---

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

                          E U R O P E

          Friday, January 22, 2021, Vol. 22, No. 11

                           Headlines



G E R M A N Y

COHERENT HOLDING: Moody's Reviews Ba1 CFR for Downgrade
INEOS STYROLUTION: Moody's Lowers Sr. Secured Term Loan to Ba3
IREL BIDCO: Moody's Completes Review, Retains B2 Rating
PYROLYX AG: Files for Insolvency in Germany
THYSSENKRUPP AG: S&P Alters Outlook to Negative, Affirms 'BB-' ICR

ZIM FLUGSITZ: Exits Insolvency Proceedings


G R E E C E

INTRALOT SA: Seeks to Restructure EUR750 Million of Bonds


I T A L Y

MONTE DEI PASCHI: Moody's Rates Jr. Unsec. MTN Program '(P)Caa1'


L U X E M B O U R G

DIAVERUM HOLDING: Moody's Completes Review, Retains B3 CFR


N E T H E R L A N D S

INTERNATIONAL PARK: Moody's Completes Review, Retains Caa1 CFR
SIGNATURE FOODS: Moody's Assigns First Time B2 Corp. Family Rating
STEINHOFF INT'L: Provides Update on Proposed Global Settlement


N O R W A Y

BORR DRILLING: Creditors Back Liquidity Improvement Plan
NORWEGIAN AIR: Norwegian Government Supports Survival Plan


R U S S I A

BANK DOM.RF: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Positive
CREDIT BANK: Fitch Assigns BB Rating on EUR600MM Unsec. Eurobond
DME AIRPORT: Fitch Assigns BB(EXP) Rating on USD Notes, Outlook Neg
DME AIRPORT: Moody's Assigns Ba1 Rating to New Unsec. USD Notes
EXPOBANK LLC: Fitch Alters Outlook on BB- IDRs to Stable

UNITED CONFECTIONERS: Fitch Affirms 'B' LT IDR, Outlook Stable


S P A I N

ACI AIRPORT: S&P Lowers Debt Rating to 'CCC' on Eroding Liquidity
AUTOPISTA DEL SOL: S&P Downgrades ICR to 'BB+' on Weaker Traffic
GRUPO COOPERATIVO: Fitch Withdraws Ratings for Commercial Purposes


S W E D E N

[*] SWEDEN: 2020 Bankruptcy Level on Par with 2019, UC Says


U K R A I N E

KERNEL HOLDING: Court Rejects Stadnyk's Bankruptcy Petition


U N I T E D   K I N G D O M

GLOBAL TRADING: Placed Into Provisional Liquidation
INEOS QUATTRO: S&P Lowers Senior Secured Debt Rating to 'BB'


X X X X X X X X

[*] BOOK REVIEW: Mentor X

                           - - - - -


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

COHERENT HOLDING: Moody's Reviews Ba1 CFR for Downgrade
-------------------------------------------------------
Moody's Investors Service placed the credit ratings of Coherent
Holding GmbH on review for downgrade, including the Ba1 Corporate
Family Rating and the Ba1 senior secured credit facilities rating.
This rating action follows Lumentum Holdings Inc.'s and Coherent's
announcement that they have entered into an agreement under which
Lumentum will acquire Coherent in a cash and stock transaction
valued at $5.7 billion. The transaction is expected to close in the
second half of calendar year 2021, subject to approval by
Lumentum's and Coherent's stockholders, receipt of regulatory
approvals and other customary closing conditions.

Ratings placed on review for downgrade:

Issuer: Coherent Holding GmbH

Corporate Family Rating, Placed on Review for Downgrade, currently
Ba1

Probability of Default Rating, Placed on Review for Downgrade,
currently Ba1-PD

Senior Secured Bank Credit Facility, Placed on Review for
Downgrade, currently Ba1 (LGD4)

Outlook Actions:

Issuer: Coherent Holding GmbH

Outlook, Changed To Rating Under Review From Stable

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

Moody's review of the transaction will focus on the likelihood of
the transaction closing, pro forma combined corporate structure and
debt capital structure, combined company's pro forma financial
policy, and deleveraging plans among other factors. Lumentum has
publicly stated its intention to finance the cash consideration
with the combined company's cash balances and a $2.1 billion new
Term Loan B, and has publicly indicated an expectation of resulting
total leverage of about 4x. To the extent that all of the rated
debt of Coherent is repaid as part of the transaction, Moody's
would expect to withdraw Coherent's ratings following the closing.

Though the SGL-1 speculative grade liquidity rating is unchanged at
this time, the utilization of existing cash balances for payment of
acquisition cash consideration and the change in capital structure
could also lead to a downgrade in the Speculative Grade Liquidity
rating upon closing of the acquisition.

Coherent's existing credit profile is supported by leading product
capabilities in the laser industry, diversification across end
markets and product categories, and positive secular trends driving
further adoption of laser systems across a variety of applications.
The existing credit profile is also supported by strong cash
liquidity and solid free cash flow generation. The credit profile
is constrained by cyclical end markets resulting in substantial
volatility of financial performance, and by current elevated total
leverage due to organic light emitting diode related demand at a
cyclical trough.

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

With revenues of $1.2 billion in fiscal year ended September 2020,
Coherent is one of the leading global providers of lasers,
laser-based technologies and laser-based system solutions in a
broad range of commercial, industrial and scientific applications.


INEOS STYROLUTION: Moody's Lowers Sr. Secured Term Loan to Ba3
--------------------------------------------------------------
Moody's Investors Service downgraded to Ba3 from Ba2 the 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 rating assigned to the EUR600 million
guaranteed senior secured notes due January 2027 issued by INEOS
Styrolution Group GmbH. Further, Moody's downgraded to Ba3 from Ba2
the rating on the guaranteed senior secured Term Loan B currently
being marketed by INEOS US Petrochem LLC and INEOS 226 Limited, as
well as the guaranteed senior secured revolving credit facility and
guaranteed senior secured Term Loan A issued by INEOS 226 Limited
and INEOS US Petrochem LLC. In addition, Moody's downgraded to Ba3
from Ba2 guaranteed senior secured notes due 2026 currently being
marketed by INEOS Quattro Finance 2 Plc. Moody's also affirmed the
corporate family rating of INEOS Quattro Holdings Ltd (INEOS
Quattro) at Ba3 and the probability of default rating at Ba3-PD, as
well as the B2 rating of guaranteed senior unsecured notes due 2026
currently being marketed by INEOS Quattro Finance 1 Plc. The rating
outlook remains negative for all ratings.

This rating action reflects INEOS Quattro's revision [1] of the
transaction such that the total amount of secured debt increased by
EUR500 million while the unsecured debt was reduced by the same
amount.

RATINGS RATIONALE

The downgrade of the senior secured ratings reflects the increased
amount of secured debt and reduced support from the decreased
amount of unsecured debt in the capital structure. Given the
relative sizes of the two classes of debt, the support provided by
the unsecured debt was no longer sufficient to justify a one-notch
boost in the secured debt relative to the corporate family rating,
in line with Moody's Loss Given Default (LGD) model.

The Ba3 corporate family rating reflects the large size and scope
of INEOS Quattro Holdings Ltd 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.

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 Holdings Ltd 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.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

INEOS Quattro Holdings Ltd is an indirect wholly-owned subsidiary
of INEOS AG formed in January 2021 through a merger of INEOS
Styrolution Holdings Limited and INOVYN Limited together with
aromatics and acetyls petrochemical assets acquired from BP p.l.c.
(A1, Negative). INEOS Quattro Holdings Ltd 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 Holdings Ltd generated revenues of EUR15
billion and EBITDA of EUR1.9 billion in 2019.


IREL BIDCO: Moody's Completes Review, Retains B2 Rating
-------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Irel Bidco SARL and other ratings that are associated
with the same analytical unit. The review was conducted through a
portfolio review discussion held on January 15, 2021 in which
Moody's reassessed the appropriateness of the ratings in the
context of the relevant principal methodology(ies), recent
developments, and a comparison of the financial and operating
profile to similarly rated peers. The review did not involve a
rating committee. Since January 1, 2019, Moody's practice has been
to issue a press release following each periodic review to announce
its completion.

This publication does not announce a credit rating action and is
not an indication of whether or not a credit rating action is
likely in the near future. Credit ratings and outlook/review status
cannot be changed in a portfolio review and hence are not impacted
by this announcement.

Key rating considerations.

Irel Bidco SARL (IFCO or the "company")'s B2 rating reflects the
company's position as one of the largest providers of reusable
packaging containers globally with a relatively diversified
footprint in Europe and a gradual but supportive trend away from
paper-based packaging to RPCs. However, the B2 rating remains
constrained by IFCO's high Moody's adjusted leverage, the
relatively focused nature of its operations, a degree of
concentration on Europe and with some retailers, the substantial
capital requirements with a currently narrow supplier base and the
risk that rising cost such as handling fees in Europe could weigh
on profitability.

The principal methodology used for this review was Business and
Consumer Service Industry published in October 2016.


PYROLYX AG: Files for Insolvency in Germany
-------------------------------------------
TyrePress reports that recycled carbon black company Pyrolyx AG has
cancelled the extraordinary general meeting it had scheduled for
Jan. 15, 2021, and has done so as the company has filed to open
insolvency proceedings.

The case (number 1507 IN 2125/20) was filed with the Munich
District Court on Dec. 4, 2020, the report says.

Pyrolyx AG -- https://pyrolyx.com/ -- is engaged in the recovery of
rCB (Recovered Carbon Black) from used tires. rCB is used both in
the manufacture of new tires and in the plastics, technical rubber
and masterbatch industries.


THYSSENKRUPP AG: S&P Alters Outlook to Negative, Affirms 'BB-' ICR
------------------------------------------------------------------
S&P Global Ratings affirmed the ratings on German diversified
industrial conglomerate thyssenkrupp AG (tk) and its issues at
'BB-' but revised the outlook to negative from stable.

The negative outlook reflects the risk of a downgrade in the next
12 months if the group is not able to materially improve its
underlying FOCF generation towards break-even levels over the next
24 months.

Material FOCF and profitability improvements are keys to sustain
the rating.   Recovery in demand for steel and improving prices
while input costs remain flattish as well as the improving
sentiment in the automotive industry will support the recovery of
the operating performance of the group in FY2021. S&P said, "We
expect now revenues to increase by about 11% year-on-year and
EBITDA margins to recover to about 2%, compared to our previous
expectation of about 6% revenue growth and 1%-2% for EBITDA
margins. For FY2022 we estimate a further revenue increase of about
3%-4% supported by GDP growth and EBITDA margin recovery to about
4%-5% supported by the unfolding benefits of its implemented
restructuring but also higher volumes."

S&P said, "Nevertheless, we believe FOCF will remain significantly
negative partly because of higher capital expenditures and
restructuring costs, and we continue to view tk's inability to
generate positive FOCF as a key rating constraint. For FY2021, we
expect FOCF to reach negative EUR800 million-negative EUR900
million and for FY2022 around negative EUR600 million, following a
cash burn of EUR5.3 billion in FY2020. However, to become FOCF
positive we estimate the company needs an EBITDA margin level of
more than 6%."

The cyclical recovery in the steel market supports reduction of
cash burn in the group.   Over the next 12 months the recovery in
free cash flow generation depends largely on the cyclical recovery
in steel and automotive demand. S&P said, "Compared to our previous
base case, the cash outflow for the group will be about EUR500
million less over the next 24 months, mainly caused by the cycle
rebound in the steel market. The lower cash burn should support the
recovery in credit metrics and provide more funds to reposition the
group to return to growth, higher profitability, and address its
cost base. For FY2021 we now expect funds from operations (FFO) to
debt of about 20%, improving to comfortably above 30% in FY2022,
while debt to EBITDA stands at 3x to 4x in FY2021 and about 2x in
FY2022. The strong balance sheet following the sale of the elevator
business continues to support the rating. As of Sept. 30, 2020, tk
reported a net financial cash position of EUR5.1 billion, which
corresponds to S&P Global Ratings-adjusted debt of EUR2.6 billion
(the difference primarily represents our adjustment for unfunded
pension obligations of EUR7.0 billion)."

The future shape, scope, and balance sheet of the group is still
quite uncertain.  Tk has a wide range of strategic options on the
table. In particular, the final strategy for its challenged and
capital expenditures (capex)-intense steel operations would have an
material impact on the group's profile, given the steel operations'
weight within the group, high restructuring needs, high fixed cost
base, high pension obligations, and high sensitivity to the
economy, translating into volatile cash flows and profitability for
the group. S&P said, "We note that tk has held talks with various
steel peers and with the local and federal government on industrial
consolidation, and even a spin-off could be an option. We expect to
get more clarity in spring 2021 when management plans to provide an
update on its steel strategy. For now, we use a going-concern
approach in our analysis and have not included any material sale of
operations. However, we would expect material progress on the
execution of its non-core assets (its "multi tracks" portfolio)
over the upcoming 24 months, which in turn could result in more
structural improvements in profitability."

Cash balance of more than EUR10 billion is providing ample liquid
resources.   S&P estimates the group will have more than EUR10
billion in cash and cash equivalence available after redemption in
December 2020 of a EUR850 million 2.75% note originally due in
March 2021. Given the ample liquidity sources and manageable debt
maturities upcoming, liquidity remains strong.

Management remains committed to reducing debt on the balance sheet,
restructuring the business, and improving the credit rating.   S&P
said, "We continue to believe the group will use the majority of
the proceeds to pay back its financial debt at maturity and to fund
a contractual trust agreement (CTA) to cover its pension
obligations. We therefore assume management will not take any
shareholder-friendly measures such as paying out an extraordinary
dividend or initiating a share buyback program. We also expect
management will not reinitiate a regular dividend before FOCF
generation capacity is structurally positive."

The negative outlook reflects the execution risk on its prolonged
restructuring plan to improve the cost structure and free cash flow
generation on a structural basis over the next 24 months.

Downside scenario

S&P could lower the ratings in the next 12 months if the group is
not able to materially improve its underlying FOCF generation
towards break-even levels over the next 24 months as well as its
EBITDA margins to at least 4.5% in FY2022. This scenario could
unfold if

-- The cost cutting is less effective then currently envisaged;

-- The group is unable to dispose its non-core assets; or

-- Its end-markets--in particular automotive or steel
operations--would become depressed again.

Upside scenario

S&P could revise the outlook to stable if the group's operating
performance materially recovers, helped by favorable demand trends
in key end markets, coupled with the benefits from its
restructuring efforts. In particular, EBITDA margins of about 6%
(based on the group's current scope) coupled with break-even FOCF
prospects as well as adjusted FFO to debt of at least 20%, could
support such an outlook revision.


ZIM FLUGSITZ: Exits Insolvency Proceedings
------------------------------------------
FlightGlobal reports that Zim Flugsitz has emerged from legal
insolvency proceedings after a restructuring plan was unanimously
approved by creditors in December.

The Marktdorf-based company had filed for debtor-in-possession
proceedings in July 2020 following a sharp sales decline amid the
pandemic.

Insolvency proceedings were terminated by a district court in
Konstanz on January 7, said ZIm, noting that it is now free of
restrictions imposed by insolvency law, according to FlightGlobal.

In December, Zim managing director Heiko Fricke said the exit from
insolvency would be "an important step" because it would "allow us
to once again participate in tenders on an equal footing with other
players in this market," FlightGlobal relates.

Citing the restructuring and "recent new contracts with major
airlines", Zim now asserts that it is "a resilient company" that
could be "successfully released from the self-administration
process due to the robust restructuring plan" endorsed by creditors
on December 15.

FlightGlobal says insolvency monitor Martin Mucha --
m.mucha@grub-brugger.de -- from law firm Grub Brugger, has been
tasked with ensuring that the plan is "successfully fulfilled".

Restructuring measures were completed last year, said Zim, which
put short-time working arrangements in place.

All 130 jobs at its Marktdorf headquarters were saved, but
"considerable cost-cutting" and efficiency improvements were
implemented and contracts with customers negotiated.

At the company's second facility in Schwerin, staff numbers were
reduced from 68 to 20, the report notes. Production there will be
discontinued, with the site now focused on repairs, services and
development support at a new, smaller facility.

Mr. Fricke stated in December: "We have implemented comprehensive
restructuring measures over recent months and adapted our capacity
in line with the effects of the coronavirus crisis on the aviation
industry. Our company is now well prepared for the future,"
FlightGlobal relays.

Zim predicts that retrofit programmes will become "increasingly
important in the coming years" and said it has continued product
technology advancements despite the restructuring.

A new generation of premium-economy seat will "probably be
introduced to the market in mid-2021", it adds.

ZIM Flugsitz is an aircraft seating manufacturer headquartered in
Markdorf, Germany. The company's portfolio covers basic Economy
Class seating and fully IFE designed options for Premium Economy
Class seating. In March 2020, AURELIUS Equity Opportunities
acquired Zim Flugsitz.




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

INTRALOT SA: Seeks to Restructure EUR750 Million of Bonds
---------------------------------------------------------
Antonio Vanuzzo and Luca Casiraghi at Bloomberg News report that
Intralot SA could cede part of its equity to bondholders as it
seeks to restructure EUR750 million (US$925 million) of bonds.

The Greek gaming company, which saw revenue plummet in the first
nine months of 2020, and creditors are discussing a plan that would
slash Intralot's debt load and allow the firm to repay part of
obligations in cash, Bloomberg relays, citing people familiar with
the matter, who asked not to be identified because the talks are
private.  

The people said in exchange, creditors would get a stake in the
firm and a new bond that's secured on assets, Bloomberg relates.

The negotiations are ongoing and there's no certainty a deal will
be agreed, Bloomberg discloses.

The operator of lotteries and sports betting services from
Argentina to Bulgaria has been hit hard by both contract
renegotiations in some key countries and an industry-wide slump
triggered by widespread lockdowns due to the Covid-19 pandemic,
Bloomberg states.  It lost more than half of its revenue in the
first nine months of 2020, Bloomberg notes, citing to its latest
financial results published in December.

Management said at the time that restructuring talks with a group
representing about 60% of its bondholders were "at an advanced
stage", according to Bloomberg.  The securities are due September
2021 and September 2024, Bloomberg says.

Intralot is a Greek company that supplies integrated gambling,
transaction processing systems, game content, sports betting
management and interactive gambling services, to state-licensed
gaming organizations worldwide.




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

MONTE DEI PASCHI: Moody's Rates Jr. Unsec. MTN Program '(P)Caa1'
----------------------------------------------------------------
Moody's Investors Service assigned a (P)Caa1 rating to the senior
non-preferred debt programme of Banca Monte dei Paschi di Siena
S.p.A. (MPS) and placed it under review for upgrade.

Junior senior unsecured notes (also commonly referred to as senior
non-preferred) will rank junior to senior preferred notes and
senior to dated subordinated notes.

RATINGS RATIONALE

The (P)Caa1 rating assigned to MPS' junior senior unsecured debt
programme reflects (1) the bank's b3 standalone Baseline Credit
Assessment; (2) high loss-given-failure for junior senior unsecured
instruments, which results in a one-notch downward adjustment from
the BCA; and (3) a low probability of government support, which
results in no uplift.

According to Italian legislation, the notes to be issued under the
programme have to be explicitly designated as senior unsecured
non-preferred in the documentation. They will thereby rank junior
to other senior unsecured obligations, including senior unsecured
debt, and senior to subordinated debt in both resolution and
insolvency.

Given that the purpose of the junior senior unsecured notes is to
provide additional loss absorption and improve the ability of
authorities to resolve ailing banks, government support for these
instruments is unlikely, in Moody's view. The rating agency
therefore attributes a low probability of government support to
MPS' junior senior unsecured notes, which does not result in any
further uplift to the rating.

MPS' standalone BCA of b3 reflects its weak capital and
profitability, and reduced asset risk. It also reflects the bank's
adequate liquidity and Moody's view that its capitalisation remains
vulnerable to potential losses arising from a deterioration of the
Italian macroeconomic environment and pending litigation risks. The
BCA also includes a one-notch negative adjustment for Corporate
Behaviour to reflect the continued uncertainty surrounding the
state-owned bank's strategy.

The b3 BCA is under review for possible upgrade. The review was
initiated in July 2020, after the bank's announcement of an
agreement with state-owned Asset Management Company S.p.A. (AMCO)
for the transfer of around EUR8 billion gross problem loans, which
was completed in late 2020. The review for upgrade was extended in
December 2020 after the bank's announcement of a new capital plan
which in Moody's view, will bolster the creditworthiness of the
bank and facilitate its privatization in accordance with the
Italian government's commitment vis-a-vis the European Union.

MPS' junior senior unsecured programme ratings are under review for
upgrade, in line with the review for upgrade on MPS' standalone
BCA.

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

MPS' junior senior debt programme rating of (P)Caa1 would be
upgraded or downgraded together with any upgrade or downgrade of
MPS' BCA.

The standalone BCA of MPS could be upgraded if the bank were to
strengthen its capitalization with a low level of asset and
litigation risks.

A downgrade of MPS' BCA is unlikely given the review for upgrade,
however it could be downgraded if the bank failed to complete its
announced capital plan and/or was not sufficient to mitigate the
risk of breaching regulatory capital requirements.

The junior senior unsecured programme rating could also be upgraded
if MPS were to increase the current cushion of Tier 2 over the long
term or issue higher-than-expected amounts of junior senior
unsecured notes.

LIST OF ASSIGNED RATINGS

Issuer: Banca Monte dei Paschi di Siena S.p.A.

Assignments:

Junior Senior Unsecured Medium-Term Note Program, assigned
(P)Caa1; placed on review for upgrade

PRINCIPAL METHODOLOGY

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




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

DIAVERUM HOLDING: Moody's Completes Review, Retains B3 CFR
----------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Diaverum Holding S.a r.l. and other ratings that are
associated with the same analytical unit. The review was conducted
through a portfolio review discussion held on January 14, 2021 in
which Moody's reassessed the appropriateness of the ratings in the
context of the relevant principal methodology(ies), recent
developments, and a comparison of the financial and operating
profile to similarly rated peers. The review did not involve a
rating committee. Since January 1, 2019, Moody's practice has been
to issue a press release following each periodic review to announce
its completion.

This publication does not announce a credit rating action and is
not an indication of whether or not a credit rating action is
likely in the near future. Credit ratings and outlook/review status
cannot be changed in a portfolio review and hence are not impacted
by this announcement.

Key rating considerations.

Diaverum Holding S.a r.l.'s B3 Corporate Family Rating is supported
by the highly visible and recurring level of treatments with
generally positive underlying market volume growth trends
worldwide; the credit positive geographical diversification; the
high levels of profitability with market leading positions and a
stable revenue base; and Diaverum's longer term track record of
delivering and improving profitability in newly acquired clinics.
Conversely, the company's rating is constrained by its high
leverage; its sizeable exposure to jurisdictions with budgetary
and/or inflationary pressures as well as its exposure to Saudi
Arabia, with governance risks related to limited transparency on
fiscal policy and poor disclosure on the financial performance of
government-related entities; its increasing presence in developing
countries that can be subject to higher volatility in their
operating environments and exposure to local currency depreciation;
and aggressive financial policies focused on external growth.

The principal methodology used for this review was Business and
Consumer Service Industry published in October 2016.




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

INTERNATIONAL PARK: Moody's Completes Review, Retains Caa1 CFR
--------------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of International Park Holdings B.V. and other ratings that
are associated with the same analytical unit. The review was
conducted through a portfolio review discussion held on January 15,
2021 in which Moody's reassessed the appropriateness of the ratings
in the context of the relevant principal methodology(ies), recent
developments, and a comparison of the financial and operating
profile to similarly rated peers. The review did not involve a
rating committee. Since January 1, 2019, Moody's practice has been
to issue a press release following each periodic review to announce
its completion.

This publication does not announce a credit rating action and is
not an indication of whether or not a credit rating action is
likely in the near future. Credit ratings and outlook/review status
cannot be changed in a portfolio review and hence are not impacted
by this announcement.

Key rating considerations.

International Park Holding B.V.'s Caa1 corporate family rating
reflects its significant exposure to the coronavirus outbreak and
the extensive measures and restrictions taken to contain the virus.
More specifically, PortAventura's exposure to a single site
location in Spain and high seasonality makes it more vulnerable to
the current market environment. Moody's expects a gradual recovery
in attendance levels in 2021 but the timing and speed of the
recovery remain uncertain and subject to the development of
coronavirus pandemic. At the same time Moody's recognise the
extensive measures taken by the company to reduce the impact on its
earnings and liquidity. The rating also continues to be supported
by the company's established positioning as a European family
destination resort with a historical track record of growth and
high profitability.

The principal methodology used for this review was Business and
Consumer Service Industry published in October 2016.


SIGNATURE FOODS: Moody's Assigns First Time B2 Corp. Family Rating
------------------------------------------------------------------
Moody's Investors Service has assigned a first-time B2 corporate
family rating and a B2-PD probability of default rating to PHM SF
Dutch Bidco B.V. ("Signature Foods" or "the company"), the parent
company of Signature Foods Holding B.V., a leading producer of
chilled convenience food in the Benelux region. Concurrently,
Moody's has assigned B2 ratings to the EUR341 million senior
secured term loan B due 2028 and the EUR62 million senior secured
revolving credit facility due 2027, both to be borrowed by PHM SF
Dutch Bidco B.V. The outlook is stable.

PHM SF Dutch Bidco B.V. is a new holding company established as
part of the acquisition of Signature Foods by funds advised by
Pamplona Capital Management from IK Investment Partners.

"The B2 rating assigned to Signature Foods balances the limitations
of its business profile, including geographical concentration and
focus on niche product categories, its elevated leverage and risks
related to potential acquisitions against the company's leading
positions in its core markets, its strong product development
capabilities and its solid free cash flow generation capacity,"
says Igor Kartavov, a Moody's lead analyst for Signature Foods.
"Although the company has a multi-year track record of organic
growth, complemented by bolt-on acquisitions, and has been
resilient to the coronavirus pandemic, we believe that increasingly
mature product categories and potential changes in consumer
behavior may limit the pace of the company's future growth and
deleveraging," adds Mr. Kartavov.

RATINGS RATIONALE

The B2 CFR assigned to Signature Foods reflects (1) the company's
leading market positions in its niche product categories across the
Benelux region and Poland; (2) strong portfolio of locally
recognized brands and superior product development capabilities,
which allow to set premium prices and gradually gain market share;
(3) supportive market fundamentals, with a track record of growth
across the key product categories; (4) a track record of positive
free cash flow generation, which Moody's expects to continue,
supporting an adequate liquidity profile; and (5) resilience of the
company's business model to the coronavirus pandemic, owing to the
focus on food retail channel as well as strong brands.

The rating is, however, constrained by the company's (1) modest
scale, with pro forma revenue of €303 million and
management-adjusted EBITDA of €59 million in financial year 2020,
and its focus on niche product categories; (2) very limited
geographical diversification beyond the Benelux region, with around
60% of sales generated in the Netherlands and 30% in Belgium; (3)
increasingly maturing product categories, which could hamper
revenue growth prospects; (4) initially high leverage, which
Moody's expects to be slightly over 6.0x at closing and to decline
towards 5.5x in the following 12-18 months; and (5) high appetite
for acquisitions, which entails integration risks and potentially
slower deleveraging trajectory.

Moody's estimates that Signature Foods' Moody's-adjusted gross/debt
EBITDA as of March 2021 will be slightly over 6.0x, pro forma for
the new capital structure, which would be at the higher end of the
rating agency's expectation for a B2 CFR. The B2 rating assigned to
Signature Foods factors in Moody's expectation that the company
will be able to reduce its leverage towards 5.5x in the next 12-18
months. The company's growth strategy is primarily volume-driven,
with sales growth mainly stemming from expanding product range
under existing brands to increase the penetration and frequency of
buying, gaining market share from competitors, launching new brands
and expanding into adjacent product categories, and growing private
label partnerships. While these strategic pillars are supported by
the company's strong relationships with retailers and product
development capabilities, Signature Foods' product categories are
becoming increasingly mature, which could limit the pace of the
company's growth and deleveraging.

Moody's believes that Signature Foods' appetite for bolt-on
acquisitions remains high, which reduces visibility on its future
credit metrics and deleveraging trajectory to some extent. However,
the company has a positive track record in integrating bolt-on
acquisitions without a significant increase in its financial
leverage. Signature Foods' B2 rating incorporates Moody's
expectation that the company will continue pursuing a balanced
approach to acquisitions, that future transactions will not
materially increase its leverage on a pro forma basis, and that
integration-related risks and costs will be limited.

LIQUIDITY

Moody's expects that Signature Foods will have adequate liquidity
following the closing of the transaction, supported by an estimated
post-closing cash balance of EUR21 million and a EUR62 million RCF,
expected to be undrawn at closing, with ample headroom under the
springing covenant of senior secured net leverage not exceeding
9.5x, tested when the facility is more than 40% drawn. In addition,
Moody's expects Signature Foods to generate positive
Moody's-adjusted free cash flow of over EUR10 million in financial
year 2022 despite an uptick in its capital spending, and at least
EUR20 million per year thereafter. Assuming no RCF utilisation, the
company will have no material debt maturities until 2028, when its
term loan is due.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Signature Foods' rating takes into account corporate governance
considerations. Following the closing of the transaction, the
company will be controlled by private equity firm Pamplona Capital
Management, which, as is often the case in highly levered, private
equity sponsored deals, has a high tolerance for leverage and risk,
while governance is comparatively less transparent. This is partly
mitigated by the fact that the company's management will continue
to own a significant, although non-controlling, stake in the
company alongside the private equity sponsor. Signature Foods also
has a track record of growing via bolt-on acquisitions, which,
however, have not pushed the company's leverage significantly
higher on a pro forma basis so far. Moody's believes that the
company is likely to pursue further bolt-on acquisitions in the
future to complement its organic growth.

Moody's regards the continuing coronavirus pandemic as a social
risk under its ESG framework, given the substantial implications
for public health and safety. However, the broad food industry has
been relatively resilient to the pandemic so far. The coronavirus
pandemic has only had a moderate overall impact on Signature Foods,
as the drop in its sales via the foodservice channel on the back of
restaurants, bars and catering locations closures has largely been
offset by a pickup in retail sales. In April-December 2020, the
company's revenue and management-adjusted EBITDA increased by 1.4%
and 2.9% year-on-year, respectively, despite the social distancing
measures imposed by governments in response to the pandemic,
although these growth rates are lower than what the company
achieved in prior years. Moody's also notes that the second wave of
the pandemic is having a more negative impact on the company's
performance because of lower pickup in the retail channel, which
could translate into weaker performance in the first half of 2021.

The longer-term implications of the pandemic for Signature Foods'
product categories, such as a result of the growing popularity of
work-from-home arrangements and virtual social gatherings, and a
potential shift towards at-home eating, are difficult to forecast
at this point. This creates a risk that the company's sales and
earnings will grow slower than Moody's currently expects, resulting
in a flatter deleveraging trajectory.

STRUCTURAL CONSIDERATIONS

The B2 ratings assigned to the EUR341 million senior secured term
loan B and the EUR62 million senior secured RCF, both to be
borrowed by PHM SF Dutch Bidco B.V., are in line with the CFR,
reflecting the fact that these two instruments will rank pari passu
and will represent substantially all of the company's financial
debt at closing of the transaction. The term loan and the RCF will
benefit from pledges over the shares of the borrower and guarantors
as well as bank accounts and intragroup receivables and will be
guaranteed by the group's operating subsidiaries representing at
least 80% of the consolidated EBITDA. Moody's considers the
security package to be weak, in line with the rating agency's
approach for shares-only pledges.

Moody's notes that the capital structure will include a EUR87
million PIK facility to be borrowed by PHM SF Dutch Holdco B.V., an
entity outside of the restricted group. All interest on the PIK
facility will be capitalised, so that there will be no cash leakage
from the restricted group related to this facility. Based on the
information provided by the company, Moody's understands that the
proceeds from this facility will be downstreamed into the
restricted group in the form of equity.

The B2-PD PDR assigned to Signature Foods reflects Moody's
assumption of a 50% family recovery rate, given the weak security
package and the limited set of financial covenants comprising only
a springing covenant on the RCF, tested only when its utilisation
is above 40%.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's view that Signature Foods will
be able to gradually increase its sales at a mid-single-digit rate
while maintaining or improving its healthy margins, with
Moody's-adjusted gross debt/EBITDA moderately declining towards
5.5x in the next 12-18 months, and to continue generating positive
free cash flow on a sustainable basis. The stable outlook also
factors in Moody's expectation that the company will maintain a
prudent approach to acquisitions, so that any potential future
transactions will not lead to a material increase in its leverage
on a pro forma basis.

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

Signature Foods' ratings could be upgraded if it (1) increases its
scale and enhances its business profile, including more diversified
product range and geographical presence; (2) reduces its
Moody's-adjusted gross debt/EBITDA below 4.5x on a sustainable
basis; (3) continues to generate solid positive free cash flow; and
(4) maintains adequate liquidity.

The ratings could be downgraded if (1) the company fails to reduce
and maintain its Moody's-adjusted gross/debt EBITDA below 6.0x as a
result of softer sales, erosion of profit margins or significant
debt-financed acquisitions; (2) the company's free cash flow turns
negative on a sustained basis; or (3) liquidity deteriorates.

LIST OF AFFECTED RATINGS

Issuer: PHM SF Dutch Bidco B.V.

Assignments:

Probability of Default Rating, Assigned B2-PD

Corporate Family Rating, Assigned B2

Senior Secured Bank Credit Facilities, Assigned B2

Outlook Action:

Outlook, Assigned Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Consumer
Packaged Goods Methodology published in February 2020.

COMPANY PROFILE

Signature Foods, domiciled in the Netherlands, is the leading
producer of chilled convenience food in the Benelux region, with
sales concentrated in the Netherlands (over 60% of revenue) and
Belgium (around 30%). The company produces primarily spreads and
dips (65% of revenue), a range of meal solutions, such as salads,
bread snacks and pasta sauces (24% of revenue) and bites, including
tapas and savoury snacks (11% of revenue). The company operates
seven production facilities, including one in Belgium and one in
Poland, and employs approximately 600 people. In the year ended
March 2020, Signature Foods sold 75 thousand tonnes of food
products and reported net sales of EUR303 million (pro forma for
the acquisition of Topking) and management-adjusted EBITDA of EUR59
million.


STEINHOFF INT'L: Provides Update on Proposed Global Settlement
--------------------------------------------------------------
Steinhoff International Holdings N.V. ("SIHNV") on Jan. 14
announced the following update on the implementation of its
proposal to resolve the various multi-jurisdictional legacy
litigation and claims against SIHNV (together with its
subsidiaries, "Steinhoff") including those against the former South
African holding company Steinhoff International Holdings
Proprietary Limited ("SIHPL").

SIHNV first announced its proposed global settlement in July 2020,
at which stage it indicated that prior to launch of any
implementation proceedings Steinhoff would, amongst other things,
need the approval of its financial creditors.

Following the July announcement SIHNV launched a financial creditor
consent process in October 2020 ("October Consent Request") and
provided further public updates in November and December 2020.

In addition, on December 1, 2020, SIHNV announced that it had
satisfied another key condition after it received approval from the
South African Reserve Bank ("Finsurv") for the cross-border
transfers contemplated by the Proposed Settlement. The approval is
valid for 12 months from the date of grant.

Next Steps

As previously announced, implementation of the proposed global
settlement requires a co-ordinated series of steps to be taken in
the relevant jurisdictions.  The key short-term next steps are
expected to be as follows:

   * English Scheme sanction hearing to take place on January
26-27, 2021: Following the approvals given at the creditors
meetings on December 15, 2020, the sanction hearing in the English
scheme proceedings, to approve the amendments to the SEAG CPU in
line with those sought from financial creditors under the October
Consent Request, is listed to take place on 26/27 January 2021. If
the Scheme is sanctioned SIHNV will have the necessary consents in
place to proceed to implement the proposed settlement.  SIHNV has
been notified by Conservatorium Holdings LLC (together with its
affiliates)
that it intends to oppose the request for sanctioning of the scheme
at that hearing.

   * Approval of the final form finance documents: Under the
October Consent Request the final forms of the amendments to the
relevant Steinhoff finance documents are required to be approved by
the Simple Majority Settlement Creditors (being more than 50 per
cent in value of the SIHNV creditors) alongside additional consent
rights reserved for certain financial creditor constituencies as
provided in the October Consent Request. A consent request to
approve the final form relevant documents by the financial
creditors is expected to be launched shortly.

   * South African directions hearing in respect of SIPHL section
155 scheme: An ex parte hearing is scheduled for 21 January 2021 in
the Western Cape High Court, at which SIHPL will seek certain
procedural directions prior to a decision to launch a scheme of
arrangement under s155 of the South African Companies Act to
implement the global settlement proposal as it relates to SIHPL
("S155 Proposal"). An application to the South African High Court
has been filed by Hamilton B.V. and Hamilton 2 B.V. contesting
SIHPL's approach to the proposed class composition under the S155
Proposal.  No date for a hearing of that application has been set.

By way of further update, a hearing has been scheduled for February
8, 2020, in the Amsterdam District Court following a recent request
by Conservatorium Holdings LLC to appoint a restructuring expert to
SIHNV pursuant to Article 371 of the Dutch Bankruptcy Act (enacting
elements of the recently enacted pre-insolvency proceedings "Wet
Homologatie Onderhands Akkoord").  SIHNV will respond to the
request in due course.

Steinhoff's view remains that the global settlement, as proposed,
provides the means to substantially resolve the historical claims
against it and remains firmly in the best interests of all
stakeholders.

Further Information

Further information on the Proposed Settlement, including a
Frequently Asked Questions document, is available on the following
website:
https://www.steinhoffinternational.com/settlement-litigation-claims.php.

On this website, claimants may submit their contact and claim
details, inform Steinhoff of their intention to support the
Proposed Settlement and register for updates. Alternatively,
Steinhoff's investor relations team can be contacted by email at
settlement@steinhoff.co.za.

Further updates will be provided following the various processes
and court hearings identified above.

The Company has a primary listing on the Frankfurt Stock Exchange
and a secondary listing on the JSE Limited.

Steinhoff International Holdings NV's registered office is located
in Amsterdam, Netherlands.




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

BORR DRILLING: Creditors Back Liquidity Improvement Plan
--------------------------------------------------------
MT Newswires reports that Borr Drilling has secured creditors'
support for its liquidity improvement plan, including deferring
various credit facilities January 2023, extending its operation
runway.

"The liquidity improvement plan, which started mid-2020, including
this recent financing plan, has contributed over $1 billion in
total liquidity improvements until 2023 and improved our runway,"
MT Newswires quotes Borr Drilling CEO Patrick Schorn as saying.

According to MT Newswires, the Norwegian driller said among the
deferments include US$400 million in bank facilities and a US$195
million facility from Hayfin.  It also secured financing extension
to a US$272 million newbuild rigs from Singapore's Keppel, MT
Newswires discloses.

Borr said the deals are subject to conditions, including completion
of a $40 million equity raise, MT Newswires notes.


NORWEGIAN AIR: Norwegian Government Supports Survival Plan
----------------------------------------------------------
Terje Solsvik at Reuters reports that Norway backed Norwegian Air's
survival plan on Jan. 21 as Industry Minister Iselin Nyboe said
that the government had no intention of being a shareholder but
would stump up cash if private investors did too.

The heavily indebted budget carrier, which has been forced to
ground all but six of its 138 aircraft due to the coronavirus
crisis, asked the government for help last week, Reuters relates.

Norwegian was granted bankruptcy protection by courts in Ireland
and Norway last year as it seeks to shed much of its debt. It plans
to end its long-haul service, Reuters recounts.

"The government's support significantly increases our chances of
raising new capital and getting us through the reconstruction
process," Reuters quotes Norwegian Chief Executive Jacob Schram as
saying in a statement.

Mr. Nyboe said the government's participation, in the form of a
hybrid loan, will be dependent on private investors taking part in
a planned share issue, Reuters notes.

If its reconstruction succeeds, Norwegian has said it will
initially cut its fleet to about 50 aircraft, Reuters relays.

It has said the fleet could grow to 70 aircraft in 2022, depending
on demand and potential travel restrictions, according to Reuters.

The government, as cited by Reuters, said the plan depends on the
company raising at least NOK4.5 billion (US$532 million), primarily
from institutional and strategic investors, and on the courts
approving its restructuring.

It also depends on approval from Norway's parliament, Reuters
states.




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

BANK DOM.RF: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Positive
----------------------------------------------------------------
Fitch Ratings has affirmed JSC Bank DOM.RF's (BDRF) Long-Term
Issuer Default Ratings (IDRs) at 'BB+' with a Positive Outlook.

KEY RATING DRIVERS

BDRF's IDRs and Support Rating Floor (SRF) of 'BB+' are driven by a
moderate probability of support from Russia (BBB/Stable). This view
is based on (i) BDRF's ultimate state ownership, as the bank is a
fully-owned subsidiary of Russia's housing development institution,
JSC Russia Housing and Urban Development Corporation (DOMRF;
BBB/Stable); (ii) the bank's policy role of supporting domestic
residential construction as mandated by a special statute; and
(iii) sizeable capital support recently provided to the bank,
including a total of RUB83 billion new equity in 2019-2020 (equal
to 33% of end-2019 risk-weighted assets). The two-notch difference
between BDRF's IDRs and the sovereign's reflects the still limited,
albeit gradually increasing, track record and volume of the bank's
policy lending.

The Positive Outlook on BDRF's IDRs reflects Fitch’s view that
the notching between BDRF's ratings and those of the sovereign
could be reduced to one notch within the next 12-18 months
following the bank's active execution of its policy role and its
closer involvement in the implementation of DOMRF's core strategy.

This view is based on Fitch’s expectation of (i) BDRF's rapid
growth in construction and mortgage lending, which will support
DOMRF's policy objectives; and (ii) continuing capital support,
which will enable the bank to grow in the specified sectors and
address potential credit risks stemming from the anticipated
acquisition of a smaller policy bank, JSC SME Bank (unrated; 25% of
BDRF's total assets) in 1H21, as part of a broader reform of
Russian development institutions.

BDRF's ratings are driven solely by sovereign support, as Fitch
does not consider it meaningful to rate the bank on a standalone
basis given its focus on policy operations. Fitch therefore has not
assigned a Viability Rating to the bank.

BDRF has a short record of policy operations as it is only one and
a half years since the bank was decisively cleaned up and
recapitalised in 2019. The bank's policy loan book grew 56%
(non-annualised) over 11M20 but it was still limited at 0.6% of
banking system loans. According to DOMRF's management, the bank may
reach a market share of up to 1.5% within the next one to two years
and this will be supported by continuing equity injections.

At end-3Q20, Stage 3 loans made up 17% of gross loans and were
deeply covered by total loan loss allowances at 95%. Stage 3 loans
are mostly attributable to legacy corporate exposures. The bank's
large capital surplus (Fitch Core Capital ratio of 24% at end-3Q20)
is likely to be used to support expansion in construction and
mortgage lending. Fitch considers mortgage loans to be a generally
low risk product in Russia, but the bank's exposure to the cyclical
construction sector may be a source of concentration risk and could
result in volatile performance.

RATING SENSITIVITIES

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

-- An upgrade of Russia's sovereign Long-Term IDRs could result
    in an upgrade of BDRF's IDRs and SRF.

-- An upgrade of BDRF's ratings would require sound execution of
    the bank's policy role. This should translate into solid
    growth of the loan book in the targeted sectors. An upgrade
    would also require the bank maintaining a reasonable financial
    performance and preserving strong access to capital support.

-- If the anticipated consolidation of SME Bank does not lead to
    material impairment of BDRF's capital position and asset
    quality, but strengthens the merged entity's policy mandate
    and increases its importance to the state, Fitch would view
    this as credit-positive.

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

-- A downgrade of Russia's sovereign Long-Term IDRs could result
    in a downgrade of BDRF's IDRs and SRF.

-- The bank's ratings could be affirmed and the Outlook revised
    to Stable if the bank's policy-related operations do not
    materially increase, while its access to government capital
    support weakens.

-- Fitch would view a significant weakening of BDRF's credit
    profile resulting from the merger with SME Bank, which was not
    remedied by the state in due course, as credit-negative.

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.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The bank's IDRs are linked to Russia's sovereign ratings.

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.


CREDIT BANK: Fitch Assigns BB Rating on EUR600MM Unsec. Eurobond
----------------------------------------------------------------
Fitch Ratings has assigned Credit Bank of Moscow's (CBM) EUR600
million 3.1% five-year senior unsecured Eurobond issue a final
long-term rating of 'BB'.

The bonds are issued by CBM's SPV, CBOM Finance PLC (Ireland),
which on-lends the proceeds to the bank.

The assignment of the final rating follows the completion of the
issue and receipt of documents conforming to the information
previously received. The final rating is the same as the expected
rating assigned on 11 January 2021.

KEY RATING DRIVERS

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

The 'BB' IDR of CBM is driven by its standalone strength, as
reflected in its 'bb' Viability Rating (VR). The VR 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 IDR reflects potential pressure on the
bank's financial profile from the pandemic, 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 IDR is upgraded.

-- The upside to CBM's IDR 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 IDR is
    downgraded.

-- The IDR could be downgraded in case of marked deterioration in
    CBM's financial metrics, in particular asset quality,
    profitability and capitalisation. The rating could also be
    downgraded if the economic contraction caused by the pandemic
    turns out to be significantly sharper or more prolonged than
    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 AIRPORT: Fitch Assigns BB(EXP) Rating on USD Notes, Outlook Neg
-------------------------------------------------------------------
Fitch Ratings has assigned DME Airport Designated Activity
Company's US-dollar loan participation notes a 'BB(EXP)' expected
rating. The Outlook is Negative.

The notes will effectively rank pari passu with and will be
structurally identical to the existing notes. The issuer of the
bonds, DME Airport Designated Activity Company, an Irish SPV, will
lend the proceeds to the borrower, Hacienda Investments Ltd
(Cyprus). The loan will be guaranteed by the holding company DME
and a majority of DME operational subsidiaries on a joint and
several basis.

The proceeds of the new issue will be used to redeem outstanding
USD350 million loan participation notes due November 2021 and,
depending on the size of the issue, also partially repay
outstanding USD300 million loan participation notes due in February
2023.

The assignment of the final rating is contingent on the receipt of
final documents conforming to information already reviewed.

RATING RATIONALE

The 'BB (EXP)' rating 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.

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's 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 the 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 uses 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.

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

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 issuer inability to
    refinance well in advance.

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.

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. The group owns the terminal's 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 was 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 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 weaker 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.

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, which has a negative impact on the credit profile,
and is relevant to the rating in combination with other factors.

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


DME AIRPORT: Moody's Assigns Ba1 Rating to New Unsec. USD Notes
---------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 rating to the proposed
senior unsecured US dollar-denominated guaranteed loan
participation notes to be issued by, but with limited recourse to,
DME Airport DAC, a designated activity company incorporated under
the laws of Ireland. DME Airport DAC will in turn on-lend the
proceeds to Hacienda Investments Ltd, a wholly owned subsidiary of
DME Limited (Moscow Domodedovo Airport) (DME, Ba1 negative), which
owns substantially all of the company's real estate assets. The
loan will be unconditionally and irrevocably guaranteed by DME
Limited (Moscow Domodedovo Airport) and its major operating
subsidiaries, which account for more than 85% of the group's
consolidated EBITDA and assets. Therefore, noteholders will rely
solely on DME's credit quality to service and repay the debt. The
outlook of DME Airport DAC is negative, in line with DME's
outlook.

DME intends to use the loan proceeds for refinancing of its
existing indebtedness, including outstanding $350 million notes due
2021 and $300 million notes due 2023.

RATINGS RATIONALE

The notes' rating of Ba1 is at the same level as DME's rating,
which reflects Moody's assumption that: (1) the notes will rank
pari passu with other unsecured and unsubordinated obligations of
DME's group; and (2) the company has no secured debt in its capital
structure.

DME's Ba1 rating with a negative outlook incorporates Moody's
current assumptions that the company's credit metrics may recover
to the levels commensurate with its current rating by 2022 after
the substantial deterioration in 2020 as a result of the
unprecedented pressure from the coronavirus outbreak (Moody's
regards as a social risk under its ESG framework, given the
substantial implications for public health and safety), which
dramatically affected the global airport sector, given its exposure
to travel restrictions and sensitivity to consumer demand and
sentiment.

Notwithstanding the increasing duration and severity of the
pandemic, and the ongoing uncertainty regarding the pace of
recovery, DME is well positioned to restore its traffic over the
next two to three years because of its strategic importance as an
infrastructure provider to the Moscow area, the wealthiest region
of Russia. The company also benefits from the high proportion of
domestic traffic, which proved to be more resilient to the
pandemic, quickly restoring since June 2020 on the back of the
softening of the local lockdown measures. Although the current
resurgence of the virus globally has reversed the recovery trend,
DME's passenger volume dropped 42% in 2020 versus that for 2019,
which remains well in line with agency's initial expectations.
While Moody's continues to expect DME's traffic to gradually
recover over 2021-23 further supported by a slow come back of
international and long-haul flights, risks of more challenging
downside scenarios, including deeper reduction in passenger volumes
and a slower recovery remain high.

The rating also takes into account Moody's expectation that the
company will continue to implement measures aimed at restoring its
financial profile and maintaining a comfortable liquidity. In
particular, the proposed new notes, if successful, will address
DME's major refinancing risk related to its $350 million Eurobond
due in November 2021 with no other significant debt repayments
until maturities of its two domestic bonds for RUB5 billion and
RUB10 billion due in July 2022 and December 2022, respectively.

More generally, DME's ratings continue to factor in the company's
(1) position as the second-largest airport in the Moscow Air
Cluster (MAC), with a vast service area and strong fundamentals;
(2) well-developed infrastructure, to be reinforced by the new
terminal and airfield facilities, which, once operational, will
strengthen its competitive position and service offering, providing
sufficient capacity to accommodate future growth; (3) diversified
carrier base, with a sound anchor airline and mostly origin and
destination traffic; and (4) likely recovery in its financial
ratios to the pre-pandemic levels by 2022-2023.

At the same time, the ratings remain constrained by DME's (1)
exposure to the intense competition in the MAC and the inherent
exposure to airline failures, further exacerbated by the severe
coronavirus crisis; (2) reliance on the state to develop airfield
facilities, which has driven a delay in the launch of the new
terminal at full capacity; (3) exposure to the evolving regulatory
environment, particularly in view of an upcoming shift to a
concession agreement and the overall less-developed legal,
political and economic frameworks in Russia (Baa3 stable); and (4)
concentrated ownership structure with weak corporate governance
standards.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects (1) the material uncertainties
regarding the prospects of recovery in the air passenger traffic
and its ability to drive a return of DME's credit metrics to 2019
levels, (2) risks of extended disruption to travel resulting in
material deterioration in credit quality of its key carrier
operators, or intensified competition leading to the airport's
weaker performance, and (3) liquidity risks related to the upcoming
maturity of a $350 million Eurobond due in November 2021.

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

Given the negative outlook and the scale of the sector stress,
upward rating pressure on DME's ratings is unlikely in the next
18-24 months. The outlook could be stabilised if (1) Moody's sees a
sustainable recovery in traffic volumes, driving the correspondent
recovery in DME's credit metrics, and (2) the company continues to
maintain a comfortable liquidity during the market recovery phase.

DME's ratings could be downgraded if (1) there was a rising
pressure on DME's credit profile from more severe and extended
disruption to travel as well as from growing concerns over the
erosion of its competitive position or material weakening of the
key airlines' credit profile, (2) it appeared likely that the
company's credit metrics would not restore to the levels
commensurate with the current rating over the next two or three
years, namely funds from operations (FFO)/debt ratio restoring to
at least in the mid-teens in percentage terms; (3) there was a risk
of covenant breaches without adequate mitigating measures in place;
or (4) there were concerns about the company's liquidity including
its ability to address the Eurobond maturity in 2021.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Privately Managed
Airports and Related Issuers published in September 2017.

COMPANY PROFILE

DME Limited (Moscow Domodedovo Airport) is the owner and operator
of Moscow Domodedovo Airport, one of largest airports in CIS and
Eastern Europe in terms of passenger and cargo volume, with around
28.3 million passengers handled in 2019. In 12 months ended June
30, 2020, DME generated around RUB29.0 billion of revenue and
RUB12.0 billion of adjusted EBITDA. DME is ultimately controlled by
Dmitry Kamenshchik.


EXPOBANK LLC: Fitch Alters Outlook on BB- IDRs to Stable
--------------------------------------------------------
Fitch Ratings has revised the Outlooks on the Long-Term Issuer
Default Ratings (IDRs) of SDM-Bank PJSC (SDM) and Expobank LLC
(Expo) to Stable from Negative. SDM's IDRs have been affirmed at
'BB' and its Viability Rating at 'bb' and Expo's IDRs have been
affirmed at 'BB-' and its VR at 'bb-'.

The revision of the Outlooks reflects reduced pressure on the
banks' profiles from the pandemic. Fitch believes that the banks'
pre-impairment profit buffers and healthy capital cushions are
sufficient to absorb any further pressures from the pandemic and
the challenging economic environment.

Both banks' VRs capture an extended track record of good
performance through the credit cycle, reasonable funding and
liquidity profiles and limited asset quality deterioration to date
following the pandemic outbreak, but also their limited franchises
in the concentrated Russian banking system. SDM's 'bb' VR also
reflects the bank's conservative risk appetite and somewhat
conservative asset structure. Expo's 'bb-' VR also captures its
previous rapid growth through acquisitions of smaller banks and
fast organic growth in the car financing segment in recent years.

In January 2021, Expo purchased an 8.5% stake in SDM from Firebird
Aurora Fund Ltd, increasing its stake in the bank to 23.5%. In
Fitch's view, this transaction is neutral for both banks' ratings
as SDM's founder and majority shareholder, Anatoly Landsman,
retains control over the bank and no changes in corporate
governance or strategy are expected. For Expo this is a portfolio
investment, according to the bank's management.

KEY RATING DRIVERS

IDRs AND VRs

Expo

The impaired loans (Stage 3 and purchased or originated
credit-impaired under IFRS 9) ratio was a moderate 5.4% at
end-3Q20, up from 4.4% at end-2019. Coverage of impaired loans by
total loan loss allowances (LLAs) was reasonable at 86%, reflecting
potential recoveries through the sale of collateral. Loans
restructured in 2020 due to the pandemic were marginal. Fitch
expects asset quality could come under pressure in 2021, mainly
from SME financing (23% of total loans), which Fitch considers the
most vulnerable in the current challenging environment. Asset
quality risks also come from the largely unseasoned nature of the
bank's car loan portfolio (42% of loans).

Expo's profitability is healthy, as reflected by a strong 5% ratio
of core operating profit to regulatory risk-weighted assets (RWA)
in 9M20 (annualised), underpinned by a wide 8% net interest margin
(NIM), good operating efficiency (37% cost/income ratio) and a
moderate cost of risk at 2.0% of gross loans (almost unchanged from
1.8% in 2019).

The ratio of Fitch Core Capital (FCC) to consolidated regulatory
risk-weighted assets (RWAs) was a healthy 19.7% at end-3Q20. Fitch
believes the bank's pre-impairment profit (equal to 10% of average
loans in 9M20) is a strong cushion to absorb a potential increase
in cost of risk and deterioration in profitability without placing
significant pressure on capital.

The bank is funded by customer deposits (93% of liabilities at
end-3Q20), the majority of which are granular term deposits
attracted from individuals. Expo's customer funding has been
broadly stable since the outbreak of the pandemic. Its liquidity
buffer is reasonable with highly liquid assets (cash, short-term
interbank and Central Bank of Russia (CBR) placements and unpledged
securities available for repo with CBR) accounting for 29% of total
assets and covering 38% of deposits at end-10M20.

SDM

Impaired loans have increased only moderately since the pandemic
started, with the Stage 3 ratio at 5.2% at end-3Q20 (end-1Q20:
4.2%). Positively, Stage 3 loans were 1.7x covered by total
reserves. Stage 2 loans equalled 6.5% of gross loans at end-3Q20.
In view of the Covid-19 disruption, SDM provided temporary payment
holidays on about 25% of gross loans in 9M20, 80% of which have
since returned to original schedules. Loans that were on credit
holidays but with signs of impairment now make up RUB1 billion (6%
of total loans, or 9% of FCC net of reserves). Some of these
exposures may move to Stage 3 in the medium term, driving Stage 3
loans up to 10% of gross loans, although these would still be 90%
reserved.

Net loans made up a limited 20% of total assets at end-3Q20, which
mitigates asset quality risks. Non-loan exposures are predominantly
represented by liquid assets (cash, placements with the CBR and
securities book of good quality).

Due to the bank's focus on lower-yielding assets, profitability is
modest. Despite falling interest rates, the bank's net interest
margin was stable at about 4% in 2019 and 9M20, in line with the
sector average ratio. SDM benefits from a low cost of risk, which
nevertheless increased to 1.5% in 9M20 (annualised) from 0.7% in
2019. SDM's pre-impairment profits are underpinned by a lower-risk
asset structure and averaged a healthy 6% of average gross loans in
the last three years, providing a comfortable cushion to absorb a
potential increase in cost of risk without placing pressure on
capital.

Capitalisation is reasonable considering the conservative asset
structure. The 16% FCC ratio at end-3Q20 provided adequate loss
absorption capacity. The bank could create additional reserves
equal to 20% of gross loans without breaching the minimum
regulatory capital requirements.

The bulk of funding (92% of the total at end-3Q20) comes from
customer accounts. Due to the bank's focus on affluent individual
customers, these are moderately concentrated with the top 20
deposits making up 22% of the total. The customer base has proved
historically stable, with key depositors having a long track record
with the bank. The available liquidity buffer made up a high 56% of
assets and covered 70% of customer deposits at end-3Q20.

Support Ratings and Support Rating Floors

Expo and SDM's Support Ratings of '5' and Support Rating Floors of
'No Floor' reflect Fitch's view that support from the Russian
authorities cannot be relied upon due to the banks' limited
systemic importance. Support from private shareholders cannot be
reliably assessed and therefore is not factored into the ratings.

RATING SENSITIVITIES

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

-- Upgrades of both banks' ratings would require stabilisation of
    the operating environment in Russia and a reduction of asset
    quality risks related to Covid-19.

-- An upgrade of Expo's ratings would require stabilisation of
    its business model, reduced risk appetite and lower growth,
    while maintaining good performance through the cycle.

-- Upgrade prospects for SDM's ratings are currently limited and
    would require a material strengthening of the bank's currently
    low franchise while also maintaining stable asset quality and
    improving profitability.

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

-- Fitch could downgrade Expo's ratings if rapid recent lending
    growth or continuous M&A activities result in a marked
    deterioration of asset quality (with an impaired loans ratio
    exceeding 10%), the bank's profitability weakens materially
    (operating profit to RWA of below 1%) and its capital erodes
    to an extent where its regulatory capital ratios are only
    marginally above the regulatory requirements including
    buffers.

-- SDM's ratings could be downgraded in case of a weakening of
    the bank's capitalisation (with the FCC ratio falling close to
    10%) due to deterioration in asset quality and profitability.
    Negative rating action could also stem from large outflows
    from customer accounts. However, none of these scenarios is
    currently expected by Fitch.

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.


UNITED CONFECTIONERS: Fitch Affirms 'B' LT IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed Russia-based JSC Holding Company United
Confectioners' (UC) Long-Term Issuer Default Rating (IDR) at 'B'.
The Outlook is Stable.

UC's 'B' rating continues to be constrained by weak corporate
governance practices. The rating reflects a good business profile
and moderate leverage consistent with higher-rated peers.

The Stable Outlook reflects Fitch's expectation that UC's
profitability will gradually recover over the next 24-36 months
from the low point that Fitch expects it will have hit in 2020.
Outflows to related parties are likely to remain moderate, which
should translate into funds from operations (FFO) gross leverage
sustainably below 4x, within the leverage band consistent with the
rating. A conservative balance sheet should also enable UC to
maintain adequate access to external liquidity to refinance its
short-term debt.

KEY RATING DRIVERS

Market Moderately Affected by Pandemic: Russian confectionery sales
decreased by 3% in 9M20. Fitch expects the largest sales
contraction in 2020 to have been in the boxed sweets segment, which
was most hit by the pandemic due to lower event and
celebration-driven demand, as well as caramel, which remains a
declining category. Fitch assumes the market will grow at low
single digit rates in 2021-22, with value segments such as bakery
demonstrating stronger dynamics in 2021, amid muted consumer
sentiment in Russia.

We project spending will be affected by reinstated social
distancing restrictions and modest real income growth. Strong
competition is likely to continue in all segments of the
confectionery market, resulting in limited pricing power for
producers.

Challenged Market Share: UC's market share in value terms declined
to 12.0% in 9M20 from 14.6% in 2015, behind the 12.9% achieved by
Mondelez (BBB/Stable). Fitch sees potential for further erosion if
UC's innovation and marketing initiatives are unsuccessful amid
intense competition from larger international sweets producers. UC
also has tough competition in its bakery segment from KDV, a
fast-growing local producer with wide value proposition. However,
UC remains the market leader in its largest product categories of
bulk sweets and caramel, and among the top three in others.

Fitch forecasts only mild further weakening in UC's market
position, due to its strong portfolio of nationally recognised
brands, large scale across the major confectionery categories, and
wide distribution network across the country. Fitch therefore
expects UC's business profile to remain strong for the 'B' rating
category in the medium term.

Growing Costs Pressure Profitability: Fitch expects pressure from
increased raw materials prices as well as rouble depreciation to
have materially affected UC's profitability in 2020. Coupled with
limited price increases in the year, Fitch estimates the EBITDA
margin to have declined to 6.0% in 2020 (2019: 7.6%). The margin is
likely to remain under pressure in 2021, as Fitch conservatively
assume limited recovery in sales volumes and further growth in raw
material prices, with UC able to introduce only modest price
increases below inflation rates in 2021-22. UC's continued focus on
protecting its sales volumes and defending its market share also
supports Fitch’s expectation of limited pricing activity.

Modest Margin Recovery Post 2021: Fitch’s medium-term
expectations for the EBITDA margin recovery, toward only 7%,
incorporate continued competitive pressures in the confectionery
market and the growing bargaining power of retailers as the food
retail market consolidates. Fitch expects this to be partly offset
by partial recovery in sales volumes after the pandemic, UC's
efficiency and vertical integration initiatives, including
modernisation of its core production facilities, increased
investments in its agricultural division and retail network
expansion, alongside a declining revenue share of the low-margin
caramel business and growing exports (9M2020: 9.5% of revenue).

Limited Pandemic Effect on Operations: UC did not experience
disruptions to its production and retail operations during the
lockdowns in 2020 and Fitch expects it to sustain stable operations
during 2021. Safety and social distancing expenses were moderate
and were more than offset by cost-efficiency initiatives, such as
salary optimisation, and reduction in administrative expenses
related to switching to work from home operations for the
headquarters. These initiatives also allowed to offset some of the
gross margin deterioration related to increased raw material prices
and FX pressure.

Reduced Free Cash Flow: Fitch expects neutral to negative free cash
flow (FCF) in 2020-2021 despite anticipated lower capex levels.
Fitch conservatively assumes that in 2022-2023 the potential
recovery in operating profitability will be accompanied by both
higher capex (up to RUB3.0 billion) and rebound in dividends toward
RUB1.5 billion, leading to low single digit negative FCF margins.

Fitch conservatively assumes that related-party transaction
practice would continue, with RUB1 billion annual net cash outflows
in related-party loans in 2021-2023. This is likely to lead to some
deterioration in FFO gross leverage toward 3.7x by 2023, but still
below Fitch’s negative rating sensitivity of 4.0x (2019: 2.5x).
Fitch understands from management that Guta Group remains committed
to keeping UC's external debt burden at manageable levels.

Weak Corporate Governance Practices: UC has an ESG Relevance Score
of 5 for 'Governance Structure' and for 'Group Structure', which
remain a core consideration for UC's 'B' rating. Major rating
constraints include a track record of large loans to related
parties, lack of management and board independence, and material
portion of UC cash held in the related Guta-Bank. Over 2017-19 UC
started to show a net cash inflow under related-party transactions.
Should this practice continue along with further reduction in value
of the transactions and improving transparency of financial policy,
including clear dividend policy, it could result in a positive
reassessment of UC's corporate governance quality. This issue
remains a drag on UC's credit profile, although the company's
credit metrics and business profile are still commensurate with a
higher rating.

DERIVATION SUMMARY

UC is rated lower than Ulker Biskuvi Sanayi A.S (BB-/Negative) as
it has lower market shares in its domestic market and less
geographic diversification, resulting in smaller business scale.
Together with UC's weaker financial transparency and opaque
related-party transactions, which constrain its rating, this
results in a two-notch difference, despite UC's more conservative
leverage. UC has similarly strong brands compared with leading
Latin American confectionery producer Arcor S.A.I.C. - which has a
Local-Currency IDR of B+/Negative - but is smaller and is less
geographically diversified, which together with corporate
governance issues explains the one notch difference between the
ratings. Compared with European poultry supplier Boparan Holdings
Limited (B-/Stable), UC's credit profile benefits from higher
profitability and significantly lower leverage, which justifies the
higher rating for UC.

KEY ASSUMPTIONS

-- Decline of sales volumes of ca. 3% in 2020 and single-digit
    growth in 2021-2023

-- Selling price increasing 3% in 2020, at CPI level in 2021-2022

-- EBITDA margin of around 6%-7% in 2020-2023

-- Low-single digit growth rate for key raw material costs in
    2021-23

-- Capex of RUB1.2 billion in 2020 increasing to RUB1.5 billion
    in 2021, and to RUB3.0 billion in 2022-2023 reflecting
    potential relocation of Rot Front manufacturing facilities,
    which might commence in 2021-2022

-- Total annual cash distributions to shareholders and related
    parties (dividends, loans to related parties, and investments
    in non-core assets to support the strategy of Guta Group) of
    around RUB1.5 billion in 2021, and RUB2.5 billion in 2022
    2023.

RATING SENSITIVITIES

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

-- Consistent evidence of improved corporate governance
    practices, including a record of restrained related-party
    transactions and greater financial transparency;

-- FFO leverage sustainably below 3.0x;

-- EBITDA margin of at least 10% on a sustained basis.

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

-- Sustained material deterioration in FCF generation, driven by
    operating underperformance and profitability decline by the
    core confectionery business or resources absorption by other
    ventures;

-- FFO leverage sustained above 4.0x;

-- Larger-than-expected distributions to Guta Group or material
    investments in non-core assets not offset by greater pre
    dividend FCF;

-- Deterioration in liquidity or inability to refinance short
    term debt.

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: At end-December 2020, Fitch-adjusted
unrestricted cash of RUB833 million (excluding RUB959 million of
cash held in related party Guta Bank) and available undrawn bank
lines of RUB8.6 billion were sufficient to cover the short-term
debt of RUB2.5 billion.

Liquidity and refinancing risks may increase in the event of a
larger-than-expected cash leakage to related parties, but this is
not a scenario Fitch currently expects.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch treats cash held at related party Guta Bank as restricted. At
end-2019 it amounted to RUB1.2 billion (2018: RUB1.2 billion) and
by December 2020 it has reduced to RUB0.9 billion. For future
periods Fitch adjusts cash by RUB1.5 billion.

ESG CONSIDERATIONS

Group Structure: ESG Relevance Score '5'; Governance Structure: ESG
Relevance Score '5'; Financial Transparency: ESG Relevance Score
'4'

UC has an ESG Relevance Score of 5 for 'Governance Structure' due
to the concentrated ownership with Guta Group and lack of board
independence, which results in decision making concentrated in
hands of one shareholder. This ESG scores currently has a negative
impact on the credit profile, and is highly relevant to the rating,
resulting in a key rating driver.

UC has an ESG Relevance Score of 5 for 'Group Structure' due to the
company's highly complex group structure with track record of large
and opaque related-party transactions. This ESG scores currently
has a negative impact on the credit profile, and is highly relevant
to the rating, resulting in a key rating driver.

UC has an ESG Relevance Score of 4 for Financial Transparency as
quality and timing of financial disclosure are not fully
satisfactory. This ESG score currently has a negative impact on the
credit profile, and is relevant to the rating in conjunction with
other factors.

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




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

ACI AIRPORT: S&P Lowers Debt Rating to 'CCC' on Eroding Liquidity
-----------------------------------------------------------------
S&P Global Ratings lowered its debt rating on ACI Airport
Sudamerica S.A.'s (ACI) notes to 'CCC' from 'B-'.

S&P said, "We now expect a drop of 61% in 2021 and 30% in 2022 at
the Carrasco International Airport from the 2019 level, compared
with our previous assumption of a fall of 26% and 15%,
respectively. We have updated our base-case scenario based on
traffic performance in 2020 (down 73% from the 2019 level, compared
with a 59% drop in our last forecast), our latest expectations for
global air traffic (As COVID-19 Cases Increase, Global Air Traffic
Recovery Slows ), management's expectations for 2021, and greater
uncertainty over recovery." Many countries imposed new border
closures, curfews, and flight restrictions despite the beginning of
the vaccination campaigns.

Likewise, following the recent increase in COVID-19 cases in the
region, Uruguay closed its borders until the end of January, which
is in the middle of the summer holiday season in the southern
hemisphere, which would slow down air traffic recovery in 2021 and
beyond.

The project's capital structure is under greater stress given the
debt maturities pushed to 2021 under the 2020 exchange amid
sluggish traffic recovery. As a result, ACI's DSCR will be below 1x
in 2021 and 2022 with insufficient liquidity to cover the
shortfalls. Assuming pro forma cash balances at ACI and PdS of
about $5 million and $3 million as of December 2020, respectively,
PdS will pay its debt in April 2021 and ACI will cover the Series
2015 note amortization in May 2021. However, S&P expects a
shortfall of about $4 million in meeting the Series 2020 note
amortization in November 2021.

S&P said, "We believe the project's repayment capacity will improve
in the upcoming 12 months if PdS secures the loan, which will
amortize after 2022, the year that PdS's notes are due. We expect
PdS to use this extra cash to enhance its liquidity so that it
complies with all its operating and financial commitments, while
upstreaming excess cash as it has been the case in previous years.
Nevertheless, given the timing for the loan as uncertain, our
base-case scenario excludes it.

"However, in our view, liquidity will remain fragile in 2022
because ACI would cover the May 2022 debt service shortfall with
cash in hand, not through the DSRA. Moreover, in our view, the
uncertainty over air traffic recovery is rising."

ACI has a six-month DSRA of $800,000 for the outstanding amount of
Series 2015 notes. The waiver ACI obtained during debt
restructuring will enable it to fund the DSRA for the Series 2020
notes until May 2022. However, S&P doesn't expect these notes to
have a sufficient DSRA in 2022, which will further strain the
project's already weak liquidity. Even if ACI is entitled to fund
the DSRA through a Letter of Credit (LoC) to fulfill any shortfall,
management isn't currently planning to do so.

PdS received a waiver for not maintaining a DSCR of 1.25x as of
December 2020, which will allow dividend payments to ACI in 2021.
This was a one-time waiver and PdS may have to negotiate another
one in December 2021.

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

-- Health and safety risk

S&P said, "The negative outlook incorporates our view of greater
uncertainty over the air traffic recovery in 2021 and 2022, which
can pressure further the project's ability to keep costs under
control. This is compounded by an already tight liquidity given
that the debt service coverage ratio (DSCR) will be below 1x in
2021 and 2022 and the debt service reserve account (DSRA) for ACI's
Series 2020 notes won't be funded until November 2022. In our view,
these two factors point to a vulnerable capital structure in 2021
and 2022."


AUTOPISTA DEL SOL: S&P Downgrades ICR to 'BB+' on Weaker Traffic
----------------------------------------------------------------
S&P Global Ratings lowered its rating on Autopista del Sol
Concesionaria Espanola S.A.'s (AUSOL) senior secured debt to 'BB+'
from 'BBB-', and kept it on CreditWatch with negative
implications.

The CreditWatch indicates that S&P could lower its rating on
AUSOL's debt if it sees the project is exposed to further tax
liability, following the tax consolidation.

AUSOL, a limited-purpose entity, issued a EUR467 million fixed-rate
senior secured bond and EUR40 million in senior secured notes, both
due Dec. 30, 2045. AUSOL used the proceeds to refinance the debt
incurred for the construction, operation, and maintenance of a
96-kilometer section of tolled motorway southern Spain between
Malaga and Guadiaro in the region of Andalucia. Part of the toll
road has been operational since 1999 (75km section known as AUSOL
I) and part since 2002 (21km section known as AUSOL II). AUSOL
services its debt via the toll charged to users of the road.

Strengths

-- Strong operational performance, which materially reduces the
uncertainty in relation to the operations and maintenance (O&M) of
the asset during the debt tenor.

-- S&P views the project as a simple toll road asset. Weather
conditions are mild and there are no severe winters, resulting in
relatively simple O&M.

-- The upward trend of the annual debt service coverage ratio
(ADSCR) profile allows for some volatility of traffic growth in the
long term, with sufficient headroom to the debt service.

Risks

-- The road is fully exposed to traffic risk, which is highly
seasonal, with demand increasing around Easter and peaking during
the summer months (July, August, and September).

-- It competes with one free alternative route, which was less
attractive pre-COVID-19, since it operated close to capacity, but
has become more competitive as overall traffic in the corridor has
declined amid the pandemic.

-- AUSOL is tax consolidated with its holding companies Infratoll
and Meridiam Investments 5 SAS, and as per Spanish law, could be
deemed jointly and severally liable for any unpaid tax liabilities
owed by these companies.

The prolonged lockdowns and associated travel restrictions led to a
larger traffic decline than what S&P expected.   During 2020
AUSOL's traffic declined by about 40% compared with our previous
expectations of 30%. AUSOL's traffic is highly seasonal, with its
peak historically taking place during the summer months. Contrary
to our previous expectations, traffic did not sufficiently recover
after restrictions eased before summer.

The second wave of COVID-19 infections and the associated
containment measures have severely dragged on tourism in the
region. According to Turismo y Planificacion Costa del Sol S.L.U.,
a public company of the Malaga Provincial Council, the nearby
Malaga Costa del Sol Airport reported a 74% drop in arrivals in the
first 11 months of 2020, which represented close to 7 million fewer
passengers than in 2019 (about 2.2 million fewer from the U.K.
alone). This was in large part due to the U.K., the country's
largest source of international tourists, having instituted a
14-day quarantine for travelers returning from Spain in July.
Spain's domestic tourism was also weaker than we expected. During
the first 11 months of the year, the number of Spanish residents
travelling to Andalucia was 37% lower than in 2019, according to
INE, Spain's statistics office.

Compared to the overall traffic performance of Spanish state toll
roads, AUSOL's recovery has been weaker, according to the Spanish
Ministry of Transport's data up to September 2020. This is not only
due to the abovementioned exposure to tourism, but also the
congestion-relieving nature of the road and presence of a toll-free
alternative route nearby (N-340/A7). The low congestion resulting
from the drop in traffic has strengthened the competitiveness of
the N-340/A7, thereby weakening AUSOL's capture rate of traffic on
the corridor.

Further limitations on national and international mobility are
likely to weigh on tourism in the region and, in turn, slow AUSOL's
traffic recovery compared to peers'.

S&P said, "While we expect full recovery of light vehicle volumes
by end-2021 for most toll roads operators globally, it may take
until 2023 for AUSOL traffic to recover to pre-COVID levels.

"Our slower recovery assumptions for AUSOL reflect uncertainty
about the evolution of the pandemic and the availability of the
vaccine, which could potentially impact the pace of borders
openings and international tourist confidence." Moreover,
containment measures in Spain may impair economic recovery and hurt
local discretionary spending, which could also weigh on the traffic
in nonpeak periods and nonwork days.

Project management's postponement of capital expenditure (capex) to
ease liquidity pressures in the period prevented the project's
credit quality from further weakening.  Project management acted to
preserve liquidity by postponing discretionary capex due to the
lower traffic level. Investments were also directly and indirectly
impacted by the workforce being subject to mobility-containment
measures during a peak outbreak. As conditions improve, S&P expects
the project will resume capex, notably the required tunnels upgrade
(Royal Decree 635/2006), which should be finalized by September
2021.

S&P said, "We currently don't expect AUSOL to draw on its liquidity
reserves to service its debt. The project has a one-year debt
service reserve and a three-year major maintenance reserve account
that provide adequate cushion to the project. Furthermore, we
expect its revised credit quality to be supported by expenditure
savings as recovery lags."

S&P Global Ratings believes there remains a high degree of
uncertainty about the evolution of the coronavirus pandemic.   As
vaccine rollouts in several countries continue, S&P Global Ratings
believes there remains a high degree of uncertainty about the
evolution of the coronavirus pandemic and its economic effects.
Widespread immunization, which certain countries might achieve by
midyear, will help pave the way for a return to more normal levels
of social and economic activity. S&P said, "We use this assumption
about vaccine timing in assessing the economic and credit
implications associated with the pandemic. As the situation
evolves, we will update our assumptions and estimates
accordingly."

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

-- Health and safety

CreditWatch

S&P said, "The negative CreditWatch indicates that we could lower
our rating on AUSOL's debt if we see the project exposed to further
tax liability, following the recent tax consolidation.

"With a lower likelihood, we may further lower the rating if the
COVID-19-related traffic decline deteriorates, causing forecast
metrics to fall to about 1.10x."


GRUPO COOPERATIVO: Fitch Withdraws Ratings for Commercial Purposes
------------------------------------------------------------------
Fitch Ratings has affirmed revised Grupo Cooperativo Cajamar's
(GCC) Outlook to Stable from Negative and affirmed the bank's
Long-Term Issuer Default Rating (IDR) at 'BB-' and Viability Rating
at 'bb-'.

At the same time, Fitch has affirmed the IDRs of Banco de Credito
Social Cooperativo, S.A. (BCC) and Cajamar Caja Rural, Sociedad
Cooperativa de Credito (Cajamar Caja Rural).

The Stable Outlook reflects that, under various possible downside
scenarios to Fitch’s baseline, Fitch now expects GCC's
capitalisation to remain commensurate with the rating and to be
able to absorb the expected asset-quality and profitability
deterioration. Capitalisation is a factor of high importance to
GCC's ratings.

GCC is not a legal entity, but a cooperative banking group. Its 18
credit cooperatives and BCC are bound by a mutual support
mechanism, under which members mutualise 100% of their profits and
have a cross-support mechanism for capital and liquidity. Fitch
assigns group ratings in accordance with Annex 4 of Fitch’s Bank
Rating Criteria and the same IDRs for GCC, BCC and Cajamar Caja
Rural.

All ratings have simultaneously been withdrawn for commercial
purposes. Fitch will no longer provide ratings or analytical
coverage of GCC or other group entities.

KEY RATING DRIVERS

IDRS AND VR

The ratings of GCC reflect its weaker asset quality than domestic
peers' and the still high level of capital tied to unreserved
problem assets, despite having significantly improved in recent
years. The ratings also factor in GCC's sound retail franchise
along the Mediterranean coast and other rural regions in central
Spain as the largest cooperative bank, with a strong footprint in
the resilient agribusiness sector, a stable and granular deposit
base, and modest profitability.

GCC's capital ratios are maintained with moderate buffers above
regulatory minimum requirements. At end-September 2020 the bank's
phased-in common equity Tier 1 (CET 1) ratio was 13.1% (12.5% fully
loaded), while the total capital ratio was 14.7% (14.2% fully
loaded). Both were above the 2020 Supervisory Review and Evaluation
Process (SREP) requirement of 9.5% and 13%, respectively. GGC's
improvements in capitalisation over the last years have been
supported by regular capital contributions from cooperative members
and retained earnings, and Fitch expects the bank to preserve
current capital levels.

However, GCC's capitalisation remains sensitive to unreserved
problem assets (which include impaired loans and net foreclosed
assets), which stood at around 76% at end-September 2020 and
compared unfavourably with peers'. While Fitch expects capital
encumbrance to increase in the next two years following
asset-quality deterioration, Fitch also expects it to improve over
the medium term as the bank manages down problem assets and the
economy recovers.

The bank markedly improved asset quality over the past few years,
with problem assets decreasing 47% since end-2016. This has been
particularly visible in the reduction of the impaired loan ratio to
5.3% at end-September 2020 from 13.6% at end-2016. However, when
including net foreclosed assets, the problem assets ratio was still
well above that of other domestic peers at around 9.5% at
end-September 2020. This is largely explained by GCC's strategy to
work out foreclosed assets organically, which typically takes
longer than large-scale portfolio sales to institutional
investors.

Reserve coverage for impaired loans improved to 56% at
end-September 2020 from 43% at end-2018, and is now closer to the
domestic sector average. However, Fitch expects impaired loans to
increase as borrowers will exit the pandemic in a weakened
financial position. In Fitch’s view exposure towards agricultural
business and residential mortgages (together around 55% of gross
loans at end-September 2020) should mitigate somewhat the impact
from the economic crisis as these segments are proving more
resilient. Fitch nonetheless expects asset-quality metrics to
deteriorate.

Core banking profitability is low as GCC has a less diversified
business model than some of its higher-rated peers. GCC's earnings
have been weighed down by low interest rates and, in recent years,
higher loan impairment charges (LICs) to help the clean-up of the
bank's balance sheet. Earnings have also been supported by non-core
banking revenue generated from its large government securities
portfolio, which Fitch expects to remain material in the medium
term and compensate for profitability pressures. Following the
economic fallout in Spain and despite the front-loading of LICs in
9M20, Fitch expects GCC's banking profitability to suffer from
lower business volumes and higher than normal LICs for the
remainder of 2020 and into 2021.

We believe GCC's funding structure is adequate for the group's
business model, with loans mainly funded by a granular stable
retail deposit base. Wholesale funding is limited, while ECB
funding is above peers' and is used largely to finance the group's
government bond portfolio. Fitch assesses its liquidity position as
adequate for upcoming debt maturities, with only Tier 2 debt call
options and covered bonds maturities in the next two years.

SUPPORT RATING AND SUPPORT RATING FLOOR

GCC's Support Rating (SR) of '5' and Support Rating Floor (SRF) of
'No Floor' reflect Fitch's belief that senior creditors can no
longer rely on receiving full extraordinary support from the
sovereign if GCC becomes non-viable. The EU's Bank Recovery and
Resolution Directive and the Single Resolution Mechanism for
eurozone banks provide a framework for resolving banks that is
likely to require senior creditors to participate in losses,
instead of, or ahead of, a bank receiving sovereign support. The SR
and SRF have been also withdrawn.

SUBORDINATED DEBT

BCC's subordinated debt is notched down twice from the group's VR
for loss severity because of lower recovery expectations relative
to senior unsecured debt. These securities are subordinated to all
senior unsecured creditors. The subordinated debt ratings have been
also withdrawn.

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.

Following the withdrawal of ratings for GCC, Fitch will no longer
be providing the associated ESG Relevance Scores.




===========
S W E D E N
===========

[*] SWEDEN: 2020 Bankruptcy Level on Par with 2019, UC Says
-----------------------------------------------------------
Veronica Ek at Bloomberg News, citing credit reference agency UC,
reports that the level of bankruptcies for 2020 as a whole is on
the same level as in the prior year, despite the pandemic.

According to Bloomberg, some industries are still suffering from
the effects of the pandemic, while sectors such as building have
fared well.

"The sectors that were hardest hit by the pandemic are ones that
represent a very small part of Sweden's economy," UC, as cited by
Bloomberg, said, adding that the companies that did go bankrupt
mainly were firms that had weak profitability to begin with.

The number of bankruptcies in December rose by 16% compared with
the same month in 2019, Bloomberg discloses.




=============
U K R A I N E
=============

KERNEL HOLDING: Court Rejects Stadnyk's Bankruptcy Petition
-----------------------------------------------------------
The Luxembourg District Court for Commercial Matters, on Jan. 15,
2021, rejected Mykhailo Stadnyk's petition to initiate bankruptcy
proceedings against Kernel Holding S.A.  No valid reason for was
identified by the court.

As previously disclosed by the Kernel Holding S.A. ("Kernel
Holding") since 2012, it has been involved in continued disputes
with Mr. Stadnyk, his former spouse and certain entities controlled
by them (collectively, the "Stiomi Sellers") in connection with the
acquisition of LLC Stiomi Holding ("Stiomi Holding"), a farming
company located in the Khmelnytskyi region of Ukraine. In April
2012, Kernel Holding and some other buyers (collectively, the
"Stiomi Buyers") entered into master purchase agreement to acquire
Stiomi Holding from the Stiomi Sellers, and as of June 30, 2018,
the consideration paid for Stiomi Holding by the Stiomi Buyers
amounted to US$24 million.  A final payment was due and payable
only after fulfilment of certain conditions to the satisfaction of
the Stiomi Buyers and subject to rights of set-off in respect of
claims against the Stiomi Sellers. The Stiomi Buyers submitted
several claims to the Stiomi Sellers in respect of the
non-fulfilment of the Stiomi Sellers' obligations.  In December
2012, the Kernel Holding received a request for arbitration from
the Stiomi Sellers in which the Stiomi Sellers claimed amounts
alleged to be payable to them.

In February 2018, the arbitral tribunal delivered its award, which
was partly challenged by the Stiomi Buyers in the High Court in
London. Attachment orders were obtained by the Stiomi Sellers in
Switzerland, but were ultimately dismissed by the Geneva Court of
Appeal.

Kernel Holding S.A. (herein "Kernel") disclosed that the Board of
Directors of Kernel recommends the annual general meeting of
shareholders to be held on 10 December 2020 to approve the dividend
of US$ 0.42 per share for the financial year ended on 30 June 2020
and to delegate the to the board of directors to set up record and
payment dates for the dividends distribution.  The recommended
dividend implies 30% payout ratio and represents 68% dividend
increase year-on-year.

Since FY2014, Kernel paid a fixed annual dividend of US$0.25 per
share.

Kernel is the world's leading and the largest in Ukraine producer
and exporter of sunflower oil, and major supplier of agricultural
products from the Black Sea.




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

GLOBAL TRADING: Placed Into Provisional Liquidation
---------------------------------------------------
Global Trading Europe Ltd has been placed into provisional
liquidation following a hearing at the High Court in Manchester on
January 8, 2021, after application by the Insolvency Service on
behalf of the Secretary of State for Business, Energy and
Industrial Strategy.

The Official Receiver has been appointed as the provisional
liquidator and has responsibilities to protect the company's assets
pending the outcome of a petition to wind up the company in the
public interest.

As provisional liquidator, the Official Receiver will:

   * take control of the company from those currently responsible;
   * take steps to protect the company's assets; and
   * provide a point of contact for those who have had dealings
     with the company.

The provisional liquidator also has the power to investigate the
affairs of the company to protect assets including any third party,
or trust monies, or assets in the possession of, or under the
control of the company.

The case is now subject to High Court action and no further
information will be made available until the petition is heard on
March 16, 2021.

All public enquiries concerning the affairs of the company should
be made to: The Official Receiver, Public Interest Unit, 2 Floor, 3
Piccadilly Place, London Road, Manchester, M1 3BN, or via
PIU.North@insolvency.gov.uk.

Global Trading Europe Ltd -- company registration number 10983973
-- was incorporated on September 27, 2017. The company's registered
office is at Unit 3 Car Wash Part, Upchurch House, Abbey Gate,
Leicester, LE4 0AA

The petition was presented under s124A of the Insolvency Act 1986.
The Official Receiver was appointed as provisional liquidator of
the company on January 8, 2021 by HHJ Cawson QC, a Judge of the
High Court.

Company Investigations, part of the Insolvency Service, uses powers
under the Companies Act 1985 to conduct confidential fact-finding
investigations into the activities of live limited companies in the
UK on behalf of the Secretary of State for Business, Energy &
Industrial Strategy (BEIS).


INEOS QUATTRO: S&P Lowers Senior Secured Debt Rating to 'BB'
------------------------------------------------------------
S&P Global Ratings has lowered to 'BB' from 'BB+' its issue ratings
on the senior secured debt of petrochemicals company INEOS Quattro
Holdings Ltd. (INEOS Quattro), formerly known as INEOS Styrolution
Holding Ltd. S&P has also revised the recovery ratings on the
senior secured debt downward to '3' from '2', reflecting recovery
prospects in the 50%-70% range (rounded estimate: 60%). These
actions reflected its estimation of lower recovery prospects for
the senior secured debt following changes that INEOS Quattro has
announced to the proposed refinancing of its bridge facility and an
existing term loan at Inovyn.

INEOS Quattro has announced that it plans to increase the total
size of the senior secured term loans to EUR2.9 billion from EUR2.6
billion, and the senior secured notes to EUR1.2 billion from EUR1
billion. The company plans to downsize the senior unsecured notes
to EUR500 million from the EUR1 billion it initially anticipated,
which in its view reduces the cushion available to the senior
secured debtholders.

S&P is affirming its 'B+' issue rating on the company's EUR500
million senior unsecured debt, reflecting the debt's subordinated
ranking. The recovery rating on this debt remains unchanged at '6',
indicating its expectation of no recovery in the event of default.

The 'BB' long-term issuer credit rating and negative outlook on
INEOS Quattro remain unchanged, as the proposed changes to the
capital structure do not change the overall quantum of debt and
will not affect the company's credit metrics significantly. The
negative outlook on INEOS Quattro reflects the likelihood of a
downgrade if S&P's view of the credit quality of the wider INEOS
group worsened. This takes into account recent debt-funded
acquisitions, combined with bottom-of-the-cycle conditions in 2020,
resulting in its view of elevated leverage at the group level.

Issue Ratings - Recovery Analysis

Key analytical factors

-- The existing and new senior secured debt facilities have an
issue rating of 'BB', the same level as the long-term issuer credit
rating. The recovery rating is '3', with recovery prospects in the
50%-70% range (rounded estimate: 60%).

-- The recovery rating is supported by limited prior-ranking
liabilities and a cushion from the subordinated senior unsecured
debt available to the senior secured debtholders in the event of
default.

-- The senior unsecured notes have an issue rating of 'B+', two
notches below the level of the long-term issuer credit rating. The
recovery rating is '6', with recovery prospects in the 0%-10% range
(rounded estimate: 0%).

-- The current and new facilities are issued by subsidiaries of
INEOS Quattro, the rated parent and owner of a newly formed group
composed of Inovyn, INEOS Styrolution, and BP Petrochemicals.

Simulated default assumptions

  Year of default: 2026
  Jurisdiction rank: Group A

Simplified waterfall

-- EBITDA at emergence after recovery adjustment: EUR845 million.

    This factors in:

    --Minimum capital expenditure (capex) at 2.0% of pro forma
annual average revenue, based on the group's average minimum capex
requirement in future years;

     --Standard cyclicality adjustment of 10% for the commodity
chemicals industry; and

     --Operational adjustment of 30% to reflect the group's large
scale, integrated and cost-competitive asset base, along with its
geographical and product diversity.

-- Multiple: 5.5x

-- Gross enterprise value at default: EUR4.65 billion

-- Net enterprise value after administrative costs (5%): EUR4.4
billion

-- Estimated priority claims (outstanding securitization program):
EUR598 million*

-- Remaining recovery value: EUR3.8 billion

-- Estimated senior secured debt claims: EUR6.0 billion*

-- Recovery rating on the senior secured debt: 3 (50%-70%; rounded
estimate: 60%)

-- Estimated senior unsecured debt claims: EUR0.5 billion*

-- Recovery rating on the senior unsecured debt: 6 (0%-10%;
rounded estimate: 0%)

*All debt amounts include six months of prepetition interest.

  Ratings List
  
  Downgraded  
                             To From
  INEOS Quattro Finance 2 Plc
  INEOS Styrolution Group GmbH
  INEOS US Petrochem LLC
  Ineos 226 Ltd

   Senior Secured            BB      BB+
    Recovery Rating        3(60%)   2(70%)

  Ratings Affirmed  

  INEOS Quattro Finance 1 Plc

   Senior Unsecured     B+
    Recovery Rating    6(0%)




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

[*] BOOK REVIEW: Mentor X
-------------------------
The Life-Changing Power of Extraordinary Mentors
Author: Stephanie Wickouski
Publisher: Beard Books
Hard cover: 156 pages
ISBN: 978-1-58798-700-7
List Price: $24.75

Order this Book: https://is.gd/EIPwnq

Long-time bankruptcy lawyer Stephanie Wickouski at Bryan Cave
impressively tackles a soft problem of modern professionals in an
era of hard data and scientific intervention in her third published
book entitled Mentor X. In an age where employee productivity is
measured by artificial intelligence and resumes are prescreened by
computers, Stephanie Wickouski adds spirit and humanity to the
professional journey.

The title is disarmingly deceptive and book browsers could be
excused for assuming this work is just another in a long line of
homogeneous efforts on mentorship. Don't be fooled; Mentor X is
practical, articulate and lively. Most refreshingly, the book
acknowledges the most important element of human development: our
intuition.

Mrs. Wickouski starts by describing what a mentor is and
distinguishes that role from a teacher, coach, role model, buddy or
boss. Younger professionals may be skeptical of the need for a
mentor, but Mrs. Wickouski deftly disabuses that notion by relating
how a mentor may do nothing less than change the course of a
protege's life. Newbies to this genre need little convincing
afterwards.

One of the book's worthiest contributions is a definition of mentor
that will surprise most readers. Mentors are not teachers, the
latter of which impart practical knowledge. Instead, according to
Mrs. Wickouski, her mentors "showed me secrets that I could learn
nowhere else. They showed me how doors are opened. They showed me
how to be an agent of change and advance innovative and
controversial ideas." What ambitious professional doesn't want more
of that in their life?

The practicality of the book continues as Mrs. Wickouski outlines
the qualities to look for in a mentor and classifies the various
types of mentors, including bold mentors, charismatic mentors, cold
and distant mentors, dissolute mentors, personally bonded mentors,
younger mentors, and unexpected mentors. Mentor X includes charts
and workbooks which aid the reader in getting the most out of a
mentor relationship. In a later chapter, Mrs. Wickouski provides an
enormously helpful suggestion about adopting a mentor: keep an open
mind. Often, mentors will come in packages that differ from our
expectations. They may be outside of our profession, younger, less
educated, etc . . . but the world works in mysterious ways and Mrs.
Wickouski encourages readers to think about mentors broadly.  In
this modern era of heightened workplace ethics, Mrs. Wickouski
articulates the dark side of mentors. She warns about "dementors"
and "tormentors" -- false mentors providing dubious and sometimes
self-destructive advice, and those who abuse a mentor relationship
to further self-interested, malign ends, respectively. She
describes other mentor dysfunctions, namely boundary-crossing,
rivalry, corruption, and a few others. When a mentor manifests such
behaviors, Mrs. Wickouski counsels it's time to end the
relationship.

Mrs. Wickouski tells readers how to discern when the mentor
relationship is changing and when it is effectively over. Those
changes can be precipitated by romantic boundaries crossed,
emergence of rivalrous sentiment, or encouragement of unethical
behavior or corruption. Mrs. Wickouski aptly notes that once
insidious energies emerge, the mentorship is effectively over.

At this point, certain readers may say to themselves, "Okay, I've
got it. Now I can move on." Or, "My workplace has a formal
mentorship program. I don't need this book anymore." Or even,
"Can't modern technology handle my mentor needs, a Tinder of
mentorship, so to speak?"

Mrs. Wickouski refutes that notion. She analyzes how many mentoring
programs miss the mark. In one of the best passages in the book,
Mrs. Wickouski writes, "Assigning or brokering mentors negates the
most critical components of a true mentor–protege relationship:
the individual process of self-awareness which leads a person to
recognize another individual who will give the advice singularly
needed. That very process is undermined by having a mentor assigned
or by going to a mentoring party." She does not just criticize; she
offers a solution with three valuable tips for choosing the right
mentor and five qualities to ascertain a true mentor in the
unlimited sea of possibilities.

Next, Mrs. Wickouski distinguishes between good advice and bad
advice. She punctuates that discussion with many relevant and
relatable examples that are easy to read and colorfully enjoyable.
This section includes interviews with proteges who have had
successful mentorships. The punchline: in the best mentorships, the
parties harmoniously share personal beliefs and values. Also
important, the protege draws inspiration and motivation from the
mentor. The book winds down as usefully as it started: Mrs.
Wickouski interviews proteges, asking them what they would have
done differently with their mentors if they could turn back the
clock. A common thread seems to be that the proteges would have
gone deeper with their mentors -- they would have asked more
questions, spent more time, delved into their mentors' thinking in
greater depth.

The book wraps up lightly by sharing useful and practical
suggestions for maintenance of the mentor relationship. She answers
questions such as, "Do I invite my mentor to my wedding?" and "Who
pays for lunch?"

Mentor X is an enjoyable read and a useful book for any
professional in any industry at, frankly, any point in time.
Advanced individuals will learn much from the other side, i.e., how
to be more effective mentors. Mrs. Wickouski does a wonderful job
of encouraging use of that all knowing aspect of human existence
which never fails us: proper use of our intuition.

                         About The Author

Stephanie Wickouski is widely regarded as an innovator and
strategic advisor. A nationally recognized lawyer, she has been
named as one of the 12 Outstanding Restructuring Lawyers in the US
by Turnarounds & Workouts and as one of US News' Best Lawyers in
America. She is the author of two other books: Indenture Trustee
Bankruptcy Powers & Duties, an essential guide to the legal role of
the bond trustee, and Bankruptcy Crimes, an authoritative resource
on bankruptcy fraud. She also writes the Corporate Restructuring
blog.



                           *********


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

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

Copyright 2021.  All rights reserved.  ISSN 1529-2754.

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

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

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


                * * * End of Transmission * * *