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

                          E U R O P E

          Thursday, June 3, 2021, Vol. 22, No. 105

                           Headlines



F I N L A N D

MEHILAINEN YHTYMA: Fitch Affirms 'B' LongTerm IDR, Outlook Stable


F R A N C E

PARTS HOLDING: Moody's Puts B3 CFR Under Review for Upgrade
[*] FRANCE: To Set Up EUR3BB Fund to Support COVID-Hit Businesses


G R E E C E

[*] GREECE: EU Okays Scheme to Support Covid-Hit Tourism Cos.


I R E L A N D

ARBOUR CLO II: Moody's Assigns (P)B3 Rating to Class F-R Notes
AVOCA CLO XXIII: S&P Assigns B- Rating on EUR12MM Cl. F Notes
BARINGS EURO 2019-2: Fitch Affirms B- Rating on Class F Notes
BLUEMOUNTAIN FUJI III: Fitch Assigns Final B- Rating on F Notes
BLUEMOUNTAIN FUJI III: Moody's Affirms B2 Rating on Class F Notes

BNPP AM 2021: Moody's Assigns (P)B3 Rating to Class F Notes
PENTA CLO 9: Fitch Assigns Final B-(EXP) Rating on Class F Debt
QUINN INSURANCE: Central Bank Inquiry Cost Almost EUR1.9 Million
SCULPTOR EUROPEAN VIII: Moody's Gives (P)B3 Rating to Cl. F Notes
ST. PAUL'S VII: Moody's Assigns (P)B3 Rating to Class F-R Notes



I T A L Y

BCC NPL 2019: DBRS Confirms CCC Rating on Class B Notes


N E T H E R L A N D S

CIDRON OLLOPA: Moody's Affirms B2 CFR, Outlook Stable
MAS SECURITIES BV: Fitch Assigns Final BB Rating on EUR300MM Bond


R U S S I A

ABSOLUT BANK: Moody's Reviews B2 Deposit Ratings for Downgrade
METALLOINVEST: S&P Alters Outlook to Positive & Affirms 'BB+' ICR
RESO-LEASING LLC: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
UMK BANK: Bank of Russia Ends Provisional Administration


S P A I N

GRUPO COOPERATIVO: DBRS Confirms BB(high) LongTerm Issuer Rating


S W E D E N

TRANSCOM HOLDING: S&P Raises ICR to 'B-' on Improved Liquidity


U K R A I N E

DTEK ENERGY: Moody's Hikes CFR to Caa3 on Debt Restructuring


U N I T E D   K I N G D O M

ALEXANDER INGLIS: Administration to Hit Cereal Sector
COMPASS III: Moody's Affirms B3 CFR & Alters Outlook to Stable
MORTIMER BTL 2021-1: S&P Assigns Prelim. BB+ Rating on E Notes
N-SEA OFFSHORE: Enters Administration, 30 Jobs Affected
RICHMOND UK: Moody's Alters Outlook on Caa1 CFR to Stable

[*] UK: 15% Owner Managed Businesses Remain in "Survival Mode"

                           - - - - -


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F I N L A N D
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MEHILAINEN YHTYMA: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Mehilainen Yhtyma Oy's (Mehilainen)
Long-Term Issuer Default Rating (IDR) at 'B' with a Stable
Outlook.

Fitch has also affirmed Mehilainen Yhtiot Oy's senior secured debt
rating at 'B+' with a Recovery Rating 'RR3' following an upsizing
of its term loan B (TLB) to EUR1,060 million.

Mehilainen's 'B' IDR reflects an aggressive financial risk profile
that is counterbalanced with defensive diversified operations and
sustainably positive free cash flow (FCF). The Stable Outlook
reflects Fitch's expectations of stable operating performance
through an organic and acquisitive growth strategy embedded in a
predictable and well-funded regulatory framework.

Fitch has withdrawn Mehilainen's existing EUR50 million TLB senior
secured rating of 'B+'/'RR3' and EUR200 million second-lien
facility rating of 'CCC+'/'RR6' following their full prepayment
from the proceeds of the TLB increase.

KEY RATING DRIVERS

Transaction Rating-Neutral: Fitch views the increase in the TLB as
rating-neutral as the new debt proceeds have been used to prepay
the more expensive second-lien tranche. Total debt therefore
remains largely unchanged, leading to stable funds from operations
(FFO)-adjusted gross leverage of 8.0x post-refinancing, which
remains high for the IDR.

Defensive Diversified Operations: As a social infrastructure asset,
Mehilainen benefits from stable and steadily growing demand across
its diversified services. Its strong position in the Finnish
private healthcare and social-care markets with reasonable scale
supports its ability to maintain operating and cash flow
profitability amid evolving regulatory changes.

No Headroom Under Credit Metrics: An extensive debt-funded growth
strategy has resulted in FFO adjusted gross leverage of around 8.0x
and FFO fixed charge cover of 1.6x, leaving no headroom under the
'B' IDR. Fitch equally sees no meaningful scope for structural
metrics improvement as Fitch expects operating efficiency gains to
be reinvested to address rising costs, particularly in
personnel-intensive social-care operations. Hence, free cash flow
(FCF) generation remains key in supporting the 'B' rating.

Deleveraging Unlikely: Since its buyout in 2018, Mehilainen has
stabilised its FFO-adjusted gross leverage at around 8.0x, from
8.8x. Leverage headroom freed up by strong trading performance with
steadily growing FFO has been exhausted by the TLB upsizing. The
TLB increase reflects the company's stance of permanently high
leverage tolerance, making de-leveraging unlikely in the medium
term.

Robust Cash Flow Generation: Mehilalinen has maintained positive
FCF, which Fitch expects to continue with estimated FCF margins of
around 4% and annual FCF at EUR50 million-EUR60 million, after
investments in greenfield units. FCF is supported by adequate
operating profitability, structurally negative trade working
capital and comparatively low capex for the sector at 2%-3% of
sales. The repayment of the second-lien tranche will lower interest
expenses by over EUR6 million each year, boosting FCF generation.
Fitch expects the company to reinvest most of its FCF in M&A.

High Risk of M&A: Fitch sees event risks from the company's recent
public announcement to intensify opportunistic M&A, including
larger targets in Finland as well as international expansion. Fitch
estimates cumulative acquisitions of up to EUR200 million until
2024 that can be financed with a combination of internal cash flow
and a revolving credit facility (RCF). Larger or additional
acquisitions are contingent on issuance of new debt and may put
ratings under pressure, subject to Fitch's assessment of their
impact on Mehilainen's operating profile, execution risk,
acquisition economics and funding mix.

SOTE Reform Neutral to Negative: The latest draft of the Finnish
Healthcare and Social Care Reform (SOTE reform) favours the public
sector as the primary service provider, supplemented in some areas
by private contributions. As a result, Mehilainen's largest
outsourcing contract Lansi-Pohja involving provision of primary
healthcare and large parts of central hospital functions would be
at risk of early termination, which would affect an estimated 3% of
EBITDA. In the longer term the reform will likely limit
Mehilainen's organic growth prospects in the public healthcare
market. Fitch expects the company's social-care services to be
unaffected.

ESG Considerations: Mehilalinen has a high ESG Relevance Score of
'4' for 'Exposure to Social Impact' as the currently debated
healthcare reforms in Finland could be negative for private
healthcare operators. The current revised draft of the SOTE reform,
which is yet to be debated in national parliament, could come into
force in 2023-2024, and if approved in the current version, will
limit the participation of private operators across larger service
value chains of the public healthcare system. While its immediately
estimated impact on Mehilainen is limited, Fitch would expect
reduced involvement of the private sector medium-to-long term in
the Finnish public healthcare system, diminishing their growth
prospects.

DERIVATION SUMMARY

Unlike most Fitch-rated private healthcare service providers with a
narrow focus on either healthcare or social-care services,
Mehilainen differentiates itself as an integrated service provider
with diversified operations across both markets. It has a
meaningful national presence in each type of service, making its
business model more resilient against weaknesses in individual
service lines. Mehilainen also benefits from a stable regulatory
framework, which contrasts especially with the UK, where private
operators have been exposed to margin pressures due to a reduction
in local authorities' fees.

Mehilainen's weak financial metrics are balanced by adequate
operating profitability and sustainably positive cash flow
generation given an asset-light business model with low capex
intensity and structurally negative trade working capital.

Mehilainen's credit risk as a whole, and operating and financial
risk profiles, are similar to that of other social infrastructure
credits such as the provider of laboratory-testing services
Laboratoire Eimer Selas (Biogroup, B/Stable), which is also
pursuing a consolidation strategy in fragmented markets backed by
private equity. As a result, leverage for both issuers is
comparatively aggressive, and more commensurate with a high 'CCC'
category at 8.0x-9.0x. Similar to Mehilainen's, Biogroup's high
leverage is equally counterbalanced by defensive operations, intact
organic growth and satisfactory FCF generation, supporting the
company's 'B' rating.

Fitch also compares Mehilainen with the French private hospital
operator Almaviva Development (B/Stable), with both companies'
ratings reflecting a strong national market position, reliance on
stable regulation that also limits the scope for profitability
improvement, low to mid-single digit FCF generation, high leverage
at 7.0x-8.0x and a M&A-driven growth strategy.

KEY ASSUMPTIONS

-- Revenue CAGR of 5.8% during 2021-2024, driven by internal and
    external growth. Slightly higher sales growth of about 8% for
    2021 due to Covid-19 testing activity and some rebound in the
    social-care segment with recovering occupancy rates;

-- Steady EBITDA margin (Fitch-defined, excluding IFRS 16
    adjustments) at around 11% until 2024;

-- Capex averaging around 2.5% of revenue each year until 2024;

-- Trade working capital largely neutral;

-- Ongoing business restructuring and optimisation changes
    included as recurring business cost;

-- Bolt-on acquisitions of around EUR30 million-EUR85 million
    until 2024; and

-- No dividends for the next four years.

Recovery Ratings Assumptions:

The recovery analysis assumes that Mehilainen would be reorganised
as a going-concern (GC) in bankruptcy rather than liquidated.

Fitch estimates post-restructuring EBITDA at EUR105 million,
including the most recent add-on M&A completed this year, as the
benefits from these asset additions will remain in the business
post-distress. Fitch views this GC EBITDA as appropriate for the
company to remain a GC, reflecting possible restructuring benefits
post-distress.

Fitch continues to apply a distressed enterprise value (EV)/EBITDA
multiple of 6.5x, implying a premium of 0.5x over the sector
median, reflecting Mehilainen's broadly stable and balanced
regulatory regime for private-service providers in Finland, a
well-funded national healthcare system and the company's strong
market position across diversified business lines.

The allocation of value in the liability waterfall results in a
Recovery Rating of 'RR3' for the upsized first- lien senior secured
TLB of EUR1,060 million and RCF of EUR125 million, which Fitch
assumes will be fully drawn prior to distress, indicating a 'B+'
instrument rating with a waterfall-generated recovery computation
of 52% based on current assumptions.

RATING SENSITIVITIES

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

-- Successful execution of medium-term strategy leading to a
    further increase in scale with EBITDA margins at or above 15%
    on a sustained basis (2020: 11.3%, Fitch-defined excluding
    IFRS 16);

-- Continued supportive regulatory environment and Finnish macro
    economic factors;

-- FCF margins remaining at mid-single-digit levels (2020: 3.1%);
    and

-- FFO-adjusted gross leverage improving towards 6.5x (2020:
    8.3x) and FFO fixed-charge cover trending towards 2.0x (2020:
    1.5x).

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

-- EBITDA margin declining towards 10% on a sustained basis as a
    result of weakening organic performance, productivity losses
    with fewer customer visits, lower occupancy rates, pressure on
    costs, or weak integration of acquisitions;

-- Weakening credit profile as a result of opportunistic and
    aggressively funded M&A;

-- Risk to the business model resulting from adverse regulatory
    changes to public and private funding in the Finnish
    healthcare system, including from the SOTE reform;

-- Declining FCF margins to low single digits due to all the
    above; and

-- FFO-adjusted gross leverage remaining above 8.0x and cash from
    operations-capex/total debt falling to low single digits due
    to operating under-performance or aggressively funded M&A and
    FFO fixed-charge cover persistently below 1.5x.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: Fitch views Mehilainen's liquidity as
comfortable given EUR85million of on-balance-sheet cash as of March
2021, projected sustained positive FCF generation of EUR50
million-EUR60 million per annum and an undrawn committed RCF of
EUR125 million, of which EUR7.5 million is allocated for bank
guarantees. Refinancing risk remains manageable given the company's
long-dated TLB maturity in 2025.

ESG CONSIDERATIONS

Mehilainen has an ESG Relevance Score of '4' for Exposure to Social
Impact due to the company's high dependence on healthcare and
social care reimbursements schemes and access to the publicly
funded healthcare and social-care markets, which has a negative
impact on the credit profile and is relevant to the rating in
conjunction with other factors.

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




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F R A N C E
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PARTS HOLDING: Moody's Puts B3 CFR Under Review for Upgrade
-----------------------------------------------------------
Moody's Investors Service has placed all ratings of car parts
distributor Parts Holding Europe S.A.S (PHE or the company) on
review for upgrade, including the corporate family rating of B3 and
the probability of default rating of B3-PD. Concurrently, Moody's
has also placed on review for upgrade the B3 ratings on the
existing guaranteed senior secured notes issued by Parts Europe
S.A. The outlooks have been changed to rating under review from
stable.

"The rating action reflects the material improvements in PHE's
credit metrics that is likely to occur if the company IPOs as
announced", says Eric Kang, a Moody's Vice President - Senior
Analyst and lead analyst for PHE. "Should the IPO complete as
planned, we expect PHE's Moody's-adjusted debt/EBITDA to reduce by
around 2.5x to 4.8x in 2021 from 7.7x in 2020 because proceeds from
the IPO will be used to partly repay debt", adds Mr Kang.

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

The review for upgrade follows PHE's IPO filling with the Euronext
Paris stock exchange on May 25, 2021. The company intends to raise
approximately EUR450 million of primary proceeds, which it plans to
use to reduce its gross indebtedness. As a result, the rating
agency expects PHE's Moody's-adjusted debt/EBITDA to reduce by
around 2.5x to 4.8x in 2021 from 7.7x in 2020.

Moody's review will focus on the deleveraging impact of the IPO.
The review will also evaluate the company's strategic objectives,
new ownership structure, financial policy, and liquidity including
free cash flow generation. With respect to financial policy,
Moody's review will focus on target leverage, shareholder returns,
and debt-funded acquisitions among other factors. Although Bain
Capital will retain a stake of at least 40.9% after the IPO,
Moody's expects the company to adopt a more conservative financial
policy going forward, which is a governance consideration under the
rating agency's ESG framework.

Moody's expects the review to conclude shortly after closing of the
IPO in early June. Should the IPO and debt repayments conclude as
envisaged, Moody's expects the CFR could be upgraded by at least
two notches.

Moody's would consider upgrading the ratings if a continued
improvement in operating performance leads to Moody's-adjusted
debt/EBITDA reducing to below 6.0x, Moody's-adjusted EBITA/interest
increasing above 1.5x, and the company maintains a solid liquidity
profile including positive Moody's-adjusted free cash flow / debt
of around 5%.

Negative rating action could materialize if the company fails to
sustain the recent improvements in operating performance and cash
flow generation, or liquidity materially weakens. This would be
evidenced by Moody's-adjusted debt/EBITDA remaining sustainably
above 7.0x, weak Moody's-adjusted EBITA/ interest cover of around
1.0x, or sustained negative free cash flow.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Distribution &
Supply Chain Services Industry published in June 2018.

COMPANY PROFILE

Headquartered in France, Parts Holding Europe S.A.S is a leading
aftermarket light vehicle (LV) spare parts distributor and truck
spare parts distributor and repairer in France, Benelux, Italy, and
Spain. It also owns Oscaro, the leading online car parts retailer
in France, since November 2018. The company generated revenue of
around EUR1.8 billion in 2020.


[*] FRANCE: To Set Up EUR3BB Fund to Support COVID-Hit Businesses
-----------------------------------------------------------------
Reuters reports that France will set up a new EUR3 billion (US$3.67
billion) fund to support mid-sized and large companies as they
emerge from the coronavirus crisis, French Finance Minister Bruno
Le Maire said on June 1.

According to Reuters, the fund aims to help firms on a case-by-case
basis with loans or equity injections so that businesses that were
viable before the pandemic but now have strained balance sheets can
get back on their feet.

"The aim is not to dilute shareholders, it's not the state's role
to become French companies' main shareholder," Mr. Le Maire told a
news conference.

"Our aim is to ensure the transition from the crisis so companies
can rebound," Mr. Le Maire said.

The fund is part of a series of new measures which include
fast-track restructuring of small firms' debts and giving firms
more time to pay back tax arrears and payroll contributions,
Reuters notes.

French companies saw their debt surge by EUR230 billion last year
-- more than 10% of gross domestic product -- as they took out
state-guaranteed loans en masse to help cope with collapse in
cashflow during the crisis, Reuters discloses.

Although many firms ended up not having to use the money they
borrowed, the ministry wants to avoid a wave of insolvencies,
Reuters states.




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G R E E C E
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[*] GREECE: EU Okays Scheme to Support Covid-Hit Tourism Cos.
-------------------------------------------------------------
Reuters reports that the European Commission has approved an EUR800
million scheme by Greece, designed to support tourism companies
which have been heavily affected by the COVID-19 outbreak.

According to Reuters, the Commission said the scheme will be open
to companies of all sizes that experienced a decline in turnover of
more than 30% in 2020, compared to 2019.




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I R E L A N D
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ARBOUR CLO II: Moody's Assigns (P)B3 Rating to Class F-R Notes
--------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to refinancing notes to be issued by
Arbour CLO II Designated Activity Company (the "Issuer"):

EUR1,000,000 Class X-R Senior Secured Floating Rate Notes due
2034, Assigned (P)Aaa (sf)

EUR248,000,000 Class A-R Senior Secured Floating Rate Notes due
2034, Assigned (P)Aaa (sf)

EUR27,700,000 Class B-1-R Senior Secured Floating Rate Notes due
2034, Assigned (P)Aa2 (sf)

EUR12,300,000 Class B-2-R Senior Secured Fixed Rate Notes due
2034, Assigned (P)Aa2 (sf)

EUR25,000,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)A2 (sf)

EUR27,000,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)Baa3 (sf)

EUR21,200,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)Ba3 (sf)

EUR11,300,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)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.

Interest and principal amortisation amounts due to the Class X-R
Notes are paid pro rata with payments to the Class A-R Notes. The
Class X-R Notes amortise by EUR200,000 over the five payment dates,
starting on the second payment date.

On the Original Closing Date, the Issuer also issued EUR39,500,000
of subordinated notes, which will remain outstanding. The terms and
conditions of the subordinated notes are amended in accordance with
the refinancing notes' conditions.

The Issuer is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured obligations and up to 10%
of the portfolio may consist of senior unsecured obligations,
second-lien loans, mezzanine obligations and high yield bonds. The
underlying portfolio is expected to be almost fully ramped as of
the closing date so there will be no effective date defined.

Oaktree Capital Management (UK) LLP 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 4.58 years
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 or credit improved 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: EUR400,000,000

Diversity Score: 53

Weighted Average Rating Factor (WARF): 3010

Weighted Average Spread (WAS): 3.40%

Weighted Average Coupon (WAC): 4.00%

Weighted Average Recovery Rate (WARR): 44.0%

Weighted Average Life (WAL): 8.5 years


AVOCA CLO XXIII: S&P Assigns B- Rating on EUR12MM Cl. F Notes
-------------------------------------------------------------
S&P Global Ratings assigned credit ratings to Avoca CLO XXIII DAC's
class A-loan and class X, A, B-1, B-2, C, D, E, and F notes. At
closing, the issuer also issued subordinated notes.

The ratings reflect S&P's assessment of:

-- The diversified collateral pool, which consists primarily of
broadly syndicated speculative-grade senior-secured term loans and
bonds that are governed by collateral quality tests.

-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.

-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.

-- The transaction's legal structure, which is bankruptcy remote.

-- The transaction's counterparty risks, which are in line with
our counterparty rating framework.

  Portfolio Benchmarks
                                                       CURRENT
  S&P weighted-average rating factor                   2782.63
  Default rate dispersion                               496.35
  Weighted-average life (years)                           5.22
  Obligor diversity measure                             128.73
  Industry diversity measure                             17.53
  Regional diversity measure                              1.24

  Transaction Key Metrics
                                                       CURRENT
  Portfolio weighted-average rating
    derived from S&P's CDO evaluator                         B
  'CCC' category rated assets (%)                         1.61
  Covenanted 'AAA' weighted-average recovery (%)         36.87
  Covenanted weighted-average spread (%)                  3.80
  Covenanted weighted-average coupon (%)                  4.50

Loss mitigation obligations

Under the transaction documents, the issuer can purchase loss
mitigation obligations, which are assets of an existing collateral
obligation held by the issuer offered in connection with
bankruptcy, workout, or restructuring of such obligation, to
improve the recovery value of such related collateral obligation.

Loss mitigation obligations allow the issuer to participate in
potential new financing initiatives by the borrower in default.
This feature aims to mitigate the risk of other market participants
taking advantage of CLO restrictions, which typically do not allow
the CLO to participate in a defaulted entity's new financing
request. Hence, this feature increases the chance of a higher
recovery for the CLO. While the objective is positive, it can also
lead to par erosion, as additional funds will be placed with an
entity that is under distress or in default. This may cause greater
volatility in our ratings if the positive effect of such
obligations does not materialize. In S&P's view, the presence of a
bucket for loss mitigation obligations, the restrictions on the use
of interest and principal proceeds to purchase such assets, and the
limitations in reclassifying proceeds received from such assets
from principal to interest help to mitigate the risk.

The purchase of loss mitigation obligations is not subject to the
reinvestment criteria or the eligibility criteria. The issuer may
purchase loss mitigation obligations using interest proceeds,
principal proceeds, or amounts in the collateral enhancement
account. The use of interest proceeds to purchase loss mitigation
obligations is subject to:

-- The manager determining that after such purchase there are
sufficient interest proceeds to pay interest on all the rated notes
on the upcoming payment date.

The use of principal proceeds is subject to:

-- Passing par coverage tests;

-- The manager having built sufficient excess par in the
transaction so that the aggregate collateral balance is equal to or
exceeds the portfolio's reinvestment target par balance after the
reinvestment, or, if not the case, the amount of principal proceeds
to be applied to such purchase does not exceed the outstanding
principal balance of the related defaulted obligation or credit
impaired obligation;

-- The obligation meeting the restructured obligation criteria;

-- The obligation ranking senior to, or pari passu with, the
related defaulted or credit impaired obligation;

-- The obligation not maturing after the maturity date; and

-- The obligation having a par value greater than or equal to its
purchase price.
Loss mitigation obligations purchased with principal proceeds,
which have limited deviation from the eligibility criteria due to
meeting the restructured obligation criteria, will receive
collateral value credit for principal balance and
overcollateralization carrying value purposes. Loss mitigation
obligations purchased with interest or collateral enhancement
proceeds will receive zero credit. Any distributions received from
loss mitigation obligations purchased with the use of principal
proceeds will form part of the issuer's principal account proceeds
and cannot be recharacterized as interest. Any other amounts can
form part of the issuer's interest account proceeds. The manager
may, at their sole discretion, elect to classify amounts received
from any loss mitigation obligations as principal proceeds.

In this transaction, if a loss mitigation obligation that was
originally purchased with interest subsequently becomes an eligible
collateral debt obligation, the manager can designate it as such
and transfer out of the principal account into the interest account
the market value of the asset. S&P considered the alignment of
interests for this re-designation and considered, for example, that
the reinvestment criteria has to be satisfied following such
re-designation and that the market value of the eligible collateral
debt obligation cannot be self-marked by the manager, among other
factors.

The cumulative exposure to loss mitigation obligations purchased
with principal is limited to 5% of the target par amount. The
cumulative exposure to loss mitigation obligations purchased with
principal and interest is limited to 10% of the target par amount.

Rating rationale

Under the transaction documents, the rated notes pay quarterly
interest unless a frequency switch event occurs. Following this,
the notes will switch to semiannual payments. The portfolio's
reinvestment period will end approximately 4.4 years after
closing.

The portfolio is well-diversified, primarily comprising broadly
syndicated speculative-grade senior-secured term loans and
senior-secured bonds. Therefore, S&P has conducted its credit and
cash flow analysis by applying our criteria for corporate cash flow
CDOs.

S&P said, "In our cash flow analysis, we used the EUR400 million
target par amount, the covenanted weighted-average spread (3.80%),
the reference weighted-average coupon (4.50%), and the actual
weighted-average recovery rates of the portfolio. We applied
various cash flow stress scenarios, using four different default
patterns, in conjunction with different interest rate stress
scenarios for each liability rating category.

"Under our structured finance sovereign risk criteria, we consider
that the transaction's exposure to country risk is sufficiently
mitigated at the assigned ratings.

"Until the end of the reinvestment period on Oct. 15, 2025, the
collateral manager may substitute assets in the portfolio for so
long as our CDO Monitor test is maintained or improved in relation
to the initial ratings on the notes. This test looks at the total
amount of losses that the transaction can sustain as established by
the initial cash flows for each rating, and it compares that with
the current portfolio's default potential plus par losses to date.
As a result, until the end of the reinvestment period, the
collateral manager may through trading deteriorate the
transaction's current risk profile, as long as the initial ratings
are maintained.

"The transaction's documented counterparty replacement and remedy
mechanisms adequately mitigate its exposure to counterparty risk
under our current counterparty criteria.

"The transaction's legal structure and framework are bankruptcy
remote, in line with our legal criteria.

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe our ratings are
commensurate with the available credit enhancement for the class
A-loan and class X to F notes. Our credit and cash flow analysis
indicates that the available credit enhancement for the class B-1,
B-2, C, D, E, and F notes could withstand stresses commensurate
with higher rating levels than those we have assigned. However, as
the CLO will be in its reinvestment phase starting from closing,
during which the transaction's credit risk profile could
deteriorate, we have capped our ratings assigned to the notes.

"In addition to our standard analysis, to provide an indication of
how rising pressures among speculative-grade corporates could
affect our ratings on European CLO transactions, we have also
included the sensitivity of the ratings on the class X to E notes
to five of the 10 hypothetical scenarios we looked at in our
publication "How Credit Distress Due To COVID-19 Could Affect
European CLO Ratings," published on April 2, 2020.

"As our ratings analysis makes additional considerations before
assigning ratings in the 'CCC' category, and we would assign a 'B-'
rating if the criteria for assigning a 'CCC' category rating are
not met, we have not included the above scenario analysis results
for the class F notes."

Environmental, social, and governance (ESG) credit factors

S&P said, "We regard the exposure to ESG credit factors in the
transaction as being broadly in line with our benchmark for the
sector. Primarily due to the diversity of the assets within CLOs,
the exposure to environmental credit factors is viewed as below
average, social credit factors are below average, and governance
credit factors are average. For this transaction, the documents
prohibit assets from being related to the following industries if
certain conditions are met (non-exhaustive list): tobacco,
manufacturing or marketing of controversial weapons, thermal coal
production, speculative extraction of oil and gas, and obligors
which violate the ten principles of United Nations Global Compact.
Accordingly, since the exclusion of assets from these industries
does not result in material differences between the transaction and
our ESG benchmark for the sector, no specific adjustments have been
made in our rating analysis to account for any ESG-related risks or
opportunities."

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."

The transaction securitizes a portfolio of primarily senior-secured
leveraged loans and bonds, and it is managed by KKR Credit Advisors
(Ireland) Unlimited Co.

  Ratings List

  CLASS   RATING      AMOUNT   INTEREST RATE (%)    CREDIT
                    (MIL. EUR)                   ENHANCEMENT (%)
  X       AAA (sf)     1.60       3mE + 0.30          N/A
  A-loan  AAA (sf)   125.00       3mE + 0.84        38.00
  A       AAA (sf)   123.00       3mE + 0.84        38.00
  B-1     AA (sf)     25.00       3mE + 1.50        28.00
  B-2     AA (sf)     15.00             1.95        28.00
  C       A (sf)      25.60       3mE + 2.05        21.60
  D       BBB (sf)    26.00       3mE + 3.05        15.10
  E       BB- (sf)    21.50       3mE + 5.76         9.73
  F       B- (sf)     12.00       3mE + 8.15         6.73
  Sub     NR          32.30              N/A          N/A

  NR--Not rated.
  N/A--Not applicable.
  3mE--Three-month Euro Interbank Offered Rate.


BARINGS EURO 2019-2: Fitch Affirms B- Rating on Class F Notes
-------------------------------------------------------------
Fitch Ratings has affirmed Barings Euro CLO 2019-2 DAC and revised
the Outlooks on the class C to F notes to Stable from Negative.

      DEBT                RATING          PRIOR
      ----                ------          -----
Barings Euro CLO 2019-2 DAC

A-1 XS2091900790   LT  AAAsf   Affirmed   AAAsf
A-2 XS2091901418   LT  AAAsf   Affirmed   AAAsf
B-1 XS2091902069   LT  AAsf    Affirmed   AAsf
B-2 XS2091903117   LT  AAsf    Affirmed   AAsf
C XS2091903380     LT  Asf     Affirmed   Asf
D XS2091904198     LT  BBB-sf  Affirmed   BBB-sf
E XS2091904602     LT  BB-sf   Affirmed   BB-sf
F XS2091905161     LT  B-sf    Affirmed   B-sf
X XS2091900527     LT  AAAsf   Affirmed   AAAsf

TRANSACTION SUMMARY

Barings Euro CLO 2019-2 DAC is a cash flow CLO mostly comprising
senior secured obligations. The transaction is still in the
reinvestment period and is actively managed by the asset manager.

KEY RATING DRIVERS

Improved Portfolio Quality: The portfolio's weighted average credit
quality is 'B'/'B-'. By Fitch's calculation, the portfolio weighted
average rating factor (WARF) is 35.9, which has improved by about
two points from the last review in July 2020. Assets with a
Fitch-derived rating (FDR) on Negative Outlook make up 23% of the
portfolio balance. The portfolio WARF would increase by 1.2 points
in the coronavirus baseline analysis. Assets with a FDR in the
'CCC' category or below make up about 12% of the collateral balance
if including 1% unrated assets.

The transaction is almost at par. The Fitch WARF test and the 'CCC'
test are both failing. Other than these, all other tests are
reported as passing. The portfolio is diversified with the top 10
obligors and the largest obligor at below 17% and 2%,
respectively.

Senior secured obligations comprise 97% of the portfolio, which
have more favourable recovery prospects than second-lien, unsecured
and mezzanine assets. Fitch's weighted average recovery rate of the
current portfolio based on the investor report is 67.1%.

Resilient to Coronavirus Stress: The affirmations of all notes and
the revision of the Outlooks on the class C to F notes to Stable
from Negative reflect the resilience of the ratings based on the
current portfolio analysis and the sensitivity analysis ran in
light of the coronavirus pandemic. Fitch recently updated its CLO
coronavirus stress scenario to assume half of the corporate
exposure on Negative Outlook is downgraded by one notch (floored at
'CCC+') instead of 100%.

Model Implied Rating Deviation

The class E and F notes' ratings are one notch above the respective
model-implied rating. The class E and F notes show a small
shortfall only in the back-loaded default timing, which is not
Fitch's immediate expectation. In Fitch's view, both notes are
compatible with their current ratings given the improvement in the
portfolio performance. As such, the likelihood of downgrade to the
next lower rating category is low. Further, the class F notes'
credit enhancement provides a safety margin to the notes. 'CCC'
means that default is a possibility and this is not the case for
the class F notes.

RATING SENSITIVITIES

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

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

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

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

-- Downgrades may occur if build-up of the notes' credit
    enhancement following amortisation does not compensate for a
    higher loss expectation than initially assumed due to
    unexpected high level of default and portfolio deterioration.
    However, this is not Fitch's base case scenario.

-- Coronavirus Downside Sensitivity: Fitch has added a
    sensitivity analysis that contemplates a more severe and
    prolonged economic stress in the major economies. The downside
    sensitivity applies a notch downgrade to the FDRs of the
    corporate exposures on Negative Outlook (floored at CCC+).
    This sensitivity results in no downgrades of any of the notes
    except for the class D to F notes, which would be one notch
    lower.

BEST/WORST CASE RATING SCENARIO

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

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

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

DATA ADEQUACY

Barings Euro CLO 2019-2 DAC

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

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

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

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


BLUEMOUNTAIN FUJI III: Fitch Assigns Final B- Rating on F Notes
---------------------------------------------------------------
Fitch Ratings has assigned BlueMountain Fuji Euro CLO III's
refinancing notes final ratings.

DEBT                 RATING             PRIOR
----                 ------             -----
BlueMountain Fuji Euro CLO III

A-1 R            LT  AAAsf  New Rating   AAA(EXP)sf
A-2 R            LT  AAAsf  New Rating   AAA(EXP)sf
B-R              LT  AAsf   New Rating   AA(EXP)sf
C-R              LT  Asf    New Rating   A(EXP)sf
D-R              LT  BBBsf  New Rating   BBB(EXP)sf
E XS1861114863   LT  BBsf   Affirmed     BBsf
F XS1861116991   LT  B-sf   Affirmed     B-sf

TRANSACTION SUMMARY

BlueMountain Fuji Euro CLO III is a cash flow collateralised loan
obligation (CLO). The proceeds of this issuance have been used to
redeem the old notes. The portfolio is managed by BlueMountain Fuji
Management, LLC. The refinanced CLO envisages an unchanged
reinvestment period ending in July 2022, and a nine-month weighted
average life (WAL) extension.

KEY RATING DRIVERS

'B' Portfolio Credit Quality: Fitch places the average credit
quality of obligors in the 'B' range. The Fitch-weighted average
rating factor (WARF) of the current portfolio is 34.05, below the
current covenant of 35.00.

High Recovery Expectations: The portfolio comprises 98.62% senior
secured obligations. Fitch views the recovery prospects for these
assets as more favourable than for second-lien, unsecured and
mezzanine assets. The Fitch-weighted average recovery rate (WARR)
of the current portfolio is 64.57%. When carrying out the stress
portfolio analysis, Fitch applied a haircut of 2% to the WARR to
account for the older Fitch Recovery Rate definition included in
the transaction's documents.

Diversified Asset Portfolio: The transaction has Fitch matrices
corresponding to maximum permissible exposures to the top 10
obligors of 15.00% and 27.50% (currently 11.33%), ensuring the
portfolio remains sufficiently diversified throughout its remaining
life. 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: The transaction's reinvestment period ends in
July 2022. The reinvestment criterion is similar to other European
transactions. On the refinancing date, the issuer has extended the
WAL covenant by nine months. Fitch's analysis is based on a
stressed-case portfolio with the aim of testing the robustness of
the transaction structure against its covenants and portfolio
guidelines.

Cash Flow Modelling: Fitch used a customised proprietary cash flow
model to replicate the principal and interest waterfalls and the
various structural features of the transaction, and to assess their
effectiveness, including the structural protection provided by
excess spread diverted through the par value and interest coverage
tests.

Deviation from Model-implied Ratings: The model-implied ratings
(MIRs) for the class B to D notes is one notch higher the current
rating. Fitch deviated from the MIR as the breakeven default rate
cushions at the MIR were small and could easily erode if the
portfolio performance deteriorated.

RATING SENSITIVITIES

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

-- A reduction of the default rate (RDR) at all rating levels by
    25% of the mean RDR and an increase in the recovery rate (RRR)
    by 25% at all rating levels would result in an upgrade of up
    to five notches for the refinanced notes and would not result
    in an upgrade of the class A notes, which are already at the
    highest rating on Fitch's scale and cannot be upgraded.

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

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

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

-- An increase of the RDR at all rating levels by 25% of the mean
    RDR and a decrease of the RRR by 25% at all rating levels
    would result in a downgrade of no more than six notches for
    the refinanced notes.

-- Coronavirus Baseline Stress 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%. The Stable Outlooks on all the notes
    reflect the default rate cushion in the sensitivity analysis
    ran in light of the coronavirus pandemic.

-- Coronavirus Potential Severe Downside Stress Scenario: Fitch
    has added a sensitivity analysis that contemplates a more
    severe and prolonged economic stress caused by a re-emergence
    of infections in the major economies. The potential severe
    downside stress incorporates the following stresses: applying
    a notch downgrade to all the corporate exposure on Negative
    Outlook. This scenario shows resilience at the current ratings
    for the refinanced notes.

BEST/WORST CASE RATING SCENARIO

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

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

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

DATA ADEQUACY

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

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

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

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


BLUEMOUNTAIN FUJI III: Moody's Affirms B2 Rating on Class F Notes
-----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to refinancing notes by BlueMountain
Fuji EUR CLO III DAC (the "Issuer"):

EUR207,000,000 Class A-1 Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aaa (sf)

EUR10,000,000 Class A-2 Senior Secured Fixed Rate Notes due 2031,
Definitive Rating Assigned Aaa (sf)

EUR32,900,000 Class B Senior Secured Floating Rate Notes due 2031,
Definitive Rating Assigned Aa2 (sf)

EUR23,100,000 Class C Deferrable Mezzanine Floating Rate Notes due
2031, Definitive Rating Assigned A2 (sf)

EUR17,500,000 Class D Deferrable Mezzanine Floating Rate Notes due
2031, Definitive Rating Assigned Baa2 (sf)

At the same time, Moody's affirmed the outstanding notes which have
not been refinanced:

EUR24,500,000 Class E Deferrable Junior Floating Rate Notes due
2031, Affirmed Ba2 (sf); previously on Sep 4, 2018 Assigned Ba2
(sf)

EUR10,500,000 Class F Deferrable Junior Floating Rate Notes due
2031, Affirmed B2 (sf); previously on Sep 4, 2018 Assigned B2 (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.

Moody's rating affirmations of the Class E and F notes are a result
of the refinancing, which has no impact on the ratings of the
notes.

As part of this refinancing, the Issuer has extended the weighted
average life test date by nine months to December 4, 2027. It has
also amended certain definitions, including the definition of
"Adjusted Weighted Average Moody's Rating Factor", and minor
features.

The Issuer is a managed cash flow CLO. At least 90% of the
portfolio must consist of secured senior loans or senior secured
bonds and up to 10% of the portfolio may consist of unsecured
senior loans, second-lien loans, high yield bonds and mezzanine
loans.

BlueMountain Fuji Management, LLC will continue to 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
remaining reinvestment period which will end in July 2022.
Thereafter, subject to certain restrictions, purchases are
permitted using principal proceeds from unscheduled principal
payments and proceeds from sales of credit risk obligations and
credit improved 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:

Performing par and principal proceeds balance: EUR349.5 million

Defaulted Par: EUR0 as of April 1, 2021

Diversity Score: 60

Weighted Average Rating Factor (WARF): 3190

Weighted Average Spread (WAS): 3.59%

Weighted Average Coupon (WAC): 4.52%

Weighted Average Recovery Rate (WARR): 45.42%

Weighted Average Life (WAL) Test date: December 4, 2027

BNPP AM 2021: Moody's Assigns (P)B3 Rating to Class F Notes
-----------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by BNPP AM Euro
CLO 2021 Designated Activity Company (the "Issuer"):

EUR1,600,000 Class X Senior Secured Floating Rate Notes due 2034,
Assigned (P)Aaa (sf)

EUR248,000,000 Class A Senior Secured Floating Rate Notes due
2034, Assigned (P)Aaa (sf)

EUR26,000,000 Class B-1 Senior Secured Floating Rate Notes due
2034, Assigned (P)Aa2 (sf)

EUR13,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2034,
Assigned (P)Aa2 (sf)

EUR24,300,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)A2 (sf)

EUR28,200,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)Baa3 (sf)

EUR21,500,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)Ba3 (sf)

EUR12,000,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)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 is a managed cash flow CLO. At least 90% of the
portfolio must consist of secured senior loans or senior secured
bonds and up to 10% of the portfolio may consist of unsecured
senior loans, second-lien loans, high yield bonds and mezzanine
loans. The underlying portfolio is fully ramped as of the closing
date.

BNP Paribas Asset Management France SAS ("BNPP AM") 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-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 and credit improved obligations.

Interest and principal amortisation amounts due to the Class X
Notes are paid pro rata with payments to the Class A Notes. The
Class X Notes amortise by EUR200,000 over 8 payment dates starting
on the 2nd payment date.

In addition to the eight classes of notes rated by Moody's, the
Issuer will issue EUR34,300,000 of Subordinated Notes due 2034
which are not rated.

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:

Performing par and principal proceeds balance: EUR400,000,000

Diversity Score: 44*

Weighted Average Rating Factor (WARF): 3000

Weighted Average Spread (WAS): 3.55%

Weighted Average Coupon (WAC): 4.00%

Weighted Average Recovery Rate (WARR): 44.0%

Weighted Average Life (WAL): 8.5 years


PENTA CLO 9: Fitch Assigns Final B-(EXP) Rating on Class F Debt
---------------------------------------------------------------
Fitch Ratings has assigned Penta CLO 9 DAC expected ratings.

The assignment of final ratings is contingent on the final
documents conforming to information already received.

DEBT                            RATING
----                            ------
Penta CLO 9 DAC

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

TRANSACTION SUMMARY

Penta CLO 9 DAC is a securitisation of mainly senior secured
obligations (at least 90%) with a component of senior unsecured,
mezzanine, second-lien loans and high-yield bonds. Note proceeds
will be used to fund a portfolio with a target par of EUR400
million. The portfolio will be actively managed by Partners Group.
The collateralised loan obligation (CLO) envisages a 5.05-year
reinvestment period and a 9.05-year weighted average life (WAL).

KEY RATING DRIVERS

Average Portfolio Credit Quality (Neutral): Fitch places the
average credit quality of obligors in the 'B'/'B-' category. The
Fitch weighted average rating factor (WARF) of the identified
portfolio is 33.23, below the maximum WARF covenant for assigning
expected ratings of 35.5.

High Recovery Expectations (Positive): At least 90% of the
portfolio will comprise senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch weighted
average recovery rate (WARR) of the identified portfolio is 63.28%,
above the minimum WARR covenant for assigning expected ratings of
62%.

Diversified Asset Portfolio (Positive): The indicative maximum
exposure of the 10-largest obligors for assigning the expected
ratings is 20% of the portfolio balance and fixed-rate obligations
are limited to 5% of the portfolio. The transaction also includes
various concentration limits, including the maximum exposure to the
three-largest Fitch-defined industries in the portfolio at 40%.
These covenants ensure that the asset portfolio will not be exposed
to excessive concentration.

Portfolio Management (Positive): The transaction has a 5.05-year
reinvestment period and includes reinvestment criteria similar to
those of other European transactions. Fitch's analysis is based on
a stressed-case portfolio with the aim of testing the robustness of
the transaction structure against its covenants and portfolio
guidelines.

Deviation from Model-Implied Rating (Negative): The expected
ratings of the class B, C, D, E and F notes are one notch higher
than their respective model-implied ratings (MIR). The expected
ratings are supported by the significant default cushion on the
identified portfolio due to the notable buffer between the
covenants of the transaction and the portfolio's parameters
including a higher diversity (123 obligors) for the identified
portfolio than the stressed portfolio.

All notes pass the assigned ratings based on the identified
portfolio and the coronavirus baseline sensitivity analysis that is
used for surveillance. The class F notes' deviation from the MIR
reflects the agency's view that the tranche has a significant
margin of safety given the credit enhancement level at closing. The
notes do not present a "real possibility of default", which is the
definition of 'CCC' in Fitch's Rating Definitions.

RATING SENSITIVITIES

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

-- A reduction of the default rate (RDR) at all rating levels by
    25% of the mean RDR and an increase in the recovery rate (RRR)
    by 25% at all rating levels would result in an upgrade of up
    to five notches depending on the notes, except for the class A
    notes, which are already at the highest rating on Fitch's
    scale and cannot be upgraded.

-- At closing, Fitch will use a standardised stressed 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. This is because the portfolio
    credit quality may still deteriorate, not only by natural
    credit migration, but also because of reinvestment.

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

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

-- An increase of the RDR at all rating levels by 25% of the mean
    RDR and a decrease of the RRR by 25% at all rating levels will
    result in downgrades of no more than five notches depending on
    the notes.

Coronavirus Baseline Stress 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%. The Stable Outlook on all
the notes reflects the default-rate cushion in the sensitivity
analysis Fitch ran in the light of the coronavirus pandemic.

Coronavirus Severe Downside Stress Scenario

Fitch has added a sensitivity analysis that contemplates a more
severe and prolonged economic stress caused by a re-emergence of
infections in the major economies. This downside sensitivity
incorporates a single-notch downgrade to all the corporate exposure
on Negative Outlook. This scenario shows resilience at the current
ratings for the class A to E notes and a minor shortfall for the
class F notes.

BEST/WORST CASE RATING SCENARIO

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

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

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

DATA ADEQUACY

The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognised statistical rating organisations and/or European
securities and markets authority-registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk-presenting entities.

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


QUINN INSURANCE: Central Bank Inquiry Cost Almost EUR1.9 Million
----------------------------------------------------------------
Will Goodbody at RTE reports that a Central Bank inquiry into
alleged regulatory breaches at Quinn Insurance Limited (QIL) prior
to its collapse in 2010 cost the bank almost EUR1.9 million.

According to the regulator's annual report for 2020, the inquiry
formally ended last year after settlement agreements were reached
with two former directors of the company, RTE discloses.

Details of the settlements with Liam McCaffrey and Kevin Lunney
were never disclosed by the parties, RTE notes.

According to RTE, the inquiry, set up under the Central Bank's
Administrative Sanctions Procedure, was focused on one alleged
prescribed contravention by the two former directors.

The probe involved eight private inquiry management meetings from
2016 to 2019, as well as seven days of public hearings that began
in May of 2019, RTE discloses.

Quinn Insurance Limited collapsed into administration in early 2010
after the discovery of a massive financial hole in the firm's
accounts, estimated to be more than EUR800 million, RTE recounts.
It was later sold to Liberty Insurance for EUR1, RTE states.

Eight years ago, the Central Bank fined QIL EUR5 million after it
found that it had failed between October 2005 and March 2010 to
maintain adequate solvency margins and had insufficient internal
control mechanisms, RTE relays.

The regulator also carried out another investigation to establish
whether there had been breaches of regulations by management of
Quinn Insurance between 2005 and 2008.

It found there were reasonable grounds to suspect that "certain
persons who were concerned in the management of Quinn Insurance
participated in the commission of a suspected prescribed
contravention" of an EU non-life insurance regulation, RTE relays.

The bank launched a formal inquiry in 2015 into the conduct of Mr.
McCaffrey and Mr. Lunney, RTE recounts.

The suspected breach related to the soundness and adequacy of QIL's
administrative and accounting procedures and internal control
mechanisms relating to the management and monitoring of the assets
of QIL's subsidiaries, according to RTE.


SCULPTOR EUROPEAN VIII: Moody's Gives (P)B3 Rating to Cl. F Notes
-----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to refinancing debts to be issued by
Sculptor European CLO VIII DAC (the "Issuer"):

EUR93,000,000 Class A Senior Secured Floating Rate Loan due 2034,
Assigned (P)Aaa (sf)

EUR91,500,000 Class A Senior Secured Floating Rate Notes due 2034,
Assigned (P)Aaa (sf)

EUR18,500,000 Class B-1 Senior Secured Floating Rate Notes due
2034, Assigned (P)Aa2 (sf)

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

EUR24,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)A2 (sf)

EUR18,750,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)Baa3 (sf)

EUR15,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)Ba3 (sf)

EUR9,000,000 Class F Senior Secured Deferrable Floating Rate Notes
due 2034, Assigned (P)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 is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured obligations and up to 10%
of the portfolio may consist of senior unsecured obligations,
second-lien loans, mezzanine obligations and high yield bonds. The
portfolio is expected to be approximately 75% ramped as of the
closing date and to comprise of predominantly corporate loans to
obligors domiciled in Western Europe. The remainder of the
portfolio will be acquired during the 6 month ramp-up period in
compliance with the portfolio guidelines.

Sculptor Europe Loan Management Limited 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
4.5 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 or credit improved obligations. Additionally, the
issuer has the ability to purchase loss mitigation loans using
principal proceeds subject to a set of conditions including
satisfaction of the par coverage tests.

In addition to the seven classes of notes rated by Moody's, the
Issuer will issue EUR8.0 million of Class Z Notes and EUR24.9
million of Subordinated Notes which are not rated. The Class Z
Notes accrue interest in an amount equivalent to a certain
proportion of the subordinated management fees.

The transaction incorporates interest and par coverage tests which,
if triggered, divert interest and principal proceeds to pay down
the debt 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 debt performance is subject to uncertainty. The debt
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 debt
performance.

Moody's modelled 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:

Target Par Amount: EUR300,000,000

Diversity Score: 50

Weighted Average Rating Factor (WARF): 2940

Weighted Average Spread (WAS): 3.75%

Weighted Average Coupon (WAC): 3.50%

Weighted Average Recovery Rate (WARR): 43%

Weighted Average Life (WAL): 8.5 years


ST. PAUL'S VII: Moody's Assigns (P)B3 Rating to Class F-R Notes
---------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to the Notes to be issued by St.
Paul's CLO VII DAC (the "Issuer"):

EUR244,000,000 Class A-R Senior Secured Floating Rate Notes due
2034, Assigned (P)Aaa (sf)

EUR32,000,000 Class B-1-R Senior Secured Floating Rate Notes due
2034, Assigned (P)Aa2 (sf)

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

EUR24,000,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)A2 (sf)

EUR28,800,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)Baa3 (sf)

EUR21,200,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)Ba3 (sf)

EUR12,000,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)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 is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured obligations and up to 10%
of the portfolio may consist of senior unsecured obligations,
second-lien loans, mezzanine obligations and high yield bonds. The
portfolio is expected to be over 95% ramped at closing date with
the remaining assets being acquired prior to the effective date and
to comprise of predominantly corporate loans to obligors domiciled
in Western Europe.

Intermediate Capital Managers Limited 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 4.5 years
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 or credit improved obligations.

On March 21, 2017 (the "Original Issue Date"), the Issuer also
issued EUR43,990,000 of Subordinated Notes, which will remain
outstanding.

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: EUR400,000,000

Diversity Score: 48

Weighted Average Rating Factor (WARF): 3140

Weighted Average Spread (WAS): 3.70%

Weighted Average Coupon (WAC): 4.00%

Weighted Average Recovery Rate (WARR): 44.20%

Weighted Average Life (WAL): 8.5 years




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

BCC NPL 2019: DBRS Confirms CCC Rating on Class B Notes
-------------------------------------------------------
DBRS Ratings GmbH confirmed its ratings on the Class A and Class B
Notes issued by BCC NPLs 2019 S.r.l. (the Issuer) at BBB (sf) and
CCC (sf), respectively, and maintained a Negative trend for both
classes of notes.

The transaction entails the issuance of Class A, Class B, and Class
J Notes (collectively, the notes) backed by a mixed pool of Italian
nonperforming secured and unsecured loans originated by 68 Italian
banks (collectively, the Originators).

The gross book value (GBV) of the loan pool was approximately EUR
1.32 billion as of the December 31, 2018 selection date. The
securitized portfolio is composed of secured loans, representing
approximately 73.8% of the GBV, with unsecured loans representing
the remaining 26.2% of the GBV. Residential and industrial real
estate properties represent 44.2% and 16.2% of the pool by
first-lien real estate value, respectively.

The receivables are serviced by doValue S.p.A. (doValue or the
Servicer), which operates as servicer in the transaction.
Securitization Services S.p.A. operates as the backup servicer in
the transaction.

RATING RATIONALE

The confirmations follow a review of the transaction and are based
on the following analytical considerations:

-- Transaction performance: assessment of portfolio recoveries as
of December 31, 2020, focusing on: (1) a comparison between actual
collections and the Servicer's initial business plan forecast; (2)
the collection performance observed over the past months, including
the period following the outbreak of the Coronavirus Disease
(COVID-19) pandemic; and (3) a comparison between the current
performance and DBRS Morningstar's initial expectations.

-- The Servicer's updated business plan as of December 2020,
received in April 2021, and the comparison with the initial
collection expectations.

-- Portfolio characteristics: loan pool composition and evolution
of its core features since issuance.

-- Transaction liquidating structure: the order of priority
entails a fully sequential amortization of the notes – i.e., the
Class B Notes will begin to amortize following the full repayment
of the Class A Notes and the Class J Notes will amortize following
the repayment of the Class B Notes. Additionally, interest payments
on the Class B Notes become subordinated to principal payments on
the Class A Notes if the Cumulative Collection Ratio or Present
Value (PV) Cumulative Profitability Ratio are lower than 90%. These
triggers were not breached on the January 2021 interest payment
date, with the actual figures being 154.8% and 103.4%,
respectively, according to the Servicer.

-- Liquidity support: the transaction benefits from an amortizing
cash reserve providing liquidity to the structure covering against
potential interest shortfall on the Class A Notes and senior fees.
The cash reserve target amount is equal to 3% of the Class A Notes
principal outstanding and is currently fully funded.

According to the latest payment report from January 2021, the
outstanding principal amounts of the Class A, Class B, and Class J
Notes were equal to EUR 335.1 million, EUR 53.0 million, and EUR
13.2 million, respectively. The balance of the Class A Notes has
amortized by approximately 5.6% since issuance. The current
aggregated transaction balance is EUR 401.3 million.

As of December 2020, the transaction was performing above the
Servicer's initial expectations. The actual cumulative gross
collections equaled EUR 36.0 million, whereas the Servicer's
initial business plan estimated cumulative gross collections of EUR
22.9 million for the same period. Therefore, as of December 2020,
the transaction was overperforming by EUR 13.1 million (57.2%)
compared with initial expectations.

At issuance, DBRS Morningstar estimated cumulative gross
collections for the same period of EUR 14.5 million at the BBB (sf)
stressed scenario and EUR 21.5 million at the CCC (sf) stressed
scenario. Therefore, as of December 2020, the transaction was
performing above DBRS Morningstar's initial stressed expectations.

In April 2021, the Servicer provided DBRS Morningstar with a
revised business plan. In this updated business plan, the Servicer
assumed recoveries below initial expectations. The total cumulative
gross collections from the updated business plan account for EUR
618.2 million, which is 4.4% lower compared with the EUR 646.8
million expected in the initial business plan.

Without including actual collections, the Servicer' expected future
collections from January 2021 are now accounting for EUR 582.2
million (EUR 623.9 million in the initial business plan). Hence,
the Servicer' expectation for collection on the remaining portfolio
was revised downwards. The updated DBRS Morningstar BBB (sf) rating
stress assumes a haircut of 22.5% to the Servicer' latest business
plan, considering future expected collections. In DBRS
Morningstar's CCC (sf) scenario, the Servicer's updated forecast
was only adjusted in terms of actual collections to date, and
timing of future expected collections.

The final maturity date of the transaction is in January 2044.

DBRS Morningstar analyzed the transaction structure using Intex
DealMaker.

The Coronavirus Disease (COVID-19) and the resulting isolation
measures have resulted in a sharp economic contraction, increases
in unemployment rates, and reduced investment activities. DBRS
Morningstar anticipates that collections in European NPL
securitizations will continue to be disrupted in the coming months
and that the deteriorating macroeconomic conditions could
negatively affect recoveries from NPLs and the related real estate
collateral. The rating is based on additional analysis and
adjustments to expected performance as a result of the global
efforts to contain the spread of the coronavirus. For this
transaction, DBRS Morningstar incorporated its expectation of a
moderate medium-term decline in property prices; however, partial
credit to house price increases from 2023 onwards is given in
noninvestment grade scenarios. The Negative trend reflects the
ongoing uncertainty amid the coronavirus pandemic.

Notes: All figures are in euros unless otherwise noted.




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

CIDRON OLLOPA: Moody's Affirms B2 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service has affirmed the B2 corporate family
rating and B2-PD probability of default rating of Cidron Ollopa
Holding B.V. (Sunrise). At the same time, Moody's has affirmed the
B1 instrument rating to the senior secured bank facilities. The
outlook on all ratings remains stable.

RATINGS RATIONALE

The B2 rating reflects Sunrise's strong market share in the niche
mobility market, with high brand recognition; high barriers to
market entry; the company's focus on the complex rehab segment of
the market, which is a higher-margin and less commoditised than
standard rehab segment, the company's good Moody's adjusted free
cash flow (FCF) generation; and the good underlying drivers of
demand for mobility products, which is underpinned by social
considerations.

Conversely, Sunrise's rating is constrained by the company's high
Moody's-adjusted leverage of 7.9x as of March 31, 2021, which has
deteriorated from 6.2x at end of fiscal 2019 (ending June) because
of the coronavirus pandemic; its exposure to pricing pressure and
changes in reimbursement regimes, although partly mitigated by its
strong geographical diversification; its dependency on the niche
mobility market; and its reliance on third-party manufacturers for
the production of almost all mobility product components, which
exposes the company to potential supply-chain disruptions.

Over the next 12 to 18 months, Moody's expects Sunrise's top line
revenue will grow in the low teens in percentage terms, supported
by the significant backlog of postponed procedures that will
eventually take place, the company's leading position in the niche
mobility market, and by the good underlying social drivers of
demand. The agency forecasts that Moody's adjusted gross leverage
will reduce to between 5.8x and 6.3x over the next 12 to 18 months,
and that the company will generate Moody's adjusted FCF of around
EUR25 million to EUR30 million over the same period. However,
Sunrise's Moody's adjusted gross leverage has remained above its
rating guidance over the past two fiscal years, weakly positioning
the company on its rating category.

RATING OUTLOOK

The stable outlook reflects Moody's expectation that Sunrise will
reduce Moody's adjusted gross leverage below 6.5x by end of fiscal
2022 supported by organic revenue growth, while maintaining good
liquidity and FCF generation. The stable outlook also reflects the
agency's expectation that there will be no major impact on earnings
from potential reimbursement reductions or material debt-funded
acquisitions.

LIQUIDITY PROFILE

Moody's expects Sunrise's liquidity to remain good over the next
12-18 months, supported by EUR68 million of cash and cash
equivalents as of March 31, 2021, a revolving credit facility (RCF)
of EUR70 million of which EUR67 million is undrawn, and FCF/debt in
the mid-teens in percentage terms. The RCF is subject to a
springing total net leverage covenant set at 40% capacity, which is
only tested when more than 40% of the RCF is drawn. Moody's expects
the company will have significant capacity against this threshold,
if tested.

STRUCTURAL CONSIDERATIONS

The PDR at B2-PD is in line with the CFR, reflecting Moody's
assumption of a 50% recovery rate for a debt structure
incorporating senior and junior secured debt. The current
outstanding senior secured debt instruments include EUR445 million
of first-lien facilities due April 2025 and GBP106.8 million
equivalent of second-lien facilities due April 2026.

All debt instruments share the same collateral package including
first priority security over all shares, intercompany receivables
and material bank accounts. In particular, the debt instruments
benefit from guarantees by the parent company and significant
subsidiaries that must represent at least 80% of consolidated
EBITDA. The first-lien facilities rank ahead of the second-lien
facilities in the case of an enforcement of collateral and
therefore the first-lien facilities are rated B1, one notch ahead
of the CFR.

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

Positive rating pressure could arise if (1) Moody's adjusted gross
debt/EBITDA decreases below 5.0x on a sustained basis, and (2)
Sunrise's Moody's adjusted FCF/debt were to increase above 10%
sustainably.

Negative rating pressure could arise if (1) Moody's adjusted gross
debt/EBITDA does not decrease below 6.5x by end of fiscal 2022, or
(2) Sunrise's Moody's adjusted FCF/debt were to fall below 5.0%
sustainably or if its liquidity weakens, or (3) major reimbursement
cuts occur in one of its key markets, or (4) the company embarks on
a sizeable debt-financed acquisition or distributes material
amounts of cash to shareholders.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Medical Product
and Device Industry published in June 2017.

COMPANY PROFILE

Cidron Ollopa Holding B.V. (Sunrise) is a global leading provider
of premium mobility products, including manual and powered
wheelchairs, mobility scooters and other mobility aids. For the
last twelve months to March 2021, the company reported EUR443
million of revenue and EUR84 million of company adjusted EBITDA.
The company has a global footprint, with a manufacturing and
distribution presence in all regions of the world. The company was
acquired in a tertiary leveraged buyout by Nordic Capital on June
2015.


MAS SECURITIES BV: Fitch Assigns Final BB Rating on EUR300MM Bond
-----------------------------------------------------------------
Fitch Ratings has assigned MAS Securities BV's recent EUR300
million senior unsecured bond a final rating of 'BB', in line with
the new and final senior unsecured rating of MAS Real Estate Inc.
(MAS; Long-term Issuer Default Rating: BB/Positive) who guarantees
the bond.

The assignment of the bond's final rating follows the completion of
the bond issuance and receipt of documents, which conform to
previously received information. After a review of the final
documents, Fitch notes MAS Securities BV, rather than MAS, has
issued the bond. MAS Securities BV's final rating is the same as
the expected rating assigned on 4 May 2021.

The ratings reflect MAS's small Central and Eastern European (CEE)
EUR443 million wholly-owned portfolio (December 2020) of commercial
properties, which should significantly increase through planned
acquisitions during FY22 to FY24. An ambitious development
programme is housed in its 40%-owned development joint venture
(DJV), which is funded through external, non-recourse debt and
MAS-injected preference shares.

The Positive Outlook reflects MAS's profile after executing planned
disposals and acquisitions, increasing MAS's portfolio and reducing
asset concentration.

KEY RATING DRIVERS

Small CEE Retail Portfolio: After divesting most of its Western
European (WE) portfolio, MAS's wholly-owned CEE portfolio comprises
14 enclosed, open-air and strip malls with a total gross leasable
area of 243,100 sqm, mainly in Romania (62% of annual net rental
income), Bulgaria (20%) and Poland (18%). The portfolio has a
regional or community focus with many convenience-led stores with
affordable rents. Proceeds from WE asset disposals will be mainly
used to paydown existing secured debt, acquire more CEE
income-producing assets for MAS's balance sheet and invest in
further DJV preference shares.

Planned Expansion Reduces Concentrations: The limited number of MAS
properties means asset concentration is high (top 10 assets: more
than 90% of rent). This will diminish as MAS intends to make
additional comparable acquisitions in CEE. Tenant concentration is
high (top 10 tenants: 37% of rent) with the largest the anchors:
Carrefour, Kingfisher and Auchan. The portfolio is likely to remain
concentrated in Romania. The average net rental yield for the CEE
portfolio is 7.7% compared with 4.7% for the yet to be sold WE
portfolio.

Effects of the Pandemic: The coronavirus significantly affected
MAS's and the DJV's CEE properties, but with the positive effects
from many convenience-led stores and open-air malls, and low
exposure to vulnerable retail sectors such as restaurant and
entertainment, MAS had comparatively good operational statistics.

CEE footfall from July-December 2020 averaged 77% compared with the
same period in 2019. Shoppers preferred open-air malls, where
footfall was down only 13% compared with 35% for enclosed malls.
July to December 2020 CEE rent collection rate (based on invoiced
income) was 94%. December 2020 occupancy for CEE was 93% (December
2019: 95%). The recovery of operational metrics will largely depend
on the extent that coronavirus restrictions are reintroduced.

Property Development Model: MAS does not directly develop
properties. Property development is carried out exclusively through
its 40%-owned DJV, PKM Developments. Prime Kapital (PK), a
privately-owned real estate company with investment and development
experience in CEE, owns the remaining 60%. The DJV's projects are
primarily funded by preference shares injected by MAS, which has
committed to subscribe up to EUR420 million through to March 2025
(December 2020: MAS EUR186.7 million already funded).

Properties developed in the DJV are held in it, which MAS manages
at cost. MAS gains post-interest expense profits through a 7.5%
coupon on the preference shares, as well as its share of potential
common stock dividends. Fitch has only included cash-paid
preference share coupons derived from DJV's recurring rental income
when calculating MAS's EBITDA (averaging 20% of the Fitch rating
case FY21-24 EBITDA).

Material Capex, Mainly in DJV: The DJV holds a portfolio of four
malls, all in Romania, with a value of EUR181 million as at
December 2020. December 2020 occupancy was 94%. With further
preference share investments by MAS, alongside bank debt for
completed properties (averaging 45% loan-to-value; LTV), the DJV
will fund additional retail developments, a six-year phased office
project and residential properties for sale in phases.

Potential for Conflicts of Interest: There is currently potential
for conflicts of interest in the corporate structure as the CEO
(Martin Slabbert) and Executive Director (Victor Semionov) of MAS
are also the founders and partners of PK, which owns 60% of the
DJV. PK and its management, including the DJV, own around 20% of
MAS. As part of a restructuring, MAS is taking steps to avoid
conflicts of interest with dealings and transactions scrutinised by
MAS's majority-independent board members. For example, Mr. Slabbert
and Mr. Semionov cannot be directors of the DJV until they have
stepped away from being executive directors of MAS (which is
expected to happen in November 2022).

MAS's Financial Profile: The EUR300 million bond will significantly
improve the debt profile. The proceeds will repay existing CEE debt
and fund further eligible green assets, either in its wholly-owned
portfolio or through the DJV. With significant cash on MAS's
balance sheet from the bond, as well as proceeds from WE
divestments, Fitch forecasts YE21 net debt/EBITDA to be only 2.4x,
increasing to around 6.1x in FY22 as MAS acquires assets and
preference shares. As developed assets remain in the DJV, but are
mainly funded through MAS acquiring preference shares, MAS's LTV
ratios (including MAS income-generating property only) will be high
-- averaging more than 50% during FY22-24.

The DJV has four assets, but developments funded by preference
shares and bank debt. DJV's LTV will exceed 70% in FY21 and 100% in
FY22 (applying 50% equity credit to the preference shares, and
assuming that capital gains are crystallised on assets' completion
valuations) before slowly reducing.

DERIVATION SUMMARY

MAS's closest peers are NEPI Rockcastle (BBB/Stable) and Atrium
European Real Estate Limited (BBB/Stable), both retail real estate
companies focused on CEE. The current CEO and an Executive Director
of MAS originally founded New Europe Property Investments (the
future NEPI Rockcastle) in 2007.

NEPI Rockcastle, with a portfolio of EUR5.9 billion (including
developments) and Atrium European Real Estate, with a EUR2.5
billion portfolio, are much larger than MAS, whose wholly-owned
portfolio (excluding the WE portfolio, which is being divested) was
valued at EUR443 million (December 2020), although forecast to
materially grow through acquisitions. This small asset size means
MAS has high asset concentration, with the top 10 assets generating
more than 90% of revenue, compared with NEPI (43%) and Atrium
(75%).

Unlike NEPI and Atrium, MAS develops and holds additional
properties through an exclusive DJV. MAS provides funding to the
DJV by subscribing for preference shares. MAS gains returns through
preference dividends and potential common dividends by virtue of
its 40% holding. MAS's directly-owned portfolio will grow primarily
through acquisitions, whereas both NEPI and Atrium will both
develop and acquire assets to increase the portfolio.

While MAS has operations in three countries, most of the portfolio
is in Romania (BBB-/Negative) with one asset in Poland (A-/Stable)
and two in Bulgaria (BBB-/Stable). Atrium has better country risk
exposure with assets located in CEE countries rated 'A-' and
higher: Poland, Czech Republic (20%; AA-/Stable) and Slovakia (5%;
A/Negative) with 11% of its assets (by value) in Russia
(BBB/Stable). NEPI's geographic diversification is wide with
presence in nine CEE countries, but the average country risk rating
is lower.

KEY ASSUMPTIONS

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

-- Reflecting the ongoing effects of the pandemic, Fitch has
    decreased the rents on lease renewals by 5% in FY21 only.

-- The preference share coupon that is covered by DJV's post
    interest expense, recurring rental-derived, profits (not
    planned residential development and sales) is included in
    MAS's Fitch EBITDA.

-- Phased MAS property acquisitions during the years to 2024 at
    7% rental income yield.

-- More than EUR350 million of identified WE property disposals
    in FY21, most of which has occurred or is contracted.

-- Over time, subscribing to additional preference shares in DJV
    up to the remaining committed subscription.

-- MAS listed investments: dividends are included in the cashflow
    (not EBITDA), as are their disposal proceeds.

-- No MAS dividends in FY21.

ESG CONSIDERATIONS

Fitch has assigned an ESG credit relevance score of 4 for
Governance Structure, reflecting the potential conflicts of
interest in the corporate structure as MAS's CEO and one of its
Executive Directors are also the founders and current partners of
Prime Kapital, which owns 60% of DJV. Prime Kapital and its
management, including the DJV, own around 20% of MAS. As part of
the ongoing restructuring of MAS, MAS is taking steps to avoid
conflicts of interest, such as having various dealings and
transactions scrutinised by MAS's majority-independent board
members. This has a negative impact on the credit profile, and are
relevant to the ratings in conjunction with other factors.

The score of '4' for Group Structure reflects the group's
complexity including disclosed related-party transactions
(including preference shares, a previous property disposal
transaction to MAS) and cross-holdings (such as the unusual
circumstance of DJV owning shares in MAS). This 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.

RATING SENSITIVITIES

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

-- MAS standalone property portfolio of at least EUR1 billion;

-- Material increase in geographic diversity, while maintaining
    portfolio quality;

-- Net debt/EBITDA (including cash-paid preference share coupons)
    below 7.5x (FY22 pro forma: 6.0x);

-- MAS standalone unencumbered asset/unsecured debt cover above
    2.0x (YE20: 1.6x).

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

-- Material deterioration of operating metrics, such as occupancy
    below 90%;

-- Net debt/EBITDA (including cash-paid preference share coupons)

    exceeding 8.5x;

-- A liquidity score below 1.0x on a sustained basis.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

At end-December 2020, the company had a comfortable liquidity
position with access to an undrawn EUR60 million revolving credit
facility maturing in June 2022, cash of EUR86 million and only
EUR12 million debt due for the following 12 months (including debt
on WE, part of which has been disposed to date). If necessary, the
company could divest its investment in listed securities, which had
a net fair value of EUR10 million, to gain additional liquidity.

Post-bond issuance, the company's liquidity position will remain
comfortable. With a combination of WE assets sales paying secured
debt associated with those assets, part of the bond proceeds is
expected to remain on balance sheet through FY21, then fund
acquisitions, minimal capex at the MAS level and the purchase of
DJV preference shares to fund development.

MAS is not a REIT so there is no regulatory dividend requirement
and dividends are discretionary. The company has suspended
dividends to date for FY21.




===========
R U S S I A
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ABSOLUT BANK: Moody's Reviews B2 Deposit Ratings for Downgrade
--------------------------------------------------------------
Moody's Investors Service extended the review for downgrade of the
B2 long-term local and foreign currency bank deposit ratings of
Absolut Bank (PAO); its B1(cr) long-term Counterparty Risk
Assessment and its B1 long-term Counterparty Risk Ratings. At the
same time, Moody's affirmed the bank's caa1 Baseline Credit
Assessment and upgraded its Adjusted BCA to b3 from caa1, while
affirming its Not Prime short-term bank deposit ratings and CRRs,
and its Not Prime(cr) short-term CR Assessment. Absolut's issuer
outlook, as well as the outlook on its long-term bank deposit
ratings, remained ratings under review.

Absolut is the parent bank of a group, which includes subsidiary
Baltinvestbank, a bank under financial rehabilitation since 2015.
Moody's analysis and assessment are based on the group's
consolidated financials, with all the financial indicators
mentioned in this press release referring to the group, unless
otherwise specified. Absolut is ultimately controlled by the
non-state pension fund Blagosostoyanie.

RATINGS RATIONALE

Moody's initiated the review for possible downgrade of Absolut's
long-term ratings on December 16, 2020. The rating agency's
extension of the review is driven by the ongoing uncertainty
regarding third-party capital support, which Moody's expects to be
resolved within the next three months. The upgrade of the bank's
Adjusted BCA reflects Moody's assessment of a moderate probability
of affiliate support from Russian Railways Joint Stock Company
(Russian Railways, Baa2 negative).

The affirmation of Absolut's BCA reflects the insufficiency of the
recent improvements in the bank's asset quality and recurring
profitability to significantly increase its slim capital cushion,
in the absence of shareholder or third-party support. Despite
Absolut's standalone capital adequacy ratios comfortably exceeding
the regulatory thresholds, the group's consolidated capital metrics
remain weak, with its ratio of tangible common equity (TCE / RWA
ratio) at around 3%. Moody's does not expect the group's internal
profit generation to restore its capital adequacy to a more solid
level in the next 12-18 months.

The group's net profit turned positive in 2020, however, without
the one-off gain associated with a recovery of provisions against
Baltinvestbank's legacy guarantees the group's return on average
assets would have been below 0.5%. The bank's sustainable return to
profitability will be subject to (1) further improvements in asset
quality and consistently lower need for provisions, and (2)
sufficiency of the revenues from the new business, to sustainably
cover operating costs and loan loss provisions. The bank's focus is
currently on mortgages, guarantees and servicing the Russian
Railways group, its affiliates and counterparts.

Absolut's stock of problem loans declined notably in 2020, on the
back of recoveries, write-offs and sales of legacy problem loans;
however, it remains high at above 20%.

MODERATE AFFILIATE SUPPORT

Absolut's Adjusted BCA of b3 benefits from one notch of uplift
above its caa1 BCA, given Moody's assessment of a moderate
probability of affiliate support from Russian Railways, which owns
a 25% stake in the bank's 100% shareholder, Blagosostyanie Fund.
This assessment reflects Moody's expectations that Absolut can
potentially benefit from Russian Railways' funding or capital
support, given the strengthening business links between the bank
and the companies of the Russian Railways group.

MODERATE GOVERNMENT SUPPORT

Additional one notch of uplift within Absolut's B2 deposit ratings
above its b3 Adjusted BCA results from Moody's view of a moderate
probability of support from the Government of Russia (Baa3 stable).
Moody's has lowered its assessment of the probability of government
support for Absolut, reflecting the fact that no such support has
yet arrived, despite Absolut group having reported very low
capitalization since 2018. Nevertheless, Moody's assessment
continues to reflect (1) the Russian government being Absolut's
indirect ultimate owner via Blagosostoyanie Fund and its
shareholders, and (2) Absolut's significant subsidiary
Baltinvestbank being a recipient of government support in the form
of a financial rehabilitation package funded by the Deposit
Insurance Agency and the Central Bank of Russia.

THE FOCUS OF THE REVIEW FOR ABSOLUT BANK (PAO)

The review for downgrade of Absolut's ratings will focus on the
measures to be taken in the next three months to remedy the capital
shortfall and the sufficiency of such measures to significantly
improve the group's capital position. Management expects
third-party support to result in a significant accounting gain for
the group. Moody's awaits the confirmation of third-party support,
its size and timing within the next three months.

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

Absolut's ratings are currently unlikely to be upgraded, given the
review for downgrade. However, the ratings could be confirmed, if
capital support from a third party is secured within the next three
months in an amount sufficient to cover the current capital
shortfall. Further improvements in asset quality and profitability
would also be supportive for the ratings.

Absolut's ratings may be downgraded if the proposed capital support
from a third party does not arrive and no other action is taken in
the next three months to significantly improve the bank's capital
position.

LIST OF RATINGS

Issuer: Absolut Bank (PAO)

Upgrade:

Adjusted Baseline Credit Assessment, Upgraded to b3 from caa1

Review Extended:

Long-term Counterparty Risk Assessment, currently B1(cr)

Long-term Counterparty Risk Ratings, currently B1

Long-term Bank Deposit Ratings, currently B2, Outlook Ratings
Under Review

Affirmations:

Baseline Credit Assessment, Affirmed caa1

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

Short-term Counterparty Risk Ratings, Affirmed NP

Short-term Bank Deposit Ratings, Affirmed NP

Outlook Action:

Outlook, Ratings Under Review

PRINCIPAL METHODOLOGY

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


METALLOINVEST: S&P Alters Outlook to Positive & Affirms 'BB+' ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on Russia-based iron
producer Metalloinvest to positive from stable and affirmed the
'BB+' long-term issuer credit rating.

S&P said, "The positive outlook indicates we could raise the rating
in the next 12 months if Metalloinvest demonstrates commitment to
reduce absolute debt to below $3 billion on the back of free
operating cash flow (FOCF), which would allow the company to
maintain strong credit metrics even in an industry downturn.

"Metalloinvest should have high capacity to reduce absolute debt in
2021, which could open the door to a 'BBB-' rating. In line with
its plans, Metalloinvest reduced gross debt to $3.6 billion at
year-end 2020 and plans to reduce it further. We believe that
reduction in absolute debt to about $3 billion could be
commensurate with a higher rating. Such a debt level would mean
that Metalloinvest could maintain funds from operations (FFO) to
debt of at least 45% even in the industry trough, and above 60% in
normal market conditions. We see these thresholds as commensurate
with a 'BBB-' rating, the level at which we rate Metalloinvest's
closest Russian peers Severstal and NLMK.

"We anticipate very strong EBITDA generation in 2021 on the back of
exceptional industry conditions, and we believe that the company
can generate positive FOCF even under weak industry conditions.We
think iron ore prices will remain at record-high levels in 2021 and
will only gradually come down, providing a strong foundation for
very high EBITDA generation at Metalloinvest. We currently factor
in an iron ore price of $130 per dry metric ton (/dmt) for the rest
of 2021, while spot prices are at about $190/dmt, having fallen
from $200/dmt earlier in the year. With this assumption, the
company could report EBITDA of more than $4 billion, which is well
above the $2.5 billion it reported both in 2019 and 2020. We think
EBITDA generation will normalize when prices return to a more
sustainable level of $80/dmt, but this will not likely happen
before 2023. Importantly, we think Metalloinvest should generate
positive FOCF even at the iron ore price of $60/dmt, since the
company currently does not have large capital spending (capex)
projects. Given that Metalloinvest is currently focusing on several
smaller operational improvements, we do not anticipate its capex
will exceed $600 million-$700 million per year.

"Exposure to Russian country risk and uncertainty over
international taxation are they main risks for Russian metals
producers, including Metalloinvest, in our view. Weak economic
growth in Russia, further exacerbated by the pandemic and upcoming
elections, has forced the Russian government to seek ways to
replenish the budget. In 2020, the government raised the mineral
extraction tax for a number of commodities and cancelled some of
the tax benefits in the core oil and gas sector. We think steel
companies, with their currently high margins, are an easy target,
and see a risk of a temporary or permanent increase in taxes.
Previous comments from various government officials also suggest a
focus on companies with high dividend payments in absolute terms,
such as metals producers. Given these uncertainties, we think it is
important for companies to maintain solid headroom against their
rating thresholds to cushion the ratings from any deterioration in
credit metrics."

Uncertainty over the impacts and timing of global carbon tax
implementation is another risk for Russian metals producers.
Metalloinvest's exposure to this risk is higher than for many more
domestically focused Russian peers, but this is offset by the
company's stronger environmental, social, and governance (ESG)
positioning. Apart from Ural Steel, all the company's assets have
strong ESG positions compared with those of global peers, which
could reduce the risk of a meaningful negative impact from carbon
tax regulation.

S&P said, "We do not see any major flaws in the company's
governance, but we note that Russian peers with investment-grade
ratings generally have stronger governance.As a private company,
Metalloinvest is bound by less strict stock exchange reporting and
governance requirements. We note that the company has a lower share
of independent directors than many of its listed peers, as well as
some of its private peers. Still, we do not see any major
governance and transparency issues that could constrain the rating.
The company has an established track record of reporting financial
and business performance and has published comprehensive
sustainability information. Metalloinvest's audit committee is
chaired by an independent director, and its strategy and
remuneration committees are chaired by board members who are not
executive directors. That being said, we expect continuous
improvement in governance practices, including commitment to full
cancellation of the dividend prepayment practices in the form of
related-party loans. This would be important for an upgrade to
'BBB-'.

"The positive outlook indicates we could raise the rating in the
next 12 months if Metalloinvest demonstrates commitment to reduce
absolute debt to at least $3 billion on the back of FOCF, which
would allow the company to maintain strong credit metrics even in
an industry downturn.

"With very high iron ore prices in 2021, we project that
Metalloinvest will have capacity to achieve this, so the company's
financial policy decisions will be key.

"In our base-case scenario, we assume EBITDA of $4.1 billion-$4.5
billion in 2021, which should translate into FOCF of $2.5
billion-$3 billion. Although we expect EBITDA to gradually decline
to about $3.6 billion-$3.8 billion in 2022 and $2.7 billion-$2.9
billion in 2023, FOCF should still remain strongly positive, giving
the company flexibility to manage its debt level.

"We could raise the rating on Metalloinvest if we conclude that the
company can sustain currently strong credit metrics in the long
term. We see FFO to debt of 60% in normal market conditions as
commensurate with the 'BBB-' rating and its credit metrics could
tolerate temporary weakening to 45% in an industry trough.

"We would revise the outlook to stable if the company's actions do
not support absolute debt reduction, which would not allow it to
maintain strong credit metrics when iron ore prices are moderate."


RESO-LEASING LLC: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed RESO-Leasing LLC's (RL) Long-Term Issuer
Default Rating (IDR) at 'BB' with Stable Outlook, following an
announced change to the company's shareholder structure. The
company is to be sold by the RESO-Garantia group to RESO
Investments LLC. This will result in the current controlling
shareholders of RESO-Garantia (Sarkisov brothers) owning 75% of RL
and remainder being owned by one of the top managers of RESO
group.

KEY RATING DRIVERS

The IDR of RL continues to be based on its standalone
creditworthiness and reflects a moderate franchise with a monoline
business model in a developing operating environment. Robust and
stable profitability is underpinned by above-sector growth . It is
helped by modest, albeit somewhat larger than peers', final credit
losses, moderate leverage and a largely unsecured funding base that
is reasonably diversified by sources.

Fitch has not factored in support from RESO-Garantia group in RL's
ratings. Thus, the change of ownership does not affect Fitch's
assessment and Fitch understands from management that the change
will not result in a negative effect on RL's capital size or
leverage.

Management has informed us that RL has received consent for the
sale from all core creditors and Fitch therefore does not expect
immediate pressure on its liquidity. Over the long term, the change
of ownership might result in somewhat higher funding costs. Fitch,
however, expects this effect to be absorbed by RL's wide
risk-adjusted net interest margin (10% in 2020), without a
significant impact on the company's business model and
performance.

Unless noted above, the key rating drivers for RL are those
outlined in Fitch's Rating Action Commentary published on May 5,
2021 (Fitch Rates RESO-Leasing 'BB'; Outlook Stable).

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.

RATING SENSITIVITIES

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

-- An upgrade of RL's IDRs would require a sustained improvement
    in the operating environment allowing for a wider
    diversification of the funding by source.

-- A material strengthening of its franchise and pricing power,
    combined with diversification of revenue would underpin a
    stronger company profile and more predictable profitability.

-- A lower risk appetite supported by slower growth, smaller
    credit losses and higher provision coverage would be positive
    for Fitch's assessment of RL's asset quality and profitability
    and could, combined with other factors, result in an upgrade
    or a higher tolerance of leverage.

-- However, all these developments are unlikely in the medium
    term, in Fitch's view.

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

-- A sustained increase of RL's leverage (gross debt-to-tangible
    equity) above 5.5x, caused by asset growth (organic or
    inorganic), material losses or capital distribution. Also, a
    material weakening of quality of capital via, for example,
    high related-party exposures, non-core assets or intangibles,
    as well as weakening in the overall governance framework would
    weigh on ratings.

-- A material increase in asset concentration, significant shifts
    of the business model towards higher-risk products (such as
    fleet leasing), a significant narrowing of alternatives for
    funding, sizable credit losses or indication of increased
    operational risks.

-- A decrease of profitability (measured as pre-tax
    income/average assets) below 4% on a sustained basis,
    indicating lower resilience of the company's performance and
    operational model.

-- Changes in the corporate structure causing operational
    disruptions, significant increase in credit risk or risk
    appetite and a material increase in funding costs.

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.


UMK BANK: Bank of Russia Ends Provisional Administration
--------------------------------------------------------
The Bank of Russia, on May 31, 2021, terminated the activity of the
provisional administration1 appointed to manage OOO (LLC) UMK bank
(hereinafter, the Bank).

No signs of insolvency (bankruptcy) have been established as a
result of the provisional administration-conducted inspection of
the credit institution.

On May 19, 2021, the Arbitration Court of the Krasnodar Territory
issued a ruling on the forced liquidation of the Bank.

Fanil Yunusov, a member of the Association of Leading Receivers
Dostoyanie, was appointed as a liquidator.

The provisional administration was appointed by virtue of Bank of
Russia Order No. OD-425, dated March 19, 2021, following the
revocation of the banking license of the Bank.




=========
S P A I N
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GRUPO COOPERATIVO: DBRS Confirms BB(high) LongTerm Issuer Rating
----------------------------------------------------------------
DBRS Ratings GmbH confirmed the ratings of Grupo Cooperativo
Cajamar (GCC or the Group), Cajamar Caja Rural, Sociedad
Cooperativa de Credito (Cajamar), and Banco de Credito Social
Cooperativo S.A. (BCC). The Long-Term Issuer Ratings remains at BB
(high) and the Short-Term Issuer Ratings at R-3. The Trend on all
ratings remains Negative. DBRS Morningstar has also maintained the
Group's Intrinsic Assessment (IA) at BB (high) and the Support
Assessment at SA3. Cajamar's and BCC's Support Assessment is SA1.
See the full list of ratings in the table at the bottom of this
press release.

KEY RATING CONSIDERATIONS

The Negative Trend reflects DBRS Morningstar's view that the
challenging economic and operating environment resulting from the
coronavirus (COVID-19) pandemic will continue to add pressure to
GCC's asset quality and profitability. DBRS Morningstar expects the
Group's risk profile to deteriorate in coming quarters,
particularly once moratoria and other government support measures
are removed. DBRS Morningstar also notes that the Group has a
relatively high exposure to SMEs which may be severely affected in
this environment. However, we also note that a large part of these
are related to the agriculture sector that may be less negatively
impacted.

The ratings also reflect the Group's sound cooperative franchise in
Spain, particularly in the agriculture sector in its home markets
of Almeria and Valencia, which provides the Group with a stable
customer deposit base. The confirmation takes into account that the
Group has continued to reduce its problematic exposures, and the
Non-Performing Loan (NPL) ratio and coverage ratios are now in line
with domestics peers. However, the ratings still consider the
Group's remaining high levels of Non-Performing assets (NPAs) due
to foreclosed assets, despite the Group making progress in reducing
them since 2013.

RATING DRIVERS

An upgrade of the Long-Term Issuer Rating is unlikely in the
short-term given the Negative Trend and the economic implications
from the global pandemic. The Trend could return to Stable if the
Group is able to demonstrate it can manage through the current
challenging environment with only limited impact on asset quality
and capital.

A downgrade of the Long-Term Issuer Rating would result from a
sustained deterioration in the loan portfolio, a prolonged and
substantial fall in profitability, or a weakening of the Group's
capital cushions from pre-Covid levels.

BCC's and Cajamar's ratings are equalized with the ratings of GCC.
As a result, any positive or negative actions on GCC's ratings
would be mirrored in the ratings of BCC and Cajamar.

RATING RATIONALE

GCC's IA of BB (high) is underpinned by the Group's sound franchise
position as the largest cooperative bank in Spain, as measured by
total assets. The Group enjoys significant market shares for
agriculture loans in Spain of around 15% and has meaningful
regional market shares in the regions of Almeria (around 45%) and
Valencia (around 10%). However, the Group's national market shares
are more modest at around 2.7% for loans and 2.6% for customer
deposits at end-2020 (as calculated by DBRS Morningstar).

DBRS Morningstar views the economic disruption resulting from
COVID-19 as posing significant challenges and expects pressure on
GCC's profitability. The Bank recorded in 2020 a net attributable
profit of EUR 23.8 million, down from EUR 92.5 million in 2019. The
Group's 2020 results were affected by lower Net Fees and lower
capital gains on the sale of fixed income portfolios. Notably, the
bank reported Net Interest Income up 3% YoY, as the low interest
rate environment was compensated by a larger loan book and lower
interest expenses. Also, unlike most Spanish banks, GCC recorded a
lower level of Loan Loss Provisions (LLPs) in 2020 compared to 2019
(down from EUR 334 million to EUR 311 million). The reduction in
LLPs reflects the high level of provisions taken in 2019 as part of
the continuation of the balance sheet clean-up. The return on
equity (RoE) decreased in 2020 to 0.70%, down from 2.8% in 2019 (as
calculated by DBRS Morningstar). During Q1 2021 the Bank reported
net attributable income of EUR 14 million down 19% YoY after the
Bank booked extraordinary NPA provisions (around EUR 364 million)
and intangible asset impairment (EUR 61 million) which were
compensated for by an extraordinary capital gain from the sale of
its fixed income portfolio (around EUR 460 million). DBRS
Morningstar considers that profitability will continue to be
pressured in coming quarters due to the low interest rate
environment, and the likelihood that the cost of risk will remain
high, given the expected challenging environment in Spain in 2021.

GCC's high level of NPAs remains a key consideration for the
Negative Trend. However, DBRS Morningstar recognizes that the Group
has continued reducing its problematic exposures in the past 12
months. In addition, GCC made significant progress in reducing the
level of NPAs in the years prior to the COVID-19 pandemic, with the
Bank reporting high levels of NPAs following the Spanish financial
crisis. At end-Q1 2021, NPAs totaled EUR 4.1 billion down 10% YoY.
However, the NPA ratio is still high at 11.3% of total NPL and
foreclosed assets. This level of NPAs places the Group at a weaker
starting point than most domestic peers to cope with future asset
quality deterioration. The Group reinforced its coverage level of
NPLs in Q1 2021 to 70%, a very significant increase from 50% at
end-Q1 2020, and these are now more in line with the levels seen at
domestic peers.

DBRS Morningstar understands the unprecedented support measures
announced by the Spanish government, as well as several other
international authorities and central banks, including the
implementation of the debt moratoriums and state-guaranteed loans,
have been a key factor in the Group being able to limit the impact
on asset quality. However, we consider asset quality will
inevitably deteriorate due to the economic restrictions triggered
by the COVID-19 pandemic once the moratoria measures are lifted. As
of end-2020 the Group had granted EUR 1.8 billion of loans with
state guarantees, which represents around 5.4% of the total loan
book. In addition, the Bank had granted payment holidays amounting
to around EUR 1 billion at end-2020 or around 3% of its loan book.
At end-2020, EUR 582 million of payment holiday breaks were still
active.

DBRS Morningstar views GCC's funding and liquidity position as
being underpinned by the solid and stable customer deposit base
generated through its cooperative business model. At end-Q1 2021,
the loan to deposit ratio was 90% (as calculated by DBRS
Morningstar) down from 97% YoY. The Group also has a solid
liquidity position supported by a large pool of liquid assets
totaling EUR 11.3 billion, or 21% of end-Q1 2021 total assets. The
Group also has the capacity to issue EUR 3.2 billion of covered
bonds at end-March 2021. GCC reported a Liquidity Coverage Ratio
(LCR) of 218% and a Net Stable Funding Ratio (NSFR) of 131% at
end-Q1 2021. Funding from the European Central Bank (ECB) stood at
around EUR 10.3 billion at end-Q1 2021, accounting for around 21%
of total funding, a significantly higher proportion than at
end-2019 as the Group took advantage of TLTRO III to support
profitability.

At end-Q1 2021 the Group's CET1 ratio (phased-in) was 13.8% and its
total capital ratio (phased-in) was 15.5%. This compares to a
minimum SREP Capital Requirement (OCR) for total capital of 13.0%
for 2020. As a result, the capital cushion over the requirement was
247 bps at the lowest point, which is lower than the average of
Spanish peers. The cooperative credit institutions within the Group
(including Cajamar) are owned by its members who contribute to
capital. Capital contributions from its members were substantial
during the previous crisis and in 2020 reached EUR 86 million,
representing 38 bps of the Group's CET1 ratio (phased-in). DBRS
Morningstar views this positively as the Group's ability to
increase capital through retained profits or capital markets is
limited.

Lastly, DBRS Morningstar has assigned ratings to BCC's Senior
Non-Preferred Debt at BB with a Negative Trend. In line with the
Debt Obligations Framework set out in DBRS Morningstar's Global
Methodology for Rating Banks and Banking Organizations (June 2020),
Senior Non-Preferred Debt is rated one notch below the Group's BB
(high) Intrinsic Assessment (IA).

Notes: All figures are in EUR unless otherwise noted.




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

TRANSCOM HOLDING: S&P Raises ICR to 'B-' on Improved Liquidity
--------------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit rating on
Sweden-based Transcom Holding AB (publ) and Transcom Topco AB to
'B-' from 'CCC+'. At the same time, S&P assigned a 'B-' issue
rating to the group's proposed EUR300 million senior secured
floating rate notes due in 2026.

Transcom's refinancing plans have abated our concern regarding
upcoming debt maturities.

The company plans to use the proceeds from the proposed EUR300
million senior secured floating rate notes to refinance the
existing EUR180 million senior secured notes and EUR20 million
senior secured Nordea bridge facility maturing in March 2023, as
well the EUR10 million senior unsecured notes and EUR47 million RCF
maturing in September 2022. S&P expects the new EUR45 million super
senior secured RCF will remain undrawn and further improve the
group's liquidity position with EUR50 million of cash available at
closing of the refinancing. As part of the transaction, the German
Customer Relationship Management (CRM) / Business Process
Outsourcing (BPO) services provider TMS will be included in the
legal restricted group providing security to the senior secured
floating rate notes. TMS was acquired by Transcom TopCo AB in March
2019, and it generated revenue of EUR20 million (around 3% of total
sales) and EBITDA of EUR1 million in 2020.

S&P's base case for 2021 reflects stronger growth thanks to
contract wins and increased business with existing clients.

S&P said, "The group's first-quarter results were strong, and we
forecast sales will expand by 13%-15% in the full year, on the back
of sound growth inside the e-commerce and technology segment (39%
of sales on a last-12-month basis); it boasts growth rates of about
46% in first-quarter 2021 compared to the same period a year
before. We expect the group's EBITDA margins will increase to
10.5%-11.5% from 8.7% in 2020. This will stem from e-commerce and
technology customers' growth focus and willingness to pay a premium
for higher-quality service compared with more traditional and
mature industries such as utilities or telecoms, which focus on
cost-control. Our estimate of the group's profitability, however,
will remain constrained by high exceptional costs, since we deduct
EUR13 million of redemption and transaction costs from our EBITDA
calculation in 2021."

The transaction will likely result in low leverage.

S&P said, "Although the group's capital structure will take on
about EUR70 million of additional debt, we forecast S&P Global
Ratings-adjusted leverage will drop to 5.0x-5.5 in 2021 from 5.8x
in 2020, thanks to significant EBITDA expansion. Our view
incorporates our expectation that the transaction will result in
adjusted debt of approximately EUR365 million at year-end 2021.
This includes senior secured notes of EUR300 million and a EUR45
million super senior RCF that we expect will remain undrawn. We
adjust for operating leases liabilities (EUR32.5 million), pension
liabilities (EUR2.5 million), factoring liabilities (EUR13
million), and litigation liabilities (EUR10.5 million). Given
Transcom's financial sponsor ownership, we do not net EUR67 million
of cash on the balance sheet at year-end 2021. We predict weak FOCF
of EUR3 million-EUR8 million in 2021 due to the payment of various
exceptional items and working capital outflows driven by the strong
sales growth. The positive outlook signals our expectation that
strong operational performance will continue in 2022 driving higher
EBITDA and materially lower exceptional costs, leading to sustained
positive FOCF."

S&P considers the group's debt-friendly financial policy as a
rating constraint.

Transcom has a financial leverage target of 4.0x. But it has stated
its willingness to temporarily exceed the target for mergers and
acquisitions (M&A), an approach the group has used since Altor came
on board in 2017. S&P consequently expects the group could
prioritize debt-funded M&A over deleveraging, leading to S&P Global
Ratings-adjusted leverage above 5.0x. Its view of the group's
financial policy assessment caps our financial risk assessment at
the highly leveraged category.

S&P said, "The positive outlook indicates that we could raise our
ratings if Transcom's operating trends continue to support organic
growth and solid margins expansion, while generating comfortably
positive and incrementing FOCF and adequate liquidity. We expect
this will drive deleveraging toward debt to EBITDA of 5.0x at
year-end 2021 and well below this level by year-end 2022."

Upside scenario

S&P said, "We could raise the rating over the next year if
Transcom's S&P Global Ratings-adjusted margins surpass 12% and it
generated comfortably positive and growing FOCF to support adequate
liquidity. This would likely result from continuously strong
operating performance, good execution and ramp-up of new contract
wins, and continued renewals of existing contracts, while
maintaining tight cost-control measures with significantly dropping
exceptional costs.

"We could revise the outlook to stable if economic headwinds or
operational missteps pushes leverage beyond 7.5x and causes
negative FOCF and heightened liquidity pressure. This could be the
consequence of sizable debt-funded acquisitions, or shareholder
returns that sustained leverage at high levels."





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

DTEK ENERGY: Moody's Hikes CFR to Caa3 on Debt Restructuring
------------------------------------------------------------
Moody's Investors Service has upgraded the corporate family rating
of DTEK Energy B.V. to Caa3 from Ca and changed the outlook to
stable from developing. Concurrently, Moody's has upgraded DTEK
Energy's probability of default to Caa3-PD from C-PD. The rating
action follows the company's announcement on May 17 that it had
completed the restructuring of substantially all of the group's
indebtedness. This agreement resolves the default that has been
occurring since the company suspended interest payments in March
2020.

Under the terms of the restructuring, existing notes and most bank
scheme facilities have been cancelled and replaced by new notes
issued by DTEK Finance Plc, a subsidiary of DTEK Energy, and new
notes issued by DTEK Oil and Gas (DOG), a sister company in the
DTEK group. The new DOG notes have a principal amount of $425
million and the new DTEK Finance Plc notes a principal amount of
$1,645 million, together equal to the principal and accrued and
unpaid interest on the existing notes and bank scheme facilities.

Under the security package, a new, Netherlands-domiciled
intermediate holding company, DTEK Energy Holdings B.V., is a
guarantor of the new DTEK Finance Plc notes and has granted a Dutch
pledge on its 100% shareholding of DTEK Energy. Most DTEK Energy
group companies are guarantors or will be added as guarantors
within 60 days of the restructuring effective date.

RATINGS RATIONALE

The Caa3 CFR reflects the run-off nature of DTEK Energy's
businesses, the company's very limited liquidity and susceptibility
to shocks, and its high refinancing risk.

DTEK Energy's long-term value is largely dependent on the cash
flows of its coal-fired thermal power plants. Coal-fired generation
is challenged globally by the carbon transition, and the growth of
renewables and reductions in electricity demand are particularly
acute for DTEK Energy because it operates the highest-cost plants
in the Ukrainian market. DTEK Energy's share of Ukrainian
electricity generation fell to 17.7% in 2020 from 24.4% in 2017.
The terms of the notes explicitly acknowledge the "run-off nature"
of the group, and consequently include a cash sweep of balances
over $50 million, increased lender oversight, a prohibition on most
investments and acquisitions without creditor approval, and
restrictions on further equity issuances. Additional debt to
develop "future business lines", including new generation capacity,
is limited to $100 million.

DTEK Energy's cash flow and credit metrics are highly sensitive to
electricity prices in Ukraine. Based on current baseload
electricity prices in Ukraine, which have averaged below UAH 1,400
(EUR42) per megawatt hour in 2021, Moody's expects the company to
generate very limited free cash flow with a significant risk of
cash shortfalls if electricity prices or demand weaken, if there
are further delays in collecting revenues from its customers, or if
the Ukrainian hryvnia weakens against the US dollar. DTEK Energy
has no alternative sources of liquidity to cover these
circumstances, and under the terms of the notes cannot raise
additional debt without bondholder consent. Although DTEK Energy
had cash and equivalents of UAH 1,616 million (around $70 million)
as of December 2020, this is likely to have fallen as a result of
costs associated with the restructuring.

The new notes include a payment-in-kind (PIK) toggle that allows
the company to defer cash interest expense in 2021 and on up to
four quarterly coupon payments in subsequent years. If exercised,
this option will improve short-term cash flow at the expense of
weaker credit metrics as a result of higher debt and, from 2022
onwards, a 0.5% coupon step-up in the period following exercise of
the option.

DTEK Energy faces very high refinancing risk when the new notes
mature in December 2027, given that only 7% of the original
principal will be repaid ahead of maturity, even if the PIK options
are not exercised. There is no certainty that DTEK Energy will be
able to refinance the remaining notes, as pressure on coal-fired
generation is likely to increase over time.

As a coal-fired generator, DTEK Energy is highly exposed to Carbon
Transition risks under Moody's ESG framework.

The stable outlook reflects Moody's view that the current ratings
adequately reflect the company's weak position and elevated
probability of default.

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

The rating could be upgraded if a sustained increase in Ukrainian
electricity prices and electricity demand allows DTEK Energy to
achieve a track record of positive free cash flow and progressive
debt reduction.

The rating will be downgraded if the company appears likely to
breach its covenants, or if it performs distressed exchanges or
other forms of balance sheet restructuring.

DTEK Energy B.V. is Ukraine's largest private power generator as
well as coal mining and processing company. As of December 2020,
the group operates eight thermal power generation plants with total
installed capacity 13,267 megawatts, four coal processing plants,
11 coal mines (16 mines until January 2021) and two coal-related
machinery manufacturers. DTEK Energy accounted for 17.7% of
Ukraine's total generated electricity in 2020. DTEK Energy
accounted for 65.6% of Ukrainian coal production in 2020, of which
89% was consumed in the company's thermal power plants.

DTEK Energy is indirectly owned by DTEK B.V., which also operates
electricity distribution and supply, renewable energy, gas
production and commodity trading businesses in Ukraine. DTEK B.V.
is fully owned by the financial and industrial group System Capital
Management, whose 100% shareholder is Rinat Akhmetov.

The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in May 2017.




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

ALEXANDER INGLIS: Administration to Hit Cereal Sector
-----------------------------------------------------
The Scotsman reports that confirmation that the collapse of major
grain trader Alexander Inglis and Son into administration would
have major repercussions in the trade came this week when it was
revealed that there is "significantly less than expected" grain in
their stores.

According to The Scotsman, although no financial figures are yet to
hand and it will be some time before they are available, the cereal
sector, including farmers, fellow merchants, hauliers and other in
the service industries are already bracing themselves for a major
deficit.

Speaking this week to more than 100 cereal producers and others
caught up in the administration of the long established family
firm, NFUS vice president, Andrew Connon said that not only was
there significantly less grain than stated in the five main stores
operated by the company, there were also more claims on the grain
that is held in store, The Scotsman relates.

With the grain having lost identity, the administrators are now
asking for legal permission to sell all off the grain held, with
the proceeds being distributed to the creditors, The Scotsman
discloses.

Mr. Connon added that the five sites operated by the firm in the
east of Scotland and north east of England were also in the early
stages of being marketed as the administrators sought to liquidate
the assets, The Scotsman states.

According to The Scotsman, while having nothing to do directly with
the administration, Willie Thomson, the chair of the NFUS
combinable crops committee, pointed out that the potential loss of
these stores with their 200,000 tonne capacity for the coming
harvest could add to further problems for the sector.

Most of the concerns raised by those attending the meeting related
to the ownership or otherwise of contracts entered into by farmers,
The Scotsman says.  Shirley Li-Ting, an insolvency expert with
Brodies, said the administration process was complex, The Scotsman
notes.

Making the situation more complicated, she said there seemed to be
a variety of contracts and it depended on the wording, according to
The Scotsman.


COMPASS III: Moody's Affirms B3 CFR & Alters Outlook to Stable
--------------------------------------------------------------
Moody's Investors Service has affirmed the B3 corporate family
rating and B3-PD probability of default rating of Compass III
Limited ("Awaze" or "the company"), a leading European manager of
holiday rentals. At the same time Moody's has affirmed the B2
rating on the EUR105 million backed senior secured revolving credit
facility and EUR715 million backed senior secured first lien term
loan B issued by Awaze Limited. Moody's has also affirmed the Caa2
rating on the EUR167 million backed senior secured second lien term
loan issued by Awaze Limited. The outlook has been changed to
stable from negative.

RATINGS RATIONALE

The ratings affirmation and change of outlook to stable from
negative reflects (1) the gradual easing of coronavirus pandemic
restrictions that has led to improved prospects for Awaze's
offering and (2) Moody's expectations of improved credit metrics in
the next 12-18 months. The company is well placed to capture a
faster recovery in demand given its relatively affordable offering
that is largely focused on domestic tourism.

The ratings affirmation is further supported by the company's (1)
established position in the European holiday rental market,
particularly in the Netherlands, where its Landal brand is a market
leader with a history of strong revenue growth over the last ten
years; (2) solid position in a fragmented and niche rental agency
market with broad service offerings and track record of more than
80% annual retention rate; (3) some business and geographical
diversification with Landal operating holiday parks mostly in the
Netherlands and Germany, and Novasol and Awaze UK operating agency
businesses with holiday accommodations and travelers in several
European countries; and (4) healthy reported EBITDA margins
averaging above 18% and structurally negative working capital.

The rating is constrained by the company's (1) elevated Moody's
adjusted leverage that has spiked to high double digits in 2020 as
a result of materially lower revenues triggered by the pandemic,
but is expected to be around the 8x level in 2021 before trending
towards 7.5x in 2022; (2) exposure to some technological risk as it
pertains to its agency businesses; (3) relatively small revenue
base of the individual business segments but additional value
created from synergies and joint leadership and (4) some
seasonality with peak demand in the summer months.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS

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

Moody's considers certain governance considerations related to
Awaze as the company is controlled by Platinum Equity which, as is
common for private equity firms, has a high tolerance for leverage
and M&A activity and potentially high appetite for
shareholder-friendly actions.

OUTLOOK

The stable outlook reflects Moody's expectation that the company's
business will continue to recover supported by strong holiday
bookings, ongoing bolt-on acquisitions as well as the continued
delivery of the planned cost and revenue initiatives. Furthermore,
the stable outlook assumes no return to widespread and prolonged
social restrictions that would negatively affect the company's
business.

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

Moody's could upgrade the company's ratings if Awaze builds a track
record of growth and profitability alongside a disciplined
acquisitions strategy. Quantitatively, an upgrade would require
Moody's adjusted Debt/EBITDA to decline to sustainably below 6x
while maintaining a consistently positive free cash flow
generation.

Moody's could downgrade Awaze's ratings if slower than anticipated
demand recovery or higher costs lead to a material deterioration in
credit metrics and liquidity relative to Moody's current
expectations. Over the longer-term operational difficulties that
lead to slow EBITDA growth or persistently negative free cash flow
generation could lead to negative rating pressure.

LIQUIDITY

The company's liquidity is adequate equating to EUR249 million as
of March 31, 2021, consisting of EUR144 million of unrestricted
cash and cash equivalents on balance sheet and full drawing
capacity under its EUR105 million backed senior secured revolving
credit facility (RCF). The company does not have any notable debt
maturities until 2024 apart from ongoing finance lease payments of
around EUR10 million a year. The RCF contains a leverage-based
springing covenant tested if the facility is drawn more than by 35%
and for which Moody's expects the company to remain in compliance.

Moody's expects the company to increasingly use its liquidity for
bolt-on acquisitions which have been on hold during the pandemic.
The company announced that in May 2021 it completed two
acquisitions: Amberley House cottage holidays (300 properties in
Cornwall and Sussex in the UK) and Bornholm Tours (650 properties
on Bornholm island, a Danish island in the Baltic Sea).

STRUCTURAL CONSIDERATIONS

The B2 ratings of the EUR715 million backed senior secured first
lien term loan B and the EUR105 million RCF are one notch above the
group's corporate family rating. The ratings on these instruments
reflect their contractual seniority in the capital structure and
the cushion provided by the EUR167 million backed senior secured
second lien term loan, which is rated Caa2. The collateral package
consists of a pledge over the majority of the group's bank
accounts, intragroup receivables and shares but does not include
the company's owned parks and land in the Netherlands with an
approximate value of EUR300 million.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.

LIST OF AFFECTED RATINGS:

Affirmations:

Issuer: Awaze Limited

BACKED Senior Secured Bank Credit Facility, Affirmed B2

BACKED Senior Secured Bank Credit Facility, Affirmed Caa2

Issuer: Compass III Limited

Probability of Default Rating, Affirmed B3-PD

LT Corporate Family Rating, Affirmed B3

Outlook Actions:

Issuer: Awaze Limited

Outlook, Changed To Stable From Negative

Issuer: Compass III Limited

Outlook, Changed To Stable From Negative

PROFILE

Awaze operates in three main business segments: Landal Parks
(Netherlands-based holiday parks operator and franchisor), Novasol
(professional agent for Continental European holiday homes) and
Awaze Vacation Rentals U.K. (Awaze UK), which includes a rental
agency business for UK holiday cottages, lodges, parks and boating
accommodations, as well as a specialist villa tour operator
business. In 2020, Awaze generated EUR501 million in revenue (2019:
EUR715 million) and EUR127 million in management-adjusted EBITDA
(2019: EUR130 million).


MORTIMER BTL 2021-1: S&P Assigns Prelim. BB+ Rating on E Notes
--------------------------------------------------------------
S&P Global Ratings has assigned preliminary credit ratings to
Mortimer BTL 2021-1 PLC's (Mortimer 2021-1) class A notes and class
B-Dfrd to X2-Dfrd interest deferrable notes.

Mortimer 2021-1 is a static RMBS transaction that securitizes a
portfolio of prime buy-to-let (BTL) mortgage loans secured on
properties in the U.K. LendInvest originated the loans in the pool
between August 2018 and May 2021.

At closing, the issuer will use the issuance proceeds to purchase
the full beneficial interest in the mortgage loans from the seller.
The issuer will grant security over all of its assets in favor of
the security trustee.

Credit enhancement for the rated notes will consist of
subordination from the closing date and overcollateralization
following the step-up date, which will result from the release of
the excess amount from the liquidity reserve fund to the principal
priority of payments.

The transaction will feature a liquidity reserve fund to provide
liquidity in the transaction.

There are no rating constraints in the transaction under S&P's
counterparty, operational risk, or structured finance sovereign
risk criteria. S&P considers the issuer to be bankruptcy remote.

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."

  Ratings List

  CLASS    PRELIM. RATING*    CLASS SIZE (% OF COLLATERAL)
  A           AAA (sf)           87.50
  B-Dfrd      AA (sf)             6.00
  C-Dfrd      A (sf)              3.50
  D-Dfrd      BBB (sf)            2.25
  E-Dfrd      BB+ (sf)            0.75
  X1-Dfrd     NR                  4.25
  X2-Dfrd     NR                  2.00
  Certificates   NR                N/A

  *NR--Not rated.
  N/A--Not applicable.


N-SEA OFFSHORE: Enters Administration, 30 Jobs Affected
-------------------------------------------------------
BBC News reports that thirty jobs have been lost after an Aberdeen
subsea services firm went into administration.

N-Sea Offshore Limited -- a subsidiary of the global N-Sea Group
which is headquartered in the Netherlands -- was launched in 2014.

The move has been blamed on a lack of contracts, rising operational
costs and a collapse in income leading to "unsustainable" cash flow
problems, BBC relates.

The business has ceased trading with immediate effect, BBC
discloses.

According to BBC, Chad Griffin, from administrators FRP, said:
"Despite every effort by the directors to keep the business trading
and ensure the company could survive the downturn in the North Sea,
the severe financial problems meant that administration was the
only option.

"We will now wind down the business and will be looking to sell the
extensive assets as soon as possible.  Unfortunately, all 30
members of staff have been made redundant with immediate effect."


RICHMOND UK: Moody's Alters Outlook on Caa1 CFR to Stable
---------------------------------------------------------
Moody's Investors Service has affirmed the Caa1 corporate family
rating and Caa1-PD probability of default rating of RICHMOND UK
HOLDCO LIMITED (Parkdean), a UK holiday park operator. At the same
time Moody's affirmed the B3 rating of the outstanding GBP538.5
million backed senior secured first lien term loan B due 2024 and
the GBP100 million backed senior secured first lien revolving
credit facility due 2023, which are borrowed by Richmond UK Bidco
Limited. The outlook of both entities has been changed to stable
from negative.

RATINGS RATIONALE

The ratings affirmation and change of outlook to stable from
negative reflects (1) the gradual easing of coronavirus pandemic
restrictions that has led to improved prospects for Parkdean's
offering and (2) Moody's expectations of improved credit metrics
and adequate liquidity in the next 12-18 months. The company is
well placed to capture a faster recovery in demand given its
affordable offering that is focused on domestic UK tourism.

The affirmation of Parkdean's ratings is further supported by (1)
the company's leading position in the UK caravan park market (2)
the relative stability of three out of its four business segments
(3) its experienced management team and its ability to shift
resources among business segments in line with their relative
performance through the cycle.

The rating is constrained by the company's (1) weak credit metrics
that were made worse by the pandemic and elevated Moody's adjusted
leverage that has spiked to high double digits in 2020, and is
still expected to be around the 10x level in 2021 before trending
below 9x in 2022; (2) ongoing cost pressures, driven in particular
by the step-up of the national living wage (3) possibly weak
on-park spend because of the lingering impact from COVID-19
restrictions, and (4) some seasonality with peak demand in the
summer months.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS

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

Moody's considers certain governance considerations related to
Parkdean, including its ownership by Onex which, as is common for
private equity firms, has a high tolerance for leverage and
potentially high appetite for shareholder-friendly actions.

OUTLOOK

The stable outlook reflects Moody's expectation that (1) the
company's business will continue to recover supported by strong
holiday bookings and (2) that management will deliver on its
strategic plan and will continue to organically grow EBITDA and (3)
the company will strengthen its credit profile and maintain
adequate liquidity at all times. Furthermore, the stable outlook
assumes no return to widespread and prolonged social restrictions
that would negatively affect the company's business.

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

Moody's could upgrade the company's ratings if Parkdean builds a
track record of profitability improvements and deleveraging.
Quantitatively, an upgrade would require Moody's adjusted
Debt/EBITDA to decline below 7.5x and EBITA / Interest well above
1x while generating positive free cash flow.

Moody's could downgrade Parkdean's ratings if operational
underperformance results in declining EBITDA and sustainably
negative free cash flow generation or an increasing likelihood of
debt restructuring.

LIQUIDITY

The company's liquidity is weak equating to GBP74 million as of
March 2021, consisting of GBP64 million of cash on balance sheet
and GBP10 million drawing capacity under the GBP100 million backed
senior secured first lien revolving credit facility (RCF). A key
demand on liquidity will be the company's planned GBP69 million of
capital investment that will largely be delivered in the first half
of 2021.

Parkdean's cash flow is influenced by seasonality with the first
quarter of the year typically the low point given the negative
internally generated cash flow when most of its parks are shut
(except for occasional events). This is offset, however, in the
third quarter when most of the cash flow from vacations and on-park
spend is received.

Liquidity has been supported by a GBP25 million injection by the
sponsor in the last year and more recently the receipt of a GBP35
million interim payment against an ongoing business interruption
insurance claim received in March 2021.

The company negotiated a covenant holiday to its consolidated net
leverage covenant, and the next quarterly test date is December
2021. In the meanwhile, the company is subject to a minimum GBP15
million liquidity covenant that is tested monthly and for which
Moody's expects the company to remain in compliance.

STRUCTURAL CONSIDERATIONS

The B3 ratings of the outstanding GBP538.5 million backed senior
secured first lien term loan B and the GBP100 million RCF are one
notch above the group's Caa1 CFR. The ratings on these instruments
reflect their contractual seniority in the capital structure and
the cushion provided by the GBP150 million second-lien term loan.
Both rated instruments are secured on a first priority ranking
basis by all assets of the company, including most of the real
estate holdings.

In addition, the financing consists of two ground rent transactions
totaling GBP237.6 million, which are structured as an
on-balance-sheet finance lease liability.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: Richmond UK Bidco Limited

BACKED Senior Secured Bank Credit Facility, Affirmed B3

Issuer: RICHMOND UK HOLDCO LIMITED

Probability of Default Rating, Affirmed Caa1-PD

LT Corporate Family Rating, Affirmed Caa1

Outlook Actions:

Issuer: Richmond UK Bidco Limited

Outlook, Changed To Stable From Negative

Issuer: RICHMOND UK HOLDCO LIMITED

Outlook, Changed To Stable From Negative

PROFILE

Parkdean was formed through the merger of Park Resorts, Parkdean,
Southview & Manor Park and South Lakeland Parks. It controls a
portfolio of 67 caravan parks that are geographically diversified
across the coastal areas of England, Wales and Scotland. It owns
around 31,000 pitches (around 10% of the UK market) and has
relationships with around 21,000 caravan owners. In 2020, the
combined entity generated GBP348 million of reported revenue (2019:
GBP453 million) and GBP58 million of reported EBITDA (2019: GBP109
million); its Land and buildings were valued at GBP595 million as
of December 2020. The Canadian investment firm Onex Corporation
acquired the company in March 2017. The group operates in four
business segments: (1) caravan and lodge sales, (2) holiday sales,
(3) owners' income, and (4) on-park spend.


[*] UK: 15% Owner Managed Businesses Remain in "Survival Mode"
--------------------------------------------------------------
Scott Reid at The Scotsman reports that research conducted among
more than 400 owner managed businesses across the UK found that 15%
remain in "survival mode", despite the easing of many Covid
restrictions.

According to The Scotsman, APA, a network of 17 advisory firms
which represent about 14,000 of these businesses, said 53% of
respondents identified uncertain trading conditions as their
biggest single challenge.

About 24% reported a negative or very negative impact on their
business since the UK left the EU, while 15% cited Brexit supply
chain issues as their biggest challenge, The Scotsman discloses.

The report noted that with 11% of businesses saying they were
likely to have to make redundancies in the next three to six
months, a potential 1.85 million jobs were at risk across the UK,
The Scotsman relates.



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

Troubled Company Reporter-Europe is a daily newsletter co-
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Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.

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