/raid1/www/Hosts/bankrupt/TCREUR_Public/210203.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                          E U R O P E

          Wednesday, February 3, 2021, Vol. 22, No. 19

                           Headlines



C Y P R U S

BANK OF CYPRUS: Fitch Affirms 'B-' LongTerm IDR, Outlook Negative


G E R M A N Y

SPEEDSTER BIDCO: Fitch Alters Outlook on 'B' IDR to Negative


I R E L A N D

ALME LOAN IV: Fitch Affirms B- Rating on Class F-R Notes
ARES EUROPEAN X: Fitch Affirms B- Rating on Class F Debt
CARA PHARMACY: High Court Approves Survival Scheme
CROSTHWAITE PARK: Fitch Affirms B- Rating on Class E Debt
HENLEY CLO IV: Fitch Assigns B-(EXP) Rating on Class F Debt

KEATING CONSTRUCTION: Faces Liquidation, Owes EUR30 Million
MADISON PARK XIV: Fitch Alters Outlook on F Debt's Rating to Stable


N E T H E R L A N D S

CAIRN CLO III: Fitch Affirms B- Rating on Class F Debt
CAIRN CLO X: Fitch Affirms B- Rating on Class F Debt
CONTEGO CLO III: Fitch Alters Outlook on F-R Notes Rating to Stable


S E R B I A

ATP VOJVODINA: Bankruptcy Agency Invites Bid for Sale of Assets


U N I T E D   K I N G D O M

MOTO VENTURES: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable
NORD GOLD: Fitch Affirms 'BB' LT IDR & Alters Outlook to Positive
SEADRILL LTD: Forbearance Agreements Expired on Jan. 29
ST PAUL CLO II: Fitch Alters Outlook on F-RRR Debt Rating to Stable
ST PAUL CLO III-R: Fitch Affirms B- on F-R Notes, Off Watch Neg.

VIRGIN ACTIVE: Lenders Prepare Fight Over Future of Business


X X X X X X X X

[*] UK: Number of Companies at Risk of Insolvency Doubles

                           - - - - -


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C Y P R U S
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BANK OF CYPRUS: Fitch Affirms 'B-' LongTerm IDR, Outlook Negative
-----------------------------------------------------------------
Fitch Ratings has affirmed Bank of Cyprus Public Company Limited's
(BoC) Long-Term Issuer Default Rating (IDR) at 'B-' and Viability
Rating (VR) at 'b-'. The Outlook is Negative.

BoC announced on January 18, 2021, an agreement to sell a portfolio
of non-performing exposures (NPE) for a gross amount of about
EUR0.5 billion. The transaction is credit-positive and will provide
the bank with additional headroom at this rating level, but it does
not ease medium-term pressures sufficiently to stabilise the
Outlook on the Long-Term IDR, notably because of the still high
capital encumbrance to unreserved problem assets (net NPE and net
foreclosed assets).

The Negative Outlook continues to reflect Fitch’s view that the
bank's ratings remain highly sensitive to a downside scenario to
Fitch’s baseline expectation of a sound recovery. In such a
scenario, BoC's ratings would likely come under pressure from
higher-than-anticipated inflows of new impaired loans generating
larger credit losses, weaker revenue generation, ultimately
resulting in greater-than-expected capital erosion.

KEY RATING DRIVERS

IDRs AND VR

BoC's ratings reflect weak asset quality even after the announced
NPE disposal, which results in very high capital encumbrance by
unreserved problem assets, and weak profitability, which is still
constrained by high loan impairment charges (LICs). The ratings
also reflect BoC's strong franchise and market position as the
largest bank in Cyprus, which is a small market, and an acceptable
funding profile. Fitch’s assessment of asset quality and
capitalisation have a high influence on the bank's ratings.

BoC's asset quality has been weak for a prolonged period of time
but has been continuously improving thanks to the management's
ability to work-out NPEs organically and inorganically. The NPE
ratio peaked at 63% at end-2014 but decreased to 16% at
end-September 2020, pro-forma for the effect of the announced
agreement with PIMCO for a sale of two portfolios for a gross value
of EUR0.9 billion of NPE (Helix 2 portfolio A) in August 2020 and
EUR0.5 billion of NPE (Helix 2 portfolio B) in January 2021. Fitch
sees the completion of the two deals as highly probable. The
decrease of NPE will give the bank additional headroom to absorb
shocks at current rating level. However, Fitch’s assessment of
asset quality also considers the high problem assets ratio (NPE and
foreclosed assets), which was about 26% at end-September 2020 (pro
forma for Helix 2 A&B), higher than its main domestic peer.

BoC's asset quality remains under pressure as it is vulnerable to
the fallout from the crisis, even if Fitch has not seen a material
inflow of new impaired loans in 2020 due to the 9-month moratorium
on payment of capital and interest for loans. The performance of
loans under moratorium is key to asset-quality trends in 2021 and
2022 given the bank's high portion of loans under moratorium at
end-September 2020. These accounted for about 65% of performing
loans.

BoC's profitability remains volatile and significantly below global
industry averages, mainly due to high LICs. Profitability remained
weak in 9M20, when the bank announced a EUR119 million loss before
tax, as it has been significantly affected by higher LICs (125bp of
gross loans in 9M20 excluding credit losses incurred by Helix 2)
and Helix 2 credit losses. Fitch does not expect BoC to be
profitable in 2020, as 4Q20 results will not be able to compensate
for the losses recorded in 9M20.

The bank's fully loaded common equity Tier 1 (CET1) ratio
(including the full impact of IFRS 9) was about 12.9% at
end-September 2020, pro forma for the completion of the two Helix 2
transactions. Capital remains highly vulnerable to the large
proportion of unreserved problem assets. Encumbrance by unreserved
problem assets was high at close to 1.5x CET1 capital at
end-September 2020 (down from about 1.9x at end-March 2020). This
makes capital sensitive to shocks and still not commensurate with
risks. Fitch expects some inflows of NPE and consequently capital
encumbrance to increase. The bank's capacity to generate capital
internally is weakened by the current economic environment, making
capital ratios vulnerable to potential losses generated by higher
impairment charges.

BoC's funding is supported by its deposit franchise in Cyprus.
Together with the deleveraging of the balance sheet, the gross
loans/deposits ratio declined to slightly below 70% at
end-September 2020 (pro forma for Helix 2 portfolio A). About 80%
of BoC's deposits are domestic deposits. Deposit preference in
Cyprus contributes to funding stability. The liquidity buffer
mitigates the potential volatility of deposits related to BoC's
non-resident transaction business sourced through the International
Business Unit. The bank's funding and liquidity profile remains
sensitive to confidence shocks and access to unsecured wholesale
funding at a reasonable cost in the current environment might prove
challenging.

BoC's Short-Term IDR of 'B' maps to its 'B-' Long-Term IDR.

SENIOR PREFERRED AND SENIOR NON-PREFERRED DEBT

The programme ratings for the senior preferred and non-preferred
debt classes under the EUR4 billion EMTN programme are 'CCC'/'RR6',
two notches below the bank's Long-Term IDR. This reflects Fitch's
view that recovery prospects for the bank's senior unsecured
creditors would be poor given full depositor preference in Cyprus
and the bank's funding structure, which Fitch views as effectively
reducing recovery prospects for senior unsecured creditors in
resolution.

BoC's funding structure mainly relies on customer deposits, bank
deposits and other forms of preferred funding (ECB funding). BoC
has not issued senior unsecured debt and has limited buffers of
subordinated debt and hybrid capital, which would participate in
absorbing losses ahead of senior debt.

SUBORDINATED DEBT

The 'CCC'/'RR6' long-term rating on BoC's subordinated Tier 2 notes
is notched down twice from the bank's VR, in line with the baseline
notching for subordinated Tier 2 debt. The 'RR6' Recovery Rating
reflects poor recovery prospects. Fitch applies zero notches for
additional non-performance risk relative to the VR as the notes'
loss-absorption is triggered only at the point of non-viability.

SUPPORT RATING AND SUPPORT RATING FLOOR

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

RATING SENSITIVITIES

IDRs AND VR

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

-- The Negative Outlook reflects medium-term risks to its ratings
    from the coronavirus outbreak. The VR and IDRs are primarily
    sensitive to the extent and the duration of the weakening of
    the bank's financial profile as a result of the pandemic shock
    to the economy. Fitch would likely downgrade BoC's VR and Long
    Term IDR if asset quality deteriorates more than expected and
    if the problem assets ratio is likely to exceed 30% for a
    prolonged period of time.

-- The bank's VR and Long-Term IDR could also be downgraded if
    there is a more substantial and prolonged deterioration in
    profitability than Fitch currently envisages, ultimately
    eroding the fully-loaded CET1 ratio and bringing capital
    encumbrance by unreserved problem assets above 200%, without
    credible prospects to reduce it to at least current levels.
    These circumstances could stem, for example, from a higher
    than expected asset-quality deterioration.

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

-- The Outlook could be revised to Stable if the bank's operating
    environment stabilises and the bank successfully manages the
    challenges arising from the economic downturn, reversing
    downside risks to its asset quality and profitability, while
    maintaining current capital levels. This would mean
    approaching a problem asset ratio of 20% with a sustained
    downward trend. This would entail structurally lower LICs and
    hence a return to positive operating profits on a more
    sustainable basis.

-- Rating upside is currently limited. In the long term, an
    upgrade would require improved prospects for the operating
    environment and a meaningful and sustained improvement of core
    profitability, combined with a material improvement in asset
    quality (problem assets ratio below 15%) and a reduction in
    capital encumbrance moving towards 100% with a clear downward
    trajectory.

SENIOR PREFERRED AND SENIOR NON-PREFERRED DEBT

The long-term senior unsecured debt programme rating is sensitive
to changes in BoC's Long-Term IDR. The programme ratings could be
upgraded if the bank's Long-Term IDR is upgraded. It is also
sensitive to larger buffers of senior unsecured debt, and either
other equally ranking or subordinated liabilities, being issued and
maintained by BoC, while the amount of net problem assets
decreases. This is because in a resolution, losses could be spread
over a larger debt layer resulting in smaller losses and higher
recoveries for senior bondholders, which may lead to a higher
long-term senior unsecured rating.

SUBORDINATED DEBT

BoC's subordinated debt ratings are primarily sensitive to changes
in the bank's VR, from which they are notched down.

SR AND SRF

Fitch sees limited upside for the bank's SR and SRF. In the EU,
this is due to the presence of a resolution scheme with bail-in
tools that have already been implemented, the authorities' limited
capacity to provide future support, but also in light of a clear
intention to reduce implicit state support for financial
institutions.

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.




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G E R M A N Y
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SPEEDSTER BIDCO: Fitch Alters Outlook on 'B' IDR to Negative
------------------------------------------------------------
Fitch Ratings has revised the Outlook on Speedster Bidco GmbH's
(AutoScout24) Long-Term Issuer Default Rating (IDR) to Negative
from Stable and affirmed the IDR at 'B' . Fitch has also affirmed
the senior secured ratings of the company's first-lien term loan at
'B+'/'RR3' and second-lien term loan at 'CCC+'/'RR6'. The ratings
reflect the February 2020 reallocation between first- and
second-lien debt as well as the acquisition of LeasingMarkt in July
2020.

AutoScout24's IDR is constrained by its aggressive capital
structure, which results in an estimated funds from operations
(FFO) gross leverage of 11.5x in 2020 (including Finanzcheck).
Specifically, the high leverage was due primarily to COVID-related
discounts and additional debt from the LeasingMarkt acquisition.
This would lead leverage to decline less rapidly, reaching 7.9x
only in 2022. The rating also reflects AutoScout24's entrenched
position in key markets as a leading European digital marketplace,
along with its stable cash flow generation, strong business model
and defendable end-markets.

KEY RATING DRIVERS

Leadership Position Exhibits Network Effect: AutoScout24 occupies
the top position in all of its markets except Germany, where it is
an entrenched market participant second only to mobile.de. The
competitive environment is stable, and well-known platforms have a
high level of immunity to new or smaller challengers. This results
in a positive feedback loop for market leaders with more listings
that generate greater traffic as consumers gravitate towards
channels offering a better selection, increasing leads and more
listings as a result.

Covid-19 Impact Temporarily Lowers Cash Flow: In response to the
first wave of the pandemic, AutoScout24 granted one-time discounts
to dealer clients, many of whom were affected by lockdown measures.
These discounts in early 2020 granted to dealer clients had a
direct impact on EBITDA and cash flows, which slows down the pace
of deleveraging compared with Fitch's expectations when Fitch first
assigned the rating. FFO gross leverage is now expected to reach
below 8.0x by end-2022, rather than 2021.

Slower Deleveraging from Continued M&A: The slower deleveraging
reflects an extension of Fitch's previous forecast by less than 12
months, which Fitch views as manageable for the company. The
LeasingMarkt acquisition in July 2020 also contributed to higher
leverage through the incremental EUR50 million first-lien debt
issue, though it had a less significant impact than the pandemic
environment. Nevertheless, a continuation of this bolt-on
acquisition strategy against the backdrop of recovery from the
impact of the pandemic would further constrain debt repayment.
Furthermore, AutoScout24's Finanzcheck subsidiary remains targeted
for disposal, but in the meantime poses a slight drag on
profitability as it has not yet reached break-even.

Post-Covid-19 Cash Generation Offsets High Leverage: Despite
increased leverage, AutoScout24 has the ability to rapidly reduce
leverage due to an asset-light business model and healthy cash flow
generation. Fitch expects the company to reduce FFO gross leverage
(including Finanzcheck) to 9.4x by end-2021 and below 8.0x by 2022
from 11.5x at end-2020 as the company increases profitability while
taking advantage of growth opportunity in its main markets. Though
the pandemic has reduced free cash flow (FCF) generation in 2020,
FCF margin is expected to recover to above 20% from 2021 onward,
even assuming a conservatively moderate recovery.

Used Car Market Counter-cyclical: Car dealers are capital
constrained, as they must fund the holding of inventory prior to
sale. This incentivises them to drive turnover and increase
profitability. In a downturn, dealers initially increase listings
in an effort to sell inventory more quickly. Together with a
consumer tendency to purchase used (rather than new) cars during a
recession, this protects AutoScout24 from a cyclical decline,
especially as online classifieds spend is a small proportion of
dealers' monthly expenses, comparable to a phone bill.

Track Record of ARPU Growth: The company has a strong runway for
average revenue per user (ARPU) growth. The price of online auto
classifieds is low in the countries in which AutoScout24 operates,
relative to other advertising channels and countries. The ARPU of
peers in the UK, US and Australia is significantly higher than that
of AutoScout24, which indicates room for ARPU growth. Such growth
will be helped by the market's ongoing move towards online
marketing channels.

Persistent Shift to Online Channels: Dealers continue to move away
from offline or traditional marketing channels such as print and
towards online/digital platforms, a trend that Fitch expects to
intensify. Online classified advertisements (classifieds) are a
much more efficient way to reach consumers, and this format is not
easily substitutable. The reach of a well-known site such as
AutoScout24 surpasses that of other channels such as dealer
websites and social media accounts.

Sponsor Familiarity with AutoScout24: H&F's ownership history of
the parent company, Scout24, began in February 2014 when H&F
acquired a 70% stake in Scout24 from Deutsche Telekom. When it
fully exited in February 2018, there was still growth and value to
be realised, as demonstrated by the high valuation in the takeover
bids from 2019 (H&F and Blackstone for Scout24, and H&F solely for
AutoScout24). The management strategy under this second LBO will
likely draw on H&F's prior expertise in media assets and its former
ownership of Scout24.

DERIVATION SUMMARY

Compared with media peer Traviata B.V. (B/Stable), AutoScout24
exhibits higher leverage, smaller scale and limited
diversification, as its revenues derive mainly from online auto
classifieds, compared with Traviata's more well-rounded offering of
job and real-estate classifieds, marketing media and news. However,
AutoScout24 is exposed to potentially less cyclical end-markets,
providing solid profitability, stability in cash flows and a higher
FCF margin. Adevinta (BB(EXP)/Stable), which owns AutoScout24's
German competitor mobile.de and eBay Classifieds, has larger scale
and greater diversification. In addition, lower starting leverage
and faster deleveraging support the higher rating, despite
Adevinta's lower-margin classifieds business than AutoScout24's.

AutoScout24 also has high leverage similar to both digital payments
provider Nets Topco Lux 3 Sarl (Nets, B+/RWP) and used-vehicle
marketplace BBD Parentco Limited (BCA, B-/Stable), but has higher
EBITDA and FCF margins, making leverage the main rating constraint.
These peers also rate against FFO adjusted gross leverage, which
Fitch forecasts to reach around 11x.

KEY ASSUMPTIONS

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

-- Finanzcheck, an online marketplace providing comparisons of
    loans and other financial products, was also separated from
    Scout24 and included within the parameters of the AutoScout24
    carve-out. Fitch's forecast assumes AutoScout24 retains
    Finanzcheck, although the asset is still intended for sale in
    the near term.

-- Covid-19 impact continues to dampen growth in 2020 and 2021,
    with little revenue growth in 2020 after pandemic-related
    discounts, before recovering moderately off a lower base into
    2022, including LeasingMarkt contribution. From 2022 onwards,
    revenues will reflect significant growth (in the range of high
    single- to low double-digits) in key markets, particularly
    Germany, the Netherlands, Belgium, and Italy following dealer
    price increases and upselling post-pandemic.

-- EBITDA margin reflects some drag from EBITDA-dilutive
    Finanzcheck through 2021. For AutoScout24 alone, EBITDA margin
    to grow to just over 60% by 2023, from the current high 50%
    range, due to increased efficiency and cost savings, marketing
    expenses moving increasingly online, and operating leverage.

-- Capex on average around mid-3% of revenues (including
    Finanzcheck) through 2023.

-- Working capital requirements are minimal, stable, and follow
    management guidance for the next three to four years.

-- M&A in line with history of bolt-on acquisitions such as that
    of AutoTrader B.V., gebrauchtwagen, and LeasingMarkt at EUR20
    million-EUR30 million a year.

-- No dividends projected

Recovery Assumptions:

-- The recovery analysis assumes that AutoScout24 would be
    considered a going concern in bankruptcy and that it would be
    reorganised rather than liquidated.

-- Fitch has assumed a 10% administrative claim.

-- AutoScout24's post-reorganisation, going-concern EBITDA of
    EUR99 million represents Fitch's view of a sustainable EBITDA
    that reflects a discount to the LTM Fitch-adjusted EBITDA of
    EUR118 million (including EBITDA from LeasingMarkt,
    Finanzcheck's negative EBITDA contribution, as well as some
    cost savings and synergies). In this scenario, the stress on
    EBITDA could result from loss of market share, an increase in
    competitive pressure or a higher churn rate (for example, due
    to unsuccessful price increases to dealers).

-- An enterprise value (EV) multiple of 6.0x is used to calculate
    a post-reorganisation valuation. This reflects AutoScout24's
    leading market positions in several countries, and its
    resilient and highly cash-generative business.

-- Fitch calculates the recovery prospects for the senior secured
    instruments, including a EUR925 million first-lien term loan
    and a fully drawn revolving credit facility (RCF) of EUR83.5
    million at 53%, which implies a one-notch uplift of the
    ratings relative to the company's IDR to arrive at 'B+' with a
    Recovery Rating of 'RR3'. For the EUR225 million second-lien
    term loan, the recovery is 0%, implying minus two notches from
    the IDR to 'CCC+' with a Recovery Rating of 'RR6.'

RATING SENSITIVITIES

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

-- FFO gross leverage below 6.0x on a sustained basis

-- FFO interest cover above 4.25x

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

-- FFO gross leverage above 8x on a sustained basis

-- FFO interest cover below 2.75xx

-- FCF margin below 20%

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

Sufficient Liquidity: Liquidity at end-3Q20 consisted of EUR30.1
million cash (incl. EUR4 million at Finanzcheck). The company will
continue to benefit from positive cash flow generation, and has
access to an undrawn EUR83.5 million RCF due in 2026. The first-
and second-term lien term loans are due in 2027 and 2028
respectively, reducing refinancing risk for the company.

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.




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I R E L A N D
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ALME LOAN IV: Fitch Affirms B- Rating on Class F-R Notes
--------------------------------------------------------
Fitch Ratings has affirmed ALME Loan Funding II, III and IV DAC,
revised the Outlooks on the junior notes to Stable from Negative
and revised the Outlook on ALME II's class C notes to Positive from
Stable.

       DEBT                   RATING            PRIOR
       ----                   ------            -----
ALME Loan Funding II DAC

A-RR XS2086811333      LT  AAAsf  Affirmed      AAAsf
B-1-RR XS2086811929    LT  AA+sf  Affirmed      AA+sf
B-2-RR XS2088662817    LT  AA+sf  Affirmed      AA+sf
C-RR XS2086812653      LT  Asf    Affirmed      Asf
D-RR XS2086813206      LT  BBB-sf Affirmed      BBB-sf
E-RR XS2086813974      LT  BB-sf  Affirmed      BB-sf

ALME Loan Funding III DAC

A-RR XS2114310324      LT  AAAsf  Affirmed      AAAsf
B-1-RR XS2114311058    LT  AAsf   Affirmed      AAsf
B-2-RR XS2114336048    LT  AAsf   Affirmed      AAsf
C-RR XS2114311561      LT  Asf    Affirmed      Asf
D-RR XS2114312379      LT  BBB-sf Affirmed      BBB-sf
E-RR XS2114313005      LT  BB-sf  Affirmed      BB-sf

ALME Loan Funding IV DAC

A-R XS1724884124       LT  AAAsf  Affirmed      AAAsf
B-R XS1724884983       LT  AAsf   Affirmed      AAsf
C-R XS1724885527       LT  Asf    Affirmed      Asf
D-R XS1724886418       LT  BBBsf  Affirmed      BBBsf
E-R XS1724886764       LT  BBsf   Affirmed      BBsf
F-R XS1724887143       LT  B-sf   Affirmed      B-sf

TRANSACTION SUMMARY

The transactions are cash flow CLOs, mostly comprising senior
secured obligations. ALME Loan Funding II's reinvestment period
ended on 15 January 2021 and the other two transactions are within
their reinvestment period. The deals are actively managed Apollo
Management International LLP.

KEY RATING DRIVERS

Asset Performance Stable

Asset performance has been stable for all three CLOs since their
last review. All transactions are above target par and are passing
all coverage tests, portfolio profile tests and Fitch related
collateral quality tests, as per the latest investor report
available. Exposure to assets with a Fitch-derived rating of 'CCC+'
and below as calculated by Fitch as of 23 January 2021 is in the
range of 4.5% to 4.85% (or 5.66% to 6.27% 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),
compared with the 7.5% limit. There is no exposure to defaulted
assets.

For ALME Loan Funding II which is nowt out of its reinvestment
period, the manager could only reinvest if all coverage tests,
another credit rating agency's weighted average rating factor
(WARF) and the Fitch 'CCC' limit test are satisfied. These tests
could restrict trading activities but as of the latest trustee
report (dated 08 January 2021) all tests are passing.

Resilience to Coronavirus Stress

The affirmations reflect the broadly stable portfolio credit
quality since the last review. The Stable Outlooks on all
investment grade notes, and the revision of the Outlook on the
sub-investment grade notes to Stable from Negative reflect the
default rate cushion in the sensitivity analysis Fitch ran in light
of the coronavirus pandemic. Fitch has recently updated its CLO
coronavirus stress scenario to assume half of the corporate
exposure on Negative Outlook is downgraded by one notch instead of
100%. For more details on Fitch’s pandemic -related stresses see
"Fitch Ratings Expects to Revise Significant Share of CLO Outlooks
to Stable."

For ALME Loan Funding II, the performance of the portfolio has been
stable and the amortisation of notes could improve the breakeven
default rate cushions and credit enhancement levels leading to
potential upgrades of the notes. Accordingly, Fitch has revised the
Outlook on the class C notes to Positive from Stable.

'B'/'B-'Portfolio:

Fitch assesses the average credit quality of the obligors to be in
the 'B'/'B-' category. As at 23 January 2021, the Fitch-calculated
WARF of the portfolios is in the range of 33.91 to 34.41.

High Recovery Expectations:

For all three deals, 99% of the portfolio comprises senior secured
obligations. Fitch views the recovery prospects for these assets as
more favourable than for second-lien, unsecured and mezzanine
assets. As per the latest trustee reports, the Fitch weighted
average recovery rate (WARR) of the portfolios is in the range of
62.6% to 65.8%.

Portfolio Well Diversified

For all three deals, the portfolios are well diversified across
obligors, countries and industries. The top 10 obligor
concentration is no more than 16%, and no obligor represents more
than 2.3% of the portfolio balance. The top-Fitch industry and top
three Fitch industry concentration is also within the defined
limits of 17.5% and 40% respectively

Deviation from Model-Implied Ratings (MIR)

Fitch used a customised proprietary cash flow model to replicate
the principal and interest waterfalls and the various structural
features of the transactions, and to assess their effectiveness,
including the structural protection provided by excess spread
diverted through the par value and interest coverage tests. The
transactions were modelled using the current portfolios and the
current portfolios with a coronavirus sensitivity analysis. Fitch's
coronavirus sensitivity analysis was based on a stable
interest-rate scenario only but included the front-, mid- and
back-loaded default timing scenarios as outlined in Fitch's
criteria.

For ALME Loan Funding II, the MIRs for the class C and D notes is
one notch above and for the class E notes two notches above the
current ratings. However, Fitch has deviated from the MIRs given
the deal has not started to amortise yet and portfolio performance
post reinvestment period needs to be monitored before any upgrades.
Moreover, for the class D notes the breakeven default cushion at
MIR is very small, which could erode if there is any negative
credit migration.

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.

-- For ALME III and IV, 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.

-- For ALME II, upgrades may occur in case of continued better
    than initially expected portfolio credit quality and deal
    performance, leading to higher CE for the notes and excess
    spread available to cover for losses on the remaining
    portfolio. Upgrades would be more likely for the investment
    grade tranches if the transaction deleverages and the
    portfolio credit quality remains stable.

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 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 Senistivity

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 potential severe downside
stress incorporates the following stresses: applying a notch
downgrade to all the corporate exposure on Negative Outlook. This
scenario does not result in downgrade across the capital
structure.

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

ALME Loan Funding II DAC, ALME Loan Funding III DAC, ALME Loan
Funding IV DAC

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. 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.


ARES EUROPEAN X: Fitch Affirms B- Rating on Class F Debt
--------------------------------------------------------
Fitch Ratings has affirmed Fitch Affirms Ares European CLO X DAC
with Stable Outlook.

     DEBT                 RATING           PRIOR
     ----                 ------           -----
ARES European CLO X DAC

A XS1859494277      LT  AAAsf  Affirmed    AAAsf
B-1 XS1859494863    LT  AAsf   Affirmed    AAsf
B-2 XS1859493469    LT  AAsf   Affirmed    AAsf
C XS1859493972      LT  Asf    Affirmed    Asf
D XS1859494608      LT  BBB-sf Affirmed    BBB-sf
E XS1859496645      LT  BBsf   Affirmed    BBsf
F XS1859495670      LT  B-sf   Affirmed    B-sf

TRANSACTION SUMMARY

This is a cash flow CLO mostly comprising senior secured
obligations. The transaction is still in the reinvestment period
and is actively managed by the manager.

KEY RATING DRIVERS

Resilient to Coronavirus Stress

The affirmation reflects broadly stable portfolio credit quality
since July 2020. The Stable Outlook on all investment grade notes,
and the revision of the Outlook on the sub-investment grade notes
to Stable from Negative reflect the default rate cushion in the
sensitivity analysis ran in light of the coronavirus pandemic.
Fitch has recently updated its CLO coronavirus stress scenario to
assume half of the corporate exposure on Negative Outlook is
downgraded by one notch instead of 100%. For more details on
Fitch's pandemic -related stresses see "Fitch Ratings Expects to
Revise Significant Share of CLO Outlooks to Stable."

Average Portfolio Quality

The portfolio's weighted average credit quality is 'B'/'B-'. By
Fitch's calculation, the portfolio weighted average rating factor
is 34.5 and would increase by 1.6 points in the coronavirus
baseline sensitivity analysis. Assets with a Fitch-derived rating
(FDR) on Negative Outlook make up 30% of the portfolio balance.
Assets with a FDR in the 'CCC' category or below per Fitch's
calculation make up about 3.7% and would be 3.5% if excludes one
unrated asset in the portfolio.

The transaction is slightly below par. All tests including the
coverage tests are passing. The portfolio is reasonably diversified
with the top 10 obligors,the largest obligor and the industry
exposure within the limits of the portfolio profile tests.

Close to 100% of the portfolio comprises senior secured
obligations, which have more favourable recovery prospects than
second-lien, unsecured and mezzanine assets. The reported Fitch
weighted average recovery rate of the current portfolio is 65.3%,
per the investor report.

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. This is because the portfolio
    credit quality may still deteriorate, not only by natural
    credit migration, but also because of reinvestment.

-- After the end of the reinvestment period, upgrades may occur
    in the event of 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 build-up of the notes' credit
    enhancement following amortisation does not compensate for a
    higher loss expectation than initially assumed due to
    unexpected high level of default and portfolio deterioration.
    As the disruptions to supply and demand due to the Covid-19
    disruption become apparent for other sectors, loan ratings in
    those sectors would also come under pressure. Fitch will
    update the sensitivity scenarios in line with the view of
    Fitch's Leveraged Finance team.

-- Coronavirus Potential Severe Downside Stress Scenario: 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 potential severe
    downside stress incorporates the following stresses: applying
    a notch downgrade to all the corporate exposure on Negative
    Outlook. This scenario does not result in downgrades across
    the capital structure.

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

ARES European CLO X DAC

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. 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.


CARA PHARMACY: High Court Approves Survival Scheme
--------------------------------------------------
Mary Carolan at The Irish Times reports that a High Court judge has
approved a survival scheme for the Cara group of pharmacies which
will see more than 150 jobs retained and more than EUR14 million
invested in the group.

Mr. Justice Denis McDonald said on Jan. 28 he was satisfied the
relevant statutory requirements were met for him to approve the
scheme for 10 group companies, with the effect they would
examinership on Feb. 1, The Irish Times relates.

According to The Irish Times, the judge will issue a written
judgment on a later date giving reasons for his decision.  That
will also address whether there should be disclosure of details of
an employment termination agreement negotiated by two directors of
the group, Ramona Nicholas, a former presenter of RTE's Dragons'
Den, and her husband Canice Nicholas, with Renrew Ltd, which is
investing more than EUR14 million in the group, The Irish Times
notes.

The couple have asked the court to keep the agreement details
confidential, The Irish Times relays.

The judge, as cited by The Irish Times, said he cannot give a
commitment concerning confidentiality until he has examined the
details of the agreement, which has been provided to the court at
its request.

In approving the survival scheme, the judge praised the HSE for its
efforts to allocate Community Pharmacy Contracts to the companies,
and the Revenue for its pragmatic approach to issues, including
providing a temporary tax clearance certificate, out of concerns
about preserving employment, The Irish Times discloses.

Last September, the court confirmed the appointment of Mr. Tyrrell
as examiner following an earlier application by the group's lender
and largest creditor, Elm Corporate Credit, The Irish Times
recounts.

Neil Steen SC, for the examiner, subsequently got court permission
to negotiate and execute an investment agreement as part of a
survival scheme, The Irish Times states.  The court heard there had
been 17 expressions of interest from potential investors, The Irish
Times notes.


CROSTHWAITE PARK: Fitch Affirms B- Rating on Class E Debt
---------------------------------------------------------
Fitch Ratings has affirmed Crosthwaite Park CLO DAC and Palmerston
Park CLO DAC and revised the Outlooks on the junior tranches to
Stable from Negative.

       DEBT                    RATING          PRIOR
       ----                    ------          -----
Crosthwaite Park CLO DAC

A-1A XS1934761047       LT  AAAsf  Affirmed    AAAsf
A-1B XS1934766434       LT  AAAsf  Affirmed    AAAsf
A-2A XS1934769453       LT  AAsf   Affirmed    AAsf
A-2B XS1934772671       LT  AAsf   Affirmed    AAsf
B XS1934774370          LT  Asf    Affirmed    Asf
C XS1934775690          LT  BBB-sf Affirmed    BBB-sf
D XS1934782803          LT  BB-sf  Affirmed    BB-sf
E XS1934782985          LT  B-sf   Affirmed    B-sf

Palmerston Park CLO DAC

A-1AR XS2068992630     LT  AAAsf   Affirmed    AAAsf
A-1BR XS2068993281     LT  AAAsf   Affirmed    AAAsf
A-2A XS1566961618      LT  AAsf    Affirmed    AAsf
A-2B XS1566962269      LT  AAsf    Affirmed    AAsf
B-1R XS2068993950      LT  Asf     Affirmed    Asf
B-2R XS2068994503      LT  Asf     Affirmed    Asf
C XS1566964125         LT  BBBsf   Affirmed    BBBsf
D XS1566965106         LT  BBsf    Affirmed    BBsf
E XS1566965015         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 Blackstone/GSO Debt Funds Management
Europe Limited.

KEY RATING DRIVERS

Stable Performance: Crosthwaite Park CLO was above par by 0.46% as
of the latest investor report dated 3 December 2020. All portfolio
profile tests, collateral quality tests and coverage tests were
passing except for Fitch’s weighted average rating factor (WARF)
test (33.3 versus a limit of 33) and Fitch’s weighted average
recovery rate (WARR) test (65.4% versus a minimum of 65.53%).
Exposure to assets with a Fitch-derived rating (FDR) of 'CCC+' and
below was below the 7.5% limit, at 4.42%.

Palmerston Park CLO was above par by 0.3% as of the latest investor
report dated 06 January 2021. All portfolio profile tests,
collateral quality tests and coverage tests were passing except for
Fitch’s 'CCC' test (8.13% versus a limit of 7.5%) and Fitch’s
WARF test (34.76 versus a limit of 34.5). There is no exposure to
defaulted assets in either CLO as per the most recent reports.

Resilient to Coronavirus Stress

The affirmations reflect broadly stable portfolio credit quality
since September 2020. The Stable Outlooks on all investment grade
notes, and the revision of the Outlook on the sub-investment grade
notes to Stable from Negative reflect the default rate cushion in
the sensitivity analysis ran in light of the coronavirus pandemic.
Fitch has recently updated its CLO coronavirus stress scenario to
assume half of the corporate exposure on Negative Outlook is
downgraded by one notch instead of 100%. For more details on
Fitch's pandemic -related stresses, see "Fitch Ratings Expects to
Revise Significant Share of CLO Outlooks to Stable."

'B'/'B-' Portfolio

Fitch assesses the average credit quality of the obligors in the
'B'/'B-' category in both portfolios. The Fitch WARF calculated by
Fitch (assuming unrated assets are CCC) and by the trustee for
Crosthwaite Park's current portfolio was 33.69 and 33.30,
respectively, above the maximum covenant of 33.00. The Fitch WARF
calculated by Fitch (assuming unrated assets are CCC) and by the
trustee for Palmerstone Park, was 34.80 and 34.76, respectively,
above the maximum covenant of 34.50. The Fitch WARF would increase
by 1.47 and 1.52 for Crosthwaite Park and Palmerston Park,
respectively, after applying the coronavirus stress.

High Recovery Expectations

Senior secured obligations comprise at least 98.5% of both
portfolios. Fitch views the recovery prospects for these assets as
more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch WARR of the portfolio was reported by the trustee
at 65.4% for Crosthwaite Park and 64.4% for Palmerston Park as of
the latest investor reports.

Diversified Portfolio

Both portfolios are well-diversified across obligors, countries and
industries. The top 10 obligor concentration is no more than 12.5%
in both CLOs, and no obligor represents more than 1.5% 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 standardized stress portfolio
    (Fitch's stressed portfolio) that was customized 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. This is because the portfolio
    credit quality may still deteriorate, not only by natural
    credit migration, but also because of reinvestment.

-- After the end of the reinvestment period, upgrades may occur
    in the event of 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 build-up of the notes' credit
    enhancement following amortisation does not compensate for a
    higher loss expectation than initially assumed due to
    unexpected high level of default and portfolio deterioration.
    As the disruptions to supply and demand due to the Covid-19
    disruption become apparent for other sectors, loan ratings in
    those sectors would also come under pressure. Fitch will
    update the sensitivity scenarios in line with the view of
    Fitch's Leveraged Finance team.

-- Coronavirus Potential Severe Downside Stress Scenario: 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 potential severe
    downside stress incorporates the following stresses: applying
    a notch downgrade to all the corporate exposure on Negative
    Outlook. This scenario does not result in downgrade across the
    capital structure.

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

Crosthwaite Park CLO DAC, Palmerston Park CLO 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.


HENLEY CLO IV: Fitch Assigns B-(EXP) Rating on Class F Debt
-----------------------------------------------------------
Fitch Ratings has assigned Henley CLO IV DAC expected ratings.

The assignment of final ratings is contingent on the receipt of
final documents being in line with the information received for the
expected ratings.

DEBT                         RATING         
----                         ------         
Henley CLO IV DAC

A                    LT  AAA(EXP)sf  Expected Rating
B-1                  LT  AA(EXP)sf   Expected Rating
B-2                  LT  AA(EXP)sf   Expected Rating
C                    LT  A(EXP)sf    Expected Rating
D                    LT  BBB-(EXP)sf Expected Rating
E                    LT  BB-(EXP)sf  Expected Rating
F                    LT  B-(EXP)sf   Expected Rating
Subordinated Notes   LT  NR(EXP)sf   Expected Rating

TRANSACTION SUMMARY

Henley CLO IV DAC is a securitisation of mainly senior secured
obligations (at least 90%) with a component of senior unsecured,
mezzanine, second-lien loans, first-lien, last-out loans and
high-yield bonds. Note proceeds will be used to fund a portfolio
with a target par of EUR400 million. The portfolio will be actively
managed by Napier Park Global Capital Ltd (NPGC). The transaction
has a 4.3-year reinvestment period and an 8.5-year weighted average
life (WAL).

KEY RATING DRIVERS

Average Portfolio Credit Quality (Neutral): Fitch assesses the
average credit quality of obligors in the 'B'/'B-' category. The
Fitch weighted average rating factor (WARF) of the identified
portfolio is 34.42.

High Recovery Expectations (Positive): At least 90% of the
portfolio will comprise 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 (WARR) of the identified portfolio is
62.46%.

Diversified Portfolio (Positive): The indicative maximum exposure
of the 10 largest obligors for assigning the expected ratings is
18% of the portfolio balance. The transaction also includes various
concentration limits, including the maximum exposure to the
three-largest (Fitch-defined) industries in the portfolio at 40%.
These covenants ensure that the asset portfolio will not be exposed
to excessive concentration.

Portfolio Management (Positive): The transaction has a 4.35-year
reinvestment period and includes reinvestment criteria similar to
those of other European transactions. Fitch's analysis is based on
a stressed-case portfolio with the aim of testing the robustness of
the transaction structure against its covenants and portfolio
guidelines.

Deviation from Model-Implied Rating (Negative): The expected
ratings of the class E and F notes are one notch higher than the
model-implied rating (MIR). The ratings are supported by average
credit enhancement, as well as the significant default cushion on
the identified portfolio at the assigned ratings due to the notable
cushion between the covenants of the transaction and the
portfolio's parameters. The notes pass the assigned ratings based
on the identified portfolio and the coronavirus sensitivity
analysis that is used for surveillance.

The class F notes' rating deviation from the MIR of 'CCC' reflects
Fitch's view of a significant margin of safety provided by credit
enhancement. The notes do not currently present a "real possibility
of default", which is Fitch's rating definition of 'CCC'.

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 positive
rating action/upgrade:

-- A 25% reduction of the mean default rate (RDR) across all
    ratings and a 25% increase in the recovery rate (RRR) across
    all ratings will result in an upgrade of no more than five
    notches across the structure, apart from the class A which is
    already at the highest 'AAAsf' rating.

-- At closing, Fitch will use a standardised stress portfolio
    (Fitch's stressed portfolio) that is 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 by natural credit
    migration, but also through reinvestments.

-- After the end of the reinvestment period, upgrades may occur
    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:

-- A 25% increase of the mean RDR across all ratings and a 25%
    decrease of the RRR across all ratings will result in
    downgrades of between two and five notches cross the
    structure.

Coronavirus Baseline Scenario Impact

-- Fitch carried out a sensitivity analysis on the target
    portfolio to envisage the coronavirus baseline scenario. The
    agency notched down the ratings for half of assets with
    corporate issuers on Negative Outlook regardless of sector.
    This scenario shows resilience of the assigned ratings, with a
    substantial cushion across all the notes.

Coronavirus Downside Scenario Impact

-- Fitch also considers a sensitivity analysis that contemplates
    a more severe and prolonged economic stress. The downside
    sensitivity incorporates a single-notch downgrade to all
    Fitch-derived ratings of assets with corporate issuers on
    Negative Outlook regardless of sector. Under this downside
    scenario, all classes pass the current ratings. For more
    information on Fitch's stressed portfolio and initial MIR
    sensitivities, see the pre-sale report.

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

The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other Nationally
Recognised Statistical Rating Organisations 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. Overall, 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.


KEATING CONSTRUCTION: Faces Liquidation, Owes EUR30 Million
-----------------------------------------------------------
Clare.fm reports that a West Clare construction company is facing
liquidation after the High Court was told examiners will not be
able to save the business.

According to Clare.fm, the Currency relates that Keating
Construction in Kilmihil will be wound up having faced debts of
around EUR30 million.

The firm employs around 150 workers and had been contracted to
conduct building works on the new county library project in Ennis
this year, Clare.fm discloses.

This contract was terminated once the company entered examinership,
and a new contractor is being sought by the local authority under a
fresh tendering process, Clare.fm notes.

It's believed a related company, Kilmihil Rental Store, a
specialist plant and equipment business, will also be liquidated,
Clare.fm states.


MADISON PARK XIV: Fitch Alters Outlook on F Debt's Rating to Stable
-------------------------------------------------------------------
Fitch Ratings has affirmed Madison Park Euro Funding V and XIV DAC
and revised the Outlooks on the class E and F notes to Stable from
Negative.

       DEBT                 RATING           PRIOR
       ----                 ------           -----
Madison Park Euro Funding XIV DAC

A-1 XS2002365307      LT  AAAsf   Affirmed   AAAsf
A-2 XS2002365646      LT  AAAsf   Affirmed   AAAsf
B-1 XS2002366024      LT  AAsf    Affirmed   AAsf
B-2 XS2002366453      LT  AAsf    Affirmed   AAsf
C-1 XS2002366701      LT  Asf     Affirmed   Asf
C-2 XS2002366966      LT  Asf     Affirmed   Asf
D XS2002367188        LT  BBB-sf  Affirmed   BBB-sf
E XS2002367428        LT  BB-sf   Affirmed   BB-sf
F XS2002367857        LT  B-sf    Affirmed   B-sf

Madison Park Euro Funding V B.V.

Class A XS1578107820  LT  AAAsf   Affirmed   AAAsf
Class B1 XS1578108398 LT  AAsf    Affirmed   AAsf
Class B2 XS1589879961 LT  AAsf    Affirmed   AAsf
Class C XS1578108638  LT  Asf     Affirmed   Asf
Class D XS1578108984  LT  BBBsf   Affirmed   BBBsf
Class E XS1578109362  LT  BBsf    Affirmed   BBsf
Class F XS1578109289  LT  B-sf    Affirmed   B-sf

TRANSACTION SUMMARY

Madison Park Euro Funding V and XIV DAC are cash flow CLOs mostly
comprising senior secured obligations. The transactions are still
within their reinvestment period and are actively managed by Credit
Suisse Asset Management, LLC.

KEY RATING DRIVERS

Resilient to Coronavirus Stress: The affirmations reflect a broadly
stable portfolio credit quality since November 2020 and June 2020.
The Stable Outlooks on all investment grade notes, and the revision
of the Outlooks on the sub-investment grade notes to Stable from
Negative reflect the default rate cushion in the sensitivity
analysis Fitch ran in light of the coronavirus pandemic. Fitch has
recently updated its CLO coronavirus stress scenario to assume half
of the corporate exposure on Negative Outlook is downgraded by one
notch instead of 100%. For more details on Fitch’s
pandemic-related stresses see "Fitch Ratings Expects to Revise
Significant Share of CLO Outlooks to Stable."

Stable Asset Performance: The transactions are still in their
reinvestment periods and the portfolios are actively being managed
by the collateral manager. Madison Park Euro Funding V is above par
by 17bp as of the investor report on 21 December 2020 and Madison
Park Euro Funding XIV is below par by 22bp as of the investor
report on 6 January 2021.

For Madison Park Euro Funding V, another rating agency and Fitch's
weighted average rating factor (WARF) test, the Fitch weighted
average recovery rate test, the minimum weighted average coupon
test, the minimum weighted average spread test, and Fitch and
another rating agency's 'CCC' tests are failing. All other
portfolio profile tests, collateral quality tests and coverage
tests are passing. For Madison Park Euro Funding XIV, all portfolio
profile tests, collateral quality tests and coverage tests are
passing except for another rating agency and Fitch's WARF test, and
Fitch and another rating agency's 'CCC' tests.

Exposure to assets with a Fitch derived rating of 'CCC+' and below
is 8.07% and 7.88% (excluding non-rated assets) for Madison Park
Euro V and XIV, respectively. Both transactions have one defaulted
asset each.

'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the obligors to be in the 'B'/'B-' category for the transaction.
The Fitch WARF calculated by Fitch of 35.20 and 35.15 (assuming
unrated assets are 'CCC') and calculated by the trustee of 35.28
and 35.50 of the current portfolios are above the maximum covenant
of 32.50 and 34.00. The Fitch WARF would increase by 1.73 and 1.65
after applying the coronavirus stress.

High Recovery Expectations: Of the portfolios, 97.70% and 99.05%
comprise senior secured obligations. Fitch views the recovery
prospects for these assets as more favourable than for second-lien,
unsecured and mezzanine assets.

Portfolio Well Diversified: The portfolios are well diversified
across obligors, countries and industries. The top 10 obligor
concentration is 16.01% and 13.19%, for Madison Park Euro Funding V
and XIV, respectively, and no obligor represents more than 2.32%
and 1.73% of the portfolio balance.

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 on Negative Outlook. For typical European
CLOs this scenario does not result in any downgrades.

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

Madison Park Euro Funding V B.V., Madison Park Euro Funding XIV
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.




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

CAIRN CLO III: Fitch Affirms B- Rating on Class F Debt
------------------------------------------------------
Fitch Ratings has upgraded Cairn CLO III B.V.'s class B-R, C-R and
D-R notes and affirmed the others. The Outlook on the class E and F
notes has been revised to Stable from Negative.

      DEBT                  RATING            PRIOR
      ----                  ------            -----
Cairn CLO III B.V.

A-R XS1692485326      LT  AAAsf  Affirmed     AAAsf
B-R XS1692485672      LT  AA+sf  Upgrade      AAsf
C-R XS1692486217      LT  A+sf   Upgrade      Asf
D-R XS1692486563      LT  BBB+sf Upgrade      BBBsf
E XS1298616811        LT  BBsf   Affirmed     BBsf
F XS1298620417        LT  B-sf   Affirmed     B-sf

TRANSACTION SUMMARY

The transaction is a cash-flow collateralised loan obligation
backed by a portfolio of mainly European leveraged loans and bonds.
The transaction is out of its reinvestment period.

KEY RATING DRIVERS

Transaction Deleveraging

The upgrades reflect the deleveraging of the transaction since its
reinvestment period ended in October 2019. The class A-R notes have
paid-down EUR28.7 million over the last 12 months, increasing
credit enhancement to 43.7% from 39.5%. As per the report the Fitch
weighted average rating factor (WARF) test is failing marginally at
the current matrix point. However, the transaction can switch to
another passing point in matrix. The transaction has not reinvested
since September 2020. The manager has plans to update another
rating agency's WARF definition as per its updated methodology. If
this WARF were to pass following the amendment, the manager could
be able to reinvestment unscheduled principal proceed and sale
proceed.

Average Portfolio performance

The affirmations and upgrades also reflect the average portfolio
performance. The transaction is slightly below par by 85bp after
considering 1.43% of defaulted assets at Fitch recovery value as
per the trustee report dated 21 December 2020. All portfolio
profile tests, coverage tests and collateral quality tests were
passing except for the Fitch WARF test. Assets with a Fitch-derived
rating (FDR) in the 'CCC' category or below per Fitch's calculation
make up about 3.7% of the aggregate collateral balance.

Resilience to Coronavirus Stress:

The affirmations reflect broadly stable portfolio credit quality
since July 2020. The Stable Outlook on all investment grade notes,
and the revision of the Outlook on the sub-investment grade notes
to Stable from Negative reflect the default rate cushion in the
sensitivity analysis ran in light of the coronavirus pandemic.
Fitch has recently updated its CLO coronavirus stress scenario to
assume half of the corporate exposure on Negative Outlook is
downgraded by one notch instead of 100%. For more details on
Fitch's pandemic -related stresses see "Fitch Ratings Expects to
Revise Significant Share of CLO Outlooks to Stable."

Deviation from Model-Implied Ratings

Fitch used a customised proprietary cash flow model to replicate
the principal and interest waterfalls and the various structural
features of the transactions, and to assess their effectiveness,
including the structural protection provided by excess spread
diverted through the par value and interest coverage tests. The
transactions were modelled using the current portfolios and the
current portfolios with a coronavirus sensitivity analysis. Fitch's
coronavirus sensitivity analysis was based on a stable
interest-rate scenario only but included the front-, mid- and
back-loaded default timing scenarios as outlined in Fitch's
criteria.

The model-implied ratings for the class B-R, E notes are one notch
above the current ratings and two notches above the current rating
of the class F notes. However, Fitch has deviated from the
model-implied ratings as these tranches reflect either tight
cushion or shortfalls in the baseline coronavirus stress scenario
at the model-implied ratings.

'B'/'B-' Portfolio:

Fitch assesses the average credit quality of the obligors to be in
the 'B'/'B-' category. As at 23 January 2021, the Fitch-calculated
WARF of the portfolio was 34.57, slightly lower than the
trustee-reported WARF of 21 December 2020 of 34.67, owing to rating
migration.

High Recovery Expectations:

Of the portfolio, 99% 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 (WARR) of the current portfolio is
61.4% as per the report.

Portfolio Well Diversified:

The portfolio is well diversified across obligors, countries and
industries. The top 10 obligors' concentration is 19.66% and no
obligor represents more than 2.49% of the portfolio balance. As per
Fitch's calculation the largest industry is healthcare at 15.79% of
the portfolio balance, against limits of 17.5%.

RATING SENSITIVITIES

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

-- A reduction of the default rate (RDR) at all rating levels by
    25% of the mean RDR and an increase in the recovery rate (RRR)
    by 25% at all rating levels would result in an upgrade of up
    to five notches depending on the notes. Except for the class
    A-R notes, are already at the highest 'AAAsf' rating, upgrades
    may occur in case of better than expected portfolio credit
    quality and deal performance, leading to higher credit
    enhancement and excess spread available to cover for losses on
    the remaining portfolio. If the asset prepayment is faster
    than expected and outweighs the negative pressure of the
    portfolio migration, this could increase credit enhancement
    and put upgrade pressure on the non-'AAAsf' rated notes.

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

-- An increase of the RDR at all rating levels by 25% of the mean
    RDR and a decrease of the RRR by 25% at all rating levels will
    result in downgrades of no more than five notches depending on
    the notes. 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 level of default and portfolio
    deterioration. As the disruptions to supply and demand due to
    Covid-19 become apparent for other vulnerable sectors, loan
    ratings in those sectors would also come under pressure. Fitch
    will update the sensitivity scenarios in line with the view of
    its Leveraged Finance team.

Coronavirus Potential Severe Downside Stress Scenario

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 potential severe downside
stress incorporates the following stresses: applying a notch
downgrade to all the corporate exposure on Negative Outlook. This
scenario shows resilience of the current ratings of all the classes
of notes.

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

Cairn CLO III B.V.

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.


CAIRN CLO X: Fitch Affirms B- Rating on Class F Debt
----------------------------------------------------
Fitch Ratings has affirmed Cairn CLO X B.V. and revised the Outlook
on the class D, E and F to Stable from Negative.

      DEBT                 RATING          PRIOR
      ----                 ------          -----
Cairn CLO X B.V.

A XS1880992208      LT  AAAsf  Affirmed    AAAsf
B-1 XS1880992547    LT  AAsf   Affirmed    AAsf
B-2 XS1880990764    LT  AAsf   Affirmed    AAsf
C-1 XS1880993354    LT  Asf    Affirmed    Asf
C-2 XS1880991655    LT  Asf    Affirmed    Asf
D XS1880993941      LT  BBBsf  Affirmed    BBBsf
E XS1880994246      LT  BBsf   Affirmed    BBsf
F XS1880994329      LT  B-sf   Affirmed    B-sf

TRANSACTION SUMMARY

Cairn CLO X B.V. is a cash flow CLO mostly comprising senior
secured obligations. The transaction is within its reinvestment
period and is actively managed by its collateral manager.

KEY RATING DRIVERS

Stable Asset Performance:

The transaction is slightly below par by 16bp as of the latest
investor report available. As per the report, the Fitch weighted
average rating factor (WARF) test is slightly failing. Other than
these all other portfolio profile tests, coverage tests and
collateral quality tests are passing. The report also states 0.80 %
of defaulted assets. As per 23 January, exposure to assets with a
Fitch-derived rating of 'CCC+' and below is 4.72% within the limit
of 7.50%.

Resilience to Coronavirus Stress:

The affirmation reflects a broadly stable portfolio credit quality.
The Stable Outlook on all investment grade notes, and the revision
of the Outlook on the sub-investment grade notes to Stable from
Negative reflect the default rate cushion in the sensitivity
analysis ran in light of the coronavirus pandemic. Fitch has
recently updated its CLO coronavirus stress scenario to assume half
of the corporate exposure on Negative Outlook is downgraded by one
notch instead of 100%. For more details on Fitch's pandemic
-related stresses see "Fitch Ratings Expects to Revise Significant
Share of CLO Outlooks to Stable."

'B'/'B-' Portfolio:

Fitch assesses the average credit quality of the obligors to be in
the 'B'/'B-' category. As at 23 January 2021, the Fitch-calculated
WARF of the portfolio was 34.14, slightly lower than the
trustee-reported WARF of 5 January 2021 of 34.36, owing to rating
migration.

High Recovery Expectations:

Of the portfolio, 99% 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 (WARR) of the current portfolio is
63.1% as per the report.

Portfolio Well Diversified:

The portfolio is well diversified across obligors, countries and
industries. The top 10 obligors' concentration is 16.2% and no
obligor represents more than 2.4% of the portfolio balance. As per
Fitch's calculation, the largest industry is business services at
18.62% of the portfolio balance, against a limit of 17.50%.

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 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. This is because the portfolio credit
    quality may still deteriorate, not only by natural credit
    migration, but also because of reinvestment.

-- After the end of the reinvestment period, upgrades may occur
    in the event of 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 an unexpected high
    level of default and portfolio deterioration. As disruptions
    to supply and demand due to the pandemic become apparent for
    other vulnerable sectors, loan ratings in those sectors would
    also come under pressure. Fitch will update the sensitivity
    scenarios in line with the view of its leveraged finance team.

Coronavirus Potential Severe Downside Stress Scenario

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 potential severe downside
stress incorporates the following stresses: applying a notch
downgrade to all the corporate exposure on Negative Outlook. This
scenario shows resilience of the current ratings of all the classes
of notes.

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

Cairn CLO X B.V.

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.


CONTEGO CLO III: Fitch Alters Outlook on F-R Notes Rating to Stable
-------------------------------------------------------------------
Fitch Ratings has revised the Outlook on Contego CLO III BV class
E-R and F-R notes to Stable from Negative. All ratings have been
affirmed.

      DEBT                 RATING            PRIOR
      ----                 ------            -----
Contego CLO III B.V.

A-R XS1785844215     LT  AAAsf  Affirmed     AAAsf
B1-R XS1785845378    LT  AAsf   Affirmed     AAsf
B2-R XS1785845964    LT  AAsf   Affirmed     AAsf
C-R XS1785846772     LT  Asf    Affirmed     Asf
D-R XS1785847317     LT  BBBsf  Affirmed     BBBsf
E-R XS1785847580     LT  BBsf   Affirmed     BBsf
F-R XS1785847747     LT  B-sf   Affirmed     B-sf

TRANSACTION SUMMARY

Contego CLO III BV is a cash flow CLO mostly comprising senior
secured obligations. The transaction is still within its
reinvestment period and is actively managed by Five Arrows Managers
LLP.

KEY RATING DRIVERS

Stable Asset Performance: The transaction was below par by 1.02% as
of the investor report on 5 January 2021. All portfolio profile
tests, collateral quality tests and coverage tests were passing.
Exposure to assets with a Fitch-derived rating (FDR) of 'CCC+' and
below was 7.39% (excluding non-rated assets). The transaction had
no defaulted assets as of the same report.

Stable Outlooks Based on Coronavirus Stress: The Outlooks on the
class E-R and F-R notes have been revised to Stable from Negative
as a result of a sensitivity analysis Fitch ran in light of the
coronavirus pandemic. Fitch has recently updated its CLO
coronavirus stress scenario to assume half of the corporate
exposure on Negative Outlook (24.1% of the portfolio) was
downgraded by one notch, instead of 100%. All notes have a positive
cushion under this cash flow model run. For more details on
Fitch’s pandemic -related stresses see "Fitch Ratings Expects to
Revise Significant Share of CLO Outlooks to Stable."

'B' /'B-' Portfolio: Fitch assesses the average credit quality of
the obligors in the 'B' /'B-' category for the transaction. The
Fitch weighted average rating factor (WARF) calculated by the
agency at 34.33 (assuming unrated assets are 'CCC') and calculated
by the trustee at 34.16 for the current portfolio are below the
maximum covenant of 35. The Fitch WARF increases by 1.01 after
applying the coronavirus stress.

High Recovery Expectations: Senior secured obligations comprise
95.88% of the portfolio. Fitch views the recovery prospects for
these assets as more favourable than for second-lien, unsecured and
mezzanine assets.

Diversified Portfolio : The portfolio is well-diversified across
obligors, countries and industries. The top 10 obligor
concentration is 16.63%, and no obligor represents more than 2.05%
of the portfolio balance.

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 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 Scenario Impact

Fitch also considers a sensitivity analysis that contemplates a
more severe and prolonged economic stress. The downside sensitivity
incorporates a single-notch downgrade to all FDRs of assets with
corporate issuers on Negative Outlook regardless of sector. This
scenario results in single-notch lower ratings for the class E-R
and F-R notes.

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 has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. 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
Recognised Statistical Rating Organisations 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.

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.



===========
S E R B I A
===========

ATP VOJVODINA: Bankruptcy Agency Invites Bid for Sale of Assets
---------------------------------------------------------------
Radomir Ralev at SeeNews reports that Serbia's Bankruptcy
Supervision Agency is inviting bids for the sale of assets of
insolvent bus transport company ATP Vojvodina.

According to SeeNews, the Bankruptcy Supervision Agency said in a
statement on Jan. 30 the assets of ATP Vojvodina, with a combined
estimated value of about EUR5.3 million (US$6.4 million) will be
offered for sale in three lots and interested investors will be
able to place their bids until March 17.

The list of assets put up for sale includes a bus station,
buildings and a filling station in Novi Sad, SeeNews discloses.

ATP Vojvodina was declared bankrupt in January 2020, SeeNews
recounts.




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

MOTO VENTURES: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed Moto Ventures Limited's Long-Term Issuer
Default Rating (IDR) at 'B-'. The Outlook is Stable. Fitch has also
affirmed Moto's GBP150 million second-lien debt at 'CCC+'/RR5.

The rating incorporates the increased refinancing risk with
maturities within 14 months. This is mitigated by Moto's underlying
robust business model and sufficient liquidity to weather the third
national lockdown, as reflected in the Stable Outlook.

The pandemic will continue to have a significant impact on Moto's
trading in 2021, when Fitch expects its leverage metrics will still
exceed levels commensurate with a 'B-' rating. However, Fitch
believes Moto will revert to steady earnings and operating cash
flows once the pandemic abates.

Fitch expects recovery from 2Q21, following vaccine rollout and
lifting of restrictions, and free cash flow (FCF) to return towards
break-even in 2021 before moving into positive territory thereafter
(excluding dividends). If restrictions are lifted more permanently,
Fitch expects funds from operations (FFO) adjusted leverage to
return to around 8.0x in 2022 and FFO fixed charge cover moving
comfortably above 2.0x. If the recovery is materially weaker than
planned or there is no progress on refinancing of its debt
structure by end-2021, this will likely have a negative impact on
the rating.

KEY RATING DRIVERS

Continued Significant Pandemic Impact: Fitch forecasts 2021 EBITDA
will remain around 40% below the 2019 level, amid a third national
lockdown in the UK. Fitch expects a 30% drop in fuel volumes and a
55% fall in retail and catering revenues during 1Q21 vs 1Q19. Moto
is operating more services than just fuel operations & forecourt,
unlike under the first national lockdown, but at reduced hours.
Fitch forecasts a gradual recovery from 2Q21, as restrictions ease
and traffic picks up, with overall 2021 non-fuel revenues 20% below
2019 level, compared with an estimated actual 40% drop in 2020.

Fitch expects a larger reduction in 2020 EBITDA of 65% below the
2019 level compared with Fitch's previous projections (-45%), amid
two national lockdowns, the resulting reduction in traffic on
motorways and temporary closures of retail and catering
facilities.

Continued Elevated Leverage: Fitch expects FFO adjusted gross
leverage at 11.7x in 2021 amid extended pandemic disruption,
exceeding Fitch's negative rating sensitivity. However, Fitch
expects it will swiftly decline to around 8.0x, a level
commensurate with its 'B-' rating, in 2022, a year later than
previously anticipated. The pandemic has exacerbated already
elevated leverage metrics following a period of expansionary capex
and favourable shareholder remuneration, even though dividends were
allowed under the terms of the debt facilities.

Increased Refinancing Risk: Fitch believes that Moto's refinancing
risk has increased, with upcoming debt maturities in March 2022
amid elevated leverage and continued uncertainty on post-pandemic
recovery. Nevertheless, Fitch believes the robust business model
with stable underlying earnings and cash generation capability
support Moto's ability to refinance, even if potentially at a
higher cost, without jeopardising Fitch's expectation of positive
FCF in 2022-2023. Moto also retains a number of refinancing options
supported by its largely protected, long-dated infrastructure-like
asset base.

Sufficient Liquidity: Under the scenario of a three-month national
lockdown in 1Q21, Moto has sufficient flexibility to weather the
crisis due to its satisfactory liquidity position (GBP15 million
cash as at September 2020, GBP50 million available undrawn
revolving credit facility; RCF), a lower expected impact on trading
from the current lockdown and its ability to reduce cash outflows.
Mitigating actions in 2020 included UK government support to cover
80% of furloughed staff wages, business rates holiday and a
reduction in variable costs. Moto's new Rugby site is forecast to
open in spring 2021. Fitch expects senior debt covenants to be
waived due to the prolonged pandemic and no dividend payments.

In a downside scenario where the activity level starts recovering
one month later and is slower, Moto may need to draw GBP10 million
under its RCF but retains sufficient available liquidity throughout
2021.

Quasi-Infrastructure Asset, Stable Operations: The rating remains
supported by Moto's intrinsically stable business model, given its
exposure to less discretionary motorway travel retail (although
still linked to GDP and traffic volumes), the largest national
network of motorway service areas (MSAs), favourable regulatory
environment, and well-managed franchise portfolio. This is
reflected in structurally stable operating cash flow generation and
low underlying capital maintenance needs, which support the group's
credit profile.

The stable operating risk profile is evidenced by historically
steady EBITDA, and Fitch's expectations of a recovering
Fitch-defined EBITDA margin towards a healthy 13% by 2023. This is
supported by an asset development plan around existing and new
sites. Expansionary capex will be largely covered by drawdowns
under the capex facility, which is expected to be drawn at GBP90
million by March 2022 when the facility matures.

Low, Steady Sales Growth: Fitch expects non-fuel 2022 revenues to
remain around 5% below 2019 on a like-for-like basis due to slow
GDP recovery, with single digit growth thereafter. The revenue mix
and continued effort in productivity improvement are contributing
to steady profitability. Moto's gross margin is supported by its
growing investment in catering amenities, which it operates under
franchises from retailers, such as Greggs, Burger King, and WH
Smith. A quicker recovery in traffic on motorways and better
scheduling of employees, despite growing wage inflation in the UK,
would support a quicker recovery and higher profitability than
under Fitch's rating case.

Fuel Volumes Fall: Fitch expects 2020 fuel volumes of around 15%
below 2019 (versus 10% below 2019 under the previous rating case),
followed by a slow recovery with 2021 volumes still 10% below 2019.
Fitch believes Moto will be able to maintain the margin per litre
and to broadly preserve its fuel gross margin. While fuel gross
margin (26% of total gross profit) was maintained in 2019 due to
increased margin per litre, volumes fell by around 5%. This was due
to a combination of factors including increased vehicle fuel
efficiency, hybridisation, careful consumer spending and
Brexit-related uncertainty.

DERIVATION SUMMARY

Moto's rating remains anchored around its robust business model,
which is temporarily disrupted by the pandemic, reflected in its
long-dated infrastructure-like asset base. Fitch expects Moto's
performance to be relatively resilient through the cycle once
social-distancing measures are relaxed, reflecting the
less-discretionary nature of motorway customers. Most of these
features are also present in Autobahn Tank & Rast GmbH, Germany's
largest MSA operator.

Due to the prolonged pandemic impact on Moto's operations Fitch
sees the activity rebound delayed, increasing Fitch's leverage
forecast to close to 12x in 2021 on FFO gross leverage basis, hence
compounding refinancing risks with first lien debt maturing in
March 2022. This compares with Fitch’s assumption in May 2020 of
an earlier rebound and leverage expectation of just above 8x.

Fitch expects Tank & Rast's revenue to be less affected by the
pandemic, with an expected 20% fall in 2020, versus 25% for Moto.
Tank & Rast follows a landlord-tenant model whereby it subleases
its sites in exchange for monthly fixed and variable-lease
payments, with most operating costs passed on to tenants. This
provides high revenue and profit visibility. Capex intensity is
low, translating into healthy FCF generation. This compares with
Moto's owner/operator business model, which provides high
flexibility to manage and control all commercial activity at its
sites, but leads to lower profit margins and weaker FCF than Tank &
Rast's.

Revenue at petrol-station operator, EG Group Limited (B-/Stable),
is likely to fall by less than Moto's as the impact on traffic on
motorways is heavier than in local towns during lockdowns. Both
groups had to close catering (which represents a larger portion of
revenue for Moto) during the first lockdown. The retail segment
fared better for EG group due to its locations being less affected
by the traffic decline. Both companies rely on non-fuel operations
to improve margins, and exhibit high leverage. EG Group has better
geographical diversification than Moto's concentration in the UK
even though Moto remains strategically positioned in more protected
motorway locations.

Both Moto and EG Group have pursued aggressive financial policies
that influence their ratings. For Moto, this was reflected in
regular dividend distributions, which are allowed by the lock-up
mechanism in its debt documentation and are partly covered by FCF.
EG Group has followed an aggressive debt-funded M&A strategy that
relies on synergy realisation to ensure long-term deleveraging.

KEY ASSUMPTIONS

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

-- Lockdown assumed to last for the full 1Q21, with gradual
    lifting of restrictions from 2Q21.

-- Overall non-fuel sales assumed 20% below 2019 level in 2021,
    and 5% below in 2022, and at par in 2023, excluding
    contribution of new sites.

-- 2021 fuel volume assumed 12% down in 2021 compared with 2019,
    showing progressive improvement, with only low-single digit
    growth in 2023.

-- Fuel margin per litre expected on average to remain close to
    the current level, with only minimal increases over the rating
    horizon.

-- Non-fuel margin expected to return to 2019 level by 2023.

-- EBITDA margin to recover to 13% by 2023.

-- Rugby site opening in April 2021.

-- Reduced capex in 2021, at around GBP35 million thereafter.

-- No dividends.

-- Refinancing of existing debt at market prevailing rates in
    2022.

Key Recovery Assumptions:

According to Fitch's bespoke recovery analysis, higher recoveries
would be realised using a going-concern approach, despite Moto's
strong asset backing. Better recovery expectations by preserving
the business model, as opposed to liquidating its balance sheet,
reflect Moto's structurally cash-generative business and
well-managed franchise portfolio. Fitch has assumed a 10%
administrative claim.

Fitch assumes a GBP92 million going-concern EBITDA, revised
slightly down from GBP93 million in Fitch's previous review as
Fitch excludes the delayed Sawtry site addition; this implies a 17%
discount to FY19 EBITDA increased by the expected pro forma EBITDA
accretion from Rugby opening in 2021. Fitch maintains the 7.5x
EV/EBITDA multiple in distress given the infrastructure-like,
regulated nature of Moto's business. This compares with the 5.5x
multiple used for more traditional petrol station operator EG
Group.

The second-lien notes rank behind a sizeable amount of GBP600
million of first-lien bank debt, which includes a GBP450 million
term loan B, Moto's GBP60 million RCF assumed fully drawn and
around GBP90 million assumed drawn under its capex facility in 2021
(versus GBP79 million drawn by FYE20). Fitch's waterfall analysis
generated a ranked recovery in the 'RR5' band, indicating a 'CCC+'
instrument rating for the GBP150 million second lien notes. The
waterfall analysis output percentage on current assumptions stands
at 13%, down from the previous 23%.

The output percentage, and hence recovery rating on the second-lien
debt, is sensitive to even small movements in the assumptions
related to underlying going-concern EBITDA estimate and changes in
first-lien debt. A permanent reduction in senior debt could have a
positive impact on the second-lien debt rating.

RATING SENSITIVITIES

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

-- Good visibility of recovery to pre- Covid-19 gross profit
    margins and sales level in the non-fuel activities together
    with additional positive contribution from new sites driving
    EBITDA sustainably above GBP100 million;

-- Decline in FFO adjusted leverage to 7.5x or below on a
    sustained basis - this compares with the 6.0x 'B' median under
    Fitch's Corporate Generic Navigator, reflecting Moto's
    specific infrastructure-like business model;

-- FFO fixed charge cover of 2.5x or higher on a sustained basis;

-- Completed refinancing of debt facilities.

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

-- Lack of progress towards debt refinancing or maturities
    extension by end-2021;

-- Tightening liquidity amid further pandemic impact hampering
    prospect of an activity rebound in 2021;

-- FFO adjusted leverage increasing to above 9.0x on a sustained
    basis;

-- FFO fixed charge cover weakening to below 1.5x on a sustained
    basis, along with deteriorating liquidity buffer amid new
    coronavirus-related lockdowns.

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

Satisfactory Liquidity: Fitch views Moto's liquidity as
satisfactory following the additional RCF line secured in April.
The company was able to secure a GBP50 million RCF, added to the
current TLB documentation. This is enabling the company to fund any
potential liquidity shortfall, that Fitch expects could be possible
in March and April 2021, depending on how quickly restrictions are
lifted. Once activities resume, the company can rebuild its cash
position quickly as documentation restricts it from making dividend
distributions before the additional RCF is repaid or cancelled.

Reported cash balance of GBP20 million as at September 2020, of
which around GBP5 million is restricted, represents a satisfactory
position against no scheduled debt maturities in 2021.

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.


NORD GOLD: Fitch Affirms 'BB' LT IDR & Alters Outlook to Positive
-----------------------------------------------------------------
Fitch Ratings has revised the Outlook on UK-domiciled gold mining
company Nord Gold UK Societas's (Nordgold) Long-Term Issuer Default
Rating (IDR) to Positive from Stable and affirmed the IDR at 'BB'.

The revision of the Outlook reflects Fitch’s expectations of
material total debt reduction in 2021 following the strong 2020
results and improving business profile. The currently envisaged
investment plans and dividend policy imply low-digit negative
post-2020 free cash flow (FCF) margin and underpin Nordgold's funds
from operations (FFO) gross leverage remaining below the 1.5x
positive rating sensitivity. This is based on Fitch's conservative
gold price assumptions.

The rating reflects Fitch's expectation that Nordgold's performance
will moderate in 2021-2024 after a very strong 2019-2020, following
the ramp-up of the Gross mine, bolstered by a strong gold price
environment.

Fitch's assessment of Nordgold's business profile includes stable
to increasing production over 2021-2024 and declining, albeit
material, exposure to countries with a weak operating environment.

KEY RATING DRIVERS

Russia Drives Production Growth: The main area of the company's
growth is the Gross district in Yakutia where the Gross and Taborny
mines are located. Increased exposure to Russia rather than
countries with weaker economic and operating environments such as
Burkina Faso and Guinea is credit positive. Nordgold expanded its
processing capacity from 5.0 to 7.5 million tonnes per year at
Taborny in 2020, and is expanding the Gross mine in 2021-2022.

The final investment decision for another Russian project, Tokko,
is planned in 2021 and has the potential to produce 200 thousand oz
(koz). The company estimates capex for this project at USD400
million.

Flagship Gross Mine Cements Growth: Gross achieved production of
278koz in 2020 (2019: 259koz), representing over a quarter of
Nordgold's gold production (2020: 1,046koz). This was mainly due to
an increase in its ore processing capacity to 16 million tonnes
(2019: 14.5 million tonnes) as well as higher recoveries. The
company expects a further increase of processing capacity to 18
million tonnes in 3Q21 and is investigating expansion to 26 million
tonnes per year from 2023.

Montagne d'Or Uncertain: The Montagne d'Or joint-venture (Nordgold
55.01% and Columbus 44.99%) submitted a mine permit application in
2Q20 but the outcome is uncertain. Fitch’s rating case excludes
Montagne d'Or, as visibility remains low.

Potential IPO in 2021: The potential IPO casts some uncertainty on
financial policies, which could become more shareholder-friendly.
On 5 January, Nordgold announced it is evaluating various strategic
options, including a listing on the Premium Segment of the London
Stock Exchange. Fitch views this scenario as feasible as Nordgold
announced its intention to re-IPO when it delisted in 2017.

Capex Normalising Below 2018 Peak: Nordgold's capital intensity
(capex-to-revenue) peaked in 2018 at almost 44% with total capex of
around USD500 million. Fitch expects it to average around 30% over
2021-2024 after hitting an expected 20% in 2020. This is due to
maintenance capex of USD200 million-USD250 million as well as
USD100 million-USD200 million annual investments in growth
projects. These include the Tokko project in Russia, which accounts
for the largest share of expansionary capex, as well as a number of
smaller development projects at existing mines.

Dividend Policy Underpins Moderately Negative FCF: Nordgold has a
track record of conservative dividend policies which stipulates up
to 30% normalised net income paid as dividends on a quarterly
basis. As Fitch conservatively assumes gold prices at USD1,400/oz
in 2021 and USD1,200/oz thereafter, EBITDA would moderate towards
USD350 million-USD400 million from 2022. With capex averaging
USD400 million in 2021-2024 and modest post-2021 dividends, Fitch
expects FCF to turn moderately negative, at low single digit
levels.

Debt Prepayment May Rebase Leverage: Fitch expects Nordgold to
generate USD1 billion in EBITDA and strong FCF in 2020, and assume
it will prepay some of its outstanding bank loans in 2021. Fitch
expects FFO gross leverage to rebase at 1.3x-1.4x in 2022-2023, up
from below 1.0x in 2021. If Nordgold utilises the cash on hand for
dividends instead of bank debt repayment, Fitch would reassess its
leverage profile and could revise the Outlook to Stable.

Cash Costs Stabilise: Fitch estimates Nordgold's cost position to
be in the third quartile of the global cash cost curve through the
cycle, based on CRU data. All-in sustaining costs (AISC) were
USD998/oz for 9M20, in line with peers. Fitch expects AISC to
average around USD1,000/oz in 2021-2024 and average total cash
costs of around USD800/oz.

Country Risk Exposure: Nordgold has operations in Burkina Faso (31%
of total output in 2020), Russia (BBB/Stable, 45%), Guinea (17%)
and Kazakhstan (BBB/Stable, 7%). The share of Russian operations
would increase to 56% by 2024 if Tokko and Gross expand as planned.
The improvement in the country mix and decreased share of Burkina
Faso would be credit positive.

Western Sahel Exposure Reducing: Risks of operating in Burkina Faso
and the Western Sahel region remain. Attacks from Islamist rebel
groups targeting gold mines and their workers have intensified as
the security situation in the region, and Burkina Faso in
particular, has deteriorated. Due to the presence of peacekeeping
forces in the region, geographical diversification and location of
the Nordgold mines Fitch does not expect material or prolonged
production disruptions.

Adequate Reserve Life: Nordgold had large JORC reserves of 15.1
million oz in 2018, and Fitch expects a mine life of around 15
years based on the forecast output levels. This is higher than most
of its peers, except for PJSC Polyus (BB/Positive).

DERIVATION SUMMARY

Nordgold is a mid-scale (top-20) gold player globally, with scale
comparable with Yamana Gold Inc. (BBB-/Stable) but smaller than
Kinross Gold Corporation (Kinross, BBB-/Positive), AngloGold
Ashanti Limited (BBB-/Stable) and PJSC Polyus (BB/Positive). Fitch
views Nordgold as a third quartile producer (9M20 AISC of
USD998/oz) with its AISC marginally above that of Kinross,
AngloGold and Yamana, and well above the first quartile player
Polyus Gold. Roughly half of Nordgold's output comes from countries
with relatively weak operating environments and higher-than-average
country risks compared to its peers but Fitch expects this share to
gradually reduce.

Nordgold's early debt repayments and public financial target of
1.5x net debt/EBITDA puts its 2021-2024 leverage profile in line
with financially conservative Kinross and AngloGold, but well below
that of Yamana and Polyus.

KEY ASSUMPTIONS

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

-- Gold price in line with Fitch's price deck at USD1,400/oz in
    2021 and USD1,200/oz in 2022-2024

-- Total refined gold production slightly above 1 million oz on
    average in 2021-2024

-- Capex-to-sales averaging at 30% in 2021-2024

-- Dividend of USD100 million in 2021 and at 30% of net income in
    2022-2024

RATING SENSITIVITIES

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

-- Diversification to countries with stronger operating
    environments

-- Conservative financial profile underpinning FFO gross leverage
    sustained below 1.5x (2019: 1.5x)

-- EBITDA margin above 40% (2019: 54%) and neutral-to-positive
    FCF on a sustained basis

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

-- EBITDA margin below 30% on a sustained basis

-- FFO gross leverage above 2.5x on a sustained basis

-- Deterioration of the security situation in Burkina Faso
    impacting operations

-- One-year liquidity ratio below 1.25x

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: As at 30 June 2020, Nordgold reported USD76
million of short-term maturities (excluding leases and accrued
interest) against the USD332 million reported cash in hand and
USD125 million committed undrawn credit facility from a major
international bank due in April 2021. Fitch expects liquidity to
have increased to USD720 million at end-December 2020 due to strong
cash flow generation and the sale of the stake in Cardinal
Resources to Shandong.

Nordgold will repay its USD200 million syndicated loan which was
scheduled to amortise from 2021- April 2023 out of cash. Nordgold
may decrease its debt further with its excess cash. It has a USD325
million loan with Sberbank amortising from 2022 and maturing in
March 2024. It also has USD400 million Eurobonds maturing in 2024.
Fitch expects Nordgold to continue to make use of its reverse
factoring arrangements at its operations in Burkina Faso, for which
USD45 million was outstanding at end-December 2020.

ESG CONSIDERATIONS

Nordgold has an ESG Relevance Score for 'Exposure to Social
Impacts' of 4, due to the location of some of its mines in areas
with growing violence from Islamist rebel groups, which may
intensify and could have a negative impact on the credit profile,
and is relevant to the rating in conjunction with other factors.

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


SEADRILL LTD: Forbearance Agreements Expired on Jan. 29
-------------------------------------------------------
Seadrill Limited announced on December 30, 2020, that it has
entered into a forbearance agreement with certain creditors in
respect of nine out of the group's twelve senior secured credit
facility agreements.  The purpose of the forbearance agreement was
to allow the Company and its stakeholders more time to finalise
negotiations on the head terms of a comprehensive restructuring of
its balance sheet.  Such a restructuring may involve the use of a
court-supervised process.  The Company continued to evaluate
capital structure proposals from its financial stakeholders.

Forbearance has not yet been agreed with respect to certain events
of default or termination events that may arise under the three
remaining senior secured credit agreements, the Company's New
Secured Notes, leasing arrangements for the West Hercules, West
Linus and West Taurus and a bilateral guarantee facility with
Danske Bank. Without a forbearance in respect of these
arrangements, a non-payment of interest or other amounts due under
the senior secured credit agreements, the Company's New Secured
Notes and/or the leasing arrangements could result in the creditors
under these arrangements having the right to accelerate or
otherwise enforce their rights under them.

               Expiry of Forbearance Agreements

However, in a recent press release, Seadrill reated that the term
of the forbearance agreements expired on January 29, 2021, and,
accordingly, the creditors with whom forbearance agreements were
entered into are no longer prevented from taking actions in respect
of events of default that may arise under the senior secured credit
facility agreements as a result of the group not making interest
payments under the group's senior secured credit agreements.

The Company continues to maintain its readiness to carry out a
comprehensive restructuring of its balance sheet.  Such a
restructuring may involve the use of a court-supervised process.
The Company continues to engage in constructive discussions in
relation to potential further forbearances and to finalise the
heads of terms of a comprehensive restructuring of its balance
sheet; whilst no agreement has been reached at this point it is
expected that potential solutions will lead to significant
equitization of debt which is likely to result in minimal or no
recovery for current shareholders.

                      About Seadrill Ltd.

Seadrill Limited (OSE:SDRL, OTCQX:SDRLF) --
http://www.seapdrill.com/-- is a deepwater drilling contractor  
providing drilling services to the oil and gas industry. As of
March 31, 2018, it had a fleet of over 35 offshore drilling units
that include 12 semi-submersible rigs, 7 drillships, and 16 jack-up
rigs.

On Sept. 12, 2017, Seadrill Limited sought Chapter 11 protection
after reaching terms of a reorganization plan that would
restructure $8 billion of funded debt. It emerged from bankruptcy
in July 2018.

Demand for exploration and drilling has fallen further during the
COVID-19 pandemic as oil firms seek to preserve cash, idling more
rigs and leading to additional overcapacity among companies serving
the industry.

In June 2020, Seadrill wrote down the value of its rigs by $1.2
billion and said it planned to scrap 10 rigs.

Seadrill is presently in talks with lenders on a restructuring of
its $5.7 billion bank debt.


ST PAUL CLO II: Fitch Alters Outlook on F-RRR Debt Rating to Stable
-------------------------------------------------------------------
Fitch Ratings has affirmed St. Paul's CLO II DAC. and revised the
Outlooks on the class C-RRR E-RRR and F-RRR notes to Stable from
Negative. Fitch has also removed the class D-RRR notes from Rating
Watch Negative (RWN and assigned a Negative Outlook.

        DEBT                  RATING           PRIOR
        ----                  ------           -----
St. Paul's CLO II DAC

A-RRR XS2052176224      LT  AAAsf  Affirmed    AAAsf
B-RRR XS2052176901      LT  AAsf   Affirmed    AAsf
C-RRR XS2052177461      LT  Asf    Affirmed    Asf
D-RRR XS2052178352      LT  BBBsf  Affirmed    BBBsf
E-RRR XS2052179087      LT  BB-sf  Affirmed    BB-sf
F-RRR XS2052179756      LT  B-sf   Affirmed    B-sf
X XS2052179830          LT  AAAsf  Affirmed    AAAsf

TRANSACTION SUMMARY

St. Paul's CLO II DAC.is a securitisation of mainly senior secured
loans (at least 90%) with a component of senior unsecured,
mezzanine and second-lien loans. The portfolio is managed by
Intermediate Capital Managers Limited. The reinvestment period ends
in October 2021.

KEY RATING DRIVERS

Resilient to Coronavirus Stress

The affirmation reflects the broadly stable portfolio credit
quality since July 2020. The Stable Outlook on all investment grade
notes, except for the class D-RRR notes and the revision of the on
the sub-investment grade notes to Stable from Negative reflect the
default rate cushion in the sensitivity analysis ran in light of
the coronavirus pandemic. The class D notes still exhibit some
shortfalls under this scenario. Given the small magnitude of the
shortfall, Fitch has removed the notes from RWN and assigned a
Negative Outlook.

Fitch has recently updated its CLO coronavirus stress scenario to
assume half of the corporate exposure on Negative Outlook is
downgraded by one notch instead of 100%. For more details on
Fitch’s pandemic -related stresses see "Fitch Ratings Expects to
Revise Significant Share of CLO Outlooks to Stable."

Portfolio Performance Stabilises

As of the latest investor report dated 5 January 2021, the
transaction was 0.32% above par and all portfolio profile tests,
coverage tests and Fitch collateral quality tests were passing
except for the Fitch weighted average rating factor (WARF),
weighted average recovery rate (WARR) and 'CCC' portfolio profile
test. As of the same report, the transaction had one defaulted
asset. Exposure to assets with a Fitch-derived rating (FDR) of
'CCC+' and below was 12.5 % (excluding unrated assets). Assets with
an FDR on Negative Outlook made up 11.81% of the portfolio
balance.

'B'/'B-' Portfolio Credit Quality

Fitch assesses the average credit quality of the obligors in the
'B'/'B-' category. The Fitch WARF of the current portfolio is 36.47
(assuming unrated assets are 'CCC') - above the maximum covenant of
35, while the trustee-reported Fitch WARF was 36.2.

High Recovery Expectations

Senior secured obligations are 98.2% of the portfolio. Fitch views
the recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets.

Diversified Portfolio

The portfolio is well-diversified across obligors, countries and
industries. The top 10 obligors represent 15.2% of the portfolio
balance with no obligor accounting for more than 2%. Around 33.4%
of the portfolio consists of semi-annual obligations but a
frequency switch has not occurred due to the transaction's high
interest coverage ratios.

Cash Flow Analysis

Fitch used a customised proprietary cash flow model to replicate
the principal and interest waterfalls and the various structural
features of the transaction, as well as to assess their
effectiveness, including the structural protection provided by
excess spread diverted through the par value and interest coverage
tests. The transaction was modelled using the current portfolio
based on both the stable and rising interest-rate scenarios and the
front-, mid- and back-loaded default timing scenarios as outlined
in Fitch's criteria. In addition, Fitch tested the current
portfolio with a coronavirus sensitivity analysis to estimate the
resilience of the notes' ratings. The coronavirus sensitivity
analysis was only based on the stable interest-rate scenario but
included all default timing scenarios.

RATING SENSITIVITIES

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

-- The transaction features a reinvestment period and the
    portfolio is actively managed. 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's credit quality may still deteriorate, not only
    through natural credit migration, but also through
    reinvestments.

-- After the end of the reinvestment period, upgrades may occur
    in case of better-than-initially expected portfolio credit
    quality and deal performance, leading to higher credit
    enhancement for the notes 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
    than initially assumed due to unexpectedly high levels of
    defaults and portfolio deterioration. As disruptions to supply
    and demand due to the pandemic become apparent, loan ratings
    in those vulnerable 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 a single-notch downgrade to all FDRs for assets that
are on Negative Outlook. In this case the model-implied rating for
the class D-RRR to F-RRR notes would be one notch below their
current rating.

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

St. Paul's CLO II DAC

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. 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.


ST PAUL CLO III-R: Fitch Affirms B- on F-R Notes, Off Watch Neg.
----------------------------------------------------------------
Fitch Ratings has affirmed St. Paul's CLO III-R DAC and removed the
class E-R notes from Rating Watch Negative (RWN) and assigned them
a Negative Outlook.

      DEBT                  RATING             PRIOR
      ----                  ------             -----
St. Paul's CLO III-R DAC

A-R XS1758464090      LT  AAAsf  Affirmed      AAAsf
B-1-R XS1758464330    LT  AAsf   Affirmed      AAsf
B-2-R XS1758464686    LT  AAsf   Affirmed      AAsf
C-R XS1758464926      LT  Asf    Affirmed      Asf
D-R XS1758465220      LT  BBBsf  Affirmed      BBBsf
E-R XS1758465659      LT  BBsf   Affirmed      BBsf
F-R XS1758465816      LT  B-sf   Affirmed      B-sf

TRANSACTION SUMMARY

St. Paul's CLO III-R DAC is a securitisation of mainly senior
secured loans (at least 96%) with a component of senior unsecured,
mezzanine and second-lien loans. The portfolio is managed by
Intermediate Capital Managers Limited. The reinvestment period ends
in January 2022.

KEY RATING DRIVERS

Resilient to Coronavirus Stress

The affirmation reflects a broadly stable portfolio credit quality
since July 2020. The Stable Outlooks on all investment-grade notes
reflect the default rate cushion in the sensitivity analysis ran in
light of the coronavirus pandemic. The class E-R and F-R notes
still exhibit some shortfalls under this scenario and have Negative
Outlooks. The Class E-R has been removed from RWN due to the small
magnitude of the shortfall.

Fitch has recently updated its CLO coronavirus stress scenario to
assume half of the corporate exposure on Negative Outlook is
downgraded by one notch instead of 100%. For more details on
Fitch’s pandemic -related stresses see "Fitch Ratings Expects to
Revise Significant Share of CLO Outlooks to Stable."

Deviation from Model-Implied Ratings

Fitch used a customised proprietary cash flow model to replicate
the principal and interest waterfalls and the various structural
features of the transaction, and to assess their effectiveness,
including the structural protection provided by excess spread
diverted through the par value and interest coverage tests. The
transaction was modelled using both the current portfolio and the
current portfolio with a coronavirus sensitivity analysis.

Fitch's coronavirus sensitivity analysis was based on a stable
interest-rate scenario only but included the front-, mid- and
back-loaded default timing scenarios as outlined in Fitch's
criteria.

The model-implied rating for the class F-R notes is one notch below
the current rating. However, Fitch has deviated from the
model-implied rating as the modelling was driven only by the
back-loaded default timing scenario. Moreover, the class F-R notes
still show a limited margin of safety in the form of credit
enhancement. Therefore the current rating is deemed more
appropriate and in line with the majority of Fitch-rated EMEA
CLOs.

Portfolio Performance

As of the latest investor report dated 5 January 2021, the
transaction was 2.42% below par and all portfolio profile tests,
coverage tests and collateral quality tests were passing, except
for the 'CCC' portfolio profile test. As of the same report, the
transaction had three defaulted assets. Exposure to assets with a
Fitch-derived rating (FDR) of 'CCC+' and below was 9.6 % (excluding
unrated assets). Assets with an FDR on Negative Outlook made up
14.75% of the portfolio balance.

'B'/'B-' Portfolio Credit Quality

Fitch assesses the average credit quality of the obligors in the
'B'/'B-' category. The Fitch weighted average rating factor (WARF)
of the current portfolio is 35.91 (assuming unrated assets are
'CCC') - below the maximum covenant of 36.5, while the
trustee-reported Fitch WARF was 35.48. After applying the
coronavirus stress, the Fitch WARF would increase by 2.66.

High Recovery Expectations

Senior secured obligations are 97.2% of the portfolio. Fitch views
the recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets.

Diversified Portfolio

The portfolio is well-diversified across obligors, countries and
industries. The top 10 obligors represent 14.3% of the portfolio
balance with no obligor accounting for more than 1.6%. Around 38.7%
of the portfolio consists of semi-annual obligations but a
frequency switch has not occurred due to the transaction's high
interest coverage ratios.

RATING SENSITIVITIES

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

-- The transaction features a reinvestment period and the
    portfolio is actively managed. 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's credit quality may still deteriorate, not only
    through natural credit migration, but also through
    reinvestments.

-- After the end of the reinvestment period, upgrades may occur
    in case of better-than-initially expected portfolio credit
    quality and deal performance, leading to higher credit
    enhancement for the notes 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
    than initially assumed due to unexpectedly high levels of
    defaults and portfolio deterioration. As disruptions to supply
    and demand due to the pandemic become apparent, loan ratings
    in those vulnerable 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 a single-notch downgrade to all FDRs for assets that
are on Negative Outlook. In this case the model implied rating for
the class E-R and F-R notes would be one notch below their current
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

St. Paul's CLO III-R DAC

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. 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.


VIRGIN ACTIVE: Lenders Prepare Fight Over Future of Business
------------------------------------------------------------
Mark Kleinman at Sky News reports that lenders to Virgin Active are
preparing for a fight over the future of one of Britain's biggest
gym chains as its owners draw up a radical blueprint to help it
survive the pandemic.

Sky News has learnt that a syndicate of roughly half a dozen banks
held a beauty parade of financial advisers last week to negotiate a
restructuring of the company, in which Sir Richard Branson's Virgin
Group is a minority shareholder.

According to Sky News, City sources said that Brait, the company
set up by one of South Africa's most prominent businessmen, was
expected to present a formal restructuring plan to Virgin Active's
lenders in the coming weeks.

Brait owns just under 80% of the gyms operator, with Virgin
Active's management team holding the remaining shares, Sky News
notes.

Details of Brait's imminent proposal were unclear this weekend, as
was the possibility of an insolvency process called a company
voluntary arrangement, Sky News relays.

According to Sky News, one insider suggested that the lending
syndicate was "braced for a messy process".

They added that it was far from inconceivable that the banks which
have lent GBP210 million to Virgin Active's Europe and Asia-Pacific
operations could ultimately control the business, Sky News notes.

Its African operations have a separate financing structure, Sky
News states.

Virgin Active's landlords will also be involved in the
restructuring talks amid expectations that they are likely to be
asked for steep reductions on future rent payments, Sky News
discloses.

The company has been wrestling with the impact of the COVID-19
pandemic on its business, which trades from 240 sites in the UK,
Europe, Asia, South Africa and other African countries, according
to Sky News.

In Britain, it employs about 2,400 people, and operates more than
40 sites which have spent most of the last year shut, Sky News
discloses.

Virgin Active has frozen membership fees during the enforced
closures, further squeezing cashflow, Sky News recounts.

Last year, shareholders including Virgin Group injected about GBP20
million into the business during the first nationwide lockdown, Sky
News states.

Virgin Enterprises Limited, the UK-based entity which manages
Virgin's brand licensing activities, also deferred royalty fees
owed by the fitness chain understood to be valued at more than
GBP10 million annually.

It is now seeking tens of millions of pounds of additional funding
to enable it to reopen once restrictions ease, although there is no
visibility yet about when that might apply to the health and
fitness industry, Sky News says.

According to Sky News, in a statement this weekend, Virgin Active
said it had had a strong balance sheet before the crisis, and that
a refinancing soon after the pandemic hit had put it on "a sound
footing".

"We are now managing the further impact from this evolving
situation around the world, including second lockdowns in the UK
and Italy.

"We are in discussions with all our stakeholders, and with their
support we look forward to getting back to business as usual across
all our territories, enabling the business to benefit from global
trends towards health and wellness which are accelerating as a
result of the pandemic."

The lenders' move to appoint advisers comes days after Britain's
biggest high street lender, Lloyds Banking Group, began moves to
offload its debt position in Virgin Active, Sky News relays.

A sale is not thought to have been agreed yet, Sky News notes.

Virgin Active's 2019 accounts, filed this month, included a warning
from KPMG, the company's auditor, about its ability to continue as
a going concern, Sky News discloses.

Deloitte, the accountancy firm, has been advising Virgin Active on
talks with landlords since last year and has had its remit extended
to encompass the looming restructuring talks, according to a source
close to the gyms operator, Sky News recounts.

It is the latest in a string of Virgin Group companies which have
been forced to take drastic steps to secure its future, Sky News
notes.




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

[*] UK: Number of Companies at Risk of Insolvency Doubles
---------------------------------------------------------
The Business Times reports that the number of UK-listed companies
at risk of insolvency has doubled as restrictions aimed at curbing
the spread of the coronavirus continue to ravage the economy.

A record 35% of UK companies issued profit warnings last year, said
a report by the consulting firm EY, The Business Times relates.
There was also a surge in the number of companies issuing three or
more profit warnings in a 12-month period -- a warning sign for
insolvency, The Business Times discloses.

"Many UK businesses have been treading on thin ice for months, with
government support propping them up," The Business Times quotes
Alan Hudson, restructuring leader for UK & Ireland at EY, as
saying.

"While there is speculation these measures could be extended until
the summer, the countdown has started, and in weeks or months we'll
find out how many companies can keep their head above water," he
said.

The UK is back under severe lockdown restrictions following a spike
in coronavirus cases in December, The Business Times recounts.  The
government has so far committed almost GBP300 billion (S$546
billion) in emergency support for the economy, but now faces
pressure to extend the furlough scheme after figures show
unemployment rising to the highest level since 2016, The Business
Times relays.

The report said sixty-two UK companies issued at least their third
profit warning, double the total in 2019, The Business Times
notes.

A total of 583 profit warnings were announced by UK-listed
companies in 2020 -- the highest number in 21 years of EY research
and 15% higher than the previous record set in 2001, according to
The Business Times.

Retail has been one of the hardest-hit sectors, as visits to shops
plunge with office workers staying home and the government advising
consumers to avoid non-essential trips, The Business Times states.



                           *********


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

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

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

This material is copyrighted and any commercial use, resale or
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written permission of the publishers.

Information contained herein is obtained from sources believed to
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delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
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