In two separate statements that were published in an annex to the
report, BaFin and FREP rejected most of the specific points raised
by Esma, the FT notes.




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I R E L A N D
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PENTA CLO 8: S&P Assigns Prelim. B- Rating on Class F Notes
-----------------------------------------------------------
S&P Global Ratings assigned preliminary credit ratings to Penta CLO
8 DAC's class A, B-1, B-2, C, D, E, and F notes. At closing, the
issuer will also issue EUR32.70 million of unrated subordinated
notes.

As of the preliminary ratings date, the issuer had identified
approximately 95% of the target effective date portfolio. S&P said,
"We consider that the target portfolio will be well-diversified,
primarily comprising broadly syndicated speculative-grade senior
secured term loans. Therefore, we have conducted our credit and
cash flow analysis by applying our criteria for corporate cash flow
CDOs."

  Portfolio Benchmarks
                                                       Current
  S&P Global Ratings weighted-average rating factor      2,733
  Default rate dispersion                                  582
  Weighted-average life (years)                           5.31
  Obligor diversity measure                                 90
  Industry diversity measure                                17
  Regional diversity measure                               1.3
  Weighted-average rating                                  'B'
  'CCC' category rated assets (%)                         1.25
  'AAA' weighted-average recovery rate                   37.43
  Floating-rate assets (%)                                 100
  Weighted-average spread (net of floors; %)              3.78

S&P said, "Under our structured finance sovereign risk criteria, we
consider that the transaction's exposure to country risk is
sufficiently mitigated at the assigned preliminary ratings.

"In our cash flow analysis, we used the EUR350 million target par
amount, a weighted-average spread of 3.60%, the reference
weighted-average coupon (5.50%), and the weighted-average recovery
rates as indicated by the collateral manager. We applied various
cash flow stress scenarios, using four different default patterns,
in conjunction with different interest rate stress scenarios for
each liability rating category.

"Our credit and cash flow analysis shows that the class B-1, B-2,
C, D, E, and F notes benefit from break-even default rate and
scenario default rate cushions that we would typically consider to
be in line with higher ratings than those assigned. However, as the
CLO is still in its reinvestment phase, during which the
transaction's credit risk profile could deteriorate, we have capped
our preliminary ratings on the notes.

"The Bank of New York Mellon, London Branch is the bank account
provider and custodian. At closing, we expect its documented
replacement provisions to be in line with our counterparty criteria
for liabilities rated up to 'AAA'."

"The issuer can purchase up to 20% of non-euro assets, subject to
entering into asset-specific swaps. The downgrade provisions of the
swap counterparty or counterparties are in line with our
counterparty criteria for liabilities rated up to 'AAA'.

"At closing, we expect the issuer to be bankruptcy remote, in
accordance with our legal criteria."

The CLO is managed by Partners Group (UK) Management. Under S&P's
"Global Framework For Assessing Operational Risk In Structured
Finance Transactions," published on Oct. 9, 2014, the maximum
potential rating on the liabilities is 'AAA'.

The issuer may purchase loss mitigation obligations to enhance the
recovery value of a related defaulted or credit impaired asset of
the same obligor.

The cumulative amount of loss mitigation obligations that the
issuer may purchase is limited to 10% of the par value test
numerator at any point in time.

To purchase loss mitigation obligations, the issuer may use
principal proceeds--as long as each rated note's par value test is
satisfied after the purchase--or interest proceeds--as long as the
purchase does not cause any interest deferral on any rated notes
and the coverage tests are satisfied on the immediately succeeding
payment date.

Amounts received from loss mitigation obligations purchased using
principal proceeds will be paid into the principal account.

If a loss mitigation obligation satisfies all of the eligibility
criteria, the manager may designate the asset as a collateral
obligation provided that the reinvestment criteria are satisfied.
Upon the designation and only if the loss mitigation obligation was
originally purchased using interest proceeds, the account bank will
transfer from the principal account into the interest account an
amount equal to the asset's market value when it was designated a
collateral obligation.

S&P said, "Following our analysis of the credit, cash flow,
counterparty, operational, and legal risks, we believe our
preliminary ratings are commensurate with the available credit
enhancement for each class of notes.

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

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

S&P Global Ratings acknowledges a high degree of uncertainty about
the evolution of the coronavirus pandemic. The current consensus
among health experts is that COVID-19 will remain a threat until a
vaccine or effective treatment becomes widely available, which
could be around mid-2021. S&P said, "We are using this assumption
in assessing the economic and credit implications associated with
the pandemic. As the situation evolves, we will update our
assumptions and estimates accordingly."

  Ratings List

  Class    Prelim. rating   Amount (mil. EUR)
  A          AAA (sf)         210.00
  B-1        AA (sf)           11.00
  B-2        AA (sf)           22.00
  C          A (sf)            28.25
  D          BBB (sf)          18.00
  E          BB- (sf)          22.00
  F          B- (sf)            7.00
  Sub notes  NR                32.70

  NR--Not rated.




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N E T H E R L A N D S
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HEMA BV: S&P Hikes ICR to 'CCC+' on Completed Distressed Exchange
-----------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Hema B.V. to
'CCC+' from 'SD' (selective default), and affirmed its ratings on
the newly issued debt instruments.

S&P said, "At the same time, we are withdrawing the ratings on the
old debt instruments, following completion of the
recapitalization.

"The negative outlook reflects our expectation that Hema's
operating performance will decline materially in fiscal 2020, and
may not recover in fiscal 2021, resulting in materially negative
FOCF.

"We consider that the risk of Hema defaulting in the next 12 months
has reduced, but the sustainability of the group's capital
structure remains at risk."

Following completion of the debt restructuring on Oct. 19, 2020,
the financial burden on Hema's balance sheet has materially reduced
to EUR422 million (debt of the restricted group excludes EUR120
million of the payment-in-kind [PIK] notes issued by Hema's holding
company) from EUR830 million under the old capital structure. S&P
said, "Despite this, and Hema's operating performance recovering,
we still believe the sustainability of the group's capital
structure depends on favorable business and economic conditions. We
believe economic recovery is likely to be delayed, given the second
wave of COVID-19 infections increasing risk of stricter social
distancing measures or lockdowns in Hema's markets. We understand
that Hema's stores in Germany and Belgium will remain closed in
November 2020, due to local lockdowns, while stores in the
Netherlands remain open. There is also risk that lockdowns in
Germany and Belgium could be extended, putting pressure on the
group's operating performance. In this environment, even with lower
debt on the balance sheet following the group's debt restructuring,
we see a risk that financial commitments might be unsustainable in
the longer term. This is because we expect reported FOCF (cash flow
from operations after capital expenditure and before any disposal
proceeds) after lease payments will be negative in the next 12
months–18 months, with an anticipated outflow for fiscal 2020 of
EUR70 million-EUR90 million, and EUR20 million-EUR30 million for
fiscal 2021. Additionally, despite the reduction of gross financial
debt, we expect adjusted debt to EBITDA will exceed 10x in fiscal
2020, due to the decline in earnings, and recover to 7.3x-7.8x in
fiscal 2021. We forecast EBITDAR to rent plus interest below 1x in
fiscal 2020 (takes into account cash interest payment and lease
related payment) and slightly higher than 1.2x in fiscal 2021."

S&P said, "While we don't anticipate a liquidity shortfall in the
next 12 months, liquidity could come under pressure depending on
how FOCF develops.   We believe the injection of EUR42 million from
the private placement notes (PPNs) and anticipated EUR48 million of
proceeds in 2020 and 2021 related to store sales to the Dutch
supermarket chain Jumbo will compensate for what we expect will be
two consecutive years of negative FOCF. This should provide the
group with sufficient liquidity over the next 12 months. We also
expect the group will maintain adequate headroom under maintenance
covenants applicable to its revolving credit facility (RCF),
including minimum EBITDA of EUR35 million by the end of fiscal
2020, and minimum liquidity of EUR30 million. That said, the
group's liquidity could be pressured if FOCF weakens versus our
current base case, due for example to a second wave of COVID-19
infections triggering tighter social distancing measures and
lockdowns, and leading to closure of stores or a significant
decline in the footfall of open stores. We therefore believe that
Hema remains dependent on favorable business, financial, and
economic conditions to meet its financial commitments over the next
12 months. Positively, we understand that about EUR15 million of
the group's capital expenditure (capex) is discretionary and could
be postponed to support liquidity."

The announced sale agreement between Hema's current shareholders
and a consortium of investors has no immediate impact on our rating
on the group.   Hema's senior secured bondholders, which became
shareholders following the recent debt restructuring, reached an
agreement with a 50/50 consortium comprising investment firm Parcom
and investment vehicle Mississippi Ventures, which is the investing
arm of the owner of supermarket chain Jumbo. The agreement values
Hema at about EUR470 million. The final signing of the sale and
purchase agreement is subject to several conditions including a due
diligence by the consortium, and new financing obtained by the
consortium. Should the agreement go ahead, Hema will refinance its
recently established capital structure, including a refinancing of
its RCF and senior secured notes (SSN), full repayment of its PPNs
and only a partial repayment of its current PIK notes. If the
signing conditions are met and required approvals received,
completion of the Hema sale could happen in early 2021. S&P will
evaluate the company's updated business plan and its financial
policy under the new ownership structure once more information is
available.

S&P Global Ratings acknowledges a high degree of uncertainty about
the evolution of the coronavirus pandemic.   The pandemic is
peaking again in some regions and countries where Hema operates and
will remain a threat until a vaccine or effective treatment is
widely available, which may not occur until the second half of
2021. S&P said, "We are using this assumption in assessing the
economic and credit implications associated with the pandemic. As
the situation evolves, we will update our assumptions and estimates
accordingly."

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

-- Health and safety.

S&P said, "The negative outlook reflects our expectations that
Hema's operating performance will significantly decline in fiscal
2020, including a significant drop in EBITDA and cash flow, due to
partial closure of its stores in international markets and a
decline in footfall leading to weaker performance of its Dutch
stores amid the pandemic. The outlook reflects a risk that the
recovery of its operating results could extend beyond 2021, leaving
Hema with materially negative FOCF. That said, in our base case, we
assume that the group will maintain sufficient liquidity over the
next 12 months.

"We could lower the rating if we envisioned a default in the next
12 months, which could result from a liquidity shortfall, breach of
financial covenants, or a distressed exchange. This could result
from Hema's operating performance significantly deteriorating,
including a material drop in revenue and earnings over the next 12
months, due to the impact of a second round of lockdowns with store
closures, a decline in stores' footfall, intensifying competition,
or an inability to turnaround the business.

"We could revise the outlook to stable if Hema outperformed our
base case and generated higher-than-expected positive and
increasing S&P Global Ratings-adjusted FOCF, with FOCF to debt
above 5% and EBITDAR to rent plus interest returning above 1.2x. An
upgrade would also hinge on our expectation of Hema maintaining
adequate liquidity."




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R U S S I A
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FIRST COLLECTION: S&P Alters Outlook to Pos. & Affirms 'B-' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on First Collection Bureau
(FCB) to positive from stable and affirmed its 'B-' issuer credit
ratings.

S&P said, "The positive outlook indicates that we could raise the
rating if profitability and cash flow metrics stay resilient to the
impact of COVID-19 and FCB continues to diversify its funding
base.

"We believe FCB's restored access to external funding and recent
funding base diversification have improved the capital structure,
significantly reduced the share of Bank Vostochny in FCB's funding
base, and strengthened medium-term growth prospects.  From February
2019 to August 2020, FCB had difficulties in attracting funding
because of uncertainty linked to the Baring Vostok-related
investigation and negative investor sentiment. Limited refinancing
opportunities to some extent prevented the company from purchasing
new portfolios and curbed revenue growth over 2019. The company
covered growth mainly through its operating cash flow. Tensions
associated with the investigation have receded this year. On Aug.
13, 2020, FCB was able to place a RUB750 million bond that was
oversubscribed, mainly by retail investors. Due to this placement,
the company diversified its funding base and reduced single-name
concentrations, with Bank Vostochny's share of FCB's funding base
(representing bonds maturing in 2021) decreasing to zero at
end-October 2020 from more than 70% at mid-July 2020. We expect FCB
will continue to diversify its funding base over 2021.

"We assume that the agreement between FCB and Bank Vostochny on
repayment of RUB2.5 billion will have a neutral impact on FCB's own
financial state.   According to the agreement reached between
Baring Vostok, FCB, and Bank Vostochny, the latter would receive
RUB2.5 billion from FCB and would drop the civil lawsuit that has
been ongoing since February 2019. However, FCB is now liable to pay
this amount, which could in theory have a negative impact on its
leverage metrics. Nevertheless, we expect in the end that the deal
will have a neutral impact on FCB's overall financial position,
taking into account FCB's announcement on Oct. 28, 2020, on its
website that it expected a RUB2.6 billion cash injection from a
shareholder. The company doesn't specify how it will spend the
money, but we assume it will likely compensate the obligation
arising from the agreement." The resolution of this dispute is
credit positive in the sense that it may facilitate FCB's regular
access to capital markets in the future and may alleviate potential
concerns some investors could have on those latent litigation
risks.

The pandemic will hamper revenue growth in 2020, but FCB's
client-oriented approach and cost-savings initiatives in the first
half of this year should support margins in the medium term.   FCB
is not immune to the consequences of the pandemic but we believe
they are manageable. The economic downturn in 2020 has led to
collection delays, and a temporary closure of the courts
essentially stopped legal collections during lockdown. From March
to May 2020, the company suspended all new purchases of bad-debt
portfolios to consolidate liquidity, which, although the lockdown
has been eased, will translate into lower growth prospects in
subsequent months. In April-May 2020, during the lockdown, FCB's
collections decreased by about 30%, even though clients' payment
patterns had improved since FCB changed its business model in 2019
to focus on a more personalized approach and position itself as a
financial consultant rather than a debt collector. For example, it
started offering problem borrowers an appropriate discount, new
terms, and payment schedules in exchange for timely payments. The
average amount paid monthly by FCB's clients is about RUB2,000
($30), which most clients can pay even in the event of financial
difficulties. FCB also undertook a number of cost-optimization
initiatives alongside the change in its business model, including a
reduction in staff costs, public relations spending, and marketing
expenses. The latter were especially high last year owing to the
company's investment in a campaign to change the image of debt
collectors, which should support margins in 2020-2021. S&P believes
that despite a potential 10%-15% decrease in collections in 2020,
FCB's EBITDA and net income can show positive dynamics compared
with last year.

S&P said, "We expect that FCB's leverage will rise, but will remain
manageable and among the lowest in the sector.  One of FCB's key
strengths is extremely low historical leverage. We understand the
company will gradually incur more debt as it takes on new business
opportunities. We expect FCB's leverage will rise to 1.0x-1.5x in
2020-2022 from 0.6x in 2019. Despite the increase, this leverage is
still low, minimizing refinancing and liquidity risks, and
comparing favorably with the 3.0x-4.0x we forecast for most peers.
We expect that the company's debt-to-EBITDA ratio will remain
consistent with its target of below 2x over that period.

"The positive outlook reflects our expectation that FCB's
profitability and cash flow metrics will remain resilient to the
challenges of COVID-19 and the company will continue diversifying
its funding base. In our base-case scenario, we assume rising debt
issuance volumes but still-low leverage metrics with debt to EBITDA
not exceeding 2x."

S&P could raise the rating in the next 12 months if:

-- FCB's profitability remains resilient to the pandemic's impact
and there is no further material deterioration of the general
operating environment in Russia.

-- FCB's funding remains sustainably diversified and its capital
structure benefits from cautious debt policy. With further
issuances, liquidity management remains more important than ever
and we will monitor its evolution and implications for refinancing
risks.

-- There are no further ramifications from the dispute between
Baring Vostok and Bank Vostochny that could affect the reputation
of the company or weigh on debt investors' market sentiment vis à
vis FCB.

S&P would consider revising the outlook to stable in the next 12
months if, contrary to our expectations, the company's operating
performance deteriorates significantly, and pandemic-related
pressures lead EBITDA to decline more than it currently envisage.
Downward pressure could come from tight management of refinancing
risks, in particular if the company struggles to prefund upcoming
maturities sufficiently in advance and in a predictable way. The
resurgence of any governance issues between the various
stakeholders could have negative credit implications.




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U K R A I N E
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KYIV CITY: Fitch Assigns B(EXP) Rating on Upcoming Domestic Bond
----------------------------------------------------------------
Fitch Ratings has assigned the City of Kyiv's upcoming domestic
bond issue an expected Long-Term Rating of 'B(EXP)'.

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

The City of Kyiv is the capital of Ukraine and its economic and
financial centre with a population approaching three million
inhabitants and gross city product accounting for about 23% of the
country's GDP.

KEY RATING DRIVERS

Kyiv's bond issue rating is equalised with the city's Long-Term
Issuer Default Rating since the bond will be a senior, unsecured
obligation and rank pari passu with the city's other senior
unsecured obligations.

RATING SENSITIVITIES

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

-- Any change in Kyiv's ratings will be mirrored in the bond
issue's rating.

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

-- Any change in Kyiv's ratings will be mirrored in the bond
issue's 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

Kyiv's senior unsecured bond rating is linked to Ukrainian
Sovereign's IDR (B/Stable).

ESG CONSIDERATIONS

Kyiv, City of: Political Stability and Rights: 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.




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

PREMIER OIL: Creditors Approve Proposed Chrysaor Merger
-------------------------------------------------------
Shadia Nasralla at Reuters reports that a sufficient number of
creditors of indebted Premier Oil have approved a proposed merger
with private equity backed Chrysaor to create the British North
Sea's biggest oil and gas producer, Premier said on Nov. 3.

According to Reuters, the reverse takeover, which will see
Premier's creditors paid US$1.23 billion (GBP947.9 million) in
cash, will fold one of the world's oldest independent producers
into a private equity-backed group in which Premier shareholders
will receive an expected 5.45% stake.

Premier had US$1.9 billion in net debt, Reuters discloses.

"(Premier) has received the requisite level of support from each
class of its creditors for the proposed merger of Premier and
Chrysaor Holdings Limited and the reorganization of Premier's
existing finance arrangements," Reuters quote the company as
saying.

"Premier will launch the restructuring plan processes through . . .
a practice statement letter, immediately after the Prospectus for
the Transaction is published, which is currently anticipated by the
end of 2020. The Transaction is expected to complete by the end of
Q1 2021."

Chrysaor's largest shareholder, Harbour Energy, is expected to own
just over 39% of the merged company, which will stay listed on the
London Stock Exchange, Reuters notes.


SALFORD FC: Fails to Meet CVA Terms, Gets Six Points Deduction
--------------------------------------------------------------
Salford Star reports that the financially screwed legacy of John
Wilkinson's ownership of Salford Red Devils lives on, with the club
on Nov. 3 having three wins, or six points, deducted as the current
owners fail to meet a CVA, or Company Voluntary Arrangement, agreed
to in 2013 when Marwan Koukash took over affairs.

According to Salford Star, a statement by the RFL, or Rugby
Football League, reads "In January 2013, the Salford Football Club
(1914) Limited entered into a Company Voluntary Arrangement (CVA).
An application for RFL membership by a new company, Salford City
Reds (2013) Limited, was subsequently approved by the RFL Board.  A
condition of the membership was that the Club fund the CVA of the
old company and that, if the CVA fails, then 'the new Club would be
deducted 6 points in the playing season in which the default
occurs'.

"The CVA has now failed, as confirmed by a 'certificate of
non-compliance' issued by a licensed insolvency practitioner on
Oct. 22, triggering the RFL Board sanction" it adds "It is
important to note, however, that this 'insolvency event' does not
relate to Salford City Reds (2013) Limited and does not impact any
of that company's debtor or creditor relationships."

Financially, it might not impact the current incarnation of Salford
Reds, but Salford City Council, which has continued to give the
club payment holidays under both City Mayors, Ian Stewart and Paul
Dennett, might well be out of pocket to the tune of around GBP1
million, Salford Star states.

The terms for the CVA, the Salford Star has understood, were that
Salford Council would receive 4/25ths of what it was owed -- a
total of GBP253,291 -- by 2018, with the rest of the debt --
GBP1.33 million -- spread until 2038, interest free.

The CVA payments to the Council were to be paid directly to the
Council from RFL amounts due to the club from TV rights and stuff,
Salford Star discloses. However, in summer 2015, the then City
Mayor, Ian Stewart, agreed a payment holiday on the CVA for 17
months, meaning that the club didn't have to pay the Council and
other creditors for that period, Salford Star notes.

The "holiday" was extended by current City Mayor, Paul Dennett, for
a further twelve months, and later 36 months in November 2017,
which means that a payment was due this month, Salford Star
recounts.


USIL EUROPEAN 36: DBRS Confirms B(high) Rating on Class F Notes
---------------------------------------------------------------
DBRS Ratings GmbH confirmed its ratings on the following classes of
notes issued by Usil European Loan Conduit No. 36 Designated
Activity Company (Usil Eloc No. 36 DAC, or the Issuer):

-- Class RFN Notes at AAA (sf)
-- Class A-1 Notes at AAA (sf)
-- Class A-2 Notes at AAA (sf)
-- Class B Notes at AA (low) (sf)
-- Class C Notes at A (low) (sf)
-- Class D Notes at BBB (sf)
-- Class E Notes at BB (high) (sf)
-- Class F Notes at B (high) (sf)

All notes carry Stable trends.

Usil ELoC 36 DAC is the securitization of a EUR 723.3 million (EUR
723.9 million at issuance), floating-rate senior commercial real
estate loan (the senior loan) advanced by both Morgan Stanley
Principal Funding, Inc. and Morgan Stanley Bank, N.A. to borrowers
sponsored by Blackstone Group L.P. (Blackstone, or the Sponsor).
The senior loan is backed by a portfolio of 99 German assets (100
at inception) that are predominantly light-industrial and warehouse
properties, which are part of the Mileway logistics platform. The
loan refinanced the original acquisition loan and funded a
progressive capital expenditure (capex) programme. In addition to
the senior loan, the transaction includes a EUR 105.6 million
mezzanine loan, which is structurally and contractually
subordinated to the securitized senior loan.

As part of the senior loan, there is a EUR 44.8 million capex
facility and a further EUR 6.9 million from the mezzanine loan to
support Blackstone's EUR 66 million capex budget over the initial
term of the loan. Despite the current outbreak of the Coronavirus
Disease (COVID-19) pandemic, the borrower has reported a total EUR
5.5 million capex spending in Q2 2020. As of the August 2020
interest payment date (IPD), DBRS Morningstar estimated that
approximately EUR 10 million of the senior capex facility has been
used.

The portfolio has been performing relatively steadily since
issuance with contracted gross rent remaining above EUR 62.0
million and the weighted-average unexpired lease term remaining
above three years. Meanwhile, the vacancy has decreased slightly
from 15.6% at issuance to 13.9% in August. DBRS Morningstar has
noted a stronger performance improvement in Q2 2020 with higher
rental income and lower vacancy. Nevertheless, a couple of
disruptive factors have brought the performance level down compared
with the issuance level in Q3 2020.

In April 2020, there was a fire incident at the Louis-Krages-Str 30
asset, the largest asset by gross rental income (GRI). The fire
destroyed units D9-D18, totalling circa 30,000 square meters, and
damaged units C7-C12. This resulted in rental losses as well as
reinstatement costs, which are expected to be covered by the
insurance. DBRS Morningstar noted that at issuance the Sponsor had
already planned to build more warehouse units at the eastern end of
the asset, so it remains to be seen whether the development and the
rebuild plans will interfere with each other.

The current coronavirus pandemic has also drove various tenants to
ask for rental relief. Per the August 2020 investor report, a total
EUR 569,261 in rent relief has been granted covering 26 out of 74
requests. This represents less than 1% of the GRI.

As a result, DBRS Morningstar noted that the net rental income has
declined to EUR 56.9 million at Q3 2020 IPD from EUR 62.1 million
at Q2 2020 IPD. The drop can be partially explained by an increase
in rent arrears to EUR 4.0 million from EUR 2.4 million during this
period. DBRS Morningstar is waiting for the borrowers to provide
some clarifications on the arrears and the drop in net rent. As
such, only the income and costs associated with the disposed
Carolus-Magnus Str 40-60 asset were removed, whereas the other
underwriting assumptions remained the same as issuance The updated
DBRS Morningstar net cash flow is EUR 49.1 million, which resulted
in an updated stressed value of EUR 744.4 million..

The Coronavirus Disease (COVID-19) and the resulting isolation
measures have caused an economic contraction, leading to sharp
increases in unemployment rates and income reductions for many
tenants and borrowers. DBRS Morningstar anticipates that vacancy
rate increases and cash flow reductions may arise for many CMBS
borrowers, some meaningfully. In addition, CRE values will be
negatively affected, at least in the short term, impacting
refinancing prospects for maturing loans and expected recoveries
for defaulted loans.

Notes: All figures are in Euros unless otherwise noted.



                           *********


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

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

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