---

       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, January 6, 2021, Vol. 22, No. -1

                           Headlines



A U S T R I A

KLABIN AUSTRIA: Fitch Gives BB+ Rating to Proposed Sr. Unsec. Notes
KLABIN AUSTRIA: S&P Assigns 'BB+' Rating to New Sr. Unsec. Notes


G R E E C E

PIRAEUS BANK: Moody's Puts Caa2 Bank Deposit Rating, Outlook Stable


S P A I N

BANCO SANTANDER: DBRS Confirms BB (low) Rating on Class E Notes


U N I T E D   K I N G D O M

COUNTRYWIDE: Connells Completes Acquisition for GBP130 Million
EARTHWORM LIMITED: Enters Administration After Challenging Year
PAPERCHASE: Files Notice to Appoint Administrators
WIGAN ATHLETIC: Potential Buyer Lowers Bid by Almost 50%
[*] UK: Over 175,000 Retail Jobs Lost in 2020, CRR Figures Show


                           - - - - -


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

KLABIN AUSTRIA: Fitch Gives BB+ Rating to Proposed Sr. Unsec. Notes
-------------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to the proposed senior
unsecured sustainability-linked notes due 2031 to be issued by
Klabin Austria Gmbh and guaranteed by Klabin S.A. (Klabin).
Proceeds from the senior notes will be used for the tender offer
for any and all of its outstanding 2024 notes and for general
corporate purposes. Fitch currently rates Klabin S.A.'s Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs)
'BB+'/Outlook Stable.

The sustainability-linked securities framework establishes a water
consumption intensity target equal to or less than 3.68 m3/t on
Dec. 31, 2025; a waste reuse and recycling target as a percentage
equal to or greater than 97.5% on Dec. 31, 2025; and reintroduction
and/or reinforcement of wild species into the ecosystem of at least
two extinct or threatened species, calculated through rewilding
initiatives concluded by 2025, with an interest rate step up if
Klabin fails to meet the targets.

Klabin's ratings reflect the company's leading position in the
Brazilian packaging sector, large forestry based, providing a low
production cost structure, access to inexpensive fiber and a high
degree of vertical integration, which enhances product flexibility
in the competitive but fragmented packaging industry. Because of
its strong market business position in packaging products and
integrated operations, Klabin is a price leader in the domestic
market and is able to preserve more stable sales volume and
operating margins during more instable economic scenarios in Brazil
than its competitors, which have significantly lower scale of
operations and high exposure in production costs. The company also
benefits from its position as a low-cost producer of market pulp,
in the lowest quartile, and maintains pulp production volumes above
90% of nominal capacity.

Klabin's solid liquidity position and low refinancing risk remain
key credit considerations. The analysis considers the investments
in the Puma II project, which will further strengthen the company's
leading market position in the packaging business. The ratings
incorporate a recovery of EBITDA to BRL4.7 billion in 2020, as per
Fitch's calculations, and an increase in net debt excluding
factoring transactions to BRL20.7 billion, from BRL3.7 billion and
BRL14.4 billion, respectively, in 2019. Fitch's base case
projections incorporate net leverage to increase to about 4.5x in
2020, declining to about 3.5x by 2022. This amount of net debt and
the leverage ratios remain within Fitch's expectation in the midst
of the project.

The Stable Rating Outlook reflects Fitch's expectation of strong
operating cash flow, despite the severe economic downturn and weak
pulp prices, benefiting from the depreciation of Brazilian real and
strong demand for coated board and corrugated boxes, as demand
remained supported by the company's leading position, diversified
client base in the more resilient food sector and the fast-growing
ecommerce in Brazil.

KEY RATING DRIVERS

Leading Position in the Brazilian Packaging Segment: Klabin is the
leader in the Brazilian corrugated boxes and coated board sectors
with market shares of 24% and 50%, respectively. In the Brazilian
market, the company is the sole producer of liquid packaging board
and is the largest producer of kraftliner and industrial bags, with
market shares of 42% and 56%, respectively.

In Fitch's opinion, the expansion project is very strategic for
Klabin and will add 920,000 tons of annual production capacity of
kraftliner by 2023, positioning the company as the world's
third-largest kraftliner paper producer. Klabin's strong market
shares allow it to be a price leader in Brazil. The company's
competitive advantage is viewed as sustainable due to its scale,
high level of integration and diversified client base in the more
resilient food sector. This allows Klabin to preserve EBITDA
margins above 30% throughout the cycle, while small players have
margins below 15%.

Pulp Mill and Forestry Assets Positive Rating Considerations:
Klabin has a 1.6 million-ton pulp mill that started operations in
2016. Klabin sources much of its fiber requirements from hardwood
and softwood trees grown on 264,000 hectares of plantations it has
developed on 594,000 hectares of lands under management; this
ensures a competitive production cost structure in the future.

During third-quarter 2020, the company's cash cost of production
was USD141 per ton, which placed it firmly in the lowest quartile
of the cost curve. The accounting value of Klabin's land was about
BRL2.3 billion as of Sept. 30, 2020, and the value of the
biological assets on its forest plantations was BRL4.4 billion. If
needed, some of the forestry assets could be monetized to lower
debt and improve liquidity.

FCF to Remain Negative: Consolidated adjusted EBITDA is expected to
be around BRL4.7 billion for 2020 and BRL5.5 billion in 2021 and
cash flow from operations of BRL4.6 billion and BRL3.5 billion,
respectively. Klabin generated BRL3.7 billion of adjusted EBITDA
and BRL3.2 billion of cash flow from operations in 2019, as per
Fitch's calculations.

Klabin's flexibility and product diversification will continue to
soften the impact of the severe economic downturn in Brazil and
weak pulp prices. Fitch's projections considered a 9% increase in
paper and packaging sales volume, to 2.0 million tons in 2020,
further increasing in 2021 following the start-up of the first
phase of Puma II project and between 1.5 million tons and 1.6
million tons of pulp for 2020 and 2021. Fitch expects negative FCF
of about BRL365 million in 2020 and BRL820 million in 2021, due to
investments in the Puma II project.

Positive FCF is expected only for 2023, when investments start to
reduce. Fitch's base case incorporates total investments around
BRL8.2 billion during 2020 and 2021 and annual dividends between
BRL300 million and BRL500 million during the period.

Leverage to Slowly Reduce: Fitch expects net adjusted leverage,
excluding factoring transactions, to increase to about 4.5x in 2020
due to investments in the expansion project and to decline to
around 3.5x by 2022 as EBITDA generation improves. Net debt is
expected to peak at BRL22 billion in 2022; this compares with
BRL14.4 billion at the end of 2019.

Fitch expects Klabin to continue to manage its capital structure
conservatively during the expansion phase and take proactive steps
if leverage exceeds 5.0x. In the LTM ended Sept. 2020, net debt
excluding factoring/EBITDA was 4.8x, according to Fitch's
methodology, pressured by weaker pulp prices and high investments.

Pulp Prices to Slightly Improve: The market pulp industry is
cyclical; prices move sharply in response to changes in demand or
supply. Fitch expects a slight recovery of pulp prices during 2021,
as producers reduced excess inventory during 2020 and prices have
likely bottomed out. Weaker demand stifled a recovery in the sector
in 2020, following a pulp price collapse in 2019 — pulp prices
plummeted to USD480/ton in December 2019 from USD715/ton in January
2019. Pulp prices remained below USD500/ton throughout 2020. A
sustainable pulp price recovery should continue to rely on supply
reduction, and a recovery of European and U.S. paper and packaging
demand will depend on world economic growth during 2021 and the
pace at which employees return to offices.

Rating Pierces Country Ceiling: Klabin's 'BB+' Long-Term Foreign
Currency IDR is one notch higher than Brazil's 'BB' Country Ceiling
due to a combination of exports of about USD1 billion, about USD187
million of cash held outside of Brazil, and USD500 million unused
revolving credit facility.

Fitch projects the ratio of exports, plus cash held abroad to cover
hard currency debt service over the next 24 months above 1.5x, in
line with Fitch's "Non-Financial Corporates Exceeding the Country
Ceiling Rating Criteria." This could lead to a three-notch upgrade
above the Brazilian Country Ceiling. However, Klabin's Foreign
Currency IDR is constrained by the company's 'BB+' Local Currency
IDR, which is a reflection of the company's underlying credit
quality.

DERIVATION SUMMARY

Klabin has a leading position in the Brazilian packaging segment.
Klabin's size, access to inexpensive fiber and high level of
integration relative to many of its competitors give it competitive
advantages that Fitch view as sustainable. Its business profile is
consistent with a rating in the 'BBB' category.

Klabin's leverage is high compared with Latin America peers
Empresas CMPC (BBB/Stable) and Celulosa Arauco (BBB/Negative).
Klabin's leverage increased as a result of the construction of the
Puma pulp mill and low pulp prices following the completion of the
mill have prevented a quick deleveraging process. Klabin's net
adjusted leverage should increase to around 4.5x due to the
investments in Puma II project and is expected to decline to about
3.5x by 2022. Liquidity is historically strong for pulp and
packaging producers, and Klabin has strong access to debt and
capital markets.

Klabin is more exposed to demand from the local market than Suzano
(BBB-/Negative), CMPC and Arauco, as these companies are leading
producers of market pulp sold globally. This makes Klabin more
vulnerable to macroeconomic conditions than its peers, which is
also a negative consideration. Positively, its concentration of
sales to the food industry, which is relatively resilient to
downturns in Brazil's economy, and its position as the sole
producer of liquid packaging board, adds stability to operating
results.

KEY ASSUMPTIONS

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

-- Paper and packaging sales volume of 2.0 million tons for 2020
    and 2.3 million tons for 2021;

-- Pulp sales volume between 1.5 million tons and 1.6 million
    tons in 2020 and 2021;

-- Average hardwood net pulp price of USD450 per ton in 2020 and
    USD525 per ton in 2021;

-- Average FX rate of 5.3 BRL/USD in 2020 and 2021;

-- Investments around BRL8.2 billion during 2020 and 2021, of\
    which about BRL6.0 billion will be invested in the Puma II
    project;

-- Annual dividends between BRL300 million and BRL500 million in
    2020 and 2021.

RATING SENSITIVITIES

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

-- Average net debt/EBITDA ratios of 3.0x or below throughout the
    pulp price cycle following completion of the expansion project
    could lead to positive rating actions;

-- Sustained net debt at Klabin of less than USD3.5 billion after
    completion of the expansion project would likely lead to a
    positive rating action.

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

-- Net leverage ratios higher than 4.5x during the expansion
    project could lead to a negative rating action;

-- Average net debt/EBITDA ratios of 4.0x or higher throughout
    the pulp price cycle following completion of the expansion
    would lead to a negative rating action;

-- Sustained net debt at Klabin of more than USD4.5 billion after
    completion of the expansion project would likely lead to a
    negative rating action;

-- More unstable macroeconomic environment that weakens demand
    for the company's packaging products as well as prices.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Solid Liquidity: Klabin's solid liquidity position and low
refinancing risk remain key credit considerations. As of Sept. 30,
2020, the company had BRL7.8 billion of cash and marketable
securities and BRL31.1 billion of total debt, including about
BRL2.2 billion of factoring transactions as per Fitch's criteria.

The company has an extended debt amortization profile, with BRL817
million of debt maturing by year end 2021 and BRL1.3 billion in
2022, excluding factoring transactions. Financial flexibility is
enhanced by a USD500 million unused revolving credit facility.
Klabin plans to continue to finance the expansion project with a
combination of debt and operating cash flow. Fitch expects Klabin
to continue to preserve strong liquidity, conservatively
positioning it for the price and demand volatility, which is an
inherent risk of the packaging industry.

As of Sept. 30, 2020, about 69% of total debt was denominated in
U.S. dollars. Total debt of BRL31.1 billion consisted of bonds
(41%), export credit notes (12%), Agribusiness Receivables
Certificate (CRA, 12%), swaps (7%), factoring (7%), Finnvera & Bid
Invest (7%), debentures (6%) and others (8%).

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.

KLABIN AUSTRIA: S&P Assigns 'BB+' Rating to New Sr. Unsec. Notes
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and
recovery rating of '3' to Klabin Austria GmbH's proposed senior
unsecured notes due 2031. Klabin Austria is a subsidiary of the
Brazilian forest products company, Klabin S.A. (Klabin;
BB+/Stable/--), which unconditionally and irrevocably guarantees
the notes.

Klabin intends to use the proceeds to repay its 2024 notes (issued
by Klabin Finance) and for general corporate purposes. This will
extend the company's debt maturity profile, with no changes in
terms of seniority in its capital structure.

According to the terms of the notes, if Klabin doesn't satisfy its
Sustainability Performance Targets of water consumption intensity
equal to or less than 3.68 m3/t, waste reuse equal to or above
97.5%, and reintroduction or reinforcement of at least two
regionally extinct or threatened species into the ecosystem in
2025, the interest rate payable on the notes will increase by up to
25 basis points from January 2026 until the notes' maturity. S&P
views Klabin's decision to link its cost of debt to environmental
targets as an example of the company's commitment to improve its
sustainability practices.

Issue Ratings - Recovery Analysis

Key analytical factors

-- S&P assumes a scenario with eroding macroeconomic and industry
conditions, with low pulp and paper prices for a long period,
resulting in much weaker cash flows, not sufficient to cover the
company's interest and principal payments and maintenance capex.

-- In S&P's default scenario, EBITDA would plummet about 50% from
the currently projected EBITDA in 2023, after the completion of
PUMA II.

-- In a default scenario, S&P expects Klabin to reorganize, rather
than liquidate, because of its solid market position in the paper
and packaging segments.

-- S&P's valued the company on a going-concern basis, using a 5.0x
multiple applied to its projected emergence-level EBITDA, which
results in an estimated gross emergence value of about R$19.6
billion.

Simulated default assumptions

-- Simulated year of default: 2026
-- EBITDA at emergence: R$3.7 billion
-- Implied enterprise value (EV) multiple: 5.0x
-- Estimated gross EV at emergence: R$18.5 billion

Simplified waterfall

-- Net EV after 5% administrative costs: R$17.6 billion
-- Senior secured debt: R$3.1 billion
-- Senior unsecured debt: R$23.4 billion
-- Recovery expectation: 60%




===========
G R E E C E
===========

PIRAEUS BANK: Moody's Puts Caa2 Bank Deposit Rating, Outlook Stable
-------------------------------------------------------------------
Moody's Investors Service has assigned a Baseline Credit Assessment
of caa2 and bank deposit ratings of Caa2/NP to Piraeus Bank S.A.,
the new legal entity that has taken over the core banking
operations and the banking license of its legacy entity in Greece
that will be renamed Piraeus Financial Holdings S.A. At the same
time, the rating agency has withdrawn the BCA of caa2 and all
existing deposit ratings of Caa2/NP and other outstanding ratings,
with the exception of the Caa3 subordinated ratings assigned to its
Tier 2 instruments, of its legacy entity (to be renamed Piraeus
Financial Holdings S.A.) that now acts as the holding company of
the group, listed on the Athens stock exchange. Moody's has also
assigned a Caa3 long-term issuer rating to Piraeus Financial
Holdings S.A. Moody's has assigned a stable outlook to Piraeus Bank
S.A. and maintains a stable outlook to Piraeus Bank S.A. (To be
renamed Piraeus Financial Holdings S.A.).

The new ratings assigned to Piraeus Bank S.A. are positioned at the
same level as those previously assigned to the legacy entity.
Moody's says that this takes into consideration the successful
implementation of the bank's corporate restructuring plan but also
the still significant downside risks stemming from the negative
effects of the coronavirus on the Greek economy and the residual
non-performing exposures left on its balance sheet.

The stable outlook balances the longer-term benefits generated by
the corporate restructuring with the still sizeable downside asset
risks faced by the bank combined with its relatively weak post
hive-down capital base.

RATINGS RATIONALE

Piraeus Bank S.A.

According to Moody's the decision to position Piraeus Bank's BCA at
caa2, which is at the same level as the BCA of caa2 previously
assigned to the legacy entity, is the potential negative impact of
the coronavirus on the Greek economy, and on the bank's financials,
which counterbalance the improvement in asset quality resulting
from the restructuring. In particular the rating agency notes that
the tourism sector, which is an important element of the Greek
economy, as well as consumption, have been significantly hit,
although the extent of the damage is still uncertain for 2021.
Accordingly, this will likely delay the bank's improvements in its
financial metrics, constraining its BCA for now.

The corporate restructuring implemented by the bank, includes the
de-risking of its balance sheet through the securitisation of
approximately EUR6.9 billion of NPEs (project 'Vega' of EUR5
billion and project 'Phoenix' of EUR1.9 billion) through the
state-sponsored Hercules Asset Protection Scheme. This scheme
allows the bank to retain around EUR2.4 billion of the senior notes
from the securitisations, guaranteed by the government, which will
be classified as performing loans. These securitisations will
reduce the bank's NPE stock in Greece to around EUR15 billion at
the end of December 2020 from around EUR21.9 billion as of
September 2020, decreasing its NPE to gross loans ratio to around
33% from 46%. The bank plans to further reduce this ratio to around
15% by the end of 2022 through a number of different actions,
including more securitisations, potentially through HAPS, loan
curing through restructurings, liquidations and write-offs. Moody's
says that it believes that implementation of these further measures
could be challenging over the short-term due to the coronavirus
effects, but that if implemented they could improve further the
bank's solvency exerting upward pressure on its BCA.

The bank's BCA also reflects its eroded profitability in 2020 and
potentially in 2021 as all Greek banks' earnings have been affected
by business closures caused by the coronavirus. The bank's plan
envisages the gradual improvement in its recurring profitability
from 2021 onwards, with lower impairments and increased lending
growth on the back of a stronger economy. The bank aims to increase
its return on equity to around 10% by the end of 2022 from around
3.5% in 2019, as the cost of risk is expected to decline to less
than 100 basis points from more than 230 basis points on an
annualised basis as of September 2020.

Moody's assigned ratings also take into consideration the expected
decline in the bank's capital adequacy that results from the loss
sustained from the securitisations, which mainly emanates from the
more risky mezzanine and junior notes. The proforma capital
adequacy ratio on a solo Basel III phase-in basis of the new legal
entity (Piraeus Bank S.A.) is 12.6% as at September 30, 2020 taking
into account the EUR7 billion NPE securitisations, compared to
16.1% reported by the legacy entity. The rating agency notes that
the SREP (Supervisory Review and Evaluation Process) requirement
for the bank will be 11.25% until the end of 2022, which was
reduced from 14.25% earlier in the year due to ECB's measures
related to the coronavirus. In addition, the bank's overall quality
of capital and tangible common equity will continue to be
undermined by the sizeable volume of deferred tax credits of around
EUR3.8 billion that it will retain on its balance sheet,
constraining its BCA. The rating agency said that the bank's action
plan to enhance its capital base by around EUR1 billion through
various measures to either reduce its risk-weighted assets or
improve its income, if successfully implemented could also exert
upward pressure on the bank's BCA.

Piraeus Bank S.A.'s ratings also reflect the improvements in
funding and liquidity, with more customer deposits and increased
low-cost ECB borrowing. The bank's consolidated deposits increased
by 4.2% year-on-year as of September 2020, improving its gross
loans to deposits ratio to around 100% in September 2020 from 108%
the year before. The bank was also able to utilize cheap funding
through the ECB's TLTRO facilities by increasing its funding to
around EUR9 billion in September 2020 from only EUR1 billion in
September 2019, which helped reduce its inter-bank repos.

Piraeus Bank S.A.'s long-term deposit ratings of Caa2 are driven by
the rating agency's Advanced Loss Given Failure analysis of the
bank's liability structure, assessing the potential loss absorbing
buffer subordinated for each liability class. The bank's deposits
are positioned at the same level as its BCA of caa2, given the
relatively limited subordinated cushion available to absorb losses
in a resolution scenario, mainly in the form of its Tier 2 notes of
a nominal value of EUR900 million issued to its holding company
Piraeus Financial Holdings S.A. These new internal Tier 2 notes are
basically a reflection of the existing Tier 2 notes issued by the
legacy entity in the past and subscribed by external investors.
This structure aims to upstream the relevant coupon payments of
these Tier 2 notes to the holding company that will in turn service
the outstanding debt to investors. The bank's long-term
Counterparty Risk Assessment is positioned at B2(cr), three notches
higher than its BCA, while its long-term Counterparty Risk Ratings
are positioned at B3.

No rating uplift from government support is incorporated in Piraeus
Bank S.A.'s deposit ratings, despite its indirect majority
shareholding by the government, through the state-owned Hellenic
Financial Stability Fund. The HFSF will have a 61.3% stake in the
group, following the conversion of EUR2 billion contingent
convertible instruments (CoCos) into common shares on January 4,
2021, triggered by the second skip of coupon payment (EUR165
million) for these CoCos on December 2, 2020 following the ECB's
decision. The rating agency's low government support assumption for
all Greek banks, including Piraeus Bank S.A., is mainly driven by
the government's relatively low capacity to provide such support if
needed without any external assistance, given its sizeable debt
load.

Piraeus Financial Holdings S.A. (legacy entity that will be
renamed from 'Piraeus Bank S.A.')

Moody's has withdrawn the BCA, deposit ratings, CRA, CRR and
provisional EMTN programme ratings from the legacy entity, which
will have its banking license revoked by the Bank of Greece and
subsequently granted to the new legal entity Piraeus Bank S.A. The
legacy entity will be renamed 'Piraeus Financial Holdings S.A.',
and will act as the holding company of the group, without
undertaking any banking operations as a stand-alone legal entity.

Accordingly, all relevant deposit ratings and the BCA are withdrawn
by the rating agency, while any provisional debt ratings linked to
the bank's EMTN programme were also withdrawn for business reasons.
This also applies to the outstanding provisional EMTN programme
ratings of the bank's funding subsidiary 'Piraeus Group Finance
Plc', which has no rated debt outstanding and has been inactive for
some time now.

However, Moody's has affirmed the subordinated debt rating of Caa3
assigned to its EUR900 million outstanding Tier 2 notes issued by
the legacy entity in two tranches in the past (EUR400 million in
June 2019 and EUR500 million in February 2020). The rating agency
has also assigned a Caa3 long-term issuer rating to the holding
company, which is positioned one notch lower than the operating
company's BCA of caa2, because senior unsecured holding company
obligations are likely to be junior to senior unsecured debt issued
by the operating company. This reflects Moody's view that
regulators will generally expect holding company senior debt to
fund inter-company debt that is subordinated to the operating
company's senior unsecured debt.

No rating uplift from government support is incorporated in the
holding company's ratings, which is consistent with the rating
agency's approach with regards to the operating company's ratings.

RATINGS OUTLOOK

The stable outlook on the bank's deposit ratings and the holding
company's issuer rating reflects Moody's view that the bank's BCA
is for now constrained by its still high level of NPEs and the
potential impact from new NPEs in 2021 due to the coronavirus, but
also due to its relatively weak capital base following the impact
from the securitisations. The stable outlook also considers the
rating agency's view that the bank's relatively low ratings
incorporate any relevant downside risks, limiting the potential of
any rating pressure at the Caa2 deposit rating level.

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

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

Upward pressure on the bank's ratings could arise from the expected
economic recovery and when there is evidence that the improvement
in the bank's financial fundamentals delivered by the current
reorganisation and securitisation are being delivered and are
sustainable. Also, tangible improvements in the bank's core
profitability and capital through its capital enhancing actions
planned for 2021 will positively affect its BCA. Concurrently, any
material change in the bank's liability structure through the
raising of senior or subordinated debt, could also trigger rating
upgrades through the rating agency's Advanced LGF analysis.

Piraeus Bank S.A.'s deposit and senior debt ratings could be
downgraded in the event of significant negative impact on the
domestic consumption and economic activity from the coronavirus, to
the extent that it will materially deteriorate its asset quality
and underlying financial fundamentals. In addition, the deposit
ratings could be downgraded if the sovereign rating and Macro
Profile for Greece is downgraded or in case the bank is unable to
further reduce its stock of NPEs by 2022.

Piraeus Bank S.A. and Piraeus Financial Holdings S.A. are
headquartered in Athens, Greece, with pro-forma total consolidated
assets of around EUR66 billion as of December 2020.

LIST OF AFFECTED RATINGS

Issuer: Piraeus Bank S.A.

Assignments:

Adjusted Baseline Credit Assessment, Assigned caa2

Baseline Credit Assessment, Assigned caa2

Long-term Counterparty Risk Assessment, Assigned B2(cr)

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

Long-term Counterparty Risk Ratings, Assigned B3

Short-term Counterparty Risk Ratings, Assigned NP

Short-term Bank Deposit Ratings, Assigned NP

Long-term Bank Deposit Ratings, Assigned Caa2, Outlook Assigned
Stable

Outlook Action:

Outlook, Assigned Stable

Issuer: Piraeus Bank S.A. (To be renamed Piraeus Financial Holdings
S.A.)

Affirmation:

Subordinate Regular Bond/Debenture, Affirmed Caa3

Assignments:

Short-term Issuer Ratings, Assigned NP

Long-term Issuer Ratings, Assigned Caa3, Outlook Assigned Stable

Withdrawals:

Adjusted Baseline Credit Assessment, Withdrawn, previously rated
caa2

Baseline Credit Assessment, Withdrawn, previously rated caa2

Long-term Counterparty Risk Assessment, Withdrawn, previously
rated B2(cr)

Short-term Counterparty Risk Assessment, Withdrawn, previously
rated NP(cr)

Long-term Counterparty Risk Ratings, Withdrawn, previously rated
B3

Short-term Counterparty Risk Ratings, Withdrawn, previously rated
NP

Short-term Bank Deposit Ratings, Withdrawn, previously rated NP

Long-term Bank Deposit Ratings, Withdrawn, previously rated Caa2,
Outlook Changed To Rating Withdrawn From Stable

Subordinate Medium-Term Note Program, Withdrawn, previously rated
(P)Caa3

Senior Unsecured Medium-Term Note Program, Withdraw, previously
rated (P)Caa2

Outlook Action:

Outlook, Remains Stable

Issuer: Piraeus Group Finance Plc

Withdrawals:

Backed Subordinate Medium-Term Note Program, Withdrawn, previously
rated (P)Caa3

Backed Senior Unsecured Medium-Term Note Program, Withdraw,
previously rated (P)Caa2

Outlook Action:

Outlook, Changed To Rating Withdrawn From No Outlook

PRINCIPAL METHODOLOGY

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



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

BANCO SANTANDER: DBRS Confirms BB (low) Rating on Class E Notes
---------------------------------------------------------------
DBRS, Inc. confirmed the A (sf), BBB (sf), BB (low) (sf), and B
(low) (sf) ratings on Class C Notes, Class D Notes, Class E Notes,
and Class F Notes, respectively, issued by Banco Santander, S.A.
The performance of the transaction is such that credit enhancement
is sufficient to cover the DBRS Morningstar loss expectation on the
Reference Portfolio at the current rating level.

As of the September 25, 2020, Quarterly Distribution Date, credit
enhancement was 20.71%, 16.53%, 14.16%, and 12.55% for the Class C
Notes, Class D Notes, Class E Notes, and Class F Notes,
respectively. The Reference Portfolio pool factor was 53.20% and
total delinquencies were 1.54% of the outstanding aggregate
Reference Portfolio Balance. Cumulative net losses of the Reference
Portfolio were 0.60%.

Confirmation on the notes considers DBRS Morningstar's set of
macroeconomic scenarios for select economies related to the
Coronavirus Disease (COVID-19), available in its commentary "Global
Macroeconomic Scenarios: December Update," published on December 2,
2020. DBRS Morningstar initially published macroeconomic scenarios
on April 16, 2020, which have been regularly updated. The scenarios
were last updated on December 2, 2020, and are reflected in DBRS
Morningstar's rating analysis.

The assumptions consider the moderate macroeconomic scenario
outlined in the commentary, with the moderate scenario serving as
the primary anchor for current ratings. The moderate scenario
factors in increasing success in containment during the first half
of 2021, enabling the continued relaxation of restrictions.

Notes: All figures are in U.S. dollars unless otherwise noted.




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

COUNTRYWIDE: Connells Completes Acquisition for GBP130 Million
--------------------------------------------------------------
Jake Carter at Mortgage Introducer reports that Connells has
completed the acquisition of Countrywide for GBP130 million.

According to Mortgage Introducer, the deal was accepted by 51% of
Countrywide's shareholders and each share has been valued at 395
pence.

Previous attempts to encourage Countrywide to sell were rejected by
the estate agency, Mortgage Introducer notes.

Connells Limited proposed a firm cash offer of 325 pence per
Countrywide share on Dec. 7, and had offered 250 pence per share
prior to that on Dec. 2, Mortgage Introducer discloses.

The agreement will be finalized in the first quarter of 2021, and
Countrywide's lenders will be repaid in full, Mortgage Introducer
states.

Furthermore, the deal will see Countrywide's 651 branches join the
portfolio of Connells Group's existing 581, Mortgage Introducer
says.

According to Mortgage Introducer, the sale results from
Countrywide's risk of falling into administration, following debts
of GBP91.9 million.


EARTHWORM LIMITED: Enters Administration After Challenging Year
---------------------------------------------------------------
Laura Purkes at Citywire reports that enterprise investment scheme
(EIS) fund manager Earthworm Limited has gone into administration
following an "extremely challenging year" due to Covid-19.

The firm, which focused on environmentally friendly investing,
appointed Andrew Poxon and Conrad Beighton of Leonard Curtis
Business Rescue & Recovery as joint administrators on Dec. 1,
Citywire relates.

According to financial statements filed at Companies House to March
31, 2020, the firm had assets under management of GBP73.8 million
at that time, Citywire discloses.  However, at its date of
administration earlier this month, its administrators said this had
fallen to GBP30 million in assets, Citywire notes.

The financial statements also state the firm was "temporarily
unable to meet one of the regulatory requirements imposed on it" by
the Financial Conduct Authority (FCA) due to Covid-19, but that it
was "engaging with the FCA to resolve the matter", according to
Citywire.

In a statement to Wealth Manager sister title New Model Adviser,
the firm's administrators, as cited by Citywire, said the demise of
Earthworm came after an "extremely challenging year" which saw
fundraising opportunities "significantly diminished" due to the
Covid-19 pandemic.

To minimize disruption to investors, the funds will be transferred
to a new manager, SFC Capital Partners Limited, which already
manages its own SEIS funds through its appointed representative SFC
Capital, Citywire says.


PAPERCHASE: Files Notice to Appoint Administrators
--------------------------------------------------
BBC News reports that stationery chain Paperchase is on the brink
of administration after most of its stores were forced to close
over the Christmas period.

The firm has filed a notice to appoint administrators, a move that
will give it breathing space from its creditors while it works out
a rescue plan, BBC relates.

The company has 127 stores and about 1,500 employees, BBC
discloses.

The second lockdown in November came at a crucial period for the
firm, which makes a high proportion of sales then, BBC notes.

Just under half its sales, 40%, come from trade in November and
December, BBC states.

The company went through an insolvency process, known as a Company
Voluntary Arrangement or CVA, in March last year to cut costs, BBC
recounts.

According to BBC, the chain now has 10 working days to find a
solution.

A company spokesperson, as cited by BBC, said: "Paperchase is not
immune despite our strong online trading.  Out of lockdown we've
traded well, but as the country faces further restrictions for some
months to come, we have to find a sustainable future for
Paperchase.

"We are working hard to find that solution and this [notice of
administration] is a necessary part of this work.  This is not the
situation we wanted to be in."


WIGAN ATHLETIC: Potential Buyer Lowers Bid by Almost 50%
--------------------------------------------------------
Tom Houghton at BusinessLive reports that the proposed takeover of
Wigan Athletic by a Spanish bidder looks to be off after the bid
was reportedly lowered at the 11th hour by "almost 50%".

On Jan. 5, joint administrators for the League One club issued a
statement to say they had broken off negotiations with the
individual, despite a sale contract having been agreed before
Christmas, BusinessLive relates.

A statement from the administrators said a new letter was received
this weekend from the bidder -- reducing the amount by almost 50%,
BusinessLive notes.

According to BusinessLive, Begbies Traynor said that would mean the
club would be unable to pay non-football creditors the required 25p
in the pound to avoid further sanctions, resulting in a 15-point
deduction -- effectively relegating them to League Two.

"The purchaser was insistent on offering the reduced price but was
not prepared to conclude the deal unless the 15 point deduction was
waived.

"Under the EFL insolvency policy, this is not possible and the deal
is therefore unable to be concluded.

"We have informed the EFL and are now starting to talk to other
bidders who have expressed interest and will provide an update when
there is any definite news," BusinessLive quotes a spokesman for
Begbies Traynor as saying.

According to Begbies Traynor, on Christmas Eve, the bidder said
they wanted to complete the deal "immediately" and had wired money
from Spain to their UK solicitors, BusinessLive relays.

The firm, as cited by BusinessLive, said the sale contract had been
agreed and documentation was signed for the leases with the council
for the DW Stadium, and local college for the training ground --
with completion planned to take place in between Christmas and New
Year.

The League One club fell into administration last year after
falling into financial difficulties, BusinessLive recounts.

[*] UK: Over 175,000 Retail Jobs Lost in 2020, CRR Figures Show
---------------------------------------------------------------
Huw Hughes at FashionUnited reports that over 175,000 UK retail
jobs were lost in 2020 in what was a year of unprecedented
difficulty for the sector, as the strain of extended store closures
pushed many to the point of collapse.

According to figures from the Centre for Retail Research (CRR), a
total of 176,718 jobs were lost last year from high streets, main
shopping destinations, towns and villages, as well as small
shopping parades and isolated stores across the UK, FashionUnited
discloses.

That's up by almost a quarter on the 143,128 overall jobs lost
during 2019, and equates to about 3,400 jobs lost in the sector
each week, FashionUnited notes.

Business falling into administration resulted in 71,811 job losses,
FashionUnited states.  Topshop-owner Arcadia alone put around
13,000 jobs at risk when it fell into administration last month,
FashionUnited recounts.

According to FashionUnited, the CRR said 47% of employees in
companies that fell into administration lost their jobs.  In
comparison, during the 2008 recession only a third of employees of
insolvent retail companies lost their jobs "demonstrating that
companies which went bust during 2020 were much larger with the
effects on staff numbers more pronounced", FashionUnited relays.

A further 11,986 jobs were lost through company voluntary
arrangements, a contentious insolvency procedure used to close
loss-making stores, FashionUnited notes.

A long list of fashion retailers launched CVAs last year, including
LK Bennett, Ann Summers, Moss Bros, Clarks, New Look, AllSaints,
Bair Group and Monsoon Accessorize, FashionUnited discloses.

An additional 92,921 jobs were lost through "rationalisation" as
part of cost-cutting programmes by large retailers or small shops
simply shutting for good -- up 18.3 percent on 2019, FashionUnited
states.

Professor Joshua Bamfield, a director at the CRR, warned of more
pain to come for the sector in 2021 and said up to 200,000 more
jobs could be lost, FashionUnited relays.



                           *********


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 2021.  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 * * *