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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 17, 2021, Vol. 22, No. 115

                           Headlines



A R M E N I A

ZANGEZUR COPPER: Moody's Hikes CFR to B2 & Alters Outlook to Stable


F I N L A N D

FERRATUM OYJ: Fitch Gives 'B-(EXP)' Rating to New Sub. Hybrid Notes


I R E L A N D

ARAGVI FINANCE: Fitch Assigns Final B Rating on US$450MM Eurobonds
AVOCA CLO XXIV: Fitch Assigns B-(EXP) Rating on F-R Notes
BARINGS EURO 2019-1: Fitch Affirms B- Rating on Class F Notes
DRYDEN 52 EURO: Moody's Assigns (P)B3 Rating to Class F-R Notes
DRYDEN 88 EURO: Moody's Assigns B2 Rating to EUR9.8MM Class F Notes

FAIR OAKS II: Moody's Assigns B3 Rating to EUR8.7MM Class F-R Notes
HARVEST CLO XXII: Fitch Affirms B- Rating on Class F Notes
NORTH WESTERLY VII: Moody's Assigns B2 Rating to Class F Notes
STOBART AIR: Aer Lingus Likely to Receive Penalty Payment


I T A L Y

BANCA UBAE: Fitch Affirms 'B+' LongTerm IDR, Outlook Negative
POPOLARE BARI 2016: Moody's Cuts Rating on Class B Notes to Caa2


M A L T A

FIMBANK PLC: Fitch Lowers LongTerm IDR to 'B', Outlook Negative


N E T H E R L A N D S

DOMI BV 2020-2: Moody's Affirms Caa2 Rating on Class X1 Notes
DTEK ENERGY: Fitch Assigns CCC Rating on USD1.6 Billion Notes
NOBIAN HOLDING 2: Fitch Assigns FirstTime 'B+(EXP)' LongTerm IDR


R U S S I A

KIROV REGION: Fitch Alters Outlook on 'BB-' LT IDRs to Stable
LIPETSK REGION: Fitch Alters Outlook on 'BB+' IDRs to Positive
LLC DELOPORTS: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
NIZHNIY NOVGOROD: Fitch Affirms 'BB' LT IDRs, Outlook Stable
ORENBURG REGION: Fitch Affirms 'BB+' LT IDRs, Outlook Stable

SAMARA OBLAST: Moody's Hikes Issuer Rating to Ba1, Outlook Stable
YAROSLAVL REGION: Fitch Affirms 'BB' LT IDRs, Outlook Stable


T U R K E Y

ARAP TURK: Fitch Affirms 'B+' LongTerm IDRs, Outlook Negative


U N I T E D   K I N G D O M

CAFFE NERO: Repays All Bank Loans Borrowed During Covid Crisis
FERGUSON MARINE: Administrators Sanctioned Nationalization
GREENSILL CAPITAL: Credit Suisse Preparing First Insurance Claims
MARSTON'S ISSUER: Fitch Affirms BB- Rating on Class B Notes
RICHMOND PARK: Fitch Affirms B- Rating on F-RR Notes

SANOFI: DB Pension Scheme Has Additional Insolvency Protection

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A R M E N I A
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ZANGEZUR COPPER: Moody's Hikes CFR to B2 & Alters Outlook to Stable
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Moody's Investors Service has upgraded to B2 from B3 the corporate
family rating and to B2-PD from B3-PD the probability of default
rating of Zangezur Copper Molybdenum Combine CJSC ("ZCMC" or "the
company"), one of the largest exploration and mining companies in
Armenia. The outlook on all ratings has been changed to stable from
developing.

RATINGS RATIONALE

The upgrade of the company's CFR to B2 from B3 reflects
deleveraging, which the company will achieve by year-end 2021 even
under conservative set of pricing scenarios, due to EBITDA
expansion amid copper prices growth reinforced by planned debt
reductions in 2021-22, resulting in substantial improvements in the
company's credit profile, which suffered in 2019-20 amid increase
in debt and leverage due to acquisition of a 75% of its own shares
from the controlling shareholders for about $165 million in
December 2019 and modification of the company's streaming
contracts, which resulted in the outflow of about $41.5 million in
Q1 2020 amid deteriorating market environment.

Average copper and ferromolybdenum prices recovered from the
pandemic minimums of $4,700 per tonne of copper and $20 per
kilogram of 65% ferromolybdenum as of early April 2020 (2019:
$6,000 per tonne of copper and $26 per kilogram of
ferromolybdenum). Copper and ferromolybdenum prices have strongly
recovered since then and currently oscillate at about
$9,800-$10,000 per tonne and above $40 per kilogram, respectively,
compared with a $4,700-$7,900 per tonne and $21 per kilogram,
respectively, in 2020.

Average copper prices started to strengthen since May-2020 after a
prolonged decline brought by the COVID-19 pandemic disruptions. The
average price reached $7,900 per tonne by the end of 2020 compared
with $6,000 in January 2020. The upward trend continued in 2021.
Strong demand growth and recovering global GDP as well as supply
disruptions in large producing countries such as Chile and Peru,
which together account for about 40% of world copper production,
will support prices above $7,500 per tonne in 2021. Moody's does
not anticipate major incremental capacity starting up in the coming
years. Producers face structural declines in ore grades, increasing
community opposition and larger capital spending requirements,
largely replacing declining production volumes with brownfield
projects.

Based on the assumption of average copper and ferromolybdenum
prices in 2021-23 of about $7,500 per tonne and $26 per kilogram,
respectively, the company's Moody's-adjusted EBITDA will grow to
about $230 million in 2021 from $134 million in 2020. Lower copper
head grades as per the mining plan in 2022 will lead to copper
concentrate revenue falling to $290 million in 2022 from $370
million in 2021 increasing to over $300 million in 2023 on head
grades improving. Less volatile sales of ferromolybdenum and
molybdenum concentrate of $170 million - $190 million per year in
2021-23 should contribute to a more sustainable top line, which
would amount to $580 million in 2021, $480 million in 2022 and over
$500 million in 2023. EBITDA will fall to about $160 million in
2022 improving to $180 million in 2023 on copper head grades
improving. The company's leverage, as measured by Moody's adjusted
Debt/EBITDA, will fall to 1.3x as of December 31, 2021 from 3.1x as
of year-end 2020. Strong free cash flow generation, augmented by
planned debt reduction, which is in line with the current debt
amortisation schedule, of up to about $250 million by year-end 2022
(including the liability for the acquisition of own shares, which
should be repaid by year-end 2021 under the current agreement),
should bring total Moody's adjusted debt in line with 2019 level by
the first half of 2022. Moody's adjusted leverage will be sustained
at about 2.0x-2.5x in 2021-23 under a range of price scenarios.

In October 2019 and December 2019 the company entered into
agreement with its shareholders, CRONIMET Mining GmbH and Makur
Erkati Gortsaran OJSC (Plant of Pure Iron), respectively, to
acquire 60% and 15% of the share capital in ZCMC, respectively, for
a total consideration of about $165 million. In accordance with the
terms of the sales-purchase agreements (SPAs), ZCMC settled $65
million of the purchase consideration in December 2019 while the
company had to pay the remaining $100 million in two installments:
$50 million until the end of 2020 and $50 million until the end of
2021. The company's obligations to the sellers of ZCMC shares
purchased in 2019 amounted to about $78 million as of 31.12.2020
and should be settled by the year-end 2021. The company is
currently in discussions with the sellers and aims to reschedule
the payment of the purchase price consideration targeting repayment
of about $28 million in 2021, $12 million in 2022, $20 million in
2023 and $18 million in 2024. Moody's treats this obligation as a
debt-like item and adds the amount of outstanding liability to the
financial debt.

The acquisition of own shares in 2019 increased the company's
leverage, as adjusted by Moody's, to about 4.0x as of 31.12.2019
compared with 2.3x as of 31.12.2018 and led to a pick-up in Moody's
adjusted debt to AMD202 billion as of 31.12.2020 compared with
AMD106 billion as of 31.12.2018. Expansion of EBITDA in 2020 caused
the leverage to contract to about 3.1x by year-end 2020 offsetting
to some extent increased debt balance.

Recognising the challenges, which the elevated debt could have on
the company's credit profile, the company initiated a search for a
strategic investor in 2019, to which it aimed offering up to 50%
minus one share in the share capital of ZCMC before cancelation of
treasury shares. Taking into account substantial increase in copper
prices since when the company initiated the search of the strategic
investor with the goal to farm out a minority stake in ZCMC, the
company reconsidered its decision now focusing on organic
deleveraging as its key strategic priority, although targeted
equity raises to strategic partners are still possible, albeit the
equity raise, if successful, is likely to be of a smaller size,
while the deal closing does not have any particular deadline.

In December 2019, the company modified its streaming agreements
with two of its streaming customers in such a way that it accrued a
contract asset (and obligation) of about $44 million in exchange
for the right to settle the streaming obligation by cash rather
than deliveries of copper concentrate with substantial discount,
which shall save the company about $15-$20 million per annum of
cash flows at copper price USD6,000 per tonne (the company's
estimate) and will positively impact its working capital dynamics.
The company's obligation under streaming contracts reduced
substantially to $36 million as of December 31, 2020 (December 31,
2019: $105 million), while the company has a fairly flexible
maturity profile on its streaming obligations until 2031. Moody's
does not view ZCMC's streaming transactions as debt financing.
Therefore, the agency does not add the initial streaming payments
to ZCMC's debt because Moody's views them more as a minority equity
interest in a project or a forward sale transaction, with the
underlying liability similar to deferred revenue.

ZCMC has an adequate liquidity. As of March 31, 2021, the company
had about $7.5 million of cash, supported by long-term overdraft
and revolver facilities from local banks totaling around $11
million. Moody's expects the company to generate operating cash
flow of around $150-$180 million over the next 12 months under the
assumption of copper and ferromolybdenum prices of $7,500 per tonne
and $26 per kilogram, respectively. This liquidity is sufficient to
comfortably cover the company's cash outflows, namely its
short-term debt maturities of around $64 million and capital
spending requirements of about $37 million, as well as payments to
its former shareholder of around $78 million, which is currently
being negotiated by the company with the goal to spread out the
maturities until 2024. The company's debt as of March 31, 2021 also
includes about $73.6 million outstanding facility from Trafigura
PTE due 2022-23. Prepayment from Trafigura PTE is offset through
the delivery of copper concentrate on market terms over more than 3
years from date of the facility receipt. Prepayment from Trafigura
PTE is accounted for as debt in the company's financial statements.
The company has a track record of refinancing its upcoming debt
maturities with its relationship banks even under fairly stressful
market conditions and is likely to be able to refinance part of its
short-term maturities in case of need.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectation that the company
will be able to reduce its leverage below 2.5x-3.0x over the next
12-18 months through a combination of EBITDA growth and planned
debt repayments, supported by favorable global demand and prices
for copper, while maintaining healthy liquidity over the same
period.

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

Moody's could upgrade the ratings if the company (1) reduces
absolute amount of Moody's adjusted debt (including liability for
the acquisition of own shares) by $150 million - $200 million
compared with year-end 2020; (2) demonstrates resilience in its
credit metrics to different price scenarios, with debt/EBITDA, as
adjusted by Moody's, falling towards 2.5x; and (3) consistently
demonstrates prudent liquidity management with liquidity cushion
sufficient to weather volatility in copper and molybdenum prices
over 18 months horizon.

Moody's could downgrade the ratings if (1) the company's leverage,
as measured by Moody's adjusted debt/EBITDA, deteriorates to above
3.5x on a sustained basis; (2) weak liquidity is not timely
addressed; or (3) operating metrics (production, metal content,
recovery) materially weaken.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS

ZCMC's mining activities are exposed to environmental and safety
risks, in particular to the potential collapses or leakages of
tailings dams. However, these risks are somewhat mitigated by the
company's operational track record and continuous investments
focusing on increasing beneficiation efficiency, expanding capacity
for the tailings dams and enlarging processing capacity within the
grinding process. The company operates Artsvanik tailings dam with
the design capacity of 390 million cubic meters (m3) and actual
volume of 250 million m3, which is located 36 kilometers from ZCMC
on the Artsvanik river, where the company performs ongoing
restoration works and which will operate until at least 2031, with
annual fill-in volume of 12 million m3. The second tailings dam,
Hanqasar, which is located on the river Geghi, is not currently
operational, and will be subject to restoration works in 2022-25.
New tailing facility is being planned in-pit, at the mined out part
of the mine, which the company estimates will allow for water
reusage possibility as it will be close to its current mining
operations and will allow to reduce ZCMC's environmental
footprint.

ZCMC has a concentrated ownership structure with 25% of the company
owned by the company's management and a private investor, and 75%
of the company's shares being treasury shares, which the company
expects to cancel during 2021. The company's board of directors
lacks independent members. ZCMC used to have substantial related
party transactions, which included molybdenum processing under
tolling scheme and molybdenum sales, which were conducted with the
companies under common control on an arm's length basis. Inter
alia, molybdenum concentrate was processed at the Plant of Pure
Iron and AMP Holding LLC under a tolling arrangement at a fixed fee
into ferromolybdenum and was exported by ZCMC on an arm's length
basis to Cronimet group of companies, which used to be ZCMC's
direct parent and the company under common control, respectively.
Following acquisition of a 75% stake in the company from its former
shareholders, Makur Erkati Gortsaran OJSC (Plant of Pure Iron) and
CRONIMET Mining AG, the transactions related to molybdenum
processing and molybdenum sales via the above mentioned entities
continue, however only AMP Holding LLC could be considered as a
related party as its controlled by the company's management.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Zangezur Copper Molybdenum Combine CJSC (ZCMC) is one of the
largest exploration and mining companies in Armenia. The company
principally produces copper concentrate and molybdenum from its
single open-pit mine. The company generated revenue of $476 million
and Moody's-adjusted EBITDA of $134 million in 2020. ZCMC is
privately owned by the company's management and a private investor
(25%), while 75% of the company's shares are treasury shares, which
the company expects to cancel during 2021.




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FERRATUM OYJ: Fitch Gives 'B-(EXP)' Rating to New Sub. Hybrid Notes
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Fitch Ratings has assigned Ferratum Oyj's (Ferratum) proposed new
issuance of subordinated hybrid perpetual capital notes an expected
rating of 'B-(EXP)'/RR6. Fitch has also affirmed Ferratum's
Long-Term Issuer Default Rating (IDR) of 'B+' with a Negative
Outlook and the long-term debt rating assigned to the senior
unsecured notes issued by Ferratum Capital Germany GmbH (Ferratum
Capital Germany) at 'B+/RR4'.

The rating of the planned subordinated issue with an indicative
size of between EUR30 million to EUR50 million is notched down
twice from Ferratum's 'B+' Long-Term IDR.

The assignment of a final rating is contingent on the receipt of
final documents conforming to information already received.

KEY RATING DRIVERS

Fitch has notched the subordinated perpetual hybrid callable notes
twice from Ferratum's Long-Term IDR as the notes will represent
subordinated obligations of the company, which rank junior to any
present or future claims in respect of all unsubordinated
obligations and subordinated indebtedness of the company. The
notching also recognises Fitch's expectation of zero recovery
prospects for the subordinated notes, which corresponds to a
recovery rating of 'RR6'.

Ferratum is an online-focused consumer and SME finance company
operating in the high-cost credit sector with an international
footprint in 19 countries, including a strong presence in its
domestic market, Finland. The company is listed on the prime
standard segment of the Frankfurt Stock Exchange and also
incorporates a Malta-domiciled bank (Ferratum Bank p.l.c., not
rated) under its wider franchise.

Ferratum's Long-Term IDR reflects its concentrated business model
and evolving franchise as a predominantly pan-European
online-focused, specialised consumer lender in a niche market
segment, which remains exposed to an evolving regulatory landscape
in most of its key target markets. The rating also takes into
account Ferratum's elevated leverage profile, generally sound
(albeit recently weakened) profitability and inherent asset quality
risk arising from its focus on high-cost consumer lending.

The Negative Outlook on Ferratum's Long-Term IDR reflects Fitch's
view that while near-term rating pressures arising from the
Covid-19 pandemic in 2020 have somewhat abated, downside risk
prevails over the short to medium term, particularly with respect
to franchise resilience and asset quality strength.

The proceeds of the new subordinated hybrid notes will principally
be used for general corporate purposes. This includes the potential
re-financing of any upcoming bond maturities at Ferratum Capital
Germany (its wholly owned subsidiary), which currently has EUR180
million in unsecured notes outstanding (earliest maturity: EUR100
million in May 2022).

Fitch has assigned no equity credit to the planned issue due to a
significant coupon step-up within five years (indicatively 450bp),
which notably exceeds Fitch's stipulated aggregate coupon step-up
threshold of 100bp. In Fitch's view, this implies a strong
incentive for the issuer to exercise its right to call, which in
turn limits the permanence and loss absorption capacity of the
issuance on a sustained basis.

Proforma for the planned issue, Fitch expects balance sheet
leverage (gross debt to tangible equity) to increase moderately on
a post-transaction basis, but remaining within Fitch's stated
negative rating trigger of 8x on a sustained basis. Assuming that
issue proceeds are used for the refinancing of existing debt (i.e.
bonds issued by Ferratum Capital Germany), the transaction would be
leverage neutral.

For 1Q21, the company reported a small EUR0.6 million pre-tax
profit (1Q20: EUR8.3 million pre-tax loss), supported by the
tightening of its underwriting criteria during the Covid-19
pandemic as well as dedicated cost containment efforts. While the
planned issue could result in increased finance charges (subject to
final pricing and the use of proceeds), the net impact on
profitability (and also debt servicing) should be reasonably well
contained given the limited size of the planned of issue.

Ferratum has an ESG Relevance Score of '4' for Exposure to Social
Impacts and Customer Welfare stemming from a business model focused
on high-cost consumer lending and hence exposure to shifts of
consumer or social preferences and to increasing regulatory
scrutiny. This has a moderately negative influence on the rating in
terms of impact on the pricing strategy, product mix, and targeted
customer base and is relevant to the ratings in conjunction with
other factors.

RATING SENSITIVITIES

SUBORDINATED NOTES

The subordinated notes' expected rating is primarily sensitive to
changes in Ferratum's Long-Term IDR.

Changes to Fitch's assessment of going concern loss absorption or
recovery prospects for subordinated debt in a default scenario
(e.g. the introduction of features resulting in easily activated
going concern loss absorption or a permanent write-down of the
principal in wind-down) could also result in a widening of the
notching for the subordinated notes' rating to more than two
notches below Ferratum's Long-Term IDR.

LONG-TERM IDR

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

-- A significant increase in leverage measured as gross debt to
    tangible equity above 8x;

-- A weaker franchise, arising from a sustained loss in
    revenue/operational losses, an adverse reputational event, or
    a significant tightening of regulatory requirements in key
    markets resulting in a significant loss of business or notable
    margin pressure could result in a downgrade;

-- Increased risk appetite leading to higher credit losses as the
    product mix evolves toward larger and longer-term origination
    (such as SME loans), notably if combined with looser
    provisioning standards, pressuring profitability and
    ultimately eroding Ferratum's capital base;

-- Signs of funding weakness in the form of a loss of retail
    deposits at Ferratum Bank or a loss of wholesale funding
    market access leading to higher refinancing risk;

-- Increased structural subordination risk for wholesale
    creditors outside the bank or a marked increase in group
    liabilities outside Ferratum Bank if it leads to materially
    lower debt serviceability at parent company level.

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

-- Materially lower leverage approaching 5x on a sustained basis;

-- A demonstrated franchise resilience through improved scale and
    pricing power without a marked increase in risk appetite;

-- A stabilisation in the operating environment, in turn
    translating into business model stability, better franchise
    entrenchment and asset quality improvements.

BEST/WORST CASE RATING SCENARIO

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

ESG CONSIDERATIONS

Ferratum Oyj: Exposure to Social Impacts: '4', Customer Welfare -
Fair Messaging, Privacy & Data Security: '4'

Ferratum has an ESG Relevance Score of '4' for Exposure to Social
Impacts as a result of its exposure to the high-cost consumer
lending sector. As the regulatory environment evolves (including a
tightening of rate caps), this has a moderately negative influence
on the rating in terms of Fitch's assessment of Ferratum's business
model.

Ferratum has an ESG Relevance Score of '4' for Customer Welfare,
which arises in particular in the context of fair lending
practices, pricing transparency and the potential involvement of
foreclosure procedures as part of its focus on the high-cost
consumer credit segment. This has a moderately negative influence
on the rating in terms of Fitch's assessment of risk appetite and
asset quality.

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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ARAGVI FINANCE: Fitch Assigns Final B Rating on US$450MM Eurobonds
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Fitch Ratings has assigned Aragvi Finance International DAC's
USD450 million Eurobonds a final long -term senior secured debt
rating of 'B' with a Recovery Rating of 'RR4' on completion of a
USD50 million tap. Fitch has also affirmed Aragvi Holding
International Limited's (Trans-Oil) Foreign Currency and Local
Currency Long-Term Issuer Ratings (IDRs) at 'B' with Stable
Outlook.

The incremental EUR50 million debt is neutral for leverage as the
company intends to use the proceeds to repay outstanding amounts
under the pre-export finance (PXF) facility and uncommitted lines.
This will improve Trans-Oil's liquidity by reducing the company's
short-term debt.

The IDRs of Trans-Oil reflect its small scale in the global
agricultural commodity processing and trading market. The ratings
also reflect Fitch's expectation of moderate leverage despite a
larger debt quantum in connection with the acquisition of Serbian
Victoria Oil and increase in outstanding bond debt. The ratings are
supported by Trans-Oil's dominant and well-protected market
position in agricultural exports and sunflower seed crushing in
Moldova and Fitch's expectation that growing operations outside
Moldova will not expose the company to higher commodity risks.

The Stable Outlook reflects Fitch's expectation of adequate
liquidity position and assumes the renewal of PXF facility ahead of
its maturity in July 2021.

KEY RATING DRIVERS

Operations Outside Moldova Growing: Over the past two years,
Trans-Oil has grown its operations outside Moldova by acquiring a
plant in Romania and growing origination volumes in Ukraine,
Argentina, Russia and other markets. EBITDA generated outside
Moldova accounted for 20% of the FY20 (fiscal year-end June) total
and 43% of the total in 1HFY21. This helped Trans-Oil lower
single-country concentration and avoid a reduction in EBITDA in
1HFY21 as the harvest in Moldova almost halved due to drought.
Fitch views diversification outside Moldova as positive for the
ratings as long as it does not expose the company to higher
commodity risks or create profit volatility.

Increased Scale: Trans-Oil's EBITDA increased more than 50% yoy to
USD94 million in FY20. Improved liquidity after its debut Eurobond
placement in 2019 enabled Trans-Oil to finance the purchase of
greater volume of agricultural commodities compared with previous
years and supported expansion outside Moldova. Fitch assumes that
Trans-Oil will mostly grow organically over the next three years,
with around EUR100 million of the Eurobond proceeds likely to be
invested in working capital to increase crops procurement.

Nevertheless, Fitch expects Trans-Oil to remain small in the global
agricultural commodity trading and processing market. Trans-Oil's
EBITDA of USD94 million was around 5x lower than Ukrainian peer
Kernel Holding S.A.'s.

Expansion into Serbia: Trans-Oil plans to consolidate Serbian
bottled sunflower oil producer Victoria Oil, which was acquired by
its shareholders in December 2020. The acquisition is cashless but
Trans-Oil will consolidate around USD60 million debt. Fitch treats
shareholder loans, which were used to fund the acquisition, as
equity due to their payment-in-kind nature, structural
subordination and maturity beyond the Eurobond's. The acquisition
will allow Trans-Oil to increase its presence in branded consumer
oils, which is less volatile than bulk oil, and leverage its
procurement capabilities in the Danube river area.

Little Rating Headroom: Fitch projects that Trans-Oil's readily
marketable inventories (RMI)-adjusted funds from operations (FFO)
net leverage will temporarily exceed Fitch's negative rating
sensitivity of 4.5x at end-FY21 mostly because of the timing of the
Victoria Oil consolidation. The full contribution of Victoria Oil
to the company's EBITDA will drive a reduction in leverage in FY22
to levels that are commensurate with the rating. However, Fitch
expects rating headroom to remain limited due to additional
investments in inventory and Fitch's assumption that commodity
prices will normalise after soaring in FY20-FY21.

Strong Market Position in Moldova: Trans-Oil's dominant market
position in Moldova's agricultural exports and sunflower seed
crushing underpins the IDRs. In FY20, Trans-Oil exported 62% of
agricultural commodities in Moldova and accounted for 93% of
sunflower seeds crushed in the country. A major competitive
advantage is its ownership of material infrastructure assets as it
operates the country's largest inland silo network and the only
seagoing vessel port. With an 11.5% EBITDA margin in FY20,
Trans-Oil has higher profit margins than most Fitch-rated peers in
the sector due to its asset-heavy business model and strong shares
in its procurement market.

Low Competition in Moldova: Trans-Oil's dominant market position in
Moldova creates substantial market entry barriers for new
competitors and ensures the company's smooth access to crops
procurement in the country. Due to its market position in Moldova,
Trans-Oil benefits from significantly lower competition risks in
procuring crops than its peers in Russia and Ukraine, two other
crop-producing countries in the Black Sea region. This reflects
higher market consolidation and the absence of international
commodity traders and processors in Moldova. Fitch does not expect
the competitive environment in Moldova to materially change over
the medium term.

RMI Adjustments: Fitch applied RMI adjustments in evaluating
Trans-Oil's leverage and interest coverage ratios and liquidity.
Certain commodities traded by Trans-Oil fulfil the Fitch's
eligibility criteria for RMI adjustments as 90% of its
international oilseeds and grain sales volumes are made on the
basis of forward contracts. The differential between RMI-adjusted
and RMI-unadjusted FFO net leverage is around 1.0x.

DERIVATION SUMMARY

Trans-Oil compares well with Ukrainian sunflower seed crusher and
grain trader Kernel Holdings S.A (BB-/Stable) due to similarity of
operations and vertically-integrated models, which include sizeable
logistics and infrastructure assets. The main difference in
business models is Kernel's integration into crop growing, which
limits sourcing and procurement risk, and a wider and diversified
customer base. The two-notch differential between the companies'
ratings is explained by Kernel's greater business scale and larger
sourcing market, which provides greater protection from weather
risks. In contrast, competition risks for Trans-Oil are lower than
Kernel's due to its stronger market position and absence of
competition from global commodity traders and processors in
Moldova.

Trans-Oil is considerably smaller in business size and has a weaker
ranking on a global scale than international agricultural commodity
traders and processors, such as Cargill Incorporated (A/Stable),
Archer Daniels Midland Company (A/Stable), Bunge Limited
(BBB-/Stable) and Viterra Limited (BBB-/Stable). It is also more
leveraged than these peers.

No Country Ceiling, parent-subsidiary linkage or
operating-environment aspects apply to Trans-Oil's ratings.

KEY ASSUMPTIONS

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

-- Increasing sunflower seeds crushing volumes over FY21-FY24,
    due to construction of a high-oleic and organic seeds crushing
    plant with capacity coming on stream in FY21, the successful
    integration of Victoria Oil by FYE21, as well as expansion of
    procurement outside its core region;

-- Normalisation of agricultural commodity prices after their
    increase in FY20-FY21;

-- Maintaining profit margins in the origination and crushing
    segments in Moldova;

-- EBITDA margin at 8.5% over FY21-FY24, diluted by less
    profitable origination outside Moldova;

-- Capex of around USD10 million a year in FY21-FY24;

-- Working-capital outflows in FY21-FY22, driven by an increase
    in commodity trading volumes traded;

-- No M&A, apart from the integration of Victoria Oil in FY21;

-- No dividends for the next four years.

KEY RECOVERY RATING ASSUMPTIONS

The senior secured Eurobond is rated in line with Trans-Oil's IDR
of 'B', reflecting average recovery prospects given default. The
Eurobond is secured by pledges over substantially all assets of key
Moldovan entities, excluding commodities. It also benefits from
guarantees from operating companies that together account for
approximately 81% of Trans-Oil's EBITDA and 85% of assets in FY20.

Fitch has applied a liquidation value approach as it results in a
higher return to creditors than a going-concern approach. The
liquidation estimate reflects Fitch's view of the value of
inventory and other assets that can be realised in a reorganisation
and distributed to creditors.

Fitch has applied customary advance rates to trade receivables,
inventory and fixed assets. This resulted in Fitch's debt waterfall
analysis generating a ranked recovery in the 'RR4' band for the
USD450 million (including the USD50 million tap) senior secured
Eurobond, indicating a 'B' rating. The waterfall analysis output
percentage on current metrics and assumptions decreased to 40% from
45% previously, driven by the tap.

RATING SENSITIVITIES

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

-- Positive rating action is currently not envisaged.
    Nevertheless, factors that Fitch considers relevant for
    potential positive rating action include steady growth in
    Trans-Oil's operational scale (as measured by EBITDA),
    improvement of diversification by commodity and sourcing
    market, and maintaining a conservative capital structure and
    risk management practices.

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

-- Weakening of liquidity position or risk of insufficient
    availability of trade-finance lines to fund trading and
    processing operations.

-- More aggressive risk-management or financial policies, as
    evident in increased profit volatility and greater-than
    expected investments in working capital, capex and M&A or
    dividend payment.

-- RMI-adjusted FFO net leverage above 4.5x and RMI-adjusted FFO
    interest cover below 2.0x for more than two consecutive years.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: At end- 2020, Fitch estimates Trans-Oil held
USD89 million of cash and Fitch-adjusted RMI of USD180 million,
sufficient to cover projected short-term obligations, including
USD185 million of short-term debt. Fitch expects Trans-Oil to be
able to maintain adequate internal liquidity over the next three
years.

The proceeds of the tap will be used to repay outstanding amounts
under PXF and uncommitted lines, improving Trans-Oil's liquidity.

Fitch also assumes that Trans-Oil will extend its USD180 million
PXF facility on maturity in end-July 2021. Fitch believes that
refinancing risks are manageable due to projected moderate leverage
and Trans-Oil's good record of re-establishing and increasing the
limit of PXF facility since it was first obtained in July 2014.

ISSUER PROFILE

Trans-Oil is a vertically integrated agro-industrial business based
in Moldova with its core activities focused on origination and
wholesale trade of grain and sunflower seeds, storage and
trans-shipment operations and the production of vegetable oils
(bottled and in bulk).

SOURCES OF INFORMATION

For the RMI calculations, Fitch applied a 60% advance rate to
eligible inventory to reflect basis and counterparty risks. In
Fitch's calculation of leverage and interest cover metrics, Fitch
excluded debt associated with financing RMI and reclassified the
related interest costs as cost of goods sold.

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.


AVOCA CLO XXIV: Fitch Assigns B-(EXP) Rating on F-R Notes
---------------------------------------------------------
Fitch Ratings has assigned Avoca CLO XXIV DAC's refinancing notes
expected ratings.

DEBT                RATING
----                ------
Avoca CLO XXIV DAC

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

TRANSACTION SUMMARY

Avoca CLO XXIV 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 redeem the refinanced notes and to upsize the
portfolio with a new target par of EUR500 million. The portfolio is
actively managed by KKR Credit Advisors (Ireland) Unlimited Company
(KKR). The collateralised loan obligation (CLO) has a 4.6-year
reinvestment period and an 8.6-year weighted average life (WAL).

KEY RATING DRIVERS

Average Portfolio Credit Quality (Neutral): Fitch places the
average credit quality of obligors to be in the 'B'/'B category.
The Fitch weighted average rating factor (WARF) of the identified
portfolio is 34.0, compared with a maximum WARF of 36.25 for the
pricing point.

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 63.0%,
compared with a minimum WARR of 62.0% for the pricing point.

Diversified Asset Portfolio (Positive): The transaction will have
several Fitch test matrices corresponding to two top 10 obligors'
concentration limits. The manager can interpolate within and
between two matrices. 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 the asset portfolio will not be exposed to
excessive concentration.

Portfolio Management (Positive): The transaction has a 4.6-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 A, B-1/B-2, C, D, E and F notes are one notch
higher than the model-implied rating (MIR). The default rate
shortfalls at the assigned rating are as follows: -0.76% for the
class A notes, -0.27% for the class B-1/B-2 notes, -0.86% for the
class C notes, -2.63% for the class D notes, -0.30% for the class E
notes and -2.77% for the class F notes. The ratings are supported
by the significant default cushion on the identified portfolio at
the assigned ratings due to the notable cushion between the
transaction's covenants and the portfolio's parameters, including
higher diversity (167 obligors) of the identified portfolio.

The class F notes' deviation from the MIR reflects Fitch'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 four 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 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.

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 Outlooks on all
the notes reflect the default rate cushion in the sensitivity
analysis run in light of the coronavirus pandemic.

Coronavirus 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 all 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

Avoca CLO XXIV 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.


BARINGS EURO 2019-1: Fitch Affirms B- Rating on Class F Notes
-------------------------------------------------------------
Fitch Ratings has affirmed Barings Euro CLO 2019-1 DAC's notes and
revised the Outlook on the class D notes to Stable from Negative.

     DEBT                 RATING          PRIOR
     ----                 ------          -----
Barings Euro CLO 2019-1 DAC

A XS2031990745     LT  AAAsf   Affirmed   AAAsf
B-1 XS2031991552   LT  AAsf    Affirmed   AAsf
B-2 XS2031992105   LT  AAsf    Affirmed   AAsf
C-1 XS2031992873   LT  Asf     Affirmed   Asf
C-2 XS2031993418   LT  Asf     Affirmed   Asf
D XS2031994069     LT  BBB-sf  Affirmed   BBB-sf
E XS2031994903     LT  BB-sf   Affirmed   BB-sf
F XS2031995033     LT  B-sf    Affirmed   B-sf

TRANSACTION SUMMARY

Barings Euro CLO 2019-1 DAC is a cash-flow CLO mostly comprising
senior secured obligations. The transaction is within its
reinvestment period and is actively managed by the collateral
manager.

KEY RATING DRIVERS

Coronavirus Stress Sensitivity: The affirmation reflects the
portfolio's broadly stable credit quality over the last 12 months.
The class A to C notes show a healthy default-rate cushion in the
sensitivity analysis Fitch ran in light of the coronavirus
pandemic, which is reflected in the Stable Outlook. The class D
notes show a small shortfall, but Fitch has revised their Outlook
to Stable as the shortfall is small and driven by a back-loaded
default scenario, which is not an imminent risk. The class E and F
notes still show large shortfalls in the coronavirus stress
scenario as reflected in their Negative Outlooks.

The rating action follows the update of Fitch's CLO coronavirus
stress scenario to assume half of the corporate exposure on
Negative Outlook is downgraded by one notch, instead of 100%.

Deviation from Model-implied Ratings: Based on the current
portfolio analysis, the class E and F notes' ratings are one notch
above their respective model-implied ratings. At their current
ratings, both tranches show a small shortfall driven by the
back-loaded default timing scenario, which is not an imminent risk.
In Fitch's view, both notes are compatible with their current
ratings given the stable portfolio performance. 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.

Stable Asset Performance: The portfolio's weighted average credit
quality is 'B'/'B-' and slightly below par by 110 bp. As per the
latest investor report dated 11 May 2021, the transaction was
passing all portfolio profile tests, coverage tests and collateral
quality tests except for the Fitch- calculated weighted average
rating factor (WARF), which it slightly failed and Fitch 'CCC'
obligation tests.

As at 5 June 2021, the Fitch-calculated WARF of the portfolio was
36.24, slightly lower than the trustee-reported WARF of 11 May 2021
of 36.49, owing to rating migration and unrated assets, which Fitch
treated as 'CCC'. As of 5 June 2021, exposure to assets with a
Fitch-derived rating (FDR) of 'CCC+' and below was 12.00%
(excluding unrated assets) and 13.77% (including unrated assets)
above the limit of 7.50%.

High Recovery Expectations: The portfolio comprises 95.5% 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 65.4% as per the report.

Portfolio Well Diversified: The portfolio is well diversified
across obligors, countries and industries. The top 10 obligors'
concentration is 14.26% and no obligor represents more than 2% of
the portfolio balance. As per Fitch's calculation, the largest
industry is healthcare at 9.31% of the portfolio balance, against
limits of 17.5%.

RATING SENSITIVITIES

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

-- At closing, Fitch used a standardised stressed 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.

Factor 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
    larger loss expectation than initially assumed due to
    unexpectedly high levels of default and portfolio
    deterioration. However, this is not Fitch's base case.

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 single-notch downgrade to the FDRs
of the corporate exposures on Negative Outlook (floored at CCC+).
This sensitivity has no rating impact on 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

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.

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.


DRYDEN 52 EURO: 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
Dryden 52 Euro CLO 2017 DAC (the "Issuer"):

EUR1,500,000 Class X-R Senior Secured Floating Rate Notes due
2034, Assigned (P)Aaa (sf)

EUR246,000,000 Class A-R Senior Secured Floating Rate Notes due
2034, Assigned (P)Aaa (sf)

EUR16,000,000 Class B-1-R Senior Secured Floating Rate Notes due
2034, Assigned (P)Aa2 (sf)

EUR20,000,000 Class B-2-R Senior Secured Fixed Rate Notes due
2034, Assigned (P)Aa2 (sf)

EUR26,000,000 Class C-R Mezzanine Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)A2 (sf)

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

EUR20,000,000 Class E-R Mezzanine Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)Ba3 (sf)

EUR15,400,000 Class F-R Mezzanine Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)B3 (sf)

RATINGS RATIONALE

The rationale for the ratings are 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 100% ramped as of the closing date and
to comprise of predominantly corporate loans to obligors domiciled
in Western Europe.

PGIM Loan Originator Manager Limited ("PGIM") will continue
managing 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 two 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.

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): 3125

Weighted Average Spread (WAS): 3.80%

Weighted Average Coupon (WAC): 4.05%

Weighted Average Recovery Rate (WARR): 41.50%

Weighted Average Life (WAL): 8.5 years


DRYDEN 88 EURO: Moody's Assigns B2 Rating to EUR9.8MM Class F Notes
-------------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to debt issued by Dryden 88 Euro CLO
2020 DAC (the "Issuer"):

EUR120,000,000 Class A Senior Secured Floating Rate Loan due 2034,
Definitive Rating Assigned Aaa (sf)

EUR18,400,000 Class B-1 Senior Secured Floating Rate Notes due
2034, Definitive Rating Assigned Aa2 (sf)

EUR25,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2034,
Definitive Rating Assigned Aa2 (sf)

EUR10,200,000 Class C-1 Mezzanine Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned A2 (sf)

EUR18,400,000 Class C-2 Mezzanine Secured Deferrable Fixed Rate
Notes due 2034, Definitive Rating Assigned A2 (sf)

EUR29,400,000 Class D Mezzanine Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned Baa3 (sf)

EUR21,000,000 Class E Mezzanine Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned Ba3 (sf)

EUR9,800,000 Class F Mezzanine Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating 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.

The Issuer is a managed cash flow CLO. At least 92.5% of the
portfolio must consist of senior secured obligations and up to 7.5%
of the portfolio may consist of senior unsecured obligations,
second-lien loans, mezzanine obligations and high yield bonds. The
portfolio is expected to be 90% 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 six month ramp-up period in compliance with the
portfolio guidelines.

PGIM Loan Originator Manager Limited and PGIM Limited (together
"PGIM") 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 4.6-year reinvestment period.
Thereafter, subject to certain restrictions, purchases are
permitted using 1) principal proceeds from unscheduled principal
payments and proceeds from sales of credit risk obligations or
credit improved obligations and 2) any scheduled principal proceeds
or discretionary sale proceeds up to the first payment date
following the end of the reinvestment period.

In addition to the nine classes of debt rated by Moody's, the
Issuer also issued EUR38,950,000 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 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's performance is subject to uncertainty. The debt's
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's
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: 45

Weighted Average Rating Factor (WARF): 3053

Weighted Average Spread (WAS): 3.90%

Weighted Average Coupon (WAC): 4.00%

Weighted Average Recovery Rate (WARR): 41.5%

Weighted Average Life (WAL): 8.5 years


FAIR OAKS II: Moody's Assigns B3 Rating to EUR8.7MM Class F-R Notes
-------------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to refinancing notes issued by Fair
Oaks Loan Funding II Designated Activity Company (the "Issuer"):

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

EUR213,500,000 Class A-R Senior Secured Floating Rate Notes due
2034, Definitive Rating Assigned Aaa (sf)

EUR37,600,000 Class B-R Senior Secured Floating Rate Notes due
2034, Definitive Rating Assigned Aa2 (sf)

EUR21,000,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned A2 (sf)

EUR24,500,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned Baa3 (sf)

EUR19,300,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned Ba3 (sf)

EUR8,700,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned B3 (sf)

RATINGS RATIONALE

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

The Issuer issued the notes in connection with the re-issuance of
the following classes of notes (the "Original Notes"): Class X
Notes, Class A Notes, Class B-1 Notes, Class B-2 Notes, Class C
Notes, Class D Notes, Class E Notes due May 2031 previously issued
in May 2020.

As part of this reset, the Issuer will increase the target par
amount by EUR100 million to EUR350 million. In addition, the Issuer
has amended the base matrix and modifiers that Moody's has taken
into account for the assignment of the definitive ratings.

The Issuer is a managed cash flow CLO. At least 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.

Fair Oaks Capital Ltd 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 4.2 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.

Interest and principal amortisation amounts due to the Class X-R
Notes are paid pro rata with payments to the Class A Notes. The
Class X-R Notes amortise by 25% or EUR250,000.00 over the first
four payment dates, starting from the first payment date.

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: EUR350,000,000

Diversity Score: 45

Weighted Average Rating Factor (WARF): 3076

Weighted Average Spread (WAS): 3.40%

Weighted Average Coupon (WAC): 4.00%

Weighted Average Recovery Rate (WARR): 45%

Weighted Average Life (WAL): 8.5 years


HARVEST CLO XXII: Fitch Affirms B- Rating on Class F Notes
----------------------------------------------------------
Fitch Ratings has revised Harvest CLO XXII DAC class C and D notes'
Outlook to Stable from Negative. All ratings have been affirmed.

     DEBT              RATING           PRIOR
     ----              ------           -----
Harvest CLO XXII DAC

A XS2025983821   LT  AAAsf   Affirmed   AAAsf
B XS2025984555   LT  AAsf    Affirmed   AAsf
C XS2025985958   LT  Asf     Affirmed   Asf
D XS2025986501   LT  BBB-sf  Affirmed   BBB-sf
E XS2025987145   LT  BB-sf   Affirmed   BB-sf
F XS2025987574   LT  B-sf    Affirmed   B-sf

TRANSACTION SUMMARY

The transaction is a cash flow CLO, mostly comprising senior
secured obligations. The transaction is still within its
reinvestment period and is actively managed by Investcorp Credit
Management EU Limited.

KEY RATING DRIVERS

Stable Asset Performance: The affirmations reflect a broadly stable
portfolio credit quality since September 2020, when Fitch took its
last rating action on the transaction. Harvest CLO XXII DAC was
below par by 1.2% as of the latest investor report dated 30 April
2021. The transaction was passing all portfolio profile tests,
collateral quality tests and coverage tests except for the Fitch's
weighted average rating factor (WARF) test (33.7 versus a limit of
33). It has no exposure to defaulted assets.

Investment-Grade Notes Resilient

The Stable Outlooks on all investment-grade notes, including
today's Outlook revisions, reflect the default-rate cushion in the
sensitivity analysis Fitch ran in light of the coronavirus
pandemic. The Negative Outlooks on the class E and F notes reflect
their lack of resilience under Fitch's baseline scenario
sensitivity. Fitch has recently updated its CLO coronavirus stress
scenario to assume half of the corporate exposure on Negative
Outlook is downgraded by one notch instead of 100%.

'B'/'B-' Portfolio

Fitch assesses the average credit quality of the obligors in the
'B'/'B-' category. The Fitch WARF calculated by Fitch (assuming
unrated assets are CCC) and by the trustee for Harvest CLO XXII
DAC's current portfolio was 33.85 and 33.7, respectively, above the
maximum covenant of 33. The Fitch WARF would increase by 1.3 after
applying the coronavirus stress.

High Recovery Expectations

Senior secured obligations comprise at least 99% of the portfolio.
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 under Fitch's calculation is 62.6%.

Diversified Portfolio

The portfolio is well-diversified across obligors, countries and
industries. The top 10 obligor concentration is no more than 16.7%,
and no obligor represents more than 2.1% of the portfolio balance.

Model-Implied Rating Deviation

The ratings of the class E and F are one notch higher than the
model-implied ratings (MIR). The current ratings are supported by
the stable asset performance since the last review and available
credit enhancement. The class F notes' deviation from the MIR
reflects Fitch's view that the tranche has a significant margin of
safety given their credit enhancement level. 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:

-- 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.

Factor 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
    larger loss expectation than initially assumed due to
    unexpectedly high levels of default and portfolio
    deterioration. As disruptions to supply and demand due to
    Covid-19 become apparent for other sectors, loan ratings in
    those sectors would also come under pressure. Fitch will
    update the sensitivity scenarios in line with the view of its
    leveraged finance team.

Coronavirus Severe Downside Stress

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 severe downside stress
incorporates a single-notch downgrade to all the corporate exposure
on Negative Outlook. This scenario would result in a maximum
two-notch downgrade across the capital structure.

BEST/WORST CASE RATING SCENARIO

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

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

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

DATA ADEQUACY

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

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

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


NORTH WESTERLY VII: Moody's Assigns B2 Rating to Class F Notes
--------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by North Westerly VII
ESG CLO DAC (the "Issuer"):

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

EUR27,500,000 Class B-1 Senior Secured Floating Rate Notes due
2034, Definitive Rating Assigned Aa2 (sf)

EUR12,500,000 Class B-2 Senior Secured Fixed Rate Notes due 2034,
Definitive Rating Assigned Aa2 (sf)

EUR28,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned A2 (sf)

EUR24,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned Baa3 (sf)

EUR20,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned Ba2 (sf)

EUR12,000,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating 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.

The Issuer is a managed cash flow CLO. At least 95% of the
portfolio must consist of senior secured obligations and up to 5%
of the portfolio may consist of senior unsecured obligations,
second-lien loans, mezzanine obligations and high yield bonds. The
portfolio is expected to be 90% 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.

NIBC Bank N.V. 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 4.4-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 workout obligations using principal proceeds
subject to a set of conditions including maintenance of the par
amount of the portfolio and satisfaction of the par coverage
tests.

In addition to the seven classes of notes rated by Moody's, the
Issuer has issued EUR15,000,000 Class M-1 Notes due 2034,
EUR35,000,000 Class M-2 Notes due 2034 and EUR36,950,000

Subordinated Notes due 2034 which are not rated. The Class M-1
Notes and Class M-2 Notes accrue interest in an amount equivalent
to the senior and subordinated management fees and its notes'
payments are pari passu with the payment of the senior and
subordinated management fees.

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: 46

Weighted Average Rating Factor (WARF): 2992

Weighted Average Spread (WAS): 3.30%

Weighted Average Coupon (WAC): 4.25%

Weighted Average Recovery Rate (WARR): 45.0%

Weighted Average Life (WAL): 8.5 years


STOBART AIR: Aer Lingus Likely to Receive Penalty Payment
---------------------------------------------------------
Barry O'Halloran at The Irish Times reports that Aer Lingus is
likely to receive a penalty payment following the failure of its
regional partner, Stobart Air, at the weekend.

Stobart Air, which operated the Aer Lingus regional franchise,
ceased trading with the loss of 480 jobs, after its owner, British
transport and aviation group Esken, ended cash support for the
Irish airline, The Irish Times relates.

It has emerged that Aer Lingus is due to receive a penalty payment
as a result of Stobart Air's terminating the contract to provide
the larger airline's regional services before it was due to end in
December next year, The Irish Times discloses.

According to The Irish Times, in a statement, Esken said it
remained responsible for "certain obligations to Aer Lingus under
the franchise agreement" that became payable following its
termination.

Esken noted that the guarantees were given in 2017 and were the
reason it reacquired Stobart Air from Connect Airways in April last
year, according to The Irish Times.

The High Court appointed Deloitte Ireland partners Ken Fennell and
Mark Degnan as provisional liquidators to Stobart Air this week,
The Irish Times relays.




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

BANCA UBAE: Fitch Affirms 'B+' LongTerm IDR, Outlook Negative
-------------------------------------------------------------
Fitch Ratings has affirmed Banca UBAE S.p.A.'s (UBAE) Long-Term
Issuer Default Rating (IDR) at 'B+' and Viability Rating (VR) at
'b+'. The Outlook remains Negative.

The Negative Outlook reflects downside risks stemming from
deterioration of global growth prospects to Fitch's assessment of
the bank's profitability and asset quality and, ultimately,
capitalisation.

KEY RATING DRIVERS

The ratings of UBAE reflect its specialist trade-finance franchise
based on flows between Italy and its core markets in the Middle
East and North Africa (MENA) region, reasonable capital and
liquidity buffers, but also high concentrations on both sides of
its balance sheet. The ratings also reflect weak and below-industry
average profitability and above-average non-performing assets
(NPAs).

UBAE's asset quality metrics deteriorated in 2020, due primarily to
a significant holding of Lebanese government bonds, which became
impaired in 1Q20, and also to muted asset growth. As a result, the
NPA ratio (including on-and off-balance sheet credit exposures)
rose to 6.5%, from 5.3% at end-2019, and was only partly supported
by NPA disposals and recoveries.

Under Fitch's base case, however, Fitch does not expect the level
of NPAs to rise materially as the impact from the economic fallout
due to the pandemic should be manageable and the bank should
benefit from the tightening of its underwriting standards in 2020.
However, the negative trend of asset-quality factors highlights
downside risks remain from an uncertain operating environment and
the bank's high counterparty-risk concentration.

UBAE's performance metrics have come under pressure from subdued
business volumes and higher impairment charges in recent years. In
addition, one-off items relating to litigation costs and personnel
expenses also weighed on 2020 profitability, resulting in a third
consecutive year of annual losses. However, Fitch expects a gradual
improvement in revenue generation and a material decrease in the
cost base given reduced personnel expenses, lower funding cost due
to the conversion of a subordinated loan into shares and lower loan
impairment charges (LICs) given adequate current provisioning, in
Fitch's opinion.

The EUR58 million loss reported in 2020 eroded a significant share
of UBAE's EUR100 million capital increase completed in March 2020
but the overall impact on regulatory ratios was mitigated by a
nearly 30% reduction in risk-weighted assets. As a result, UBAE's
common equity Tier 1 (CET1) ratio improved to 19.1% at end-2020
from 17.4% a year earlier, maintaining adequate capital buffers
above regulatory minimum requirements. Fitch's assessment of
capital also considers the encumbrance by NPAs, which remained
moderate, despite weakening to around 18% at end-2020 from nearly
12% at end-2019. The negative trend of this factor highlights
downside risks to the bank's internal capital-generation capacity
through retained earnings.

UBAE's funding profile remains significantly reliant on funding
from majority shareholder Libyan Foreign Bank (LFB) and its
affiliates, which accounted for nearly 75% of total funding at
end-2020. Fitch expects LFB to continue supporting the bank's
funding profile. Nevertheless, the size of LFB's deposits at UBAE
can be volatile due to seasonal liquidity needs of the parent,
which could increase liquidity risks for UBAE. However, UBAE's
liquidity also benefits from the self-liquidating nature of
short-term trade-finance transactions and a large pool of liquid
assets, consisting of cash and bank placements, Italian government
securities and central-bank reserves. Its total liquidity coverage
ratio was materially above minimum regulatory requirements at
end-2020.

UBAE's Short-Term IDR of 'B' is the only option corresponding to a
'B+' Long-Term IDR.

SUPPORT RATING (SR) AND SUPPORT RATING FLOOR (SRF)

The '5' SR and the assigned 'No Floor' SRF also reflect Fitch's
view that support from the Italian authorities cannot be relied
upon, given that Italy has adopted resolution legislation that
requires senior creditors to participate in losses. In Fitch's
view, the likelihood of extraordinary support from UBAE's key
shareholder cannot be reliably assessed.

RATING SENSITIVITIES

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

-- UBAE's ratings could be downgraded on a material weakening in
    the CET1 ratio, particularly if it falls below 12% or if we
    view capitalisation as no longer being commensurate with the
    bank's risk profile, due for example, to an increase in
    capital encumbrance to unreserved NPA. Capital pressures could
    result from operating losses on a sustained basis or a
    material increase in NPA inflows.

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

-- UBAE's Outlook could be revised to Stable if downside risks to
    Fitch's forecasts reduce, for example, via a stabilisation of
    the operating environment that results in a sustained
    improvement in profitability and asset quality.

-- For UBAE's rating to be upgraded, the financial profile of the
    bank would need to materially strengthen, for example as a
    result of stronger and more stable operating environments
    leading to a sustained improvement in the bank's earnings and
    asset quality, with a positive impact on capitalisation,
    particularly capital encumbrance from unreserved NPAs.

SR AND SRF

An upward revision of the SRF and upgrade of the SR would be
contingent on a positive change in the Italian sovereign's
propensity to support UBAE, which is highly unlikely in Fitch's
view.

BEST/WORST CASE RATING SCENARIO

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

ESG CONSIDERATIONS

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


POPOLARE BARI 2016: Moody's Cuts Rating on Class B Notes to Caa2
----------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of two notes
in Popolare Bari NPLs 2016 S.r.l. These downgrades reflect lower
than anticipated cash-flows generated from the recovery process on
the non-performing loans (NPLs) which translates into a reduced
credit enhancement of the notes.

EUR126.5M Class A Notes, Downgraded to Ba2 (sf); previously on Jul
22, 2020 Downgraded to Ba1 (sf)

EUR14M Class B Notes, Downgraded to Caa2 (sf); previously on Jul
22, 2020 Downgraded to B3 (sf)

RATINGS RATIONALE

The rating action is prompted by lower than anticipated cash-flows
generated from the recovery process on the NPLs resulting in a
reduced credit enhancement.

Lower than anticipated cash-flows generated from the recovery
process on the NPLs:

Popolare Bari NPLs 2016 S.r.l. was underperforming the special
servicer's original projection already before coronavirus outbreak
in first quarter 2020. The portfolio is mainly concentrated in the
South of Italy and Islands (66% as of November 2020).

Borrower concentration: about 12% of the pool by Gross Book Value
is concentrated on the top 10 obligors which increases potential
performance volatility.

Industrial concentration: about 32% of the secured pool is backed
by industrial properties, a higher exposure than its peers.
Recoveries from this type of properties are volatile, especially
for big industrial buildings.

Cumulative gross collections represent 73% of the original GBV as
of November 2020. As of November 2020, the Cumulative Collection
Ratio was at 76%, below the limit for a subordination event at 90%.
A low Cumulative Collection Ratio as in this case means collections
are coming slower than anticipated. The NPV Cumulative
Profitability Ratio was at 102%. NPV Cumulative Profitability ratio
is the ratio between the Net Present Value of collections for
exhausted debt relationship, discounted at 3.5% yield, against the
expected collections as per the original business plan.

The latest business plan received in 2021 contemplates cumulative
gross collections below the 41% of the GBV at closing contemplated
in the original business plan. Moody's expects that transaction
will have additional difficulty improving underperformance as it
was already behind servicer's original projections before the Covid
outbreak.

Deterioration of the level of credit enhancement:

The mentioned lower than expected recovery rate translates into a
reduced credit enhancement of both Class A and Class B Notes.

In this respect Moody's notes that the advance rate of Class A at
21.8% as of November 2020 is higher than the 21.6% observed in May
2020. This is the ratio between the outstanding amount of the Class
A and the gross book value. This is the first reversal in the
reduction of advance rate since closing. Simulation of cashflows
from the remaining pool in light of portfolio characteristics,
coupled with the outstanding balance of the Class A notes are no
longer consistent with current rating.

In terms of the underlying portfolio, the reported GBV stood at
EUR351.96 million as of November 2020 down from EUR479.89 million
at closing. Out of the approximately EUR120 million reduction of
GBV since closing, principal payments to Class A has been in the
range of EUR50 million. The secured portion has decreased to 56.8%
from 63.4% at closing. Around 650 properties, representing around
30% of the assets backing the initial pool by value, have been sold
at 61% of the updated property values on average but showing a
decline for properties sold since 2018.
Overall profitability for this calculated as the ratio between
recoveries and write-offs (total recoveries plus losses) is 36%, in
the low range of Italian NPL securitisations Moody's rate.

Despite improvements after lowest collections suffered during
second quarter of 2020, the collections from June until November
2020 were still more than 10% below the average of semiannual
collections since closing.

NPL transactions' cash flows depend on the timing and amount of
collections. Measures imposed to contain the spread of the
coronavirus directly and severely affected the operability of
judicial systems, creating a backlog which has delayed NPLs
securitisations' gross recoveries. Due to the current
circumstances, Moody's has considered additional stresses in its
analysis, including a 6 to 12-month delay in the recovery timing.

Unpaid interest on Class B is EUR0.8 million as of November 2020,
since the subordination event was hit in May 2020. Cumulative
collections net of legal and procedure costs represent 76% of the
original business plan, while the subordination event applies for
cumulative net collections below 90%.

Moody's has taken into account the potential cost of the GACS
Guarantee within its cash flow modelling, while any potential
benefit from the guarantee for the senior Noteholders has not been
considered in its analysis.

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

The principal methodology used in these ratings was "Non-Performing
and Re-Performing Loan Securitizations Methodology" published in
April 2020.

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

Factors or circumstances that could lead to an upgrade of the
ratings include: (i) the recovery process of the non-performing
loans producing significantly higher cash-flows in a shorter time
frame than expected; (ii) improvements in the credit quality of the
transaction counterparties; and (iii) a decrease in sovereign
risk.

Factors or circumstances that could lead to a downgrade of the
ratings include: (i) significantly lower or slower cash-flows
generated from the recovery process on the non-performing loans due
to either a longer time for the courts to process the foreclosures
and bankruptcies, a change in economic conditions from Moody's
central scenario forecast or idiosyncratic performance factors. For
instance, should economic conditions be worse than forecasted and
the sale of the properties generate less cash-flows for the issuer
or take a longer time to sell the properties, all these factors
could result in a downgrade of the ratings; (ii) deterioration in
the credit quality of the transaction counterparties; and (iii)
increase in sovereign risk.




=========
M A L T A
=========

FIMBANK PLC: Fitch Lowers LongTerm IDR to 'B', Outlook Negative
---------------------------------------------------------------
Fitch Ratings has downgraded FIMBank p.l.c.'s (FIM) Long-Term
Issuer Default Rating (IDR) to 'B' from 'B+' and Viability Rating
(VR) to 'b' from 'b+'. The Outlook is Negative.

The downgrade reflects heightened pressures on FIM's business
model, performance (as evident in the net loss reported by the bank
in 2020) and capitalisation. In particular, Fitch sees increased
pressure on the bank's performance from lower margins and business
growth constraints given thin capital buffers over regulatory
minima.

The Negative Outlook reflects Fitch's view that further
asset-quality deterioration could add pressure to the bank's
already weakened financial performance and limited capital buffers.
It also reflects risks to the bank's strategy to gradually support
revenue with growth in higher-yielding assets and by exiting
unprofitable business lines.

KEY RATING DRIVERS

IDRS AND VR

The ratings reflect heightened pressures on FIM's business model,
weak asset quality and weakened profitability. They also reflect
risks to capitalisation from weak internal capital generation and
high unserved non-performing assets (NPAs). These factors are
balanced in part by the bank's broadly stable funding and liquidity
profile and moderate trade-finance franchise.

FIM has followed a de-risking strategy in recent years and has
shifted from corporate exposures to high-quality liquid assets.
This has supported its capital and liquidity buffers amid ongoing
asset-quality weakness and market volatility from the pandemic. As
a result of this strategy, however, growth in the bank's loan book
and assets have been muted and its margins have been significantly
squeezed. FIM plans to grow selectively in core markets, including
Malta, and to gradually exit higher-risk exposures to support more
stable returns.

FIM's asset quality deteriorated materially in 2020, primarily
driven by the pandemic. Fitch calculates FIM's NPA ratio (including
on-and off-balance sheet credit exposures) increased to 15% at
end-2020 from 10% at end-2019, which compares poorly with
Fitch-rated trade finance bank peers'. Impaired exposures are
mainly found in FIM's own portfolios as asset quality in
international subsidiaries' credit exposures has largely held up.

In addition, FIM's stage 2 loan exposures are significant
(end-2020: 29% of customer loans; of which only 25% was overdue)
and could lead to further asset-quality deterioration (although
delays are typically short-lived and are a characteristic of the
factoring book). Loan deferrals from the pandemic are only modest
and are nearly all are being repaid.

FIM's reserve coverage of NPAs remained below peers' at 51% at
end-2020 (end-2019: 49%) reflecting the bank's reliance on
collateral but also credit insurance. FIM expects moderate
recoveries of NPAs from the realisation of collateral or insurance
pay-outs in the short term.

FIM's profitability has weakened from increased impairment charges
and lower interest income. FIM's operating profit/risk-weighted
assets (RWAs) turned negative in 2020 from 0.5% in 2019.
Profitability is likely to remain under pressure in the short term
given low margins and as business volumes will take time to
increase. FIM's ability to absorb unexpected credit losses through
the income statement is very weak as pre-impairment operating
profit was near zero in 2020.

Fitch views FIM's capitalisation as only adequate, despite the bank
maintaining high capital ratios, given asset-quality weaknesses,
credit concentrations, weak capital generation and its small equity
size in absolute terms (end-2020 common equity Tier 1 (CET1):
USD223 million). FIM's CET1 ratio improved to 18.5% at end-2020
(end-2019: 16.9%), despite the bank recording a loss, reflecting
reductions in RWAs (down 23% in 2020), in line with its de-risking
strategy. Fitch's assessment of capital also considers FIM's high
share of unreserved NPAs, which amounted to 43% of CET1 at
end-2020. In addition, FIM's capital buffers over regulatory minima
is only modest.

FIM's funding and liquidity profile is a rating strength and is
deemed reasonable as the bank is primarily funded by customer
deposits (70% of non-equity funding at end-2020) and given that it
maintains adequate liquidity. A large part of FIM's deposits is
sourced from other EU countries via third-party internet platforms,
which make them price-sensitive and, potentially, less stable.
However, they have remained broadly stable in recent years
including since the start of the pandemic. Liquidity is supported
by the generally short-term nature of FIM's balance sheet,
reflecting the bank's trade-finance focus. FIM's liquidity coverage
ratio was a strong 241% at end-2020.

SUPPORT RATING AND SUPPORT RATING FLOOR

The '5' Support Rating and 'No Floor' Support Rating Floor reflect
Fitch's view that support from the Maltese authorities cannot be
relied on, given that Malta has adopted resolution legislation that
requires senior creditors to participate in losses. In Fitch's
view, although support from Burgan Bank (A+/Negative/bb) or FIM's
other shareholders, including the ultimate shareholder Kuwait
Projects Company (KIPCO), is possible, it cannot be relied on.

RATING SENSITIVITIES

VR AND IDRS

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

-- FIM's ratings could be downgraded if capital ratios weaken
    materially and approach their respective minimum regulatory
    requirements in the absence of remedial actions. Weaker
    capitalisation could result from a further sustained erosion
    of operating profitability, due for example to weaknesses in
    new business generation or a material increase in NPAs.

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

-- Rating upside is currently limited given the Negative Outlook.
    The Outlook may be revised to Stable if economic conditions in
    FIM's target markets stabilise and deterioration in the bank's
    asset quality and earnings slows through strategic actions,
    easing also pressures on capitalisation. In the long term, a
    rating upgrade would require a strong and sustained
    improvement in asset quality and core profitability that also
    strengthens capitalisation.

SUPPORT RATING AND SUPPORT RATING FLOOR

Upward revision of the SRF and an upgrade of the SR would be
contingent on a positive change in the sovereign's propensity to
support FIM, which is highly unlikely, in Fitch's view.

BEST/WORST CASE RATING SCENARIO

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

ESG CONSIDERATIONS

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




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

DOMI BV 2020-2: Moody's Affirms Caa2 Rating on Class X1 Notes
-------------------------------------------------------------
Moody's Investors Service has affirmed the ratings of 14 notes in 2
Dutch RMBS buy-to-let transactions Domi 2020-1 B.V. and Domi 2020-2
B.V. following the correction of an error.

Issuer: Domi 2020-1 B.V.

EUR281.68M Class A Notes, Affirmed Aaa (sf); previously on Mar 13,
2020 Definitive Rating Assigned Aaa (sf)

EUR15.91M Class B Notes, Affirmed Aa2 (sf); previously on Mar 13,
2020 Definitive Rating Assigned Aa2 (sf)

EUR7.96M Class C Notes, Affirmed A2 (sf); previously on Mar 13,
2020 Definitive Rating Assigned A2 (sf)

EUR4.78M Class D Notes, Affirmed Baa2 (sf); previously on Mar 13,
2020 Definitive Rating Assigned Baa2 (sf)

EUR4.77M Class E Notes, Affirmed Ba1 (sf); previously on Mar 13,
2020 Definitive Rating Assigned Ba1 (sf)

EUR3.18M Class F Notes, Affirmed Caa3 (sf); previously on Mar 13,
2020 Definitive Rating Assigned Caa3 (sf)

EUR14.32M Class X1 Notes, Affirmed Caa2 (sf); previously on Mar
13, 2020 Definitive Rating Assigned Caa2 (sf)

EUR4.78M Class X2 Notes, Affirmed Ca (sf); previously on Mar 13,
2020 Definitive Rating Assigned Ca (sf)

Issuer: Domi 2020-2 B.V.

EUR227.62M Class A Notes, Affirmed Aaa (sf); previously on Oct 23,
2020 Definitive Rating Assigned Aaa (sf)

EUR13.58M Class B Notes, Affirmed Aa2 (sf); previously on Oct 23,
2020 Definitive Rating Assigned Aa2 (sf)

EUR6.47M Class C Notes, Affirmed A1 (sf); previously on Oct 23,
2020 Definitive Rating Assigned A1 (sf)

EUR3.88M Class D Notes, Affirmed Baa2 (sf); previously on Oct 23,
2020 Definitive Rating Assigned Baa2 (sf)

EUR3.88M Class E Notes, Affirmed Ba1 (sf); previously on Oct 23,
2020 Definitive Rating Assigned Ba1 (sf)

EUR11.64M Class X1 Notes, Affirmed Caa2 (sf); previously on Oct
23, 2020 Assigned Caa2 (sf)

The action reflects the correction of an error. In prior rating
actions for these transactions, Moody's mistakenly assumed that the
reserve fund amortises after the first optional redemption date in
line with the outstanding balance of the Class A Notes. However,
the transaction documents provide that after the first optional
redemption date (5 years after transaction closing), the reserve
fund target level is set to zero and the reserve fund is released
into the principal waterfall. This leaves the transactions, and the
Class A Notes in particular, without any source of external
liquidity in case of servicer disruption after the first optional
redemption date.

In both transactions the reserve fund release amounts after the
first optional redemption date are fully available to turbo
amortise the most senior outstanding notes, which is overall
positive for all notes; however, as a consequence the reserve fund
cannot provide liquidity to the structure after the first optional
redemption date in order to mitigate servicer financial disruption
risk.

Moody's has reassessed the ratings of these transactions in light
of this provision. In doing so, Moody's has considered a number of
mitigating factors. First, while Domivest B.V. (NR) with its
current size and set-up acting as master servicer of the
securitised portfolios would not have the capacity to service the
portfolios on its own, the day-to-day servicing of the portfolios
is outsourced to Stater Nederland B.V. ("Stater", NR) as delegate
servicer and HypoCasso B.V. (NR, 100% owned by Stater) as delegate
special servicer. Stater and HypoCasso B.V. are obliged to continue
servicing the portfolio after a master servicer termination event.
Furthermore, the parents of Stater, Infosys Limited (Baa1) and ABN
AMRO Bank N.V. (A1, P-1, Aa3(cr), P-1(cr)), are highly rated.
Second, although the Dutch buy-to-let sector is still a small and
niche market, it has developed over the last two years and there is
a greater number of buy-to-let originators and servicers active
today than in years past. Recent Dutch buy-to-let securitisations
from three different originators are also a sign of a more dynamic
market. Finally, other mitigants include the issuer administrator
acting as a back-up servicer facilitator, who will assist the
issuer in appointing a back-up servicer on a best effort basis upon
termination of the servicing agreement; the availability of a
collection foundation account structure; and principal collections
being available to pay interest on the most senior notes.

Given the above, servicer financial disruption risks are deemed
sufficiently low to maintain the existing ratings without further
mitigants. Moody's has therefore affirmed these ratings.
Nonetheless, liquidity remains important to fully de-link the
ratings from changes in the counterparty risk. In Domi 2020-1 B.V.
and Domi 2020-2 B.V. the high ratings of the senior notes are
highly dependent on the credit strength of Stater and its parents
five years into the transaction after the first optional redemption
date. This linkage is typically not present in other transaction
structures that provide liquidity over the lifetime of the senior
notes.

CURRENT ECONOMIC UNCERTAINTY

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

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
December 2020.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage.

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

Factors that may cause an upgrade of the ratings of the notes
include significantly better than expected performance of the pool
together with an increase in credit enhancement of the rated
notes.

Factors that would lead to a downgrade of the ratings include: (i)
increased counterparty risk leading to: (a) potential operational
risk of servicing or cash management interruptions; and (b) the
risk of increased swap linkage due to a downgrade of the swap
counterparty ratings; and (ii) economic conditions being worse than
forecast resulting in higher arrears and losses.


DTEK ENERGY: Fitch Assigns CCC Rating on USD1.6 Billion Notes
-------------------------------------------------------------
Fitch Ratings has assigned new USD1.6 billion notes issued by DTEK
Finance plc, a subsidiary of DTEK Energy B.V. (DTEK) a 'CCC'/'RR4'
rating. It has also upgraded DTEK's Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDRs) to 'CCC' from 'RD'
(Restricted Default). DTEK is a Netherlands-based company with
operating assets in Ukraine and is the parent guarantor of DTEK
Finance plc's notes.

The upgrade reflects Fitch's assessment of DTEK's
post-restructuring capital structure and business risk following
the recent restructuring of its debt after a default in 2020. The
outcome of the restructuring of one remaining bank loan
(constituting less than 1% of total debt), which is still being
negotiated, does not have any bearing on the rating due to its
limited size and the company's ability to refinance this debt or
transfer it to a related party outside the rated group.

KEY RATING DRIVERS

Notes Restructuring Completed: On May 17, 2021, DTEK completed the
restructuring of its Eurobonds and most of its bank debt, which was
about USD2 billion (including capitalised interest) at end-2020. As
a result, some debt holders received new USD425 million notes of
DTEK OIL & GAS B.V. (B-/Stable, DOG, DTEK's sister company) with
the remainder converted into new USD1.6 billion DTEK notes maturing
in 2027. DTEK has already paid a restructuring charge of about 2%
of the total notes.

New Notes Issued: DTEK issued USD1.6 billion notes via its
subsidiary DTEK Finance plc in exchange for the majority of the
outstanding existing notes and loans, including capitalised
interest. New notes envision 5% interest in 2021 and 7% from 2022
to be paid quarterly. DTEK may opt to partially convert the
interest to PIK in 2021 and from 2022, but from 2022 the effective
interest rate for this period would be increased by 0.5pp. The new
notes envision payment of USD8 million in 2021 and USD20 million
annually from June 2022 with the final maturity on 31 December
2027.

DOG Notes: DTEK's outstanding notes were also partially exchanged
on a pro-rata basis for the USD425 million new notes issued by DOG,
via its wholly owned HoldCo - NGD Holdings B.V., at 6.75% interest
rate, with USD50 million annual amortisation from end-2023 and
maturity at 31 December 2026. By issuing these notes, DOG has
offset its payables with a balance value of about USD500 million
towards DTEK. The spin-off of USD425 million of debt from DTEK's
scope slightly improved credit metrics, although Fitch expects them
to remain elevated.

Post-Restructuring Liquidity to Improve: At end-2020 DTEK
accumulated cash of UAH1.6 billion (USD57 million), a moderate
improvement from UAH1.2 billion at end-1Q20. This reflected the
absence of the majority of interest and debt amortisation payments
in 2020 due to commenced financial restructuring and some
improvement in electricity generation volumes in 4Q20 mainly on the
back of cold weather. Fitchs expect DTEK's liquidity to improve
post-restructuring due to small debt amortisations in 2021-2024,
lower interest rates on new debt and some improvement in
operational performance.

Post-Restructuring IDR: The post-restructuring IDR of 'CCC'
reflects Fitch's assessment of the company's post-restructuring
capital structure, elevated leverage and high business risks. This
envisions improved financial flexibility, exposure to the weak
Ukrainian operating environment, limited liquidity in the
long-term, high foreign-exchange (FX) risks and evolving regulatory
framework.

Pressure to Weigh on 2021 Results: Fitch takes a cautious view on
2021 and expect company's EBITDA to be at about the same level as
2020. This is due to only marginal improvement in electricity
volumes driven by an expected 4.1% growth in Ukrainian GDP and some
recovery in electricity prices. The latter may be affected by
existing price caps and the resumption of cheap imports of
electricity from Belarus and Russia in January-May 2021, although
the latter were limited by the regulator from 26 May to 1 October
2021. Fitch's expectation of higher costs on coal imports in 2021
will also constrain financial performance.

High Foreign-Exchange Risks: DTEK is exposed to FX fluctuations as
almost all of its debt following the restructuring is
foreign-currency-denominated (US dollars), while almost all of its
revenue is denominated in the Ukrainian hryvna. DTEK does not use
any hedging instruments. This may weaken DTEK's credit metrics in
case of hryvna depreciation.

ESG Impact: DTEK has an ESG Relevance Score of '4' for 'Management
Strategy' following the record of non-payment of interest on its
Eurobonds and on its bank loans in 2020-5M21. This has a negative
impact on the credit profile and is relevant to the rating, in
combination with other factors.

DERIVATION SUMMARY

DTEK's peers include Kazakh-based coal-fired generators Limited
Liability Partnership Kazakhstan Utility Systems (B+/Stable), JSC
Samruk-Energy (BB/Positive) and Russia-based PJSC The Second
Generating Company of the Wholesale Power Market (BBB-/Positive),
which all have a significant share of coal in their fuel mix. DTEK
has a more challenging operating environment affecting its business
profile compared with peers, including an evolving regulatory
framework, policy instability and possible macroeconomic shocks in
Ukraine. DTEK also has a weaker financial profile than most of its
peers due to higher leverage and debt exposure to FX. DTEK's
ratings do not incorporate any parental support from ultimate
majority shareholder, System Capital Management.

KEY ASSUMPTIONS

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

-- Electricity generation volumes flat in 2021, growing in low
    single digits in 2022 and then flat until 2024.

-- Electricity prices growing slightly above inflation rate in
    2021-2024.

-- Capex averaging UAH4.6 billion annually in 2021-2024, which is
    below management expectations due to Fitch's conservative
    projections of EBITDA.

-- Zero dividends over the forecast period of 2021-2024.

-- Restructuring as per documents.

-- USD100 million guarantees issued to Sberbank of Russia
    (BBB/Stable) with respect to the loan transferred to Fabcell
    Limited to remain in place in 2021-2024 and is included in
    debt calculations.

-- Deferred consideration for acquisition liabilities (UAH2
    billion at end-2020) were netted against assets of the
    disposal group in 2021 and did not results in cash outflow for
    the company.

KEY RECOVERY RATING ASSUMPTIONS

-- The recovery analysis assumes that DTEK would be a going
    concern in bankruptcy and that the company would be
    reorganised rather than liquidated.

-- A 10% administrative claim.

Going-Concern Approach

-- The going-concern EBITDA estimate reflects Fitch's view of a
    sustainable, post-reorganisation EBITDA level, upon which we
    have based the valuation of the company.

-- The going-concern EBITDA of UAH6.5 billion reflects potential
    price pressure in the recently established new electricity
    market, depressed volumes on the back of the rapid development
    of renewable energy in Ukraine and the weak macroeconomic
    environment.

-- Debt is based on Fitch's estimate of post-restructuring debt.

-- An enterprise value multiple of 3.0x.

-- Eurobonds, bank loans and other debt are ranked pari passu.

Fitch's waterfall analysis generated a Waterfall Generated Recovery
Computation (WGRC) for the notes in the 'RR4' band, indicating a
'CCC' instrument rating. The WGRC output percentage on current
metrics and assumptions was 35%.

RATING SENSITIVITIES

Developments that may, individually or collectively, lead to
positive rating action/upgrade:

-- Liquidity ratio above 1x on a sustained basis with a proven
    record of servicing interest and repaying debt maturities
    coming due or refinancing at market terms.

-- The company's ability to keep funds from operations (FFO)
    leverage below 5x on a sustained basis.

Developments that may, individually or collectively, lead to
negative rating action/downgrade:

-- Deteriorating liquidity due to the inability to secure funding
    and obtain waivers on any potential covenant breach.

-- Deteriorating market position, electricity prices materially
    lower than Fitch's assumptions, significant devaluation of
    hryvna, larger capex or dividend payments leading to FFO
    leverage persistently higher than 6x.

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.

ISSUER PROFILE

DTEK is the largest private power generating company in Ukraine
with total installed capacity of 13.3GW. After spinning off its
distribution assets to a sister company in December 2018, DTEK's
principal activities are coal mining, operating coal-fired
electricity generating plants and mining equipment manufacturing in
Ukraine. Its market share of electricity production fell to 18%-19%
in 2019-2020 from about 25% in 2016, mainly on the back of stagnant
electricity consumption and active development of renewable energy,
which is higher in the merit order.

SUMMARY OF FINANCIAL ADJUSTMENTS

Guarantee under the borrowings of related parties, loans payable to
related parties, other financial liabilities are included in debt.

Impairment of PPE, net impairment losses on financial instruments
net operating FX gain, gain on loss of control, assets received
free of charge, income on sale of PPE, extinguishing of accounts
payables are excluded from EBITDA.

ESG CONSIDERATIONS

DTEK has an ESG Relevance Score of '4' for Management Strategy
following the record of non-payment of interest on its Eurobonds
and on its bank loans in 2020-5M21, which has a negative impact on
the credit profile, and is relevant to the ratings in conjunction
with other factors.

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


NOBIAN HOLDING 2: Fitch Assigns FirstTime 'B+(EXP)' LongTerm IDR
----------------------------------------------------------------
Fitch Ratings has assigned Nobian Holding 2 B.V. an expected
Long-Term Issuer Default Rating (IDR) of 'B+(EXP)' with a Stable
Outlook. Fitch has also assigned Nobian Finance B.V.'s planned term
loan B (TLB) and other senior secured indebtedness an expected
senior secured rating of 'BB-(EXP)'. The Recovery Rating is 'RR3'.

The rating reflects Nobian's high leverage as a result of the
spin-off from Nouryon, its regional leadership position in high
purity salt, caustic soda, chlorine and chloromethanes in Europe as
well as its high profitability, long-term customer relationships
and contractually-protected revenues.

The Stable Outlook reflects Fitch's expectation that funds from
operations (FFO) gross leverage will remain within the rating's
sensitivity from 2022 as caustic soda prices recover and the
company starts benefiting from capacity expansion across its
different segments, cost rationalisation, and pricing initiatives.

The expected IDR is based on the company's new capital structure
following the spin-off. Fitch will assign a final IDR and issuance
rating on receipt of final documentation materially conforming to
the information reviewed.

KEY RATING DRIVERS

Spin-Off from Nouryon: Nobian is the former industrial chemical
division of Nouryon Holding B.V. (B+/Stable), its only division
that is not specialty chemical focused. Nouryon announced its plan
to spin off Nobian in May after renaming the division to Nobian in
January 2021. The spin-off is financed by senior secured term loans
and other senior secured indebtedness and is expected to close in
July 2021. Nobian will remain under Carlyle and GIC ownership; no
dividends are extracted concurrent to the transaction.

European Chlor-Alkali Leader: Nobian's 43% share of the European
merchant salt market for chemical transformation provides pricing
power, especially since the switch to membrane technology in Europe
in 2017, which requires higher purity salt. Nobian is also the
largest and second largest merchant producer, respectively, for
chlorine and caustic soda in Europe and the largest chloromethane
producer. Capacity increases in the coming years will further
reinforce its regional leadership in markets that are already
highly concentrated.

Customer Interdependency: Nobian's 1.2-million-ton (mt) chlorine
and 5.9mt salt capacity mainly supply a few large captive customers
under long-term contracts and take-or-pay clauses. Chlorine is
supplied by pipeline within the same chemical parks, and Nobian is
by far the main supplier of high purity salt in Europe.

Consequently, Fitch sees supplier substitution risk as minimal due
to the lack of cost-effective and reliable alternatives for
Nobian's customers, as evidenced by the absence of churn for more
than five years and Nobian's ability to execute salt price
increases. However, this exposes Nobian to production disruptions
within its clusters, especially in Rotterdam, and its growth
depends on its customers' growth strategy.

Strong Backward Integration: Fitch views Nobian's 100% salt and 50%
energy/steam self-sufficiency, which together account for 70% of
chlor-alkali costs, as a competitive advantage given the higher
margins captured by its model as well as the security of supply
which is critical for key customers. Unlike its competitors, Nobian
has no vertical integration into polyvinyl chloride (PVC), but uses
about 20% of its chlorine for its captive chloromethanes products,
which ultimately results in lower exposure to the construction
sector than typical downstream-integrated chlor-alkali
manufacturers.

Barriers to Entry: Chlor-alkali products are commodities subject to
potentially severe price fluctuations. Average caustic prices on
the European market have however structurally improved since the
market capacity rationalisation of 2017, and Fitch expects them to
increase by 5% per year until 2023 from the 2020 average, as
industrial and automotive demand gradually recover.

Fitch views Nobian's market position in high-purity salt for
chemical transformation as difficult to threaten or replicate given
the need to first find access salt deposits in the same region,
cheap steam, and waste management requirements. Moreover, Nobian's
supply of chlorine by pipeline to large off-takers presents a very
limited risk of substitution to another supplier.

High Leverage, Deleveraging Path: Fitch forecasts Nobian's FFO
gross leverage at 7.0x at the end of 2021 and total debt to EBITDA
at 5.5x, reflecting low caustic soda prices and the spin-off
transaction. Nobian will deleverage to 4.5x by 2024 based on
Fitch's expectation of cumulative cash flow from operations of
EUR895 million from 2021 until 2024 compared to cumulative capex of
EUR650 million. Fitch conservatively assumes dividend payment of at
least EUR30 million per year in 2023-2024 as it does not jeopardise
deleveraging and still results in cash build-up of about EUR120
million by 2024.

Capex Supports Higher Margins: Fitch believes that Nobian's
projects, that have short paybacks, as well as cost rationalisation
and improved caustic soda prices, will drive EBITDA margin towards
36% in 2024 from 29% in 2021. Nobian is expanding capacity in salt,
chlor-alkali and chloromethanes to fulfil demand from its key
customers. Additional projects, such as the high-margin secondary
use of its salt caverns for energy storage and start-stop of its
de-mothballed 350-megawatt hour gas turbine, will provide
incremental EBITDA from 2021. As about 30% of capex are
growth-related, Nobian has capacity to scale down or delay outflows
should cash flow pressure materialise.

DERIVATION SUMMARY

Nobian is significantly smaller, less diversified and more
leveraged than Ineos Quattro Holdings Limited (BB/Stable). Its
regional focus and vertical integration are comparable to Synthos
Spolka Akcyjna (BB/Stable) but its FFO gross leverage is expected
to be much higher on average. Root Bidco Sarl (Rovensa; B/Stable)
has similar margin stability but is smaller and has higher FFO
gross leverage than Nobian. Petkim Petrokimya Holdings A.S.
(B/Stable) has similar size, regional focus and lower leverage, but
operates from a single site and has more volatile earnings due to
its exposure to cyclical commodities.

Compared to Nouryon, from which it is being separated, Nobian is
smaller, with exposure to more commoditised chemicals and lacks
Nouryon's global presence. However, Nobian's EBITDA margin is
stronger and expected to increase faster than Nouryon's. Nobian is
more backward-integrated than its peers and has stronger EBITDA and
FFO margins.

KEY ASSUMPTIONS

-- Revenues to grow 4.4% per year driven by higher chlorine, salt
    and chloromethanes volumes and prices;

-- Average EBITDA margins in mid-20s for chlor-alkali from 2021
    until 2024, growing from mid-30s in 2020 to mid-40s in 2024
    for salt and chloromethanes;

-- Total cumulative capex of EUR650 million from 2021 until 2024,
    peaking in 2023;

-- Dividends of EUR35 million in 2023, EUR31 million in 2024.

Key Recovery Analysis Assumptions

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

The GC EBITDA estimate reflects Fitch's view of a sustainable,
post-reorganisation EBITDA level upon which Fitch bases the
enterprise valuation. The GC EBITDA assumption for commodity
sensitive issuer at a cyclical peak reflects the industry's move
from trough of cycle to mid-cycle conditions and intensifying
competitive dynamics.

The GC EBITDA of EUR250 million reflects a conjunction of low
caustic soda prices coupled with demand or production-related
pressure on sales volumes, as seen in the 2020-2021 period, but
also considers corrective measures taken in the reorganisation to
offset adverse conditions.

Fitch uses a multiple of 5.5x to estimate a GC enterprise value for
Nobian because of its leadership position, solid sector growth
trends, higher barriers to entry and profit margins than peers.

Fitch assumes the RCF to be fully drawn and to rank pari passu with
the TLB and other senior secured indebtedness.

After deduction of 10% for administrative claims, Fitch's waterfall
analysis generated a Waterfall Generated Recovery Computation
(WGRC) for the senior secured instruments in the 'RR3' band,
indicating a 'BB-(EXP)' instrument rating. The WGRC output
percentage on current metrics and assumptions was 67%.

RATING SENSITIVITIES

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

-- FFO gross leverage below 4.0x on a sustained basis;

-- EBITDA margin sustained above 25%, and FCF margins above 5%
    through achieved cost savings;

-- Track record of conservative financial policy.

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

-- FFO gross leverage above 6.0x on a sustained basis;

-- FFO interest cover below 2.0x on a sustained basis;

-- Weakening of EBITDA and FCF margins.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Adequate liquidity: Upon completion of the separation and its
financing expected in July 2021, Nobian's liquidity will amount to
EUR270 million, composed of EUR70 million cash on the balance sheet
and EUR200 million undrawn RCF maturing in 4.5 years. No meaningful
mandatory debt repayment is expected in the coming years as the
transaction will be backed by TLB and other senior secured
indebtedness due in five years. Proceeds from the sale of the salt
specialties segment of EUR70 million, expected to be received
before the end of 2021, will be fully used to reduce the TLB.

Fitch assesses Nobian's liquidity as adequate given Fitch's
expectations of positive free cash flow over the coming four years
despite meaningful expansion capex peaking in 2023 and 2024, and
relatively modest working capital fluctuations of the business.

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.

ISSUER PROFILE

Nobian is a fully vertically integrated European leader in the
production of salt, chlor-alkali (chlorine and its co-product
caustic soda) and chloromethanes. Nobian is being spun-off from
Nouryon.




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

KIROV REGION: Fitch Alters Outlook on 'BB-' LT IDRs to Stable
-------------------------------------------------------------
Fitch Ratings has revised Russian Kirov Region's Outlook to Stable
from Negative, while affirming the region's Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDRs) at 'BB-'.

The revision of the Outlook reflects better-than-expected fiscal
results in 2020, as the region demonstrated its ability to
withstand the economic fallout from the coronavirus pandemic. This
has led Fitch to revise its rating case with improved
debt-sustainability metrics.

Kirov is a Russian region classified by Fitch as a type B local and
regional government (LRG), as it covers debt service from cash flow
on an annual basis. Kirov is located in the north of European
Russia and has a population of 1.3 million residents. The region's
economy is dominated by processing industries and is moderate in
size with wealth metrics below the national median.

According to budgetary regulation, Kirov can borrow on the domestic
market. Its budget accounts are presented on a cash basis while the
region's budget laws are approved for a three-year period.

KEY RATING DRIVERS

Risk Profile: 'Weaker'

Fitch's assessment reflects a combination of three 'Midrange' and
three 'Weaker' key risk factors. The assessment reflects Fitch's
view of high risk relative to international peers that the region
may see its ability to cover debt service by its operating balance
weaken unexpectedly over the forecast horizon of 2021-2025, either
because of lower-than-expected revenue or expenditure exceeding
expectations, or because of an unanticipated rise in liabilities or
debt-service requirements.

Revenue Robustness: 'Weaker'

Revenue robustness is constrained by the region's moderate tax base
with limited growth prospects. Kirov's socio-economic profile has
historically been weaker that the average Russian region and its
gross regional product (GRP) per capita in 2019 was at 65% of the
national median. The region's revenue sources are composed of taxes
(45.6% of total revenue in 2020), most of which are income-based
taxes and exposed to economic fluctuations.

Another important revenue source is transfers from the federal
budget (BBB/Stable), which contributed 40% of total revenue in
2016-2019 and increased to 52% in 2020 due to extended
pandemic-related support measures. Inter-governmental transfers are
almost equally split between formula-based general-purpose
equalisation grants and other transfers, with the latter subject to
discretionary changes.

Revenue Adjustability: 'Weaker'

As with other Russian LRGs, Fitch assesses Kirov's ability to
generate additional revenue in response to possible economic
downturns as limited. The federal government holds significant
tax-setting authority, which limits Russian LRGs' fiscal autonomy
and revenue adjustability.

Russian regional governments have limited rate-setting power only
over three regional taxes - corporate property tax, transport tax
and gambling tax - and some fees. Such revenue represented a low
approximate 10% of Kirov's total revenue in 2020. Leeway to
increase those taxes is limited as regional tax rates are
constrained by ceilings embedded in national tax regulation.

Expenditure Sustainability: 'Midrange'

Kirov has improved its control of expenditure, as spending
increased at a slower pace than revenue growth during 2017-2020 and
Fitch expects this policy to be maintained in the medium term. Like
other Russian regions, Kirov has responsibilities in education,
healthcare, some social benefits, public transportation and road
construction. Fitch estimates non-cyclical expenditure made up
about 42% of the region's spending in 2020, which supports
expenditure sustainability.

In line with other Russian regions, Kirov is not required to adopt
anti-cyclical measures, which would inflate expenditure related to
social benefits in a downturn. At the same time, the region's
budgetary policy is dependent on the decisions of the federal
authorities, which could negatively affect expenditure dynamics.

Expenditure Adjustability: 'Weaker'

As with most Russian regions, Fitch assesses Kirov's expenditure
adjustability as low. The majority of spending responsibilities are
mandatory for Russian sub-nationals, which results in inflexible
items dominating their expenditure structure. Fitch estimates
Kirov's inflexible spending represented more than 65% of total
spending in 2020. This means most expenditure could be difficult to
cut in response to shrinking revenue.

The region also has limited flexibility to cut or postpone capex in
case of stress as Kirov already reduced capex to a low 10% of total
spending in 2016-2020 while its capex per capita continues to lag
international peers'.

Liabilities & Liquidity Robustness: 'Midrange'

Russian LRGs are subject to a national budgetary framework with
strict rules on regional debt management, including restrictions on
debt stock and new borrowings as well as limits on annual interest
payments. The use of derivatives is prohibited for LRGs and
floating rates are rare in Russia. Limitations on external debt are
very strict and in practice no Russian region borrows externally.

Kirov's debt structure is dominated by long-term low-cost loans
from the federal budget, which accounted for 74% of total debt at
end-2020; the remainder is solely one-to-two-year bank loans. The
region's life of debt is stretched until 2034, of which about 45%
matures in 2021-2022, exposing the region to refinancing risk. The
region is not exposed to contingent risks and its off-balance sheet
liabilities are low.

Liabilities & Liquidity Flexibility: 'Midrange'

Russian regions' liquidity flexibility is supported by liquidity
from the federal treasury to cover intra-year cash gaps. Kirov
follows conservative liquidity management by maintaining adequate
cash balances (2020: RUB2.3 billion) and has undrawn debt
programmes (end-2020: RUB5 billion). Counterparty risk of liquidity
providers is assessed at the 'BBB' category, which results in
Fitch's 'Midrange' assessment of this risk factor.

Debt Sustainability: 'a category'

Fitch has revised up debt sustainability to 'a' from 'bbb' to
reflect Fitch's view that the region's debt payback ratio (net
adjusted debt/operating balance) - the primary metric for debt
sustainability for type B LRGs - will remain below 12x under
Fitch's updated rating case, versus above 13x under Fitch's
previous expectations. The fiscal debt burden (net adjusted
debt/operating revenue) will remain strong at under 50%, while
actual debt service coverage ratio (ADSCR: operating balance/debt
service, including short-term debt maturities) will be weak under
1x during 2021-2025.

Despite the economic downturn in 2020, Kirov's debt metrics did not
deteriorate and financial performance was better than projected in
Fitch's previous rating case. Taxes saw only a marginal decline of
0.4% while revenue was supported by 41.4% higher transfers from the
federal government. This allowed Kirov to record a balanced budget
and maintain stable debt levels. The debt payback was 6.5x in 2020,
in line with its average of 6.8x in 2017-2019 and the fiscal debt
burden remained low at 34% (2019: 41%).

DERIVATION SUMMARY

Kirov's Standalone Credit Profile (SCP) is assessed at 'b+', which
reflects a combination of a 'Weaker' risk profile and a 'a' debt
sustainability assessment under Fitch's ratings case. The SCP is
supported by low leverage versus international peers', with the
fiscal debt burden remaining below 50% under Fitch's rating case.

Fitch maintains a single-notch upward adjustment to reflect support
from the federal government, particularly in the form of
inter-governmental lending. Budget loans dominates the region's
debt structure and the state has undertaken a number of loan
restructuring to ease the region's debt-servicing pressure. Fitch
now factors this in as budget loan support rather than as ad-hoc
support following the federal government's decision to extend
lending in 2020 and to extend the bulk of budget loans' maturity to
2029 from 2024.

Fitch factors this support beyond the SCP, which results in an
enhanced debt payback (adjusted debt net of inter-governmental
loans/operating balance) of below 9x under Fitch's rating case
versus up to 12x without the adjustment. This underpins the
single-notch uplift of the IDR to 'BB-'.

Fitch expects Kirov to demonstrate a sustainable performance that
is commensurate with the current ratings, leading to the revision
of the Outlook to Stable.

KEY ASSUMPTIONS

Qualitative assessments and quantitative assumptions and their
respective change since the last review on 11 December 2020 and
weight in the rating decision:

Risk Profile: 'Weaker, Unchanged with Low weight'

Revenue Robustness: 'Weaker, Unchanged with Low weight'

Revenue Adjustability: 'Weaker, Unchanged with Low weight'

Expenditure Sustainability: 'Midrange, Unchanged with Low weight'

Expenditure Adjustability: 'Weaker, Unchanged with Low weight'

Liabilities and Liquidity Robustness: 'Midrange, Unchanged with Low
weight'

Liabilities and Liquidity Flexibility: 'Midrange, Unchanged with
Low weight'

Debt sustainability: 'a, Raised with High weight'

Support (Budget Loans): '1, Raised with Low weight'

Support (Ad Hoc): 'N/A, Lowered with Low weight'

Asymmetric Risk: 'N/A, Unchanged with Low weight'

Sovereign Cap: 'N/A, Unchanged with Low weight'

Sovereign Floor: 'N/A, Unchanged with Low weight'

QUANTITATIVE ASSUMPTIONS - ISSUER SPECIFIC

Fitch's rating case is a "through-the-cycle" scenario, which
incorporates a combination of revenue, cost and financial risk
stresses. It is based on 2016-2020 figures and 2021-2025 projected
ratios. The key assumptions for the scenario include:

-- Average 2.4% yoy increase in operating revenue in 2021-2025.
    Improved with High weight;

-- Average 2.8% yoy increase in operating spending in 2021-2025
    Improved with Medium weight;

-- Negative capital balance on average at RUB3.6 billion in 2021
    2025. Deteriorated with Low weight;

-- New debt at 7% cost and three-year average maturity. Unchanged
    with Low weight.

QUANTITATIVE ASSUMPTIONS - SOVEREIGN RELATED

Figures as per Fitch's sovereign estimate for 2020 and forecast for
2022, respectively (no weights and changes since last review are
included as none of these assumptions were material to the rating
action):

GDP per capita (US dollar, market exchange rate): 10,001; 11,729

Real GDP growth (%): -3.1; 2.7

Consumer prices (annual average % change): 3.4; 4.1

General government balance (% of GDP): -3.8; -1

General government debt (% of GDP): 19.3; 21.3

Current account balance plus net FDI (% of GDP): 1.9; 2.6

Net external debt (% of GDP): -46.1; -41.5

IMF Development Classification: EM

CDS Market Implied Rating: n/a

RATING SENSITIVITIES

FACTOR THAT COULD, INDIVIDUALLY OR COLLECTIVELY, LEAD TO NEGATIVE
RATING ACTION/DOWNGRADE:

-- Deterioration in debt payback to beyond 13x across most of
    Fitch's rating case or a dilution of support from the federal
    government could lead to a downgrade.

FACTOR THAT COULD, INDIVIDUALLY OR COLLECTIVELY, LEAD TO POSITIVE
RATING ACTION/UPGRADE:

-- Sustainable debt payback below nine years under Fitch's rating
    case and expectation of continued support by the federal
    government could lead to an upgrade.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance
and Infrastructure 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 three 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.

DISCUSSION NOTE

Committee date: 8 June 2021

There was an appropriate quorum at the committee and the members
confirmed that they were free from recusal. It was agreed that the
data was sufficiently robust relative to its materiality. During
the committee no material issues were raised that were not in the
original committee package. The main rating factors under the
relevant criteria were discussed by the committee members. The
rating decision as discussed in this rating action commentary
reflects the committee discussion.

ESG CONSIDERATIONS

Unless otherwise stated in this section, the high level of ESG
Relevance Score is '3'. This means ESG issues are credit-neutral or
have only a minimal credit impact on the entity(ies), either due to
their nature or the way in which they are being managed by the
entity(ies).


LIPETSK REGION: Fitch Alters Outlook on 'BB+' IDRs to Positive
--------------------------------------------------------------
Fitch Ratings has revised Lipetsk Region's Outlook to Positive from
Stable while affirming the region's Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDRs) at 'BB+'.

The revision of Outlook reflects the region's better-than-expected
performance in 2020 against the economic fallout from the
coronavirus pandemic. This led Fitch to revise its rating case with
improved debt sustainability, including a likely debt payback of
under 5x over the forecast period of 2021-2025.

Lipetsk, located in the European part of Russia, is home to 1.1
million residents and PJSC Novolipetsk Steel (NLMK, BBB/Stable),
its single largest taxpayer and one of the major Russian integrated
steelmakers. The local economy is therefore strongly influenced by
ferrous metallurgy, while the region's wealth metrics (as measured
by GRP per capita) in 2019 were 12% above the national median.
Under national budgetary regulation, the region can borrow on the
domestic market, and its budget accounts are presented on a cash
basis.

KEY RATING DRIVERS

Risk Profile: 'Weaker'

Lipetsk's 'Weaker' risk profile reflects a combination of three
'Weaker' and three 'Midrange' assessments of key risk factors. The
assessment reflects Fitch's view of a high risk relative to
international peers that the region may see its ability to cover
debt service with its operating balance weaken unexpectedly over
2021-2025 either because of lower-than-expected revenue or
expenditure exceeding expectations, or because of an unanticipated
rise in liabilities or debt-service requirements.

Revenue Robustness: 'Weaker'

A concentrated tax base exposes Lipetsk to the volatility of its
ferrous metallurgy sector. Fiscal capacity is strong as taxes
historically averaged 75% of total revenue in 2016-2020. Two major
taxes, ie corporate income tax (CIT) and personal income tax (PIT),
collectively contributed 47% of 2020 total revenue, with the former
being more volatile. CIT fell to 26% of total revenue in 2020, from
an average 35% in 2015-2019, due to the pandemic.

Transfers from the federal budget increased to 32% of total revenue
in 2020, from an average of 21% in 2015-2019 (below most national
peers'), as the federal government extended additional crisis aid
to Russian regions. Fitch views this additional support as one-off,
while significant concentration on the volatile ferrous metallurgy
sector constrains Fitch's assessment of revenue robustness, which
remains unchanged.

Revenue Adjustability: 'Weaker'

The 'Weaker' assessment reflects the significant tax-setting
authority of the federal government, which limits Russian local and
regional governments' (LRGs) fiscal autonomy and overall revenue
adjustability. Lipetsk's rate-setting power is limited to few
revenue items, including property taxes and some fees, which
accounted for about 9% of the region's total revenue in 2020. In
addition, the region's ability to determine rates on property taxes
is also constrained by ceilings embedded within national tax
regulation.

Expenditure Sustainability: 'Midrange'

The region's control over expenditure is prudent, as evident in
spending growth tracking that of revenue in 2016-2020. Similar to
other Russian regions, Lipetsk's spending responsibilities include
education, healthcare, some social benefits, public transportation
and road construction, which are largely non-cyclical or moderately
cyclical. The region is not required to adopt anti-cyclical
measures, which could inflate expenditure on social benefits in a
prolonged downturn. Nonetheless, in 2020 the region's spending on
healthcare increased markedly, by 1.5x, albeit mostly funded by
earmarked federal grants. Fitch treats such spending as exceptional
and maintains its assessment for expenditure sustainability factor
at 'Midrange'.

Expenditure Adjustability: 'Weaker'

Most spending responsibilities are mandatory for Russian regions,
which limits the ability to significantly cut expenditure in
response to shrinking revenue. Lipetsk has a limited capacity to
cut or postpone capex (averaged 19% of total spending in 2016-2020)
in case of stress, given its material investment needs and lower
investment per capita compared with international peers'.

Liabilities & Liquidity Robustness: 'Midrange'

In line with the national regulation Russian LRGs are subject to
restrictions on debt stock and new borrowing as well as limits on
annual interest payments. To that end the use of derivative debt
instruments is prohibited for LRGs, while floating interest rates
are rarely used in Russia. Like most of its domestic peers Lipetsk
cannot borrow externally and follows a conservative debt-management
policy.

The region's fiscal debt burden (net adjusted debt-to-operating
revenue) stabilised at a low 14% in 2019-2020, while net adjusted
debt increased immaterially to RUB8.7 billion in 2020 from RUB8.1
billion in 2019, leaving Lipetsk with substantial headroom for debt
increase.

The region's 2020 debt stock was largely split between domestic
bonds (47%) and federal budget loans (46%), followed by bank loans
(7%). About 31% of direct debt comes due in 2022-2023, which
exposes the region to medium-term refinancing risk and weakens its
actual debt service coverage ratio (ADSCR: operating
balance-to-debt service, including short-term maturities) during
this period. This is, however, mitigated by the region's sound cash
reserves and sufficient access to capital markets. Contingent
liabilities, stemming from a single guarantee and debt of
public-sector companies, are low.

Liabilities & Liquidity Flexibility: 'Midrange'

National budget regulation supports regions' liquidity by providing
treasury facilities to cover intra-year cash gaps. Lipetsk's
liquidity management is conservative and aimed at maintaining
sufficient cash balances (2020: RUB4.7 billion), while overall
access to domestic banks is reasonable. Counterparty risk
associated with liquidity providers is assessed at 'BBB' category,
which limits Fitch's assessment of liabilities and liquidity
flexibility at 'Midrange'.

Debt Sustainability: 'aa category'

Under the Rating Criteria for International LRGs, Fitch classifies
Lipetsk, as with other Russian regions, as a type B LRG, because it
covers debt service from its cash flow on an annual basis. This
reflects a sound debt payback ratio (net adjusted debt/operating
balance) - the primary metric of debt sustainability for type B
LRGs) - which under Fitch's updated rating case will remain below
5x, in line with a 'aaa' assessment. It also reflects a strong
fiscal debt burden (net adjusted debt/operating revenue), which
will not exceed 50%, corresponding to a 'aaa' assessment. All this
is counterbalanced by a weak ADSCR that remains below 1x in Fitch's
rating case, corresponding to a 'b' category assessment, to result
in an overall debt sustainability assessment of 'aa'.

DERIVATION SUMMARY

Lipetsk 's Standalone Credit Profile (SCP) is assessed at 'bb+',
which reflects a combination of the region's 'Weaker' risk profile
and 'aa' debt sustainability. The SCP also reflects comparison with
international peers.

KEY ASSUMPTIONS

Qualitative and quantitative assumptions and their respective
change since the last review on 11 December 2020 and weight in the
rating decision:

Risk Profile: 'Weaker, Unchanged with Low weight'

Revenue Robustness: 'Weaker, Unchanged with Low weight'

Revenue Adjustability: 'Weaker, Unchanged with Low weight'

Expenditure Sustainability: 'Midrange, Unchanged with Low weight'

Expenditure Adjustability: 'Weaker, Unchanged with Low weight'

Liabilities and Liquidity Robustness: 'Midrange, Unchanged with Low
weight'

Liabilities and Liquidity Flexibility: 'Midrange, Unchanged with
Low weight'

Debt sustainability: 'aa, Improved with High weight'

Support (Budget Loans): 'N/A'

Support (Ad Hoc): 'N/A'

Asymmetric Risk: 'N/A'

Sovereign Cap: 'N/A'

Sovereign Floor: 'N/A'

QUANTITATIVE ASSUMPTIONS - ISSUER SPECIFIC

Fitch's rating case is a "through-the-cycle" scenario, which
incorporates a combination of revenue, cost and financial risk
stresses. It is based on 2016-2020 figures and 2021-2025 projected
ratios. The key assumptions for the scenario include:

-- Average 1.8% yoy increase in operating revenue in 2021-2025,
    including a 4.8% yoy increase in taxes. Improved with High
    weight;

-- Average 2.1% yoy increase in operating spending in 2021-2025.
    Improved with Medium weight;

-- Negative capital balance on average at RUB10.6 billion in
    2021-2025. Weaker with Low weight;

-- New debt at 7% cost and 3.5-year average maturity. Unchanged
    with Low weight.

QUANTITATIVE ASSUMPTIONS - SOVEREIGN RELATED

Figures as per Fitch's sovereign estimate for 2020 and forecast for
2022, respectively (no weights and changes since the last review
are included as none of these assumptions were material to the
rating action):

-- GDP per capita (US dollar, market exchange rate): 10,001;
    11,729;

-- Real GDP growth (%): -3.1; 2.7- Consumer prices (annual
    average % change): 3.4; 4.1;

-- General government balance (% of GDP): -3.8; -1;

-- General government debt (% of GDP): 19.3; 21.3;

-- Current account balance plus net FDI (% of GDP): 1.9; 2.6;

-- Net external debt (% of GDP): -46.1; -41.5;

-- IMF Development Classification: EM;

-- CDS Market Implied Rating: n/a.

RATING SENSITIVITIES

FACTOR THAT COULD, INDIVIDUALLY OR COLLECTIVELY, LEAD TO NEGATIVE
RATING ACTION/DOWNGRADE:

-- Lipetsk could be downgraded if its debt payback exceeds 7.5x
    on a sustained basis in Fitch's rating case accompanied with a
    weak ADSCR below 1x.

FACTOR THAT COULD, INDIVIDUALLY OR COLLECTIVELY, LEAD TO POSITIVE
RATING ACTION/UPGRADE:

-- A positive rating action may result from a debt payback ratio
    below 5x on a sustained basis in Fitch's rating case or a
    positive reassessment of risk profile to 'Low Midrange'.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance
and Infrastructure 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 three 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.


LLC DELOPORTS: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed LLC DeloPorts' Long-Term Issuer Default
Rating (IDR) and RUB3 billion unsecured bond rating at 'B+'. The
Outlook is Stable.

RATING RATIONALE

Fitch aligns DeloPorts' rating with Fitch's assessment of the
consolidated credit profile of its parent company, LLC Management
Company Delo (MC Delo). MC Delo has full ownership and operational
control of DeloPorts, governs its financial and dividend policy and
can freely move cash from DeloPorts to MC Delo level.

The Stable Outlook reflects Fitch's expectations of continued
deleveraging for MC Delo's consolidated profile, which will bring
leverage even more comfortably within the current sensitivities.

Fitch has revised DeloPorts' Standalone Credit Profile (SCP) up to
'BB' from 'BB-' following the recent strong operational performance
and associated deleveraging. The SCP reflects the business profile
of a secondary port of call exposed to cargo concentration and
competition. The business risk profile is balanced by still
moderate leverage compared with peers. The SCP aligns well with
peers and criteria.

KEY RATING DRIVERS

Linkages with Parent Company: Equalised With MC Delo's Consolidated
Credit Profile

Deloports's rating is derived from Fitch's assessment of the
consolidated credit profile of MC Delo. The rating perimeter Fitch
looks at includes the debt and assets of Delo Group consolidated at
MC Delo, mainly LLC DeloPorts and PJSC TransContainer (TC).

Under the stronger subsidiary-weaker parent path of Fitch's Parent
and Subsidiary Linkage Rating Criteria, Fitch sees Deloport - a
fully-owned subsidiary of MC Delo - is strategically important to
the parent and is operationally integral to the group's core
business.

Fitch believes that MC Delo can move cash around the consolidated
perimeter, if needed and this results in the equalisation of
Deloports's rating with MC Delo's consolidated credit profile.

Concentrated Exposure to Commodity Cargo: Volume Risk - Weaker

DeloPorts is a secondary port of call with business segment
concentration. The container segment remains mostly import-oriented
but with a growing export component and throughput is diversified.
The grain segment is fully export-oriented.

Grain volumes may be affected by weather conditions and exports
could be subject to Russian policy decisions. Grain export
destinations are diversified. A large portion of grain
transhipments are handled by US agribusiness company Cargill, a
minority shareholder in the grain terminal. DeloPorts operates in a
dynamic and competitive environment in both the container and grain
segments. There are similar competing container and grain terminals
in the port of Novorossiysk. DeloPorts also competes with other
deepwater grain ports in the Black Sea, and indirectly with other
container terminals in the Baltic Sea region and the Far East

Competition Dampens Price Flexibility: Price Risk - Midrange

DeloPorts' contracts are short-term. Some contracts have limited
take-or-pay or minimum volume guarantees. Tariffs are unregulated
and charged in US dollars for containers and roubles for grain.
Competition dampens price flexibility.

Expansion Lifting Capacity Constrains: Infrastructure Development
and Renewal - Midrange

DeloPorts' facilities have been operating close to estimated
capacity and the company has been undertaking a major expansion
programme. The commissioning of the NUTEP container terminal
expansion increased capacity to 700,000 20-foot equivalent units
(TEUs) and enabled it to receive larger vessels. The project
improved the port's competitive advantage. Investments in KSK, the
grain terminal, aim to increase its throughput to 7.0 million
tonnes and modernise the associated infrastructure. The investments
include additional silos for grain storage and construction of an
additional berth. After completion of the current investment cycle,
the company will command modern facilities for handling both types
of cargo.

DeloPorts has been funding the NUTEP capex through additional
external debt and the KSK capex through a combination of internally
generated funds and external debt. Fitch does not expect
significant maintenance capex over the medium term.

Exposed to Refinancing Risk: Debt Structure - Midrange

Debt at DeloPorts is unsecured and fixed rate compared with
partially floating rate bank debt at the operating companies'
level. The company's debt is non-amortising with maturity
concentration, while the operating companies' debt is mainly
amortising and secured on operating assets. Container tariffs
linked to US dollars partially lower the group's foreign-exchange
risk. The rated bonds are effectively uncovenanted but DeloPorts'
other bonds are subject to financial covenants. There are no
liquidity reserve provisions.

TC's business profile is supported by the company's strong 41%
share of total rail container transportation in Russia in 2020,
healthy long-term growth prospects of the container market in
Russia and diversification in cargo and customers. TC's volumes
grew by 17% in 2020, which is in line with the market, on the back
of lower competition from trucks and marine transportation and
management's efforts to improve service quality.

Fitch views MC Delo's commitment to maintain TC's net debt/EBITDA
below 3.0x as insufficient to ring-fence TC, given MC Delo's high
dependence on TC's cash flows (over 60% of group EBITDA in 2020) to
meet debt service requirements.

ESG Governance: LLC DeloPorts has an ESG Relevance Score of '4' for
Governance Structure due to the lack of effective ring-fencing of
DeloPorts towards MC Delo, which drives Fitch's consolidated
approach and has a negative impact on DeloPorts' credit profile,
and is relevant to the ratings in conjunction with other factors.

PEER GROUP

Russian port operator Global Ports Investments Plc (GPI;
BB+/Stable) is DeloPorts' closest peer. GPI is materially larger
than DeloPorts, has a dominant position in the Russian sea
container market and more transparent corporate governance, as it
is listed on the LSE. The more robust business risk profile despite
higher leverage (five-year average leverage of 3.5x) supports the
higher rating compared with DeloPorts' SCP.

RATING SENSITIVITIES

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

-- Projected five-year average Fitch adjusted net debt/EBITDAR of
    the consolidated MC Delo credit profile below 3.8x in the
    rating case.

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

-- Projected five-year average Fitch adjusted net debt/EBITDAR of
    the consolidated MC Delo credit profile exceeding 4.8x in the
    Fitch rating case.

-- A failure to manage refinancing risk.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance
and Infrastructure 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 three 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.

TRANSACTION SUMMARY

DeloPorts is a Russian holding company that owns and operates
several stevedoring assets of Delo Group in the Russian port of
Novorossiysk. Its two main subsidiaries are the fully-owned
container terminal NUTEP and the grain terminal KSK (in which
DeloPorts holds 75% - 1 share).

CREDIT UPDATE

Robust Operational Performance

Container volumes in 2020 were up 30% to 487,000 TEUs despite the
volumes handled at all Russian ports recording a marginal decline.
The modernisation of NUTEP container terminal and opening of
deep-water container berth in 2019 materially improved port's
competitive advantage compered to peers enabling it to receive
vessels with capacity of up to 10,000 TEUs.

NUTEP is currently the largest container terminal in the port of
Novorossiysk. Containerisation of the Russian market is low but the
market is volatile.

Grain volumes increased by 43% in 2020 to 5.1 million tonnes,
primarily due to high harvests in Russia and favourable conditions
in the grain market. The increased supply resulted in higher grain
shipments. Deloports continues to expand its KSK terminal handling
the grain exports. The construction of a deep-water grain berth,
which will allow the company to accommodate two vessels
simultaneously, has been completed and commissioning is expected in
summer 2021.

Nevertheless, Fitch remains cautious about material volume growth
as Russian grain exports can be volatile due to currency movements,
weather conditions affecting harvests and introduction of levies or
quotas or other administrative export barriers (e.g. sanctions).

Financial Performance above Expectations

DeloPorts' overall financial performance in 2020 was above Fitch's
expectations. The high container traffic and improved grain export
volumes positively affected the financial results. DeloPorts'
consolidated reported 2020 EBITDA increased by 40% to USD146
million from USD104 million in 2019

FINANCIAL ANALYSIS

Fitch Cases

Key assumptions within DeloPorts' rating case are:

-- Container volumes to growth on average by 5% over the next
    three years;

-- Average revenues per TEU at around USD195 for the next three
    years;

-- Grain volumes to moderately grow towards 5.5 million tonnes in
    2024 but remaining flat in 2021;

-- Growth capex over USD100 million in the next three years;

-- Dividend payments of 100% of net income to support debt
    service at MC Delo;

Key assumptions for TC within Fitch's rating case for MC Delo's
consolidated profile are:

-- Container transportation volumes growth at mid-to-high single
    digits in 2021-2025;

-- Container transportation rates to grow at below-inflation
    rates in 2021-2025;

-- Dividend payments at 50% of net income over 2021-2025; and

-- Average capex of around RUB17 billion annually over 2021-2024.

Financial Profile

Under the Fitch rating case, Fitch expects projected five-year
average Fitch-adjusted net debt/EBITDAR for DeloPorts' SCP to reach
2.7x. The leverage remains relatively flat in the forecast horizon
to 2025.

For consolidated MC Delo, the Fitch rating cases expect projected
five-year average Fitch-adjusted net debt/EBITDAR to reach 4.2x.
Leverage peaks at 4.9x in 2021 under the rating case as the MC Delo
Group is still adjusting to the new financial profile following the
acquisition of TC and further capex to capture market
opportunities. However, Fitch believes that the group has embarked
on a deleveraging path.

ESG CONSIDERATIONS

LLC DeloPorts has an ESG Relevance Score of '4' for Governance
Structure due to the lack of effective ring-fencing of DeloPorts
towards MC Delo, which drives Fitch's consolidated approach and has
a negative impact on DeloPorts' 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.


NIZHNIY NOVGOROD: Fitch Affirms 'BB' LT IDRs, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Russian Nizhniy Novgorod Region's
Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs)
at 'BB' with a Stable Outlook.

The affirmation reflects Fitch's expectations that the region's
credit quality will remain commensurate with its Standalone Credit
Profile (SCP) of 'bb' over the rating horizon, recovering from a
deterioration in 2020 caused by the coronavirus pandemic. Nizhniy
Novgorod was among the Russian regions most severely hit by the
pandemic measured by the number of cases per population. This put
significant pressure on the region's expenditure and caused
deterioration of the debt sustainability metrics. Fitch assumes a
fairly swift recovery of the region's financials and debt
sustainability metrics under its 2021-2025 rating case scenario.

Nizhniy Novgorod is located in the central part of European Russia,
and is one of the largest industrial centres. Like other Russian
local and regional governments (LRG) Fitch classifies Nizhniy
Novgorod as a 'Type B' LRG, as it covers debt service from cash
flow on an annual basis.

KEY RATING DRIVERS

Risk Profile: 'Low Midrange'

The region's 'Low Midrange' risk profile is based on Fitch's
assessment of four key risk factors at 'Midrange' and two others at
'Weaker'. The assessment reflects Fitch's view of a moderately high
risk relative to international peers that the issuer's ability to
cover debt service with the operating balance may weaken
unexpectedly over the forecast horizon (2021-2025) either because
of lower-than-expected revenue or expenditure above expectations,
or because of an unanticipated rise in liabilities or debt-service
requirements.

Revenue Robustness: 'Midrange'

The region's revenue robustness is supported by its economy, which
is well-diversified across sectors and companies, and generates a
sound tax base. Taxes dominate the region's revenue, averaging 81%
of the total in 2016-2019 and declining to 67% in 2020 due to an
economic slowdown caused by the pandemic. Corporate income tax,
which is one of the most important revenue sources for the region
but also one of the most volatile, decreased by 5.3% in 2020. This
was compensated by additional transfers from the federal
government, which accounted for 32% of the total revenue in 2020
versus an average 17% in 2016-2019. The ability and willingness to
provide support to the region by the federal government ('BBB'
counterparty) supports the 'Midrange' assessment of Nizhniy
Novgorod's revenue robustness.

Revenue Adjustability: 'Weaker'

Similar to other Russian regional governments, Nizhniy Novgorod's
ability to generate additional revenue in response to possible
economic downturns is limited. The federal government holds
significant tax-setting authority, which limits the region's fiscal
autonomy and revenue adjustability. Nizhniy Novgorod has
rate-setting power over three regional taxes: the corporate
property tax, gambling tax and transport tax. The proportion of
these taxes in the region's tax revenues remains low, at below 11%
in 2020. In addition, the maximum rates on those taxes are
determined in the National Tax Code, which further constrains the
region's capacity to adjust revenue.

Expenditure Sustainability: 'Midrange'

Fitch expects that the region will continue to demonstrate spending
restraint through the rating horizon after a one-off spike in
expenditure due to the pandemic in 2020, which resulted in a budget
deficit of close to 6% of total revenue (2016-2019: surplus
budget). Similar to other Russian regions, Nizhniy Novgorod's main
spending responsibilities are in non-cyclical sectors such as
education, healthcare and utilities, which accounted for almost
half of the region's total expenditure in 2020. At the same time,
the region's budgetary policy is dependent on federal government
decisions, and the latter could negatively affect the expenditure
dynamic in the medium term.

Expenditure Adjustability: 'Weaker'

Russian sub-nationals have a rigid spending structure, which is due
to the mandatory nature of responsibilities. This means it would be
difficult to cut expenditure in response to revenue shrinking.
There is some possibility of postponing capex, but this is
constrained by a moderate proportion of capex, averaging 12% of
total spending in 2016-2020, and high infrastructure needs.

Liabilities & Liquidity Robustness: 'Midrange'

The assessment is supported by a national budgetary framework,
which sets strict rules on regional debt management. Russian LRGs
are subject to debt stock limits and new borrowing restrictions as
well as limits on annual interest payments. The use of derivatives
is prohibited for LRGs and floating rates are rare in Russia.
Limitations on external debt are very strict and in practice no
Russian region borrows externally.

Nizhniy Novgorod follows a prudent debt policy, evidenced by its
moderate debt burden, which has been declining during the last five
years. The fiscal debt burden (net adjusted debt-to-operating
balance) was down to 39% in 2020 from 59% in 2016. As of 1 June
2021, the region's debt structure was dominated by domestic bonds
(58% of the direct debt), while the residual part was represented
by federal budget loans with subsidised interest rates.

Liabilities & Liquidity Flexibility: 'Midrange'

The national framework provides emergency liquidity support from
federal government in the form of a treasury line to cover
intra-year cash gaps. Nizhniy Novgorod follows conservative
liquidity management and maintains adequate liquidity in the form
of cash reserves (end-2020: RUB10.3 billion) and committed credit
lines with local banks of more than RUB30 billion. These cover the
region's medium-term refinancing needs. Counterparty risk of
liquidity providers is assessed at the 'BBB' category, which
results in Fitch's 'Midrange' assessment of this risk factor.

Debt Sustainability: 'a category'

Fitch expects that under its rating case scenario, which envisages
some stress on both revenue and expenditure, the payback - primary
metric of debt sustainability assessment - will remain in the range
of 5x-9x corresponding to 'aa' assessment. The payback measured as
net adjusted debt-to-operating balance deteriorated beyond this
range in 2020, but Fitch assumes that this was a one-off deviation
caused by the extreme circumstances of the coronavirus pandemic.
According to Fitch's rating case, the payback will be restored to
9x in 2021 and then further improve toward 7x by 2025, the final
year of the rating case.

For the secondary metrics, Fitch's rating case projects that the
fiscal debt burden will be slightly above 50% by 2025 (2020: 39%),
corresponding to a 'aa' assessment. This is counterbalanced by a
weak actual debt service coverage ratio (ADSCR: operating
balance-to-debt service, including short-term debt maturities),
which Fitch expects to remain at below 1x, corresponding to a 'b'
assessment. The combination of the assessment for primary and
secondary metrics leads to an overall debt sustainability
assessment of 'a'.

DERIVATION SUMMARY

Nizhniy Novgorod's 'bb' SCP reflects a 'Low Midrange' risk profile
and a 'a' debt sustainability under Fitch's rating case. The SCP
also reflects peer comparison. As the region is not subject to
extraordinary support and has no asymmetric risk, the IDRs are in
line with the SCP at 'BB'.

KEY ASSUMPTIONS

Qualitative assumptions and assessments:

Risk Profile: 'Low Midrange'

Revenue Robustness: 'Midrange'

Revenue Adjustability: 'Weaker'

Expenditure Sustainability: 'Midrange'

Expenditure Adjustability: 'Weaker'

Liabilities and Liquidity Robustness: 'Midrange'

Liabilities and Liquidity Flexibility: 'Midrange'

Debt sustainability: 'a'

Support (Budget Loans): 'N/A'

Support (Ad Hoc): 'N/A'

Asymmetric Risk: 'N/A'

Sovereign Cap: 'N/A'

Sovereign Floor: 'N/A'

QUANTITATIVE ASSUMPTIONS - ISSUER SPECIFIC

Fitch's rating case is a "through-the-cycle" scenario, which
incorporates a combination of revenue, cost and financial risk
stresses. It is based on 2016-2020 figures and 2021-2025 projected
ratios. The key assumptions for the scenario include:

-- Average 3.3% yoy increase in operating revenue in 2021-2025;

-- Average 1.9% yoy increase in operating spending in 2021-2025;

-- Negative net capital balance on average at RUB16.9 billion in
    2021-2025;

-- 7% cost of debt and 3.5-year weighted average maturity for new
    debt.

RATING SENSITIVITIES

FACTORS THAT COULD, INDIVIDUALLY OR COLLECTIVELY, LEAD TO NEGATIVE
RATING ACTION/DOWNGRADE:

-- Deterioration of the region's debt payback to above 9x on a
    sustained basis coupled with a weak ADSCR below 1x under
    Fitch's rating case.

FACTORS THAT COULD, INDIVIDUALLY OR COLLECTIVELY, LEAD TO POSITIVE
RATING ACTION/UPGRADE:

-- An improvement of debt payback toward 5x or improvement of the
    ADSCR to above 1x under Fitch's rating case could lead to
    positive rating action.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance
and Infrastructure 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 three notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

ESG CONSIDERATIONS

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


ORENBURG REGION: Fitch Affirms 'BB+' LT IDRs, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Russia's Orenburg Region's Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB+'
with Stable Outlook.

The affirmation reflects Fitch's expectations that the region's
resilience to economic shocks will be supported by sufficiently
sound debt-sustainability metrics under Fitch's updated rating
case.

Orenburg is a Russian region classified by Fitch as a type B local
and regional government (LRG), as it covers debt service from cash
flow on an annual basis. Orenburg is located in the southeast of
European Russia, bordering Kazakhstan (BBB/Stable) to the south and
is part of the Volga (Privolzhskiy) Federal District. Orenburg's
economic profile is supported by the extraction of oil and gas, and
its GRP per capita has historically exceeded the national median.
The region's budget accounts are presented on a cash basis while
budget laws are approved for a three-year period.

KEY RATING DRIVERS

Risk Profile: 'Low Midrange'

Orenburg's 'Low Midrange' risk profile reflects four 'Midrange' key
risk factors (revenue robustness, expenditure sustainability,
liabilities and liquidity robustness and flexibility) and two
'Weaker' key risk factors (revenue adjustability and expenditure
adjustability). The assessment reflects a moderate risk that the
region may see its ability to cover debt service by its operating
balance weaken unexpectedly over the forecast horizon (2021-2025)
either because of lower-than-expected revenue or expenditure
exceeding expectations, or because of an unanticipated rise in
liabilities or debt-service requirements.

Revenue Robustness: 'Midrange'

The region's revenue robustness is supported by a sound economic
profile, which has kept GRP per capita sustainably above the
national median. Hence, the region's fiscal capacity is supported
primarily by taxes, which accounted for over 70% of total revenue
in 2016-2020.

In line with the majority of Russian regions', Orenburg's tax base
is dominated by personal and corporate income taxes (CIT), which
are exposed to economic cyclicality. CIT averaged 34% of total
revenue in 2015-2019, followed by federal transfers (22% on
average). As the local economy was negatively affected by the
global coronavirus pandemic, 2020 CIT proceeds contracted to 20% of
total revenue, while the share of transfers increased to 41%.

Revenue Adjustability: 'Weaker'

As with other Russian regions, Fitch assesses Orenburg's ability to
generate additional revenue in response to prolonged economic
downturns as limited. The federal government holds significant
tax-setting authority, thus limiting Russian LRGs' fiscal autonomy.
Orenburg has limited rate-setting power over three regional taxes
(corporate property, transport and gambling) and some fees. These
revenue items comprised only 11% of Orenburg's 2020 total revenue.

Expenditure Sustainability: 'Midrange'

The region's control over expenditure is prudent, as evident in the
narrow gap between cumulative spending growth and revenue growth
during 2016-2020. In line with domestic peers, Orenburg is vested
with responsibilities in education, healthcare, some social
benefits, public transportation, and road construction. Education
and healthcare, which are of counter-cyclical nature, accounted for
41% of 2020 expenditure. Orenburg is not required to adopt
anti-cyclical measures, which would inflate expenditure related to
social benefits in an economic downturn.

The budgetary policy of Russian LRGs is dependent on the decisions
of the federal government, which could negatively affect
expenditure dynamics.

Expenditure Adjustability: 'Weaker'

Most spending responsibilities are mandatory for Russian LRGs,
which leads to the dominance of inflexible expenditure items and
leaves little scope for cutbacks in response to shrinking revenue.
In case of stress, Orenburg has some flexibility to cut or postpone
capex, which averaged 15% of total spending in 2016-2020. However,
this ability to curb is constrained by material investment needs
and lower investment per capita compared with international
peers'.

Liabilities & Liquidity Robustness: 'Midrange'

In line with the national regulation Russian LRGs are subject to
restrictions on debt stock and new borrowings as well as limits on
annual interest payments. To that end the use of derivative debt
instruments is prohibited for LRGs, while floating interest rates
are rarely used in Russia. Like most of its domestic peers Orenburg
cannot borrow externally and follows a conservative debt-management
policy. Its fiscal debt burden (net adjusted debt/operating
revenue) stabilised at 17% in 2019-2020, while net adjusted debt
increased immaterially to RUB16.6 billion at end-2020 from RUB15.2
billion at end-2019. The region's 2020 debt stock was composed of
57% federal budget loans and 43% domestic bonds. Contingent
liabilities, stemming from debt of public-sector companies, are low
and self-funded.

Liabilities & Liquidity Flexibility: 'Midrange'

The region's liquidity is supported by federal treasury loans
covering intra-year cash gaps and by stable cash balances (2020:
RUB4.7 billion). Fitch assesses Orenburg's access to domestic
capital market as reasonable, allowing the region to borrow in case
of need, as evident in its record of domestic bond issues.
Counterparty risk associated with domestic liquidity providers
rated at 'BBB' constrains Fitch's assessment to 'Midrange'.

Debt Sustainability: 'a category'

The assessment is derived from a sound debt payback (the primary
metric for debt sustainability assessment), which under the updated
Fitch rating case, will remain in line with a 'aa' assessment, and
a strong fiscal debt burden approaching 25% in the final year of
the rating case. This is, however, counterbalanced by a weak actual
debt service coverage ratio (ADSCR) deteriorating to below 1x, to
result in an overall 'a' debt sustainability assessment.

In 2020 the region's revenue was supported by additional transfers
from the federal government, which led to satisfactory financial
performance, despite a decline in tax revenue in 2020. The region's
debt payback remained sound at 3.5x in 2020. Under Fitch's updated
rating case, which envisages some stress to both revenue and
expenditure, the debt payback ratio is projected to average 5x
during 2020-2025.

DERIVATION SUMMARY

Orenburg's SCP is assessed at 'bb+', reflecting a 'Low Midrange'
risk profile and an 'a' debt sustainability assessment under
Fitch's rating case. The SCP is supported by the region's moderate
leverage compared with international peers', with a fiscal debt
burden approaching 25% in 2021-2025 under Fitch's updated rating
case. The IDRs are not affected by any asymmetric risk or
extraordinary support from the federal government, which results in
the region's 'BB+' IDRs being in line with the SCP.

KEY ASSUMPTIONS

Qualitative Assumptions

Risk Profile: 'Low Midrange'

Revenue Robustness: 'Midrange'

Revenue Adjustability: 'Weaker'

Expenditure Sustainability: 'Midrange'

Expenditure Adjustability: 'Weaker'

Liabilities and Liquidity Robustness: 'Midrange'

Liabilities and Liquidity Flexibility: 'Midrange'

Debt sustainability: 'a'

Support (Budget Loans): 'N/A'

Support (Ad Hoc): 'N/A'

Asymmetric Risk: 'N/A'

Sovereign Cap: 'N/A'

Sovereign Floor: 'N/A'

QUANTITATIVE ASSUMPTIONS - ISSUER SPECIFIC

Fitch's rating case scenario is a "through-the-cycle" scenario,
which incorporates a combination of revenue, cost and financial
risk stresses. It is based on 2016-2020 figures and 2021-2025
projected ratios. The key assumptions for the scenario include:

-- Average 2.9% yoy increase in operating revenue in 2021-2025,
    including a 7% increase in tax revenue;

-- Average 3.3% yoy increase in operating spending in 2021-2025;

-- Negative net capital balance on average at RUB6.1 billion in
    2021-2025; and

-- New debt at 7.1% cost and 3.5-year weighted average maturity.

RATING SENSITIVITIES

FACTOR THAT COULD, INDIVIDUALLY OR COLLECTIVELY, LEAD TO NEGATIVE
RATING ACTION/DOWNGRADE:

-- Deterioration of the region's debt payback towards 9x on a
    sustained basis, coupled with a weak ADSCR at below 1.0x under
    Fitch's rating case, could lead to a downgrade.

FACTOR THAT COULD, INDIVIDUALLY OR COLLECTIVELY, LEAD TO POSITIVE
RATING ACTION/UPGRADE:

-- Sustained debt payback at below 5x or ADSCR improvement toward
    1.5x under Fitch's rating case could lead to an upgrade.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance
and Infrastructure 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 three 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

Orenburg's direct debt decreased to RUB21.4 billion at end-2020
from RUB22.1 billion at end-2019. Its direct debt structure
comprised federal budget loans (57%), followed by domestic bonds
(43%). The region's cash reserves stood at RUB4.7 billion at
end-2020.

ESG CONSIDERATIONS

Orenburg has an ESG Relevance Score of '4' for Biodiversity and
Natural Resource Management due to due to the concentration of
taxpayers in natural resource exploration and processing, which
exposes its revenue to commodity-price volatility. 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.


SAMARA OBLAST: Moody's Hikes Issuer Rating to Ba1, Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service has upgraded the long-term issuer and
senior unsecured ratings of Samara, Oblast of (Samara) to Ba1 from
Ba2 and the long-term issuer rating of Krasnoyarsk, Krai of
(Krasnoyarsk) to Ba2 from Ba3. The outlook on the issuer ratings of
Samara has been changed to stable from positive. The outlook on
Krasnoyarsk's issuer rating remains stable.

The rating upgrade of Samara reflects Moody's expectations that its
good budgetary management will enable it to maintain its strong
budgetary metrics and low debt burden. Concurrently the upgrade of
Krasnoyarsk reflects Moody's assessment that the lower appetite to
debt will continue and the region will maintain good budgetary
performance supported by tax revenues growth.

RATINGS RATIONALE

RATIONALE FOR RATINGS UPGRADE

SAMARA, OBLAST OF

The rating upgrade reflects Moody's expectations that the region
will continue to pursue its effective and prudent budgetary policy.
As a result, its debt burden will continue its gradual decline over
the next few years, while operating performance will remain solid,
supported by economic recovery.

Despite pressure on tax revenues from negative economic trends,
Samara achieved a balanced budget in 2020, thanks to ad hoc federal
government transfers and tight grip on operating and capital
spending.

Taxes dropped by 3%, offset by ad hoc federal transfers to
compensate for revenue shortfall and additional expenses to address
higher spending related to coronavirus pandemics. On the
expenditure side Samara was able to contain cost growth by
employing cuts to non-primary expenses, such as spending on mass
events, exhibitions and delaying some capital projects. The
effective anti-crisis budget measures enabled the administration to
preserve its operating performance at sound level, with gross
operating balance to operating revenues ratio at 8% in 2020.
Moody's expects that the current economic recovery translating into
stronger revenues will bring Samara's gross operating balance to
operating revenue ratio to historically high levels (above 11-12%)
in 2021 and thereafter.

As a result, the region's net direct and indirect debt declined to
26% of operating revenues in 2020 from 30% in 2019, and is expected
to further trend down below 20% in 2022, which is low by
international standards. The region has also improved its debt
structure, increasing the share of longer-term debt instruments in
total direct debt reducing further already low refinancing risks.

Samara's Baseline Credit Assessment was upgraded to ba1 from ba2.
The final issuer rating of Ba1 incorporates a low likelihood of
support from the Government of Russia (Baa3 stable).

KRASNOYARSK, KRAI OF

The rating upgrade reflects Moody's expectations that Krasnoyarsk's
operating performance will improve, supported by careful budgetary
management and recovery of its strong economy. Furthermore Moody's
expects the region to reduce its net direct and indirect debt to
operating revenue ratio to 22-24% in 2021 from 29% in 2020 and
maintain it at this modest level in 2022.

Despite pressure on revenues from lower proceeds from its key
taxpayers the region maintained a balanced performance thanks to
higher ad-hoc transfers from the federal government (which
increased by 62% in 2020) and tighter control on spending. In 2020,
tax revenues declined by 8% while the region experienced an upward
pressure from coronavirus related expenses. Nevertheless,
Krasnoyarsk's operating performance remained sound, with gross
operating balance to operating revenue ratio at 8% in 2020 that
will be further strengthened above 11% in 2021 and 2022. Positive
budgetary results will enable the region to keep the debt burden
constrained.

The refinancing risks are low due to favourable debt profile:
annual debt repayments do not exceed 5% of operating revenues and
are fully covered by the liquidity cushion.

Krasnoyarsk's Baseline Credit Assessment was upgraded to ba2 from
ba3. The final issuer rating of Ba2 incorporates a low likelihood
of support from the Government of Russia.

RATIONALE FOR STABLE OUTLOOKS

The stable rating outlooks reflect Moody's view that the two
regions will continue their conservative budgetary management
resulting in strong operating performances and modest debt burdens
while refinancing risks will remain low in the next 12-18 months.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

For Samara and Krasnoyarsk most part of environmental problems are
not significant for their credit profiles. Majority of the
expenditure for pollution and environmental safety are covered by
the Federal Government or the companies causing negative
externalities. Although environmental problems including air, water
and land pollution are discussed and accounted in the policy of the
regional authorities, environmental expenditures comprise less than
5% of the budget expenditure. Negative effects on Krasnoyarsk's tax
revenues from weaker financial results of its key taxpayer (MMC
Norilsk Nickel, PJSC (Baa2 negative)) which will suffer from fines
it has to pay for its pollution case will likely be compensated by
the central government.

For Krasnoyarsk and Samara social risks exist but are not
significant. Income inequality, migration and urbanisation, and
aging demographic trends are present in Russia. Samara is less
divergent from average salary and demographic trends. The strong
economy of Krasnoyarsk ensures salaries which are above country
average and positive migration.

For the two regions, governance factors are material for the
ratings. Prudent management policies and debt reduction policy
allowed for a decrease in credit risks in recent years.
Conservative budget planning and long-term expenditure plans allow
these governments to consolidate their budgets and reduce debt.

The specific economic indicators, as required by UK regulation, are
not available for these entities. The following national economic
indicators are relevant to the sovereign rating, which was used as
an input to this credit rating action.

Sovereign Issuer: Russia, Government of

GDP per capita (PPP basis, US$): 27,903 (2020 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): -3% (2020 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 4.9% (2020 Actual)

Gen. Gov. Financial Balance/GDP: -4.1% (2020 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: 2.3% (2020 Actual) (also known as
External Balance)

External debt/GDP: 31.5% (2020 Actual)

Economic resiliency: ba1

Default history: At least one default event (on bonds and/or loans)
has been recorded since 1983.

SUMMARY OF MINUTES FROM RATING COMMITTEE

On June 8, 2021, a rating committee was called to discuss the
ratings of Krasnoyarsk, Krai of and Samara, Oblast of. The main
points raised during the discussion were: The issuers' governance
and/or management, have materially increased. The issuers' fiscal
or financial strength, including its debt profile, has materially
increased.

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

The stable outlooks on Krasnoyarsk's and Samara's ratings indicate
that a change in the ratings is unlikely in the near term. Over
time, positive pressure could emerge from a more rapid and
pronounced debt reduction than Moody's currently expects,
accompanied by stronger budgetary performances than in the rating
agency's baseline.

At the same time, markedly weaker fiscal and debt metrics for these
sub-sovereigns than Moody's currently expects, could put downward
pressure on their ratings or point to negative outlooks.

An upgrade or a downgrade of the sovereign rating could also exert
upward or downward credit pressure on any of the two regional
governments' ratings.

LIST OF AFFECTED RATINGS

Issuer: Krasnoyarsk, Krai of

Upgrades:

LT Issuer Rating, Upgraded to Ba2 from Ba3

Outlook Actions:

Outlook, Remains Stable

Issuer: Samara, Oblast of

Upgrades:

LT Issuer Rating, Upgraded to Ba1 from Ba2

Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1 from Ba2

Outlook Actions:

Outlook, Changed To Stable From Positive

The principal methodology used in these ratings was Regional and
Local Governments published in January 2018.


YAROSLAVL REGION: Fitch Affirms 'BB' LT IDRs, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed the Russian Yaroslavl Region's Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB'.
The Outlook is Stable.

The affirmation reflects the region's ability to withstand the
negative economic impact triggered by the coronavirus pandemic,
which was supported by central government additional transfers and
resulted in better-than-expected fiscal results in 2020.

Yaroslavl is a medium-sized region in the centre of European Russia
with a population of 1.25 million residents. Under budgetary
regulations, Yaroslavl can borrow on the domestic market. Its
budget accounts are presented on a cash basis, while the region's
budget laws are approved for a three-year period.

KEY RATING DRIVERS

Risk Profile: 'Low Midrange'

Yaroslavl's 'Low Midrange' risk profile reflects four 'Midrange'
key risk factors and two 'Weaker' key risk factors. The assessment
reflects a moderately high risk relative to international peers
that the region's ability to cover debt service with the operating
balance may weaken unexpectedly over the forecast horizon
(2021-2025) either because of lower-than-expected revenue or
expenditure above expectations, or because of an unanticipated rise
in liabilities or debt-service requirements.

Revenue Robustness: 'Midrange'

Yaroslavl's Revenue Robustness is supported by the region's
diversified economy, with wealth indicators above the median for
Russian regions, driven by a wide range of processing industries.
The region's GRP per capita was about USD6,400 or 108% of the
Russian region median in 2019. The region's revenue sources are
composed of taxes (69.5% of total revenue in 2020), dominated by
relatively stable personal income tax (33% of tax revenue),
followed by corporate income tax (28%). The assessment is
constrained by the overall slow national economic environment. This
leads to limited prospects for long-term growth of the region's tax
base.

Another important revenue source is transfers from the federal
budget, which contributed 29% of total revenue in 2020 up from 17%
in 2019. This helped mitigate the negative economic effects caused
by the coronavirus pandemic.

Revenue Adjustability: 'Weaker'

Fitch assesses Yaroslavl's ability to generate additional revenue
in response to possible economic downturns as limited. The federal
government in Russia holds significant tax-setting authority, which
limits regional governments' fiscal autonomy and revenue
adjustability. Regional governments have rate-setting power only
over three regional taxes: corporate property tax, transport tax
and gambling tax, albeit with limits set in the national tax code.
These taxes represented about 8% of Yaroslavl's total revenue in
2020.

Expenditure Sustainability: 'Midrange'

Yaroslavl's administration exercises prudent control over
expenditure, as spending growth has closely followed that of
revenue over the last years, including 2020. Like other national
peers, Yaroslavl has responsibilities for education, healthcare,
certain social benefits, public transportation and road
construction. Education, healthcare and some smaller sectors, which
are non-cyclical in nature, account for about half of total
expenditure.

In line with other Russian regions, Yaroslavl is not required to
adopt anti-cyclical measures, which would inflate expenditure on
social benefits in a downturn. At the same time, Russian regions'
budgets are subject to the discretion of the federal authorities,
which could lead to acceleration of expenditure.

Expenditure Adjustability: 'Weaker'

Like most Russian regions, Fitch assesses Yaroslval's expenditure
adjustability as low. The majority of spending responsibilities are
mandatory for Russian subnationals. This leaves Yaroslavl little
flexibility in response to potential revenue shortfalls.
Yaroslavl's ability to cut capex is also limited, particularly by
the low proportion of capex, which averaged about 8% of total
expenditure over the past five years. Additionally, the region's
ability to cut expenditure is constrained by the low level of per
capita expenditure compared with international peers.

Liabilities & Liquidity Robustness: 'Midrange'

The assessment is supported by a national budgetary framework with
strict rules on regional debt management. Russian local and
regional governments (LRG) are subject to debt stock limits and new
borrowing restrictions as well as limits on annual interest
payments. The use of derivatives is prohibited for LRGs and
floating rates are rare in Russia. Limitations on external debt are
very strict and in practice no Russian region borrows externally.

Yaroslavl's debt policy is aimed at maintaining manageable debt at
affordable costs of debt servicing. Its fiscal debt burden (net
adjusted debt-to-operating revenue) was 51% in 2020, which is
moderate from an international perspective. In 2020, the region's
net adjusted debt increased by 5% to cover the RUB1.8 billion
deficit and reached RUB39.2 billion.

The region's debt maturities extend to 2034, while 80% of the debt
stock is scheduled to mature in 2021-2026. This leads to a fairly
short weighted average life of debt at around 3.5 years, which
together with a weak operating balance, creates pressure on the
actual debt service coverage ratio (ADSCR). As of end-2020, the
debt stock was split between domestic bonds (57%)
inter-governmental loans (40%), and bank loans (3%). The region's
contingent's liabilities are low and well-controlled.

Liabilities & Liquidity Flexibility: 'Midrange'

The region's liquidity is supported by federal treasury loans
covering intra-year cash gaps. Fitch assesses Yaroslavl's access to
domestic capital market as reasonable, allowing the region to
borrow in case of need, as evidenced by its record of domestic bond
issues. The region follows conservative liquidity management and
has a RUB 5 billion undrawn debt programme (end-2020:).
Nonetheless, as the counterparty risk associated with domestic
liquidity providers is rated 'BBB' or below, Fitch assesses this
risk factor as 'Midrange'.

Debt Sustainability: 'a category'

Under the Rating Criteria for International LRG, Fitch classifies
Yaroslavl, like other Russian LRGs, as a Type B LRG, which are
required to cover debt service from cash flow on an annual basis.
The assessment of debt sustainability is driven by a primary metric
- payback ratio (net adjusted debt/operating balance), which under
Fitch's rating case, would remain below 13x over most of Fitch's
five-year scenario.

Despite the economic downturn in 2020, Yaroslavl's debt metrics did
not see significant deterioration and were better than Fitch
expected. The region's revenue was supported by additional
transfers from the federal government, which resulted in better
financial performance than projected in Fitch's previous rating
case. The payback ratio was 7.5x in 2020, slightly better its
historical average level at 8.5x in 2018-2019 and the fiscal debt
burden (net adjusted debt to operating revenue) remained moderate
at 51% (2019: 57%). The moderate fiscal debt burden is
counterbalanced by the region's weak ADSCR, which remains below 1x
over the forecast period under Fitch's rating case.

DERIVATION SUMMARY

Yaroslavl's Standalone Credit Profile (SCP) is assessed at 'bb-',
which reflects a combination of a 'Low Midrange' risk profile and a
'a' debt sustainability assessment under Fitch's ratings case. The
notch-specific SCP reflect a weak ADSCR, and comparison with
national peers. Fitch applies a single-notch upward adjustment to
reflect support from the federal government, particularly in the
form of intergovernmental loans. Fitch views these loans as junior
to commercial debt and, hence, providing additional flexibility to
the issuer.

Fitch assesses that the enhanced payback ratio that considers only
debt owed to non-governmental lenders will remain close to 9x under
the Fitch rating case versus 13x for the standard payback ratio.
This reflects that the actual exposure to default on the ordinary
financial debt is lower and resulted in the higher IDR of 'BB'.

KEY ASSUMPTIONS

Qualitative assumptions:

Risk Profile: 'Low Midrange'

Revenue Robustness: 'Midrange'

Revenue Adjustability: 'Weaker'

Expenditure Sustainability: 'Midrange'

Expenditure Adjustability: 'Weaker'

Liabilities and Liquidity Robustness: 'Midrange'

Liabilities and Liquidity Flexibility: 'Midrange'

Debt sustainability: 'a'

Support (Budget Loans): '1'

Support (Ad Hoc): 'N/A'

Asymmetric Risk: 'N/A'

Sovereign Cap: 'N/A'

Sovereign Floor: 'N/A'

QUANTITATIVE ASSUMPTIONS - ISSUER SPECIFIC

Fitch's rating case is a "through-the-cycle" scenario, which
incorporates a combination of revenue, cost and financial risk
stresses. It is based on 2016-2020 figures and 2021-2025 projected
ratios. The key assumptions for the scenario include:

-- 3.5% yoy increase in operating revenue on average in 2021
    2025;

-- 4.0% yoy increase in operating spending on average in 2021
    2025;

-- Negative capital balance of RUB4.4 billion on average in 2021
    2025;

-- 7% cost of debt and 3.5-year average maturity for new debt.

RATING SENSITIVITIES

FACTOR THAT COULD, INDIVIDUALLY OR COLLECTIVELY, LEAD TO NEGATIVE
RATING ACTION/DOWNGRADE:

-- Deterioration of the region's fiscal debt payback to beyond
    13x during most of the forecast period under Fitch's rating
    case or a dilution of support from the federal government
    could lead to a downgrade.

FACTOR THAT COULD, INDIVIDUALLY OR COLLECTIVELY, LEAD TO POSITIVE
RATING ACTION/UPGRADE:

-- Sustainable improvement in debt payback towards nine years
    according to Fitch's rating case and maintenance of
    expectation of support by central government could lead to an
    upgrade.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance
and Infrastructure 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 three notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

ESG CONSIDERATIONS

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




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

ARAP TURK: Fitch Affirms 'B+' LongTerm IDRs, Outlook Negative
-------------------------------------------------------------
Fitch Ratings has affirmed Arap Turk Bankasi A.S.'s (ATB) Long-Term
Local- and Foreign-Currency Issuer Default Ratings (IDRs) at 'B+'
with a Negative Outlook.

KEY RATING DRIVERS

IDRS, VIABILITY RATING (VR) AND NATIONAL RATING

The IDRs and National Rating are driven by the standalone strength
of ATB, as measured by its Viability Rating (VR). The ratings
reflect the volatile operating environments in the bank's core
countries - Turkey and Libya - and risks from high credit
concentrations on- and off-balance sheet. The ratings also reflect
ATB's reliance on parent funding from its majority shareholder,
Libyan Foreign Bank (LFB), and affiliated entities, although it has
been broadly reliable despite some fluctuations.

Rating strengths are its niche trade-finance franchise in Turkey,
with a specialist focus on Middle East and North Africa (MENA)
region, which results in resilient earnings in a volatile operating
environment and adequate capitalisation

The Negative Outlook reflects the potential for the weak Turkish
operating environment to place greater pressure on the bank's
overall credit risk profile that may ultimately erode ATB's record
of sound financial performance.

Profitability compares favourably with trade finance bank peers',
despite tough operating conditions in the bank's core markets.
ATB's profitability has been supported by low funding costs, given
a high share of group funding, and generally low impairment
charges. The bank relies on net interest income and reports
above-sector-average net interest margins. Accordingly, its
operating profit/risk weighted assets (RWAs) improved to 3.6% in
1Q21 from 2.9% at end-2020.

Given ATB is exposed to loans in Turkey, its credit risk profile is
also sensitive to downside risks from the operating environment.
The recent replacement of the Central Bank of the Republic of
Turkey (CBRT) governor and ensuing damage to Turkey's
monetary-policy credibility have driven renewed market volatility
and lira depreciation, endangering Turkey's economic recovery.
Uncertainty also remains due to the pandemic and the latest
resurgence of infections.

Credit risks are mitigated to some extent by many of ATB's
borrowers being large Turkish corporates with diversified
operations, while exposures - mainly comprising trade-finance and
working-capital loans - are also largely short-term. Libya-related
transactions (mainly letters of guarantees and export letters of
credit), although from a higher-risk country, have performed well
to date and a high proportion is mitigated by counter-guarantees
from large Turkish banks and corporates.

Asset-quality metrics compare well with Turkish commercial banks'
and foreign trade-finance bank peers'. Impaired loans represented a
low 0.7% of total cash loans at end-1Q21. Impaired loans were 169%
covered by total reserves at end-1Q21. The bank reports no Stage 2
loans. However, risks to asset quality are heightened by its
material share of foreign-currency loans (1Q21: 73% of gross loans)
and high borrower and geographic concentration in volatile
economies. Fitch expects ATB's underlying asset quality to
deteriorate, due to weakness in the lira and operating-environment
volatility.

ATB's common equity Tier 1 (CET1) ratio of 18.4% at end-1Q21
(excluding the impact of regulatory forbearance) compares well with
other small Turkish banks' and reasonably with trade-finance
peers'. This, combined with the bank's resilient earnings profile
in a volatile operating environment, provides some headroom for
asset-quality pressures.

However, capital is small in absolute terms, especially given the
bank's high credit concentrations. Capital-adequacy ratios are also
highly sensitive to an increase in foreign-currency RWAs stemming
from lira depreciation, given the large proportion of
foreign-currency assets on ATB's balance sheet (80% at end-1Q21,
mainly in euros and US dollars).

Funding from shareholder LFB Group, including deposits and funds
borrowed, (end-1Q21: 34% of total funding) provide ATB with a
fairly low-cost funding source in foreign currency. This provides
it with a competitive advantage over other small Turkish banks and
supports its net interest margin. Other funding sources include
market borrowings and customer deposits.

The affirmation of ATB's 'A(tur)' National Long-Term Rating
reflects Fitch's view of the bank's unchanged credit profile
relative to that of other financial institutions in Turkey.

SUPPORT RATING AND SUPPORT RATING FLOOR

The '5' Support Rating and 'No Floor' Support Rating Floor reflect
Fitch's view that support from the Turkish authorities cannot be
relied upon, given ATB's limited systemic importance. In Fitch's
view, the likelihood of extraordinary support from ATB's key
shareholder cannot be reliably assessed.

RATING SENSITIVITIES

IDRS, VR AND NATIONAL RATING

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

-- The bank's ratings could be downgraded if a material weakening
    of the Turkish operating environment compromises its business
    model, which results in deterioration of its overall risk
    appetite, credit risk profile, earnings and capital. The
    ratings could also come under pressure if ATB's strategic
    importance to LFB Group is reduced through a substantial loss
    or withdrawal of funding or business, prompting a significant
    change in the bank's business model.

-- ATB's National Ratings are also sensitive to a change in the
    entity's creditworthiness relative to other rated Turkish
    issuers'.

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

-- The Outlook could be revised to Stable if the operating
    environment stabilises, easing pressure on the bank's overall
    risk profile.

-- Upside for the ratings is limited by the bank's small size,
    niche franchise, high reliance on parent funding, and exposure
    to Turkish operating-environment risks. A positive rating
    action would require a marked improvement of the Turkish
    operating environment accompanied by strong and sustained
    improvement in ATB's financial profile.

SUPPORT RATING AND SUPPORT RATING FLOOR

Upward revision of the Support Rating Floor and upgrade of the
Support Rating would be contingent on a significant increase in
ATB's systemic importance, which is unlikely, in Fitch's view.

BEST/WORST CASE RATING SCENARIO

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

ESG CONSIDERATIONS

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




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

CAFFE NERO: Repays All Bank Loans Borrowed During Covid Crisis
--------------------------------------------------------------
Sophie Witts at The Caterer reports that Caffe Nero has disclosed
in a trading update for May that it has repaid all bank loans
borrowed during the Covid crisis and that it has been cashflow
positive for the last six months.

The company said that it had repaid a GBP12.2 million loan it was
extended a year ago by its bank and is forecast to meet all its
banking covenants over the coming year, The Caterer relates.
Trading, according to the company, was at 70%-80% of 2019 levels,
The Caterer notes.

According to The Caterer, Caffe Nero also reported its annual
figures for the financial year ending May 2020, in which the coffee
chain's directors said "adverse circumstances" including the impact
of further coronavirus restrictions and the success of a legal
challenge to its restructuring plans would cast "significant doubt"
on its ability to trade.

Accounts for the year ended May 31, 2020, showed that in the nine
months to February 2020 like for like sales rose 2.3% and the chain
opened 11 new stores, The Caterer discloses.

But the impact of the first lockdown from March to May resulted in
a loss of over GBP55 million in sales compared to the prior year,
The Caterer states.  As a result, Caffe Nero made a loss before tax
of GBP11.7 million for the period, down on a profit of GBP23.1
million in 2019, The Caterer notes.

Following the first coronavirus lockdown the company directors took
pay cuts of 35% from April 2020 with other head office staff
reducing their pay by 10%-30%, The Caterer recounts.

In November last year, over 92% of creditors voted in approval of
Caffe Nero entering a Company Voluntary Arrangement (CVA), The
Caterer relays.  This saw landlords agree to be paid 30p in every
pound owed in rent arrears and for many to move to turnover-based
rents for the next three years, The Caterer states.

However, the CVA is facing a legal challenge from a single landlord
and will go to court this summer, The Caterer notes.

The group has more than 800 stores across the UK and employs more
than 6,000 people in the UK.


FERGUSON MARINE: Administrators Sanctioned Nationalization
----------------------------------------------------------
Martin Williams at The Herald reports that administrators
overseeing the company at the centre of Scotland's ferry building
"fiasco" sanctioned its controversial nationalization.

So said finance secretary Kate Forbes in denying misuse of public
funds through the forfeit of GBP25 million to complete over two
overdue vessels whose cost to the taxpayer has more than doubled in
a secret deal to pave the way for nationalization, The Herald
relates.

Ms. Forbes denied any wrong-doing in the wake of the Herald on
Sunday revelation that Jim McColl, former Ferguson Marine
Engineering (FMEL) chief and one of Nicola Sturgeon's own economic
advisers was gathering evidence for potential court action while
raising concerns over the 'loss' of the money, The Herald
discloses.

A member of the First Minister's Council of Economic Advisers and
one of Scotland's wealthiest men, he has questioned the legality of
the actions of ministers saying the GBP25 million should have gone
towards completing the ferries, The Herald notes.

According to The Herald, the "lost" GBP25 million related to a bond
from HCCI, a subsidiary of Texas-based insurance firm Tokio Marine
which ensured that should Ferguson enter into administration,
meaning it was unable to deliver the two ferries, Caledonian
Maritime Assets Ltd (CMAL), the Scottish Government-controlled
taxpayer-funded company which owns and procures ferries for
state-owned CalMac, would receive the money to enable completion of
the vessels.

But to cover themselves against a payout, HCCI had a security over
the assets of FMEL, owners of the last civilian shipyard on the
Clyde, which stood in the way of the Scottish Government's
nationalization plan, The Herald discloses.

At the centre of the debacle is MV Glen Sannox and Hull 802, the
lifeline island ferries, which are still languishing in the now
state-owned Ferguson shipyard, with costs of their construction
more than doubling from the original GBP97 million contract, while
their delivery is between four and five years late,
The Herald relays.

The Scottish Government is still owed over GBP40 million from the
collapse of Ferguson Marine in August 2019, having used GBP7.5
million of what they were owed through loans to buy the business,
The Herald notes.

After close questioning, Ms. Forbes, as cited by The Herald, said:
"In the absence of a workable commercial solution the
administrators of Fergusons concluded that bringing the yard into
public ownership was the best option." Representatives of the
professional services Deloitte have been handling the
administration of Ferguson Marine.

Labour's shadow public finance minister Paul Sweeney asked Ms.
Forbes to release all correspondence between ministers, HCCI and
CMAL if the GBP32 million 'forced' acquisition "was not an alleged
misuse of public funds, attempting to cover up for the failures of
CMAL and ministers that caused the collapse of the shipyards as
asserted by the previous management of Ferguson Marine", according
to The Herald.

He told Ms. Forbes that ministers had the contractual right to
claim the GBP25 million refund guarantee which would have seen the
insurance company take control of the shipyard, The Herald relays.

A month before the Scottish Government stepped in as Ferguson fell
into administration, Ferguson raised concerns in a letter seen by
the Herald about the secret negotiations with HCCI and that it
might compromise their attempts to avoid insolvency and pursue what
they described as "the solvent solution", The Herald notes.

After falling into administration the former Ferguson executives
subsequently accused the Scottish Government of having no serious
intention of leaving it in private ownership while being warned
nationalization would be subject to EU state aid laws, The Herald
recounts.

They accused ministers of forcing it into insolvency by rejecting a
plan that would avoid any state aid claim, save the taxpayer at
least GBP120 million and prevent the costs of building two key
lifeline ferries soaring to over GBP230 million, The Herald
discloses.

They registered their concerns a month before Ferguson went under
and ministers took over, The Herald relays.


GREENSILL CAPITAL: Credit Suisse Preparing First Insurance Claims
-----------------------------------------------------------------
Owen Walker and Ian Smith at The Financial Times report that Credit
Suisse is preparing its first insurance claims on losses stemming
from its US$10 billion of funds tied to collapsed finance group
Greensill Capital, according to people with knowledge of the
process.

The Swiss bank is trying to recoup billions of dollars owed to the
group of supply-chain finance funds, which it was forced to close
in March, the FT notes.

According to the FT, the people said while its recovery team is
mainly focused on negotiating with debtors to recover money on
behalf of more than 1,000 investors, it has also started the
process of claiming on the related insurance, primarily from
Japanese group Tokio Marine.

The claims will test the trade credit insurance that was a vital
component of Greensill's securitization machine, the FT states.

The Credit Suisse funds invested in packaged-up invoices sourced by
Greensill, a supply-chain finance specialist, which then arranged
insurance to cover non-payment of the invoices, the FT discloses.
Greensill fell into administration in March after its main
coverage, provided by Tokio Marine unit The Bond & Credit Co,
expired, the FT recounts.

Credit Suisse has indicated that US$2.3 billion linked to three
debtors -- industrialist Sanjeev Gupta's GFG Alliance, US mining
business Bluestone Resources and SoftBank-backed construction
company Katerra -- is proving hard to recoup, the FT relays.

The first insurance claims Credit Suisse are preparing are not
linked to the three named debtors, according to people briefed on
the process, though Katerra's recent filing for US bankruptcy
protection could spur future claims on the US$440 million the
construction group owes the Credit Suisse funds, according to the
FT.

The Swiss bank is also preparing for litigation against SoftBank
over the Katerra debt, as the FT has reported, which could run in
parallel with any insurance claims, the FT notes.

It also emerged in March that BCC's lead underwriter for Greensill
had been dismissed last year for allegedly exceeding his risk
limits, triggering an urgent investigation by Tokio Marine to
establish the size and extent of its exposure, according to the
FT.

The same underwriter had previously been personally lobbied by
David Cameron, the former UK prime minister who was an adviser to
Greensill, the FT states.

The insurer said later in March that it was questioning the
"validity" of the cover, in the wake of a criminal complaint
against the management of Greensill's German subsidiary Greensill
Bank by the German financial regulator, the FT relates.

According to the FT, although Greensill arranged the insurance,
Credit Suisse paid the premiums and is entitled to claim under the
policies, according to people familiar with the recovery process.

They added that Greensill's administrator, Grant Thornton, would
also be involved in submitting the claims, the FT recounts.

The bank's position is that funding against "future receivables" --
a controversial form of lending offered by Greensill against
invoices not yet submitted -- are protected by insurance. Tokio
Marine has said publicly only that the insurance "covers the
accounts receivable of the insured", according to the FT.


MARSTON'S ISSUER: Fitch Affirms BB- Rating on Class B Notes
-----------------------------------------------------------
Fitch Ratings has affirmed Marston's Issuer Plc's (Marston's) class
A and B notes at 'BB+' and 'BB-', respectively. The Outlooks are
Negative.

           DEBT                      RATING         PRIOR
           ----                      ------         -----
Marston's Issuer PLC

Marston's Issuer PLC/Debt/1 LT   LT  BB+  Affirmed   BB+
Marston's Issuer PLC/Debt/3 LT   LT  BB-  Affirmed   BB-

RATING RATIONALE

The ratings reflect the progress on the transformation of Marston's
estate, with an improved quality of tenanted and franchise pubs and
a stable managed estate. The debt structure is robust and benefits
from the standard whole business securitisation (WBS) legal and
structural features and a comprehensive covenant package.

The Fitch rating case (FRC) free cash flow debt service coverage
ratios (FCF DSCRs) to legal final maturity, at 1.2x for class A and
1.1x for class B, have reduced to the border line of the downgrade
sensitivity, leaving no headroom for further weakening before any
downgrade. This underpins the Negative Outlooks amid continued
uncertainties on the revenue recovery path back to normality.

KEY RATING DRIVERS

Sector in Structural Decline but Deeply Rooted: Industry Profile -
Midrange

The pub sector has a long history and is deeply rooted in the UK's
culture. However, in recent years (pre-pandemic), pub assets have
shown significant weakness. The sector is highly exposed to
discretionary spending, strong competition (including from the
off-trade), and other macro factors such as minimum wages, rising
utility costs and some regulatory changes, such as the introduction
of the market rent only option in the tenanted/leased segment. For
bigger pub groups, Fitch considers price risk limited but volume
risk is high.

In terms of barriers to entry, licensing laws and regulations are
moderately stringent, and managed pubs and tenanted pubs (i.e.
non-full repairing and insuring) are fairly capital-intensive.
However, switching costs are generally viewed as low, even though
there may be some positive brand and captive market effects. In
terms of sustainability, despite the potential unfavorable economic
situation caused by Brexit and Covid-19, Fitch views the eating-
and drinking-out market as sustainable in the long term, supported
by the strong pub culture in the UK.

Sub-KRDs - Operating Environment: Weaker, Barriers to Entry:
Midrange, Sustainability: Midrange

Hybrid Managed/Tenanted Model: Company Profile - Midrange

Marston's Plc is one of the large operators of pubs and bars in the
UK, operating over 1,500 pubs and bars across the UK. After selling
its brewing business to form a joint venture with Carlsberg UK,
Marston's Plc is now considered a more focused pub operator. The
disposal of the brewing business brought Marston's Plc around
GBP228 million at the beginning of 2021 and significantly helped
the group's liquidity. The group's strategies remain guest focused,
and will continue to reduce debt to below GBP1 billion by 2025 the
latest. The securitised perimeter of Marston's consists of 947
tenanted and managed pubs across the UK. Management team is
experienced and has been stable, despite the long-standing CEO
recently deciding to step down in October 2021.

Marston's combined sales growth (managed and tenanted) was stagnant
between 2016 and 2019, with 1% CAGR, driven by fast managed sales
(CAGR +2.7%), and countered by slower tenanted sales growth (CAGR
+0.7%). FY20 (October 2020) and 1HFY21 results were negatively
affected by Covid-19, in line with the sector.

Fitch considers Marston's asset quality adequate and aligned with
peers. The company has spent higher than covenant level maintenance
capex in the past. Information shared by the company is adequate.

Sub-KRDs: Financial Performance: Midrange; Company Operations:
Midrange; Transparency: Midrange; Dependence on Operator: Midrange;
Asset Quality: Midrange

Standard WBS Structure with Junior Back-Ended Amortisation: Debt
Structure - Midrange

Debt Profile: All debt is fully amortising on a fixed schedule,
eliminating refinancing risk. The class A notes benefit from
deferability of the junior class B notes. Amortisation of the class
B notes is back-ended and their interest-only period is
substantial. Both classes of notes are either fixed rate or fully
hedged.

Security Package: The security package is strong with comprehensive
first-ranking fixed and floating charges over borrower assets.
Class A is the senior ranking controlling creditor, with the class
B lower ranking, resulting in a 'midrange' assessment.

Structural Features: All standard WBS legal and structural features
are present, and the covenant package is comprehensive. The
restricted payment condition levels are standard, with 1.5x EBITDA
DSCR and 1.3x FCF DSCR. The liquidity facility is covenanted at 18
months' peak debt service. All counterparties' ratings are at or
above the rating of the highest-rated notes. The issuer is an
orphan bankruptcy-remote special-purpose vehicle.

Sub-KRDs: Debt Profile: Class A 'Stronger'; Class B 'Midrange',
Security Package: Class A 'Stronger'; Class B 'Midrange',
Structural Features: Class A and B 'Stronger'.

PEER GROUP

Marston's closest peers are hybrid pubco (managed and tenanted)
securitisations, such as Greene King Finance Plc and Spirit Issuer
Plc, and managed pubco securitisations such as Mitchells & Butlers
Finance Plc. Marston's managed and tenanted pubs generate roughly
equal EBITDA as of October 2020, which is less favourable as Fitch
considers a higher proportion of managed pubs to be a stronger
feature due to managed pubs having greater transparency and
control. Other hybrid pubco peer Greene King generates more than
80% through managed pubs, while Spirit generates more than 70%. The
contribution per pub in managed and tenanted estate of Marston's is
slightly lower compared with peers.

RATING SENSITIVITIES

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

-- Quicker-than-assumed recovery from Covid-19 restrictions
    supporting a sustained improvement in credit metrics could
    lead to the Outlook being revised to Stable.

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

-- A slower than assumed recovery from the Covid-19 shock,
    resulting in the FRC DSCR decreasing to below 1.2 x for the
    class A notes and 1.1x for the class B notes could result in
    negative rating action.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance
and Infrastructure 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 three 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.

TRANSACTION SUMMARY

The transaction is a securitisation of both managed and tenanted
pubs operated by Marston's comprising 272 managed pubs and 675
tenanted pubs as at April 2021.

CREDIT UPDATE

Revenues Under Pressure: Marston's FY20 revenue declined 34.5% yoy
to GBP268 million, mainly driven by the lockdowns and restricted
operations imposed by the government to contain Covid-19. It also
reflects the disposal of more than 150 pubs (mostly tenanted)
during the period. Opex was also reduced through government support
and the company's cost control measures, but at a smaller scale,
leading to a 41% reduction in combined EBITDA, to GBP67 million
from GBP114million. The EBITDA margin reduced slightly to 25%
compared with 28% a year ago.

1HFY21 results continued to be negatively affected by Covid-19,
with the third lockdown and very limited trading activities causing
the company to miss several important sales seasons, such as
Christmas and Easter. Sales dropped 84% yoy to GBP27.9 million,
driven by a 2Q (quarter ends April 2021) with almost no revenue.
Combined EBITDA turned to negative GBP12 million, compared with GBP
43 million in 1HFY20.

Marston's obtained covenant waivers to cover both of the reporting
periods, therefore no loan event of default has occurred.

Defensive Measures: Similar to peers, Fitch believes that Marston's
continues to have some flexibility to help offset the impact of a
potential revenue shortfall. Under the Fitch rating case, for 2Q21,
Fitch assumes a moderate cost reduction for managed pubs,
reflecting the period of restricted operations during the gradual
reopening. For tenanted pubs, Fitch assumes these will continue
receive financial support from the UK government, although the
amount is gradually reducing. Fitch also assumes some reduction in
maintenance capex during the recovery period and to progressively
return to pre-pandemic level.

Adequate Liquidity Position: As of end-April, the securitisation
had undrawn liquidity facilities of GBP92 million (out of a total
liquidity facility of GBP120 million), which together with cash in
hand, are sufficient to cover 18 months of debt service.

FINANCIAL ANALYSIS

Fitch Cases

Compared with the June 2020 FRC, the updated FRC assumes a slower
recovery - to return to end-2019 level by end-2023. From 2024
onwards, Fitch resumes constant pre-pandemic long-term growth rates
to yield a managed/tenanted sales CAGR of 2.0%/1.7% between 2024
and 2035. The projected annual FCF would increase marginally by a
2024-2035 CAGR of 0.3%, driven by expected cost pressures due to
the gradually increasing National Living Wage target.

Compared with last year's FRC, the FCF DSCRs for the class A and B
notes have deteriorated slightly but remain at 1.2x and 1.1x,
respectively.

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.


RICHMOND PARK: Fitch Affirms B- Rating on F-RR Notes
----------------------------------------------------
Fitch Ratings has affirmed Richmond Park CLO DAC and revised the
Outlooks on the class B to D notes to Positive from Stable, and on
the class E and F notes to Stable from Negative.

       DEBT                 RATING          PRIOR
       ----                 ------          -----
Richmond Park CLO DAC

A-RR XS1849529398     LT  AAAsf  Affirmed   AAAsf
B-1-RR XS1849530057   LT  AAsf   Affirmed   AAsf
B-2-RR XS1849530644   LT  AAsf   Affirmed   AAsf
B-3-RR XS1854604441   LT  AAsf   Affirmed   AAsf
C-1-RR XS1849531378   LT  Asf    Affirmed   Asf
C-2-RR XS1854605760   LT  Asf    Affirmed   Asf
D-RR XS1853034624     LT  BBBsf  Affirmed   BBBsf
E-RR XS1849531618     LT  BBsf   Affirmed   BBsf
F-RR XS1849531709     LT  B-sf   Affirmed   B-sf

TRANSACTION SUMMARY

Richmond Park CLO DAC is a cash flow CLO mostly comprising senior
secured obligations. The transaction is actively managed by the
asset manager and will shortly be out of the reinvestment period,
which ends in July 2021. After this, reinvestment is limited to
prepayment and sale proceeds from credit risk and credit improved
obligations and is subject to the post-investment criteria.

KEY RATING DRIVERS

Positive Outlook Reflects Potential Deleveraging: The transaction's
reinvestment period is scheduled to end in July 2021. As of May
2021, there was about EUR39 million cash in the principal account.
The manager will need to cure the weighted average life (WAL) test
(which shows a marginal failure by 0.1 year) by the end of the
reinvestment period to continue to reinvest prepayments and sale
proceeds of credit improved and credit obligations after the end of
the reinvestment period.

Considering the stricter conditions that the reinvestment has to be
compliant with after the end of the reinvestment period, even if
the WAL test is cured, Fitch expects some deleveraging in the next
18 months, which could increase credit enhancement. This supports
the revision of the Outlooks on the class B to D notes to Positive
from Stable.

Notes Resilient to Coronavirus Stress: The affirmations of all
notes and the revision of the Outlooks on the class E and 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%.

Portfolio Quality Improved: The portfolio's weighted average credit
quality is 'B'/'B-'. By Fitch's calculation, the portfolio weighted
average rating factor (WARF) is 33.3, which has improved by about a
point from the last review in September 2020. Assets with a
Fitch-derived rating (FDR) on Negative Outlook make up 23% of the
portfolio balance. The portfolio WARF would increase by 1.1 point
in the coronavirus baseline analysis. Assets with a FDR in the
'CCC' category or below make up about 5% of the collateral balance
if including 0.2% unrated assets.

The transaction is below par by about 80bp according to the
investor report in May 2021. All tests are passing except the Fitch
weighted average spread test and the WAL test, which are both
showing a small failure against the limit. However, the manager can
switch to another passing point per Fitch test matrix in the
documents.

The portfolio is diversified with 176 issuers. The top 10 obligors
and the largest obligor are below 14% and 2%, respectively.

Senior secured obligations comprise 99% 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 65.2%.

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. This is with the exception of the class A notes,
    which are rated at the highest level on Fitch's scale and
    cannot be upgraded. If deleveraging occurs and performance
    remains well, class B to D notes may be upgraded.

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 class F 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

Richmond Park CLO 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.


SANOFI: DB Pension Scheme Has Additional Insolvency Protection
--------------------------------------------------------------
Duncan Ferris at Pensions Age reports that Sanofi's defined benefit
(DB) pension scheme has additional insolvency protection of up to
GBP730 million for 20 years, following intervention from The
Pensions Regulator (TPR).

According to Pensions Age, the regulator worked with the global
healthcare company to secure the increased financial support for
the scheme, which also includes deficit repair contributions and an
upfront payment of GBP37 million, after warning that it would take
enforcement action if necessary.

TPR added that the scheme, which has 16,500 members, now also
benefits from a legally binding agreement which states that any
dividend payments to the wider group paid by the scheme's employers
will be matched by contribution payments into the scheme, Pensions
Age discloses.

The creation of this arrangement follows the regulator opening an
investigation in August 2019 due to concerns that the scheme's
covenant had been weakened by a series of group restructures,
Pensions Age notes.

TPR determined that the guarantee package put in place by Sanofi
was not sufficient and stated that, before it came to the new
agreement with the healthcare company, it had intended to issue a
Warning Notice seeking a Financial Support Direction, Pensions Age
relates.

Instead, Sanofi, which had revenues of around EUR36 billion and a
market value of around EUR104 billion in 2019, approached TPR and
the scheme's trustee in order to discuss further restructuring of
its UK operations, Pensions Age states.

According to Pensions Age, the regulator's report into the
investigation stated that it believed the settlement had
"considerably increased the likelihood that members will receive
their benefits in full and is a good example of a global group
meeting their responsibility for a UK-based scheme".



                           *********


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

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
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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.

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

This material is copyrighted and any commercial use, resale or
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