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

                          E U R O P E

          Tuesday, April 27, 2021, Vol. 22, No. 78

                           Headlines



B E L A R U S

BELARUSIAN NATIONAL: Fitch Affirms 'B' IFS Rating, Outlook Negative


F R A N C E

GIRONDINS BORDEAUX: In Administration After Owners Withdraw Support


I R E L A N D

HARVEST CLO XXI: Fitch Affirms Final B- Rating on Class F Notes


I T A L Y

BFF BANK: Moody's Cuts Sr. Unsec Debt Rating to Ba2, Outlook Stable
INTERNATIONAL DESIGN: Fitch Alters Outlook on 'B' LT IDR to Stable


R U S S I A

AK BARS: Moody's Alters Outlook on B1 Bank Deposit Ratings to Pos.
INTERPROMBANK JSCB: Moody's Downgrades Bank Deposit Ratings to Ca
POLYUS FINANCE: Moody's Hikes Backed Sr. Unsecured Debts From Ba1


U N I T E D   K I N G D O M

ATRIUM EUROPEAN: Fitch Rates Proposed EUR300MM Bond 'BB+(EXP)'
AZURE FINANCE 1: Moody's Affirms B1 Rating on GBP18.3M Cl. E Notes
CARLAUREN GROUP: South West Hotels Sold Off Following Collapse
CIDRON AIDA: Fitch Assigns 'B' LT IDR, Outlook Stable
GREENSILL CAPITAL: Lex Greensill No Contract to Work for Gov't.

HIKMA PHARMACEUTICALS: Moody's Withdraws Ba1 Corp Family Rating
IMPERIAL HOTEL: Set to Re-open a Year After Administration
LABOUR PARTY: Goes Into Administration, Seeks Buyers for Business
MULHOLLAND COMPOSITES: Enters Administration, 45 Jobs Affected
NMC HEALTH: ADCB's 1Q Profits Up 400% Despite Big Impairments

SYNLAB BONDCO: Fitch Places 'B+' LT IDR on Watch Positive

                           - - - - -


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B E L A R U S
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BELARUSIAN NATIONAL: Fitch Affirms 'B' IFS Rating, Outlook Negative
-------------------------------------------------------------------
Fitch Ratings has affirmed Belarusian National Reinsurance
Organisation's (Belarus Re) Insurer Financial Strength (IFS) Rating
at 'B'. The Outlook is Negative.

KEY RATING DRIVERS

The rating and Outlook continue to reflect Belarus Re's 100% state
ownership (Belarus; Local-Currency Long-Term Issuer Default Rating
(IDR): B/Negative). In addition, the rating reflects Belarus Re's
exclusive position in the local reinsurance sector, underpinned by
legislation; adequate capitalisation and financial performance; and
the weak quality of the reinsurer's investment portfolio.

The Belarusian state has established strong support for Belarus Re
in its legal framework, in its aim to develop a well-functioning
reinsurance system. Fitch believes that the government would
support Belarus Re over other state-owned companies, because of its
small size and systemic importance to the financial sector.

The pandemic has had limited impact on Belarus Re's premium
volumes, as Belarus has not implemented rigid lockdowns like most
other countries. The Belarusian non-life sector's premium written
grew 6% in 2020. Belarus Re recorded a 21% growth in business
volumes in 2020, as a 2% decline in local premium volume was offset
by a 114% growth in its broker-led foreign-property business.

Belarus Re downsized its local portfolio following a review of its
underwriting appetite to financial risks, including both domestic
and export insurance. The reduction was due to the poor
underwriting result of the financial risk insurance in 2020 and a
more cautious approach to the issuance of new bankruptcy coverage
policies amid the economic recession. The reinsurer cut the line's
weight to 8% of total premiums written in 2020, from an average of
30% in 2015-2019. Belarus Re had only few paid and reserved claims,
but their impact on its underwriting result was rather pronounced
due to the high levels of net retention traditionally applied for
domestic financial risks by Belarusian (re)insurers and a
geographical concentration in export insurance.

In 2020 Belarus Re reported a net profit to BYR10 million, down
from BYR20 million in 2019, mainly due to the negative underwriting
result with the combined ratio deteriorating to 126% in 2020, after
an average at 72% in 2015-2019. This deterioration was largely due
to a few significant claims in the financial risks segment.
Foreign-exchange (FX) gains of BYN23 million earned on US-dollar
denominated investments helped offset the underwriting negative
result. This means net profit in 2020 was mainly driven by
investment income.

In 2Q20 the government demonstrated its commitment to support
Belarus Re by providing BYN65 million of fresh capital to the
reinsurer. Despite this increase, Belarus Re's Prism Factor-Based
Capital Model (Prism FBM) score weakened to 'Adequate' in 2020 from
'Strong' in 2019. The increase in available capital was offset by a
36% growth in net premiums written in 2020 and investing the new
capital in local assets of weak quality. Fitch believes that the
significant FX-mismatch on its balance sheet exposes its equity to
fluctuations of the national currency in relation to the US dollar
and the euro. Belarus Re's solvency margin coverage, calculated on
a Solvency I-like formula, was very strong at 12x at end-2020.

Fitch views Belarus Re's investment portfolio as weak. The new
capital obtained in 2020 was invested in an equity instrument,
which has further weakened the diversification of the reinsurer's
investment portfolio. Under domestic prudential regulations,
Belarus Re may only invest in instruments issued by the Belarusian
government or government-owned entities. Fitch views its liquidity
profile as healthy, reflected in liquid assets-to-net loss reserves
of 134% at end-2020.

RATING SENSITIVITIES

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

-- A downgrade of Belarus's Local-Currency Long-Term IDR would
    lead to an equivalent change in the reinsurer's IFS Rating.

-- A significant adverse change in the reinsurer's relationship
    with the government would also likely have a direct impact on
    Belarus Re's ratings.

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

-- A revision of the Outlook on Belarus's Local-Currency Long
    Term IDR to Stable would lead to an equivalent change in the
    Outlook on the reinsurer's IFS Rating.

BEST/WORST CASE RATING SCENARIO

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

ESG CONSIDERATIONS

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



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F R A N C E
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GIRONDINS BORDEAUX: In Administration After Owners Withdraw Support
-------------------------------------------------------------------
SportsPro reports that top-flight French soccer side Girondins
Bordeaux have placed themselves under the protection of the city's
commercial court after King Street, the team's American owners,
withdrew its financial support for the club.

Mr. Bordeaux, who sit 16th in Ligue 1, said in a statement that New
York-based King Street "no longer wishes to support the club and
finance its current and future needs", which prompted president
Frederic Longuepee to seek commercial protection until a "lasting
solution" is found, SportsPro relates.

King Street purchased Bordeaux in 2019 from GACP Sports, a division
of General American Capital Partners (GACP) headed up by Joseph
DaGrosa, but it was reported in March that the private equity firm
was looking to sell, SportsPro recounts.

According to SportsPro, the finances of French soccer clubs have
been immensely strained over the past 12 months by the impact of
the coronavirus pandemic and the premature end of the Ligue de
Football Professionnel's (LFP) domestic broadcast deal with
Mediapro.

The Spanish agency was due to pay the organizing body of French
soccer's top two tiers EUR814 million (US981 million) a year until
the end of the 2023/24 campaign, but the deal was terminated in
December, barely four months into its first season, after the
company failed to meet payment deadlines, SportsPro notes.




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I R E L A N D
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HARVEST CLO XXI: Fitch Affirms Final B- Rating on Class F Notes
---------------------------------------------------------------
Fitch Ratings has assigned Harvest CLO XXI DAC's refinancing notes
final ratings and revised the Outlook on the existing class E and F
notes to Stable from Negative.

Harvest CLO XXI DAC

      DEBT                   RATING             PRIOR
      ----                   ------             -----
A-1 XS1951928552     LT  PIFsf   Paid In Full    AAAsf
A-1-R XS2326512378   LT  AAAsf   New Rating      AAA(EXP)sf
A-2 XS1951928800     LT  PIFsf   Paid In Full    AAAsf
A-2-R XS2326512964   LT  AAAsf   New Rating      AAA(EXP)sf
B XS1951929105       LT  PIFsf   Paid In Full    AAsf
B-1-R XS2326513772   LT  AAsf    New Rating      AA(EXP)sf
B-2-R XS2326514317   LT  AAsf    New Rating      AA(EXP)sf
B2 XS1951929444      LT  PIFsf   Paid In Full    AAsf
C XS1951929873       LT  PIFsf   Paid In Full    Asf
C-R XS2326515041     LT  Asf     New Rating      A(EXP)sf
D XS1951930293       LT  PIFsf   Paid In Full    BBB-sf
D-R XS2326519035     LT  BBB-sf  New Rating      BBB-(EXP)sf
E XS1951930533       LT  BB-sf   Affirmed        BB-sf
F XS1951930616       LT  B-sf    Affirmed        B-sf

TRANSACTION SUMMARY

Harvest CLO XXI DAC is a cash flow collateralised loan obligation
(CLO). On the refinance closing date, the proceeds of the issuance
have been used to redeem the class A-1 to D notes and reissued at
lower spreads. The portfolio is managed by Investcorp Credit
Management EU Limited. The refinanced CLO envisages a further
2.5-year reinvestment period and a 7.2-year weighted average life
(WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality (Neutral): Fitch places the average
credit quality of obligors in the 'B' range. The Fitch weighted
average rating factor of the current portfolio is 32.8.

High Recovery Expectations (Positive): 98.4% 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. The Fitch weighted average recovery
rate (WARR) of the current portfolio is 63.8% calculated by Fitch
based on the latest criteria, and 66% calculated by the collateral
administrator and based on the documented older criteria.

The recovery rate provision in the transaction documents does not
reflect Fitch's latest rating criteria so that assets without a
recovery estimate or recovery rate by Fitch can map to a higher
recovery rate than the criteria. For this, Fitch has applied a
haircut of 1.5% to the WARR, which is in line with the average
impact on the WARR of EMEA CLOs following the criteria update.

Diversified Asset Portfolio (Positive): The transaction has two
Fitch test matrices corresponding to maximum exposure to the top 10
obligors at 15% and 20% and maximum fixed assets limited at 10% of
the portfolio. The transaction also includes limits on the
Fitch-defined largest industry at a covenanted maximum 17.5% and
the three largest industries at 40%. These covenants ensure that
the asset portfolio will not be exposed to excessive
concentration.

WAL Extended to 7.2 years (Neutral): On the refinancing date, the
issuer extended the WAL covenant by nine months to 7.25 years and
the Fitch matrices have been updated. The transaction features a
2.5-year reinvestment period. The reinvestment criterion is similar
to 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.

Model-implied Ratings Deviation (Negative): The ratings of the
class E and F notes are one notch higher than the model-implied
ratings (MIR) derived under the stressed portfolio analysis. These
notes show a maximum shortfall of 2.45% and 2.75%. These shortfalls
are the maximum observed where a note drives a specific matrix
point. The current ratings are supported by their credit
enhancement, as well as the default cushion on the current
portfolio due to the notable cushion between the covenants of the
transaction and the portfolio's parameters. The notes pass the
current ratings with a cushion based on the current portfolio and
the coronavirus sensitivity analysis that is used for
surveillance.

The affirmation of the junior notes with Stable Outlook reflects
the stable performance and resilience to the coronavirus baseline
scenario. The transaction was below par by 1.5% as of the investor
report on 26 February 2021. The transaction passed all portfolio
profile tests, Fitch collateral quality tests and coverage tests.

RATING SENSITIVITIES

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

-- A 25% decrease in the portfolio's mean default rate and a 25%
    increase in the recovery rate at all rating levels, would lead
    to an upgrade of up to five notches for the rated notes,
    except the class A-1-R and A-2-R notes, which are already at
    the highest rating on Fitch's scale and cannot be upgraded.

-- The transaction has a reinvestment period and the portfolio
    will be actively managed. At closing, Fitch uses a
    standardised stress portfolio (Fitch's Stress Portfolio) that
    is customised to the specific portfolio limits for the
    transaction as specified in the transaction documents. Even if
    the actual portfolio shows lower defaults and losses at all
    rating levels than Fitch's Stress 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
    if there is better-than-expected portfolio credit quality and
    deal performance, leading to higher note credit enhancement
    and excess spread available to cover for losses on the
    remaining portfolio.

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

-- A 25% increase in the portfolio's mean default rate and a 25%
    decrease in the recovery rate at all rating levels, would lead
    to a downgrade of up to six notches for the rated notes.

-- Downgrades may occur if the build-up of the notes' credit
    enhancement following amortisation does not compensate for a
    higher loss expectation than initially assumed due to
    unexpected high levels of default and portfolio deterioration.

Coronavirus Baseline Scenario: Fitch recently updated its CLO
coronavirus baseline scenario to assume that half of the corporate
exposure on Negative Outlook will be downgraded by one notch
instead of all of them. In this scenario, none of the notes are
affected.

Coronavirus Downside Scenario: 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 corporate issuers on Negative Outlook regardless
of sector. This scenario shows resilience at the ratings for all
notes except the class E and F notes, which show a small
shortfall.

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

Harvest CLO XXI 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.



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I T A L Y
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BFF BANK: Moody's Cuts Sr. Unsec Debt Rating to Ba2, Outlook Stable
-------------------------------------------------------------------
Moody's Investors Service upgraded the long-term deposit ratings of
BFF Bank S.p.A. to Baa2 from Baa3 and downgraded the senior
unsecured debt and issuer ratings to Ba2 from Ba1. Moody's also
upgraded the bank's Baseline Credit Assessment to ba2 from ba3. The
outlook on BFF's long-term ratings was changed to stable from
positive, for deposit ratings, and from developing, for senior
unsecured debt and issuer rating.

The rating actions follow BFF's acquisition and subsequent merger
of Italian depositary bank DEPObank S.p.A. (DEPObank), which was
finalised in March 2021.

RATINGS RATIONALE

The upgrade BFF's BCA and Adjusted BCA to ba2 from ba3 reflects
Moody's view that following the acquisition of DEPObank, BFF will
continue to generate solid returns while maintaining low asset risk
despite higher sensitivity to market risk given the importance of
its investment portfolio. Moody's sees some benefits to BFF's
funding and liquidity profile with the acquisition of DEPObank, as
the bank has gained access to an ample deposit base and a large
stock of liquid assets, even though the deposits are essentially
wholesale in nature and hence likely to be more
confidence-sensitive and of lower quality than retail deposits.

BFF disclosed a pro-forma Common Equity Tier 1 (CET1) ratio of
above 16% post-merger for the combined entities. However,
Moody's-calculated Tangible Common Equity (TCE)/
Risk-Weighted-Assets (RWA) ratio will decline markedly to below 9%
because the large amount of Italian government bonds held by
DEPObank, are risk- weighted at 50% under the rating agency's
methodology based on the Baa3 sovereign rating.

The downgrade of BFF's senior unsecured debt rating to Ba2 from Ba1
is driven by the higher expected loss for these liabilities in a
resolution scenario, because the merger with DEPObank entails a
much lower share of consolidated senior debt relative to total
banking assets. The transaction prompts a significant expansion of
the balance sheet in the form of substantial exposures (mostly
government securities) that were almost entirely deposit funded.
Therefore, in Moody's Advanced Loss Given Failure (LGF) analysis,
BFF's senior unsecured debt rating moved to no uplift from the BCA,
from two notches of uplift previously.

The upgrade of the junior deposit ratings to Baa2 from Baa3 follows
the upgrade of the BCA, as the LGF analysis for these liabilities
still leads to three notches of uplift from the Adjusted BCA.

OUTLOOKS

The outlooks on BFF's long-term deposit, senior unsecured debt and
issuer ratings is stable, reflecting the agency's view that BFF
will maintain strong asset quality, good profit generation and
solid funding profile over the next 12-18 months. Moody's also
considers BFF to be less exposed than other commercial Italian
banks to the downside risks from the coronavirus pandemic due to
its business model, which focuses primarily on public
administration receivables, with limited exposures to corporate and
small and medium-sized enterprises (SMEs).

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

BFF's long-term deposit and senior unsecured debt ratings could be
upgraded or downgraded following an upgrade or downgrade of the
bank's BCA. The senior unsecured debt rating could also be upgraded
or downgraded following a material issuance or reduction in the
stock of bail-in-able debt, respectively. The deposit rating could
also be downgraded following a material reduction in the bank's
stock of bail-in-able debt.

BFF's BCA could be upgraded if the bank strengthened its
capitalization, while maintaining sound profit generation and low
asset risk. BFF's BCA could be downgraded if the bank reported
material capital-eroding losses, experienced a material
deterioration in asset quality, or a material outflow in deposits.

LIST OF AFFECTED RATINGS

Issuer: BFF Bank S.p.A.

Downgrades:

Long-term Issuer Rating, Downgraded to Ba2 from Ba1, Outlook
Changed To Stable From Developing

Senior Unsecured Regular Bond/Debenture, Downgraded to Ba2 from
Ba1, Outlook Changed To Stable From Developing

Upgrades:

Adjusted Baseline Credit Assessment, Upgraded to ba2 from ba3

Baseline Credit Assessment, Upgraded to ba2 from ba3

Short-term Counterparty Risk Assessment, Upgraded to P-2(cr) from
P-3(cr)

Long-term Counterparty Risk Assessment, Upgraded to Baa2(cr) from
Baa3(cr)

  Short-term Counterparty Risk Ratings, Upgraded to P-2 from P-3

Long-term Counterparty Risk Ratings, Upgraded to Baa2 from Baa3

Short-term Bank Deposit Ratings, Upgraded to P-2 from P-3

Long-term Bank Deposit Ratings, Upgraded to Baa2 from Baa3,
Outlook Changed To Stable From Positive

Outlook Action:

Outlook, Changed To Stable From Positive(m)

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
Methodology published in March 2021.

INTERNATIONAL DESIGN: Fitch Alters Outlook on 'B' LT IDR to Stable
------------------------------------------------------------------
Fitch Ratings has revised the Outlook on International Design Group
S.p.A.'s (IDG) Long-Term Issuer Default Rating to Stable from
Negative and affirmed the IDR and senior secured notes at 'B'.

The revision of the Outlook reflects a lower than expected increase
in leverage, which remained within the parameters consistent with
the 'B' rating in 2020, and Fitch's expectation that FFO gross
leverage will remain below Fitch's threshold for a downgrade
through the cycle. Limited revenue decline and overall stability in
EBITDA support this resilient performance. The company also reduced
gross debt, reimbursing its revolving credit facility (RCF)
drawdowns in 3Q20. Fitch expects some swings in IDG's leverage due
to acquisitions, including YDesign Group, LLC (YDesign), but the
group has gained further financial flexibility at its current
rating level.

IDG's rating reflects the leading role of its brands in their
product categories, its free cash flow (FCF) generation capability
and steady demand prospects in the company's key geographies.

KEY RATING DRIVERS

Limited 2020 Earnings Decline: IDG's revenue declined by around 7%
in 2020, less than the 18% Fitch forecasts in April 2020. Closures
of production sites and stores significantly affected trading in 1Q
and 2Q20. The Louis Poulsen brand's growth was unaffected,
sustained by milder restrictions in Nordic countries. Italian
brands partially recovered in 2H20, with a marked reprise of the
wholesale channel across all geographies. At year end, the Floss
brand declined by 12% and the B&B brand by 8%.

IDG's mainly variable cost base protected 2020 Fitch-calculated
EBITDA (adjusted for the application of IFRS 16), which remained in
line with 2019. Furlough schemes and savings programmes contributed
to the increase in the margin to around 25%. Fitch expects margins
to stabilise around 20% largely due to the business model mix
following the acquisition of YDesign.

Challenges in Contract Business: The performance of IDG's contract
channel was weak in 2020, declining by about 23% yoy, while its
contribution to total sales dropped to 19% from 24% in 2019. The
channel focuses on development projects for commercial and leisure
venues, and offers cross-brand propositions within the company's
portfolio. Restrictions to travel and leisure activities will
constrain the performance of this channel, which may take more than
12 months before replicating 2019 revenues. However, IDG's growth
perspectives remain sustainable, anchored around its traditional
residential customer base and wholesale distribution.

Leverage Within Sensitivities: Fitch estimates funds from
operations (FFO) gross leverage for 2020 at 6.6x, within the
parameters compatible with a 'B' rating in IDG's sector. This is a
marginal increase from 2019, but remains materially below Fitch's
previous expectations, driven by lower than expected revenue and
EBITDA loss, and early repayment of its RCF, which was drawn at the
onset of the pandemic. Fitch expects leverage will increase in
2021, largely due to the partial contribution to profits from
YDesign from 2H21, before easing back in 2022.

Acquisitions Shape Financial Policy: IDG disclosed the acquisition
of YDesign in April 2021, an on-line independent sales platform for
high-class lighting and furniture for North America. The
acquisition accelerates IDG's e-commerce expansion. The company
aims to keep YDesign as an independent merchant. However, Fitch
expects some distribution discontinuation with IDG's competing
brands distributed within YDesign's platform. Fitch understands the
acquisition has predominantly been financed by a bridge facility
that Fitch estimates at around EUR150 million, with the remainder
from cash on balance sheet.

Fitch expects further bolt-on acquisitions over the next 12 to 18
months, and assume around EUR130 million in M&A spending for 2022,
with additional recourse to debt for EUR50 million on top of the
estimated EUR150 million bridge facility. Overall, Fitch believes
that the group's financial policy is evolving towards an
acquisition-led phase, driven by shareholders' appetite to expand
the business.

Consistently Positive FCF: IDG retained its FCF generation
capabilities through 2020. A flexible cost base and strong control
over the supply chain continued to feed into moderate capex and low
working capital requirements. Additionally, cost savings and
furlough schemes increased EBITDA margins for 2020. Fitch expects
some of these savings to be unsustainable in 2021, and Fitch also
models an EBITDA margin dilution due to the different business
model of YDesign and of other potential targets. Overall, Fitch
expects FCF margins to average around 6% through to 2024, which is
robust for the rating.

Resumption of Consumer Spending: Fitch expects the eurozone
economy, a key market for IDG, to grow by 4.7% in 2021, after a
decline of 6.6% in 2020. The fiscal easing initiatives announced by
several countries, including Italy, will be a driver of growth in
the short term. The US and APAC, also significant target markets
for the company, will benefit from a strong fiscal stimulus package
and a normalisation in macroeconomic policies, respectively. At the
same time, a slow vaccine rollout in Italy and other European
countries may leave restrictions in place, postponing the economic
rebound to 3Q21. Fitch expects consumer spending in 2021 to grow at
2.6% in the eurozone and 5.7% in the US.

Consumers Switch Towards Goods: The social-distancing measures
imposed over the pandemic affected spending patterns. A dramatic
reduction in households' recreational spending, constrained by
social distancing, generated a shift from services to goods
consumptions, providing a boost to manufacturing industries. New
coronavirus-related restrictions are likely to generate
sector-specific shocks, mainly affecting leisure and travel
industries. The outlook of IDG's lightning and furniture end
markets is largely stable, especially through the new e-commerce
investment in YDesign. The expected long-lasting difficulties for
travel and leisure will affect the contracting segment.

DERIVATION SUMMARY

IDG's ratings reflect its premium brands portfolio and its
diversification over distribution channels, with wholesale
mitigating the inherent risk in retail and contracting. The
residential bias in the catalogue and the move towards e-commerce
through the acquisition of YDesign, strengthen the business model,
and will be sustainable after and through the pandemic. The 'B'
rating continues to reflect long-term growth potential and a
moderate through-the-cycle deleveraging path.

IDG's luxury peers are Capri Holdings Limited (BB+/Stable) owning
Versace, Jimmy Choo, Michael Kors and Tapestry Inc. (BB/Stable)
owner of Coach, Kate Spade and Stuart Weitzman. In the
investment-grade space, there is some comparability with Pernod
Ricard S.A. (BBB+/Stable). Compared with IDG, Fitch sees a higher
fashion risk for Capri and Tapestry as well as higher exposure to
retail distribution. However, comparability is limited due to the
smaller size of IDG and material differences in the capital
structures. Recovery through the pandemic also contributed to
Capri's and Tapestry's Outlooks being revised to Stable. The Stable
Outlook on Pernod reflects its financial flexibility and liquidity
buffer.

In the European LBO portfolio, the optical chain 3AB Optique
Delveloppement Sarl (Afflelou, B/Negative) and the beauty retailer
Douglas GmbH (B-(EXP)/Stable) also enjoy strong brand recognition
and a degree of customer loyalty, but with wider exposure to retail
distribution. Affelou's retail model is mitigated by its healthcare
component and partial public and insurance reimbursements for
distributed goods. In the case of Douglas's 'B-' rating, this is
influenced by a more aggressive capital structure.

KEY ASSUMPTIONS

-- Revenue to rebound by 18% in 2021, including the integration
    of YDesign by 2H21. Revenue growth at 10% CAGR for 2020-2024;

-- EBITDA CAGR of 6% for 2020-2024, with a margin of 21% in 2021,
    stabilising around 20% afterwards;

-- Cash outflow from working capital of EUR31 million
    cumulatively over 2021-2024 or on average EUR8 million per
    year;

-- About EUR115 million of capex over 2021-2024;

-- No dividends in 2021-2024;

-- M&A spending marginally above EUR150 million in 2021 and over
    EUR100 million in 2022.

Key Recovery Assumptions

The recovery analysis assumes that IDG would be considered a
going-concern in bankruptcy, and that it would be reorganised
rather than liquidated, given its immaterial asset base and the
inherent value within its distinctive portfolio of brands.
Additional value lies with the retail network and the wholesale and
contracting client portfolio. Fitch has assumed a 10%
administrative claim

Fitch assesses going concern (GC) EBITDA at around EUR90 million.
Fitch's path to distress scenario assumes a reduced revenue growth
due to weak expansion under certain distribution channels, as
contracting, and a reduction in pricing leading to lower margins.

Fitch increased Fitch's GC EBITDA by about EUR5 million from last
year, to reflect the change in the corporate perimeter following
the acquisition of YDesign and the updated capital structure after
the assumed leverage increase.

At the indicated profit level, Fitch estimates the company would be
still able to generate low single-digit FCF margin but its implied
total leverage would put the capital structure under pressure,
making refinancing extremely difficult without debt cuts or
increasing the cost of debt beyond the available FCF headroom.

Fitch uses a 6.0x multiple, towards the high end of Fitch's
distressed multiples for high-yield and leveraged- finance credits.
Fitch's choice of multiple is justified by the premium valuations
present in the sector involving strong design and luxury brands.

The security package is centered on shares in the key operating
subsidiaries owned by IDG and hence pledged against the holding
company's debt obligations. No security has been taken over the
intellectual property assets, whose access by creditors is however
protected by negative pledges and limitation of liens clauses. The
guarantor's coverage test is set at 80%.

The RCF is assumed to be fully drawn upon default. The RCF ranks
super senior and ahead of the senior secured notes and bridge
facility. Therefore, Fitch's waterfall analysis generates a ranked
recovery for the senior secured noteholders in the 'RR4' category,
leading to a 'B' instrument rating. This results in a waterfall
generated recovery computation output percentage of 44% based on
current metrics and assumptions.

RATING SENSITIVITIES

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

-- A more conservative capital allocation policy leading to FFO
    gross leverage below 6.0x on a sustained basis;

-- FFO fixed-charge coverage higher than 2.5x on a sustained
    basis;

-- FCF margin at 5% or higher, as a result of unmodified pricing
    power and successful management of acquisitions integration.

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

-- FFO gross leverage remaining above 7.0x through the cycle due
    to margin declines or increased recourse to debt-funded
    acquisitions or dividend programs;

-- FFO fixed-charge coverage below 1.8x;

-- FCF margin lower than 2%.

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: The cash position in 2020 and the full
repayment of the EUR100 million RCF, drawn for precautionary
reasons in 2Q 2020, restored the company's liquidity to
satisfactory levels. Fitch assumes a degree of volatility in the
liquidity buffer in the next 12 to 18 months, due to expected
acquisitions, somewhat mitigated by Fitch's expectation of positive
FCF generation through to 2024.

ESG CONSIDERATIONS

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



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

AK BARS: Moody's Alters Outlook on B1 Bank Deposit Ratings to Pos.
------------------------------------------------------------------
Moody's Investors Service affirmed Commercial Bank AK BARS, PJSC's
long-term local and foreign currency bank deposit ratings of B1 and
changed the outlook on these ratings to positive from stable.
Concurrently, the rating agency affirmed the bank's Baseline Credit
Assessment and Adjusted BCA of b2. Moody's also affirmed AK BARS'
long-term local and foreign currency Counterparty Risk Ratings of
Ba3 and its long-term Counterparty Risk Assessment (CR Assessment)
of Ba3(cr). AK BARS' short-term local and foreign currency deposit
ratings and short-term local and foreign currency CRRs of Not Prime
and its short-term CR Assessment of Not Prime(cr) (NP(cr)) were
also affirmed. The outlook has been changed to positive from
stable.

RATINGS RATIONALE

The affirmation of AK BARS' ratings and rating assessments reflects
the resilience of the bank's financial fundamentals to the negative
effects of pandemic-induced economic downturn in Russia, as
demonstrated by positive trends in its solvency metrics and sound
funding and liquidity positions. The positive outlook on AK BARS's
long-term deposit ratings reflects an upward pressure on the bank's
BCA as a result of Moody's expectation that its solvency metrics
will continue improving over the next 12 to 18 months, while its
funding and liquidity will remain robust.

AK BARS's credit profile is supported by its solid capital base
with the ratio of tangible common equity to risk-weighted assets of
13.7% as of December 31, 2020. The capital ratio has been gradually
improving over the past five years and Moody's expects it to remain
strong owing to the bank's good internal capital generation,
prudent profits retention and conservative growth strategy.

AK BARS's problem loans reduced to 9.4% of total gross loans at of
December 31, 2020 from 10.6% a year earlier. Over the same period,
the coverage of problem loans by loan loss reserves increased to
86% from 76%. Moody's expects further gradual improvement of AK
BARS' asset quality metrics over the next 12 to 18 months, as the
bank will continue to shift from concentrated corporate loans
towards more granular retail loans, in particular low-risk mortgage
loans, which, as of December 31, 2021, accounted for 38% of its
total gross loans.

AK BARS' recurring earnings generation has improved, with the
contribution of stable income streams, such as net interest income
and net fees and commissions, having increased to 67% of its net
revenue in 2020, up from 62% in 2019-18 and below 40% in 2016. Yet
the bank's net interest margin still remains modest in Russia's
context, at 2.7% in 2020, owing to its focus on lower-yielding
mortgage loans and loans to blue-chip corporate borrowers. Moody's
forecasts further growth of AK BARS' recurring income streams in
the next 12 to 18 months owing to the gradually expanding lending
volumes.

AK BARS 's standalone financial profile has historically been
benefitting from the bank's stable funding base and ample liquidity
buffer. AK BARS' main funding source is customer deposits, which
constituted 92% of the bank's non-equity funding as of December 31,
2020. As of the same date, the bank's liquid assets accounted for
43% of its total assets.

AK BARS' B1 long-term deposit ratings incorporate the bank's BCA of
b2 and a one-notch rating uplift reflecting Moody's assessment of a
moderate probability of government support to the bank from its
ultimate controlling shareholder, Republic of Tatarstan (Ba1
stable).

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

AK BARS' BCA and deposit ratings may be upgraded if the improving
trends in the bank's solvency metrics, specifically its asset
quality, profitability and capital adequacy, protract into the next
12 to 18 months.

The positive outlook signals that a rating downgrade is unlikely in
the next 12 to 18 months. However, the rating outlook might be
revised to stable or negative in case of any erosion of the bank's
financial fundamentals, which is currently beyond Moody's central
scenario.

LIST OF AFFECTED RATINGS

Issuer: Commercial Bank AK BARS, PJSC

Affirmations:

Adjusted Baseline Credit Assessment, Affirmed b2

Baseline Credit Assessment, Affirmed b2

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

Long-term Counterparty Risk Assessment, Affirmed Ba3(cr)

Short-term Counterparty Risk Ratings, Affirmed NP

Long-term Counterparty Risk Ratings, Affirmed Ba3

Short-term Bank Deposit Ratings, Affirmed NP

Long-term Bank Deposit Ratings, Affirmed B1, Outlook Changed To
Positive From Stable

Outlook Action:

Outlook, Changed To Positive From Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
Methodology published in March 2021.

INTERPROMBANK JSCB: Moody's Downgrades Bank Deposit Ratings to Ca
-----------------------------------------------------------------
Moody's Investors Service has downgraded Interprombank, JSCB's
long-term local and foreign-currency bank deposit ratings to Ca
from Caa2. Previously the outlook on these ratings was negative, Ca
ratings do not carry outlooks. Concurrently, Moody's downgraded the
bank's baseline credit assessment and adjusted BCA to c from ca;
its long-term counterparty risk ratings (CRRs) to Ca from Caa2 and
its long-term counterparty risk assessment (CR Assessment) to
Ca(cr) from Caa2(cr). The bank's short-term deposit ratings and
CRRs of Not Prime as well as short-term CRA of Not Prime(cr) were
affirmed by this action.

Moody's will withdraw all the bank's ratings following the
withdrawal of its banking license by the Central Bank of Russia
(CBR).

RATINGS RATIONALE

The downgrade and Moody's subsequent ratings withdrawal follow the
CBR announcement on April 16, 2021 that it had revoked
Interprombank's banking license as a result of the bank's
submitting misstated financial reporting, breaching the banking
laws and regulations and its failure to comply with the prudential
standards and other mandatory norms [1].

The downgrade of Interprombank's ratings reflects Moody's estimate
of substantial losses that the bank's creditors are likely to incur
as a result of liquidation, given the bank's poor asset quality and
its low share of liquid assets.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
Methodology published in March 2021.

POLYUS FINANCE: Moody's Hikes Backed Sr. Unsecured Debts From Ba1
-----------------------------------------------------------------
Moody's Investors Service has upgraded the rating of the backed
senior unsecured debts issued by Polyus Finance Plc to Baa3 from
Ba1. At the same time, Moody's has assigned a Baa3 issuer rating to
PJSC Polyus and withdrawn the company's Ba1 corporate family rating
and Ba1-PD probability of default rating. The outlook of both
entities remains stable.

"The upgrade reflects Polyus' unique positioning as one of the
lowest cost gold producers in the world, substantial reserve base,
strong cash flow generation, track record of deleveraging and our
expectation that the company will continue successfully executing
its growth projects maintaining conservative financial policy and
modest leverage under various gold price scenarios" says Denis
Perevezentsev, a Vice President-Senior Credit Officer at Moody's.

RATINGS RATIONALE

The upgrade of Polyus's ratings to Baa3 from Ba1 reflects the
company's track record of deleveraging and its status as the fourth
largest gold producer in the world with one of the lowest cash
costs in the sector and stellar reserve base. Moody's expects the
company to continue delivering strong operating performance, which
will allow it to maintain modest levels of leverage under various
gold price scenarios despite its dividend policy, which anticipates
fairly high dividend distributions of 30% of the company's EBITDA,
provided that the company's reported net debt/EBITDA is below 2.5x.
The nature of the company's open pit mines with high quality ore
grades supported by weak rouble exchange rate and the company's
focus on operational efficiencies resulted in total cash costs of
$300-$350 per ounce (oz) for its key deposits and a blended total
cash cost of $362/oz in 2020, the lowest among Moody's rated gold
producers. Although Moody's estimates that a more sustainable level
for the company's total cash costs is about $400-$450/ounce taking
into account the company's mining plan as well as due to
inflationary pressures building up amid economic recovery
post-pandemic and commodity prices growth, it is still
substantially lower compared with its peers. The low cost profile
will support the company's performance through the cycle. Polyus'
leverage, as measured by Moody's adjusted debt/EBITDA declined to
1.15x as of year-end 2020 from 3.0x as of year-end 2017. The
deleveraging was achieved by a combination of Moody's adjusted
EBITDA expansion to $3.4 billion in 2020 (2017: $1.6 billion)
supported by production and gold prices growth and debt reduction
with Moody's adjusted debt declining to $3.9 billion as of year-end
2020 from $4.9 billion as of year-end 2017. The company expects to
produce about 2.7 million ounces of gold in 2021 (2020: 2.8 million
ounces).

Moody's estimates capital spending in 2021-23, on average, of up to
$1.3 billion-$1.5 billion per year (2020: $815 million, as adjusted
by Moody's), including capitalized stripping costs, with the
increase in spending mainly related to the construction of Mill-5
at Blagodatnoye and Sukhoi Log as well as a pick-up in stripping
costs. Construction of Mill-5 at Blagodatnoye will allow the
company to increase ore processing volume by 8 million tonnes by
2025 (to 17 million tonnes on a combined basis, accounting for the
existing Mill-4), resulting in 390,000 ounces of additional gold
production at this mine. Despite this pick-up in capital spending
Moody's estimates the company to maintain gross leverage, as
measured by Moody's adjusted debt/EBITDA of below 2.0x in 2021-23
under gold price scenario of $1,400/oz during this period and up to
2.3x-2.5x under gold price scenario of $1,250/oz during the same
period. Lower gold prices will result in lower EBITDA and lower
dividend distributions, which will be supportive for retained cash
flows available to fund capital spending.

Development of the Sukhoi Log open pit project, located in the
Irkutsk region of Eastern Siberia, which will be subject to the
final investment decision in the second half of 2022, will
contribute to material strengthening of the company's business
profile by the time the project is launched in 2027 as the project
will be processing 33 million tonnes of ore (the company processed
45 million tonnes of ore in 2020) with the average annual
production of 2.3 million ounces at a very competitive cash cost.
This is one of the world's largest greenfield assets with over 40
million ounces of gold reserves, which combines high grade ore with
gold content of 2.3 grams per tonne with long-term life of mine of
about 20 years. Although this $3.3 billion project bears execution
risks, some of which are out of the company's control (e.g.
expansion of electricity grid), these risks are offset by the
experience and track record the company has in executing greenfield
projects (e.g. construction of Natalka mine), including
construction of electricity grids. Polyus has long-term strategic
relationships with Russia's federal grid operator FGC UES, PJSC
(Baa3 stable) while the project's proximity to the existing grid
and Verninskoye mine allows utilization of the current
infrastructure for the new mine construction and processing.
Capital spending will be spread over several years, but will
nevertheless compress the company's free cash flows during the
active stages of mine construction.

Polyus' Baa3 rating factors in (1) large scale of operations with
gold production of 2.8 million ounces in 2020; (2) the company's
global cost leadership (total cash cost of $362/oz in 2020) owing
to high grade ore, rouble depreciation, production efficiencies and
open pit nature of ore extraction; (3) high-grade reserve base of
over 100 million oz, including Sukhoi Log -- the largest among
Moody's rated gold producers; (4) its history of organic growth,
cost cutting and operational enhancements; (5) its very high
Moody's-adjusted EBITDA margin of more than 60%, backed by
completed operational enhancements; (6) Moody's expectation that
Polyus will maintain its leverage below 2.5x over the next 12-18
months under Moody's conservative gold price assumption of
$1,250/oz; (7) the company's strong liquidity and balanced debt
maturity profile; and (8) its balanced financial policy and prudent
corporate governance.

At the same time, the rating takes into account (1) Polyus'
operational and geographical concentration, with all five active
mines and deposits located in Eastern Siberia and the Far East in
Russia; (2) product concentration, as the company predominantly
produces gold, while the share of by-products is insignificant; (3)
dividend policy, which anticipates fairly high dividend payouts;
(4) concentrated ownership-related risks, including potential rapid
changes in strategy and financial and dividend policies, although
mitigated to some extent by Polyus' listing on the Moscow and
London stock exchanges, with 21.85% free float; (5) sensitivity to
the volatile gold price and rouble exchange rate; (6) fairly
elevated capital spending related to the development of Sukhoi Log,
which will be spread over the next seven years; and (7) exposure to
Russia's macroeconomic, regulatory and operating environment
because all of Polyus' operating assets are located in Russia.

Polyus has strong liquidity and benefits from its balanced debt
maturity profile. As of December 31, 2020, Polyus' liquidity
comprised nearly $1.5 billion in cash and equivalents, and around
$1.8 billion in operating cash flow, which Moody's expects the
company to generate in 2021 under the conservative gold price
assumption of $1,400/oz ($2.2 billion under gold price assumption
of $1,600/oz). This liquidity will comfortably cover Polyus'
capital spending of up to $1.4 billion, including capitalized
stripping costs, during the same period, shareholder distributions,
which Moody's estimates at up to $0.8 billion-$1.1 billion, and
short-term debt maturities of around $220 million. Beyond 2021, the
company's debt maturities in 2022 are represented by the
outstanding $483 million eurobond due in March 2022. Moody's views
the related refinancing risks as low because of the company's
sustainable operating cash flow, and access to both domestic and
international debt financing.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS

Polyus is exposed to environmental, social and governance issues
that are typical for a company in the mining sector. The
environmental risks include, but are not limited to, soil and water
pollution as a result of processes and chemicals, in particular
cyanide and other hazardous substances, used in gold extraction and
production methods. Such risks are generally viewed by Moody's as
very high for mining companies, which include water shortages and
man-made hazards. Such hazards may include flooding, and collapsing
of walls or shelves at the company's open-pit mines. Leakage from,
or failure of the company's tailings dams may present another
potential risk, but Polyus regularly inspects its tailings storage
facilities. Thawing permafrost may lead to significant operational
disruptions. About 35% of the company's total gold output is
produced in permafrost areas. Polyus has a permafrost monitoring
system in place, including on pit walls and mine adjacent areas. In
2021, the company signed a number of agreements with RusHydro, PJSC
(Baa3 stable) to supply the company's plants with hydropower, which
will increase the share of renewable sources in the production
assets electricity generation to 90% in 2021 from 36% in 2020, and
underscores the company's decarbonization efforts.

Governance risks are an important consideration for all debt
issuers, and are relevant to bondholders and bank lenders because
governance weaknesses can lead to a deterioration in a company's
credit quality, while governance strengths can benefit a company's
credit profile. Polyus has a concentrated ownership structure, with
76.34% of the company's share capital owned by Said Kerimov. The
risk of concentrated ownership is mitigated by the track record of
a balanced financial policy as well as through independent
directors' oversight, with four out of nine board members being
independent directors.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation that, over the next
12-18 months, Polyus will sustain its modest leverage level;
maintain strong liquidity; and pursue a balanced financial policy,
with no elevated shareholder distributions.

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

Ratings upgrade is unlikely over the medium-term given that the
company is in the midst of the elevated capital spending cycle.
Moody's could upgrade Polyus' ratings if the company were to (1)
continue demonstrating a track record of increasing its gold
production, inter alia, as a result of a successful launch of
Sukhoi Log; (2) generate positive FCF on a sustained basis; (3)
pursue a balanced financial policy and prudent corporate
governance, showing restraint with respect to dividends and
maintaining its (CFO - dividends)/debt above 35%; and (4) maintain
strong liquidity.

Moody's could downgrade the ratings if (1) the company's
Moody's-adjusted total debt/EBITDA were to rise above 2.75x on a
sustained basis; (2) shareholder distributions or capital spending
were to significantly exceed Moody's current expectations; or (3)
operating performance and liquidity were to deteriorate
substantially. A downgrade of Russia's (Baa3 stable) sovereign
rating could also lead to a downgrade of Polyus's ratings.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Mining
published in September 2018.

PJSC Polyus (Polyus) is one of the lowest-cost gold producers
globally, with five active mines in Russia. In 2020, the company
produced 2.8 million ounces of gold, ranking as the fourth-largest
producer globally, and generated revenue of $5.0 billion and
Moody's-adjusted EBITDA of $3.4 billion. Polyus is beneficially
controlled by Said Kerimov (76.34%), while 21.85% is in free float
on the Moscow and London stock exchanges; the remaining 1.81%
consists of treasury shares and shares that belong to the company's
management.



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

ATRIUM EUROPEAN: Fitch Rates Proposed EUR300MM Bond 'BB+(EXP)'
--------------------------------------------------------------
Fitch Ratings has assigned Atrium European Real Estate Limited's
proposed EUR300 million undated hybrid bond an expected rating of
'BB+(EXP)'. The proposed hybrid would qualify for 50% equity
credit.

The hybrid proceeds will be used to finance eligible green projects
and its issuance will aid funding of Atrium's planned residential
developments.

The final rating is contingent on the receipt of final documents
conforming materially to the preliminary documentation reviewed.

KEY RATING DRIVERS

NOTES

Hybrid Notched off IDR: The proposed undated hybrid is rated two
notches below Atrium's Long-Term Issuer Default Rating (IDR). This
reflects the hybrid's deeply subordinated status, ranking behind
senior creditors and senior only to ordinary equity, with coupon
payments deferrable at the discretion of the issuer and no formal
maturity date. It also reflects the hybrid's greater loss severity
and higher risk of non-performance relative to senior obligations.

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

Effective Maturity Date: Although the hybrids are perpetual, Fitch
deems their effective maturity five years after its first reset
date (in 2031) in accordance with the agency's Corporate Hybrids
Treatment and Notching Criteria. From this date, the issuer will no
longer be subject to replacement language, which discloses the
intent to redeem the instrument at its reset date with the proceeds
of a similar instrument or with equity. The instrument's equity
credit would change to 0% five years before the effective maturity
date (i.e. in 2026). The coupon step-up remains within Fitch's
aggregate threshold rate of 100bp.

ATRIUM

Retail Activity Curtailed: The pandemic in Atrium's core markets,
Poland and Czech Republic, remains acute, prompting governments to
maintain different forms of social-distancing measures.
Non-essential shops have been closed in Czech Republic since
end-December 2020 and in Poland since end-March 2021. These
measures hamper the recovery of retail trade and puts further
pressure on tenants whose financials have been weakened by earlier
lockdowns. Atrium's end-2020 occupancy declined to 92% (end-2019:
97%).

Footfall and Sales Subdued: In September 2020, when Atrium's malls
were fully open (98% of its space) after the first round of
non-essential store closures, footfall recovered to 76% of the
previous year's levels, while tenants' sale reached 86%. This
followed the trend observed elsewhere in Europe where customers
visited malls less frequently but spent more per visit. Atrium's
February 2021 data (58% and 70% of previous year footfall and
tenants' sales respectively) remains subdued as only 55% of the
Group's operating GLA is open.

Rent Collection: Atrium collected 75% of 4Q20 rent and service
charges unadjusted for concessions either agreed bilaterally with
tenants or imposed by the Polish government (3Q20: 83%, 2Q20: 64%).
These collection rates are higher than UK peers but below Nordic
peers, where state aid for tenants supported rents payments.
Bilaterally, Atrium agreed concessions with its most affected
tenants, particularly food and beverage and cinemas, on a
case-by-case basis. Concessions included short-term rent holidays
or discounts (limited to rents payable in 2020) in exchange for
lease extensions or inclusion of click-and-collect sales into
leases' turnover rent calculations.

Lower Rental Income: Including increased vacancy, the cash impact
of Covid-19 on rents and service charges was EUR49 million in 2020.
Contrary to other European markets such as the UK where retail
rents are set to markedly decline, Fitch expects only a limited
decline in rental levels in strongly performing shopping centres in
Atrium's core portfolio.

Low Leverage Headroom: Fitch forecasts Atrium's net debt/EBITDA for
2021 to improve but to remain above Fitch's negative rating
sensitivity (8.0x) before returning to 7.9x at end-2022. The
recovery in financial profile is taking longer as the pandemic
extends into 2021. Fitch forecasts its EBITDA net interest cover to
improve to around 3x over the next three years.

Conditions for Leverage Improvement: Atrium's return to
pre-Covid-19 leverage will be contingent on the strength of the
retail recovery, the ability to improve occupancy rates without
reducing rents, and on the timely realisation of planned disposals.
Atrium's financial profile is aided by the revised scrip 2020
dividend pay-out policy, ceasing past years of paying dividends in
excess of profits. Fitch assumes that future quarterly cash
dividends will reflect levels of cash rent receipts.

Portfolio Repositioning Continues: Atrium continues to implement
its strategy to dispose of its lower quality non-core assets.
Despite adverse transaction conditions related to the pandemic,
Atrium managed to sell five Polish properties (EUR32 million,
around 10% below end-2019 book value) in July 2020. The transaction
was facilitated by a vendor loan provided to the buyer. Core to its
asset rotation is planned disposals, in the short to medium term of
the remaining Slovakian asset (EUR121 million market value) and
exiting its Russian portfolio (EUR268 million). Fitch expects that
the exit from Russia will take some time, as this market is less
liquid and more volatile.

Diversification into Residential: Atrium's new strategy is to
re-invest disposal proceeds into residential-for-rent properties
rather than additional retail space as previously planned. Atrium
plans to increase its residential assets to 40% of its portfolio by
end-2025 with the remainder in prime shopping centres. Its
residential expansion will focus on Poland, particularly Warsaw,
where the institutional private rental segment is still
undeveloped. Atrium will partly use its own land plots adjacent to
its existing retail assets. This will provide diversification from
its retail rental income and widen the customer base for its
shopping centres.

Residential Execution Risk: Fitch sees increased execution risk
from Atrium's limited experience in investing and operating
residential assets. Atrium plans to manage associated risks by
using a residential property management company and limit its
development risk through forward-funding deals. Given that it will
take time before Atrium builds up enough scale for residential to
form a significant part of its portfolio, Fitch views this strategy
as neutral to its rating.

DERIVATION SUMMARY

Atrium's EUR2.5 billion (including the company's JV at share)
shopping centre portfolio is smaller than NEPI Rockcastle plc's
(BBB/Stable) portfolio of EUR5.8 billion. NEPI's portfolio of
regionally dominant shopping centres is more exposed to secondary
cities, while Atrium focuses on the capital cities of Poland and
Czech Republic. Atrium's size resembles Globalworth Real Estate
Investments Limited's (BBB-/Stable) EUR2.4 billion portfolio of
office assets.

Out of those three CEE-located peers, Atrium has the strongest
country risk exposure with assets located in CEE countries rated
'A-' and above, namely Poland (65% of market value, A-/Stable),
Czech Republic (21%, AA-/Stable) and Slovakia (5%, A/Negative).
Only 10% of its assets (by value) are located in Russia
(BBB/Stable). NEPI's geographic diversification is stronger with a
presence in nine CEE countries, but the average country risk rating
is lower and similar to that exhibited by Globalworth, whose office
assets are almost equally split between Poland and Romania
(BBB-/Negative).

Atrium's pre-coronavirus end-2019 net debt/EBITDA was better than
Globalworth's equivalent leverage of around 8x, but higher than
NEPI's around 6x. This was partly because of Atrium's lower
income-yielding assets with a net initial yield (NIY) at 6.2%
versus NEPI's NIY of 6.7%. Atrium's NIY would be lower if Fitch
excludes its non-core Russian and other secondary assets that will
be disposed of. Interest cover for Atrium, Globalworth and NEPI
(3.5x, 3.4x and 8.1x, respectively) is comfortable for their
respective ratings.

Western European peers such as Hammerson plc (BBB/Rating Watch
Negative) and The British Land Company PLC (A-/Stable) have assets
located in the more mature western European markets, where income
yields are tighter, making their financial metrics less comparable
with that of CEE entities.

All ratings cited are IDRs.

KEY ASSUMPTIONS

-- Given the extended effect of the pandemic and related
    tightening of social-distancing measures including essential
    shops closures, for 2021 rents Fitch assumes (i) one month of
    lost rent (adjusted to reflect Atrium's share of essential
    stores); and (ii) a 5% decrease in rents for lease renewals.

-- Gradual recovery in occupancy to 96% in 2023 after a decline
    in 2020.

-- In 2020 and 2021, lower rent and profits are matched by lower
    cash dividends. Thereafter, cash dividends to fluctuate in
    line with funds from operations.

-- Capex is a mix of non-income yielding reinvestment (EUR18
    million per year) and continued development spend.

-- Over EUR250 million cash proceeds from disposals are received
    during the forecast horizon until 2023.

RATING SENSITIVITIES

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

-- Net debt/EBITDA below 7.0x, on a sustained basis, assuming
    existing portfolio mix.

-- Maintaining occupancy rate firmly above 95%, and solid like
    for-like rental growth.

-- Reduced concentration, with top 10 assets comprising less than
    50% of net rental income or market value on a sustained basis.

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

-- Fitch-defined loan-to-value (LTV) trending above 45% or net
    debt/EBITDA surpassing 8.0x, on a sustained basis, assuming
    existing portfolio mix.

-- Deterioration of operating metrics on a sustained basis, such
    as an occupancy rate sustainably below 90% or steep fall in
    rents on a like-for-like basis.

-- A liquidity score below 1.25x on a sustained basis.

-- Unsustainable dividend cover.

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 end-March 2021, Atrium held EUR170 million
of available cash and had unutilised EUR300 million of its
revolving credit facility (2023 maturity). This is a strong
liquidity position, taking into account that no material debt
repayment is due until October 2022 when a EUR155 million bond
matures.

Atrium's average debt maturity was 5.1 years at end-2020 (end-2019:
4.4 years) and its euro-denominated average cost of debt was 2.8%
(end-2019: 3%).

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.

AZURE FINANCE 1: Moody's Affirms B1 Rating on GBP18.3M Cl. E Notes
------------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of two Notes and
affirmed the ratings of two Notes in Azure Finance No. 1 plc:

GBP69.3M Class B Notes, Affirmed Aa1 (sf); previously on Sep 24,
2020 Affirmed Aa1 (sf)

GBP23.7M Class C Notes, Upgraded to Aa1 (sf); previously on Sep
24, 2020 Upgraded to Aa2 (sf)

GBP11M Class D Notes, Upgraded to Aa3 (sf); previously on Sep 24,
2020 Upgraded to A3 (sf)

GBP18.3M Class E Notes, Affirmed B1 (sf); previously on Sep 24,
2020 Affirmed B1 (sf)

Azure Finance No. 1 plc is a static cash securitisation of auto
receivables extended by Blue Motor Finance Limited (NR) to obligors
located in the United Kingdom. The portfolio consists of hire
purchase agreements extended to private obligors.

RATINGS RATIONALE

The rating action is prompted by an increase in credit enhancement
available for the affected Note tranches and better than expected
collateral performance.

Moody's affirmed the ratings of the Notes that had sufficient
credit enhancement to maintain the current rating on the affected
Notes.

Increase in Available Credit Enhancement

Sequential amortisation led to the increase in the credit
enhancement available in this transaction.

For instance, the credit enhancement for the tranche C and D Notes
upgraded in today's rating action increased to 42.0% and 26.2% from
25.8% and 16.1% respectively since the latest rating action on
September 2020.

Revision of Key Collateral Assumptions:

As part of the rating action, Moody's reassessed its default
probability and recovery rate assumptions for the portfolio
reflecting the collateral performance to date. Assets more than 60
days in arrears currently stand at 0.86% of current pool balance.
Cumulative defaults currently stand at 6.82% of original pool
balance. Moody's assumed a default probability of 12% of the
current portfolio balance. This corresponds to a default
probability assumption of 9.1% as of the original pool balance,
down from the previous assumption of 9.7%. The recovery rate was
left unchanged at 35%.

There is limited liquidity support for all rated Notes. The
liquidity available for the Notes is limited to the specific
reserve funds for each tranche. In case of a servicer disruption
event this could lead to unpaid interest on some of the classes of
notes in certain scenarios. In the specific case of the Class B and
Class C Notes, Moody's calculates that the specific reserve fund,
equal to 1% of the outstanding balance of each respective class,
could cover less than two monthly payments. Moody's has taken this
into account in the analysis and constrained the rating of the
Class B and Class C Notes.

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
December 2020.

The coronavirus pandemic has had a significant impact on economic
activity. Although global economies have shown a remarkable degree
of resilience to date and are returning to growth, the uneven
effects on individual businesses, sectors and regions will continue
throughout 2021 and will endure as a challenge to the world's
economies well beyond the end of the year. While persistent virus
fears remain the main risk for a recovery in demand, the economy
will recover faster if vaccines and further fiscal and monetary
policy responses bring forward a normalization of activity. As a
result, there is a heightened degree of uncertainty around Moody's
forecasts. Moody's analysis has considered the effect on the
performance of consumer assets from a gradual and unbalanced
recovery in the UK economic activity.

Moody's regard the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.

Factors that would lead to an upgrade or downgrade of the ratings:

Factors or circumstances that could lead to an upgrade of the
ratings include: (1) performance of the underlying collateral that
is better than Moody's expected; (2) an increase in available
credit enhancement; (3) improvements in the credit quality of the
transaction counterparties; and (4) a decrease in sovereign risk.

Factors or circumstances that could lead to a downgrade of the
ratings include: (1) an increase in sovereign risk; (2) performance
of the underlying collateral that is worse than Moody's expected;
(3) deterioration in the Notes' available credit enhancement; and
(4) deterioration in the credit quality of the transaction
counterparties.

CARLAUREN GROUP: South West Hotels Sold Off Following Collapse
--------------------------------------------------------------
Hannah Baker at BusinessLive reports that several South West hotels
and nursing homes have been sold off following the collapse of a
high-risk property company nearly 18 months ago.

Business advisory firm Quantuma and restructuring firm Kroll, the
joint liquidators of the Carlauren Group, sold the properties to
Phoenix Commercial Property Development (PCPD) for an undisclosed
sum, BusinessLive relates.

No jobs were saved as a result of the sale, BusinessLive notes.

According to BusinessLive, all of the properties were bought with
the investor leases in place and, according to the liquidators,
PCPD will negotiate with the leaseholders regarding further
development and use.

The sale was completed on April 21 and included:

   -- Eton House and Coverdale Court, Yeovil
   -- Hurst Manor Nursing Home, Martock
   -- Rosewell Care Home, Bristol
   -- The Auckland House Hotel, Shanklin
   -- The Ocean Hotel and Kings Bar, Sandown
   -- Clinton House and Tarrant House, St Austell
   -- The Coppice Hotel, Torquay

Carl Jackson, chief executive of Quantuma, as cited by by
BusinessLive, said: "These were difficult and protracted
negotiations which have turned out successful given the current
circumstances and the outcome will benefit the companies and the
investors.

"All of the companies listed in the sale were insolvent and this
transaction now gives a chance for the properties to be funded in
the future."

The Carlauren Group, which was run by director Sean Murray, fell
into administration in 2019, BusinessLive recounts.

Investors into the multimillion-pound company had been offered the
opportunity to plough their money into properties including luxury
care homes, but some were never built, BusinessLive discloses.


CIDRON AIDA: Fitch Assigns 'B' LT IDR, Outlook Stable
-----------------------------------------------------
Fitch Ratings has assigned Cidron Aida Bidco Ltd. (Advanz) a final
Long-Term Issuer Default Rating (IDR) of 'B' with Stable Outlook.
Fitch has also assigned Advanz's term loan and notes, issued
through Cidron Aida Finco S.a.r.l, final senior secured ratings of
'B+' with Recovery Ratings of 'RR3'/56%. These final ratings are
the same as the expected ratings assigned by Fitch on 17 March 2021
following completion of the issuer's recapitalisation and terms
being in line with Fitch's expectations.

Advanz's 'B' IDR is constrained by its limited scale, high leverage
and execution risk in implementing its revised strategy as an
asset-light multi-national pharmaceutical company focused on niche
and specialist off-patent branded and generic drugs. However,
positively, the rating reflects Advanz's refocused strategy
engaging in both new generic drug development and the life-cycle
management of existing off-patent drugs, with an increased focus on
specialist distribution to hospitals in Europe. The IDR is
supported by Advanz's diversification across drugs, treatment areas
and geographies, strong profitability and healthy cash generation.

The Stable Outlook reflects Fitch's expectation that, despite
Advanz's capacity to deleverage supported by strong free cash flow
(FCF) generation, available funds will be reinvested in the
business to support and accelerate growth, leading to a
comparatively static leverage profile through to 2023.

KEY RATING DRIVERS

Strategic Refocus Drives Growth: Fitch's rating case assumes that
organic growth will be driven by Advanz's refocused strategy to
actively engage in the development and marketing of targeted
specialist generic drugs. This should offset the assumed moderate,
yet steady, decline of its established off-patent drug portfolio,
subject to active life-cycle management. The focus on bringing
value-added generic drugs to market through co-development,
in-licencing and distribution agreements is a distinct feature of
Advanz's refocused strategy. This differentiates it from some of
its European leveraged-finance asset-light peers, resulting in
greater organic growth potential, but also more investments in the
pipeline and associated innovation risks.

High Financial Leverage, M&A Assumed: High leverage is a rating
constraint. Fitch forecasts funds from operations (FFO) gross
leverage to remain around 6.0x-7.0x until 2023, as Fitch assumes a
prioritisation of investments in growing the business during this
period, funded by FCF and available debt. Therefore, Fitch's rating
case assumes discretionary additional investments in acquisitions
and in-licencing deals to support Advanz's strategic development.

Satisfactory Cash Generation Supports Ratings: Advanz's high
financial leverage is supported by strong, albeit gradually
eroding, profitability, with EBITDA margins under Fitch's rating
case trending towards 37% (from currently close to 44%) until 2023.
This is predicated on expected investments in its pipeline and
marketing infrastructure to support projected revenue growth.
Nevertheless, its asset-light manufacturing set-up supports strong
cash generation, with FCF margins expected to remain around 15%.
Fitch assumes that FCF generated will be re-invested in the
business until 2023, resulting in continuing high financial
leverage.

Pandemic Neutral to Positive: The pandemic has been broadly neutral
for Advanz, in line with most pharmaceutical peers, with some drugs
benefitting from short-term demand increases for dedicated Covid-19
treatments and offsetting temporary weakness in other drugs.
Overall marketing, distribution and manufacturing of Advanz's drugs
has not been affected by disruptions caused by the pandemic, which
leads us to assess its impact as neutral to the ratings.

Growth Opportunities in Generic Markets: Structural volume growth
in generic drug markets is driven by an ageing population, higher
prevalence of chronic diseases and an increasing number of drugs
losing patent protection. Large innovative pharmaceutical companies
are increasingly optimising their life cycle and tail-end drug
management by divesting smaller off-patent drugs to refocus
resources and obtain proceeds to re-invest in the business. This
offers smaller players, such as Advanz and its peers, significant
inorganic growth opportunities. However, Fitch expects generic drug
pricing is likely to remain under pressure, spurring investments in
scale, diversification, low-cost manufacturing and more specialist
products to protect growth and profitability.

High Regulation/Litigation/Conduct Risks: Fitch assumes continued
regulatory pressure on pharmaceutical groups as focus on the value
of new treatments to healthcare systems increases, particularly in
a period of governments' fiscal consolidation in the post-pandemic
environment. Therefore, Fitch views event risk around regulation,
litigation and conduct, particularly in generic drugs, as high.

DERIVATION SUMMARY

Fitch rates Advanz and conducts peer analysis based on its Global
Navigator Framework for Pharmaceutical Companies. Fitch considers
Advanz's 'B' rating against other asset-light scalable specialist
pharmaceutical companies focused on off-patent branded and generic
drugs such as Cheplapharm Arzneimittel GmbH (B+/Stable), Antigua
Bidco Limited (Atnahs, B+/Negative) and IWH UK Finco Ltd (Theramex,
B/Stable), as well as the European generic drug manufacturer Nidda
Bondco GmbH (Stada, B/Stable).

Advanz's business model focuses not only on life-cycle and
intellectual property management of off-patent branded and generic
drugs, as is the case for Cheplapharm and Atnahs, but it is also
involved in bringing new niche, specialist and value-added generics
to market though co-development in-licencing and distribution
agreements. Therefore, in contrast to these two peers, Advanz's
future growth will be driven by both organic growth opportunities
related to the company's pipeline and inorganic growth through
acquisition of niche off-patent branded and generic drugs.

Advanz has a structurally lower margin than Cheplapharm and Atnahs,
which is however still strong for the rating category. This is
partly driven by its decision to develop a sales channel in certain
therapeutic areas targeting European hospitals, which in turn calls
for higher in-house marketing and distribution expenses. Its peer
Theramex uses an even more targeted approach with in-house sales
capabilities focusing only on the women's health market, which
explains its lower margins.

All the ratings cited are constrained by small size and scale. The
ratings are differentiated by higher leverage for Advanz
post-refinancing than that for Cheplapharm and Atnahs, based on
Fitch-calculated FFO gross leverage.  Compared with Stada's,
Advanz's rating reflects a weaker business risk profile due to a
significantly smaller size and scale, which is however compensated
by a less aggressive financial policy and financial risk profile.

KEY ASSUMPTIONS

-- High single-digit revenue growth in 2021, with flat to low
    single-digit decline in organic revenue offset by new
    acquisitions and the annualised contribution of Correvio and
    Alprostadil rights.

-- Revenue growth in low teens for 2022 and 2023, driven by mid
    to-high single-digit organic revenue growth and acquisitions.

-- Fitch-defined EBITDA margins gradually moderating towards 37%
    in 2023, partly driven by the dilutive impact of assumed
    acquisitions.

-- Capex at 2%-2.5% of sales for 2021-2023.

-- Moderate working capital outflows until 2023.

-- Annual acquisitions of USD120 million in 2021 and USD150
    million in 2022 and 2023.

-- No dividends, share buybacks nor equity injections for 2021
    2023.

RECOVERY ASSUMPTIONS:

Advanz's recovery analysis is based on a going-concern (GC)
approach. This reflects the company's asset-light business model
supporting higher realisable values in a financial distress versus
a balance-sheet liquidation.

Financial distress could arise primarily from material revenue and
margin contraction following volume losses and price pressure given
its exposure to generic competition.

For the GC enterprise value (EV) calculation, Fitch estimates a
post-restructuring EBITDA of about USD180 million. This
post-restructuring GC EBITDA reflects Fitch's expectation of
organic portfolio earnings post-distress and implementation of
possible corrective measures. This GC EBITDA also reflects the
annualised contribution from the 2020 acquisitions of Correvio and
Alprostadil rights.

Fitch has applied a 5.5x distressed EV/EBITDA multiple, which would
appropriately reflect Advanz's minimum valuation multiple before
considering value added through portfolio and brand management.

After deducting 10% for administrative claims, Fitch's principal
waterfall analysis generated a ranked recovery in the 'RR3' band
for all senior secured instruments ranking equally among
themselves. They comprise a USD360 million senior secured term loan
B (TLB), USD1,020 million senior secured notes in euros and
sterling and a USD200 million multi-currency revolving credit
facility (RCF), which Fitch assumes to be fully drawn prior to
distress. All these result in a waterfall generated recovery
computation (WGRC) output percentage of 56% based on current
metrics and assumptions.

RATING SENSITIVITIES

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

-- Successful implementation of the organic growth strategy,
    complemented by selective and carefully executed acquisitions
    leading to:

-- EBITDA margin sustained at above 45%;

-- Continued strong cash generation with FCF margins comfortably
    in double digits;

-- FFO gross leverage sustained at or below 5.5x.

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

-- Unsuccessful implementation of the organic growth strategy
    and/or acquisitions that lead to:

-- A sustained decline in EBITDA margins, translating into
    weakening cash generation, with FCF margins declining towards
    low single digits or zero;

-- FFO gross leverage sustained above 7.0x.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Following the debt refinancing Advanz will have
a satisfactory liquidity position, with around USD150 million in
readily available cash plus an undrawn USD200 million RCF maturing
in September 2027, in addition to assumed strong internal cash
generation. Fitch's rating case assumes that a minimum cash balance
of USD100 million will be maintained over 2021-2023. Following
completion of its new capital structure, Advanz benefits from a
long-dated maturity, with no debt repayment until March 2028.

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.

GREENSILL CAPITAL: Lex Greensill No Contract to Work for Gov't.
---------------------------------------------------------------
Rajeev Syal at The Guardian reports that a failed financier at the
centre of a Downing Street lobbying scandal had no contract to work
for the government despite spending years inside No 10 under David
Cameron, a committee of MPs has been told.

According to The Guardian, senior civil servants told MPs Lex
Greensill had a desk and a security pass to gain access to the
prime minister's offices.  But officials disclosed on April 26 that
he was neither a civil servant nor a special adviser and they could
find no contracts for Greensill's three years in Whitehall, The
Guardian notes.

Appearing before the public administration and constitutional
affairs committee on April 26, Simon Case, the cabinet secretary,
said he was surprised and puzzled by the lack of paperwork, The
Guardian relates.

"We cannot explain how these decisions were taken or why . . . it
does not look appropriate," he said.  This will form part of an
independent inquiry conducted by the corporate lawyer Nigel
Boardman.

The government has come under mounting pressure to explain why
Greensill was allowed to become an unpaid adviser to government
under Mr. Cameron -- a role in which he was reportedly allowed to
pitch his financial projects across Whitehall, The Guardian
discloses.  His business card described him as a senior adviser to
the prime minister's office, according to The Guardian.

His firm Greensill Capital collapsed into administration last month
leaving thousands of jobs in the balance, The Guardian recounts.
Mr. Cameron and Greensill are under investigation for lobbying
ministers for access to government schemes as recently as last
year, The Guardian states.

According to The Guardian, Mr. Cameron had pushed the Bank of
England and the Treasury to risk up to GBP20 billion in taxpayer
cash to help Greensill Capital during March and April 2020, as the
lender started to face "significant" financial pressure at the
start of the Covid pandemic.

Darren Tierney, the director general of propriety and ethics in the
Cabinet Office, told the committee that Lex Greensill's role as an
adviser was "unclear", The Guardian relays.

"He wasn't a special adviser -- his exact status is unclear.
That's one of the things that we have asked Nigel Boardman to look
into," he said.  "He was appointed as an unpaid adviser on supply
chain finance in January 2012.  He did that until 2015. In 2013, he
also became a crown representative, which lasted until 2016, when
he left the Cabinet Office."

Mr. Tierney said Greensill had a security pass for the Cabinet
Office and Downing Street, The Guardian notes.  He was given
security clearance several months after his appointment, according
to The Guardian.

Mr. Case said although Greensill had access to Downing Street, it
is unclear whether he was working there or what he did because they
could find no relevant contract. "I can't explain the Greensill
case," he said.

Asked if there is a conflict of interest, Mr. Case added: "We can't
explain.  It looks like there were conflicts and we're not clear on
how they were managed. From our cursory look, we can't see the
evidence . . .. That doesn't look right."


HIKMA PHARMACEUTICALS: Moody's Withdraws Ba1 Corp Family Rating
---------------------------------------------------------------
Moody's Investors Service has withdrawn the Ba1 corporate family
rating and the Ba1-PD probability of default rating of Hikma
Pharmaceuticals PLC. Concurrently, Moody's has withdrawn the Ba1
rating on the $500 million backed senior unsecured notes issued by
Hikma Finance USA LLC. The rating agency has also withdrawn the
stable outlook on both entities.

RATINGS RATIONALE

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

Hikma Pharmaceuticals PLC, listed on the London Stock Exchange, is
a global manufacturer and licensee of generics and branded
generics. In 2020, the group generated revenue of $2.3 billion and
reported EBITDA of $670 million.

IMPERIAL HOTEL: Set to Re-open a Year After Administration
----------------------------------------------------------
Becca Gliddon at EastDevonNews.co.uk reports that a landmark hotel
overlooking Exmouth seafront is set to re-open next month -- a year
after it went into administration.

The Imperial Hotel, on Exmouth Esplanade, was one of four Shearings
Hotels to close in May 2020.

Now under new management, the Imperial Hotel will reopen in May
2021 and is looking to recruit staff.

The Esplanade in Paignton, The Imperial Hotel in Exmouth, and The
Torbay and Tor Park in Torquay, are set to reopen as part of the
Coast & Country Hotel Collection, a newly-formed group of former
Shearings Hotels.

All four hotels went into administration in May 2020 as part of
Shearings Hotels, EastDevonNews.co.uk recounts.  At the time it was
feared they would close indefinitely.

New management and entering into a Hotel Management Agreement with
Bespoke Hotels has resulted in the properties reopening,
EastDevonNews.co.uk discloses.


LABOUR PARTY: Goes Into Administration, Seeks Buyers for Business
-----------------------------------------------------------------
NewsBiscuit reports that high street brand The labour Party,
appointed administrators from Deloitte on April 21.

No immediate redundancies were made as a result of the appointment,
and the group's cloth cap stores and websites will continue to
trade, NewsBiscuit notes.  It will still be able to ask the Prime
Minister some tame, easily brushed aside questions in Parliament
and call for a public enquiry on something when it runs out of
ideas, NewsBiscuit states.

According to NewsBiscuit, the move will protect the party from
creditors while a buyer is sought for all or parts of the company.
Sir Philip Green is expected to make derisory bids for some of the
assets, NewsBiscuit says.



MULHOLLAND COMPOSITES: Enters Administration, 45 Jobs Affected
--------------------------------------------------------------
Zena Hawley at DerbyshireLive reports that Mulholland Composites,
one of Derby's best-known high-tech precision engineering firms has
ceased trading, making all of its 45 employees redundant.

Mulholland Composites, which specialised in the manufacture of
carbon composite components including for Formula One teams and the
aerospace and defence sectors, was based in a modern factory on
Belmore Way, off Raynesway.

It was set up by Graham Mulholland, who previously set up EPM
Technology in 1996, but after being put into administration in
2017, EPM Composites was formed and Mr. Mulholland left the
business, DerbyshireLive recounts.

He then returned after EPM Composites was put into administration
in 2019 and Mr. Mulholland moved in to set up Mulholland
Composites, DerbyshireLive notes.

But the administrators have been called in again with Mr.
Mulholland blaming the company's demise on Derby City Council
following a dispute over the lease of the company's high-tech
factory, DerbyshireLive states.

Mr. Mulholland has claimed that he has continually asked for a
lease from Derby City Council and was given two options either to
leave the premises in 14 days or raise GBP63,000 for a three month
lease to be paid the following day, DerbyshireLive discloses.

According to DerbyshireLive, Richard Saville, senior partner with
insolvency practitioners Corporate Financial Solutions (CFS), who
is handling the administration of Mulholland Composites, confirmed
that prior to his company's involvement, another company had been
consulted for independent advice, "which resulted in our
involvement".

He also confirmed that there had been a dispute between the city
council and Mulholland Composites prior to CFS's involvement and
said he was unable to comment on it, DerbyshireLive relays.


NMC HEALTH: ADCB's 1Q Profits Up 400% Despite Big Impairments
-------------------------------------------------------------
Reuters reports that Abu Dhabi Commercial Bank (ADCB) (ADCB.AD),
UAE's third-biggest lender, reported a more than 400% surge in
first-quarter profit on April 25, after it took big impairments a
year earlier due to its large exposure to troubled hospital
operator NMC Health.

ADCB said net profit in January-March this year totalled 1.1
billion dirhams (US$299.50 million), a 436% increase year on year
and an 11% increase quarter on quarter, Reuters relates.

According to Reuters, the growth was "largely due to improved cost
of risk compared to Q1 '20," Chief Executive Ala'a Eraiqat said in
the earnings statement.

In the first three months of 2020 ADCB reported an 84% fall in net
profit as it took US$292 million in impairments on debt exposure to
NMC Health and payments group Finablr, which ran into financial
difficulties last year, Reuters discloses.

The bank was a major lender to NMC Health with an exposure of about
US$981 million, Reuters states.  NMC last year went into
administration after months of turmoil following questions about
its financial reporting from short-seller Muddy Waters, Reuters
recounts.

"To date, the Bank has recorded significant provisions and interest
in suspense on the NMC Group," Reuters quotes ADCB as saying on
April 25.

"ADCB is comfortable with these provisioning levels, which are in
line with independent assessments on value and recoverability and
are consistent with information on potential recoveries disclosed
to creditors by NMC," it said.

Net impairment charges totalled 704 million dirhams in the first
quarter of this year, a 63% annual decrease and a 25% decline
quarter on quarter, according to Reuters.


SYNLAB BONDCO: Fitch Places 'B+' LT IDR on Watch Positive
---------------------------------------------------------
Fitch Ratings has placed Synlab Bondco Plc's Long-Term Issuer
Default Rating (IDR) of 'B+' on Rating Watch Positive (RWP). Fitch
has also upgraded its senior secured debt rating to 'BB'/RR2 from
'BB-'/RR3 and placed it on RWP.

The RWP follows Synlab's announcement it will be pursuing an
initial public offering (IPO) at the end of April leading to a debt
reduction estimated at around EUR400 million using IPO proceeds.
After successful completion of the IPO, Fitch projects
significantly improved credit metrics with funds from operations
(FFO) adjusted leverage declining to below 4.0x from 5.2x in 2020
and FFO Fixed Charge Cover strengthening towards 5.0x from 3.3x
last year. Together with Fitch's estimate of strong free cash flow
(FCF) and margins given a robust organic performance, further
boosted by Covid-19-related incremental sales, Synlab's credit
profile will likely be consistent with an IDR well positioned in
the 'BB' category.

The upgrade of the senior secured debt follows Fitch's revised
estimated post-restructuring EBITDA incorporating a higher
contribution from Covid-19-related testing activity, which will
remain a meaningful earnings contributor in the medium term, albeit
with declining volumes and prices, as well as new contracts signed
and continuing EBITDA-accretive M&A activity.

KEY RATING DRIVERS

Accelerated Deleveraging: Synlab's use of the IPO proceeds
(estimated at EUR400 million) to further reduce indebtedness will
significantly accelerate its deleveraging. This is expected to lead
to a reduction of FFO adjusted leverage to below 4.0x through to
2024 from 5.2x in 2020. The structurally improved financial risk
profile will strengthen Synlab's credit profile, supporting an
upgrade upon implementation of the IPO and debt repayment strategy.
The current debt reduction announcement will contribute to around
EUR1 billion of total debt prepayment in 2021.

Commitment to Conservative Financial Policy: The possible near-term
upgrade indicated by the RWP would be further supported by Synlab's
announced commitment to a more conservative financial policy. The
new leverage target of below 3.0x, which Fitch estimates would
equal FFO adjusted gross leverage of 4.5x-5.0x (4.0x-4.5x net)
based on Fitch-defined EBITDA and excluding the impact of IFRS 16,
would be commensurate with the 'BB' rating category.

An upgrade of up to two notches will be subject to the completion
of debt prepayment as announced, and further clarification on the
capital allocation strategy between reinvestments into the business
(M&A) and shareholder distributions.

Strengthening FCF: Fitch projects FCF margins of 7%-8% until 2024
on higher EBITDA, lower annual interest costs, and contained trade
working capital and capex requirements. These margins would be
strong, even if the IDR is upgraded to the 'BB' rating category.
Fitch expects moderate trade working capital outflows of EUR25
million-EUR30 million in the medium term and capital intensity at
4% in line with prior years.

Lower annual interest costs, following debt prepayments and
application of post-IPO margin ratchet for the existing term loan B
(TLB), will reduce estimated interest costs to around EUR40
million-EUR60 million from 2021 from around EUR120 million in 2020
(excluding IFRS 16-related lease interest expense).

Defensive Business Profile: Synlab's defensive business model, with
its infrastructure-like lab-testing services, offer resilient
earnings and sustained positive cash flows leading to moderate
business risk. Fitch also notes the sector's highly regulated
environment with high barriers to entry and the company's well
diversified footprint across geographies, limiting its exposure to
individual country regulation and scale-driven benefits within each
market. At the same time, the regulated nature of the lab-testing
services and persisting cost pressures limit the scope for organic
growth and profitability expansion.

Durable Benefit from Covid-19 Testing: Covid-19 testing accounted
for 30% of Synlab's 2020 sales. Fitch expects it will continue to
materially support its sales and EBITDA, albeit at a slower pace
from 2021 onwards with still strong volumes combined with a gradual
price reduction. Fitch expects demand for this testing service to
remain after 2021 despite the targeted herd immunisation levels of
60%-70% to be reached by mid-2021 in Europe.

Slow progress of the mass vaccination in the EU, where Synlab
generates most of its revenues, and the nature of the coronavirus
likely becoming a recurring infection akin to other seasonal viral
diseases, will require ongoing testing as a means of virus control
and prevention.

Regulation Affects Profits: Synlab operates in a regulated medical
market, which is subject to pricing and reimbursement pressures,
and in some jurisdictions such as France, under a tight price and
volume agreement between the national healthcare authorities, lab
testing groups and trade unions. The high social relevance of the
lab testing sector exposes the sector constituents such as Synlab
to increased risks of tightening regulations constraining the
companies' ability to maintain operating profitability and cash
flows. Fitch captures this risk in the ESG Relevance Score of '4'
for Exposure to Social Impact. This may have a negative impact on
Synlab's credit profile and is relevant to the rating in
conjunction with other factors.

DERIVATION SUMMARY

Synlab is the largest lab-testing company in Europe. Like other
sector peers, such as Laboratoire Eimer Selas (Biogroup, B/Stable)
and Inovie Group (B/Stable), Synlab benefits from a defensive and
stable business model given the infrastructure-like nature of
lab-testing services. This has been reinforced by the company's
performance during the pandemic. Fitch therefore projects that
Synlab will be able to generate consistently positive FCF,
supporting its 'B+' IDR.

Synlab's 'B+' IDR is also a factor of a more conservative financial
risk profile, following a recent debt prepayment from asset
disposal proceeds. With the announced further debt reduction using
IPO proceeds, the company's credit risk profile will further
strengthen with FFO adjusted leverage estimated to improve to 4.0x,
widening the gap with the lower-rated more aggressively levered
Biogroup and Inovie Group with FFO adjusted leverage at 8.0x and
7.0x, respectively.

KEY ASSUMPTIONS

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

-- Sales growth of 7% in 2021 supported by new contract wins and
    strong demand from Covid-19-related testing. In 2022-24, sales
    returning to low single-digit organic growth in key markets,
    supplemented by 3-4% M&A-led growth;

-- EBITDA margin (Fitch-defined, excluding IFRS 16) at 20.5% in
    2021, declining slightly to 19.5% in 2024;

-- EUR200 million of bolt-on acquisitions per year until 2024,
    funded by internal cash flows;

-- Enterprise value (EV)/EBITDA acquisition multiples of 10x;

-- Capex intensity at roughly 4% of sales in 2021-2024;

-- Strong free cash flow generation, with FCF margin of 12% in
    2021, followed by 7%-8% until 202;

-- Dividends based on a 20%-30% payout ratio of prior year's net
    profits payable from 2022.

Recovery Assumptions:

-- The recovery analysis assumes that Synlab would be reorganized
    as a going-concern (GC) in bankruptcy rather than liquidated
    given its asset-light operations.

-- Fitch assumes a 10% administrative claim.

-- Synlab's GC EBITDA of around EUR350 million takes additional
    earnings coming from Covid-19 testing into account as well as
    inorganic earnings from further bolt-on M&A, and additional
    contracts secured. This compares with Fitch's GC EBITDA of
    EUR315 million previously. Distress could come as a result of
    adverse regulatory changes, or an aggressive and poorly
    executed M&A strategy leading to an unsustainable capital
    structure.

-- A distressed EV/EBITDA multiple of 6.0x reflects Synlab's
    geographic breadth and scale as European lab-testing market
    leader with cash-generative operations. This compares with the
    EV/EBITDA multiple of 9x-11x for smaller targets that are
    being acquired in the sector.

-- Revolving credit facility (RCF) assumed to be fully drawn upon
    default ranking super senior, on enforcement, ahead of the
    senior secured debt.

-- The allocation of value in the liability waterfall results in
    a Recovery Rating 'RR1' for the super senior RCF (EUR250
    million) indicating a 'BB+' instrument rating with a
    waterfall-generated recovery computation (WGRC) of 100% based
    on current assumptions, and a Recovery Rating 'RR2' for the
    senior secured TLB and senior secured notes (EUR2.2 billion),
    leading to a 'BB' instrument rating with a WGRC of 76% (versus
    67% previously).

On completion of the IPO, if the existing debt is refinanced, Fitch
would withdraw the ratings for any redeemed facilities and assign
new instrument ratings for the post-IPO debt structure.

RATING SENSITIVITIES

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

-- Commitment to more conservative financial policy leading to
    FFO-adjusted gross leverage below 5.5x (net 5.0x) and FFO
    fixed-charge coverage above 4.0x;

-- Strong organic growth with increasing product and geographic
    diversification leading to EBITDA margins of above 19% (Fitch
    defined, excl. IFRS 16), FFO margins of at least 14% and post
    dividend FCF margins being in mid-to-high single digits.

Factor that could, individually or collectively, lead to negative
rating action/downgrade (removal of the RWP and Stable Outlook):

-- Abandoning the IPO and debt reduction strategy leading to FFO
    adjusted gross leverage remaining above 5.5x and FFO fixed
    charge cover below 2.5x.

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

-- Reduction in FCF margin to low single digits positive levels
    or large debt-funded and margin-dilutive M&A;

-- Absence of like-for-like sales growth or inability to extract
    synergies, integrate acquisitions or other operational
    challenges leading to EBITDA margin (Fitch defined, excluding
    IFRS 16) declining to below 18%;

-- FFO-adjusted gross leverage above 6.5x and FFO fixed-charge
    coverage below 2.0x.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: Synlab's liquidity position is comfortable
with projected Fitch-defined readily available year-end cash (net
of restricted cash of EUR30 million deemed to be required in daily
operations) of EUR400million-EUR500 million, further reinforced by
EUR200 million available under the committed RCF. Strong operating
performance with moderate working capital and capex should
facilitate high internal cash generation with FCF averaging EUR250
million through to 2024, which is sufficient to accommodate bolt-on
M&A of up to EUR200 million a year.

Synlab benefits from diversified sources of funding and a
long-dated debt maturity profile. Recent debt refinancings have
improved Synlab's debt maturity headroom with term loan and notes
due 2025-2027 and lowered its debt service requirements. On
completion of the IPO, Synlab will also gain access to equity
markets, which will further improve its funding options.

ESG CONSIDERATIONS

Synlab Bondco PLC: Exposure to Social Impacts is scored at '4'
given Synlab operates in a regulated market and increased risks of
tightening regulation constraining the company's ability to
maintain operating profitability and cash flows.

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

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

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

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