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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

          Wednesday, January 13, 2021, Vol. 22, No. 4

                           Headlines



F R A N C E

CASTILLON SAS: Devoteam Tender Offer No Impact on Moody's B2 Rating


L U X E M B O U R G

ARVOS MIDCO: Moody's Downgrades CFR to Caa1, Outlook Negative
KENBOURNE INVEST: Fitch Rates USD300MM-USD450MM Unsec. Notes BB-


N E T H E R L A N D S

WINTERSHALL DEA: Fitch Rates Proposed Fixed-Rate Notes BB+(EXP)
WINTERSHALL DEA: Moody's Gives Ba1 Rating to New Hybrid Notes


N O R W A Y

NORWEGIAN AIR: To Return Planes to Lessors Under Restructuring


R O M A N I A

BANCA TRANSILVANIA: Fitch Affirms 'BB+' LT IDR, Outlook Negative


R U S S I A

CREDIT BANK: Fitch Rates Upcoming Sr. Unsec. Eurobonds 'BB(EXP)'
DME LIMITED: Fitch Affirms BB Long-Term IDR, Outlook Negative


S W E D E N

SAS AB: Chief Executive to Step Down Amid Coronavirus Crisis


S W I T Z E R L A N D

SWITZERLAND: Half of Hotels, Restaurants Face Bankruptcy Risk


U N I T E D   K I N G D O M

EASYJET PLC: Obtains New Five-Year Loan Facility of US$1.87BB
INEOS QUATTRO: Fitch Gives First-Time 'BB' LT IDR, Outlook Stable
INEOS QUATTRO: Moody's Downgrades CFR to Ba3, Outlook Negative
MARB BONDCO: Fitch Assigns BB Rating to USD1BB Sr. Unsec. Notes
VIRGIN ATLANTIC: Nears US$230MM Sale, Leaseback Deal for 2 Planes



X X X X X X X X

[*] AlixPartners Joins Dr. Karsten Lafrenz as Managing Director

                           - - - - -


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F R A N C E
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CASTILLON SAS: Devoteam Tender Offer No Impact on Moody's B2 Rating
-------------------------------------------------------------------
Moody's Investors Service said that Castillon SAS's B2 ratings
remain unaffected following the completion of the tender offer for
Devoteam SA's shares.

On December 17, 2020, Devoteam's founders, Godefroy and Stanislas
de Bentzmann, in combination with KKR, announced the final results
of the tender offer initiated by Castillon on Devoteam's shares, as
published by the French financial market authority (AMF), whereby
Castillon will hold 6,677,220 of Devoteam's shares, which
represents 80.14% of Devoteam's share capital and at least 78.46%
of the theoretical voting rights. This announce11,  2020.

RATINGS RATIONALE

The Company's credit profile remains broadly unchanged following
the completion of the tender process. Although Castillon's
aforementioned shareholding falls short of the 90% required to
pursue a squeeze-out of Devoteam's minority shareholders at this
stage, and will prevent the establishment of fiscal unity, Moody's
forecasts of the Company's credit metrics are not materially
impacted. Following the completion of the tender process, the
rating agency calculates Moody's-adjusted (gross) leverage of 5.4x
for Castillon, proforma for the transaction, declining towards 5.1x
in 2021 and 4.7x in 2022, with a Moody's-adjusted free cash flow /
debt ratio of around 3% in 2021 rising towards 5% in 2022. These
Moody's metrics are calculated on a proportionate basis, taking
into account Castillon's 80% shareholding in Devoteam, and are thus
more conservative than metrics based on consolidation accounting,
which would take account of 100% of Devoteam. The rating agency
does not expect any change in the Company's strategy, when compared
to a squeeze-out scenario.

The B2 CFR is supported by the Company's specialization in
fast-growing digital transformation technologies; its strategic
partnerships with leading providers of such technologies; a
longstanding blue-chip client base that is reasonably well
diversified across industries; its good cash flow generation,
supported by limited capital spending needs; and management's track
record of successfully navigating economic cycles and technological
disruptions.

Concurrently, the rating is constrained by high fixed costs and
limited scalability, as Devoteam must increase billable headcount
to grow revenue; an undersupplied and highly competitive market for
skilled labor; the fragmented technology consulting market that is
cyclically sensitive and fiercely competitive, which strains
billing rates; relatively high leverage; and the likelihood that
Devoteam will make acquisitions, which present execution risks and
could pressure credit metrics depending on how they are financed
and how much and how quickly they are accretive to earnings.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Devoteam is a French technology consulting firm based near Paris
and operating in 20 countries across Europe, the Middle East and
Africa. It advises corporate clients on the capabilities, selection
and customized uses and implementation of digital transformation
technologies, including social, mobile, analytical, cloud and
cybersecurity technologies. Devoteam has been listed since 1999
(Euronext: DVT). For the 12 months ending June 30, 2020, Devoteam
had revenue of EUR776 million and an operating margin of EUR81
million (10.5%).



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

ARVOS MIDCO: Moody's Downgrades CFR to Caa1, Outlook Negative
-------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating of
Arvos Midco S.a r.l. (Arvos) to Caa1 from B3 and the company's
probability of default rating to Caa3-PD from B3-PD. Concurrently,
the instrument ratings on the first lien senior secured term loan B
maturing in August 2021 and the first lien senior secured revolving
credit facility maturing in May 2021 at Arvos BidCo S.a.r.l. were
downgraded to Caa1 from B3. The outlook on all ratings was changed
to negative from ratings under review. This concludes the rating
review that was initiated on October 5, 2020.

RATINGS RATIONALE

In October 2020, Arvos proposed an amend and extend transaction to
its lenders. At completion, the amendments to the loan
documentation will become effective, including the two-year
maturity extension of first lien term loan B and RCF to August 2023
and May 2023, respectively. The transaction is expected to close
within the next 30 days. If the transaction would close as
proposed, Moody's would consider this transaction as a distressed
exchange according to Moody's criteria, despite the fact that the
proposed transaction moderately improves the company's credit
profile. The change of Arvos PDR reflects the high likelihood that
the transaction will close as proposed. Upon closing of the
transaction Moody's expects to realign CFR and PDR and append an
/LD indicator to the PDR for approximately three business days.

In Moody's view the proposed amend and extend transaction, once
concluded, would be moderately credit positive, as the transaction
alleviates concerns about the company's liquidity profile in the
light of the original maturities of the RCF and first lien term
loan B in 2021, which would be extended by two years. However,
Arvos' Moody's adjusted gross leverage of 13.5x in the last twelve
months period ending September 2020, represents a capital structure
that might be unsustainable in the longer term without any material
improvement in EBITDA, given that the transaction will not reduce
its debt levels.

The downgrade of the CFR to Caa1 with a negative outlook reflects
Moody's expectation that Arvos' leverage will remain at levels much
higher than required for its previous B3 rating during current
fiscal year ending March 2021 (fiscal 2021). It also reflects
increasing risks that a recovery of credit metrics to more
sustainable levels in the following fiscal year will be delayed, as
the coronavirus pandemic continues to constrain investment
decision-making at Arvos' customers. The challenging environment in
Arvos' core markets including power generation, petrochemical and
other industrial end markets continues to affect the company's
order intake, which showed around 30% year-on-year decline in the
first eight months of the current fiscal year.

The Caa1 CFR also incorporates Moody's expectation that the
company's liquidity profile will improve to adequate levels after
the maturity extension, supported by the expectation of at least
break-even Moody's adjusted free cash flow generation in fiscal
2022. Moody's also positively recognizes company's proactive steps
to manage the weakness in its core end markets, including cost
savings measures, disciplined working capital management and
reduced capital spending. This is reflected in the company's
ability to improve its reported free cash flow generation by around
EUR13 million year-to-date November 2020 compared to the same
period of the previous fiscal year, despite around 25% yoy revenue
decline over the same period.

LIQUIDITY

Arvos' liquidity profile is expected to improve to adequate levels
after the completion of the amend and extend transaction. As at
November 30, 2020 the company had around EUR19 million of cash on
balance sheet and around EUR21 million of availability under its
EUR33 million RCF (the RCF commitments will reduce to EUR28 million
following the completion of the amend and extend transaction).
These liquidity sources in combination with forecasted FFO
generation should be sufficient to cover forecasted capital
expenditure, scheduled debt amortizations and swings in working
capital over the next 12-18 months. Moody's also expects that the
proposed amended financial covenants will be met at all times
during the next 12-18 months, including a minimum liquidity
covenant.

STRUCTURAL CONSIDERATIONS

In Moody's assessment of the priority of claims in a default
scenario for Arvos, Moody's distinguish between two layers of debt
in the capital structure. First, the senior secured EUR33 million
RCF (the RCF commitments will reduce to EUR28 million following the
completion of the amend and extend transaction), EUR241 million
outstanding and $163 million outstanding senior secured first-lien
term loans and trade payables rank pari passu on top of the capital
structure. Then, behind these debt instruments are pension and
lease obligations. The ratings of the first-lien instruments are
aligned with the CFR at Caa1. Part of Arvos' equity is provided by
way of a shareholder loan, which Moody's considers an equity-like
instrument in line with our Manufacturing Methodology for hybrid
debt instruments.

RATING OUTLOOK

The negative outlook on Arvos' rating reflects Moody's expectation
of adjusted leverage remaining above 8x in fiscal 2022, with
limited FCF to deleverage by the time the debt will be due.
Furthermore the negative outlook reflects the risk that absent a
performance improvement in the next 12-18 months refinancing risks
will exacerbate again.

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

Upward pressure on the rating could materialize, if there are
visible near term improvements in performance resulting in Moody's
adjusted leverage decreasing below 6.5x. Furthermore, an upgrade of
Arvos' ratings would require an adequate liquidity profile,
including comfortable capacity under its covenants, at all times.

Moody's would consider downgrading Arvos' rating, if liquidity
weakens due to negative FCF or decreasing covenant headroom. Arvos'
rating also could be downgraded if there are no operating
performance improvements that result in a more sustainable capital
structure.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Manufacturing
Methodology published in March 2020.

PROFILE

Arvos Midco S.a r.l. (formerly Alison Midco S.a.r.l.) is the parent
company of Arvos BidCo S.a r.l., the parent company of the Arvos
Group. Arvos is an auxiliary power equipment provider operating in
new equipment and offering aftermarket services through two
business divisions: Ljungstrom for Air Preheaters, including air
preheaters and gas-gas heaters for thermal power generation
facilities; and Schmidt'sche Schack for Heat Transfer Solutions for
a wide range of industrial processes mainly in the petrochemical
industry (Transfer Line Exchangers, Waste Heat Steam Generators and
High-Temperature Products). In the 12 months ended September 2020,
Arvos generated EUR298 million of sales and company-adjusted EBITDA
of around EUR50.9 million. Arvos Group is a carve-out from Alstom
and is fully owned by Triton funds and by its management.

KENBOURNE INVEST: Fitch Rates USD300MM-USD450MM Unsec. Notes BB-
----------------------------------------------------------------
Fitch Ratings has assigned a rating of 'BB-' to WOM S.A.'s proposed
USD300 million-USD450 million unsecured notes. The notes will be
issued out of Kenbourne Invest S.A., a financing vehicle
incorporated in Luxembourg that issued the group's existing
unsecured USD510 million 6.875% notes due 2024. The new notes will
rank equally to the existing notes, and will be fully guaranteed by
WOM and its parent companies, including WOM Holdings SpA, among
other entities in the corporate structure.

Fitch expects that the proceeds will be primarily used to purchase
mobile spectrum, to refinance the company's CLP120 billion (USD150
million) term loan due 2024, and for general corporate purposes.

Fitch expects that, as a result of the transaction, net debt/EBITDA
will temporarily exceed the negative sensitivity of 4.0x in 2021,
before declining to 3.5x-4.0x by YE 2022. Inability to delever, due
to competitive pressures or shareholder distributions, would be
negative for the ratings.

KEY RATING DRIVERS

Additional Growth Expected: The network investments should
contribute to growing revenues and margins, which should enable the
company to delever over the medium term. Fitch forecasts WOM to
grow revenues from CLP570 billion in 2020 to CLP670 billion in
2023, as the company improves post-paid migration and lowers churn.
Fitch also forecasts EBITDA margins rising from 21% (CLP120
billion) to 28% (CLP190 billion) over the rating horizon, due to
improvements in scale, as well as incremental EBITDA margin
expansion as the company reduces network rentals.

Temporary Increase in Leverage: On a pro forma basis, the
transaction is expected to increase net debt by USD150
million-USD300 million, or around 0.9x -1.8x net leverage, from
3.5x as of Sept. 30, 2020. Fitch forecasts that WOM's fiscal 2021
net leverage will be around 4.6x-4.7x. Improvement in operating
cash flow should contribute to the company's net leverage ratio
declining to around 3.6x by 2023. The deleveraging expectation fits
with the company's historical leverage trajectory, which declined
from 5.4x in 2018 to 4.3x in 2019 and 3.5x in 2020.

Increasing Cash Flows: Fitch forecasts FCF to approach neutral by
fiscal 2023, as operating cash flows grow with EBITDA. Fitch
expects that the company will obtain new spectrum and that the
company will receive significant government subsidies for its fiber
optic build out. Fitch does not anticipate that WOM will upstream
significant cash to its parent in the near term; longer term, Fitch
expects the company to distribute excess cash to shareholders.

Improved Market Share, Small Scale: Since WOM launched in mid-2015,
the company scaled rapidly, achieving approximately 6.7 million
customers, almost half of which are post-paid. The company took
market share from larger incumbents through its disruptive
marketing campaign and attractive pricing. Fitch expects the
company's market share to grow in the medium term to approximately
25% from 22%. The ratings are tempered by the company's relatively
small scale as the third largest mobile operator in Chile by
subscribers and revenues. Compared to each of its major domestic
competitors, as well as 'BB-' regional peers, WOM lacks service
diversification.

Management Track Record: WOM has a credible deleveraging
trajectory, backed by its strong growth, and experienced management
team and shareholder. Novator has experience running
telecommunications ventures in both developed and developing
markets, and executed its growth strategy while demonstrating a
path to profitability. Fitch views sister company P4 Sp. Zo.o
(Play), originally rated 'B+' in 2014, as illustrative. Play
achieved rapid growth as the fourth player in the Polish market,
before achieving market leadership, while successfully
deleveraging, and maintain net leverage in the mid-3.0x range.

Competitive Telecom Market: The Chilean telecom market remains very
competitive, as incumbent operators had to cut prices and improve
service to defend market share, pressuring margins and cash flows.
Fitch expects industry-wide mobile ARPUs to remain pressured,
although WOM's value proposition and lower blended ARPUs should
mitigate these concerns to a degree. The market is relatively
mature, although the ongoing migration from prepaid to post-paid,
and the attendant growth in data consumption, present
opportunities.

DERIVATION SUMMARY

WOM's ratings reflect the company's short but impressive track
record in Chile, as well as Fitch's expectation that the company
will deleverage moderately, in line with sister company P4 Sp.
Zo.o. Compared with Chilean rival Telefonica Moviles Chile S.A.,
WOM has much higher leverage, as well as less scale and service
diversification. Compared to mobile leader Entel, WOM is expected
to carry higher net leverage over the medium as a result of the
dividend recapitalization. Like WOM, ENTEL entered a new market,
causing subscriber attrition and price competition, although WOM
was quicker to generate positive EBITDA and deleverage
organically.

Chilean fixed line provider VTR Finance NV (VTR, BB-/Stable) is
similar to WOM in scale, although VTR has a stronger market
position in the more stable fixed-line segment. Both companies are
owned by experienced international operators that are expected to
maintain moderately high amounts of leverage and upstream excess
cash over the long term. VTR has a history of maintaining net
leverage around 4.0x and a longer history of positive pre-dividend
FCF, although its ratings ultimately constrained by the financial
policies of Liberty Latin America Limited (LLA, NR).

KEY ASSUMPTIONS

-- Revenues of CLP570 billion in 2020, growing to CLP670 billion
    by 2023;

-- EBITDA margins growing from approximately 21% to 28% as the
    company benefits from increased scale and lower network
    rentals;

-- Elevated capex in 2021 due to acquisition of spectrum and
    necessary investments, falling to 15% over the rating horizon;

-- For the projections, Fitch has assumed total net issuance of
    USD300 million.

RATING SENSITIVITIES

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

-- Deleveraging toward 3.0x net debt/EBITDA on a sustained basis,
    with consistent growth in EBITDA and pre-dividend FCF
    supported by improved competitive position and scale.

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

-- Substantial deterioration in ARPUs and/or stagnation in
    competitive position, resulting in net debt/EBITDA sustained
    above 4.0x.

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

WOM has adequate liquidity, aided by its improving operating cash
flow and a committed revolving credit facility. As of Sept. 30,
2020, the company had CLP105 billion in cash and equivalents,
mostly in USD, against CLP16 billion in short-term debt.

The company's CLP120 billion term loan amortizes in three
installments from 2022-2024, while the company's existing notes are
due in 2024.

Pro forma for the larger transaction, the company's debt will
entirely consist of USD notes, in the amount of USD960 million.

In February 2020, the company re-opened its 2024 bond for an
additional USD60 million. In May, the company tapped its revolving
credit facility for CLP20 billion, which it subsequently repaid.
The revolving credit facility supports the company's adequate
liquidity.



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

WINTERSHALL DEA: Fitch Rates Proposed Fixed-Rate Notes BB+(EXP)
---------------------------------------------------------------
Fitch Ratings has assigned Wintershall Dea Finance 2 B.V.'s
proposed subordinated resettable fixed-rate notes an expected
rating of 'BB+(EXP)'. The notes are guaranteed by Wintershall Dea
GmbH on a subordinated basis. The securities will qualify for 50%
equity credit (EC). Wintershall Dea's Long-Term Issuer Default
Rating (IDR) is affirmed at 'BBB' with Stable Outlook.

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

The hybrid notes are deeply subordinated and rank senior only to
Wintershall Dea's share capital, while coupon payments can be
deferred at the option of the issuer. These features are reflected
in the 'BB+(EXP)' rating being two notches lower than Wintershall
Dea's IDR. The 50% EC reflects the hybrid's cumulative interest
coupon, a feature that is more debt-like in nature.

Wintershall Dea's Stable Outlook reflects Fitch’s expectations
that leverage metrics will return to levels that are commensurate
with a 'BBB' rating from 2021, after exceeding Fitch's negative
rating sensitivities in 2020. This will be driven by production
from new projects from 2020 and 2021, an expected increase in oil
and gas prices, Wintershall Dea's prompt financial response to a
more difficult macro backdrop for the oil and gas industry caused
by the pandemic, positive impact of Norwegian taxation changes and
the expected impact of the hybrid notes placement.

The rating of Wintershall Dea is supported by the scale of its oil
and gas production, a diversified asset profile and fairly low
through-the-cycle leverage. While Russia (BBB/Stable) and
lower-rated countries in the Middle East and Africa and Latin
America account for over half of the group's output, the
contribution of these regions to group EBITDA is lower than
Norway's (AAA/Stable), which Fitch expects to decline as new
Norwegian fields add to production.

KEY RATING DRIVERS

NOTES

Ratings Reflect Deep Subordination: The proposed notes are rated
two notches below Wintershall Dea's IDR of 'BBB', given their deep
subordination and consequently, lower recovery prospects in a
liquidation or bankruptcy relative to senior obligations. The notes
rank senior only to the claims of equity shareholders, including
Wintershall Dea's preference shares that Fitch treats as ordinary
equity.

Equity Treatment: The securities qualify for 50% EC as they meet
Fitch's criteria with regard to deep subordination, such as
remaining effective maturity of at least five years, full
discretion to defer coupons for at least five years and limited
events of default. EC is limited to 50% given the cumulative
interest coupon, a feature that is more debt-like in nature.

Effective Maturity Date: Although the hybrids are perpetual, Fitch
deems their effective maturity five years after the first reset
date, in accordance with the agency's Corporate Hybrids Treatment
and Notching Criteria. From this date, the coupon step-up is within
Fitch's aggregate threshold rate of 100bp, but the issuer will no
longer be subject to replacement language, which discloses the
intent to redeem the instrument at its reset date with the proceeds
of a similar instrument or with equity.

According to Fitch's criteria, the 50% EC would change to 0% five
years before the effective maturity date. The issuer has the option
to redeem the notes starting from at least three months before the
first interest reset date.

Change of Control EC-Neutral: Terms of the hybrid notes provide
Wintershall Dea with an option to repurchase them in the event of a
change of control. If the notes are not called, the coupon will
increase by 500bp, which does not negate the EC assigned to the
notes. Fitch does not expect Wintershall Dea's potential IPO to be
a change-of-control event as defined in the hybrid notes
documentation.

WINTERSHALL DEA

Lower Capex, Common Dividend Suspended: In response to lower
hydrocarbon prices, Wintershall Dea had sought to decrease capex by
30% to EUR1.2 billion in 2020, exploration spending by 20% to
EUR175 million and costs by 10%. It also suspended dividends. These
measures in addition to the temporary tax incentives in Norway
would have allowed the group to keep its funds from operations
(FFO) net leverage at 3.0x in 2020 compared with 2.9x in 2019
(pro-forma for the full year of Wintershall and DEA merger) despite
sharply lower oil and gas prices.

Additional Levers Available: In line with Fitch's current oil and
gas price deck, Fitch assumes Wintershall Dea's FFO net leverage
will decrease to 1.8x in 2021, a level that is well below Fitch’s
negative sensitivity of 2.5x for the 'BBB' rating. Should oil and
gas prices remain lower than currently forecast, lower dividends
and potentially more asset sales may protect Wintershall Dea's
credit profile from more difficult economic conditions.

New Projects Coming Online: Wintershall Dea started production in
2020 at a number of oil and gas fields in Norway, Russia and Egypt
and will continue to do so in 2021 with a combined peak production
of 242kboe/d. Given that development of all those projects is
well-advanced, execution risk is minimal. Based on information
provided by Wintershall Dea, Fitch believes those projects have
sound economics, even in an environment of low oil and gas prices.

Formula-based Gas Pricing: Only about 35% of Wintershall Dea's gas
production is directly linked to spot title transfer facility (TTF)
or Brent pricing, with pricing of the remaining production linked
to different formulas or non-European gas prices. Formula-based and
domestic gas prices remain subject to volatility resulting from
changing benchmark prices and exchange rates. Realised gas prices
in 9M20 declined 40% versus a 46% decline of spot TTF prices,
driven by lower benchmark prices and a higher share of production
from non-European locations with lower profitability but marginally
higher stability.

Recovery in Gas Prices Expected: TTF natural gas spot prices
averaged USD1.7 per thousand cubic feet (kcf) in 2Q20 and
USD2.7/kcf in 3Q20, but were considerably higher in 4Q20. In
December 2020, TTF spot price was above USD5/kcf as high gas prices
in East Asia partially drew gas supply away from Europe. Based on
Fitch's oil and gas price deck, Fitch assumes TTF prices will
average USD3.75/kcf in 2021, USD4.5/kcf in 2022 and USD5/kcf in the
long term.

Climate Targets: Wintershall Dea plans to reach net zero greenhouse
gas emissions in upstream activities by 2030, by reducing Scope 1
and 2 emissions to the lowest technically and economically feasible
levels and offsetting remaining emissions with nature-based
solutions to achieve net zero levels. It also plans to reduce
methane intensity to 0.1% by 2025. A high proportion of gas in
total output (73%) and low production costs position Wintershall
Dea firmly for the energy mix transition. Yet, its focus on
upstream activities may put it at a disadvantage versus peers with
a more diversified business profile.

Country Risk Limited: Wintershall Dea's assets and production are
well-diversified. Production in Russia (BBB/Stable) and lower-rated
countries in North Africa and Latin America are estimated to have
accounted for around 30% of EBITDA in 2020. The share will,
however, decrease gradually to 25% in 2023 following an increase in
production in Norway, for example from Dvalin and fields in the
Njord Area.

Norwegian Tax Deferral: The Norwegian government has granted a
temporary tax relief to oil and gas companies to support the
industry and employment. Projects for which the associated
development plans are submitted to the government by end-2022 and
approved before end-2023 will benefit from the new regime until
start of production. Fitch incorporates EUR400 million of tax
rebate into Wintershall Dea's 2020 cashflow and more than a EUR150
million refund in 2021, but expect higher taxes paid thereafter.

Nord Stream 2 Exposure: Wintershall Dea is one of five
international project partners that provided debt funding to The
Nord Stream 2 pipeline project that is fully owned by Gazprom PJSC
(BBB/Stable). The construction of Nord Stream 2 has been subject to
a considerable amount of public and political attention in recent
years, including warnings from the US administration of sanctions
against companies participating in the project. Construction of the
pipeline re-started in December 2020. Fitch treats any negative
consequences from Wintershall Dea's financial participation in the
project as an event risk.

DERIVATION SUMMARY

Wintershall Dea's closest peers are Aker BP ASA (BBB-/Stable) and
Diamondback Energy, Inc (BBB/Rating Watch Negative). Wintershall
Dea's production in 2019 of 642kboe/d was significantly higher than
that of Aker BP ASA (156kboe/d) or Diamondback Energy (283kboe/d).
Wintershall Dea is also more geographically diversified than its
peers with operations in northern Europe, MENA, Latin America and
Russia compared with North Sea for Aker BP and the US for
Diamondback.

Wintershall Dea had higher net leverage in 2019 than Aker BP ASA
and Diamondback, but Fitch expects leverage to be broadly similar
for the three companies from 2021.

KEY ASSUMPTIONS

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

-- Brent oil price at USD45/b in 2021, USD50/b in 2022, and
    USD53/b thereafter

-- TTF gas price at USD3.75/kcf in 2021, USD4.5/kcf in 2022 and
    USD5/kcf thereafter

-- EUR/USD exchange rate at 1.14 in 2020 and 1.11 thereafter

-- Production volumes growth for 2021-2023 slightly below
    management's projections

-- Cash inflows related to Nord Stream 2 loan excluded from our
    forecast

-- Capex averaging EUR1.2 billion p.a. in 2020-2023 (including
    capitalised exploration and decommissioning spending)

-- No common dividend in 2020; an average of EUR550 million
    dividend p.a. in 2021-2023.

RATING SENSITIVITIES

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

-- FFO net leverage sustainably below 1.5x, coupled with
    consistently positive free cash flow (FCF)

-- Successful ramp-up of new upstream projects leading to oil and
    gas output in excess of 750 kboe/d and more geographically
    balanced output from countries with a more developed operating
    environment

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

-- FFO net leverage sustainably above 2.5x

-- Aggressive M&A, dividend payments or other policies materially
    affecting credit profile and leading to consistently negative
    FCF

-- Sustained weakness in gas 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

Strong Liquidity: Wintershall Dea had EUR0.5 billion short-term
debt owed to its WIGA transportation JV, accounted for as an equity
affiliate, within a cash pooling framework at 30 September 2020.
Its short-term debt was fully covered by EUR0.5 billion of cash and
cash equivalents and a EUR0.9 billion committed revolving credit
facility (RCF) maturing in 2025.

Fitch estimates that Wintershall Dea will generate positive FCF
over the next 12 months as lower underlying operating cashflow will
be offset by tax refund in Norway, and cuts to operating cost and
capex. Wintershall Dea has debt maturities from 2022, which will
amount to roughly EUR1 billion annually until 2025. Fitch expects
some of them to be repaid with FCF, while the rest may be
refinanced.

SUMMARY OF FINANCIAL ADJUSTMENTS

-- Wintershall Dea's 2019 EBITDA reduced by EUR238 million to
    eliminate the effects of subsidiary deconsolidation,
    restructuring costs and other items. Its 2019 FFO was
    increased by EUR85 million to reflect restructuring and other
    non-recurring costs.

-- EBITDA was reduced by EUR56 million to deduct right-of-use
    assets depreciation and lease-related interest expense in
    2019. At the same time, its lease liabilities were removed
    from debt.

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.

WINTERSHALL DEA: Moody's Gives Ba1 Rating to New Hybrid Notes
-------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 rating to the proposed
undated subordinated resettable fixed rate ("hybrid") notes to be
issued by Wintershall Dea Finance 2 B.V. and guaranteed on a
subordinated basis by Wintershall Dea GmbH ("Wintershall Dea" or
"the Company"). Wintershall Dea's existing ratings remain
unchanged. The outlook on Wintershall Dea Finance 2 B.V. is
negative.

RATINGS RATIONALE

The Ba1 rating assigned to the proposed hybrid notes is two notches
below Wintershall Dea's Baa2 senior unsecured rating, because they
will be deeply subordinated to the senior unsecured backed
obligations of Wintershall Dea and its subsidiaries and rank senior
only to common and preferred shares. The notes will be perpetual
and its conditions do not include events of default. Wintershall
Dea may opt to defer coupon payments on a cumulative basis.

The proposed hybrid notes will qualify for the "basket C" and a 50%
equity treatment of the borrowing for the calculation of the credit
ratios by Moody's.

Given that in Moody's understanding at least 50% of the proceeds
from the proposed hybrid notes issuance will be used to repay
existing senior unsecured debt instruments of Wintershall Dea, the
issuance will not have a material impact on the Company's Moody's
adjusted leverage and interest coverage on a pro-forma basis. As
such, Wintershall Dea's Baa2 senior unsecured ratings remains
unchanged.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects Wintershall Dea's relatively high
debt levels and weak cash flow-based credit metrics for its Baa2
rating by year end 2020 Furthermore the outlook takes into account
the uncertainty on the pace and degree of economic recovery from
the Covid 19 crisis which ultimately drives oil & gas demand and
prices in 2021.

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

Wintershall Dea's rating could be downgraded if the Company: is
unable to replace its depleting reserve base; does not restore is
financial metrics over the next 12 to 18 months towards 2.5x adj.
debt / EBITDA(X) on a sustained basis and its RCF to debt ratio
well above 20% on a sustained basis; and or its financial policy
weakens and so liquidity.

Upward pressure on Wintershall Dea's rating could emerge if the
Company were to: increase the geographical diversification of its
reserve and production profile; maintain or increase its proved
developed reserve life at around 6 years; reduce adj. debt /
EBITDA(X) below 1.5x on a sustained basis; and increase RCF/Debt
towards 40% and maintain a conservative financial policy at the
same time.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Independent
Exploration and Production Industry published in May 2017.

COMPANY PROFILE

Wintershall Dea was created on May 1, 2019 as a result of the
merger between BASF (SE) (A3 Stable) subsidiary Wintershall Holding
GmbH and DEA Deutsche Erdoel AG. It is Europe's largest independent
oil & gas exploration & production company with 2019YE
like-for-like production of 617kboed and proved developed reserves
covering its production for around 5.8 years. The company reached
like-for-like annual sales and other income of EUR5.9 billion and
reports a company defined EBITDAX of EUR2.8 billion in 2019.



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

NORWEGIAN AIR: To Return Planes to Lessors Under Restructuring
--------------------------------------------------------------
John McDermott at AirlineGeeks reports that Norwegian Air Shuttle
has begun moving aircraft to Ireland's Shannon Airport as it plans
to return the planes to lessors in accordance with its
restructuring.

According to AirlineGeeks, most of the planes Norwegian will lose
are Boeing 787 Dreamliners, which the carrier has previously used
for long-haul flights. Two Dreamliners are already prepared to be
delivered to a new airline -- the Italian carrier Neos -- which has
a lease agreement for the aircraft, AirlineGeeks states.

At the time of writing, Norwegian has already moved six Dreamliners
to Shannon, AirlineGeeks notes.  The aircraft all belong to AeroCap
and are registered as LN-LNF, G-CKOF, G-CKWB, G-CKWE, LN-LNO and
LN-LNR, according to AirlineGeeks.

Norwegian, AirlineGeeks says, may move as many as 72 planes to
Shannon to be repossessed by Irish leasing companies.  In addition,
the airline has 68 other aircraft that are not owned by Irish
companies and will stay with the airline for the time being,
AirlineGeeks discloses.

The airline's movements come following an Irish High Court decision
to grant it creditor protection, AirlineGeeks relays.  This allows
Norwegian extra time to restructure its debts, AirlineGeeks notes.
In mid December, Norwegian's creditors backed a rescue plan to save
the airline; the carrier must negotiate with creditors to reduce
debt, and it is currently searching for investors and lenders
willing to offer a fresh round of financing, AirlineGeeks says.

Norwegian's goal, Reuters reported in December, is to emerge as a
smaller, more efficient airline with fewer planes, less debt and
more equity by the end of February, AirlineGeeks notes.  If its
search for capital fails, the airline could run out of cash by the
end of March, AirlineGeeks states.

Like many airlines, Norwegian has struggled since the onset of the
coronavirus pandemic, AirlineGeeks relays.  It saw a 90% drop in
passenger numbers over the summer as its primary passengers,
international long-haul travelers moving between countries, stopped
flying amid border closures and virus fears, AirlineGeeks notes.
Norway's government declined to offer a second round of funding to
the airline, AirlineGeeks relates.




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R O M A N I A
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BANCA TRANSILVANIA: Fitch Affirms 'BB+' LT IDR, Outlook Negative
----------------------------------------------------------------
Fitch Ratings has affirmed Banca Transilvania S.A.'s (Transilvania)
Long-Term Issuer Default Rating (IDR) at 'BB+' with a Negative
Outlook and Viability Rating (VR) at 'bb+'. A full list of rating
actions is below.

KEY RATING DRIVERS

IDRs and VR

Transilvania's IDRs are driven by its standalone creditworthiness,
as reflected in its VR. The latter is underpinned by the bank's
strong domestic market franchise, solid capitalisation, robust
funding and liquidity and reasonably resilient through-the-cycle
profitability. Fitch believes the economic fallout of the
coronavirus pandemic creates a medium-term risk for Transilvania's
credit profile, although the bank entered the crisis in a strong
position relative to its rating level. Fitch’s assessment of the
operating environment is of high importance for Transilvania's
standalone credit profile and to a large degree constrains the
bank's VR.

The Negative Outlook on Transilvania's IDR reflects the downside
risks to the bank's credit profile as a result of the Covid-19
pandemic. The uncertainty over the depth of the damage to the
Romanian economy drives Fitch’s negative outlooks on the
operating environment, asset quality and earnings scores. In
Fitch’s view, the bank would not be immune to a downgrade of the
operating environment assessment. Fitch expects the Romanian
economy to contract by 5.4% in 2020 and return on gradual recovery
with real GDP growing by 3.4% in 2021. Downside risks to Fitch’s
forecast remain as the resurgence of the pandemic increases the
risk of further lockdowns.

Transilvania is the largest Romanian bank with about a 19% market
share of total sector assets. Its traditional banking business
model focuses on serving SMEs, entrepreneurs and retail clients
with whom it has strong relationships. A granular loan book and
limited exposure to volatile industries supports its record of
solid overall performance through the cycle.

The bank's capital position is a rating strength, underpinned by
solid capital ratios (common equity Tier 1 ratio of 16% at end
3Q20), reasonable buffers above regulatory minimums and low capital
encumbrance by unprovisioned impaired loans. Internal capital
generation, although weaker compared with prior years given
profitability pressures, provides adequate loss absorption
capacity. In Fitch’s view, the bank's capital position could
withstand even a quite severe stress scenario.

The bank's asset quality to date reflects its diversified loan
portfolio, solid underwriting of new loans and effective resolution
of legacy bad debts. At end-3Q20 the bank's impaired loans (IFRS 9
stage 3 loans) accounted for about 5.4% of gross loans. Fitch
expects the bank's asset quality to weaken as loan moratoria and
state support to Transilvania's customers expire. At end 3Q20, the
bank's loan portfolio under moratorium stood at about 9% of gross
loans, down from the peak of about 14%. Early indicators show solid
resumption of repayment, but they relate mainly to retail
borrowers, while the majority of moratoria with a significant share
of non-retail borrowers were set to expire in 4Q20.

Transilvania's provision coverage remains solid and improved in
2020 as the bank front loaded expected losses. The ratio of total
provisions to impaired loans rose to about 132% at end-3Q20. In
Fitch’s view, this provides a solid starting point going into
2021.

Transilvania's profitability suffered during 2020 from pressure on
revenues and elevated loan impairment charges. The bank's operating
profit to risk-weighted assets fell to a still reasonable 2.9% in
9M20 (annualised). Fitch expects revenues to recover gradually in
2021 as the effects of loan moratoria on net interest margins
dissipate, lending gradually picks up and transaction volumes
support a recovery in fees and commissions. Operating efficiency
remains strong owing to tight cost control and a continued move
towards digitalisation and remote banking servicing of clients.
Loan impairment charges will remain elevated as underlying asset
quality risks materialise but should be below those recorded in
2020.

Transilvania's funding and liquidity remain rating strengths. The
bank is self-funded with stable and granular customer deposits. Its
strong funding profile is reflected in a low gross loan/customers
deposits ratio of 54% at end-3Q20. Transilvania's liquidity is
ample, comprising mostly Romanian government bonds and placements
with the central bank. Basel liquidity ratios (liquidity coverage
ratio, net stable funding ratio) remain well above regulatory
minimum requirements, while liquid assets covered over 60% of
customer deposits at end-3Q20.

SUPPORT RATING AND SUPPORT RATING FLOOR

Transilvania's Support Rating of '5' and Support Rating Floor of
'No Floor' reflect Fitch's view that sovereign support for senior
creditors, while possible, can no longer be relied upon, as for
most other commercial banks in the EU, following the adoption of
the Bank Recovery and Resolution Directive.

RATING SENSITIVITIES

IDRS and VR

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

-- Operating environment pressure for Romanian banks materializes
    to the extent that triggers a reassessment to below 'bb+'.
    This could happen in case of a material and prolonged
    deterioration of GDP per capita metrics or the sovereign being
    downgraded,

-- Material weakening of the bank's capital position due to
    direct effects of the pandemic on the bank's asset quality and
    profitability, without clear prospects for recovery.

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

-- In the event Transilvania is able to withstand rating pressure
    arising from the pandemic, an upgrade of the Romanian
    operating environment score (bb+), which is currently on
    negative outlook, would be a precondition for any upgrade of
    Transilvania's VR.

SUPPORT RATING AND SUPPORT RATING FLOOR

An upgrade of the Support Rating and upward revision of the Support
Rating Floor would be contingent on a positive change in the
sovereign's propensity to support the bank. However, this is highly
unlikely, given existing resolution legislation.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond 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.

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.



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

CREDIT BANK: Fitch Rates Upcoming Sr. Unsec. Eurobonds 'BB(EXP)'
----------------------------------------------------------------
Fitch Ratings has assigned Credit Bank of Moscow's (CBM) upcoming
issue of euro-denominated senior unsecured Eurobonds an expected
'BB(EXP)' rating.

The bonds will be issued by CBM's Irish SPV, CBOM Finance PLC
(Ireland), which will on-lend the proceeds to the bank. The issue
size is yet to be determined, while the tenor is expected to be
five years. Proceeds from the issue are expected to be used for
general-banking purposes.

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

KEY RATING DRIVERS

The expected rating is in line with CBM's Long-Term Issuer Default
Rating (IDR) of 'BB', as the notes will represent unconditional,
senior unsecured obligations of the bank.

CBM's 'BB' IDRs are driven by the bank's standalone strength, as
reflected in the 'bb' Viability Rating (VR). The VR of CBM factors
in its large franchise, manageable volume of high-risk assets
relative to its moderate pre-impairment profit and core capital,
and its concentrated funding that is balanced by healthy
liquidity.

The Negative Outlook on the IDRs reflects potential pressure on the
bank's financial profile from the health crisis, lower oil prices
and the resulting economic downturn. The bank's asset quality is
vulnerable to the challenging operating environment, while
pre-impairment profit and core capital buffers available to absorb
potential losses are only moderate, rather than strong.

RATING SENSITIVITIES

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

The senior debt rating may be upgraded if the IDRs are upgraded.

The upside for CBM's IDRs is currently limited, as reflected in the
Negative Outlook. The Outlook could be revised to Stable if the
economic downturn does not result in significant erosion of the
bank's financial metrics, and if the Russian economy continues to
stabilise after a short-lived contraction.

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

The senior debt rating may be downgraded if the IDRs are
downgraded.

CBM's IDRs could be downgraded in case of marked deterioration in
its financial metrics, in particular asset quality, profitability
and capitalisation. The ratings could also be downgraded if the
economic contraction caused by the pandemic turns out to be
significantly sharper or more prolonged than currently
anticipated.

ESG CONSIDERATIONS

CBM has ESG Relevance Scores of '4' for Governance Structure and
Group Structure, which reflect a significant level of
relationship-based operations, a lack of transparency with respect
to ownership structure and significant double leverage at the level
of the bank's holding company. These have a moderately negative
impact on the bank's credit profile, and are relevant to the
ratings in conjunction with other factors.

Except for the matters discussed above, the highest level of ESG
credit relevance, if present, is a score of 3 - ESG issues are
credit neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond 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.

DME LIMITED: Fitch Affirms BB Long-Term IDR, Outlook Negative
-------------------------------------------------------------
Fitch Ratings has affirmed DME Ltd's (DME or the group) Long-Term
Issuer Default Rating (IDR) at 'BB' with Negative Outlook. Fitch
has also affirmed DME Airport Designated Activity Company's USD350
million loan participation notes due 2021 and USD300 million loan
participation notes due 2023 at 'BB' with Negative Outlooks.

RATING RATIONALE

The rating action considers limited visibility on traffic recovery,
especially in light of significant competition in Moscow's aviation
market, availability and effectiveness of the Covid-19 vaccine and
airlines' weakening financial positions, including potential
bankruptcies, which could hamper volume recovery.

Under Fitch's rating case (FRC), DME will progressively de-leverage
in the next three years on the back of expected moderate traffic
recovery and, if needed, capex and dividend flexibility. Fitch also
assumes that the USD350 million bond due in November 2021 will
shortly be refinanced.

The coronavirus pandemic and related government containment
measures worldwide create an uncertain global environment for the
airports sector. DME's most recently available performance data has
indicated severe impairment. Material changes in revenue and cost
profile are occurring across the sector and will evolve as economic
activity and government restrictions respond to the ongoing
developments. Fitch's ratings are forward-looking in nature, and
the agency will monitor the pandemic for its severity and duration,
and incorporate revised base- and rating-case qualitative and
quantitative inputs based on performance expectations and
assessment of key risks.

KEY RATING DRIVERS

Large, Wealthy Catchment Area: Revenue Risk (Volume) - 'Midrange'

DME benefits from a large catchment area of Moscow that generates
growing O&D (origin and destination) traffic (five-year CAGR of
7.4%, 104 million passengers in 2019). DME faces stiff competition
from Sheremetyevo airport (SVO), which hosts Russia's national flag
carrier Aeroflot, and Vnukovo airport (VKO).

In 9M20 Moscow's aviation hub traffic fared better, with a 48% yoy
drop, compared with other European markets' 70%-75% declines. In
the same period DME's traffic decreased 42% yoy versus traffic
falls of 60% at SVO and 51% at VKO. Its large domestic and
international destination network is served by a diversified mix of
airlines where S7 Airlines is the main airline group, accounting
for around 53% of the airport's traffic in 10M20.

Competition and Limited Record of Liberalised Tariff: Revenue Risk
(Price) - 'Midrange'

DME's revenue structure is well-diversified as the airport provides
a comprehensive range of services. In early 2016, regulation of
aviation services under a dual-till regime was lifted, allowing DME
to set tariffs freely. However, the record of operations in the
liberalised regime is limited and competition among Moscow airports
is increasing. Fitch believes the Russian national regulator,
Federal Antimonopoly Service, could re-introduce a regulated tariff
system if it regards any future price increases as excessive.

Ambitious Investments Finalised but Asset Not in Use:
Infrastructure Renewal - 'Midrange'

DME's runway and terminal capacity is sufficient for current
operations and growth. Substantial investment in the expansion of
the terminal capacity was finalised in 2019, which should increase
DME's designed capacity to 55 million passengers from the current
35 million. However, the new terminal building is not in use due to
yet to be finished second runway and apron construction, which is
the state's responsibility and has seen multiple delays. Management
expects to start using the new terminal by end-2021 or mid-2022
when the apron construction is completed.

DME's capex is consequently expected to be scaled down
significantly (to around RUB5 billion from RUB19 billion-RUB20
billion annually) until 2025. Most future outlays are flexible and
can be postponed if needed. DME used cash flows from operations and
the proceeds from debt issuance to fund expansion capex.

Limited Protection and Refinancing Risk: Debt Structure - 'Weaker'

The notes are effectively structured as corporate unsecured debt.
The notes are fixed-rate with bullet maturities and bear
foreign-exchange (FX) risk. A history of accessing capital markets
and established banking relationships mitigate refinancing risk. It
benefits from a natural hedge through a portion of revenue being in
US dollars or euros, which lowers FX risk. Covenants offer some but
not comprehensive protection to noteholders. DME has no liquidity
reserve provisions but has historically maintained prudent levels
of cash. The current rating is premised on the assumption that the
USD350 million bond due in November 2021 will be refinanced
shortly.

Financial Profile

Under the updated FRC, after the 2020 shock caused a spike in
Fitch-adjusted net debt-to-EBITDAR of 8.5x, Fitch forecasts
leverage to fall below 5.4x in 2023 and further to 4.6x by 2024.
Fitch is closely monitoring developments in the sector as the
operating environment of airports has substantially worsened, and
Fitch will revise the FRC should the severity and duration of the
pandemic be worse than expected.

ESG Factors

DME has an ESG Relevance Score of 4 for Governance Structure due to
the absence of an independent board of directors and ownership
concentration, which has a negative impact on the credit profile
and is relevant to the rating in combination with other factors.

PEER GROUP

DME compares favourably in leverage with 'BBB' category-rated
airports such as Brussels Airport Company S.A./N.V. (BBB+/Negative)
and Manchester Airport Group Funding PLC (BBB+/Negative). However,
DME has an inherent volatility associated with emerging markets as
well as FX exposure and refinancing risk.

GMR Hyderabad International Airport Limited (BB+/Negative) is also
a close peer, albeit with slightly lower projected leverage. DME
has higher traffic risk given significant competition in Moscow's
aviation market. DME's peers operate in a more stable regulatory,
legal and political environment.

RATING SENSITIVITIES

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

-- Projected Fitch-adjusted net debt/EBITDAR failing to trend
    towards 5.0x by 2023 under the FRC or inability to refinance
    in the near term its USD350 million bond maturing in 2021.

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

-- Clearer visibility on the evolution of the operating
    environment and medium-term traffic path, leading to quicker
    than-expected recovery of the leverage metric to below 5.0x
    before 2023, could lead to a revision of the Outlook to
    Stable.

ESG CONSIDERATIONS

DME has an ESG Relevance Score of 4 for Governance Structure due to
the absence of an independent board of directors and ownership
concentration.

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.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance
and Infrastructure 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 three 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.

TRANSACTION SUMMARY

DME operates Domodedovo Airport, one of the three main airports in
Moscow. DME Airport Designated Activity Company, formerly DME
Airport Limited, an Irish SPV, is the issuer of the notes, with the
proceeds on-lent to the borrower, Hacienda Investments Ltd
(Cyprus). The loans are guaranteed by the holding company DME and a
majority of DME operational subsidiaries on a joint and several
basis. The group owns the terminal buildings and leases the runways
and other airfield assets from the Russian government.

CREDIT UPDATE

Traffic Performance Better Than Market

The outbreak of Covid-19 in early 2020 and the related travel
restrictions introduced by governments around the globe have
significantly affected the worldwide aeronautical industry and,
DME, in particular.

In 2020 DME's traffic decreased 42% yoy, which is better than its
European peers' (around 70% yoy fall in 11M20), while traffic at
rival airports in Moscow, SVO and VKO, fell 60% and 49%,
respectively. Total traffic for the Moscow aviation hub fell 56%
yoy in 2020. As a result, DME's market share in Moscow aviation hub
increased to 33% in 2020 from 27% in 2019.

DME's better traffic performance than European airports' is driven
by the domestic market. Domestic travel in Russia largely recovered
to pre-pandemic levels in August and September 2020 after
quarantine restrictions were eased in June 2020. This growth was
supported by the resumption of domestic tourism, in the absence of
opportunities to travel abroad.

Financial Performance

In 9M20 total revenue fell 45.4% yoy to RUB15.5 billion, mostly
driven by lower traffic due to travel restrictions amid the
pandemic. EBITDA decreased 45.3% yoy to RUB5.8 billion. DME's
covenanted consolidated net debt/EBITDA increased to 6.8x as of
end-September 2020 from 3.9x a year ago.

Furthermore, an oil price slump and the coronavirus outbreak
resulted in a significant rouble depreciation in 9M20, costing DME
a net FX loss of RUB10.4 billion, a reversal of a net FX gain of
RUB3.4 billion in 9M19.

Mitigating Measures

DME applied a range of measures to mitigate the coronavirus effect
on traffic, including cutting operating expenses (down 43% yoy
excluding depreciation). In 9M20 payroll and related charges
decreased 31.6% yoy, maintenance costs 61.6% yoy, cleaning and
waste management expenses 48.4% yoy, and transport expenses 43.2%
yoy.

In addition, DME received a non-repayable RUB1.2 billion subsidy
from the government and contracted non-revolving subsidised loans
under the state programme for companies hit by the coronavirus
pandemic.

FINANCIAL ANALYSIS

The FRC assumes a drop in traffic volume of 42% in 2020, with a
recovery to 2019 traffic volumes after 2024. Fitch forecasts EBITDA
to have fallen twofold in 2020 before gradually recovering to
pre-pandemic levels by 2024. In response to the traffic stress,
Fitch assumes DME will take mitigating measures by decreasing capex
in 2020-2021 and raising it to RUB5 billion thereafter. Variable
costs are assumed at 30% of total operating expenditure in 2020 and
to return to 70% afterwards, with fluctuations in accordance with
volume.

DME has balance-sheet flexibility, specifically through further
suspension of capex, decrease in dividends and optimising operating
expenditure in case traffic performance is lower than expected.

The Fitch stress case (FSC) is similar to the FRC except that it
assumes slower recovery with traffic reaching only 80% of 2019
levels by 2024. Under the FSC DME's credit profile will be impaired
in this downside scenario.



===========
S W E D E N
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SAS AB: Chief Executive to Step Down Amid Coronavirus Crisis
------------------------------------------------------------
Hanna Hoikkala at Bloomberg News reports that SAS AB is
unexpectedly losing its chief executive officer, leaving
Scandinavia's main airline to search for a replacement with the
industry going through an unprecedented crisis.

CEO Rickard Gustafson is leaving to take the top job at Swedish
industrial giant SKF AB, Bloomberg relays, citing a statement late
on Jan. 11.  The 56-year-old, who has spent a decade at the helm of
Stockholm-based SAS, plans to leave by July 1 at the latest,
Bloomberg states.

The airline's board now must find an experienced executive willing
to take on the task of steering SAS through the coronavirus
pandemic, Bloomberg notes.  The health crisis has delivered a body
blow to air travel, with rising cases triggering new entry
restrictions even as countries race to distribute vaccines,
Bloomberg relates.

Like other European airlines, SAS has been forced to ground planes,
cut costs and lean on government support to remain solvent during
the coronavirus crisis, Bloomberg discloses.  In December, the
company reported a loss of NOK9.3 billion (US$1.12 billion) for the
year that ended in October, and said that it couldn't provide an
outlook for the current fiscal year, Bloomberg recounts.

In particular, travel restrictions have forced Scandinavian
carriers to cut back on trips to sunny spots and retreat to mostly
regional routes, Bloomberg states.  The most recent wave of virus
cases has brought new curbs across the continent, Bloomberg
relays.

The company is "crying out for continuity and someone who has a
deep knowledge of both the airline industry and SAS's complexity,"
Bloomberg quotes the Sydbank analysts as saying.

Still, the carrier has had access to government support, most
recently receiving a NOK1.5 billion (US$180 million) loan backed by
the Norwegian government, according to Bloomberg.




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

SWITZERLAND: Half of Hotels, Restaurants Face Bankruptcy Risk
-------------------------------------------------------------
Inspired Traveler reports that almost half of Swiss companies in
the restaurant and hospitality sector are at risk of bankruptcy by
the end of March without state aid to face the consequences of the
restrictions imposed by the fight against COVID-19, warned
GastroSuisse, the federation of hotels and restaurants, the
representative federation of the sector, on Jan. 10.

According to Inspired Traveler, the Swiss government is likely to
extend this week the closure of bars, restaurants and entertainment
venues across the country until the end of February, with hopes of
rolling back the still high number of COVID-19 cases and of
deceased.  These restrictions were originally scheduled to be
lifted on Jan. 22, Inspired Traveler notes.

But "by the end of March, half of all establishments in the hotel
and catering industry will go bankrupt if they do not receive
financial compensation now," Inspired Traveler quotes GastroSuisse,
the federation of hotels and restaurants, as saying in a press
release.

The organization, which surveyed around 4,000 restaurant and hotel
owners, says 98% of them are already in dire need of financial
support, Inspired Traveler relays.

"The existence of many of them is even threatened if they do not
receive money now," warns the president of GastroSuisse, Casimir
Platzer, quoted in the press release.

"Before the crisis, more than 80% of establishments had good, even
very good liquidity.  In the space of a month, 80% of
establishments found themselves in a very bad situation ", deplores
GastroSuisse.

Ms. Platzer said that in October, while a second wave of
contamination was gaining momentum, the organization had "alerted
to 100,000 jobs at risk", Inspired Traveler recounts.  According to
Inspired Traveler, she said in the last two months of 2020, nearly
60% of establishments in the sector were forced to downsize, after
a first round of layoffs in the spring.

Without government intervention, a third wave of layoffs is
looming, warns Ms. Platzer.

The federation, as cited by Inspired Traveler, said "GastroSuisse
therefore demands that the Federal Council be courageous and
financially compensate the hotel and restaurant industry
immediately and without complications".

The USAM (Swiss Union of Arts and Crafts), a union representing
small and medium-sized enterprises in Switzerland, for its part
called on the government on Jan. 10 not to extend or tighten the
measures, warning that it was a "Existential question" for many of
its members, Inspired Traveler recounts.



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

EASYJET PLC: Obtains New Five-Year Loan Facility of US$1.87BB
-------------------------------------------------------------
Sarah Young at Reuters reports that British airline easyJet boosted
its liquidity through a new five-year loan facility of US$1.87
billion, backed by a partial guarantee from Britain, helping to
ease concerns about its finances as the pandemic continues to stop
travel.

According to Reuters, like most European airlines, cash-strapped
easyJet had been hoping to be gearing up for a recovery this
spring, but with Britain, its biggest market, back in lockdown,
flying is expected to stay at minimal levels for several more
months.

To survive the pandemic so far, easyJet has axed 4,500 staff,
tapped shareholders for cash, and sold dozens of its aircraft, and
it did not rule out further action in its statement on
Jan. 10, Reuters discloses.

EasyJet said repaying its shorter term debt would "free up" a
number of aircraft assets further strengthening its balance sheet,
Reuters relates.


INEOS QUATTRO: Fitch Gives First-Time 'BB' LT IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has assigned Ineos Quattro Holdings Limited a
first-time Long-Term Issuer Default Rating (IDR) of 'BB' with a
Stable Outlook. Fitch has also assigned Ineos 226 Limited's
existing term loan A (TLA) a senior secured rating of 'BB+' and
proposed term loan B (TLB) an expected senior secured rating of
'BB+(EXP)' as well as Ineos US Petrochem LLC's existing TLA a
senior secured rating of 'BB+' and proposed TLB an expected senior
secured rating of 'BB+(EXP)'. The full list of rating actions is
below.

The term loans and existing notes will be guaranteed by Ineos
Quattro and other group subsidiaries on a senior secured basis. The
senior secured rating reflects the security package and is one
notch above the IDR.

The IDR reflects Ineos Quattro's strong business profile as a
globally diversified intermediate chemical manufacturer with
leading market positions in most of its business lines, which span
across four chemical value chains, and captures its robust free
cash flow generation. The Stable Outlook reflects Fitch’s
expectation that Ineos Quattro's funds from operations (FFO) net
leverage will return within the rating's sensitivities by end-2022,
driven by improved market conditions, cost savings, and positive
free cash flow.

The final instrument ratings on the TLBs will be assigned after the
transactions are completed and upon receipt of final documentation
conforming materially to information already received.

KEY RATING DRIVERS

Establishment of Ineos Quattro: On 31 December 2020, Ineos Quattro,
which controls Ineos Styrolution Group GmbH and is part of the
wider Ineos Limited group, completed the acquisition of BP plc's
(A/Stable) global aromatics and acetyls business for USD5 billion,
out of which USD1 billion will be paid in 1H21. Ineos group
contributed 94.9% of Inovyn Limited's shares to Ineos Quattro to
support the credit quality of the new group. The acquisition fits
well into the Ineos group history of buying transformative assets
and installing tight cost control and operational efficiency to
reduce leverage.

Large and Diversified Chemical Group: Fitch forecasts Ineos Quattro
will generate through-the-cycle revenue in excess of EUR13 billion
and EBITDA, excluding joint ventures (JV), of EUR1.7 billion. Ineos
Quattro will have presence in four different chemical value chains,
a strong commercial and industrial footprint in the three main
regions and diversified feedstock exposure. The aromatics and
acetyls assets purchased from BP are pure commodity chemicals, with
profit determined by market spreads, compared with Styrolution and
Inovyn, which have a proportion of revenue derived from higher
value-added products offering more pricing power.

Leadership Position in West: Fitch regards Ineos Quattro's market
position in the European and US markets as strong. Styrolution is
the global leader for polystyrene, second for styrene monomers and
third for acrylonitrile butadiene styrene standards. Inovyn is the
biggest PVC (polyvinyl chloride) producer in Europe and has been
increasing exports due to improved competitiveness.

Ineos Quattro's aromatics assets have strong co-leading positions
for the key products, paraxylene and purified terephthalic acid, in
Europe and North America, and its acetyls assets provide the
second-largest acetic-acid capacity globally. However, its market
share in Asia is a single digit although more than 50% of its
EBITDA is from the region, which is also the main aromatics and
acetyls market.

Ineos Assets Outperform: Inovyn and Styrolution outperformed
management's expectations in 2020 due to a rapid recovery in
utilisation rates, and strict cost, working-capital and capex
discipline. Fitch estimates their EBITDA fell by low single-digit
percentages in 2020, despite prices falling to a trough and an
unprecedented demand drop in 2Q20, and will improve in the coming
years as their capacity increases and market recovers. The
aromatics assets performed below Fitch’s expectations so far, but
Fitch believes the business will rebound in 2021 on pent-up demand
from the clothing sector and a restart in tourism and travelling.

Aromatics, Acetyls More Volatile: The aromatics and acetyls assets
had the sharpest revenue and profit drop in 2020 due to low
spreads, reduced demand from industries such as the apparel sector,
and JVs in Asia where prices are mainly spot. Styrenics performed
better than Fitch anticipated in 2020 although full price recovery
in 2021 is unlikely considering an increased supply of styrene
monomers in the market. Inovyn was the most resilient in 2020, with
a robust outlook as Fitch expects market fundamentals to remain
stronger than in the other businesses.

Cost-Saving Expertise: Ineos group has a record of cutting the
costs of sizeable assets, which will help with those from BP. Fitch
thinks Ineos Quattro's aim to reduce fixed costs by USD150 million
(EUR128 million) by end-2022 is achievable as it targets identified
fixed costs, is lower than the potential savings identified by the
seller, and some of the assets acquired are co-located alongside
Ineos group's plants. Fitch understands Ineos plans to further
reduce costs, which gives upside to Fitch’s forecasts. Ineos
group was able to deliver savings well ahead of its original plan
when it acquired Styrolution and Inovyn.

Temporary High Leverage: Fitch estimates an opening pro forma FFO
net leverage of an elevated 4.8x as of 31 December 2020, reflecting
bottom-of-the-cycle market conditions and the debt-funded payment
of USD4 billion for the acquisition of the aromatics and acetyls
assets, before increasing to 4.9x in 2021 after the deferred USD1
billion consideration is paid. Fitch forecasts FFO net leverage
will fall below the negative rating guideline of 4.2x in 2022 on
normalised market conditions, realised cost savings, and discipline
in capex and dividend.

Financial Policy Underpins Rating: Ineos group's strategy is to
achieve cost savings of 20%-30% of the acquired cost base and
reduce leverage before considering dividends. It is committed to a
through-the-cycle net leverage ratio of 3.0x (net debt/EBITDA, as
reported) and would not consider paying dividends before
significant deleveraging is achieved. Ineos group carried out
dividend recaps at Inovyn and Styrolution in 1Q19 and 1Q20,
respectively, when their leverage ratios were well below 1.5x and
remained below 2.0x after the recaps.

JV Uncertainty: Ineos Quattro's aromatics and acetyls assets are
characterised by the importance of JVs, which generated about 25%
of its EBITDA in 2019, especially in acetyls. These assets are
moderately leveraged, based on available information, which is not
comprehensive, and have historically made high dividend payouts.
Fitch excludes the JV EBITDA from Ineos Quattro's EBITDA, but
include the dividends the JVs pay to Ineos Quattro in Fitch’s FFO
calculation.

DERIVATION SUMMARY

Ineos Quattro's IDR reflects its large scale, and strong regional
and product diversification with balanced exposure across
styrenics, polyvinylchloride, aromatics and acetyls. The company is
a leader in its markets and has partial feedstock integration.
Ineos Quattro's diversification is comparable with that of Ineos
Group Holdings S.A. (IGH; BB+/Rating Watch Negative) or OCI N.V.
(BB/Negative), and ahead of more regional players PAO SIBUR Holding
(BBB-/Stable) or Westlake Chemical Corporation (BBB/Negative).

Ineos Quattro's scale is similar to that of IGH and Westlake, ahead
of OCI's but lags behind that of SIBUR. The company's group
structure is complex relative to that of peers due to its
operations within the larger Ineos group and a substantial share of
acetyls earnings from non-consolidated Asian JVs. Fitch rates it on
a standalone basis as subsidiaries within Ineos group operate
independently, as restricted groups with no guarantees or
cross-default provisions with the parent or other entities within
the wider group.

Ineos Quattro's profitability are below that of peers as
lower-margin aromatics and styrenics are a drag on the more robust
margins in PVC products and acetyls. The company's margins are
broadly similar to that of IGH but behind that of the other peers.
Leverage remains the weakest factor of the company's rating across
the peer group as Ineos Quattro's FFO net leverage would remain
above peers' in 2021 and 2022.

KEY ASSUMPTIONS

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

-- USD/EUR of 0.85 in 2020-2023.

-- Asian JVs in acetyls division accounted for under equity
    method (excluded from EBITDA, with dividends received included
    in FFO).

-- Bridge loan and Inovyn debt are refinanced in 1Q21.

-- Volumes to fall by 3% to 14.7 million tonnes per annum (mtpa)
    in 2020, and recover to 17.1mtpa by 2023, driven by a capacity
    increase and global demand growth.

-- Revenue to fall by 30% to EUR10.0 billion in 2020, and rise to
    EUR14.9 billion by 2023, driven by higher prices and volumes.

-- EBITDA to fall by 18% to EUR1.3 billion in 2020, and rise to
    EUR1.8 billion by 2023, in line with the revenue increase,
    improved profitability per tonne, a demand recovery and cost
    cutting.

-- Fixed-cost reductions of EUR64 million in 2021 and full
    realisation of EUR128 million by 2022.

-- Average maintenance capex of about EUR250 million per year
    plus discretionary growth capex.

-- Dividends of EUR620 million in 2020, including EUR355 million
    and EUR250 million in special dividends already paid in
    February by Styrolution and Inovyn, respectively; no dividends
    after 2020.

RATING SENSITIVITIES

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

-- Positive free cash flow generation leading to FFO net leverage
    below 3.2x on a sustained basis.

-- Realisation of cost savings in line with Fitch’s
expectations
    and market recovery translating into EBITDA margin of at least
    14%.

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

-- Inability to achieve planned cost savings and/or recover from
    market weakness, leading to FFO net leverage remaining above
    4.2x beyond 2022.

-- Significant deterioration in business profile factors such as
    scale, diversification or product leadership, or prolonged
    market pressure translating into an EBITDA margin below 12%.

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

Comfortable Liquidity: Fitch forecasts Ineos Quattro will generate
sufficient free cash flow to cover the mandatory amortisation of
the TLA in 2021, and substantially higher free cash flow than
maturities from 2022, leading to an increase in cash on the balance
sheet. Ineos Quattro also has access to a USD300 million revolving
credit facility (RCF) until 2023, undrawn at closing.

Ineos usually relies on securitisation to fund operations. Inovyn
and Styrolution have existing facilities of EUR240 million and
EUR450 million, respectively, of which only EUR31 million was drawn
at end-3Q20 at Inovyn. Moreover, Ineos Quattro's management expects
to incorporate receivables from the recently acquired businesses to
Styrolution's securitisation programme, which would provide
additional funding of about EUR200 million.

According to Ineos group's history on the use of available funds,
Fitch would expect Ineos Quattro to use its generated cash to repay
the TLA to eliminate the mandatory amortisation and maintenance
covenant, while dividend would only be distributed when leverage is
reduced substantially.

Fitch estimates Ineos Quattro had around EUR600 million in cash on
the balance sheet at end-2020, USD300 million in undrawn RCF and
about EUR400 million in available securitisation funding. Fitch
estimates pro forma liquidity of about EUR900 million as Ineos
Quattro intends to use EUR300 million in available cash to fund
part of the deferred contribution in 1H21.

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.

INEOS QUATTRO: Moody's Downgrades CFR to Ba3, Outlook Negative
--------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of INEOS Quattro Holdings Ltd ("INEOS Quattro", formerly
known as INEOS Styrolution Holding Limited) to Ba3 from Ba2.
Moody's has also downgraded INEOS Quattro's probability of default
rating to Ba3-PD from Ba2-PD. The agency further confirmed at Ba2
ratings assigned to INEOS Styrolution Group GmbH's and INEOS
Styrolution US Holding LLC's senior secured Term Loan B facilities
due January 2027, as well as the Ba2 rating assigned to the EUR600
million senior secured notes due January 2027 issued by INEOS
Styrolution Group GmbH. Further, Moody's assigned a rating of Ba2
to the senior secured term loan B currently being marketed by INEOS
Quattro, as well as the revolving credit facility and term loan A
facilities. The rating outlook is assigned negative for INEOS US
Petrochem LLC and changed to Negative from Rating Under Review for
INEOS Quattro Holdings Ltd, INEOS 226 Limited, INEOS Styrolution
Group GmbH and Ineos Styrolution US Holding LLC. This rating action
concludes Moody's review for downgrade initiated on July 1, 2020 of
INEOS Quattro's ratings following the company's planned acquisition
of the petrochemical assets of BP p.l.c. (A1 negative).

On December 31, 2020, INEOS Quattro (formerly INEOS Styrolution)
completed its acquisition of INOVYN, a sister company with common
ownership, as well as its acquisition of certain assets of BP
p.l.c. (BP, A1 negative). Upon completion of the refinancing
contemplated in connection with this transaction, Moody's expects
to withdraw all ratings and the outlooks of INOVYN Limited and its
subsidiaries. The transaction was originally announced in June 2020
including a purchase consideration of $5 billion.

RATINGS RATIONALE

The Ba3 corporate family rating reflects the large size and scope
of INEOS Quattro with top market positions globally in a variety of
chemical products, its diverse product lines and end markets, a
track record of successful acquisition integration by the INEOS
Group coupled with a history of consistently exceeding initial
synergy expectations. The rating further considers the company's
publicly stated financial policy and Moody's expectations of
moderating leverage -- particularly if the recent recovery in
trading is sustained.

Counterbalancing these strengths, the rating also incorporates
significant uncertainty related to the integration of the legacy
and acquired businesses that have limited vertical integration,
material underperformance in the aromatics business in the wake of
coronavirus, expectations of $150 million in synergies (primarily
fixed costs) which are yet to be realized, as well as a history of
significant risk appetite across the broader INEOS Group and the
limited available disclosure regarding the larger INEOS Group
outside of the rated entities.

The transaction will create a globally scaled company with
attractive market positions in a number of sectors, as well as
provide a measure of backward integration. The new entity will
benefit from the global leadership positions in styrenics including
polystyrene, ABS and specialties, PVC and caustic soda, as well as
paraxylene, PTA and acetic acid. The combined company generated pro
forma revenues of EUR15 billion and EBITDA of EUR1.9 billion in
2019. With 50 production facilities in 19 countries and over 5,000
customers, the merged company is positioned to be among the larger
players in the industry. In addition, Styrolution's production of
styrene monomer will benefit from access to benzene from BP's
aromatics business.

The combined entity will further benefit from geographic and
product diversity, good safety track record and flexible cost
structure. In 2019, EMEA contributed about half of pro-forma EBITDA
while US and Asia each contributed about a quarter to the combined
business. The company's end markets include electronics,
healthcare, automotive, household, construction and packaging, as
well as industrial applications ranging from coatings to textiles
which makes the overall business relatively resilient. Positively,
there has been improvement in the automotive sector demand in the
second half of 2020; however, some of the textile applications have
weakened which negatively impacted the aromatics business.

Both Styrolution and INOVYN have long-serving and experienced
management with a mostly positive track record of integrating
acquisitions and delivering on synergy targets which bodes well for
the proposed transaction and mitigates a measure of execution risk.
Still, recent weakness in the performance of aromatics business
will require close attention from INEOS Quattro's management. The
company indicated that it expected to achieve $150 million of
primarily fixed cost synergies and Moody's views these as a
realistic target.

Following weakened performance in the second quarter of 2020 owing
to coronavirus pandemic, the chemical industry has demonstrated a
measure of recovery in the second half of 2020 which Moody's
expects to continue into 2021. INEOS Styrolution reported a slight
increase in both its historical cost and replacement cost EBITDA in
the third quarter of 2020 driven by strong polystyrene and ABS
demand, although slightly offset by softer demand for styrene.
INOVYN reported strong demand for GP-PVC counterbalanced by
weakness in caustic soda pricing leading to only a slight EBITDA
decline for the quarter. Moody's understands that both INEOS
Styrolution and INOVYN have continued to achieve strong performance
through the end of 2020 and expect to post robust results in the
fourth quarter. Conversely, the performance of BP's aromatics
assets lagged owing to the reduced demand for fibre amid global
pandemic and widespread lockdowns. Acetyls' good performance was
buoyed by good demand from Asia.

Whilst Moody's expects INEOS Quattro to achieve a measure of
de-leveraging over the next 12-24 months as the industry recovers
and synergies are realized such that its gross leverage measured as
debt/EBITDA remains sustainable below 4.5x (including Moody's
standard adjustments), the rating agency calculates pro-forma
Moody's adjusted leverage, excluding synergies, as at year end 2020
to be in excess of 5x which it considers high for the rating
category. Positively, the company is expected to generate strong
operating cash flow which should help deleveraging, although the
business also has material capital expenditure requirements that
will need to be funded. INEOS Quattro has a clearly stated
financial policy of maintaining net leverage below 3.0x through the
cycle. Whilst Moody's expects the combined company to follow this
policy and manage its dividend distributions accordingly, it also
notes that rated INEOS entities have paid higher dividends in the
past 12-18 months than historically.

ESG Considerations

Soil, water and air pollution regulations continue to represent the
key environmental risks to the chemical sector, with petrochemical
companies particularly exposed to carbon emission regulations. The
packaging sector is the largest end market for polystyrene. This is
a sector that is under pressure from both regulations and changing
consumer behavior around single-use plastics.

Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety. Still, INEOS Quattro businesses were able to continue
operating owing to their vital importance to the value chain. Apart
from disruptions related to coronavirus, health and safety risks
will remain very high for the chemical sector due to the handling
of hazardous materials during production, storage and
transportation.

INEOS Styrolution and INOVYN Limited are private companies that are
part of the INEOS family of companies ultimately 100% owned by
James Ratcliffe (61.8%), Andrew Currie (19.2%) and John Reece
(19.0%), 95% of which is held through INEOS Limited. Despite their
private status, the companies benefit from better transparency and
more clearly defined financial policy than a number of
sponsor-owned peers, and Moody's expects the new entity to be
managed in the same manner. INEOS targets net leverage of below
3.0x through the cycle to which Moody's expects INEOS Quattro to
adhere.

Liquidity

Moody's expects the new group's liquidity to be adequate with over
EUR300 million of cash, an undrawn $300 million revolving credit
facility at closing and combined undrawn asset securitization
programs of almost EUR700 million. Moody's also anticipate the
company's operating cash flows will be sufficient to cover its
substantial planned capital expenditure program of slightly over
EUR2.0 billion over the next three years, although it could be
scaled back to some extent. The only near term maturities are the
securitization programs which expire during 2021, although Moody's
expects these to be extended and potentially upsized prior to
expiry. The new RCF and term loan A facilities contain a net
leverage covenant that tightens over time.

Structural Considerations

The senior secured debt of INEOS Quattro is rated Ba2 one notch
above its corporate family rating of Ba3 in line with Moody's Loss
Given Default model assuming a standard 50% recovery rate. The
senior secured instruments are pari passu and benefit from
subsidiary guarantees comprising 85% of EBITDA. The collateral
includes substantially all assets of the company including cash,
bank accounts, inventories and PP&E but excluding receivables that
are pledged to asset securitization programs.

RATING OUTLOOK

The negative rating outlook reflects the high leverage for the
rating category, the uncertain macroeconomic climate and the
execution risk that INEOS Quattro will successfully integrate its
acquired businesses and achieve or exceed its target synergies
while gradually reducing leverage towards its stated financial
policy target. The rating could be stabilized if Moody's-adjusted
leverage moves sustainably towards or below 4.5x and the
integration of the businesses proceeds as planned.

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

Whilst unlikely in the near term, positive rating pressure would
occur from successful integration of the acquired businesses,
achieving synergy targets and reducing leverage to well below 4.0x
on a sustained basis while generating positive free cash-flow and
maintaining good liquidity at all times.

Conversely, negative rating pressure could occur from failure to
integrate the businesses and realized synergies as outlined such
that leverage remains above 4.5x on a sustained basis. Any material
deterioration in liquidity or dividend payments could also cause
negative rating pressure.

LIST OF AFFECTED RATINGS

Assignments:

Issuer: INEOS 226 Limited

BACKED Senior Secured Bank Credit Facility, Assigned Ba2

Issuer: INEOS US Petrochem LLC

BACKED Senior Secured Bank Credit Facility, Assigned Ba2

Confirmations, previously placed on review for downgrade:

Issuer: INEOS Styrolution Group GmbH

Senior Secured Bank Credit Facility, Confirmed at Ba2

Senior Secured Regular Bond/Debenture, Confirmed at Ba2

Issuer: Ineos Styrolution US Holding LLC

Senior Secured Bank Credit Facility, Confirmed at Ba2

Downgrades, previously placed on review for downgrade::

Issuer: INEOS Quattro Holdings Ltd

Corporate Family Rating, Downgraded to Ba3 from Ba2

Probability of Default Rating, Downgraded to Ba3-PD from Ba2-PD

Outlook Actions:

Issuer: INEOS Quattro Holdings Ltd

Outlook, Changed To Negative From Rating Under Review

Issuer: INEOS 226 Limited

Outlook, Assigned Negative

Issuer: INEOS Styrolution Group GmbH

Outlook, Changed To Negative From Rating Under Review

Issuer: Ineos Styrolution US Holding LLC

Outlook, Changed To Negative From Rating Under Review

Issuer: INEOS US Petrochem LLC

Outlook, Assigned Negative

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Chemical
Industry published in March 2019.

COMPANY PROFILE

INEOS Quattro Holdings Limited is an indirect wholly-owned
subsidiary of INEOS AG formed in January 2021 through a merger of
INEOS Styrolution Holdings Limited and INOVYN together with
aromatics and acetyls petrochemical assets acquired from BP plc.
INEOS Quattro is a globally diversified chemical company with
leadership market positions in a wide range of chemicals with broad
market applications such as polystyrene, vinyls and caustic soda,
paraxylene, PTA, acetic acid and acetate derivatives. On a
pro-forma basis, businesses comprising INEOS Quattro generated
revenues of EUR15 billion and EBITDA of EUR1.9 billion in 2019.

MARB BONDCO: Fitch Assigns BB Rating to USD1BB Sr. Unsec. Notes
---------------------------------------------------------------
Fitch Ratings assigned a 'BB' rating to the proposed issuance of
global notes of about USD1 billion by MARB BondCo PLC, a wholly
owned subsidiary of Marfrig Global Foods S.A. (Marfrig). The
proposed senior unsecured global notes will mature in 2028. The
notes will be unconditionally and irrevocably guaranteed by Marfrig
Global Foods S.A., Marfrig Holdings (Europe) B.V., Marfrig Overseas
Limited and NBM US Holdings, Inc. Proceeds will be used to
refinance existing debt (including existing bonds).

KEY RATING DRIVERS

Robust Business Position: Marfrig's ratings incorporate the
company's strong market position and geographic diversification in
the volatile protein commodity industry. The company is a pure beef
player with a processing capacity of 30,100 head of cattle per day.
Marfrig owns about 82% of National Beef, the fourth-largest beef
processor in the United States with approximately 14% of the fed
steer and heifer processing capacity in the U.S. (over 3.7 million
head/year). In South America, Marfrig is one of the region's
leading beef producers, with a primary processing capacity of more
than 17,000 heads of cattle per day and an annual production
capacity of 122,000 tons of beef patties.

Strong Capital Structure: Fitch expects Marfrig's adjusted net
debt/EBITDA ratio to be 2x (around 2.5x range in 2021) and gross
leverage to be 3.1x in 2020. Fitch projects that Marfrig's EBITDA
will grow to BRL9.3 billion in 2020 from BRL4.9 billion in 2019,
and that it will generate about BRL2.9 billion of FCF (including
dividends paid to minority shareholders in National Beef). 2020 was
a strong year for the company due to high cattle availability in
the U.S. and capacity constraints. Demand is expected to continue
to be strong in 2021, however, prices for cattle in the U.S. have
risen in the past few months as capacity constraints ease. The
confluence of these factors should result in strong margins in
2021, albeit below 2020's record levels.

Geographical Diversification: Marfrig's exposure to the volatile
beef segment of the protein sector is partially mitigated by its
geographic diversification into the two largest beef producing
markets. Fitch estimates that National Beef represented about 80%
of the group's EBITDA during 2020 with the remaining coming from
the company's South American operations. Sales from National Beef
are primarily made in the U.S., which reduces the company's
exposure to risks related to trade tariffs, quotas and bans.
Exports represented 62% of South American revenues, of which about
50% come from shipments to China and Hong Kong. The company has 13
accredited plants for exporting to China. Marfrig's geographic
diversification also helps to decrease risks related to disease,
cattle cycles and currency fluctuation. This geographical
diversification enables the groups to mitigate cattle cycles,
sanitary, social, deforestation in the Amazon Biome and other
environmental risks due to the complexity in the monitoring of the
supply chain.

Favorable Beef Demand: Marfrig's competitive advantages stem from
its large scale of operations, access to exports markets from
Brazil and the U.S., and long-term relationships with farmers,
customers and distributors. Global beef fundamentals are expected
to remain positive in the next couple of years for South American
and U.S. producers due to increased demand and good cattle
availability. U.S. beef production is forecast to be flat in 2021,
according to the USDA. In exports, South America is poised to
remain a top supplier to Asia as pork production will be hindered
by disease issues.

DERIVATION SUMMARY

Marfrig's ratings reflect its solid business profile and geographic
diversification as a pure play in the beef industry with a large
presence in South America (notably Brazil) and in the U.S. with
National Beef. Marfrig is well positioned to compete in the global
protein industry due to its size and geographic diversification.
The business' size compares favorably with its regional peer
Minerva S.A. (BB/Stable), which is mainly a beef processor in South
America. JBS S.A. (BB+/Stable) and Tyson Foods (BBB/Negative) enjoy
a higher level of scale of operations, stronger FCF, and higher
product and geographical diversification than Marfrig.

KEY ASSUMPTIONS

-- Sales are driven by better prices and strong exports markets
    as well as the lower Real against the U.S. dollar;

-- Adjusted EBITDA of about BRL9.3 billion in 2020;

-- Net leverage of about 2x as of YE 2020.

RATING SENSITIVITIES

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

--- Sustainable and positive FCF;

--- Substantial decrease in gross and net leverage to below 3.5x
     and 2.5x, respectively, on a sustained basis.

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

--- Negative FCF on a sustained basis;

--- Gross leverage above 4.5x and net leverage above 3.5x on a
     sustainable basis.

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

Adequate Liquidity: As of Sept. 30, 2020, Marfrig had BRL9.7
billion of cash and cash equivalents compared with BRL4.6 billion
of short-term debt. The short-term debt is mainly related to trade
finance lines. Marfrig's average debt term stood at 4.1 years and
its long-term liabilities corresponded to 83% of the total debt.

ESG CONSIDERATIONS

Marfrig Global Foods S.A.: Governance Structure: 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.

VIRGIN ATLANTIC: Nears US$230MM Sale, Leaseback Deal for 2 Planes
-----------------------------------------------------------------
Sarah Young at Reuters reports that Virgin Atlantic, Richard
Branson's airline which has been hammered by the pandemic, is close
to finalizing a deal to raise just over US$230 million from two
planes, enabling it to repay a loan taken on as part of its rescue
deal last year.

COVID-19 restrictions stopped significant levels of travel on
Virgin's main UK to U.S. routes during 2020, bringing the airline
to its knees, Reuters discloses.  To survive the crisis it shed
almost half of its 10,000 workforce and underwent a "solvent
recapitalisation" last September, Reuters recounts.

The latest phase of that plan is the sale and leaseback of two
planes with Griffin Global Asset Management which a source close to
the company said was on schedule to complete this week, and would
raise just over US$230 million for the airline, Reuters notes.

During the crisis, Virgin, which is 51% owned by Richard Branson's
Virgin Group and 49% by the U.S.'s Delta Air Lines Inc, has turned
to cargo-only flying to boost its finances, with annual revenues in
that part of the group up 49% on 2019, Reuters relays.

According to Reuters, the airline said in its statement on Jan. 11
that it was seeing the gradual return of customer demand for travel
in 2021, and would fly about 30% of its capacity in January, but
could need to take further action financially.




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

[*] AlixPartners Joins Dr. Karsten Lafrenz as Managing Director
---------------------------------------------------------------
AlixPartners, the global consulting firm, disclosed that Dr.
Karsten Lafrenz has joined as a Managing Director.  He will focus
on developing and delivering business transformation strategies for
the firm's turnaround and restructuring clients in Germany,
Austria, and Switzerland as well as the wider EMEA region.

Dr. Lafrenz brings more than 20 years of global experience as an
advisor and Chief Transformation Officer across a wide range of
industry sectors with particular experience in consumer industries.
He joins AlixPartners from McKinsey & Co., where he was a Partner
and leader of the consumer service line of McKinsey Transformation
in EMEA. Previously, Dr. Lafrenz was a Partner in the Restructuring
& Corporate Performance Competence Center at Roland Berger Strategy
Consultants.  He holds a Ph.D. from Europa-University Viadrina in
Frankfurt/Oder, a Diplom-Kaufmann degree from the University of
Muenster, and a Master of Science in Finance from Strathclyde
University in Glasgow, UK.

"At a time when the consumer industry is enveloped in profound
disruption due to consumers' continually shifting priorities and
preferences, Dr. Lafrenz's extensive experience will be a
significant addition to our existing capabilities in this key
sector," said Simon Freakley, CEO of AlixPartners.  "I am very
pleased to welcome Dr. Lafrenz to AlixPartners."

                        About AlixPartners

AlixPartners -- http://www.alixpartners.com-- is a results-driven
global consulting firm that specializes in helping businesses
successfully address their most complex and critical challenges.
Its clients include companies, corporate boards, law firms,
investment banks, private equity firms, and others. Founded in
1981, AlixPartners is headquartered in New York, and has offices
AlixPartners General in more than 20 cities around the world.



                           *********


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

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