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

                          E U R O P E

          Wednesday, June 2, 2021, Vol. 22, No. 104

                           Headlines



G E R M A N Y

WIRECARD AG: EY Partners Worry Over Scandal Financial Hit


I R E L A N D

HAYFIN EMERALD CLO II: Fitch Assigns Final B- Rating on F-R Notes
HAYFIN EMERALD II: Moody's Assigns B3 Rating to Class F Notes


N E T H E R L A N D S

SCHOELLER PACKAGING: S&P Alters Outlook on 'B-' ICR to Stable


R U S S I A

BALTIC LEASING: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
EUROPLAN: Fitch Alters Outlook on 'BB' IDRs to Positive
NOVOROSSIYSK COMMERCIAL: S&P Upgrades ICR to 'BB+', Outlook Stable
SOVCOMBANK LEASING: Fitch Affirms 'BB+' LT IDRs, Outlook Stable


S P A I N

IM PASTOR 4: S&P Affirms 'B-' Rating on Class A Notes


T U R K E Y

ANADOLUBANK AS: Fitch Affirms 'B+' LT IDRs, Outlook Negative
FIBABANKA AS: Fitch Affirms 'B+' Foreign Currency IDR, Outlook Neg.
ODEA BANK: Fitch Affirms 'B' LongTerm IDRs, Outlook Negative
SEKERBANK: Fitch Affirms 'B-' Foreign Currency IDR, Outlook Neg.


U N I T E D   K I N G D O M

AMIGO LOANS: Insolvency Among Options After Losing Court Case
AMIGO LOANS: Moody's Puts Caa1 CFR on Review for Further Downgrade
CAFFE NERO: Files Accounts on Time, Vows to Meet Debt Covenants
LIBERTY STEEL: ArcelorMittal Eyes French Steel Plants
MARKET HALLS: Launches Company Voluntary Arrangement

PANI'S: Put Up for Sale After COVID-19 Pandemic Hits Finances

                           - - - - -


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G E R M A N Y
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WIRECARD AG: EY Partners Worry Over Scandal Financial Hit
---------------------------------------------------------
Michael O'Dwyer and Olaf Storbeck at The Financial Times report
that accountancy group EY is to centralise power in a new European
executive team, pooling resources across the region but raising
concern that any financial hit from the Wirecard scandal might also
be shared.

The overhaul breaks from the federated business model of the Big
Four firms in an attempt to cut management costs by half and will
authorise the central team to decide on partners' pay, the FT
relays, citing people briefed on the plan.

According to the FT, some partners fear the new structure may lead
to penalties related to Wirecard being shared beyond the German
team that handled the work.  EY audited the payments group for a
decade until it collapsed in a fraud scandal last year, the FT
recounts.

"French partners are going ballistic about it because they say 'why
should we pay now for the Wirecard mess?'," the FT quotes one
person close to the firm as saying.

Another person close to the matter said there was "not a lot of
transparency" on whether any financial hit from Wirecard-related
lawsuits or regulatory action would end up being shared by partners
in other countries, the FT notes.

However, a person at EY involved in the creation of the new
structure said such concerns were "unfounded", adding that separate
legal entities would be retained in each country, the FT discloses.
The Big Four have traditionally protected against liability
spreading across their global businesses by using separate
partnerships in each country where they operate, the FT says.

EY in February announced it was creating a new Europe West region,
without providing detail on the implications, the FT relays.  The
regional grouping, which includes 27,000 staff and US$4.7 billion
in annual revenues, will include Germany, France, the Netherlands,
Italy, Spain and 20 other western European and north African
countries and is scheduled for launching on July 1, according to
the FT.  It does not include the UK, Ireland or Scandinavia.




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I R E L A N D
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HAYFIN EMERALD CLO II: Fitch Assigns Final B- Rating on F-R Notes
-----------------------------------------------------------------
Fitch Ratings has assigned Hayfin Emerald CLO II DAC's refinancing
notes final ratings.

DEBT           RATING             PRIOR
----           ------             -----
Hayfin Emerald CLO II DAC

A-R     LT  AAAsf   New Rating   AAA(EXP)sf
B-1R    LT  AAsf    New Rating   AA(EXP)sf
B-2R    LT  AAsf    New Rating   AA(EXP)sf
C-1R    LT  Asf     New Rating   A(EXP)sf
C-2R    LT  Asf     New Rating   A(EXP)sf
D-R     LT  BBB-sf  New Rating   BBB-(EXP)sf
E-R     LT  BB-sf   New Rating   BB-(EXP)sf
F-R     LT  B-sf    New Rating   B-(EXP)sf
M-R     LT  NRsf    New Rating   NR(EXP)sf

TRANSACTION SUMMARY

Hayfin Emerald CLO II DAC is a securitisation of mainly senior
secured loans (at least 92.5%) with a component of senior
unsecured, mezzanine, and second-lien loans. The note proceeds have
been used to redeem existing notes except for the subordinated
notes and to fund the current portfolio with a target par of EUR400
million. The portfolio is managed by HayFin Capital Management LLP.
The CLO envisages a 4.25-year reinvestment period and an 8.5-year
weighted average life (WAL).

KEY RATING DRIVERS

Average Portfolio Credit Quality (Neutral): Fitch places the
average credit quality of obligors in the 'B' range. The
Fitch-weighted average rating factor (WARF) of the current
portfolio is 34.21.

Recovery Inconsistent with Criteria (Negative): Over 95% 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-calculated
weighted average recovery rate (WARR) of the portfolio based on
Fitch's current criteria is 62.64% and 64.82% under the
recovery-rate definition in the transaction documents.

As the recovery-rate provision does not reflect Fitch's latest
rating criteria, assets without a recovery estimate or recovery
rate by Fitch can map to a higher recovery rate than in Fitch's
current criteria. To factor in this difference, Fitch has applied a
stress on the break-even WARR of 1.5%, which is in line with the
average impact on the WARR of EMEA CLOs following Fitch's criteria
update.

Diversified Asset Portfolio (Positive): The indicative 10 largest
obligors' limit at 25% is higher than the top 10 obligors' exposure
at 18.5% 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 40.0%. These covenants ensure
that the asset portfolio will not be exposed to excessive
concentration.

Portfolio Management (Neutral): The transaction has a 4.25-year
reinvestment period and includes reinvestment criteria similar to
those of other European transactions. Fitch's analysis is based on
a stressed portfolio with the aim of testing the robustness of the
transaction structure against its covenants and portfolio
guidelines.

Model-Implied Ratings Deviation (Negative): The assigned ratings of
all classes are one notch above the model-implied rating (MIR). All
notes pass one notch below the assigned ratings based on the
stressed portfolio. The maximum default-rate shortfall at the
assigned ratings based on the stressed portfolio analysis is
-3.57%. However, Fitch has deviated from the MIRs due to the
transaction's steady performance, and the positive cushion across
the capital structure based on the current portfolio and the
coronavirus baseline scenario, except for the class E and class F
notes, which have a small shortfall.

The class F notes' deviation from the MIR also reflects Fitch's
view that the tranche displays a significant margin of safety given
available credit enhancement. The notes do not present a "real
possibility of default", which is the definition of 'CCC' in
Fitch's terminology.

Criteria Deviation (Negative): Fitch applied a criteria variation
and assigned a rating one notch above the MIR to the class E notes
due to the healthy performance of the CLO to date with a small
'CCC' bucket and the transaction being above target par on the
current portfolio. The current portfolio shows a small shortfall at
the assigned ratings, driven by back-loaded default timing and
rising interest-rate scenarios.

RATING SENSITIVITIES

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

-- A reduction of the rating default rate (RDR) at all rating
    levels by 25% of the mean RDR and a 25% increase of the
    recovery rate at all rating levels, would lead to a downgrade
    of up to five notches for the rated notes, except the class A
    R 'notes, which are already at the highest rating.

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

-- After the end of the reinvestment period, upgrades may occur
    in case of a better-than-initially expected portfolio credit
    quality and deal performance, leading to higher credit
    enhancement and excess spread available to cover for losses in
    the remaining portfolio.

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

-- An increase of RDR at all rating levels by 25% of the mean RDR
    and a 25% decrease of the recovery rate at all rating levels,
    would lead to a downgrade of up to five notches for the rated
    notes.

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

Coronavirus Baseline Scenario

Fitch recently updated its CLO coronavirus stress scenario to
assume half of the corporate exposure on Negative Outlook is
downgraded by one notch instead of 100% (floor at 'CCC'). All
ratings can withstand the coronavirus baseline sensitivity except
for the class E and F notes, which show shortfalls. However, Fitch
has assigned a Stable Outlook to all rated tranches due to the
healthy performance of the CLO to date with a small 'CCC' bucket
and the transaction being above target par on the current
portfolio. The shortfalls are small and mainly driven by a
back-loaded default-rate scenario, which is not an imminent risk.

Coronavirus Downside Scenario

The CLO coronavirus downside scenario assumes all corporate
exposure on Negative Outlook is downgraded by one notch (floor at
'CCC'). In this scenario, the class A to C notes' ratings will not
be affected while the class D to F notes will be one notch lower
than their current ratings.

BEST/WORST CASE RATING SCENARIO

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


HAYFIN EMERALD II: Moody's Assigns B3 Rating to Class F Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to refinancing notes issued by Hayfin
Emerald CLO II DAC (the "Issuer"):

EUR244,000,000 Class A Senior Secured Floating Rate Notes due
2034, Definitive Rating Assigned Aaa (sf)

EUR33,200,000 Class B-1 Senior Secured Floating Rate Notes due
2034, Definitive Rating Assigned Aa2 (sf)

EUR10,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2034,
Definitive Rating Assigned Aa2 (sf)

EUR14,800,000 Class C-1 Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned A2 (sf)

EUR10,000,000 Class C-2 Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned A2 (sf)

EUR26,800,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned Baa3 (sf)

EUR22,400,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned Ba3 (sf)

EUR10,800,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned B3 (sf)

RATINGS RATIONALE

The rationale for the ratings is based on a consideration of the
risks associated with the CLO's portfolio and structure as
described in Moody's methodology.

The Issuer issues the refinancing notes in connection with the
refinancing of the following classes of notes: Class A-1 Notes,
Class A-2 Notes, Class B-1 Notes, Class B-2 Notes, Class C Notes,
Class D Notes and Class E Notes due in 2032, (the "Original
Notes"). On the refinancing date, the Issuer uses the proceeds from
the issuance of the refinancing notes to redeem in full the
Original Notes.

In addition, the CLO will issue the Class M notes that, on each
payment date, will receive a Senior Class M Return Amount and a
Subordinated Class M Return Amount (0.15% and 0.35% respectively
per annum of the sum of the collateral principal amount plus the
aggregate qualifying loss mitigation obligation balance).

On the Original Closing Date, the Issuer also issued EUR25,400,000
Class S-1 Subordinated Notes due 2032, which are being refinanced,
and EUR26,500,000 Subordinated Notes due 2034, which will remain
outstanding and known as the subordinated notes. Additional
subordinated notes are also offered that, along with the existing
subordinated notes, will form a single class of subordinated notes.
The terms and conditions of the subordinated notes are amended in
accordance with the refinancing notes' conditions.

As part of this full refinancing, the Issuer will renew the
reinvestment period at four and a quarter years and extend the
weighted average life test to 8.5 years. It will also amend certain
concentration limits, definitions and minor features. In addition,
the Issuer amends the base matrix and modifiers that Moody's has
taken into account for the assignment of the definitive ratings.

The Issuer is a managed cash flow CLO. At least 92.5% of the
portfolio must consist of secured senior loans or senior secured
bonds and up to 7.5% of the portfolio may consist of unsecured
senior obligations, second-lien loans, high yield bonds and
mezzanine obligations. The underlying portfolio is expected to be
fully ramped as of the closing date.

Hayfin Emerald Management LLP ("Hayfin") will manage the CLO. It
will direct the selection, acquisition and disposition of
collateral on behalf of the Issuer and may engage in trading
activity, including discretionary trading, during the transaction's
four and a quarter year reinvestment period. Thereafter, subject to
certain restrictions, purchases are permitted using principal
proceeds from unscheduled principal payments and proceeds from
sales of credit risk obligations.

The transaction incorporates interest and par coverage tests which,
if triggered, divert interest and principal proceeds to pay down
the notes in order of seniority.

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 European corporate assets from a gradual and
unbalanced recovery in European 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.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
December 2020.

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

The rated notes' performance is subject to uncertainty. The notes'
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change. The collateral manager's investment decisions and
management of the transaction will also affect the notes'
performance.

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3 of
the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in December 2020.

Moody's used the following base-case modeling assumptions:

Par Amount: EUR400.0 million

Diversity Score: 46

Weighted Average Rating Factor (WARF): 3100

Weighted Average Spread (WAS): 3.76%

Weighted Average Recovery Rate (WARR): 44.5%

Weighted Average Life (WAL): 8.5 years




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N E T H E R L A N D S
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SCHOELLER PACKAGING: S&P Alters Outlook on 'B-' ICR to Stable
-------------------------------------------------------------
S&P Global Ratings revised its outlook on returnable plastic
packaging producer Schoeller Packaging B.V. to stable from
negative. At the same time, S&P affirmed its 'B-' long-term issuer
credit rating on Schoeller Packaging and its 'B-' issue rating on
its senior secured notes.

The stable outlook indicates S&P's expectation that Schoeller
Packaging's leverage will stay below 6.0x and its liquidity will
remain adequate in the coming 12 months, alongside negative or
limited FOCF generation.

Schoeller Packaging's performance was resilient in 2020 despite
market disruption due to the COVID-19 pandemic. Schoeller
Packaging's revenue growth of 3.1% and EBITDA margin of 12.6% were
above our expectations in 2020. The strong demand in the pooling
and retail markets, combined with sales growth in the beverage
market in Europe, offset the decline in the automotive business and
lower demand from the agricultural and industrial segments.
Improvements in pricing, a higher contribution to sales from more
profitable products, and good cost control, resulted in expansion
of the EBITDA margin. Schoeller Packaging generated EUR26 million
of FOCF in 2020, adjusting for a EUR6 million reduction in
factoring utilization. This was supported by lower expansionary
capex and a EUR7 million working capital inflow. Liquidity remained
adequate during the year, underpinned by funds from operations
(FFO), cash on hand, and limited debt amortization. Additionally,
the group repaid most of its utilization under the EUR30 million
revolving credit facility (RCF) during 2020.

S&P said, "We now forecast that Schoeller Packaging's EBITDA
margins will be close to 13% in 2022, leading to a reduction in
leverage.We have revised upward our EBITDA forecasts based on
Schoeller Packaging's margin expansion in 2020. We now believe that
the group's EBITDA margins will remain at least 12% in 2021, and
improve toward 13% in 2022. We expect that the group will continue
reaping the benefits of its operational improvement projects in the
coming years. However, we believe that higher extraordinary costs
and raw material price volatility will offset those gains in 2021.
In the medium term, we expect that the development of new business
lines will support a further improvement in profitability. We now
expect that leverage will remain below 6.0x during the next two
years.

"Reported FOCF will be negative in 2021, but will improve
thereafter. We do not expect the positive FOCF generation of 2020
to recur this year, mainly due to high expansionary capex. We
believe that this will result in negative FOCF of EUR3 million -
EUR5 million before changes in factoring. In our opinion, the
group's cash generation in 2022 will also depend on capex
deployment. That said, we forecast positive FOCF of EUR7
million-EUR12 million that year."

Schoeller Packaging's weak track record of cash generation
continues to cap the rating. Cash generation improved during 2020
and FOCF was positive and more material. However, the rating
remains constrained by the group's weak track record of positive
cash generation. S&P's forecast of minimal or negative FOCF in 2021
also limits our assessment.

S&P Global Ratings believes there remains high, albeit moderating,
uncertainty about the evolution of the coronavirus pandemic and its
economic effects. Vaccine production is ramping up and rollouts are
gathering pace around the world. Widespread immunization, which
will help pave the way for a return to more normal levels of social
and economic activity, looks to be achievable by most developed
economies by the end of the third quarter. However, some emerging
markets may only be able to achieve widespread immunization by
year-end or later. S&P said, "We use these assumptions about
vaccine timing in assessing the economic and credit implications
associated with the pandemic. As the situation evolves, we will
update our assumptions and estimates accordingly."

S&P said, "The stable outlook reflects our expectation that
Schoeller Packaging's leverage will stay below 6.0x and its
liquidity will remain adequate in the coming 12 months. The outlook
also reflects our forecast of limited or negative FOCF generation
in the same period.

"We could take a negative rating action if Schoeller Packaging's
operating performance weakened, resulting in sustained negative
cash flow generation or heightened liquidity pressure.

"We could take a positive rating action if Schoeller Packaging were
to generate positive and material FOCF on a sustained basis. This
could stem from improvements in the group's operating performance
and a reduction in expansionary capex."




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R U S S I A
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BALTIC LEASING: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Baltic Leasing (BaltLease) at Long-Term
Issuer Default Rating (IDR) 'BB' with Stable Outlook.

The ratings of BaltLease reflect both its standalone
creditworthiness and Fitch's assessment of the ability and
propensity of BaltLease's shareholder, PJSC Bank Otkritie Financial
Corporation (Bank Otkritie), which acquired control of BaltLease in
January 2019, to provide support to its subsidiary.

KEY RATING DRIVERS

BaltLease's standalone assessment reflects a long record of healthy
performance in an often challenging operating environment and
frequent shareholder changes, a tested business model, healthy
profitability, contained credit losses underpinned by a sound
underwriting and collection function, as well as high leverage
relative to peers'.

Fitch's view of the ability of Bank Otkritie to support is
underpinned by its state ownership (fully owned by the Central Bank
of Russia). Fitch sees a moderate probability of support from the
Russian government (BBB/Stable) for Bank Otkritie in case of need.
Given BaltLease's small size compared with Bank Otkritie's (1.9% of
the bank's consolidated assets at end-2020), Fitch believes that
any sovereign support extended to Bank Otkritie would likely also
be available to BaltLease, if needed, as the authorities would have
few incentives to restrict support from Bank Otkritie to
BaltLease.

Bank Otkritie's propensity to support is underpinned by the bank's
majority 99.5% ownership of BaltLease and significant volume of
funding provided by the bank (97% of BaltLease's bank funding at
end-1Q21). However, currently limited, albeit growing, integration
between BaltLease and Bank Otkritie, and different branding may
constrain Bank Otkritie's propensity to support.

The parent bank has provided Baltlease long-term and unsecured
funding, but also up-streamed significant dividends (96% of 2020
net profit), increasing the subsidiary's leverage from historical
levels. Gross debt/tangible equity was 5x at end-1Q21 (end-2018:
3.6x), while net debt/equity was 4.9x and has not exceeded
management's aim to maintain it at no more than 5x.

Risks to the standalone performance are partly balanced by a
granular portfolio with modest credit and market risks and sound
profitability. Fitch expects Bank Otkritie to provide liquidity or
capital support if needed.

BaltLease's portfolio is fairly diversified by asset type and
borrower - the 10-largest customers accounted for 3.3% of the lease
book at end-1Q21. Fitch estimates that higher-risk non-standard or
non-movable assets accounted for 26% of the lease book, while
assets with lower residual value risk - cars, commercial vehicles
and trucks - represented 74% of the book at end-2020.

Sound underwriting standards and an effective collection function
have resulted in limited credit losses at below 1%. Impaired assets
ratio was 1.2% (provisioned at 74%) at end-1Q21. Its lease
portfolio in 2020 continued to grow at historical levels (24%)
despite the pandemic and tightened risk policies.

Low penetration of leasing in Russia and depreciation of the rouble
supported car sales as some borrowers hastened purchases in
anticipation of price increases. Sound down-payments, value
inflation of leased assets and the short-term nature of the
portfolio (55% matures within a year) limit seasoning risks.

BaltLease's established franchise with a wide network of own
branches across the country and focus on SMEs result in healthy
profitability. Net interest margin remained healthy at over 10% and
return on average assets was 4.6% (28% on average equity), despite
historically low interest rates in Russia in 2020. Cost of risk
remained below 1%.

Access to parent funding, well-matched tenors of assets and
liabilities and the short-term nature of the lease book mitigate
refinancing and liquidity risks. Most funding (97%) is unsecured,
resulting in unencumbered assets and the equalisation of
BaltLease's unsecured debt rating with the Long-Term IDR.

RATING SENSITIVITIES

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

-- An upgrade of the Russian sovereign rating.

-- Increasing integration within Bank Otkritie or evidence that
    BaltLease is becoming more core to Otkritie's overall business
    model and strategy.

-- Upside to the standalone profile is limited in the short- to
    medium-term but would benefit from a combination of an
    improved company profile and financial metrics, in particular
    leverage and funding profiles.

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

-- Negative rating action on Russia coupled with weakening
    standalone performance of BaltLease.

-- Negative developments in the willingness of the Russian
    authorities to support Bank Otkritie such as materially
    reduced ownership, which is not expected in the near term,
    coupled with weakening standalone performance of BaltLease.

-- Reduced ownership of BaltLease by Bank Otkritie coupled with
    weakening standalone performance of BaltLease.

-- The senior debt rating of BaltLease will move in tandem with
    its Long-Term IDR.

BEST/WORST CASE RATING SCENARIO

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

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Baltic Leasing's ratings are linked to Russia's sovereign ratings.

ESG CONSIDERATIONS

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


EUROPLAN: Fitch Alters Outlook on 'BB' IDRs to Positive
-------------------------------------------------------
Fitch Ratings has revised Russia-domiciled Joint Stock Company
Leasing company Europlan's Outlook to Positive from Stable while
affirming the Long-Term Issuer Default Ratings (IDRs) at 'BB'.

The Outlook revision of Europlan primarily reflects Fitch's
expectations that the continued resilience of its business model
amid a still challenging operating environment, further
strengthening of its niche franchise in domestic auto leasing and
improvements in its corporate governance could lead to a one-notch
upgrade.

KEY RATING DRIVERS

As a market leader in domestic auto leasing, Europlan benefits from
a strong franchise in its niche, which is narrow relative to the
overall financial sector. However, the ratings also consider the
monoline nature of Europlan's business model, principally focussed
on finance leasing to SMEs, as well as concentration by geography
(operating solely in Russia), moderate size (by asset and capital)
compared with higher-rated peers', and corporate governance
constraints that are common for many privately-owned companies.

Europlan managed to further strengthen its market position amid the
pandemic with above-average growth in 2020 while maintaining solid
financial performance and risk controls. Performance in 2020 was
also supported by a stabilisation of the operating environment in
the second half of the year a reversal of this trend could put
pressure on the company's asset quality and constrain growth and
profitability. However, Fitch expects Europlan to perform
resiliently even in a more difficult operating environment as
evident in 1H20.

Europlan's historically strong asset quality was also resilient
during the pandemic. Due to rapid growth in 2020 a sizable portion
of the lease book has yet to season, although this risk is
mitigated by monthly repayment and low loan-to-value (LTV) on core
lease products. Fitch therefore expects that the company will keep
credit costs under control in the medium term.

Down payments averaging 21%, vehicle discounts, good liquidity of
underlying assets and a record of swift and efficient workout
support Fitch's assessment of Europlan's asset quality.
Pre-impairment profit was a strong 10% of the average lease book in
2020, providing a solid buffer against potential increases in
impairment charges.

Europlan maintained very strong profitability in 2020 (with a
return on average assets around 7%) and across the economic cycle
(6% on average in 2015-2020). Fitch expects profitability to
moderate due largely to ongoing margin compression. However, solid
growth in commission income in recent years has underpinned
Europlan's profitability and contributes towards revenue
diversification. Commission income covered around half of
operational expenses in 2020. Impairment charges absorbed a modest
3% of operational profit in 2020 and 2019.

While Europlan's growth ambitions put pressure on leverage, this is
mitigated by historically healthy internal capital generation and a
balanced dividend pay-out ratio. Leverage (defined as gross
debt-to-tangible equity) increased only gradually to 4.4x at
end-2020 from 3.5x at end-2017. Fitch expects the company's
leverage to stabilise at around 4.5x, in line with management's
target.

Europlan is wholesale-funded, predominantly by Russian banks, while
local bonds contributed 31% of end-2020 borrowings. Refinancing
risk is limited, mitigated by a record of continued market access,
including in stressed environments, and by the short tenor of the
lease book, which largely matches Europlan's funding maturities. A
debt amortisation schedule with no significant quarterly spikes
matches the company's asset duration.

ESG - Group Structure

Europlan has an ESG Relevance Score of '4' for group structure
stemming from its ownership by Safmar FI Holding and, ultimately,
by the Gutseriev family. Europlan reports no meaningful credit
exposure to related parties and its policy limits dividend pay-out
at 100%. The latter remained below 50% in 2018-2020 but Fitch sees
risks of the parent leveraging Europlan as it seeks cash to settle
obligations with the Central Bank of Russia.

RATING SENSITIVITIES

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

-- An upgrade of Europlan's ratings would require a continued
    record of franchise strengthening and resilience of its
    business model to external shocks, assuming it maintains solid
    financial metrics, notably profitability and leverage.
    Improvements in corporate governance addressing, among others,
    key person risks, dividend predictability and board oversight
    would also be positive for Fitch's assessment.

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

-- A significant weakening of the company's performance, for
    instance, due to higher impairment charges as its lease book
    matures, or lower net interest margin, as well as an increase
    in leverage notably above management target of 4.5x would lead
    to revision of the Outlook back to Stable. Shareholder
    intervention, leading to an increased risk appetite or weaker
    quality of Europlan's capital, would also lead to an Outlook
    revision to Stable.

-- A sharp increase in Europlan's leverage to above 5.5x as a
    result of aggressive shareholder distribution, outsized
    growth, net losses or a combination of the above factors would
    trigger a downgrade.

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

Europlan has an ESG Relevance Score of '4' for Group Structure as
its ownership by Safmar FI Holding, results in lower visibility
over shareholder distribution, which has a negative impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.

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


NOVOROSSIYSK COMMERCIAL: S&P Upgrades ICR to 'BB+', Outlook Stable
------------------------------------------------------------------
S&P Global Ratings raised its stand-alone credit assessment on
Russian port operator Novorossiysk Commercial Sea Port PJSC (NCSP)
to 'bb' from 'bb-' and raised its rating on NCSP to 'BB+' from
'BB'. The rating includes one notch for potential parent support as
a moderately strategic subsidiary to Transneft.

S&P said, "The stable outlook reflects that we expect NCSP to
maintain its solid credit metrics in the next two-to-three years
despite the approved debt-funded intensive investment, and that it
will preserve resilient profitability and at least adequate
liquidity.

"We expect cargo volumes to recover in 2021 following a weak second
half of 2020, thanks to rising demand, as economic activity has
picked up and oil prices reached pre-pandemic levels. Challenging
commodity markets and oil price cuts hit NCSP's cargo volumes in
the second half (2H) of 2020. Total cargo volumes in 2020 were 111
million tons, down 21% from 2019, including a 23% drop in crude oil
which, alongside pandemic-related challenges, shrank EBITDA to $416
million from $629 million in 2019. Given OPEC+'s positive decision
to increase production, and considering the supportive oil prices,
we expect crude oil volumes to recover in 2021. NCSP's first
quarter (Q1) 2021 turnover was weaker than that reported in Q1 2020
due to adverse weather conditions. However, for full-year 2021 we
expect broadly flat liquid and dry cargo volumes compared with
2020.

"We believe NCSP will retain healthy metrics, with FFO to debt
above 30% in the next two-to-three years and strong profitability,
thanks to the weaker ruble and expected recovery in cargo volumes.
Despite the drop in volumes in 2020, NCSP's cash flow debt coverage
metrics remained strong, with FFO to debt of 47%. This was thanks
to solid financial headroom, including cash proceeds from the sale
of a grain terminal in 2019; high profitability; and capital
expenditure (capex) flexibility. In our base case, we expect the
approved investment program of about RUB100 billion ($1.3
billion)--for technical upgrades and new projects in 2021-2029--to
be funded by a mix of internal cash flows and external borrowings.
Nevertheless, the company will likely maintain strong metrics, with
debt to EBITDA of 1.5x-2.0x in 2021, slowly rising to 2.0x-2.3x by
the end of 2023 (1.6x in 2020). We see these metrics as
commensurate with our 'bb' SACP.

"We expect NCSP's profitability to remain strong, supported by U.S.
dollar-denominated tariffs and the weaker ruble.About 70% of the
port's revenue is linked to dollars, while the weakening ruble
allows the company to keep costs low in dollar terms, supporting
NCSP's strong margins. We assume that discounts offered to shippers
from 2020 could boost handling volumes, while the hit to margins is
partially offset by the weaker ruble. With EBITDA margins of about
60%-65% (after 73% in 2019 and 66% in 2020), we view NCSP's
absolute profitability as above average compared with global
infrastructure peers."

NCSP's financial policy carries uncertainty as the company is
looking for a new project to diversify future cargo operations and
boost operating cash flows. S&P said, "In the base case, we expect
the approved RUB100 billion investment program to be funded by a
mix of internal cash flows and external borrowings. We anticipate
that dividends to Transneft will remain moderately high, equivalent
to at least 50% of net income despite intensive capex. We view
Transneft's financial policy as sufficiently prudent in maintaining
moderate leverage, solid liquidity, and modest capex at the group
level. Still, we understand that NCSP is looking for opportunities
to diversify beyond crude oil handling, which currently accounts
for about half of the port's total volumes, and boost
profitability. If NCSP committed to a new large-scale project or
acquisition, we would need to assess the effect on the company's
business prospects and metrics."

S&P said, "We view NCSP as a moderately strategic subsidiary of
Transneft and therefore incorporate a one-notch uplift in the
long-term rating.NCSP's oil terminals in Novorossiysk and Primorsk
represent a natural extension of Transneft's core oil pipeline
business. Although NCSP only represented about 7% of the group's
consolidated EBITDA in 2020, we believe that Transneft considers
these assets' operational stability as important to its core
business of pipeline transportation for oil exports. We also
recognize that Transneft only gained majority control of NCSP in
late 2018, and NCSP's operations and financials remain relatively
autonomous.

"The stable outlook reflects our expectation that NCSP will
maintain its solid credit metrics, with FFO to debt above 30% over
the next two-to-three years, despite the approved intensive
investments to be partially funded by new debt. We also expect the
company to preserve resilient profitability with an adjusted EBITDA
margin of about 63%-65%."

Large approved investments, relatively high dividends, and the
limited ability of the port to cover these needs from internally
generated cash flows remain key rating constraints. In S&P's base
case, it only includes the approved investments agreed with
Transneft.

If NCSP decides to pursue opportunities outside the approved
budget, S&P will need to assess their effect on the company's
business prospects and the metrics in conjunction with NCSP's
financial policy and strategy at the time.

S&P expects NCSP to maintain adequate liquidity and comply with
covenants.

S&P could lower the rating on NCSP if:

-- S&P expected the company's operating performance to deteriorate
materially beyond its current forecast. This could stem from a
meaningful decline in the group's cargo turnover, negative tariff
revisions, or as a result of fines, and lead to higher leverage,
with FFO to debt falling below 30%.

-- The company's liquidity position weakened due to less cash
being available for debt repayment and no availability under
committed lines.

-- A downgrade of the parent (Transneft; long-term foreign
currency rating: BBB-; local currency: BBB) by one notch would not
automatically leads S&P to downgrade NCSP. That said, it would need
to review the parents' ability and willingness to support NCSP.

S&P is unlikely to take a positive rating action NCSP, given the
anticipated investments to be partially funded by new debt in the
coming years.


SOVCOMBANK LEASING: Fitch Affirms 'BB+' LT IDRs, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Sovcombank Leasing LLC's (SCBL)
Long-Term Issuer Default Ratings (IDRs) at 'BB+' with a Stable
Outlook.

KEY RATING DRIVERS

SCBL's ratings are driven by a moderate probability of support from
its ultimate shareholder, PJSC Sovcombank (SCB, BB+/Stable/bb+).
SCBL's ratings are equalised with the parent's, reflecting the
company's strategic role, full ownership by SCB, common branding
and integration within the group, as well as significant financial
and reputational risk for the parent in case of subsidiary's
default.

This is in addition to close SCBL's supervision by SCB's
management, sizable parent funding (around 16% of SCBL's borrowings
at end-1Q21), as well as SCBL's record of strong performance in
auto leasing. In Fitch's view, SCBL's small size relative to SCB's
(less than 1% of assets) makes potential further support manageable
for the shareholder. The parent recently injected capital of RUB0.6
billion in 1Q21 (5% of SCBL's assets) to support SCBL's growth
strategy.

Fitch believes the additional pandemic-related pressures on SCBL's
standalone profile have to a large extent receded. Problem
receivables stood at 4% at end-2020, with restructured leases at
around 9% at end-1Q21. Fitch believes asset quality may worsen, as
the portfolio seasons, given the rapid expansion in 2020.
Profitability was affected by a hike in provisions in 2020, with
return on average equity decreasing to 29% (2019: 42%). This
improved to 34% in 1Q21 (annualised) as provisions were partially
reversed.

Full profit retention and recent equity injection has helped
improve leverage, with debt/tangible equity at 3.2x at end-1Q21
(4.2x at end-2020). In Fitch's view, leverage could increase to
around 4.5x by end-2021, given the company's ambitious growth
plans. SCBL's funding is mostly sourced from the local bond market
(79% of total borrowings at end-1Q21), with the rest the parent's
and other banks' funding. Fitch expects SCB to provide both capital
and funding support when needed.

The Support Rating at '3' reflects a moderate probability of
external support from SCB.

RATING SENSITIVITIES

SCBL's ratings are linked to and will therefore move in tandem with
SCB's IDRs.

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

-- A weakening of SCB's propensity to support SCBL, triggered,
    for example, by reduced strategic importance, weaker
    integration, reduced ownership and a prolonged period of weak
    performance.

-- A downgrade of SCB's ratings would result in a corresponding
    downgrade of SCBL's ratings.

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

-- An upgrade of SCB's IDRs, although this is currently unlikely,
    given the Stable Outlook on SCB's ratings and the bank's still
    moderate franchise.

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.




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

IM PASTOR 4: S&P Affirms 'B-' Rating on Class A Notes
-----------------------------------------------------
S&P Global Ratings affirmed its 'B- (sf)' credit rating on IM
PASTOR 4, Fondo de Titulizacion de Activos' class A notes, its
'CCC- (sf)' ratings on the class B and C notes, and its 'D (sf)'
rating on the class D notes.

The affirmations follow the implementation of our revised criteria
and assumptions for assessing pools of Spanish residential loans.
They also reflect our full analysis of the most recent information
that we have received and the transaction's current structural
features.

S&P said, "Upon revising our Spanish RMBS criteria, we placed our
rating on the class A notes under criteria observation. Following
our review of the transaction's performance and the application of
our updated criteria for rating Spanish RMBS transactions, the
rating is no longer under criteria observation.

"Our weighted-average foreclosure frequency (WAFF) assumption at
the 'AAA' level has decreased due to the calculation of the
effective loan-to-value (LTV) ratio, which is based on 80% original
LTV (OLTV) and 20% current LTV (CLTV). Under our previous criteria,
we used only the OLTV. Our 'AAA' WAFF assumption also declined
because of the transaction's decrease in arrears. Under our revised
we criteria, we apply a penalty for geographical concentration only
to the excess above the threshold, as opposed to the whole
percentage previously. This benefits the transaction, which has
regional concentrations in Galicia that exceed the limits stated in
our criteria. We also revised our base foreclosure frequency at the
'B' level to 2.5% from 2.0% for Spanish RMBS transactions in May
2020. Our weighted-average loss severity (WALS) assumptions have
decreased at all levels due to the lower CLTV and lower market
value declines. The reduction in our WALS is partially offset by
the increase in our foreclosure cost assumptions."

  Table 1

  Credit Analysis Results

  RATING   WAFF (%)  WALS (%)   CREDIT COVERAGE (%)
  AAA       8.89      3.81       0.34
  AA        6.24      2.31       0.14
  A         4.91      2.00       0.10
  BBB       3.86      2.00       0.08

  BB        2.75      2.00       0.06
  B         1.98      2.00       0.04

  WAFF--Weighted-average foreclosure frequency.
  WALS--Weighted-average loss severity.

Loan-level arrears decreased since 2018 and now stand at 1.39%.
Overall delinquencies are below our Spanish RMBS index.

Cumulative defaults, defined as loans in arrears for a period equal
to or greater than 12 months, represent 10.5% of the closing pool
balance. The class D notes' interest deferral trigger was breached
in December 2013.

S&P's analysis also considers the transaction's sensitivity to the
potential repercussions of the coronavirus outbreak. As of the
February 2021 interest payment date (IPD), there are no loans on
payment holiday under the Spanish moratorium schemes.

S&P's operational, sovereign, and legal risk analyses remain
unchanged since its previous review. Therefore, the ratings
assigned are not capped by any of these criteria.

The servicer, Banco Santander S.A., has a standardized, integrated,
and centralized servicing platform. It is a servicer for many
Spanish RMBS transactions.

The swap counterparty is CECABANK S.A. Considering that CECABANK
failed to replace itself in the past, and given our weak collateral
assessment, the maximum rating the notes can achieve in this
transaction is 'BBB+ (sf)', the issuer credit rating on the swap
counterparty, unless S&P delinks its ratings on this transaction
from the counterparty.

Given that the reserve fund has been fully depleted since 2009, and
that the transaction is undercollateralized by EUR36.9 million, the
available credit enhancement is nil for the class A, B, C, and D
notes. The notes amortize sequentially.

S&P said, "We have affirmed our 'B- (sf)' rating on the class A
notes. Under our cash flow analysis, this class does not pass the
stresses we apply at the 'B' rating. Assuming a recovery rate of
23% (corresponding to the observed cumulative recovery rate from
the previous IPD), and giving credit to delinquent and defaulted
loans--which might generate some recoveries--the transaction is
materially less undercollateralized. In addition, the combined
waterfall mitigates liquidity risk for the class A notes.
Therefore, we consider that interest and principal payment on the
class A notes is not dependent on favorable business, financial,
and economic conditions. We have therefore affirmed our 'B- (sf)'
rating on this class of notes.

"The class B and C notes do not pass our 'B' rating stresses
either. Considering their overall position in the waterfall, we
believe that the payment of interest and principal depends on
favorable business, financial, and economic conditions. We do not
expect a default to be a virtual certainty. We have therefore
affirmed our 'CCC- (sf)' ratings on these classes of notes.

"The class D notes do not pass the 'B' rating stresses in our
cashflow analysis. Additionally, the class D notes' interest
deferral trigger was breached in March 2014, resulting in missed
interest payments due to a lack of liquidity in the transaction. An
interest rate increase on the notes (triggered by a rise in the
EURIBOR three-month index) would put pressure on the class D notes
given their junior position in the waterfall. Also, credit
enhancement for this class of notes has decreased since our
previous full review. We have affirmed our 'D (sf)' rating on the
class D notes."

S&P Global Ratings believes there remains high, albeit moderating,
uncertainty about the evolution of the coronavirus pandemic and its
economic effects. Vaccine production is ramping up and rollouts are
gathering pace around the world. Widespread immunization, which
will help pave the way for a return to more normal levels of social
and economic activity, looks to be achievable by most developed
economies by the end of the third quarter. However, some emerging
markets may only be able to achieve widespread immunization by
year-end or later. S&P said, "We use these assumptions about
vaccine timing in assessing the economic and credit implications
associated with the pandemic. As the situation evolves, we will
update our assumptions and estimates accordingly."




===========
T U R K E Y
===========

ANADOLUBANK AS: Fitch Affirms 'B+' LT IDRs, Outlook Negative
------------------------------------------------------------
Fitch Ratings has affirmed Anadolubank A.S.'s Long-Term Issuer
Default Ratings (IDRs) at 'B+' with Negative Outlook, and Viability
Rating (VR) at 'b+'.

KEY RATING DRIVERS

IDRS, VR AND NATIONAL RATING

Anadolubank's IDRs are driven by its standalone creditworthiness,
as reflected by its VR. This considers the bank's limited
franchise, concentration in the volatile Turkish operating
environment and high asset quality risks. However, it also
considers Anadolubank's resilient and sound profitability,
underpinned by its largely short-term balance sheet and operations
and ensuing ability to adapt swiftly to changing market conditions,
adequate capitalisation and limited refinancing risk, given its low
foreign currency (FC) wholesale funding exposure.

Anadolubank's 'B+' Long-Term Foreign-Currency IDR is rated in line
with Turkey's largest, domestically systemically important banks
despite its small size, limited franchise and lack of pricing
power.

The Negative Outlook on the bank reflects downside risks to its
credit profile from operating environment pressures given the
implications for its financial profile.

The recent replacement of the Turkish Central Bank (CBRT) governor
and ensuing damage to monetary policy credibility and investor
sentiment - as evidenced by renewed market volatility and lira
depreciation - increase funding and liquidity risks for banks, as
does high and increased deposit dollarisation. Furthermore, ongoing
uncertainty over the pandemic, particularly given the latest
resurgence and lockdown restrictions, heighten downside risks both
to Fitch's GDP forecast of 6.7% in 2021 and Anadolubank's asset
quality and earnings.

Anadolubank has shifted its strategy in recent years in response to
market volatility, taking an opportunistic approach and focusing
more actively on lower risk corporates (46% of loans) than SMEs
(36%), which are highly sensitive to the growth outlook. Its focus
is on short-term Turkish lira working capital loans.

The bank has small market shares (end-2020: 0.4% of sector assets),
resulting in limited competitive advantages. However, it has a high
share of floating-rate assets and liabilities, which facilitates
swift balance sheet adjustments and loan book repricing amid
Turkey's volatile macroeconomic environment. This has underpinned
Anadolubank's resilient profitability through the cycle.

Anadolubank's operations are concentrated in Turkey, but it also
has a self-funded Dutch subsidiary (Anadolubank N.V.; equal to 16%
of consolidated assets), which brings limited diversification to
operations.

The bank's profitability remained resilient in 2020 (operating
profit/risk-weighted assets (RWAs): 2.2%; sector: 1.9%) despite the
pandemic fallout, margin compression (net interest margin (NIM):
3.1%; 2019: 5.9%) resulting from the sharp lira rates cuts in 1H20,
and a lack of economies of scale (cost/average assets ratio of 2%;
sector: 1.8%). However, profitability was supported by trading
gains (equal to 10.8% of operating profit) and the release of
provisions raised pre-pandemic (2020: loan impairment charges
(LICs)/pre-impairment operating profit of negative 7.2%; 2019:
34%).

Fitch expects profitability to be moderately weaker in 2021 given
lower trading revenue and higher LICs (as reversals lessen),
somewhat offset by an improvement in the NIM as loans reprice in
the higher lira rate environment.

Anadolubank's non-performing loans (NPL) ratio improved to 7.2% at
end-2020 (sector: 4.1%), from a peak of 9% at end-2019, and
included no impact from forbearance on loan classification. Stage 2
loans were a moderate 6.2% of gross loans at end-2020, below the
peer average of around 11%. Fitch expects asset quality metrics to
stabilise in 2021, despite waning government stimulus and the
higher lira interest rate environment, given Anadolubank's minimal
deferred loans (under 0.1% of loans), limited Stage 2 loans and its
increased focus since 2019 on the more resilient corporate
segment.

Anadolubank's capitalisation is adequate. Its regulatory capital
ratios (end-2020: common equity Tier 1 (CET1) ratio of 14.2%;
including 131bp forbearance uplift) significantly outperform peers,
although its CET1 ratio is likely to fall to 12%-13% by end-2021
due to RWA growth and waning forbearance. Capitalisation is
supported by moderate pre-impairment operating profit, equal to
2.8% of average loans in 2020 (2019: 5.3%), which provides a buffer
to absorb losses through the income statement, and moderate
reserves coverage of NPLs (end-2020: unreserved NPLs/CET1 ratio of
12.6%; end-2019: 17.1%).

Anadolubank's loans/deposits ratio (95% at end-2020) significantly
outperforms the sector average (108%). Customer deposits (end-2020:
76% of total funding) are fairly granular, but FC deposits are high
(52% of deposits), although below the sector average. Refinancing
risks are manageable given the bank's limited FC wholesale funding
(end-2020: 6% of total funding, largely sourced by Anadolubank
N.V.) and sufficient FC liquidity to cover its FC debt due within
one year. However, FC liquidity could come under pressure in case
of deposit instability and potentially also prolonged market
closure.

NATIONAL RATING

The affirmation of the National Rating reflects Fitch's view that
Anadolubank's creditworthiness in local currency relative to other
Turkish issuers has not changed.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating (SR) of '5' and Support Rating Floor (SRF) of
'No Floor' reflect Fitch's view that support cannot be relied upon
from either the Turkish authorities, due to the bank's small size
and limited systemic importance, or from the bank's shareholder.

RATING SENSITIVITIES

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

-- The bank's IDRs and National Rating are primarily sensitive to
    its VR. The VR could be downgraded due to a marked
    deterioration in the operating environment, as reflected in
    adverse changes to the lira exchange rate, market sentiment
    and economic growth prospects, or if economic recovery was not
    as swift as currently expected by Fitch.

-- In addition, a greater-than-expected weakening in asset
    quality or a material weakening in profitability that erodes
    capitalisation could be negative for the VR. A severe erosion
    of FC liquidity, most likely resulting from deposit
    instability, could also lead to a downgrade.

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

-- Upside for the bank's ratings is limited in the near term
    given the Negative Outlook. The Outlook could be revised to
    Stable in case of sustained market and economic stability,
    particularly if this reduces risks to the bank's performance,
    capitalisation, funding and liquidity and supports an
    improvement in underlying asset quality.

NATIONAL RATING

The National Rating is sensitive to changes in Anadolubank's
Long-Term Local-Currency IDR and its creditworthiness relative to
other Turkish issuers.

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.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch has made an adjustment in its financial spreadsheets of
Anadolubank that has had an impact on the core and complimentary
metrics. Fitch reclassified a loan to gross loans from financial
assets measured at fair value through profit-and-loss in the bank's
financial statements as Fitch believes this is the most appropriate
line in Fitch's spreadsheets to reflect this exposure.

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.


FIBABANKA AS: Fitch Affirms 'B+' Foreign Currency IDR, Outlook Neg.
-------------------------------------------------------------------
Fitch Ratings has affirmed Fibabanka A.S.'s (Fiba) Long-Term
Foreign Currency Issuer Default Rating (IDR) at 'B+' with a
Negative Outlook and Viability Rating (VR) at 'b'.

The affirmation of the Long-Term Foreign Currency IDR at one notch
above the VR reflects Fitch's view that the bank's qualifying
junior debt buffer will be maintained above 10% of risk-weighted
assets (RWA) in the short term.

KEY RATING DRIVERS

IDRS, SENIOR DEBT AND VR

Fiba's Long-Term IDRs and long-term senior debt are rated one-notch
above the bank's VR, due to the large buffer of qualifying junior
debt (QJD), in the form of additional Tier 1 (AT1) and other
subordinated debt instruments. This buffer was equivalent to 10.6%
of RWA at end-1Q21 (10.1% excluding regulatory forbearance) and
would protect senior creditors in case of the bank's failure,
including due to a capital shortfall. The size of the bank's QJD
buffer relative to RWA is positively correlated with a weaker lira,
as nearly all of the QJD comprises US dollar instruments.

Fitch expects Fiba's QJD buffer to remain only slightly above 10%
in the short term, given targeted loan growth of 16% in 2021 (1Q21:
5%, actual), only moderate uplift from regulatory forbearance
(expected to cease at end-1H21) and Fitch's expectation of further
lira depreciation. However, Fitch sees a significant risk that the
QJD buffer could fall below 10% of RWA over the medium term, and
this partly drives the Negative Outlook on Fiba's Long-Term IDRs.
This is due to potential higher-than-expected growth and lira
appreciation but also depends on the nature and timing of potential
capital-strengthening measures.

The Negative Outlook on Fiba's IDRs also reflects downside risks to
its credit profile from operating environment pressures given the
implications for its financial metrics. The recent replacement of
the Turkish Central Bank (CBRT) governor and ensuing damage to
monetary policy credibility and investor sentiment - as evidenced
by renewed market volatility and lira depreciation - increase
funding and liquidity risks, as does high, increased deposit
dollarisation. Furthermore, ongoing uncertainty over the pandemic,
particularly given the latest resurgence and lockdown restrictions,
create downside risks to both Fitch's GDP forecast of 6.7% in 2021
and Fiba's asset quality.

The affirmation of Fiba's VR reflects its small franchise
(end-2020: 0.5% of sector loans and deposits) and limited
competitive advantages in the volatile Turkish operating
environment, high asset quality risks and structurally weak core
capitalisation. However, it also reflects the bank's sufficient
foreign-currency liquidity and record of moderate profitability.

The bank's moderate growth record (2020: loan growth of 19%; 6%
FX-adjusted) reflects a fairly cautious approach amid challenging
market conditions and capital preservation efforts, given core
capital constraints. Fiba's strategy in 2021 is to grow unsecured
retail loans - underpinned by digital and ecosystem banking - and
lira business loans and deleverage riskier foreign-currency loans
(end-1Q21: 34% of gross loans).

Fiba's impaired loans (NPL) ratio of 3.4% at end-1Q21 (including
about 20bp uplift from regulatory forbearance), should be viewed in
light of significant NPL sales and write-offs (2019-1Q21: equal to
a cumulative 2.7% of gross loans) and high Stage 2 loans (15%; over
half restructured). High single-name concentrations and exposure to
the risky tourism (end-2020: 16%) and construction and real estate
sectors (13% combined) also heighten risks. Total reserves fully
cover NPLs, although specific reserves coverage was a low 54% at
end-1Q21, reflecting reliance on collateral.

Fitch expects NPLs to rise in 2021-2022 given waning government
stimulus and regulatory forbearance (due in 2H21) and maturing loan
deferrals (end-1Q21: 12% of gross loans; end-2020: 18%). However,
loan restructurings could delay the migration of loans to Stage 3.

Fitch expects Fiba's operating profitability (2020: 1.5% of RWA;
sector: 1.9%) to remain moderate and below average partly
reflecting its lack of scale (2020: costs/average assets ratio of
2.6%; sector: 1.8%) and limited revenue diversification. Its net
interest margin is reasonable (2020: 4.6%) but will be moderately
eroded in 2021 following lira interest rate hikes. Credit
impairments (2020: a high 55% of pre-impairment operating profit)
will also continue to put pressure on performance given underlying
asset quality risks.

Fiba's core capitalisation is a rating weakness. Its common equity
Tier 1 (CET1) ratio of 7.5% at end-1Q21 (including 30bp forbearance
uplift) is weaker than peers and is tight for its risk profile,
asset-quality, concentration risks and sensitivity to lira
depreciation (which inflates RWA). Buffers over CET1 and Tier 1
minimum ratio requirements are low (end-1Q21: 40bp). However,
pre-impairment operating profit (1Q21: 4.4% of average loans) and
free provisions (end-1Q21: 65bp of RWA) provide a good buffer to
absorb unexpected credit losses.

Fiba also expects to receive USD30 million (equivalent to about
110bp of RWAs) in core capital or AT1 debt from its majority
shareholder - Fiba Holding - in 2H21 in case it is unable to
replenish its capital buffers organically.

The total capital ratio is much higher at 19.2%, underpinned
largely by foreign currency-denominated subordinated debt
instruments, which provide a partial hedge against lira
depreciation.

Fiba is mainly funded by short-term and fairly granular deposits
(end-1Q21: 74% of total funding). However, a high, albeit
below-sector-average, 48% of deposits are in foreign currency. Its
loans/deposits ratio (109%) is broadly in line with the sector
average. Nevertheless, reliance on foreign currency wholesale
funding (end-1Q21: 25% of total funding) is high, including
relative to peers, which increases refinancing risks given exposure
to investor sentiment amid market volatility.

At end-2020, foreign currency liquidity was sufficient to cover
Fiba's FC debt due over 12 months plus over 20% of foreign currency
deposits. Nevertheless, it could come under pressure from a
prolonged market closure or foreign currency deposit instability.

NATIONAL RATING

The affirmation of the National Rating reflects Fitch's view that
Fiba's creditworthiness in local currency relative to other Turkish
issuers has not changed.

SUBORDINATED DEBT

Fiba's subordinated debt has been affirmed at one notch below its
VR anchor rating at 'B-'. Fitch notches once, rather than twice,
for loss severity due to the large QJD buffer, which reduces the
risk of the subordinated debt being fully written off in case of
bank failure.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating (SR) of '5' and Support Rating Floor (SRF) of
'No Floor' reflect Fitch's view that support cannot be relied upon
from the Turkish authorities, due to the bank's small size and
limited systemic importance, nor from Fiba Holding.

RATING SENSITIVITIES

IDRS, SENIOR DEBT AND VR

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

-- Fiba's Long-Term IDR and senior debt rating could be
    downgraded to the level of the VR if the QJD buffer falls
    sustainably below 10%. These ratings are also sensitive to a
    change in Fiba's VR.

-- The VR could be downgraded due to further marked deterioration
    in the operating environment, if the fallout from the latest
    pandemic resurgence is more severe than expected, or economic
    recovery is significantly weaker than expected.

-- A greater than expected deterioration in underlying asset
    quality could put pressure on the VR, particularly if it
    further erodes core capitalisation and leads to a breach of
    the bank's 7.1% minimum CET1 regulatory requirement.

-- A prolonged funding market closure or deposit instability that
    severely erodes Fiba's foreign currency liquidity buffer could
    also lead to a VR downgrade.

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

-- Upside for the ratings is limited in the near term given the
    Negative Outlook. However, the Outlook could be revised to
    Stable if Fitch believes that the QJD buffer is highly likely
    to remain sustainably above 10% in the medium term,
    accompanied by a reduction in operating environment risks,
    including lower market- or exchange rate- volatility, an
    improvement in investor sentiment and a strengthening of the
    bank's core capitalisation.

NATIONAL RATING

The National Rating is sensitive to changes in the bank's Long-Term
Local-Currency IDR and in its relative creditworthiness to other
Turkish issuers.

SUBORDINATED DEBT

The subordinated debt rating is sensitive to a change in Fiba's VR
anchor rating and the size of its QJD buffer. A fall in this buffer
to below 10% of RWA could result in a widening of the notching for
loss severity to two notches from the VR.

SR AND SRF

The SR and SRF are sensitive to Fitch's view on the likelihood of
Fiba receiving extraordinary support from the Turkish authorities,
which is not Fitch's base case given Fiba's limited systemic
importance and the limited ability of the sovereign to provide
support in foreign currency.

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.

SUMMARY OF FINANCIAL ADJUSTMENTS

An adjustment has been made in Fitch's financial spreadsheets of
Fibabanka that has had an impact on core and complimentary metrics.
Fitch has taken a loan that was classified as a financial asset
measured at fair value through profit and loss in the bank's
financial statements and reclassified it under gross loans as Fitch
believes this is the most appropriate line in Fitch spreadsheets to
reflect this exposure.

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.


ODEA BANK: Fitch Affirms 'B' LongTerm IDRs, Outlook Negative
------------------------------------------------------------
Fitch Ratings has affirmed Odea Bank A.S.'s Long-Term Issuer
Default Ratings (IDRs) at 'B' with a Negative Outlook and Viability
Rating (VR) at 'b'.

KEY RATING DRIVERS

IDRS, VR AND NATIONAL RATING

Odea's IDRs are driven by its standalone strength, as reflected by
its VR. The VR primarily reflects Odea's small size and limited
franchise in Turkey, and weak asset quality and ensuing modest
profitability, in light of which capitalisation is only adequate.
It also reflects the bank's high, albeit reducing, exposure to more
risky sectors. These factors are balanced by the bank's reasonable
funding and liquidity profiles.

The Negative Outlook on Odea's Long-Term IDRs reflects downside
risks to its credit profile from operating environment pressures
and asset quality weakness. In addition, the recent clean-up of the
bank's loan portfolio weighs on its performance metrics.

In Fitch's view, Odea's risk profile is largely independent from
its 76% shareholder, Lebanese based Bank Audi SAL, while Fitch
believes internal and regulatory restrictions on capital and
funding transfers to be sufficiently strict. Fitch withdrew Bank
Audi's ratings at 'Restricted Default' in January 2020, following
restrictions imposed by the Banque du Liban on banks' operations in
foreign currency (FC). Odea had no exposure to Lebanese risk and
limited funding from its parent at end-2020.

Odea focuses on lending to corporate (end-2020: 55% of loans) and
commercial (30%) customers, and retail lending is limited (3%). Its
market shares (below 1% of sector assets at end-2020) have fallen
following several years of loan deleveraging (CAGR: -1% between
2017-1Q21) as it has followed a de-risking strategy due to rising
asset quality problems.

Asset quality risks remain significant for Odea, as reflected in
significant Stage 2 loans and risky sector exposures. Stage 2 loans
comprised a material 30% of loans at end-1Q21 (46% restructured).
This partly reflects the bank's conservative loan classification
approach in recent years, but also reflects high risks notably from
shopping mall and tourism exposures heavily affected by the
pandemic. At end-2020, the bank had material exposure to the real
estate (27%), energy (14%), and tourism sectors (12%). Exposure to
SMEs, which are sensitive to GDP growth, amounted to a further
13%.

An above-sector-average share of FC lending (end-1Q21: 44%) also
heightens risks, given that not all borrowers will be fully hedged
against lira depreciation - albeit this has fallen significantly
(down 57% in US dollar terms between 2017-1Q21) as Odea has shifted
to more granular, lira lending.

Odea's impaired loans ratio improved to 10.2% at end-1Q21
(end-2019: 14.3%), despite operating environment pressures, but
included write-offs equivalent to 2.9% of end-2020 loans. This
ratio remains high compared with peer- and sector (3.8%) averages
but should also be considered in light of the bank's muted loan
growth (negative 4% in 2020; 0% in 1Q21; FX-adjusted basis).

Total loan loss allowances covered 86% of impaired loans at
end-1Q21, which is below the sector average of 137%, primarily
reflecting low specific reserves coverage of impaired loans (43%).
The latter is partly a function of its focus on commercial, and
therefore collateralised, lending but also large write-offs in
2020. Stage 2 reserves coverage (13%) was more reasonable and
compared well with peers.

Odea's operating profit/risk-weighted assets (RWAs) ratio remained
weak at 0.7% in 1Q21 (0.6% in 2020), as loan impairment charges
(LICs) absorbed a high 69% of pre-impairment operating profit
(2020: 70%). Fitch expects profitability to remain under pressure
in the short-term due to margin contraction in the high lira
interest rate environment and elevated LICs given ongoing asset
quality risks. Odea's pre-impairment operating profit (3.1% of
average loans in 1Q21, annualised) provides only a moderate buffer
to absorb losses through the income statement. Fitch considers cost
efficiency (cost/assets: 1.8%) reasonable relative to the bank's
limited scale.

Odea's common equity Tier 1 (CET1)/RWAs ratio of 11.5% at end-1Q21
(10.0%, net of forbearance) is only adequate given its small size,
high asset-quality risks, concentration risk, weak capital
generation, sensitivity to lira depreciation and unreserved
impaired loans (equal to 10% of CET1). The total capital ratio is a
stronger 20.4%, supported by FC Tier 2 capital, which provides a
partial hedge against lira depreciation.

The loans-to-deposits ratio was a reasonable 84% at end-1Q21 and
outperforms the sector average (108%). The bank is largely customer
deposit funded (end-1Q21: 77% of total funding), but a high share
is in FC (66%; sector: 55%). Odea's share of FC wholesale funding
(15%) is moderate and lower than at larger banks. At end-2020,
available FC liquidity (mainly comprising swaps with the Turkish
central bank) was sufficient to cover the bank's FC debt due in 12
months plus a modest share of FC deposits. Nevertheless, FC
liquidity could come under pressure from FC deposit instability or
a prolonged market closure.

NATIONAL RATING

The affirmation of the National Rating reflects Fitch's view that
Odea's creditworthiness in local currency relative to other Turkish
issuers has not changed.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating (SR) of '5' and Support Rating Floor (SRF) of
'No Floor' reflect Fitch's view that support cannot be relied upon
either from the Turkish authorities, due to the bank's small size
and limited systemic importance, or from the bank's shareholders.

SUBORDINATED DEBT

Odea's subordinated notes' rating of 'CCC+' is notched twice down
for loss severity from its VR anchor rating, reflecting Fitch's
expectation of poor recoveries in case of default.

RATING SENSITIVITIES

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

-- The bank's IDRs and National Rating are primarily sensitive to
    its VR. The VR could be downgraded due to a marked
    deterioration in the operating environment - as reflected in
    adverse changes to the lira exchange rate, market sentiment
    and economic growth prospects - or if economic recovery is not
    as swift as currently expected by Fitch.

-- In addition, a greater-than-expected deterioration in asset
    quality that leads to a protracted weakening in operating
    profitability (in particular if the bank recorded operating
    losses on a sustained basis), would be negative for the VR,
    particularly if it leads to an erosion of capital ratios. The
    VR would also likely come under pressure if the CET1 ratio
    fell sustainably below 9% or Fitch viewed capitalisation as no
    longer commensurate with the bank's risk profile, for example
    due to significantly higher unreserved impaired loans.

-- A VR downgrade could also result from a material weakening in
    FC liquidity, most likely due to deposit instability or a loss
    of market access.

-- A downgrade of the VR would lead to a downgrade of the
    subordinated debt rating.

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

-- Upside for the bank's ratings is limited in the near term
    given the Negative Outlook. The Outlook could be revised to
    Stable following sustained market stability that supports an
    improvement in asset quality, while reducing downside risks to
    earnings, capitalisation and funding and liquidity.

-- A positive reassessment of Odea's support-driven ratings,
    although not impossible, is very unlikely in Fitch's view,
    given Odea's limited systemic importance in Turkey, and the
    weak financial flexibility of its majority shareholder.

-- An upgrade of Odea's VR would lead to an upgrade of the
    subordinated debt rating.

NATIONAL RATING

The National Rating is sensitive to changes in Odea's Long-Term
Local-Currency IDR and its creditworthiness relative to other
Turkish issuers.

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.


SEKERBANK: Fitch Affirms 'B-' Foreign Currency IDR, Outlook Neg.
----------------------------------------------------------------
Fitch Ratings has affirmed Sekerbank T.A.S.'s (Sekerbank) Long-Term
Foreign-Currency Issuer Default Rating (LTFC IDR) at 'B-' with a
Negative Outlook and Viability Rating (VR) at 'b-'.

KEY RATING DRIVERS

IDRs and VR

The 'B-' IDRs of Sekerbank are driven by its standalone
creditworthiness, as reflected in its VR. The VR reflects the
bank's very weak capitalisation, heightened asset-quality risks and
weak internal capital generation. It also reflects the
concentration of Sekerbank's operations in the volatile Turkish
operating environment, where it has a limited franchise (albeit
with a more meaningful regional presence in Anatolia), small market
shares and a lack of pricing power. Its operations are focused
mainly on the SME and commercial segments and, to a lesser extent,
corporate and retail customers.

The recent replacement of the Central Bank of the Republic of
Turkey (CBRT) governor and ensuing damage to Turkey's monetary
policy credibility and investor sentiment have driven renewed
market volatility and lira depreciation, creating downside risks to
Turkey's economic recovery (Fitch forecast of 6.7% GDP in 2021).
Uncertainty also remains due to the pandemic and the latest
infection resurgence.

Capitalisation is a constraint on the VR given Sekerbank's limited
buffers, small size, heightened asset- quality pressures,
single-name risk and weak internal capital generation, and inhibits
growth. Unreserved non-performing loans (NPLs) were equal to 18% of
common equity Tier 1 (CET1) capital at end-1Q21.

Net of regulatory forbearance, Sekerbank's CET-1 and Tier-1 ratios
slightly fell to 8.7% at end-1Q21, while the total regulatory
capital to 13% (from 13.1% at end-2020, net of forbearance), just
above the 12% regulatory minimum. Capital ratios remain sensitive
to further lira depreciation (given high foreign-currency
risk-weighted assets (RWAs)) and asset-quality weakening.

Sekerbank's loan growth has been below sector average in recent
years - at 7% (foreign-exchange (FX) adjusted) in 2020 - driven
mainly by local-currency SME and retail lending. In 1Q21 lending
contracted 1%. The bank's 2021 loan growth target of 15% could be
challenging to realise given operating- environment uncertainty,
and asset-quality and capital constraints.

Credit risks remain high, given Sekerbank's exposure to the
high-risk SME and micro-SME segments (end-2020: 53% of net loans),
which are highly sensitive to economic cycles, and vulnerable
sectors, including construction (end-2020: 16%, mostly loans to
contractors), tourism (13%) and agriculture (11%). Foreign-currency
lending is also high (end-1Q21: 33%), albeit below sector average,
increasing credit risk given the impact of Turkish lira
depreciation on often weakly hedged borrowers' ability to service
their debt.

Sekerbank's non-performing loan (NPL) ratio (end-1Q21: 9.6%)
underperforms the sector's, reflecting a focus on higher-risk
segments but also the clean-up of the bank's loan book since 2018.
However, its NPL ratio has improved since end-2019 (from 13.4%)
despite pandemic pressures, reflecting loan growth, regulatory
forbearance, collections and write-offs. Stage 2 loans are also
fairly high (11.2%), of which 57% were restructured.

Reserves coverage of NPLs is only moderate, reflecting reliance on
collateral given the bank's SME focus. Total reserves coverage of
NPLs was 82% (consolidated basis) at end-1Q21 (sector: 137%, solo
basis) and Stage 2 coverage was 7%. Coverage increased in 2020 as
the bank front-loaded provisions.

Profitability is very weak and likely to remain under pressure from
high impairment charges, low growth and margin pressure. The bank
generated only TRY9 million profit in 1Q21 (return on equity (ROE):
1%, annualised) as it saw a rise in lira funding costs - partly
reflecting its above-sector average share of lira funding - and in
its cost of risk (1Q21: 2.2%; 2020: 2.1%). However, this included
TRY66 million of gains from the sale of foreclosed real-estate
assets.

Sekerbank is mainly funded by granular deposits (end-1Q21: 85% of
total funding), reflecting its widespread presence in Anatolia.
However, a high 49% of deposits were in foreign currencies (FC;
sector 55%). FC wholesale funding is limited (7% of total funding)
and below the sector average, and largely comprises funding from
international financial institutions and subordinated debt.

FC liquidity - comprising largely cash and interbank balances,
maturing FX swaps and government securities - is sufficient to
cover a short-lived market closure given the bank's limited
short-term refinancing needs. Nevertheless, FC liquidity could come
under pressure from FC deposit instability.

NATIONAL RATING

The affirmation of Sekerbank's National Rating with a Negative
Outlook reflects Fitch's view that the bank's creditworthiness in
LC relative to other Turkish issuers' is unchanged.

SUBORDINATED DEBT

Sekerbank's subordinated notes' rating has been affirmed at 'CCC'
and is notched down twice from the VR anchor rating for loss
severity, reflecting Fitch's expectation of poor recoveries in case
of default.

SUPPORT RATING AND SUPPORT RATING FLOOR

The bank's '5' Support Rating and 'No Floor' Support Rating Floor
reflect Fitch's view that support from the Turkish authorities
cannot be relied upon, given the bank's small size and limited
systemic importance. In addition, support from Sekerbank's
shareholders, while possible, cannot be relied upon.

RATING SENSITIVITIES

IDRS, VR AND NATIONAL RATING

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

-- The bank's ratings could be downgraded if core capital metrics
    weaken below their respective minimum regulatory requirements,
    particularly in the absence of remedial actions. A downgrade
    could also result from a further sharp weakening in
    profitability that erodes capital ratios.

-- The ratings could also be downgraded on further marked
    deterioration in the operating environment, particularly if
    this leads to greater-than-expected asset-quality weakening,
    or an erosion of FC liquidity due to deposit outflows or an
    inability to refinance maturing external obligations.

-- Sekerbank's National Rating is sensitive to a change in the
    entity's creditworthiness relative to other rated Turkish
    issuers'. A negative rating action on the Long-Term Local
    Currency IDR could lead to a negative rating action on the
    National Rating.

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

-- The Outlook on the bank's IDRs could be revised to Stable if
    economic conditions stabilise, supporting an improvement in
    the bank's asset quality, or stabilisation in earnings and
    capital.

-- A material strengthening of core capital could lead to an
    Outlook revision to Stable, as long as asset-quality risks are
    contained.

-- The National Rating is sensitive to positive changes in the
    bank's Long-Term Local-Currency IDR and also in relative
    creditworthiness of Sekerbank to other Turkish issuers'.

-- An upgrade of the bank's ratings is unlikely in the near-term
    given the Negative Outlook and its weak capitalisation.

SUBORDINATED DEBT RATING

The subordinated debt rating is primarily sensitive to a change in
Sekerbank's VR anchor rating. Therefore, a downgrade of Sekerbank's
VR would lead to a downgrade of the subordinated debt rating. The
debt rating could also be downgraded should Fitch adversely change
its assessment of non-performance risk.

SUPPORT RATING AND SUPPORT RATING FLOOR

Sekerbank's Support Rating and Support Rating Floor are sensitive
to changes in Fitch's view of the likelihood of extraordinary
support from the Turkish authorities, in case of need. A positive
reassessment of these ratings, although not impossible, is unlikely
given Sekerbank's limited systemic importance and the limited
ability of the sovereign to provide support in FC.

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.




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

AMIGO LOANS: Insolvency Among Options After Losing Court Case
-------------------------------------------------------------
Business Sale reports that loan company Amigo has said it is
considering all options including insolvency and entering
administration after a court judgement rejected its plans to reduce
its financial responsibilities.

The Bournemouth-based guarantor loans business, which employs
around 400 people, failed to win High Court approval for a scheme
that would allow it to put a cap on the amount of compensation that
will be paid to people with mis-selling complaints, Business Sale
discloses.

According to Business Sale, under the scheme, any claimants would
have received around 10p per GBP1 on their claim, with Amigo
stating that failure to receive approval for the scheme would
result in the company "inevitably" falling into administration.

However, the High Court agreed with the Financial Conduct Authority
(FCA), which stated that these proposals put the shareholders ahead
of the claimants, Business Sale notes.

Responding to the court judgement, Amigo released a statement that
revealed it would be now be taking the time to consider all
alternative options available, including insolvency and entering
administration, Business Sale relates.


AMIGO LOANS: Moody's Puts Caa1 CFR on Review for Further Downgrade
------------------------------------------------------------------
Moody's Investors Service extended the review for downgrade on
Amigo Loans Group Ltd's Caa1 corporate family rating and the B3
backed senior secured note rating issued by Amigo Luxembourg S.A.

RATINGS RATIONALE

Moody's initiated the review for downgrade on Amigo's ratings on
February 5, 2021 to reflect the rating agency's view that Amigo is
facing heightened solvency risks following a surge in customer
complaints[1]. Furthermore, the review captures the uncertainties
regarding the balance sheet composition, and the magnitude of the
company's economic value loss in the coming months. Moody's review
for downgrade continues to reflect enhanced uncertainties around
the future ownership structure, strategy and business model
evolution of the company.

The extension of the review follows the High Court judgement on May
25, 2021 against the Scheme of Arrangement (The Scheme) of ALL
Scheme Ltd[2], that was setup by Amigo. The Scheme proposed a
compensation pool of GBP15 million to GBP35 million, plus a cash
contribution based on 15% of pre-tax profit for the next four
financial years ending March 31, 2025. The Scheme's proceeds were
to provide redress to all current and former customers (both
borrowers and guarantors with a valid claim) in relation to
historic loans made by Amigo before December 21, 2020 and certain
related liabilities owed to the Financial Ombudsman Service.

The High Court decision was needed to certify the Scheme following
the support of 74,877 of Amigo's customers, representing over 95%
of those who voted. Following the judgment, Amigo stated that it
was reviewing all its options and would provide an update at the
earliest opportunity. As a result, the rating agency expects to
conclude the ratings review upon Amigo's announcement of its next
steps.

The review primarily focuses on the strategic steps Amigo will
decide to take and their related financial implications including
the forecast balance sheet evolution in the first half of 2021 and
any relevant updates from the Financial Conduct Authority's ongoing
investigation of the company's affordability assessment processes.

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

Amigo's CFR could be confirmed at current levels if Moody's
concludes that the company will be able to maintain its standalone
financial profile, without any adverse development in its solvency
and liquidity profile and franchise positioning. Amigo Luxembourg
S.A.'s backed senior secured debt ratings could be confirmed at the
current level if Moody's believes that there continues to be
sufficient unencumbered assets to continue to meet the claims of
the senior note holders.

Amigo's CFR could be downgraded because of Amigo filing for
insolvency or further weakening in its solvency or liquidity
profile, and/or franchise positioning, governance and risk
management. The senior secured notes may be downgraded if there is
a material increase in the liabilities that will rank super senior
to or pari-passu with the senior secured notes that would increase
their expected loss. Redemption of the senior notes at a material
discount, were this to occur, could be viewed as a distressed
exchange and result in a multi notch downgrade.

PRINCIPAL METHODOLOGY

The methodology used in these ratings was Finance Companies
Methodology published in November 2019.


CAFFE NERO: Files Accounts on Time, Vows to Meet Debt Covenants
---------------------------------------------------------------
Louisa Clarence-Smith at The Times reports that Caffe Nero has seen
off the latest threat from the Issa brothers after filing its
annual accounts on time and pledging to meet all of its banking
covenants following a rally in sales.

According to The Times, the chain said weekly sales over the past
13 weeks had risen 82% as hospitality restrictions were lifted.
Current trading is between 70% and 80% of pre-pandemic levels, The
Times notes.

Zuber and Mohsin Issa, the billionaire buyers of Asda, have sought
to acquire Caffe Nero to expand the chain into EG Group, their
petrol forecourts business, and potentially into Asda, The Times
relates.

They completed a deal to buy the majority of Caffe Nero's debts of
about GBP140 million in April, The Times discloses.


LIBERTY STEEL: ArcelorMittal Eyes French Steel Plants
-----------------------------------------------------
Sylvia Pfeifer and David Keohane at The Financial Times report that
ArcelorMittal, one of the world's biggest steel producers, is among
a number of companies poised to swoop for the French steel plants
of beleaguered metals tycoon Sanjeev Gupta.

According to the FT, sources familiar with the situation confirmed
German steel producer Saarstahl and Italy's Beltrame Group are also
in the running to buy Gupta's French plants Ascoval and Hayange.

The FT revealed earlier this month that Mr. Gupta's Liberty Steel,
the steel division of his metals conglomerate GFG Alliance, had put
the two plants in north-eastern France up for sale after failing to
refinance them.

Liberty Steel only bought the Hayange mill last August after its
previous operator British Steel collapsed into insolvency, the FT
notes.

Ascoval was formerly controlled by Greybull Capital, the private
investment company that owned the UK steelmaker, and was bought by
Liberty at the same time, the FT discloses.

GFG, the FT says, has been scrambling to find new sources of
finance since its main lender Greensill Capital collapsed into
administration in March.

The group has also been hit by suspicions of fraud, which the
Serious Fraud Office is investigating, the FT states.

The sale of the two French plants is being closely watched by the
government, according to the FT.

The French government in March provided a EUR20 million loan to the
two plants, the FT recounts.  It has said it is willing to support
the workers and sites hit by the troubles at GFG, but will not bail
out shareholders, the FT relays.  The loans were given under the
condition that the company would be able to raise fresh financing,
the FT discloses.

The formal sales process was begun at the end of April, the FT
relays, citing one person familiar with the situation.  Rothschild
is advising on the sale, the FT notes.

GFG, as cited by the FT, said it remained "confident" of securing
new financing, given the strength of the steel market, despite the
two sites facing a "significant reduction in working capital
support" since Greensill's collapse.

GFG is also selling three UK speciality steel plants, including its
operations at Stocksbridge in Yorkshire, as it seeks to stave off a
wider collapse, the FT relates.

According to the FT, sources familiar with the situation said that
a number of potential interested parties had come forward in recent
days.

GFG has been trying to refinance its British operations but talks
with White Oak Global Advisors, a US-based private finance group,
faltered after news of the SFO probe broke, the FT says.  GFG has
said it will co-operate with the investigation, the FT notes.


MARKET HALLS: Launches Company Voluntary Arrangement
----------------------------------------------------
Sophie Witts at The Caterer reports that London food hall operator
Market Halls has launched Company Voluntary Arrangement (CVA)
proposals in a bid to save the business.

The group, which was founded in 2017 and has sites in Fulham,
Oxford Street and Victoria, has not reopened any of its halls since
March 2020 over fears coronavirus restrictions would severely limit
trade, The Caterer notes.

According to The Caterer, founder and chief executive Andy
Lewis-Pratt said the future of the business was now at "real risk",
with sites not expected to reopen until this summer and debts
continuing to mount.

Prior to the pandemic the group's food halls were filled with small
restaurant traders including BaoziInn, Cook Daily, HotBox and
Gopal's Corner, The Caterer states.

Four of the group's entities, Try Market Halls Limited (TMH), Try
Market Halls Fulham Broadway Limited (TMH Fulham), Try Market Halls
Victoria Limited (TMH Victoria) and Try Market Halls Oxford Street
Limited (TMH Oxford Street), are each launching a CVA, The Caterer
discloses.

The financial restructuring programme is being funded by a new
investor in the business, Gees Court Partners, The Caterer relays.

Will Wright and Chris Pole from Interpath Advisory are the proposed
nominees of the CVA, The Caterer says.

TMH Fulham, TMH Oxford Street and TMH Victoria have reached
consensual agreements with their landlords such that no further
compromise of the leases is required, The Caterer discloses.  The
landlords are therefore classed as critical creditors for the
purposes of the CVAs, and as such are excluded from the proposals,
The Caterer notes.

Creditors will have access to proposal documents from June 1 and
will have until June 16 to vote on the plans, according to The
Caterer.


PANI'S: Put Up for Sale After COVID-19 Pandemic Hits Finances
-------------------------------------------------------------
Business Sale reports that one of Newcastle's top Italian
restaurants has been put up for sale following months of financial
difficulty as a result of the COVID-19 pandemic and its subsequent
lockdown restrictions.

According to Business Sale, Pani's Italian restaurant in High
Bridge, which has been put up for sale for GBP450,000, reportedly
has annual costs including GBP64,920 rent and a net profit of
GBP180,271.

In a sales brochure, the details added that the business has
benefited from a GBP150,000 renovation, provides an excellent base
for future development and "lots of growth potential for the right
buyer", Business Sale discloses.

Pani's was first opened in 1995 and since then it has frequently
appeared in national newspapers under restaurant recommendations
for those visiting Newcastle.  Since it was established, the
business has experienced steady growth and now boasts a turnover of
£1 million.

However, like many other restaurants across the country, the venue
has been hit hard by the COVID pandemic and lockdown restrictions
having had to close its doors to members of the public for a number
of months, Business Sale notes.  Pani's has since reopened subject
to social distancing rules, Business Sale states.



                           *********


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

Troubled Company Reporter-Europe is a daily newsletter co-
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Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
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Editors.

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