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

                          E U R O P E

          Thursday, January 28, 2021, Vol. 22, No. 15

                           Headlines



F R A N C E

GOLDSTORY SAS: Moody's Assigns B2 CFR, Outlook Stable
HESTIAFLOOR 2: Moody's Completes Review, Retains B2 CFR
LABORATOIRE EIMER: Fitch Rates EUR250MM Unsec. Debt 'CCC+(EXP)'


G E R M A N Y

[*] GERMANY: One in Five Companies Face Liquidity Squeeze


G R E E C E

INTRALOT SA: Moody's Cuts CFR to Ca Following Lock-up Agreement


I R E L A N D

AVOCA CLO XV: Fitch Affirms B- Rating on Class F-R Debt


I T A L Y

TEAMSYSTEM HOLDING: Fitch Affirms 'B' IDR, Outlook Stable


L U X E M B O U R G

EP BCO SA: Moody's Completes Review, Retains Ba3 CFR
HIDROVIAS INT'L: Fitch Assigns BB Rating on Unsecured Notes
HIDROVIAS INT'L: Moody's Rates New Sr. Unsecured Notes 'Ba3'


N E T H E R L A N D S

Q-PARK HOLDING: Moody's Completes Review, Retains Ba3 CFR


P O R T U G A L

EDP-ENERGIAS DE PORTUGAL: Fitch Rates New Hybrid Notes 'BB(EXP)'
EDP-ENERGIAS DE PORTUGAL: Moody's Gives Ba2 Rating on Hybrid Notes
INFRAESTRUTURAS DE PORTUGAL: Moody's Completes Ratings Review


S P A I N

OBRASCON HUARTE: Fitch Lowers LongTerm IDR to 'C'


U N I T E D   K I N G D O M

ALPHA TOPCO: Moody's Completes Review, Retains B2 CFR
ARQIVA BROADCAST: Moody's Completes Review, Retains Ba2 CFR
BURY FOOTBALL: Administrator Proposes Fresh Rescue Deal
DEBENHAMS PLC: Court Appoints Official Receiver as Liquidator
JERROLD FINCO: Fitch Rates GBP500MM Secured Notes 'BB-'

MICRONAS LTD: To Shut Down in April, 83 Jobs Affected
NEWDAY FUNDING: Fitch Gives B+(EXP) Rating on Class F Notes
PAPERCHASE: Permira Set to Acquire Business in Pre-Pack Deal
RATIONALE ASSET: Insolvency Service Winds Up Business
TULLOW OIL: Gets Add'l. Month From Banks, In Creditor Talks


                           - - - - -


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F R A N C E
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GOLDSTORY SAS: Moody's Assigns B2 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service has assigned a B2 corporate family rating
and a B2-PD probability of default rating to Goldstory SAS, the
parent company of French jeweller THOM Group. Moody's has also
assigned a B2 rating to the EUR600 million guaranteed senior
secured notes consisting of a fixed rate and a floating rate
tranche to be issued by Goldstory SAS. The outlook for Goldstory
SAS is stable.

Concurrently, Moody's has withdrawn the B3 CFR and the B3-PD
probability of default rating of THOM Group. The rating of the
senior secured bank credit facility at THOM has been upgraded to B2
from B3.

The outlook for THOM Group has been changed to stable from
negative.

"The B2 rating factors in the resilience of THOM's earnings and
cashflow, which despite the coronavirus epidemic were better than
Moody's expected in 2020, and its moderately leveraged capital
structure after the refinancing," said Vincent Gusdorf, Vice
President-Senior Credit Officer and lead analyst for THOM. "Despite
the November lockdown in France, THOM's reported EBITDA remained
stable during the October-December 2020 period, a quarter during
which the company generates the majority of its earnings, and this
therefore provides greater financial flexibility for fiscal year
2021."

RATINGS RATIONALE

The private equity funds Bridgepoint and Qualium, which currently
hold 59% and 7% of THOM, respectively, will sell their stakes.
Simultaneously, the private equity fund Altamir will increase its
ownership to 56% from 25%, with the remaining stakes owned by
management (20%), two family offices and a few individuals.

Goldstory SAS, a holding company sitting above THOM, will issue
EUR600 million of senior secured notes to finance the change in
ownership. The proceeds, along with EUR144 million of cash and
EUR360 million of equity, will finance an acquisition price of
EUR520 million and refinance EUR565 million of the company's
existing debt.

THOM's earnings and cash flow were more resilient than Moody's
expected in fiscal 2020. This has resulted in Moody's assigning a
B2 CFR to Goldstory SAS, a B2 rating to its EUR600 million senior
secured notes and upgrading the rating of the senior secured bank
credit facility at THOM to B2 from B3. Even though THOM's stores
were closed for several months, revenue fell by only 9% on a
like-for-like basis, to EUR670 million. Earnings were much more
stable than Moody's expected, with Moody's-adjusted EBITDA down by
just 3% to EUR202 million (including operating leases). THOM
significantly cut its costs, notably its staff and rent expenses.
As a result, its Moody's-adjusted debt/EBITDA increased to only
5.3x in fiscal 2020 from 4.8x in fiscal 2019, while THOM's previous
B3 rating assumed that leverage would spike to 6x-7x.

The B2 rating is also supported by THOM's good performance during
the Christmas period, which usually accounts for most of its
earnings. THOM generated EUR76 million of reported EBITDA
(excluding operating leases) during the October-December 2020
period, a similar level compared to the previous year, despite the
November lockdown.

Moody's-adjusted gross debt will stand at EUR1.1 billion in fiscal
2021 (ended on September 30), comprising notably the EUR600 million
of senior secured notes and EUR450 million of operating leases. In
contrast, gross debt stood at EUR884 million in fiscal 2020.
Moody's expects THOM to be well-positioned in the B2 rating
category, with Moody's-adjusted debt/EBITDA forecast at about 5x in
fiscal 2021, although the ongoing pandemic creates many
uncertainties.

THOM's liquidity is adequate pro forma the refinancing. Although
expected cash at closing is only EUR25 million, it will have access
to a EUR90 million fully undrawn revolving credit facility (RCF)
maturing in 2025. There is no significant term debt maturity until
2026 when the senior secured notes will mature. This liquidity
level covers the company's large working capital requirements
resulting from the high seasonality of THOM's and Stroili's
operations, notably because of Christmas sales and promotional
periods. Peak drawing under the RCF tends to occur between October
and early December, reflecting the holiday season's inventory
buildup.

STRUCTURAL CONSIDERATIONS

Following the refinancing, Moody's has moved the CFR to Goldstory
SAS' level, which stands now at the top of the restricted group,
from THOM Group's level. The capital structure includes a super
senior RCF of EUR90 million maturing in August 2025 which will
replace the existing RCF and term loan B and EUR600 million of
senior secured notes maturing in 2026, which Moody's rates B2, in
line with the CFR.

Moody's assessment factors in the assumption that the guarantor
coverage will amount to at least 90% of THOM's revenue and EBITDA.
The super senior RCF and the senior secured notes are secured by
share pledges, bank accounts, intragroup receivables and
significant intellectual property. However, there are substantial
limitations on the enforcement of the guarantees and collateral
under French law. The super senior RCF shall get priority over
enforcement proceeds thanks to the intercreditor agreement.

The probability of default rating of B2-PD reflects the use of a
50% family recovery assumption, reflecting a capital structure
comprising bonds and bank debt with loose covenants.

RATIONALE FOR THE STABLE OUTLOOK

The stable rating outlook reflects Moody's expectation that THOM
will maintain its high profit margin and positive free cash flow
(FCF) generation, despite the possibility of new lockdowns because
of the coronavirus pandemic. Moody's forecasts that sales will
improve in fiscal 2021 and leverage will trend towards 5x as a
result.

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

The rating agency could upgrade THOM if it achieves a
Moody's-adjusted debt/EBITDA trending towards 4.5x on a sustained
basis. A positive rating action would also require a substantial
increase in Moody's-adjusted FCF, underpinned by
higher-than-expected revenue growth, as well as a clear commitment
to sustaining credit ratios commensurate with a higher rating.

Conversely, the rating agency could downgrade THOM if its
Moody's-adjusted debt/EBITDA significantly exceeds 5.5x on a
sustained basis. Moody's could also lower THOM's rating if its
Moody's-adjusted FCF becomes negative for a prolonged period, as a
result of weakened operating performance or higher-than-expected
capital spending. A sharp deterioration in economic or sanitary
conditions, resulting in operating conditions worse than those in
fiscal 2020, could also trigger a downgrade.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Retail Industry
published in May 2018.

COMPANY PROFILE

Headquartered in Paris, France, Goldstory SAS is one of the leading
jewellery and watch retail chains in Europe, with €670 million of
revenue in fiscal 2020. THOM's business model relies on directly
operated stores, mostly located in shopping malls. Its main banners
— Histoire d'Or, Marc Orian and Stroili — have a
long-established history in France and Italy as generalist
jewellery retailers. As of September 30, 2020, the company directly
operated 1,005 stores and four e-commerce websites.


HESTIAFLOOR 2: Moody's Completes Review, Retains B2 CFR
-------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Hestiafloor 2 and other ratings that are associated with
the same analytical unit. The review was conducted through a
portfolio review discussion held on January 19, 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.

Hestiafloor 2's B2 corporate family rating reflects its established
market position in the attractive and growing vinyl contract market
across Europe; good geographical and end-market diversification
with a long track record of profitable growth and strong free cash
flow generation. This is further reflected by the company's ability
to protect its margins in the current market environment and
Moody's expectation of solid cash flow generation and good
liquidity position in 2020.

At the same time, the CFR is constrained by the high leverage which
is expected to remain above 6.0x over the next 12-18 months due to
the coronavirus pandemic; uncertainty around the pace of demand
recovery, given the ongoing spread of the virus and the weaker
macroeconomic environment; and the competitive market with high
pricing pressure.

The principal methodology used for this review was Manufacturing
Methodology published in March 2020.


LABORATOIRE EIMER: Fitch Rates EUR250MM Unsec. Debt 'CCC+(EXP)'
---------------------------------------------------------------
Fitch Ratings has assigned Laboratoire Eimer Selas' (Laboratoire
Eimer) EUR250 million planned new senior unsecured debt tranche a
senior unsecured rating of 'CCC+(EXP)'/RR6, as part of a broader
refinancing of the group's existing debt. Laboratoire Eimer is the
top entity that indirectly owns the French lab testing group CAB
societe d exercice liberal par actions simplifiee (CAB, also known
as Biogroup).

Laboratoire Eimer's 'B(EXP)' Long-Term Issuer Default Rating (IDR)
with Stable Outlook balances aggressive leverage with a
predominantly debt-funded opportunistic, albeit well-executed,
acquisitive business strategy and rapidly scaling up operations
with superior operating and free cash flow (FCF) margins, which
Fitch regards among the highest in the sector.

The Stable Outlook reflects Fitch’s expectation of the company's
steady operating and financing profiles supported by the traits of
its infrastructure-like healthcare business model and expectation
of a consistent financial policy keeping its leverage at around
8.0x funds from operations (FFO) adjusted leverage level.

The assignment of the final instrument rating is contingent upon
completion of the refinancing and the receipt of final
documentation conforming materially to information already
received.

KEY RATING DRIVERS

Refinancing Rating Neutral: Fitch views the announced refinancing
overall as rating neutral. Fitch views the intention to increase
total debt by around EUR180 million as credit dilutive, as the new
senior secured and senior unsecured debt will be used to partly
refinance the term loan B (TLB), redeem the second lien tranche and
a PIK note, which was issued outside the rating perimeter.

However, the higher indebtedness will be mitigated by Biogroup's
stable organic performance, boosted by the contribution from the
first full-year consolidation of the transformational acquisition
of CMA-Medina completed in 2020 and Covid-19 testing, which will
remain a material contributor to sales and EBITDA in 2021.
Excluding the one-time higher projected cash tax from the
coronavirus-related extra business activity, Fitch estimates FFO
adjusted leverage at below 8.0x in 2021 immediately after the
refinancing.

Financial Policy Drives IDR: The IDR is mainly driven by Fitch’s
perception of Biogroup's improved financial discipline and funding
mix to support the company's highly acquisitive growth strategy.
The Stable Outlook reflects Fitch’s assumptions of more balanced
funding for future acquisitions, depending on their scale, with a
stronger contribution from FCF (given FCF margin estimated in the
low double digits post-2021). This will help alleviate the previous
overstretched use of debt financing, which contributed to high
leverage in 2019-2020.

M&A Still Poses Event Risks: M&A will remain a critical element of
Biogroup's business strategy, and uncertainty over its magnitude
and funding poses event risks. Fitch’s rating case assumes around
EUR800 million of M&A a year. Smaller or bolt-on M&A could be
accommodated by FCF, while mid-scale and larger acquisitions would
be funded by a combination of new debt and equity. Departure from
the established asset selection and integration practices, or more
aggressive financial policies would pressure the ratings.

Stabilising Leverage, Deleveraging Potential: Based on Fitch’s
M&A (and funding) assumptions and steady organic performance, Fitch
projects stabilisation of FFO adjusted leverage at around 8.0x,
supporting the Stable Outlook. Strong internal cash generation
provides scope for deleveraging capacity, although the growing cash
reserves will likely be reinvested into M&A instead of debt
reduction.

Adequate Financial Flexibility: Despite higher debt cash service
requirements due to contemplated incremental debt, the FFO fixed
charge cover ratio will remain adequate at marginally above 2.0x.
The proposed refinancing will diversify Biogroup's funding mix,
extending debt maturities from 2026 to 2027-2029.

Defensive Business Model: Biogroup's business model is defensive
with stable, non-cyclical revenues and high and resilient operating
margins. As one of the largest players in the French sector, the
company benefits from scale-driven operating efficiencies, in
addition to high barriers to entry as it operates in a highly
regulated market.

Given its growing coverage in France and Belgium, and a focused
approach to M&A, Biogroup is well-placed to continue capitalising
on favourable sector fundamentals and deriving value from its
buy-and-build strategy, which should allow it to grow faster than
the market. Concentration risks due to narrow product
diversification, and still large exposure to France, are
counter-balanced by high operating profitability and strong cash
flow generation.

Healthy Cash Flow Generation: The acquisition of CMA-Medina and
Covid-19 related testing boosted EBITDA and FCF in 2020 to all-time
highs. The pandemic-induced service volumes will gradually subside
from 2021 onward, but the business will continue generating
superior operating margins. Given contained trade working capital
and low capital intensity, this translates into sustained sizeable
FCF and high FCF margins estimated in the low double digits, which
is solid for the rating. Strong cash flow profitability remains a
key factor, mitigating periods of high leverage.

Medium-Term Boost from Pandemic: Fitch expects Covid-19 testing
accounted for a substantial share of 2020 sales and earnings. This
should continue to materially support sales and EBITDA, albeit at a
slower pace from 2021 onwards. Fitch believes demand for this
testing service will continue after 2021, despite the recent launch
of mass vaccination in the EU, given the uncertainties over the
ability to reach herd immunity estimated at 60%-70% before the
start of the fall/winter season, as well as the current lack of
clinical studies over the ability of vaccinated persons to continue
spreading the coronavirus, and the need to refresh immunisation
every two to three years.

We therefore project the contribution from this business service to
remain through 2024, albeit with declining volumes and prices from
what appears to be the peak 2020 levels. Even if demand declines to
negligible levels by 2023-2024, Biogroup's operating profile will
remain defensive and resilient.

DERIVATION SUMMARY

Similar to other sector peers, such as Synlab Bondco plc
(B+/Stable) and Inovie Group (B(EXP)/Stable), Biogroup benefits
from a defensive, non-cyclical business model with stable demand
given the infrastructure-like nature of lab-testing services. This
has been reinforced by strongly improved trading during the
pandemic. Biogroup's high and stable operating and cash flow
margins are considered the highest in peer comparison, which Fitch
largely attributes to the particularities of the French regulatory
regime.

The lab-testing market in Europe has attracted significant private
equity investment, leading to highly leveraged financial profiles.
The one-notch difference between Biogroup and Inovie Group against
Synlab is due to the latter's lower FFO adjusted leverage following
recent debt repayment, leading to approximately 2x lower leverage
than its 'B' rated peers.

KEY ASSUMPTIONS

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

-- Organic sales growth at 0.6% per year for 2021-2023,
    reflecting the triennial agreement renewal in France;

-- 2020 completed acquisition contributing to 20% of growth in
    2020 and 2021;

-- M&A of EUR800 million per year in 2021-2023, using a mix of
    additional debt, FCF and new equity;

-- EUR10 million of recurring expenses (above FFO) and general
    expenses and EUR10 million of M&A-driven trade working capital
    outflows a year until 2023; Fitch projects a larger trade
    working capital outflow and recurring expenses in 2020
    following investments in new Covid-19 tests; large 2020 trade
    working capital outflow mainly driven by one-off delay of
    social health insurance payments and expected to reverse in
    2021;

-- EBITDA margin improvement following planned business additions
    and as low-risk synergies materialise on earlier acquisitions;

-- Capex at around 2% per year on average until 2023; and

-- No dividend payments throughout the life of CAB's debt
    facilities.

KEY RECOVERY ASSUMPTIONS.

We follow a going-concern approach over balance-sheet liquidation
given the quality of CAB's network and strong national market
position:

-- Going-concern EBITDA reflects breakeven FCF, implying a 30%
    discount to projected 2020 EBITDA, adjusted for a 12-month
    contribution of all 2020 acquisitions, as well as the
    additional Covid-19 testing activity at a normalised medium
    term level anticipated to remain by 2023.

-- Distressed enterprise value (EV)/EBITDA multiple of 5.5x,
    which reflects CAB's strong market position albeit with
    exposure to only two geographies, including dominant exposure
    to France. This implies a discount of 0.5x against Synlab's
    distressed EV/EBITDA multiple of 6.0x;

-- Structurally higher-ranking super senior debt of around EUR20
    million at operating companies to rank on enforcement ahead of
    RCF and TLB;

-- The senior secured TLB and senior secured notes jointly at ca
    EUR2.25 billion and RCF of EUR270 million rank pari passu
    after super senior debt, which Fitch assumes to be fully drawn
    upon distress; unsecured senior bond ranks third in priority;

-- After deducting 10% for administrative claims from the
    estimated post-restructuring EV, Fitch’s waterfall analysis
    generates a ranked recovery for the senior secured debt in the
    'RR3' band leading to an assigned senior secured rating of
    'B+'; for the senior unsecured notes Fitch estimates their
    recovery in the 'RR6' band with a Waterfall Generated Recovery
    Computation (WGRC) of 0%, corresponding to a 'CCC+(EXP)'
    senior unsecured note rating.

RATING SENSITIVITIES

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

-- A larger scale, increased product/geographical
    diversification, full realisation of contractual savings and
    synergies associated with acquisitions and/or voluntary
    prepayment of debt from excess cash flow, followed by:

-- FFO adjusted gross leverage (pro forma for acquisitions) below
    6.5x on a sustained basis;

-- FFO fixed charge cover (pro forma for acquisitions) trending
    above 2.5x on a sustained basis.

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

-- Weak operating performance with neutral to negative like-for
    like sales growth and declining EBITDA margins due to a delay
    in M&A integration, competitive pressures or adverse
    regulatory changes;

-- Failure to show significant deleveraging towards 8.0x at least
    two years before major contractual debt maturities (2019:
    9.5x, pro-forma: 9.0x) on an FFO adjusted gross basis due to
    lost discipline in M&A;

-- FCF margin reducing towards mid-single digits such that
    FCF/total debt declines to low single digits; and

-- FFO fixed charge cover below 2.0x (pro forma for acquisitions;
    2019: 2.1x, pro-forma: 2.2x) on a sustained basis.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: Fitch views Biogroup's liquidity as
comfortable. This is based on a high starting year-end cash balance
estimated at around EUR230 million in December 2020. Fitch also
notes improved projected internal liquidity generation, boosted by
the integration of the credit-accretive transformation acquisition
of CMA-Medina and incremental Covid-19 related testing activity,
which the company can use at its discretion for bolt-on M&A.

The proposed refinancing will widen Biogroup's funding mix and
improve its debt maturity profile extending its debt maturities
from 2026 to 2027/2029. An upsized RCF to EUR270 million from
EUR120 million will also enhance the company's liquidity headroom
and financial flexibility.




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G E R M A N Y
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[*] GERMANY: One in Five Companies Face Liquidity Squeeze
---------------------------------------------------------
Christian Kraemer at Reuters reports that one in five German
companies is facing a liquidity squeeze amid a second lockdown that
has seen most stores and schools shuttered since mid-December, a
survey of 18,000 businesses by the DIHK chambers of commerce
showed.

That figure is down from 27% in November but shows that government
aid is proving insufficient to fully compensate for lost revenues,
Reuters notes.

Some 5% of companies that participated in the DIHK study said they
faced the threat of insolvency, down from around 9% in November,
according to a summary of the survey to be published on Jan. 26 and
seen by Reuters on Jan. 25.

Especially hard hit are creative and artistic businesses, where a
third said they saw a risk of insolvency, followed by tourism
agencies with 30%, taxi companies with 27%, and restaurants and
bars with 20%, Reuters discloses.

The survey showed the percentage of companies that reported their
equity capital had shrunk over recent months stood at 25%, compared
with 40%, Reuters relays.

Chancellor Angela Merkel and state leaders agreed last week to
extend a lockdown until mid-February as Germany, once seen as a
role model for fighting the pandemic, struggles with a second wave
of infections, Reuters recounts.

According to Reuters, Ms. Merkel said at the time that it would be
made easier for businesses to access coronavirus aid and that a
waiver on insolvency filings for firms hit by the pandemic would be
extended until the end of April.




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G R E E C E
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INTRALOT SA: Moody's Cuts CFR to Ca Following Lock-up Agreement
---------------------------------------------------------------
Moody's Investors Service has downgraded Intralot S.A.'s corporate
family rating to Ca from Caa2, its probability of default to Ca-PD
from Caa2-PD and the instrument rating of its guaranteed senior
unsecured notes, issued by Intralot Capital Luxembourg S.A., to Ca
from Caa2. The outlook on all ratings remains negative.

On January 14, 2021, Intralot announced that it entered into a
lock-up agreement in support of a new proposed capital structure
with an ad hoc group of bondholders[1] who represent 75% of the
senior unsecured notes due 2021 ("2021 SUNs") and 13% of the senior
unsecured notes due 2024 ("2024 SUNs").

Intralot is offering to exchange the full EUR250 million of 2021
SUNs for EUR205 million of new senior secured notes due 2025 ("2025
SSNs") issued by Intralot Inc. In parallel, the company is offering
to exchange part of the EUR500 million 2024 SUNs for up to 49% of
the share capital of an indirect parent of Intralot Inc. Both
exchanges are cross-conditional.

Upon completion, Moody's will likely consider the debt haircut,
maturity extension and debt-to-equity swap as a distressed
exchange.

RATINGS RATIONALE

The rating action reflects the very high likelihood of default and
weaker recovery expected as a result of the new proposed capital
structure and in particular the debt to equity swap. There is also
still some uncertainty with regards to the company's operating
performance over the next 12-18 months and whether this will be
sufficient to support a sustainable capital structure over the
longer-term, even with the proposed debt restructuring.

There are some uncertainties as to whether the proposed
restructuring will proceed as planned and what the final capital
structure will be. This is because the proposed transaction is
dependent on the approval of holders outside the AHG who are
eligible to tender up to EUR110 million of the 2024 SUNs. If
successful, the debt haircut could therefore rise from EUR113
million (EUR45 million for the 2021 SUNs and EUR68 million backstop
commitment for the 2024 SUNs provided by the AHG) to EUR223
million. Depending on the final terms of the proposed debt
restructuring it is likely that there will be a weaker recovery on
the 2024 SUNs compared to the new 2025 SSNs (former 2021 SUNs)
because of the difference in security package and position within
the corporate structure.

Moody's believe that a sustained recovery in the company's
profitability will be constrained by the prolonged period of
coronavirus-related disruptions and the tenuous macroeconomic
recovery Moody's forecasts for 2021. Furthermore, Intralot has
become highly reliant on its US division where the outlook remains
uncertain because of a limited visibility on the run-rate EBITDA in
this jurisdiction.

STRUCTURAL CONSIDERATIONS

The EUR250 million 2021 SUNs and EUR500 million 2024 SUNs rank pari
passu and share the same guarantee packages. However, in accordance
with the proposed terms, the 2024 SUNs would become structurally
subordinated to the new 2025 SSNs (former 2021 SUNs). The new 2025
SSNs will be issued within a separated restricted group and will
benefit from the security on certain US assets, the main
contributors to profit.

LIQUIDITY

Moody's considers that Intralot's liquidity is weak due to the
maturity of the EUR250 million bonds in September 2021. However,
the contemplated exchanges will push this maturity to at 2024 and
will reduce the interest burden by EUR7-13 million, depending on
the amount of 2024 SUNs tendered.

As of September 2020, the company reported EUR98 million of
non-restricted cash on its balance sheet.

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

Upward pressure on the ratings could arise if the recovery on the
ratings is higher than forecast by Moody's, which could be
supported by a stronger and more sustainable recovery in
profitability leading to positive free cash flow. A positive rating
action would require that Intralot completes successfully the
proposed distressed exchange in a manner that leaves it with
adequate liquidity.

The ratings could be downgraded if the debt restructuring causes a
lower recovery than the one implied by the Ca CFR.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Gaming
Methodology published in October 2020.

COMPANY PROFILE

Headquartered in Athens, Intralot is a global supplier of
integrated gaming systems and services. The company designs,
develops, operates and supports customized software and hardware
for the gaming industry and provide technology and services to
state and state licensed lottery and gaming organizations
worldwide. It operates a diversified portfolio across 42
jurisdictions and is listed on the Athens stock exchange.




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I R E L A N D
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AVOCA CLO XV: Fitch Affirms B- Rating on Class F-R Debt
-------------------------------------------------------
Fitch Ratings has affirmed all tranches of Avoca CLO XV and XIX DAC
and revised the Outlooks on the sub-investment grade tranches'
ratings to Stable from Negative.

      DEBT                   RATING            PRIOR
      ----                   ------            -----
Avoca CLO XV DAC

A-R XS1768030295       LT  AAAsf  Affirmed     AAAsf
B-1-R XS1768030451     LT  AAsf   Affirmed     AAsf
B-2-R XS1768030618     LT  AAsf   Affirmed     AAsf
C-R XS1768030964       LT  Asf    Affirmed     Asf
D-R XS1768031004       LT  BBBsf  Affirmed     BBBsf
E-R XS1768031426       LT  BBsf   Affirmed     BBsf
F-R XS1768031772       LT  B-sf   Affirmed     B-sf

Avoca CLO XIX DAC

A-1 XS1869413143       LT  AAAsf  Affirmed     AAAsf
A-2 XS1879601349       LT  AAAsf  Affirmed     AAAsf
B-1 XS1869413226       LT  AAsf   Affirmed     AAsf
B-2 XS1869413499       LT  AAsf   Affirmed     AAsf
C XS1869413572         LT  Asf    Affirmed     Asf
D XS1869413655         LT  BBB-sf Affirmed     BBB-sf
E XS1869413812         LT  BB-sf  Affirmed     BB-sf
F XS1869413903         LT  B-sf   Affirmed     B-sf

TRANSACTION SUMMARY

The transactions are cash flow CLOs, mostly comprising senior
secured obligations. They are both within their reinvestment period
and are actively managed by KKR Credit Advisors (Ireland).

KEY RATING DRIVERS

Asset Performance Stable

The transactions are still in their reinvestment period and the
portfolios are actively managed by the collateral manager. Asset
performance has been stable in both CLOs since their last review.
Both transactions are below par by 0.1% as of the latest investor
report available. All coverage tests are passing in both CLOs.
Exposure to assets with a Fitch-derived rating of 'CCC+' and below
as calculated by Fitch as of 18 January 2021 is 7.3% for Avoca CLO
XV (or 7.8% including the unrated names, which Fitch treats as
'CCC' per its methodology, while the manager can classify as 'B-'
for up to 10% of the portfolio) and 7.6% for Avoca CLO XIX (or 8.3%
when including the unrated names), compared to the 7.5% limit.
There is no exposure to defaulted assets in either CLO.

Stable Outlooks Based on Coronavirus Stress

The revision of the Outlooks on Avoca CLO XV's class E and F notes
and on Avoca CLO XIX's class E and F notes to Stable from Negative
reflects that their current rating is passing the sensitivity
analysis Fitch ran in light of the coronavirus pandemic. For the
sensitivity analysis Fitch notched down the ratings for all assets
with corporate issuers with a Negative Outlook (23.8% of the
portfolio of Avoca CLO XV and 26.0% of the portfolio of Avoca CLO
XIX) regardless of sector and ran the cash flow analysis based on
the stable interest rate scenario.

All tranches show resilience under the coronavirus baseline
sensitivity analysis with a cushion, which is reflected in the
Stable Outlooks.

'B'/'B-' Portfolio

Fitch assesses the average credit quality of the obligors to be in
the 'B'/'B-' category in both portfolios. The Fitch weighted
average rating factor (WARF) calculated by Fitch of the current
portfolio as of 18 January 2021 is 34.89 for Avoca CLO XV and 35.04
for Avoca CLO XIX, and by the trustee is 34.65 for Avoca CLO XV
and34.62 for Avoca CLO XIX, compared with their respective maximum
covenant of 34.4 and 34.7. The Fitch WARF would increase to 37.16
after applying the coronavirus stress for Avoca CLO XV and to 37.66
for Avoca CLO XIX.

High Recovery Expectations

Of the portfolios, at least 97.7% comprises senior secured
obligations. Fitch views the recovery prospects for these assets as
more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch weighted average recovery rate of the current
portfolio is reported by the trustee at 66.7% for Avoca CLO XV and
66.3% for Avoca CLO XIX as of 31 December 2020.

Portfolio Well Diversified

Both portfolios are well diversified across obligors, countries and
industries. The top 10 obligor concentration is no more than 15.6%
in both CLOs, and no obligor represents more than 2.0% of the
portfolio balance in either CLOs.

RATING SENSITIVITIES

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

-- At closing, Fitch used a standardised stress portfolio
    (Fitch's Stressed Portfolio) that was customised to the
    portfolio limits as specified in the transaction documents.
    Even if the actual portfolio shows lower defaults and smaller
    losses (at all rating levels) than Fitch's Stressed Portfolio
    assumed at closing, an upgrade of the notes during the
    reinvestment period is unlikely as the portfolio credit
    quality may still deteriorate, not only through natural credit
    migration, but also through reinvestments.

-- Upgrades may occur after the end of the reinvestment period on
    better-than-expected portfolio credit quality and deal
    performance, leading to higher credit enhancement and excess
    spread available to cover for losses in the remaining
    portfolio.

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

-- Downgrades may occur if the build-up of credit enhancement
    following amortisation does not compensate for a larger loss
    expectation than initially assumed due to unexpectedly high
    levels of default and portfolio deterioration. As the
    disruptions to supply and demand due to the pandemic become
    apparent, loan ratings in those sectors will also come under
    pressure. Fitch will update the sensitivity scenarios in line
    with the view of its Leveraged Finance team.

Coronavirus Downside Sensitivity

Fitch has added a sensitivity analysis that contemplates a more
severe and prolonged economic stress caused by a re-emergence of
infections in the major economies. The downside sensitivity
incorporates the following stresses: applying a notch downgrade to
all Fitch-derived ratings in the 'B' rating category and applying a
0.85 recovery rate multiplier to all other assets in the portfolio.
For typical European CLOs this scenario results in a rating
category change for all ratings.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven 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 seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

Avoca CLO XIX DAC, Avoca CLO XV DAC

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. Fitch has not reviewed the results of
any third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

The majority of the underlying assets or risk presenting entities
have ratings or credit opinions from Fitch and/or other Nationally
Recognized Statistical Rating Organizations and/or European
Securities and Markets Authority registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk presenting entities.

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action

Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.




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

TEAMSYSTEM HOLDING: Fitch Affirms 'B' IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed the Issuer Default Rating (IDR) of
Italy-based provider of financial and accounting enterprise
resource planning (ERP) software TeamSystem Holding S.p.A at 'B'
with a Stable Outlook. Fitch has also affirmed the senior secured
instruments ratings of TeamSystem S.p.A. at 'B+'/'RR3', and
assigned an expected rating of 'B+(EXP)'/'RR3' to the proposed debt
issuance by Brunello Bidco S.p.A. (Brunello).

Brunello is an entity incorporated by private equity (PE) funds
advised by Hellman & Friedman, the company's key shareholders, to
complete the re-leveraging of TeamSystem. Following the
transaction, the issuer will be owned by a different fund advised
by the same PE house. Debt proceeds are being used to pay a
purchase price to the selling funds, refinance the outstanding
debt, and buy out some minority interests.

The rating action follows Fitch's expectations of an increase in
leverage related to the announced recapitalisation transaction.
Fitch expects funds from operations (FFO) gross leverage to be 7.3x
at end-2021 before easing to 6.5x by end-2022, remaining within
Fitch’s thresholds for a 'B' rating.

The assignment of final ratings on the instrument issued by
Brunello is contingent on the completion of the transaction and the
receipt of final documents conforming to information already
received. Fitch expects to withdraw the ratings of the senior
secured notes and super senior debt issued by TeamSystem S.p.A.
after they have been repaid.

KEY RATING DRIVERS

Increase in Leverage: Pro forma for the announced transaction,
Fitch expects FFO gross leverage to increase to 7.3x at the
end-2021 but to stay within Fitch’s downgrade sensitivity of 7.5x
for a 'B' rating. Higher interest expenses, affected by the
incremental increase in senior secured notes, reduce Fitch’s FFO
interest coverage metric to about 2.0x.

Revenue growth and continued margin expansion should ease
TeamSystem's leverage to below Fitch’s upgrade sensitivity of
6.0x only after 2023. The expected increase in financial risk from
higher leverage is mitigated by Teamsystem's healthy free cash flow
(FCF) conversion, resulting from high margins, limited
working-capital cash requirements and scalable capital expenditure.
Fitch recognises full equity features of the EUR300 million
payment-in-kind toggle notes issued by Brunello Midco 2 S.p.A.
which do not have any cross-default provision affecting the senior
secured notes.

Aggressive Financial Policy: TeamSystem's re-leveraging supports
its key PE shareholder's switching of the control of the company to
another fund managed by the same house. Planned new debt will
finance the price paid to the selling party, the reimbursement of
outstanding debt and the buyout of minority interests. Fitch views
this transaction as similar to a dividend recapitalisation and
aggressive in terms of financial policy.

TeamSystem has maintained high leverage over the past eight years,
with shareholders exploiting capital-market opportunities to
utilise the company's debt capacity in full. The company has grown
and significantly improved its operating profile during this
period.

Strong ERP Markets: The Italian ERP market has steadily grown in
the past 15 years, outperforming the country's GDP gains and only
moderately affected by downturns. Legislative changes and
technological progress have acted as key investment drivers for
businesses and professionals. TeamSystem consolidated its leading
role in the small enterprises and professional segments, with a
market share of more than 40% in 2019.

Italy's strong digitalisation trend, including electronic invoicing
legislation, creates good opportunities for TeamSystem's
cloud-based business model, with potential annual revenue growth
well over the 6% overall annual market growth forecasted for
2020-2024.

Consolidation in Micro Business and Cloud: TeamSystem aims to
consolidate its growth from the past five years, by expanding its
cloud-based services, focusing on micro businesses and conducting
further product innovation.

The company's client base almost doubled since 2018, due to the
onboarding of small and micro businesses subscribing to the basic
electronic invoicing offer. This new customer segment, mostly
cloud-native, offers good up-selling and cross-selling
opportunities. In addition, the management team is determined to
transition existing customers to its cloud services and to offer
them innovative products, such as access to receivables trading
platforms.

Our forecasts take into account organic growth and ongoing bolt-on
acquisitions. Fitch expects revenue CAGR of about 9% in 2020-2023,
with around half the turnover increase coming from demand
stimulated by electronic invoice legislation.

Increase in Recurring Business: TeamSystem benefits from highly
recurrent revenues, with effective product design in customer
verticals leading to the accelerating shift to subscription-based
contracts. Recurring revenues, helped by high switching costs,
exceed 75%, with a low churn rate varying from about 6% for SMEs to
around 10% for micro businesses. Fitch believes that recurring
revenues could increase to more than 80% of total revenue. However,
this is likely to take more than two years due to the intrinsic
churn of micro business clients.

Moderate Margin Increases: Fitch acknowledges TeamSystem's pricing
power, high operating leverage and successful record of cost
reductions. However, some savings delivered in 2020 may be hard to
replicate once extraordinary pandemic-related measures are lifted,
and weaker Italian economy could reduce the company's ability to
increase prices. Fitch conservatively assumes a 2pp improvement in
Fitch’s Fitch-defined EBITDA margin over 2020-2023.

Italian Economy Remains Risky: The pandemic harmed Italy's economy
in 2020. The country suffered a second wave of coronavirus
infections in autumn 2020, accelerating rapidly in October and
November. Very high government debt and structurally weak economic
growth will continue to weigh on the country's economy despite its
strong fundamentals. TeamSystem's business was resilient in 2020,
with increasing recurring revenues. However, a slow recovery in the
macroeconomic environment may impair the company's growth
prospects, reduce its SME client base and reduce its pricing
power.

DERIVATION SUMMARY

TeamSystem's rating is based on its higher leverage profile and its
leading position in the Italian accounting and ERP software market.
The company benefits from its extensive sales force and value-added
reseller network; growing customer base, progressively
transitioning to cloud-based systems; low churn rates; and
increasing pricing power. Like Nexi S.p.A. (BB-/Rating Watch
Positive), TeamSystem should gain from the digitalisation of the
Italian economy, supported by ad hoc legislative initiatives.
Compared to Nexi, TeamSystem has higher gross leverage, lower
deleveraging capacity and a lower Fitch-defined EBITDA margin in a
more competitive environment.

The company compares well with other 'B' category technology
platforms such as Centurion Bidco S.p.a. (Engineering; B+/Stable)
and Hurricane Bidco Limited (Paymentsense; B/Stable). Engineering
displays higher scale, lower capex requirements and lower leverage
compared to TeamSystem. Paymentsense has leverage and margins that
are similar to those of TeamSystem. However, TeamSystem has a more
diversified subscription base than Paymentsense, with a high
proportion of recurring revenue.

TeamSystem is also broadly comparable with other peers that Fitch
covers in its technology public rating and Credit Opinion
portfolios. It has similar geographical leadership and scale and
has progressed with its cloud transition. While its FFO gross
leverage is in line with the typical leverage of peers rated 'B' or
below, its EBITDA margin and projected FCF are above average.

KEY ASSUMPTIONS

-- Revenue growth of 12% in 2021 and around 8% in 2022 and 2023

-- EBITDA margin dilution to 38.9% in 2021 followed by an
    increase to 40.9% in 2023

-- Capex of around 6% (as a percentage of revenue) in 2021-2023

Key Recovery Assumptions based on the new proposed capital
structure:

The recovery analysis assumes that the group would be considered a
going concern in bankruptcy, and that the company would be
reorganised rather than liquidated, given the technological and
legislative knowledge within the group and the wide customer base
operating with TeamSystem's product suites, between licenses and
subscriptions packages.

Fitch has also assumed there would be 10% of administrative
claims.

Fitch assesses the group's going-concern EBITDA on a
post-restructuring basis at approximately EUR150 million, deriving
from a scenario of lower growth prospects, impaired pricing power
and higher competitive intensity. Fitch uses a 6.0x enterprise
value (EV)/EBITDA multiple, in line with the average of Fitch’s
existing distressed multiples distribution for business services
and technology companies in the wider 'B' category. This is based
on the strong industry dynamics for TeamSystem in the Italian ERP
sector, high barriers to entry, and a good market share position
with prospects for sustained positive cash flow generation.

Fitch assumes the EUR180 million revolving credit facility (RCF) to
be fully drawn upon default. The RCF ranks super senior and ahead
of the senior secured notes while Fitch treats the EUR300 million
holdco notes as equity and exclude them from Fitch’s debt
quantum. Fitch’s analysis indicates a recovery of 'RR3'/55% for
the senior secured notes, implying a notch uplift from the IDR.

RATING SENSITIVITIES

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

-- FFO leverage below 6x;

-- FFO interest coverage sustained above 2.5x;

-- FCF margin consistently above 10%;

-- Continued growth of cloud software services revenue, above 20%
    of sales;

-- Continuation of disciplined M&A to acquire technology or key
    talent with limited additional debt

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

-- FFO leverage sustainably above 7.5x as a result of smaller
    margins or material debt-funded acquisitions

-- FFO interest coverage below 1.5x

-- FCF margin consistently below 5%;

-- Evidence of a lack of consolidation of the company's position
    in the SME, micro business and cloud markets;

-- Decline in EBITDA margin towards 32% due to loss of internal
    efficiency and pricing power

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

TeamSystem's liquidity is satisfactory in light of its FCF
generation of the availability of an EUR180 million RCF. After the
refinancing planned for January 2021, the company will need to
rebuild its liquidity buffer, which Fitch expects to be initially
limited after transaction-related payments.

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.




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

EP BCO SA: Moody's Completes Review, Retains Ba3 CFR
----------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of EP BCo SA and other ratings that are associated with the
same analytical unit. The review was conducted through a portfolio
review discussion held on January 19, 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.

The Ba3 corporate family rating of EP BCo SA reflects the strategic
location of Euroports' key terminals through strong terminal
presence in Northern and Southern Europe and in China. It also
incorporates long standing relationships with a well-diversified
group of large industrial customers and contractual take or pay or
volume requirement features which somewhat offset the volatility of
underlying commodities handled and helped Euroports to show a
relatively resilient operating performance so far amid turbulences
in global trade-flows caused by the Covid-19 pandemic. The rating
is also supported by the growth potential derived from revenue
synergies involving the activities of the new majority shareholder
Monaco Resources Group, although they might be delayed due to the
Covid-19 pandemic.

However, the rating of EP BCo SA is constrained by the
concentration of Euroports' operating cash flows on the paper &
pulp and sugar industries which together represent more than 40% of
the company's reported EBITDA, and exposure to economic cycles,
negative sector trends or adverse weather conditions and high
financial leverage evidenced by Moody's adjusted Funds from
Operation (FFO) to Debt ratio of 8% for 2019 on a proforma basis
for the June 2019 transaction. The rating also factors in a
de-leveraging path which will essentially rely on EBITDA growth in
the absence of debt amortizing.

The principal methodology used for this review was Privately
Managed Port Companies published in September 2016.


HIDROVIAS INT'L: Fitch Assigns BB Rating on Unsecured Notes
-----------------------------------------------------------
Fitch Ratings has assigned a 'BB' rating to the proposed benchmark
size senior unsecured notes to be issued by Hidrovias International
Finance S.a r.l. and guaranteed by Hidrovias do Brasil S.A
(Hidrovias). Proceeds from the senior notes will be used for the
tender offer of its outstanding 2025 notes and the remainder, if
any, for general corporate purposes. Fitch currently rates
Hidrovias's Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) 'BB'/Outlook Negative.

The Negative Outlook for Hidrovias reflects Fitch's expectation
that leverage will remain pressured in the medium term as the
company moves forward with its ongoing capex plan. Hidrovias is
still in the process of ramping up its operations while seeking
opportunities to leverage its business scale and improve its client
diversification. Fitch expects net adjusted debt to EBITDA ratios
to be 4.9x and 4.2x during 2020-2021, indicating higher leverage
than Fitch's rating sensitivity expectations. Fitch expects net
leverage to decline to below 4.0x only by 2022. If this target is
not achieved, a downgrade may follow.

Hidrovias' ratings reflect the company's stable operating cash flow
generation derived from its competitive position in the waterway
transportation industry in the North and Central-West of Brazil and
the Parana-Paraguay river system, where logistics infrastructure is
relatively limited. They also reflect its favorable business model,
with around 68% of EBITDA coming from solid long-term take-or-pay
contracts that mitigate volume volatility.

The ratings also incorporate Fitch's expectation that Hidrovias
will continue to maintain a solid liquidity position and manageable
debt-amortization schedule with no exposure to refinancing risks in
the short to medium term. The ratings are tempered by the company's
relatively small business scale compared with peers in the
transportation sector in Brazil, its client concentration, FX risk
exposure and its relatively short track record of operations and
access to capital markets.

KEY RATING DRIVERS

Take-or-Pay Contracts Protect Cash Flow: Hidrovias' ratings
incorporate its stable cash flow generation, which reflects the
majority of its EBITDA being generated under long-term take-or-pay
contracts. These contracts provide cash flow visibility, as they
contain features that allow inflation-adjusted price increases and
the pass-through of fuel charges. Considering the ramp-up of
projects and contracts through 2021, Hidrovias has around 68% of
its total capacity contracted under long-term take-or-pay
agreements. Its largest contract duration is more than 12 years.
Fitch expects Hidrovias' annual EBITDA to average BRL676 million
during 2020-2021.

Challenge to Increase Client Diversification: Hidrovias' exhibits
portfolio concentration risk, as its main clients are Vale S.A.,
COFCO Group and Alumina do Norte do Brasil S.A. (Alunorte), which
represent between 16%-22% of EBITDA each, respectively. This client
concentration risk was highlighted in 2018, when the company lost a
client, Multigrain S.A., which represented around 16% of EBITDA.
Positively, the financial impact was mitigated by the BRL306
million of penalties Multigrain paid to Hidrovias for terminating
the take-or-pay contract. There are opportunities for
diversification, as the company is able to add new clients and
sectors to its portfolio, including the projects for salt
operations in Brazil's Rio Grande do Norte state and new service
activities in Santos Port.

Route and Production Concentration: In terms of products, grains
and fertilizer, iron ore and bauxite represent 47%, 38% and 15% of
Hidrovias' 2019 EBITDA, respectively. In terms of routes, the
Miritituba-Vila do Conde and Corumba-San Nicolas routes each
represent approximately 37% of the company's total EBITDA each
year. Approximately 60% and 40% of total EBITDA is generated in
Brazil and Uruguay/Paraguay, respectively.

FX Risk Exposure: Hidrovias faces exposure to FX risk, as the
majority of its debt is U.S. dollar denominated. This is partially
mitigated by strong EBITDA generation (around 60%) in hard
currency, as well as its high cash balances (around 90%) that are
denominated in U.S. dollars. This has been key to mitigate currency
mismatch risk effects in short term cash outflow as it relates to
the company's semi-annual bond coupon payments.

As of the LTM ended Sept. 30, 2020, Hidrovias's net leverage, per
Fitch's criteria, reached 5.0x. The company has financial covenants
on its bond issuance (3.5x, excluding the cabotage business). The
breach of this covenant does not trigger debt acceleration, but it
limits the company's ability to raise new debt (above USD150
million) and to pay dividends. Under the current proposed bond
issuance, the company intends to move the covenant to 4.5x in 2021,
4.0x in 2022 and 3.5x in 2023.

Good Performance Despite Drought: Hidrovias has shown solid
operational performance with increasing volumes, improved
competitiveness and market-share gains. In the short term, the
company is facing challenges on its south corridor operations with
unprecedented drought in the Parana-Paraguay waterway, which has
been driving volumes down. This has been partly offset by the
take-or-pay contracts framework as it protects the company from
adverse hydrological risks and by FX rates. Nevertheless, this
limits the company's growth opportunities to operate spot
contracts, and Fitch expects some decline in operating margins for
the corridor during 2021.

Growing CFFO, Capex to Pressure FCF: The ongoing business expansion
is leading to a negative free cash flow (FCF) generation, and for
2020 Fitch forecasts FCF to be negative around BRL130 million.
During 2021capex will increase to support the development of salt
and santos operations as well as other ongoing projects/expansions
, which should lead to negative FCF of around BRL200 million. For
2022, a likely increase in capex to expand the operations in the
North Corridor should lead to a negative FCF of around BRL192
million, considering dividends payments of around 25% of net
income. Hidrovias paid its first dividends amounting to BRL136
million in May 2019. Given the covenant limitations, Fitch did not
include any dividend payouts in its forecasts during 2020-2021.

Deleveraging to Take Longer Than Expected: The impact of FX
volatilities and ongoing capex plans have postponed Hidrovias
deleverage trend to beyond 2021, per Fitch's criteria. Management's
strategy in regarding business diversification/growth, its
discretionary associated capex, and return to shareholders will be
key to define leverage trends going forward. Fitch expects net
leverage ratios to be 4.9x and 4.2x during 2020-2021, respectively,
and to decline to below 4.0x only by 2022. The maintenance of the
'BB' rating is linked to leverage moving around 3.5x in the medium
to long term, in line with main peers.

DERIVATION SUMMARY

Hidrovias is well positioned in the 'BB' rating category relative
to transportation/logistics peers across the region, which are
generally rated in the 'BB' to 'BBB' categories. Hidrovias' main
constraint derives from its business concentration and short track
record of operations. Its ratings incorporate a still-low track
record of operational performance, capital structure and scale
versus Brazilian peers, such as MRS Logistica S.A. (BB/Negative),
Rumo S.A. (BB/Negative), and VLI S.A. (National Long-term Rating
AAA[bra]/Stable). Hidrovias is starting to build a good track
record in terms of profitability, FCF generation and net leverage
metrics based on take-or-pay contracts, which should help in the
comparison going forward.

Hidrovias' expected 2020-2021 net leverage metrics are higher than
net leverage expected for other rated Brazilian peers in the
transportation/logistics sector with more mature operations. Rumo,
VLI and MRS Logistica are forecast to reach 2020 net leverage
ratios of 2.8x, 3.2x and 1.0x, respectively. Hidrovias' ratings
factor in the expectation of the company's net adjusted leverage
ratio trending to under 4.0x by 2022.

KEY ASSUMPTIONS

-- Strong Revenue growth in 2020 reflecting FX rates and ramping
    up of operations, with 20% growth in 2021 reflecting new
    operations in Santos, Salt and ongoing growth volumes on the
    North Corridor segment;

-- EBITDA margin around 49% in 2020 and 47% in 2021;

-- Salt and Santos Project capex, USD18 million and USD50
    million;

-- Total capex of around BRL350 million in 2020 and BRL530
    million in 2021;

-- No dividends distributions during 2020 and 2021.

RATING SENSITIVITIES

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

-- Hidrovias' Foreign Currency IDR is capped at Brazil's Country
    Ceiling considering the majority of the company's growth
    opportunities continue to originate within the country.

For the National-Scale and Local Currency ratings, the following
sensitivities apply:

-- Broader client diversification;

-- Net leverage consistently below 3.0x and gross leverage below
    4.5x;

-- Interest coverage consistently above 4.0x;

-- Maintenance of strong liquidity to avoid refinancing risks,
    with cash/short-term debt ratio at a minimum of 1.5x.

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

-- Recurring negative FCF;

-- Net leverage consistently above 4.0x during 2021-2022;

-- Deterioration of liquidity position, with the cash-to-short
    term debt ratio below 1.0x.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity Position: Fitch expects Hidrovias to maintain a
solid cash position while conservatively managing its FCF
generation with strong growth strategy. The company's cash position
as of Sept. 30, 2020 was very strong at BRL1.1 billion, while
short-term debt was BRL124 million, excluding leasing obligations.
The company presents a very comfortable debt-amortization schedule
in the medium term, with an average of BRL59 million due between
2021 and 2024. Hidrovias does not have a committed standby credit
facility. Almost of all of its debt is U.S. dollar denominated,
while around 90% of the company's cash position is also held in
U.S. dollars. This strong hard currency cash balance helps to
mitigate FX risk mismatch related to its short-term debt
obligations and/or bond coupon payment.

As of Sept. 30 2020, Hidrovias' total adjusted debt, per Fitch's
calculation, was BRL4.1 billion, which is mainly composed of BRL3.3
billion of cross-border bonds due 2025 and BRL731 million of Banco
Nacional de Desenvolvimento Economico e Social (BNDES) financing.
Fitch includes in the debt calculation BRL107 million (USD21.5
million) of guarantees related to one of its 50% joint ventures,
Obrinel S.A. domiciled in Uruguay.


HIDROVIAS INT'L: Moody's Rates New Sr. Unsecured Notes 'Ba3'
------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to the proposed
senior unsecured notes due up to 10 years to be issued by Hidrovias
International Finance S.ar.l. and fully and unconditionally
guaranteed by Hidrovias do Brasil S.A. ("HBSA") and its fully-owned
subsidiaries, except for the bauxite operations subsidiaries
(guarantor group). At the same time, Moody's affirmed Hidrovias do
Brasil S.A.'s Ba3 corporate family ratings and the senior unsecured
rating of the notes issued by Hidrovias International Finance
S.ar.l. due 2025. The outlook is stable.

The proposed issuance is part of HBSA's liability management and
growth strategies, and proceeds will be used to fund a tender offer
for Hidrovias International Finance S.ar.l.'s outstanding $575
million notes maturing in 2025 and for investments in 2021-22. The
rating of the proposed notes assumes that the final transaction
documents will not be materially different from draft legal
documentation reviewed by Moody's to date and assume that these
agreements are legally valid, binding and enforceable.

Ratings assigned:

Hidrovias International Finance S.àr.l.

Proposed Gtd senior unsecured notes due in up to 10 years: Ba3

Ratings affirmed:

Hidrovias do Brasil S.A.

Corporate Family Rating: Ba3

Hidrovias International Finance S.àr.l.

5.9500% senior unsecured notes due 2025: Ba3

The outlook for the ratings is stable.

RATINGS RATIONALE

HBSA's Ba3 ratings primarily reflect the company's solid business
model, with about 70% of its revenue and EBITDA ensured by
long-term take-or-pay agreements with strong off-takers. The
agreements contain minimum volume guarantees and cost pass-through
clauses, which translate into predictable cash flow, high capacity
utilization rates and high operating margins for the company.
Moody's estimate that the existing agreements will bring around
BRL6.5 billion in EBITDA from 2021 until 2030, sufficient to cover
the company's total debt by 1.6x, and five out of the seven
existing contracts — all except HBSA's take-or-pay agreements
with COFCO and Sodrugestvo in the south, which represent about 5%
of the company's annual EBITDA — will remain valid during most of
the tenor of the notes, maturing after 2029.

The positive outlook for agricultural production and waterborne
transportation in Brazil and Paraguay, and the strategic location
of HBSA's operations also support the ratings. The ratings also
incorporate HBSA's good liquidity profile and Moody's expectation
that HBSA's credit metrics will continue to improve from 2021
onward with the ramp-up of its northern operations and new
contracts.

The ratings are constrained by the company's short track record of
operations and its small size relative to its peers that Moody's
rate. The high degree of product and geographic concentration also
constrains the ratings because it exposes the company to adverse
weather conditions that could limit agricultural production and
river navigability. There is also a high degree of client
concentration, although clients' good credit quality and history of
contract compliance mitigate any related risk. Finally, given that
the totality of HBSA's debt is indexed to the US dollar, the
company's gross leverage ratios are exposed to currency volatility
risk.

The proposed issuance is part of HBSA's liability management and
growth strategies, and proceeds will be used to fund a tender offer
for Hidrovias International Finance S.a.r.l 's outstanding notes
due 2025 and to fund investments in 2021-22. The proposed notes
will have the same guarantor group of the existing notes due 2025,
which generates approximately 80% of HBSA's total EBITDA and will
hold nearly 85% of the company's total debt pro forma to the
proposed issuance.

HBSA will use any proceeds from the issuance in excess of the
tender offer to fund investments in the Santos port and salt
operations, and to purchase new barges to serve the growing demand
in the company's northern operations during 2021-22. Accordingly,
the issuance can increase HBSA's total debt by about $100 million,
leading to an immediate 0.8x increase in leverage. However, the
company's cash position would also increase until 2022 as the
company gradually invest in the growth of its business.

HBSA's credit metrics are falling behind Moody's initial estimates
due to a delay in deleverage following operational setbacks and the
local currency depreciation since 2018. The company's adjusted
leverage was 6.5x at the end of September 2020, but Moody's expect
the ratio to decline to around 4-5x in 2021-22, as HBSA benefits
from the new contracts and spot volumes, which fully compensates
for the volume lost with the Mitsui contract cancellation. In 2018,
HBSA announced the cancellation of the take-or-pay contracts
between its subsidiaries and Mitsui subsidiaries Multigrain S.A.
and Multigrain Trading AG. The cancellation slowed HBSA's
deleveraging process, cutting its annual EBITDA by BRL40 million
and reducing its capacity utilization, but it also brought BRL388
million in proceeds that sit on the company's cash position as a
legal compensation for the cancellation. Accordingly, HBSA's net
leverage ratio is at a more adequate level of 4.7x at the end of
September 2020, and in dollar terms, gross and net leverage stood
at 5.6x and 4.0x at the end of September 2020, respectively.

The proposed issuance will improve the company's debt amortization
schedule and enhance its financial flexibility. HBSA had BRL1.1
billion in cash at the end of September 2020, well above its
minimum requirements of around BRL300 million, and only around
BRL50-100 million in debt maturities per year over the next four
years. Pro forma to the new issuance, the existing cash will cover
debt maturities through 2026. In Moody's view, HBSA's strong cash
position, history of positive free cash flow and comfortable debt
amortization schedule are key to mitigate operational and execution
risks, and support the company's credit quality as long as HBSA
maintains a certain degree of financial discipline.

The stable outlook incorporates our expectations that HBSA's
operations will perform in line with the terms and conditions
established by the existing take-or-pay agreements, and that the
company will prudently manage its dividend distribution and future
investments to preserve its good liquidity profile.

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

Although unlikely in the near term, an upgrade could occur if HBSA
is able to increase its size and widen its client, product and
geographic diversification while maintaining its current business
model and profitability levels. Quantitatively, a rating upgrade
would require the maintenance of adjusted leverage (measured as
debt/EBITDA) below 3.0x and interest coverage (measured by adjusted
FFO + interest/interest) above 4.5x on a consistent basis. The
maintenance of a strong liquidity profile would also be necessary
for an upgrade.

The ratings could be downgraded if HBSA's operations or business
profile deteriorates because of the loss of any existing
take-or-pay agreement without a financial compensation or because
of a debt-financed expansion into the spot market. Quantitatively,
a downgrade could occur if leverage remains above 4.5x and interest
coverage below 3.5x without prospects for improvement. A
deterioration in the company's liquidity profile, stemming from
large shareholder distribution or aggressive financial policies,
would also result in a downgrade of the ratings.

The principal methodology used in these ratings was Shipping
Methodology published in December 2020.

Headquartered in Sao Paulo, Brazil, HBSA is South America's largest
independent provider of integrated logistics focused on waterway
transportation. The company's operations include shipping,
transshipment, storage and port services for dry bulk cargo,
including grains, iron ore, bauxite, fertilizers and pulp in the
Parana-Paraguay waterway and Amazon river systems. For the 12
months ended September 2020, the company generated BRL1.5 billion
($264 million) in revenue with an adjusted EBITDA margin of 42.7%,
coming mainly from shipping activities (80% of total) and other
logistics services (20%). The company's Northern operations, which
comprise mainly the transportation of grains represent around 46%
of the company's total EBITDA, followed by the Southern operations
(37%) and the Coastal Navigation operations (18%), which relate
mainly to iron ore and bauxite transportation, respectively. Around
60% of the company's total revenue is generated in Brazil, with the
remaining 40% generated in Paraguay and Uruguay.




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

Q-PARK HOLDING: Moody's Completes Review, Retains Ba3 CFR
---------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Q-Park Holding 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 19, 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.

The Ba3 corporate family rating of Q-Park Holding B.V. reflects its
strong asset-ownership model with an average remaining contract
life of around 50 years which provides good cash flow visibility,
and flexibility over pricing for a large part of its operations in
particular in parking facilities legally-owned or held under long
term leases. The rating also incorporates Q-Park's focus on
off-street and multi-functional parking facilities protecting its
competitive position and the high degree of geographic
diversification, as well as a positive operating track-record.

Q-Park's rating is constrained by its high leverage, which Moody's
expects will now be higher than the forecasts made prior to the
current crisis, and by uncertainties around the level of protection
financial policy will provide creditors. A weaker flexibility and
control over pricing under concessions contracts in France and
execution risk on Q-Park's growth strategy which largely relies on
its ability to further increase customers yields also play an
important role in the rating formulation. Finally travel
restrictions associated with the coronavirus pandemic have severely
impacted Q-Park's operating performance and while Moody's expects a
relatively swift rebound upon easing of those restrictions there
remains high uncertainty around the timing and scope of a traffic
recovery, which continues to weigh negatively on the rating.

The principal methodology used for this review was Privately
Managed Toll Roads Methodology published in December 2020.




===============
P O R T U G A L
===============

EDP-ENERGIAS DE PORTUGAL: Fitch Rates New Hybrid Notes 'BB(EXP)'
----------------------------------------------------------------
Fitch Ratings has assigned EDP - Energias de Portugal, S.A.'s (EDP,
BBB-/Positive) proposed deeply subordinated hybrid securities an
expected rating of 'BB(EXP)'. The proposed securities qualify for
50% equity credit. The assignment of the final rating is contingent
on the receipt of final documents conforming materially to the
preliminary documentation.

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

The proposed debt issue will increase the layer of hybrids in EDP's
capital structure and will help to increase the company's financial
flexibility. The hybrid bonds are being issued to finance or
refinance green projects (wind and solar).

KEY RATING DRIVERS

THE NOTES

Rating Reflects Deep Subordination: The proposed notes are rated
two notches below EDP's Long-Term Issuer Default Rating (IDR) given
their deep subordination and consequently, their lower recovery
prospects relative to the issuer's senior obligations in a
liquidation or bankruptcy, and the interest-deferral option. The
notes rank senior only to the claims of ordinary shareholders.

50% Equity Treatment: The proposed securities qualify for 50%
equity credit as they meet Fitch's criteria for deep subordination,
such as remaining effective maturity of at least five years, full
discretion to defer coupons for at least five years and limited
events of default. These are key equity-like characteristics,
affording EDP greater financial flexibility.

Cumulative Coupon Limits Equity Treatment: The coupon deferrals are
cumulative, which result in 50% equity treatment and 50% debt
treatment by Fitch of the hybrid notes. Despite the 50% equity
treatment, Fitch treats coupon payments as 100% interest. EDP will
be obliged to make a mandatory settlement of deferred interest
payments under certain circumstances, including the declaration of
a cash dividend. This is a feature similar to debt-like securities
and reduces the company's financial flexibility. Under Fitch's
criteria, the equity credit of 50% would be reduced to 0% five
years before the effective remaining maturity date.

Effective Maturity Date: The proposed notes' maturity is in excess
of 60 years. Fitch treats the day on which the replacement
intention language expires as an effective maturity date. Under the
instrument's terms, this date coincides with the second step-up
date, which is no earlier than 2046 (2041 if EDP is rated below
investment grade). From this date, the coupon step-up is within
Fitch's aggregate threshold rate of 100bp, but EDP will no longer
be subject to replacement intention language, which discloses the
company's intent to redeem the instrument at its call date with the
proceeds of a similar instrument or with equity.

Change-of-Control not Default Event: The change of control, if
followed by an event-driven downgrade, is designed to trigger an
interest-rate increase of 500bp to compensate creditors. However,
the issuer would have the right to redeem the notes in this
instance. Fitch believes that the change-of-control provision
cannot force an event of default as redemption is designed as an
option for the issuer and not a right of the creditor, while the
500bp increase is within the limit before annulling the equity
content of the instrument, according to Fitch’s methodology.

EDP

Deleveraging on Track: Fitch expects EDP to deleverage by 2022 to a
level consistent with a 'BBB' rating. Its Portuguese hydro asset
sale to Engie S.A. (A/Negative) and its partially equity-funded
acquisition of Viesgo (both closed in December 2020) should help
EDP achieve its net debt-to-EBITDA targets (as reported by EDP, not
including regulatory receivables) of below 3.2x by end-2020 and
3.0x by end-2022. Fitch's updated rating case foresees funds from
operations (FFO) net leverage at 4.3x by end-2022 (4.7x at
end-2019) compared with Fitch’s positive rating sensitivity of
4.5x.

Credit-Positive Hydro Sale: EDP's 1.7GW hydro asset sale for EUR2.2
billion to a consortium led by Engie was completed by mid-December
in line with the agreed terms. The transaction shaves about EUR150
million off EBITDA annually, under normalised hydro conditions,
marginally eliminates merchant risk from EDP's portfolio and
reduces concentration in Portugal. EDP will use the bulk of the
sale proceeds to reduce net debt, which is credit-positive and the
main driver of Fitch’s Positive Outlook.

Viesgo's Acquisition Supports Business Risk: Fitch estimates
Viesgo's acquisition will enhance EDP's consolidated business
profile by raising the regulated portion of the company's portfolio
to about 30%, from 27% at end-2019. Viesgo has a EUR1 billion
regulated asset base under perpetual licence, and 801 gross
megawatts (MW) of wind assets with seven years of average remaining
incentive life. Fitch sees the Spanish regulatory frameworks for
electricity distribution and renewables set until 2025 as fairly
supportive and predictable. The transaction will increase EDP's
EBITDA by almost EUR240 million (not including synergies) from
2021.

Moderate Coronavirus Impact: EDP reported a limited EBITDA decline
in 9M20 of 2% yoy. A fall in electricity demand, which affects its
distribution business in LatAm and retail activity in Iberia, and
the Brazilian real depreciation have been mostly offset by a
recovery in hydro production in Iberia, strong results in energy
management and capital gains from asset rotation. EDP estimates a
EUR3.7 billion EBITDA for 2020, which is in line with its guidance
before Covid-19. Brazil remains a key risk due to Covid-19.

No Major Working Capital Hit: EDP has not seen a material impact on
working capital from lower physical collections in Brazil and
suspended bill payments by customers in Iberia. Overall, exposure
to supply activity is low in terms of EBITDA (3% at end-2019). For
Brazilian networks that are also exposed to demand, the impact will
be partially mitigated by supportive measures from the government
and the regulator to part-finance cost over-runs, and address the
impact on liquidity from clients' and low-income families' higher
bad debts.

Medium-Term Growth Target on Track: EDP is progressing with the
implementation of its strategic plan for 2019-2022, with improved
visibility on the achievement of its medium-term growth targets. As
of September 2020, EDP had secured power purchase agreements for
6.5GW of renewable capacity growth for 2022, which is 86% of the
total 7GW for 2019-2022, and implemented around 80% of the BRL3.8
billion investments in transmission projects in Brazil with full
completion expected in 2021.

Asset Rotation Supports Growth: The sale of majority stakes in wind
farms, as part of EDP's recurring asset-rotation strategy has not
been affected by market turmoil stemming from the pandemic. The
transactions support EDP's faster business growth while protecting
the company's credit metrics and are a recurring operating cash
flow source. In 2020, EDP completed more than 55% of its EUR4
billion disposal plan, following the sale concluded in December
2020 of 805 gross MW wind and solar assets in Spain (242 gross MW)
and the US (450 net MW) with an enterprise value of EUR1.1 billion.
As a result, EDP completed about EUR1.5 billion sales related to
asset rotation in 2020.

DERIVATION SUMMARY

EDP is a vertically integrated utility and the incumbent in
Portugal. EDP, along with Iberdrola S.A. (BBB+/Stable) and Enel
S.p.A. (A-/Stable), anticipated the energy transition ahead of most
other European utilities, although it has a smaller scale and its
business risk profile is not fully comparable due to a lower share
of fully regulated businesses.

EDP benefits from a higher share of long-term contracted and
incentivised renewables business, which brought its overall
regulated plus long-term contracted share (excluding asset-rotation
capital gains) to a high 71% at end-2019. Its higher leverage and
higher business risk justify the two-and three-notch rating
differential, respectively, from Iberdrola and Enel, although this
could reduce following disposals in 2020.

We see a slightly stronger business risk profile in Naturgy Energy
Group, S.A. (BBB/Stable) than EDP, due to the former's larger share
in regulated business (networks) but this is partly offset by
Naturgy's bias towards more volatile gas activities, subdued growth
and a shareholder-friendly strategy. A one-notch rating
differential is currently justified by Naturgy's slightly stronger
business profile.

We do not apply a one-notch uplift to EDP's senior unsecured rating
as the company's fully regulated EBITDA share is below 50% (or 40%
plus 10% of contribution from renewables)

KEY ASSUMPTIONS

-- EBITDA of about EUR3.5 billion (excluding IFRS 16) in 2020 and
    a CAGR of about 4.5% for 2018-2022, due to organic growth
    (largely in renewables and transmission projects in Brazil)

-- Viesgo's acquisition will add about EUR238 million EBITDA
    (without synergies) from 2021

-- Average gross capex of about EUR3 billion (including financial
    investments) for 2019-2022

-- Asset rotation plan for a cumulative EUR4 billion during 2019
    2022

-- EUR2.2 billion of cash-in from the Portuguese hydro asset
    disposal in 4Q20

-- Dividends in line with a dividend floor of EUR0.19 a share

-- Brazilian real and US dollar to depreciate against the euro

RATING SENSITIVITIES

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

-- Improvement of the business mix with a higher EBITDA share of
    regulated activities

-- FFO net leverage trending towards 4.5x (2020E: 4.5x) and FFO
    interest coverage above 4.1x (2020E: 4.2x) on a sustained
    basis, assuming no major changes in the business mix other
    than that expected by Fitch

-- Sustained positive free cash flows (FCF) after divestments,
    together with a consistent narrowing of the tariff deficit in
    Portugal, in line with Fitch's expectations

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

-- FFO net leverage above 5.0x and FFO interest coverage below
    3.6x for a sustained period, for example as a result of delays
    in the divestment plan or greater regulatory or political
    scrutiny

-- Evolution of the business mix towards higher-risk activities
    or countries could weaken EDP's debt capacity

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: EDP had EUR1.8 billion of available cash and cash
equivalents, and EUR5.9 billion of available committed credit lines
at end-September 2020 (of which EUR5.5 billion were due after
2021). This liquidity, which includes a EUR1.02 billion capital
increase in August 2020, is sufficient to cover debt maturities,
the Viesgo acquisition and operating requirements until end-2022.

Standard Funding Structure: EDP has a largely centralised debt
structure with no impact on its ratings. Capital-market debt issued
by EDP is mostly via Dutch-registered finance subsidiary, EDP
Finance B.V. (BBB-/Positive). The relationship between EDP and EDP
Finance is governed by a keep-well agreement under English law.

EDP Brasil, which is 51%-owned by EDP and fully consolidated, is
ring-fenced, self-funded in local currency and non-recourse to EDP.
As of end-September 2020, about 80% of EDP Renovaveis' gross debt
was funded by parent EDP.

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.

EDP-ENERGIAS DE PORTUGAL: Moody's Gives Ba2 Rating on Hybrid Notes
------------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 long-term rating to
the Fixed to Reset Rate Subordinated Notes (the junior subordinated
"Hybrid") to be issued by EDP - Energias de Portugal, S.A. ("EDP").
The rating outlook is stable.

RATINGS RATIONALE

The Ba2 rating assigned to the Hybrid is two notches below EDP's
issuer rating of Baa3, reflecting the features of the Hybrid. Its
maturity is in excess of 60 years, it is deeply subordinated and
EDP can opt to defer coupons on a cumulative basis. The rating is
in line with that of the existing hybrid notes issued by the
company.

In Moody's view the Hybrid has equity-like features which allow it
to receive basket 'C' treatment (i.e. 50% equity and 50% debt) for
financial leverage purposes.

As the Hybrid's rating is positioned relative to another rating of
EDP, a change in either (1) Moody's relative notching practice or
(2) the senior unsecured rating of EDP could affect the Hybrid's
rating.

EDP's Baa3 rating continues to be supported by (1) its position as
Portugal's largest utility and diversified business and
geographical mix; (2) its high share of regulated and contracted
activities; (3) the group's track record of rotating assets to
alleviate financing needs; and (4) the 19% ownership by China Three
Gorges Corporation (A1 stable). These positives help offset (1) the
earnings volatility stemming from variations in hydro output in
Iberia and, to a lesser extent, wind resource globally; (2) the
execution risks associated with a significant capital spending over
2019-22; (3) the adverse effects of the coronavirus pandemic on
power prices and electricity demand in Brazil and Iberia; and (4)
its relatively high dividend payout and leverage, although the
latter is declining.

RATING OUTLOOK

The stable outlook is based on EDP's delivery of its strategic plan
and the resulting expected deleveraging by 2022, so that funds from
operations (FFO)/net debt rises over time to the midteens and
retained cash flow (RCF)/net debt is sustainably in the low double
digits (both in percentage terms).

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

The ratings could be upgraded if EDP's progress on the delivery of
its strategy were to result in a sustained strengthening of its
financial profile, with FFO/net debt around 20% and RCF/net debt in
the midteens in percentage terms.

The ratings could be downgraded if EDP's credit metrics appeared
likely to remain persistently below the guidance for the Baa3
rating, which includes FFO/net debt in the midteens and RCF/net
debt in the low double digits (both in percentage terms).

EDP - Energias de Portugal, S.A. is a vertically integrated utility
company. It is Portugal's leading electric utility and generated
EUR3.7 billion of EBITDA in the last twelve months to September
2020.

The principal methodology used in this rating was Unregulated
Utilities and Unregulated Power Companies published in May 2017.


INFRAESTRUTURAS DE PORTUGAL: Moody's Completes Ratings Review
-------------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Infraestruturas de Portugal, S.A. and other ratings that
are associated with the same analytical unit. The review was
conducted through a portfolio review discussion held on January 19,
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.

Infraestruturas de Portugal, S.A. (IP)'s Ba1 rating reflects its
critical role in the management of railway and road networks in
Portugal and its strategic importance to the national economy as
the provider of an essential public service; its 100% ownership by
the Government of Portugal (Baa3); its limited financial autonomy
and close oversight by the government, with the company currently
included in the State's budget. IP's rating also considers the
expectation that the Portuguese government will continue to step in
with timely financial support if required, given that according to
the general principles applicable under the Portuguese Companies
Code, the government would remain indirectly liable for IP's
obligations as long as the company is 100% government owned; and
its high indebtedness and very weak financial profile.

The principal methodology used for this review was
Government-Related Issuers Methodology published in February 2020.



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

OBRASCON HUARTE: Fitch Lowers LongTerm IDR to 'C'
-------------------------------------------------
Fitch Ratings has downgraded Spanish engineering and construction
(E&C) group Obrascon Huarte Lain SA's (OHL) Long-Term Issuer
Default Rating (IDR) to 'C' from 'CC'.

The downgrade reflects the announcement from OHL that its largest
shareholder and an ad hoc group of bondholders (representing 57.3%
of the total outstanding bonds) have entered into a lock-up
agreement to restructure the debt. Fitch deems this proposal as a
distressed debt exchange (DDE) under Fitch’s criteria, given the
material reduction in terms compared with the original contractual
terms, and the intention to avoid a payment default on the EUR323
million outstanding notes due in March 2022 and around EUR270
million outstanding notes due in March 2023.

If the transaction is successfully completed, Fitch will downgrade
the IDR to 'RD' (Restricted Default) before re-assessing OHL's
restructured profile and assigning a rating consistent with
Fitch’s forward-looking assessment of the company's credit
profile. Alternatively, if the transaction is unsuccessful, Fitch
would downgrade the IDR to 'D' if a payment default takes places on
the next coupon payment date or when the 2022 notes fall due.

KEY RATING DRIVERS

Announcement of DDE: The debt restructuring represents 57.3% of
senior notes' principal, the execution of which would be treated as
a DDE under Fitch's DDE criteria. The key terms of the agreement
assume recapitalisation through a combination of equity injections
and restructuring of the terms and conditions of the existing
senior notes, which would result in a material reduction in terms
compared with the original contractual terms.

Reduction in Terms: The restructuring of notes comprises a partial
write-off of existing notes, capitalisation of part of their
principal amount through share-capital increase and the exchange of
the remaining senior notes after the debt reduction and the
capitalisation of newly issued senior secured notes. The newly
issued notes assume a three-year extension of maturity to 2025-2026
and will accrue payment-in-kind interest up to 15 September 2023.
The aggregate principal amount of the new notes will be up to
around EUR488 million, which would imply a debt reduction of around
EUR105 million.

Tight Liquidity Headroom: Fitch expects material cash consumption
over the short term to lead to limited financial flexibility.
Consequently, OHL will remain highly reliant on funding sources
that are subject to execution risk. Absent any additional committed
credit lines, Fitch believes OHL's liquidity is mainly supported by
around EUR312 million total reported cash as of end-3Q20. However,
a large share of the reported cash is located in JVs and may not be
readily available. Liquidity will also be supported by the agreed
disposal of Hospital de Toledo and potential disposals of Old War
Office and Canalejas development projects.

Strengths in Business Profile: OHL's business profile is
underpinned by strong market positions, a fairly stable order book
and sound diversification. OHL ranks as a top-50 international E&C
contractor and boasts a solid market position in roads and
railways. It has a globally diversified geographic footprint with
around two-thirds of revenues generated outside Spain, mainly in
the US and Latin America. OHL has moderate customer concentration
with its top-10 customers accounting for around half of its
backlog.

DERIVATION SUMMARY

The 'C' ratings of OHL - IDR and senior unsecured debt rating -
reflect its announced exchange offer on outstanding unsecured
notes, which Fitch believes constitutes a DDE under Fitch's DDE
criteria.

KEY ASSUMPTIONS

Once the debt restructuring is completed and Fitch has assessed
OHL's revised business plan it will establish new assumptions in
support of Fitch’s long-term forecasts for the company.

RATING SENSITIVITIES

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

-- An upgrade is unlikely until completion of the proposed debt
    restructuring.

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

-- Completion of the proposed debt restructuring

-- An event of default under the documentation including non
    payment of interest

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

Tight Liquidity: As of 30 September 2020, liquidity was supported
by around EUR312 million total reported cash including a
significant amount of cash held in JVs, which Fitch deems as not
readily available to OHL. The main upcoming maturities include a
EUR323 million bond due March 2022 and a EUR270 million bond due
March 2023.

We believe that OHL's current liquidity position and expected cash
flow profile alone will not be sufficient to address the upcoming
total EUR593 million bond maturities in 2022-2023. Fitch believes
that liquidity will be increasingly dependent on the cash held in
JVs, potential new debt drawdowns, successful collection of
receivables, potential disposals and other funding sources that are
subject to execution risk. OHL has already signed the binding offer
for the disposal of Hospital de Toledo.

Debt Structure: As of 30 September 2020, OHL's debt mainly
comprised two senior unsecured bonds of EUR323 million due March
2022 and EUR270 million due March 2023 as well as a EUR70 million
syndicated loan due 2021. OHL also had about EUR52 million of
non-recourse project debt.

SUMMARY OF FINANCIAL ADJUSTMENTS

-- Cash of EUR425 million at end-2019 treated as restricted
    including cash held in JVs and cash restricted for intra-year
    working capital swings.

-- Off-balance sheet factoring added to debt at end-2019.

-- The spread between the carrying amount of the senior secured
    notes and cash principal due adjusted for debt calculation.

-- The recovery calculation assumes that the enterprise value of
    OHL and the resulting recovery of its creditor would be
    maximised in a liquidation rather than in a restructuring
    (going-concern approach) due to a significant amount of
    outstanding receivables.

-- The advance rates used in Fitch’s recovery analysis are 50%
    each for account receivables; inventory; and net property,
    plant and equipment.

ESG CONSIDERATIONS

OHL has an ESG Relevance Score of '4' for Governance Structure due
to high senior management turnover since 2016, which has a negative
impact on the credit profile, and is relevant to the rating 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(ies), either due to their nature or the way in which they
are being managed by the entity(ies).




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

ALPHA TOPCO: Moody's Completes Review, Retains B2 CFR
-----------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Alpha Topco Limited 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.

Alpha Topco Limited (Formula One)'s B2 CFR reflects the company's
relatively robust performance in the context of the severe
disruption to the business caused by the coronavirus pandemic.
Despite continued travel restrictions and disruption in 2021
Moody's expects the company to operate a full race calendar,
although with greater potential for race postponements and
limitations on attendances at the beginning of the season. The
rating takes into consideration the company's solid liquidity,
flexible cost base, strong franchise, contracted revenue base and
track record of cash generation. The rating is also supported by
the renewal of the Concorde Agreement which sets out the terms
under which teams will compete until 2025. At the same time the
rating reflects the company's high Moody's-adjusted gross
debt/EBITDA, and its dependence on a relatively small number of key
events and broadcasting contracts.

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


ARQIVA BROADCAST: Moody's Completes Review, Retains Ba2 CFR
-----------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Arqiva Broadcast Parent Limited and other ratings that
are associated with the same analytical unit. The review was
conducted through a portfolio review discussion held on January 19,
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.

The Ba2 corporate family rating of Arqiva Broadcast Parent Limited
is supported by (1) the group's monopoly position in broadcast
tower infrastructure in the UK; (2) stable and predictable cash
flows from its terrestrial broadcasting TV and radio services
provided under long-term contracts, the largest contributor to
EBITDA; and (3) its ability to use the group's infrastructure for
new growth opportunities, such as smart metering communication
services.

However, the CFR is constrained by (1) the higher competitive
pressures and lower margins of its satellite operations, although
this business segment contributes only between 5-7% of consolidated
EBITDA; and (2) the financial leverage of the consolidated group,
albeit reduced following the sale of tower activities and use of
around GBP1.8 billion of proceeds to pay down priority debt within
a ring-fenced and highly covenanted financing structure around the
principal operating companies of the group.

The B1 rating of the GBP625 million 6.75% notes due 2023 issued by
Arqiva Broadcast Finance Plc, and guaranteed by Arqiva Broadcast
Parent Limited, is two notches below the Ba2 CFR and recognises
that creditors' claims are deeply subordinated to claims of
priority creditors at the operating group level. This subordination
may result in very high loss severity in the event of default,
particularly in circumstances where any or all of the financings
with higher priority ranking have also defaulted. In addition, the
occurrence of a trigger event or distribution lock-up at the
priority debt level would deprive Arqiva Broadcast Finance Plc of
the cash flows on which it relies to service the notes. The loss
given default assessment is LGD-5.

The principal methodology used for this review was Communications
Infrastructure Industry published in September 2017.


BURY FOOTBALL: Administrator Proposes Fresh Rescue Deal
-------------------------------------------------------
Peter Magill at The Bolton News reports that a fresh rescue deal is
being proposed by the administrator of Bury Football Club -- as
further details emerge of the GBP15.2 million owed by the
beleaguered club.

Administrator Steven Wiseglass has released a set of proposals for
The Bury Football Club Company Ltd, following his reappointment in
December, The Bolton News recounts.

And in his report, Wiseglass claims, after discussions with the
Football Association, that the path could be clear for Bury FC to
join the Northern Premier League or National League, The Bolton
News discloses.

But first a new company voluntary arrangement would have to work --
and a number of key loans satisfied -- before this could happen,
The Bolton News notes.

Nottinghamshire-based investor David Hilton is said to be in
advanced talks over purchasing the club.  Six interested parties
are said to have been identified for the club, with three making
offers, The Bolton News relates.

According to The Bolton News, the administrator says former
chairman Stewart Day claimed a debt against the club valued at
GBP7.1 million -- his property empire Mederco has since gone under
and that amount is now owed to RCR Holdings Ltd.

Capital Bridge Financing Loans still holds a series of legal
charges over Gigg Lane, totalling GBP2.9 million, with a further
GBP189,000 loan established in favour of Broadoak Private Finance,
The Bolton News notes.

Question marks still exist over the stance of director and current
chairman Steve Dale, who is said to have not co-operated with the
administration to date, and for whom the club is in debt to an
unknown figure, The Bolton News states.

Mr. Wiseglass, as cited by The Bolton News, said: "In order to
achieve the objective of the administration of the company it is
intended that a CVA is proposed to settle creditor claims.

"In the event that a CVA isn't viable then the intention would be
to sell all the remaining assets and undertake all the necessary
investigations of the company within the administration."

Mr. Wineglass added: "It should be noted that in order for the
company to re-enter the football pyramid, Steven Dale can no longer
be the director or shareholder of the company as he would not pass
the fit and proper test.

"Since Steven Dale is the largest shareholder it would require his
consent and agreement in order to the transfer the shares to
another party, this is not something that can be enforced by an
administrator.

"Therefore, the only way of transferring ownership of shareholding
which is held by Steven Dale is with his full agreement and
co-operation.

"Any realisation from the sale of these shares would be between
Steven Dale and any purchaser and not a matter for the
administrator.

"It is understood that Mr. Dale is in discussions with a number of
interested parties who maybe willing to purchase the shares of the
company from him."

Company creditors have until Feb. 4 to make their views known
regarding the administrators proposals, The Bolton News discloses.


DEBENHAMS PLC: Court Appoints Official Receiver as Liquidator
-------------------------------------------------------------
A winding up order was made against Debenhams PLC (Company number:
05448421) on Jan. 25, 2021, and the court appointed the Official
Receiver as liquidator.

Debenhams PLC was formerly the holding company for the Debenhams
retail group but at the date of liquidation, it had no active
operations or employees.

The trading arms of the retailer, Debenhams Retail Limited
(00083395) and Debenhams Properties Limited (00344823), remain in
administration.  The administrators for both companies are Geoffrey
Paul Rowley and Alastair Rex Massey of FRP Advisory and they can be
contacted via: cp.london@frpadvisory.com; 020 3005 4000.

Information for creditors

You will need to register as a creditor in the liquidation if:

   * you have not been paid for goods or services you've supplied
to Debenhams PLC (in liquidation)

   * you have paid Debenhams PLC (in liquidation) for goods or
services that you have not received

To register as a creditor you will need to complete a Proof of Debt
form which you should then email ORLondonSouthend@insolvency.gov.uk



JERROLD FINCO: Fitch Rates GBP500MM Secured Notes 'BB-'
-------------------------------------------------------
Fitch Ratings has assigned Jerrold Finco plc's (FinCo)
GBP500million 5.25% senior secured notes due 2027 a final rating of
'BB-'.

FinCo is a subsidiary of Together Financial Services Limited
(Together; BB-/Negative), a UK-based specialist mortgage lender.
The notes being issued are guaranteed by Together and their rating
is aligned with Together's Long-Term Issuer Default Rating (IDR).

The issuance will principally be used to refinance FinCo's GBP350
million 2024 senior secured notes and extend the maturity timeline
to 2027 with the remainder used to repurchase mortgage loans from
the group's private securitisations and reduce drawn balances by
GBP90.2million and to pay transaction fees and redemption costs as
well as used for general corporate purposes.

Fitch does not expect any material increase in gross leverage, as
measured by gross debt to tangible equity, as a result of this
transaction. When calculating Together's gross leverage, Fitch adds
Bracken Midco1 PLC's (an indirect holding company of Together) debt
to that on Together's own balance sheet, regarding it as
effectively a contingent obligation of Together.

KEY RATING DRIVERS

SENIOR DEBT

The rating of FinCo's senior secured notes is driven by the same
considerations that drive Together's Long-Term IDR (see 'Fitch
Affirms Together at 'BB-'/Outlook Negative', published on 30
November 2020 at www.fitchratings.com) and in line with Together's
Long-Term IDR, reflecting Fitch's view that the probability of
default on the notes is the same as the probability of default of
Together and that the notes have average recovery prospects.

RATING SENSITIVITIES

SENIOR DEBT

The rating of the senior secured notes is primarily sensitive to
changes in Together's Long-Term IDR (see the 30 November 2020
commentary for a summary of sensitivities applicable to Together's
senior secured debt rating).

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.


MICRONAS LTD: To Shut Down in April, 83 Jobs Affected
-----------------------------------------------------
Allan Crow at Fife Today reports that Micronas Limited, based in
Southfield Industrial Estate, will shut its doors in April as part
of a restructuring process with the loss of 83 jobs.

Staff have been informed of the decision, and a consultation
process has begun, Fife Today relates.

The company, which produces electronic sensors for the automotive
industry, has German owners, TDK-Micronas.

According to Fife Today, Peter Grant, MP for Glenrothes, said the
closure was "a huge blow" for the town, and noted that just two
years ago the company was talking in terms of moving work from
Germany to the Fife town.

He has contacted Micronas and called on bosses to give "a full and
open explanation" on what has gone wrong, Fife Today notes.


NEWDAY FUNDING: Fitch Gives B+(EXP) Rating on Class F Notes
-----------------------------------------------------------
Fitch Ratings has assigned NewDay Funding Master Issuer Plc -
Series 2021-1 notes expected ratings.

The assignment of final ratings is contingent on the receipt of
final documentation conforming to information already reviewed.
Fitch also expects to affirm NewDay Funding's existing series when
it assigns final ratings for series 2021-1.

     DEBT                          RATING  
     ----                          ------  
NewDay Funding Master Issuer Plc

2021-1 Class A1          LT AAA(EXP)sf  Expected Rating
2021-1 Class A2          LT AAA(EXP)sf  Expected Rating
2021-1 Class B           LT AA(EXP)sf   Expected Rating
2021-1 Class C           LT A(EXP)sf    Expected Rating
2021-1 Class D           LT BBB(EXP)sf  Expected Rating
2021-1 Class E           LT BB(EXP)sf   Expected Rating
2021-1 Class F           LT B+(EXP)sf   Expected Rating
2021-1 Originator VFN    LT NR(EXP)sf   Expected Rating

TRANSACTION SUMMARY

The series 2021-1 notes to be issued by NewDay Funding Master
Issuer Plc will be collateralised by a pool of non-prime UK credit
card receivables. NewDay is one of the largest specialist credit
card companies in the UK, where it is also active in the retail
credit card market. However, the co-brand retail card receivables
do not form part of this transaction.

The collateralised pool consists of an organic book originated by
NewDay Ltd, with continued originations of new accounts, and a
closed book consisting of two legacy pools acquired by the
originator in 2007 and 2010. NewDay started originating accounts
within the legacy pools, albeit in low numbers, in 2015. The
securitised pool of assets is beneficially held by NewDay Funding
Receivables Trustee Ltd.

KEY RATING DRIVERS

Non-Prime Asset Pool: The portfolio consists of non-prime UK credit
card receivables. Fitch assumes a steady-state charge-off rate of
18%, with a stress on the lower end of the spectrum (3.5x for
'AAAsf'), considering the high absolute level of the steady-state
assumption and lower historical volatility in charge-offs.

As is typical in the non-prime credit card sector, the portfolio
has historically exhibited low payment rates and high yield. Fitch
applied a steady-state monthly payment rate of 10% with a 45%
stress at 'AAAsf', and a steady-state yield of 30% with a 40%
stress at 'AAAsf'. Fitch also assumed a 0% purchase rate in the
'Asf' category and above, considering the unrated nature of the
seller and the reduced probability of a non-prime portfolio being
taken over by a third party in a high-stress environment.

Coronavirus Impact: Charge-offs and delinquencies have been
resilient to the impact of the coronavirus pandemic and the share
of the portfolio subject to payment holidays has fallen
substantially from an initial peak. However, performance has been
heavily supported by furlough and forbearance schemes, and Fitch
expects a deterioration in 2H21 as these measures expire and
unemployment rises.

Fitch has nevertheless maintained its steady-state assumptions at
their existing levels. The steady state aims to look through
short-term fluctuations in performance. Despite likely
deterioration, Fitch does not expect charge-offs to reset to a
materially higher level in the long term. Fitch has also considered
that charge-offs have remained below the steady state in recent
years, and that stricter lending criteria have been applied by
NewDay since the onset of the pandemic.

Variable Funding Notes Add Flexibility: In addition to Series
VFN-F1 and VFN-F2 providing the funding flexibility that is typical
and necessary for credit card trusts, the structure employs a
separate originator VFN, purchased and held by NewDay Funding
Transferor Ltd. It provides credit enhancement to the rated notes,
adds protection against dilution by way of a separate functional
transferor interest and meets the UK and US risk-retention
requirements.

Key Counterparties Unrated: The NewDay Group will act in several
capacities through its various entities, most prominently as
originator, servicer and cash manager to the securitisation. In
most other UK trusts, these roles are fulfilled by large
institutions with strong credit profiles. Such reliance is
mitigated in this transaction by the transferability of operations,
agreements with established card service providers, a back-up cash
management agreement and a series-specific liquidity reserve.

RATING SENSITIVITIES

This section provides insight into the model-implied sensitivities
the transaction faces when one assumption is modified, while
holding others equal. The modelling process uses the modification
of these variables to reflect asset performance in upside and
downside environments. The results below should only be considered
as one potential outcome, as the transaction is exposed to multiple
dynamic risk factors. It should not be used as an indicator of
possible future performance.

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

Rating sensitivity to increased charge-off rate:

Increase steady state by 25% / 50% / 75%

Series 2021-1 A: 'AAsf' / 'AA-sf' / 'A+sf'

Series 2021-1 B: 'A+sf' / 'Asf' / 'BBB+sf'

Series 2021-1 C: 'BBB+sf' / 'BBBsf' / 'BBB-sf'

Series 2021-1 D: 'BB+sf' / 'BBsf' / 'BB-sf'

Series 2021-1 E: 'B+sf' / 'Bsf' / N.A.

Series 2021-1 F: N.A. / N.A. / N.A.

Rating sensitivity to reduced monthly payment rate (MPR):

Reduce steady state by 15% / 25% / 35%

Series 2021-1 A: 'AAsf' / 'AA-sf' / 'Asf'

Series 2021-1 B: 'A+sf' / 'Asf' / 'BBB+sf'

Series 2021-1 C: 'BBB+sf' / 'BBBsf' / 'BBB-sf'

Series 2021-1 D: 'BBB-sf' / 'BB+sf' / 'BBsf'

Series 2021-1 E: 'BB-sf' / 'B+sf' / 'B+sf'

Series 2021-1 F: 'Bsf' / 'Bsf' / N.A.

Rating sensitivity to reduced purchase rate:

Reduce steady state by 50% / 75% / 100%

Series 2021-1 D: 'BBB-sf' / 'BBB-sf' / 'BBB-sf'

Series 2021-1 E: 'BB-sf' / 'BB-sf' / 'B+sf'

Series 2021-1 F: 'Bsf' / 'Bsf' / 'Bsf'

No rating sensitivities are shown for the class A to C notes, as
Fitch is already assuming a 100% purchase rate stress in these
rating scenarios.

Rating sensitivity to increased charge-off rate and reduced MPR:

Increase steady-state charge-offs by 25% / 50% / 75% and reduce
steady-state MPR by 15% / 25% / 35%

Series 2021-1 A: 'A+sf' / 'A-sf' / 'BBB-sf'

Series 2021-1 B: 'A-sf' / 'BBBsf' / 'BB+sf'

Series 2021-1 C: 'BBBsf' / 'BB+sf' / 'BB-sf'

Series 2021-1 D: 'BBsf' / 'B+sf' / N.A.

Series 2021-1 E: 'Bsf' / N.A. / N.A.

Series 2021-1 F: N.A. / N.A. / N.A.

Coronavirus Downside Sensitivity:

Fitch has also considered a downside scenario whereby targeted
measures to contain virus hotspots have limited success, resulting
in more frequent lockdowns and stretching health systems in most
affected areas to the breaking point until late in 1H21. Setbacks
in efficacy or distribution of vaccines delay any confidence boost
from a medical solution. A resulting second round of job losses
prompts GDP declines, though less severe than in 1H20. This prompts
a fresh wave of stress in financial markets, which provokes a
longer-lasting, negative wealth and confidence shock that depresses
consumer demand and leads to a prolonged period of below-trend
economic activity. Recovery to pre-crisis GDP is delayed to around
the middle of the decade in Europe. This scenario could lead to a
higher risk of downgrade of the notes across all rating levels.

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

Rating sensitivity to reduced charge-off rate:

Reduce steady state by 25%

Series 2021-1 B: 'AA+sf'

Series 2021-1 C: 'AA-sf'

Series 2021-1 D: 'BBB+sf'

Series 2021-1 E: 'BBB-sf'

Series 2021-1 F: 'BBsf'

The class A notes cannot be upgraded given the notes are already
rated at 'AAAsf', which is the highest level on Fitch's rating
scale.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven 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 seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

Fitch reviewed the results of a third-party assessment conducted on
the asset portfolio information, and concluded that there were no
findings that affected the rating analysis.

Fitch conducted a review of a small targeted sample of the
originator's origination files and found the information contained
in the reviewed files to be adequately consistent with the
originator's policies and practices and the other information
provided to the agency about the asset portfolio.

Overall and together with the assumptions referred to above,
Fitch's assessment of the asset pool information relied upon for
the agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.

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.


PAPERCHASE: Permira Set to Acquire Business in Pre-Pack Deal
------------------------------------------------------------
Business Sale reports that high-street stationer Paperchase is set
to be acquired by Permira Debt Managers in a pre-pack deal.

According to Business Sale, the deal is expected to include up to
90 of Paperchase's 125 UK stores.

The stationary chain said in early January that COVID-19
restrictions had put "an unbearable strain on the business" and
that it was close to appointing administrators, Business Sale
relates.

Most of Paperchase's stores were closed during the crucial
November-December period in which the retailer generally makes 40%
of its annual sales, Business Sale notes.  Many stores were said to
still be trading profitably, but this wasn't enough to offset
losses, according to Business Sale.

The company, which had undergone a CVA in March 2019, had also been
put under pressure in recent years by the increasing popularity of
online card retailers Moonpig and Funky Pigeon, a trend that has
only accelerated during lockdown, Business Sale relays.

However, a party reported to have held an early interest in
acquiring Paperchase, questioned Permira Debt Managers' long-term
commitment to the retailer, Business Sale states.  Permira Debt
Managers has provided funding to Paperchase since 2015, Business
Sale notes.  Pre-pack sales where the involved parties are
connected are set to be subject to mandatory independent scrutiny
from April 2021, Business Sale says.

In its most recent financial report, for the year to February 2,
2019, Paperchase reported gross profit of GBP14 million and a
GBP3.4 million loss for the financial year on turnover of GBP125
million, which was down from GBP131 million in 2018, Business Sale
discloses.

The retailer's fixed assets were valued at GBP14.4 million, while
current assets were valued at GBP16.4 million and net assets
amounted to GBP2.8 million, according to Business Sale.


RATIONALE ASSET: Insolvency Service Winds Up Business
-----------------------------------------------------
Rachel Mortimer at FTAdviser reports that a trio of companies which
misled clients to raise millions of pounds in funds under the guise
of property investments have been wound up by the courts.

According to FTAdviser, an investigation by the Insolvency Service
found London-based property investment firms Rationale Asset
Management and Value Asset Management had "entirely misled"
investors and millions of pounds without making any "genuine"
investments.

Rationale raised more than GBP2 million from investors after
telling prospective clients it purchased and developed businesses
such as care homes, hotels and pubs to sell on for a profit,
FTAdviser discloses.

But according to the Insolvency Service only a fraction of the
funds was investment in property, with most of the money used to
pay the directors of Rationale and used for other companies in
which the directors had a controlling interest, FTAdviser notes.

The Insolvency Service said the second property company, Value
Asset Management, was closely linked to Rationale and subject to a
parallel investigation which found it sold bonds to investors
claiming they were secured against property assets, FTAdviser
relays.

But investigators found Value's marketing materials were misleading
and its accounts showed it was insolvent and owned no property,
FTAdviser states.

Investigations found a third company linked to Rationale, Merydion
Corporation Limited, received GBP300,000 of funds from the same
pension scheme Optimum Retirement Benefits Plan, FTAdviser
discloses.

According to FTAdviser, Merydion then used the money to invest in
hotel properties the director of the company owned under separate
entities.


TULLOW OIL: Gets Add'l. Month From Banks, In Creditor Talks
-----------------------------------------------------------
Nathalie Thomas at The Financial Times reports that Tullow Oil has
secured an additional month from its banks before it faces a test
on a key lending facility, as the oil explorer and producer
continues refinancing talks with its creditors.

According to the FT, a test on Tullow's reserve-based lending
facility -- a form of funding where a company's oil and gas
reserves are used as collateral for loans -- had been due to
conclude in January but lenders have agreed to an extension of up
to a month to allow more time to review a strategy unveiled by its
chief executive Rahul Dhir in November.

The company, which is trying to recover from a difficult 2019 that
resulted in hefty cuts to its production forecasts and the
departure of Paul McDade as chief executive, warned in September
that a potential liquidity shortfall threatened its ability to
satisfy requirements at the January test, the FT discloses.

The extension was outlined in Tullow's latest trading update in
which it said production was forecast to drop to 60,000-66,000
barrels of oil a day in 2021, down from an average of 74,900
barrels a day last year due to a drilling hiatus and a planned
shutdown at one of its main fields in September, the FT relates.

Jefferies analyst Mark Wilson said that the 2021 production
forecast was lower than expected and that Tullow faced a "difficult
reality" to improve output towards levels anticipated in Mr. Dhir's
new strategy, the FT notes.



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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.

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