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

                          E U R O P E

          Tuesday, September 14, 2021, Vol. 22, No. 178

                           Headlines



F R A N C E

ECOTONE HOLDCO III: Fitch Publishes 'B' LT IDR, Outlook Stable


G E R M A N Y

K+S AG: S&P Upgrades Long-Term ICR to 'B+' on Swift Deleveraging


I R E L A N D

CVC CORDATUS XXI: Moody's Assigns B3 Rating to EUR14MM Cl. F Notes
CVC CORDATUS XXI: S&P Assigns B- (sf) Rating on Class F Notes
GOLDENTREE LOAN 3: Moody's Affirms B3 Rating on EUR10.6MM F Notes
GOLDENTREE LOAN 3: S&P Affirms B- (sf) Rating on Class F Notes
ICG EURO 2021-1: Moody's Assigns B3 Rating to EUR12MM Cl. F Notes

ICG EURO 2021-1: S&P Assigns B- (sf) Rating to Class F Notes
PALMER SQUARE 2021-1: Fitch Assigns Final BB+ Rating on 2 Tranches
PALMER SQUARE 2021-1: Moody's Gives B1 Rating to EUR7.5MM F Notes
PERRIGO CO: S&P Lowers ICR to 'BB' on High-Multiple Acquisition


I T A L Y

ALITALIA: EU Commission Clears Injection of Gov't Funds Into ITA
SIENA PMI 2016: Fitch Ups Class D Tranche Rating to 'B-'


M O L D O V A

ARAGVI FINANCE: Fitch Affirms B Rating on USD50MM Tap Issue


R U S S I A

LC EUROPLAN PJSC: Fitch Affirms Then Withdraws 'BB' IDR


S P A I N

IBERCAJA SA: Fitch Affirms 'BB+' LT IDR, Alters Outlook  to Pos.
MADRILENA RED: Fitch Affirms Then Withdraws 'BB+' IDR


U N I T E D   K I N G D O M

CONVATEC GROUP: Moody's Ups CFR to Ba2 & Alters Outlook to Stable
DUNNE GROUP: Boss Faces Charges of "Financial Irregularities"
HERITAGE HOTELS: Couple Buys Langdon Court Hotel After Closure
LENDY: Administrator Set to Produce Fee Proposal After Court Loss
PATISSERIE VALERIE: Ex-Auditor Faces GBP4MM Fine Over Collapse

TRICORN: Set to Enter Administration Following Cash Woes
[*] UK: Government to Phase Out Temporary Insolvency Measures

                           - - - - -


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F R A N C E
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ECOTONE HOLDCO III: Fitch Publishes 'B' LT IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has published Ecotone HoldCo III's (Ecotone)
Long-Term Issuer Default Rating (IDR) of 'B' with a Stable Outlook.
The agency has also published Ecotone's enlarged EUR490 million
term loan B's (TLB) 'B' senior secured rating with a Recovery
Rating of 'RR4'.

The 'B' IDR of Ecotone balances high financial leverage and an
aggressive financial policy against a well-integrated business
model characterised by solid sector-growth potential and strong
free cash flow (FCF) generation.

Its recent debt-funded shareholder distribution has temporarily
lifted financial leverage above Fitch's 7x negative sensitivity, so
any sustained underperformance versus Fitch's Fitch-case forecasts
leading to slower deleveraging would likely lead to negative rating
action.

The Stable Outlook reflects Fitch's view of continued demand for
Ecotone's core "healthy eating" brands as well as gradually
improving profitability, due to the group's efficiency programme,
and tight cost controls mitigate input cost inflation.

KEY RATING DRIVERS

Leverage Temporarily Above Negative Sensitivity: Fitch expects
financial leverage to rise to around 7.3x in 2021, following the
recent shareholder distribution funded by additional debt. The
transaction highlights an aggressive financial policy and appetite
for leverage. Nevertheless, Fitch projects funds from operations
(FFO) gross leverage to decline below 7x, Fitch's negative
sensitivity level, by 2022 on strong business trading. The high
leverage is counterbalanced by improved business risk, resulting in
the overall 'B' IDR.

PIK Treated as Equity: Fitch treats the group's new EUR85 million
payment in-kind (PIK) debt at Ecotone Holdco II level as equity
given subordination and other features that, taken together, do not
increase the probability of default at the restricted group level.
Fitch sees the instrument as 'PIK-for-life' although the group has
the ability to service its coupon in cash. In Fitch's forecasts
Fitch conservatively models this as a recurring shareholder
distribution but Fitch assumes management will assess it in the
wider context of best use of excess cash flows without jeopardising
liquidity or incurring additional debt for this purpose.

Positive Performance in 2020: Ecotone has performed well during the
pandemic as lockdowns increased footfall at supermarkets and
accelerated the trend towards healthy eating. The majority of the
group's brands performed well, with double-digit growth in
Bonneterre, Clipper, Allos and Alter Eco. EBITDA margins were
roughly stable at around 11% as cost savings on travel and hire
freezes were offset by a higher marketing budget. Fitch expects the
trading momentum to continue into 2021, albeit at a more normalised
rate (of around 3% LfL), with EBITDA margins gradually improving
towards 13% and providing deleveraging capacity towards 5.5x in
2024.

Favourable Trends; Increasing Competition: Ecotone's products with
organic raw materials are in a segment of the European packaged
food market where Fitch expects to maintain mid-to-high
single-digit growth. This contrasts with the majority of European
packaged food companies that suffer from stagnating or very low
single-digit growth. While Ecotone remains the market leader, it
continues to face competition from smaller innovative newcomers and
fast-moving capital goods multi-nationals and the expansion of
retailers' private-label propositions into these categories.
Overall, Fitch views these dynamics as beneficial for market growth
and supporting the consumption shift from traditional products but
also putting pressure on Ecotone to maintain a steady pace of
innovation.

Industry Consolidation Opportunities: Ecotone's loan documentation
allows the group to operate with higher leverage and Fitch
continues to expect the group to deploy surplus cash towards
bolt-on M&As, for which the industry offers good opportunities.
Fitch expects surplus cash to be sustained by good annual FCF of
approximately EUR25 million-EUR35 million. Execution risks are
mitigated by a strong record of integrating newly acquired
businesses within its own platform and rolling out acquired
products to its markets.

Portfolio Intercepts Consumer Trends: Ecotone's strong portfolio of
leading brands in the natural foods categories, most of which have
a umbrella brand capability for different products, is a strong
differentiating credit factor, which Fitch has reflected in a '4'
[+] ESG credit Relevance Score for Exposure to Social Impacts and
Customer Welfare. This, together with a diversified range of
products and operations in the largest European packaged food
markets, positions its business profile firmly within the 'bb'
rating category based on Fitch's Packaged Food Rating Navigator
despite its small size.

Fitch believes that the wide range of products supports negotiating
power and distribution efficiency with the retail channel. In
addition to a clear leadership position in France, in each of its
core markets, Ecotone enjoys a top-three position.

DERIVATION SUMMARY

Ecotone displays a strong business profile that is commensurate
with a 'BB' rating category according to Fitch's Packaged Food
Companies Navigator, supported by a large portfolio of brands with
leading market positions in a number of western European countries.
Its portfolio is diversified by product categories in the organic /
healthy packaged food sector and enjoys firm revenue and profit
growth.

Ecotone has smaller scale than 'B' category FMCG peers, such as
Sunshine Luxembourg VII SARL (Galderma; B/Negative) and Sigma
HoldCo BV (B/Stable). This, together with its high financial
leverage, positions Ecotone firmly in the 'B' rating category.
While Ecotone's organic growth prospects are significantly better
than Sigma's, it is smaller and shows weaker operating
profitability and FCF generation.

Ecotone is rated one notch higher than poultry processor Boparan
Holdings Limited (B-/Stable). While Boparan's FFO gross leverage,
which Fitch projects around 5.7x-6.0x over FY22-FY24, is better
than Ecotone's, Boparan's credit profile is affected by lower
profitability (EBITDA margin of around 4%-5%), some volatility in
revenue and execution risk in its turnaround plan.

The three-notch differential with Nomad Foods plc (BB/Stable)
reflects Nomad's larger size, stronger EBITDA margin in the
mid-high teens versus Ecotone's EBITDA margin in the low teens as
well as Nomad's stronger European market share of 12% in its core
segment of frozen foods. Fitch also expects Nomad to maintain a
more conservative FFO-based gross leverage of 5.5x at most.

KEY ASSUMPTIONS

-- Organic revenue CAGR of 2.7% (4.1% including M&A) in 2021
    2024, driven by own brands and geographic expansion;

-- EBITDA margin to improve towards 13% in 2023, driven by cost
    savings and product mix;

-- Average annual capex at 2% of sales in 2021-2024, with higher
    spend at around 3.5% in 2021;

-- EUR10 million annual spend for bolt-on M&A in 2022-2024;

-- Cash interest paid on PIK debt at 7.5% per annum (assumed as
    recurring dividend);

-- EUR111 million one-off shareholder distribution in 2021.

KEY RECOVERY ASSUMPTIONS

-- The recovery analysis assumes that Ecotone would remain a
    going concern in restructuring and that it would be
    reorganised rather than liquidated. Fitch has assumed a 10%
    administrative claim in the recovery analysis.

-- The recovery analysis assumes a going-concern EBITDA of EUR58
    million. Fitch envisages this level of stress following severe
    disruption to one or more of its several key brands, due to
    brand reputational issues, or from severe disruption in the
    group's supply chain, where Ecotone works with some in-house
    and some third-party manufacturers.

-- Fitch also assumes a distressed multiple of 6.0x, reflecting
    the group's leadership in the organic food market in Europe,
    and a solid mid-to high single-digit organic growth projected
    for the organic food sector.

-- Fitch assumes Ecotone's EUR75 million RCF would be fully drawn
    in a restructuring scenario.

-- Fitch has also included, in line with Fitch's criteria, EUR40
    million of factoring facilities (maximum drawn in the last 12
    month period to May 2021), which Fitch treated as super-senior
    ranking debt obligations. Fitch discounts the factoring
    facilities by 28%, assuming its usage should be lower as the
    group becomes distressed.

-- Fitch's waterfall analysis generated a ranked recovery in the
    'RR4' band, indicating a 'B' rating for the enlarged first-
    lien TLB and the RCF. This results in a waterfall generated
    recovery computation output percentage of 50% based on current
    metrics and assumptions.

RATING SENSITIVITIES

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

-- FFO gross leverage falling towards 6.0x (2020: 6.7x) or below
    5.5x net of cash;

-- EBITDA margin and FCF margin increasing above 12.5% and 5%,
    respectively, on greater pricing power and efficient use of
    capital;

-- Mid-to-high single-digit organic revenue growth, driven by a
    good pace of product roll-out and innovation;

-- FFO interest coverage at 3.5x or above.

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

-- FFO gross leverage sustainably above 7.0x or 6.5x net of cash
    as a result of limited EBITDA growth or due to either large
    scale or debt-funded M&A activity;

-- EBITDA margin and FCF margin dropping below 9.5% and 2.5%,
    respectively, due to more intense competition;

-- Low single-digit organic revenue growth as a result of
    inability to maintain a good pace of product roll-out and
    innovation;

-- FFO interest coverage below 2.5x.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: Long-dated debt maturities (2026-2027) and
an undrawn EUR75 million RCF support Ecotone's liquidity. Debt
repayment is limited over Fitch's four-year rating horizon.
Intra-year working capital swings in normal years are up to EUR10
million-EUR20 million, of which Fitch assumes EUR5 million as
restricted cash.

Fitch-adjusted cash on the balance sheet at end-May 2021 was EUR17
million. However, Fitch expects the group's cash buffer to grow as
FCF accumulates on balance sheet. A receivable factoring facility
of EUR55 million is in place, of which Fitch expects approximately
EUR30 million-EUR40 million to be drawn at end-2021, to support
operational liquidity needs.

ISSUER PROFILE

Founded in the Netherlands and headquartered in France, Ecotone
(previously known as "Wessanen") is a western European food
producer, with a focus on branded organic and healthy food
products, including successful brands such as Clipper, Bonneterre
and Bjorg.

ESG CONSIDERATIONS

Ecotone has an ESG Relevance Score of 4[+] for Exposure to Social
Impacts and Customer Welfare as over 90% of sales are derived from
organically certified products with an emphasis on healthy and
sustainable food alongside a socially responsible sourcing model.
This has a positive impact on the credit profile and is relevant to
the ratings in conjunction with other factors.

Except for the matters discussed above, the highest level of ESG
credit relevance, if present, is a score of 3 - ESG issues are
credit neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.



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G E R M A N Y
=============

K+S AG: S&P Upgrades Long-Term ICR to 'B+' on Swift Deleveraging
----------------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit rating on
German potash producer K+S AG to 'B+' from 'B' and affirmed its 'B'
short-term rating.

The stable outlook reflects that S&P expects strong potash market
trends to continue in the next 12 months, combined with the
company's measures to control costs and capital expenditure
(capex), should help it reduce leverage to comfortably below 3x
adjusted debt to EBITDA in 2022 and generate solidly positive free
operating cash flow (FOCF).

High potash prices will push up EBITDA and, together with debt
reduction from asset disposal proceeds, result in much
lower-than-expected leverage in 2021. S&P said, "We forecast S&P
Global Ratings-adjusted debt to EBITDA will strengthen to 3.0x-3.5x
by end-2021, mainly due to a swift rebound in EBITDA amid top of
the cycle market conditions. This is much lower than our previous
expectation of leverage above 6x this year. Global potash shipments
are projected to reach a record high in 2021 while inventory in key
regions is historically low. This stems from strong potash
consumption backed by favorable agricultural fundamentals,
supported by significant increase in key agricultural commodity
prices and the resulting improvement in farmer economics. In
addition, prices are supported due to global supply issues with
many producers are operating at high utilization rates. We now
expect average selling prices for K+S' agriculture products to
increase by more than 15% in 2021 and sales volume also up by about
5%. In the Industry+ segment, cold winter weather pushed up the
demand for de-icing salt in the first half and we expect a
continuous moderate increase in industrial and chemical salts in
line with the recovery in Europe. As a result, we forecast our
adjusted EBITDA will more than double to EUR550 million-EUR600
million in 2021 from EUR255 million last year from continuing
operations, much higher than our previous estimate of EUR320
million-EUR330 million. Since the sale of the Americas operating
unit in April, K+S has repaid financial liabilities by around
EUR1.7 billion and terminated the unused KfW credit line." With the
repayment of EUR450 million outstanding of the EUR500 million bond
maturing in December 2021, gross debt will substantially fall by
more than EUR2 billion to roughly EUR1.2 billion by year-end.

Constructive outlook for the potash market supports further
strengthening in credit metrics and a turnaround to solidly
positive FOCF in 2022. Strong market demand, with a low
stocks-to-use ratio going into 2022, and limited capacity addition
in the next few years are likely to keep potash prices relatively
high next year. In addition, there is normally a time lag of
several months to reflect market spot prices in the company's
earnings. As a result, S&P expects at least 10% higher average
selling price for K+S next year, leading to adjusted EBITDA of
EUR700 million-EUR750 million in 2022 and a further deleveraging to
clearly below 3x adjusted debt to EBITDA. Moreover, FOCF will
swiftly strengthen to EUR80 million-EUR120 million in 2022 from
about negative EUR100 million expected for 2021. This is due to
increased EBITDA, maintained focus on working capital management,
and well-controlled capex, which S&P expects to be slightly lower
than this year.

Highly volatile earnings and cash flow reflect the industry's
cyclicality and the company's vulnerability to fluctuations in
potash prices. K+S' credit ratios have been and will remain
volatile, reflecting the company's high exposure to volatile potash
prices and the fertilizer industry's cyclicality. Potash price is
the most important driver for K+S' operating performance. This is
outside the company's control and can be highly volatile despite
the current favorable trend. In addition, K+S suffers from the
higher cash costs of its German mines compared with many other
industry peers, due to their geology, strict environmental
regulations in the country, higher cost of energy, and potentially
higher costs related to carbon dioxide emissions, for example
compared with Russia-based peers. Moreover, a track record in
sustainably positive FOCF still needs to be built up, notably in
the event of low potash prices and potentially higher capex due to
environmental regulations.

S&P said, "We expect financial policy to support the rating. We
understand that the company will focus on increasing the robustness
of its business and improving free cash flow , even at low potash
prices. We assume that potential dividend payments from 2022 will
depend on operating performance and cash flow.

"The stable outlook reflects that we expect strong potash market
trends to continue in the next 12 months, combined with K+S'
measures to control costs and capex, should help it reduce leverage
to comfortably below 3x adjusted debt to EBITDA in 2022 and
generate solidly positive FOCF."

S&P could lower the rating if:

-- The company's credit metrics weaken substantially, for example,
due to prolonged weakening in potash prices or material unexpected
operational disruptions on its production sites, with adjusted debt
to EBITDA approached 5.5x; or

-- FOCF turns negative without near-term recovery prospects.
In addition, a more-aggressive financial policy regarding capex,
acquisitions, and shareholder distributions could constrain the
rating.

S&P could raise the rating if:

-- The company develops a track record of positive, sustainable
FOCF;

-- Weighted-average leverage remains sustainably below 4x debt to
EBITDA; and

-- Supportive financial policy and strong commitment from
management to maintaining credit metrics commensurate with a higher
rating.




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I R E L A N D
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CVC CORDATUS XXI: Moody's Assigns B3 Rating to EUR14MM Cl. F Notes
------------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to the Notes issued by CVC Cordatus
Loan Fund XXI DAC (the "Issuer"):

EUR1,800,000 Class X Senior Secured Floating Rate Notes due 2034,
Definitive Rating Assigned Aaa (sf)

EUR174,000,000 Class A-1 Senior Secured Floating Rate Notes due
2034, Definitive Rating Assigned Aaa (sf)

EUR60,000,000 Class A-2 Senior Secured Floating Rate Notes due
2034, Definitive Rating Assigned Aaa (sf)

EUR38,000,000 Class B-1 Senior Secured Floating Rate Notes due
2034, Definitive Rating Assigned Aa2 (sf)

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

EUR26,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned A2 (sf)

EUR30,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned Baa3 (sf)

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

EUR14,000,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned B3 (sf)

RATINGS RATIONALE

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

The Issuer 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 about 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.

CVC Credit Partners Investment Management Limited ("CVC") 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 and a half 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.

Interest and principal amortisation amounts due to the Class X
Notes are paid pro rata with payments to the Class A-1 Notes and
Class A-2 Notes. The Class X Notes amortises by EUR300,000.00 over
six payment dates starting from the second payment date.

In addition to the nine classes of Notes rated by Moody's, the
Issuer will issue EUR31,425,000 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 Notes in order of seniority.

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: EUR400,000,000.00

Diversity Score: 45

Weighted Average Rating Factor (WARF): 3140

Weighted Average Spread (WAS): 3.70%

Weighted Average Coupon (WAC): 4.25%

Weighted Average Recovery Rate (WARR): 45.0%

Weighted Average Life (WAL): 8.5 years

CVC CORDATUS XXI: S&P Assigns B- (sf) Rating on Class F Notes
-------------------------------------------------------------
S&P Global Ratings assigned credit ratings to CVC Cordatus Loan
Fund XXI DAC's class X, A-1, A-2, B-1, B-2, C, D, E, and F notes.
At closing, the issuer issued unrated subordinated notes.

The ratings reflect S&P's assessment of:

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

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

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

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

-- Under the transaction documents, the rated loan and notes will
pay quarterly interest unless there is a frequency switch event.
Following this, the rated loan and notes will permanently switch to
semiannual payment.

-- The portfolio's reinvestment period will end approximately 4.5
years after closing, and the portfolio's maximum average maturity
date will be eight and a half years after closing.

-- This transaction has a EUR1.5 million liquidity facility
provided by The Bank of New York Mellon for a maximum of four
years, with the drawn margin of 2.50%. For our cash flows, we have
added this amount to the class A notes' balance, since the
liquidity facility payment amounts rank senior to the interest
payments on the rated notes.

  Expected Effective Date Portfolio Benchmarks
                                                           CURRENT
  S&P Global Ratings weighted-average rating factor        3008.39
  Default rate dispersion                                   491.59
  Weighted-average life (years)                               5.48
  Obligor diversity measure                                 106.29
  Industry diversity measure                                 19.38
  Regional diversity measure                                  1.23

  Expected Effective Date Portfolio Key Metrics
                                                           CURRENT
  Total par amount (mil. EUR)                                400.0
  Number of performing obligors                                118
  Portfolio weighted-average rating
     derived from S&P's CDO evaluator                            B
  'CCC' category rated assets (%)                             5.01
  'AAA' weighted-average recovery (%)                        34.82
  Weighted-average spread (net of floors) (%)                 3.78
  Weighted-average coupon (%)                                 4.50

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

"In our cash flow analysis, we used the EUR400 million target par
amount, a weighted-average spread of 3.78%, a weighted-average
coupon of 4.50%, and the identified portfolio's weighted-average
recovery rates. We applied various cash flow stress scenarios,
using four different default patterns, in conjunction with
different interest rate stress scenarios for each liability rating
category."

Principal transfer test

This transaction features a principal transfer test. Following the
expiry of the non-call period, and following the payment of
deferred interest on the class F notes, interest proceeds above
101% of the class F interest coverage amount can be paid into the
principal account. As this is at the discretion of the collateral
manager, S&P did not give any credit to this test.

S&P said, "Under our structured finance sovereign risk criteria,
the transaction's exposure to country risk is sufficiently
mitigated at the assigned ratings.

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

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

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

"The class F notes' current break-even default rate (BDR) cushion
is negative at the 'B-' rating level. Based on the portfolio's
actual characteristics and additional overlaying factors, including
our long-term corporate default rates, we believe this class is
able to sustain a steady-state scenario, in accordance with our
criteria. S&P's analysis further reflects several factors,
including:

-- The class F notes' available credit enhancement is in the same
range as that of other CLOs S&P has rated and that has recently
been issued in Europe.

-- S&P's BDR at the 'B-' rating level is 25.8% versus a portfolio
default rate of 17.1% if it was to consider a long-term sustainable
default rate of 3.1% for a portfolio with a weighted-average life
of 5.50 years.

-- Whether the tranche is vulnerable to nonpayment in the near
future.

-- If there is a one-in-two chance for this note to default.

-- If S&P envisions this tranche to default in the next 12-18
months.

-- Following this analysis, S&P considers that the available
credit enhancement for the class F notes is commensurate with a 'B-
(sf)' rating.

-- The transaction securitizes a portfolio of primarily senior
secured leveraged loans and bonds, and is managed by CVC Credit
Partners European CLO Management LLP.

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

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

Environmental, social, and governance (ESG) factors

S&P said, "We regard the exposure to ESG credit factors in the
transaction as being broadly in line with our benchmark for the
sector. Primarily due to the diversity of the assets within CLOs,
the exposure to environmental credit factors is viewed as below
average, social credit factors are below average, and governance
credit factors are average. For this transaction, the documents
prohibit or limit assets from being related to the following
industries: marijuana, tobacco, the manufacturing or marketing of
weapons, thermal coal production, predatory payday lending
activities, pornography, prostitution, and endangered or protected
wildlife trades. Accordingly, since the exclusion of assets from
these industries does not result in material differences between
the transaction and our ESG benchmark for the sector, no specific
adjustments have been made in our rating analysis to account for
any ESG-related risks or opportunities."

  Ratings List

  CLASS   RATING    AMOUNT     INTEREST RATE             CREDIT
                   (MIL. EUR)                      ENHANCEMENT (%)
  X       AAA (sf)    1.800    Three/six-month EURIBOR      N/A
                               plus 0.65%
  A-1     AAA (sf)  174.000    Three/six-month EURIBOR     41.50
                               plus 0.96%
  A-2     AAA (sf)   60.000    Three/six-month EURIBOR     41.50
                               plus 1.37
                               (EURIBOR capped at 2.1%)
  B-1     AA (sf)    38.000    Three/six-month EURIBOR     29.50
                               plus 1.70%
  B-2     AA (sf)    10.000    2.05%                       29.50
  C       A (sf)     26.000    Three/six-month EURIBOR     23.00
                               plus 2.15%
  D       BBB- (sf)  30.000    Three/six-month EURIBOR     15.50
                               plus 3.05%
  E       BB- (sf)   21.000    Three/six-month EURIBOR     10.25
                               plus 5.93%
  F       B- (sf)    14.000    Three/six-month EURIBOR      6.75
                               plus 8.70%                 
  Sub Notes   NR     31.425    N/A                           N/A

EURIBOR--Euro Interbank Offered Rate.
NR--Not rated.
N/A--Not applicable.


GOLDENTREE LOAN 3: Moody's Affirms B3 Rating on EUR10.6MM F Notes
-----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to refinancing notes issued by
GoldenTree Loan Management EUR CLO 3 Designated Activity Company
(the "Issuer"):

EUR248,000,000 Class A-R Senior Secured Floating Rate Notes due
2032, Assigned Aaa (sf)

EUR25,000,000 Class B-1-R Senior Secured Floating Rate Notes due
2032, Assigned Aa2 (sf)

EUR8,000,000 Class B-2-R Senior Secured Fixed Rate Notes due 2032,
Assigned Aa2 (sf)

EUR25,000,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned A2 (sf)

EUR28,000,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned Baa3 (sf)

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

EUR2,300,000 (Current outstanding amount EUR 575,000) Class X
Senior Secured Floating Rate Notes due 2032, Affirmed Aaa (sf);
previously on Aug 6, 2020 Affirmed Aaa (sf)

EUR26,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2032, Affirmed Ba3 (sf); previously on Aug 6, 2020
Confirmed at Ba3 (sf)

EUR10,600,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2032, Affirmed B3 (sf); previously on Aug 6, 2020
Confirmed at 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.

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

As part of this refinancing, the Issuer has amended certain
concentration limits and minor features.

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

GoldenTree Loan Management, LP 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
reinvestment period, which will end in January 2024. 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.

Methodology Underlying the Rating Action:

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

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

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

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

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

Performing par and principal proceeds balance: EUR394.0m

Defaulted Par: Nil

Diversity Score(*): 51

Weighted Average Rating Factor (WARF): 3130

Weighted Average Spread (WAS): 3.47%

Weighted Average Recovery Rate (WARR): 45.2%

Weighted Average Life (WAL): 6.2 years

GOLDENTREE LOAN 3: S&P Affirms B- (sf) Rating on Class F Notes
--------------------------------------------------------------
S&P Global Ratings assigned its credit ratings to GoldenTree Loan
Management EUR CLO 3 DAC's class A-R, B-1-R, B-2-R, C-R, and D-R
notes. At the same time, S&P has affirmed its ratings on the class
X, E, and F notes.

On Sept. 10, 2021, the issuer refinanced the original class A, B-1,
B-2, C, and D notes by issuing replacement notes of the same
notional. The replacement notes are largely subject to the same
terms and conditions as the original notes, except for the
following:

-- The replacement notes have a lower spread over Euro Interbank
Offered Rate (EURIBOR) than the original notes.

-- The portfolio's maximum weighted-average life has been extended
by 21 months.

The ratings assigned to GoldenTree Loan Management EUR CLO 3 's
refinanced notes reflect our assessment of:

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

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

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

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

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

-- Under the transaction documents, the rated notes will pay
quarterly interest unless there is a frequency switch event.
Following this, the notes will permanently switch to semiannual
payment.

-- The portfolio's reinvestment period will end in January 2024.

S&P said, "In our cash flow analysis, we used a EUR393.99 million
adjusted collateral principal amount, the reference
weighted-average spread (3.49%), the reference weighted-average
coupon (3.50%), the covenanted fixed-rate asset bucket (10%) and
floating-rate bucket (90%), and the reference weighted-average
recovery rates for all rating levels.

"We applied various cash flow stress scenarios, using four
different default patterns, in conjunction with different interest
rate stress scenarios for each liability rating category.

"Our credit and cash flow analysis indicates that the available
credit enhancement for the class B-1-R to D-R notes could withstand
stresses commensurate with higher ratings than those we have
assigned. However, as the CLO is in its reinvestment phase, during
which the transaction's credit risk profile could deteriorate, we
have capped our assigned ratings on the notes. In our view the
portfolio is granular in nature, and well-diversified across
obligors, industries, and assets.

"The class E notes are still able to withstand the stresses we
apply at the currently assigned rating, based on their available
credit enhancement. We have therefore affirmed our 'BB- (sf)'
rating on the class E notes.

"For the class F notes, our credit and cash flow analysis indicates
a negative cushion at the assigned rating. Nevertheless, based on
the portfolio's actual characteristics and additional overlaying
factors, including our long-term corporate default rates and recent
economic outlook, we believe this class is able to sustain a
steady-state scenario, in accordance with our criteria." S&P's
analysis reflects several key factors, including:

-- The available credit enhancement for this class of notes is in
the same range as other CLOs that S&P rates, and that have recently
been issued in Europe.

-- The portfolio's average credit quality is similar to other
recent CLOs.

-- S&P also compared our model generated break-even default rate
at the 'B-' rating level of 19.66% versus if it was to consider a
long-term sustainable default rate of 3.10% for 5.023 years
(current weighted-average life of the CLO portfolio), which would
result in a target default rate of 15.57%.

-- The actual portfolio is generating higher spreads versus the
covenanted fix/floating threshold that S&P has modelled in its cash
flow analysis.

S&P said, "Following this analysis, we consider that the available
credit enhancement for the class F notes is commensurate with a 'B-
(sf)' rating. We have therefore affirmed our 'B- (sf)' rating on
this class of notes.

"The Bank of New York Mellon (London Branch) is the bank account
provider and custodian, while J.P. Morgan AG is the asset swap
counterparty. The documented downgrade remedies are in line with
our counterparty criteria.

"Following the application of our structured finance sovereign risk
criteria, we consider the transaction's exposure to country risk to
be limited at the assigned ratings, as the exposure to individual
sovereigns does not exceed the diversification thresholds outlined
in our criteria.

"We consider the transaction's legal structure to be bankruptcy
remote, in line with our legal criteria.

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe that our ratings are
commensurate with the available credit for the class X, A-R, B-1-R,
B-2-R, C-R, D-R, E and F notes.

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

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

GoldenTree Loan Management EUR CLO 3 is a broadly syndicated
collateralized loan obligation (CLO) managed by GoldenTree Loan
Management LP.

  Ratings List

  CLASS   RATING   AMOUNT   REPLACEMENT     ORIGINAL        SUB(%)
                  MIL. EUR) NOTES           NOTES
                            INTEREST RATE*  INTEREST RATE
  Ratings assigned

  A-R     AAA (sf) 248.00  3-month EURIBOR  3-month EURIBOR  37.06
                            plus 0.90%       plus 1.12%  
  B-1-R   AA (sf)   25.00  3-month EURIBOR  3-month EURIBOR  28.68
                            plus 1.70%       plus 1.90%
  B-2-R   AA (sf)    8.00  2.00%            2.45%            28.68
  C-R     A (sf)    25.00  3-month EURIBOR  3-month EURIBOR  22.33
                            plus 2.30%       plus 2.60%
  D-R     BBB- (sf) 28.00  3-month EURIBOR  3-month EURIBOR  15.23
                            plus 3.40%       plus 3.90%

  Ratings affirmed

  X**     AAA (sf)   0.58  N/A              3-month EURIBOR    N/A
                                             plus 0.45%
  E**     BB- (sf)  26.00  N/A              3-month EURIBOR   8.63
                                             plus 5.91%
  F**     B- (sf)   10.60  N/A              3-month EURIBOR   5.94
                                             plus 8.32%


*The payment frequency switches to semiannual and the index
switches to six-month EURIBOR when a frequency switch event occurs.

**These classes of notes were not subject to refinancing.
EURIBOR--Euro Interbank Offered Rate.
N/A--Not applicable.

ICG EURO 2021-1: Moody's Assigns B3 Rating to EUR12MM Cl. F Notes
-----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by ICG Euro CLO 2021-1
DAC (the "Issuer"):

EUR246,000,000 Class A Senior Secured Floating Rate Notes due
2034, Definitive Rating Assigned Aaa (sf)

EUR22,000,000 Class B-1 Senior Secured Floating Rate Notes due
2034, Definitive Rating Assigned Aa2 (sf)

EUR20,000,000 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)

EUR25,000,000 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 Ba3 (sf)

EUR12,000,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned B3 (sf)

RATINGS RATIONALE

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

The Issuer 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 85% 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 4.5 months ramp-up period in compliance with the
portfolio guidelines.

Intermediate Capital Managers Limited will manage the CLO. It will
direct the selection, acquisition and disposition of collateral on
behalf of the Issuer and may engage in trading activity, including
discretionary trading, during the transaction's 4.5 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.

In addition to the seven classes of notes rated by Moody's, the
Issuer will issue EUR1,000,000 Class Z Notes due 2034 and
EUR30,800,000 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 notes in order of seniority.

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:

Target Par Amount: EUR400,000,000

Diversity Score: 45

Weighted Average Rating Factor (WARF): 3002

Weighted Average Spread (WAS): 3.75%

Weighted Average Coupon (WAC): 4.00%

Weighted Average Recovery Rate (WARR): 44.75%

Weighted Average Life (WAL): 8.5 years

ICG EURO 2021-1: S&P Assigns B- (sf) Rating to Class F Notes
------------------------------------------------------------
S&P Global Ratings assigned credit ratings to ICG Euro CLO 2021-1
DAC's class A, B-1, B-2, C, D, E, and F notes. At closing, the
issuer also issued EUR30.80 million of unrated subordinated notes.

Under the transaction documents, the rated notes will pay quarterly
interest unless a frequency switch event occurs. Following this,
the notes will switch to semiannual payments. The portfolio's
reinvestment period will end approximately 4.5 years after
closing.

Under the transaction documents, the manager will be allowed to
purchase loss mitigation obligations in connection with the default
of an existing asset with the aim of enhancing the global recovery
on that obligor. The manager will also be allowed to exchange
defaulted obligations for other defaulted obligations from a
different obligor with a better likelihood of recovery.

S&P said, "We have performed our analysis on the expected effective
date portfolio provided to us by the manager. To generate default
and recovery rates based on a EUR400 million portfolio, we
considered the credit assumptions provided to us for the
unidentified obligations, which represent 26% of the target par
amount. We note that the overall recovery profile of the portfolio
is improved by the assumptions underlying these obligations, which
are to be purchased during the ramp-up period. If such recovery
assumptions are not achieved, this may put downward pressure on the
ratings on the notes. We consider that the effective date portfolio
will be well-diversified, primarily comprising broadly syndicated
speculative-grade senior secured term loans. Therefore, we have
conducted our credit and cash flow analysis by applying our
criteria for corporate cash flow CDOs."
  Portfolio Benchmarks

  S&P Global Ratings weighted-average rating factor       2871.39
  Default rate dispersion                                  362.79
  Weighted-average life (years)                              5.66
  Obligor diversity measure                                100.16
  Industry diversity measure                                16.97
  Regional diversity measure                                 1.29
  Weighted-average rating                                       B
  'CCC' category rated assets (%)                               0
  'AAA' weighted-average recovery rate                      37.37
  Floating-rate assets (%)                                  95.85
  Weighted-average spread (net of floors; %)                 3.84

S&P said, "In our cash flow analysis, we used the EUR400 million
target par amount, a weighted-average spread of 3.75%, the
reference weighted-average coupon covenant 4.00%, and the
weighted-average recovery rates as indicated by the portfolio
manager. We applied various cash flow stress scenarios, using four
different default patterns, in conjunction with different interest
rate stress scenarios for each liability rating category.

"Our credit and cash flow analysis indicates that the available
credit enhancement for the class B-1, B-2, C, and D notes could
withstand stresses commensurate with higher ratings than those we
have assigned. However, the CLO benefits from a reinvestment period
until March 9, 2026, during which the transaction's credit risk
profile could deteriorate, subject to CDO monitor results. We have
therefore capped our ratings assigned to the notes.

"Our credit and cash flow analysis show that the class F notes
present a break-even default rate-scenario default rate (BDR-SDR)
cushion that we would typically consider to be in line with a lower
rating than 'B-'. In line with our 'CCC' rating criteria, we have
assessed (i) whether the tranche is vulnerable to non-payments in
the near future, (ii) if there is a one in two chance for this note
to default, and (iii) if we envision this tranche to default in the
next 12-18 months." Following the application of its 'CCC' rating
criteria and the consideration of the factors below, S&P has
assigned a 'B- (sf)' rating to the class F notes:

-- The class F notes benefit from credit enhancement of 6.75%,
which is in the same range as other recently issued European CLOs
that we have rated.

-- The portfolio's average credit quality is similar to other
recent European CLOs that S&P has rated.

-- S&P's model generated a BDR at the 'B-' rating level of 27.38%,
which exceeds an expected default rate of 17.56% if it considers a
historical long-term default rate of 3.1% and a weighted-average
life of 5.66 years.

-- The actual portfolio is generating higher spreads and
recoveries than what S&P has modeled in its cash flow analysis.

S&P said, "Elavon Financial Services DAC is the bank account
provider and custodian. At closing, the documented downgrade
remedies are in line with our counterparty criteria for liabilities
rated up to 'AAA'.

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

"At closing, the issuer is bankruptcy remote, in accordance with
our legal criteria.

"The CLO is managed by Intermediate Capital Managers Ltd. We
currently have two European CLOs from the manager under
surveillance. Under our "Global Framework For Assessing Operational
Risk In Structured Finance Transactions," published on Oct. 9,
2014, the maximum potential rating on the liabilities is 'AAA'.

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

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

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe our ratings are
commensurate with the available credit enhancement for each class
of notes."

Environmental, social, and governance (ESG) factors

S&P said, "We regard the exposure to ESG credit factors in the
transaction as being broadly in line with our benchmark for the
sector. Primarily due to the diversity of the assets within CLOs,
the exposure to environmental credit factors is viewed as below
average, social credit factors are below average, and governance
credit factors are average. For this transaction, the documents
prohibit assets from being related to the following industries:
manufacture or marketing of anti-personnel mines, cluster weapons,
depleted uranium, nuclear weapons, white phosphorus, and biological
and chemical weapons. Accordingly, since the exclusion of assets
from these industries does not result in material differences
between the transaction and our ESG benchmark for the sector, no
specific adjustments have been made in our rating analysis to
account for any ESG-related risks or opportunities."

  Ratings List

  CLASS   RATING    AMOUNT         INTEREST RATE       SUB (%)
                   (MIL. EUR)
  A       AAA (sf)   246.00     Three-month EURIBOR   38.50
                                plus 1.05%
  B-1     AA (sf)     22.00     Three-month EURIBOR   28.00
                                plus 1.80%
  B-2     AA (sf)     20.00     2.15%                 28.00
  C       A (sf)      28.00     Three-month EURIBOR   21.00
                                plus 2.40%
  D       BBB (sf)    25.00     Three-month EURIBOR   14.75
                                plus 3.55%
  E       BB- (sf)    20.00     Three-month EURIBOR    9.75
                                plus 6.46%
  F       B- (sf)     12.00     Three-month EURIBOR    6.75
                                plus 8.82%
  Z       NR           1.00     N/A                     N/A

  Sub notes   NR      30.80     N/A                     N/A

*The payment frequency switches to semiannual and the index
switches to six-month EURIBOR when a frequency switch event occurs.

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

PALMER SQUARE 2021-1: Fitch Assigns Final BB+ Rating on 2 Tranches
------------------------------------------------------------------
Fitch Ratings has assigned Palmer Square European Loan Funding
2021-1 DAC final ratings.

       DEBT                     RATING                PRIOR
       ----                     ------                -----
Palmer Square European Loan Funding 2021-1 DAC

Class A XS2372348719      LT  AAAsf   New Rating    AAA(EXP)sf
Class B XS2372348982      LT  AA+sf   New Rating    AA+(EXP)sf
Class C XS2372349105      LT  A+sf    New Rating    A+(EXP)sf
Class D XS2372349360      LT  BBB+sf  New Rating    BBB-(EXP)sf
Class E XS2372349873      LT  BB+sf   New Rating    BB+(EXP)sf
Class F XS2372349790      LT  BB+sf   New Rating    B+(EXP)sf
Sub Notes XS2372349956    LT  NRsf    New Rating    NR(EXP)sf

TRANSACTION SUMMARY

Palmer Square European Loan Funding 2021-1 DAC (the issuer) is an
arbitrage cash flow collateralised loan obligation (CLO) that is
being serviced by Palmer Square Europe Capital Management LLC
(Palmer Square). Net proceeds from the issuance of the notes were
used to purchase a static pool of primarily secured senior loans
and bonds, totaling about EUR450 million.

KEY RATING DRIVERS

Upgrade from Expected Rating (Positive): The final ratings assigned
to the class D and F notes are two notches and three notches above
their expected ratings, respectively. The higher ratings are driven
by the new assumptions, including lower default rates at lower
rating categories, under the CLO criteria Exposure Draft, which
have a positive effect on the transaction's analysis. For more
details, see Exposure Draft: CLOs and Corporate CDOs Rating
Criteria published on 9 August 2021.

'B' Portfolio Credit Quality (Neutral): Fitch places the average
credit quality of obligors to be in the 'B' category. The Fitch
weighted average rating factor (WARF) of the current portfolio is
23.5 as calculated with the criteria exposure draft's updated
Rating Factor table.

High Recovery Expectations (Positive): Senior secured obligations
make up 100% 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 is 65.9%.

Diversified Portfolio Composition (Positive): The largest three
industries comprise 37.3% of the portfolio balance, the top 10
obligors represent 9.4% of the portfolio balance and no single
obligor represents more than 1.1% of the portfolio.

Static Portfolio (Positive): The transaction does not have a
reinvestment period and discretionary sales are not permitted.
Fitch's analysis is based on the current portfolio and stressed by
applying a one-notch reduction to all obligors with a Negative
Outlook (floored at 'CCC').

RATING SENSITIVITIES

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

-- A 25% increase of the mean default rate (RDR) across all
    ratings and a 25% decrease of the recovery rate (RRR) across
    all ratings would lead to a downgrade of up to five notches
    for the rated notes.

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

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

-- A 25% reduction of the RDR across all ratings and a 25%
    increase in the RRR across all ratings would lead to an
    upgrade of up to three notches for the rated notes, except for
    the class A notes, which are already at the highest rating on
    Fitch's scale and cannot be upgraded.

-- Upgrades could occur in case of a continuing better-than
    initially expected portfolio credit quality and deal
    performance, and continued amortisation that leads to higher
    credit enhancement for the notes and excess spread available
    to cover for losses in the remaining portfolio. Upgrades of
    sub-investment grade tranches could be more limited and may
    occur after significant amortisation of the senior tranches
    and sustained stable portfolio performance.

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

Palmer Square European Loan Funding 2021-1 DAC

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.

PALMER SQUARE 2021-1: Moody's Gives B1 Rating to EUR7.5MM F Notes
-----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to the Notes to be issued by Palmer
Square European Loan Funding 2021-1 Designated Activity Company
(the "Issuer"):

EUR306,000,000 Class A Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aaa (sf)

EUR40,500,000 Class B Senior Secured Floating Rate Notes due 2031,
Definitive Rating Assigned Aa1 (sf)

EUR27,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned A1 (sf)

EUR27,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned Baa3 (sf)

EUR15,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned Ba2 (sf)

EUR7,500,000 Class F Senior Secured Deferrable Floating Rate Notes
due 2031, Definitive Rating Assigned B1 (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 static CLO. The issued notes will be collateralized
primarily by broadly syndicated senior secured corporate loans.
Moody's expect the portfolio to be 100% ramped as of the closing
date.

Palmer Square Europe Capital Management LLC (the "Servicer") may
engage is disposition of the assets on behalf of the Issuer during
the life of the transaction. Reinvestment is not permitted and all
sale and unscheduled principal proceeds received will be used to
amortize the notes in sequential order.

In addition, the Issuer will issue EUR29,950,000 Subordinated Notes
due 2031 which are not rated.

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

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 Servicer'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: EUR450,043,342.00

Diversity Score: 56

Weighted Average Rating Factor (WARF): 2759

Weighted Average Spread (WAS): 3.57% (actual spread vector of the
portfolio)

Weighted Average Coupon (WAC): 3.55% (actual spread vector of the
portfolio)

Weighted Average Recovery Rate (WARR): 46.55%

Weighted Average Life (WAL): 5.56 years (actual amortization vector
of the portfolio)

PERRIGO CO: S&P Lowers ICR to 'BB' on High-Multiple Acquisition
---------------------------------------------------------------
S&P Global Ratings lowered its long-term credit rating on
Dublin-based global consumer self-care company Perrigo Co. PLC to
'BB' from 'BBB-'.

S&P said, "The stable outlook reflects our expectation for adjusted
debt to EBITDA to remain in the 4x-5x area over the next 12 to 24
months from litigation and modest acquisitions and share
repurchases mostly offsetting EBITDA growth.

"The lower rating primarily reflects expected adjusted net debt to
EBITDA in the 4x to 5x range for at least the next 2-3 years,
versus our prior expectation of 2x to 3x. The combination of the
large size and high implied multiple of the HRA acquisition result
in significantly higher adjusted leverage than our previous
expectations. It exceeds the $1.4 billion ($1.5 billion minus $100
million of taxes) proceeds of Perrigo's recent divestiture of its
generic prescription pharmaceuticals business, and has an implied
multiple of about 20x out of the gate, which we view as very high
even considering the expected synergies and growth. However, we
believe HRA's products will fit in well with Perrigo's European
portfolio and will improve Perrigo's market position, increasing
its scale and adding three category-leading products. The
acquisition also enhances Perrigo's small portfolio of branded
self-care products in the U.S. (most of the sales in the U.S. are
private label). We expect Perrigo to integrate HRA's products into
its own platforms over the next 2-3 years, including distribution,
which will likely result in $30 million or more of synergies.

"The company's tax litigation in Ireland and the U.S. will likely
result in several hundred million dollars of liabilities, which
will keep leverage in the 4x to 5x range. Although the ultimate
amount and timing of the outcome is uncertain, the company has
expressed interest in settling, so we expect liabilities in the
hundreds of millions of dollars in the next 1-2 years. Before these
liabilities, we expect annual discretionary cash flow of $75
million to $150 million (after dividends and share repurchases), so
we think a tax settlement will delay deleveraging and may even
require additional borrowing. Still, we continue to believe the
Irish liabilities will be significantly lower than the
approximately $1 billion assessed, and we do not expect them to be
large enough to increase leverage above 5x."

Perrigo's approximately $400 million award from arbitration related
to its acquisition of Omega Pharma NV could offset a portion of the
tax liabilities, but the timing for collection of the award is
uncertain.

S&P said, "The company's strong market position and product
diversification in its consumer products segments largely offset
the persistent pricing pressure on mature products. We project
Perrigo's self-care business will generate organic growth of 3%,
after a recent bout of sluggish growth. The company has a strong
market share in U.S. store-brand over-the-counter (OTC)
pharmaceuticals and has reinvigorated its promotion-sensitive
products in Europe and other international markets. Even after the
divestiture of GRx, the company has substantial geographic,
product, and therapeutic diversification. Preventative measures
related to the COVID-19 pandemic have reduced global demand for
Perrigo's cough and cold products (normally between 10%-20% of
revenue), but we view this as temporary.

"We are revising our view of the company's management and
governance to reflect recent shifts in strategyThe company recently
reversed its public commitment to maintaining metrics consistent
with an investment-grade rating and completed the protracted sale
of its generic pharmaceutical business. In addition, the company's
tolerance for tight liquidity has increased. The company also
required a waiver of its debt covenants at the end of the second
quarter of 2021, amended its covenants, and we expect the company
to require an incremental covenant amendment to remain in
compliance. As a result, we revised our management and governance
score to fair from satisfactory.

"Our stable outlook reflects our expectation for adjusted net debt
to EBITDA in the 4x to 5x range over the next 12 months.

"We could consider a higher rating if we believe Perrigo will
sustain adjusted debt to EBITDA in the 3x to 4x range inclusive of
its acquisition strategy and pending litigation. We believe this is
unlikely over the next 12 months because we do not expect
significant cash flow available to repay debt.

"We could consider a lower rating if we expect sustained adjusted
debt to EBITDA to approach 5x. We think a larger-than-expected
litigation liability or acquisition are the most likely drivers of
higher-than-expected leverage.

"We could also consider a lower rating at the current leverage
levels if we think Perrigo will not be able to grow revenue and
EBITDA organically, likely from underperformance of acquisitions
and intense competition, especially in Europe. In this scenario, we
would view Perrigo's competitive position is weakening."




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

ALITALIA: EU Commission Clears Injection of Gov't Funds Into ITA
----------------------------------------------------------------
Lorne Cook at The Associated Press reports that the European
Union's competition watchdog on Sept. 10 cleared an injection of
Italian government funds into new national flag carrier ITA, and
said the company would not be held accountable for illegal state
aid given to its predecessor Alitalia.

Just a month before ITA takes to the skies, the European Commission
-- which polices anti-trust and competition issues in the 27-nation
EU -- said capital totaling EUR1.35 billion (US$1.6 billion) that
Italy intends to grant the new venture is in line with market
conditions and cannot be considered as illegal state aid, the AP
relates.

According to the AP, the commission said ITA will operate less than
half of the aircraft now run by Alitalia -- which has been in the
red for more than a decade -- and only parts of its handling and
maintenance businesses.  ITA will also drop its predecessor's
loss-making routes, the AP discloses.

At the same time, Brussels ordered the Italian government to
recover EUR900 million (US$1.01 billion) from Alitalia, saying that
a probe concluded that the money constitutes illegal state aid, the
AP notes.  But it's unlikely that all the money, which is supposed
to come from the sale of company assets, will ever be recovered,
the AP states.

Alitalia has been in deep financial trouble since 2008. The airline
was in desperate need of funds in 2017 but had lost its access to
credit markets due to its woes, the AP recounts.  To keep it
afloat, the Italian government stepped in, providing two loans of
EUR600 million and EUR300 million, according to the AP.

At the same time, the carrier entered special bankruptcy
proceedings, the AP states. The following year, the commission
opened a probe into the government loans, the AP relays.

"The two loans gave Alitalia an unfair advantage over its
competitors on national, European and world routes.  Hence, they
constitute illegal state aid, and must now be recovered by Italy
from Alitalia," the AP quotes commission Executive Vice-President
Margrethe Vestager as saying in a statement.

But the question is moot, given that Alitalia is exiting the market
anyway, the AP says.

Italy's Economy Ministry announced in July that a new airline to
replace Alitalia would launch on Oct. 15, the AP recounts.
Alitalia's last flights are expected to operate up until then, the
AP notes.  The ministry said the new carrier would be ITA, which
stands for Italia Trasporto Aereo, or Italy Air Transport,
according to the AP.

With the first ITA flights just weeks away, the Italian government
is still trying to reach an agreement with Alitalia unions whose
members risk losing their jobs, the AP relates.

Under EU rules, the slimmed down new airline can only hire a
fraction of the bloated Alitalia workforce, the AP notes.  

Alitalia has some 10,000 employees, the AP discloses.  The new
company may take on some of the staff, who in recent years staged
strikes to demand more attention to the airline's future, according
to the AP.  In recent months, they also faced uncertainty over
getting paid on time, the AP states.


SIENA PMI 2016: Fitch Ups Class D Tranche Rating to 'B-'
--------------------------------------------------------
Fitch Ratings has upgraded two tranches of Siena PMI 2016 Series 2
S.r.l. and affirmed two.

    DEBT                RATING            PRIOR
    ----                ------            -----
Siena PMI 2016 S.r.l - Series 2

A2 IT0005372955    LT  AA-sf  Affirmed    AA-sf
B IT0005372963     LT  AA-sf  Affirmed    AA-sf
C IT0005372971     LT  A-sf   Upgrade     BB+sf
D IT0005372989     LT  B-sf   Upgrade     CCCsf

TRANSACTION SUMMARY

The transaction is a static cash flow securitisation of secured and
unsecured loans granted to Italian small-and medium-sized
businesses (SMEs). The underlying loans were originated by Banca
Monte dei Paschi di Siena S.p.A. (B/Rating Watch Negative/B).

KEY RATING DRIVERS

Significant Deleveraging: The upgrade and Stable Outlooks on the
class C and D notes reflect the increase in credit enhancement (CE)
ratios and deleveraging. CE for the class C and D notes increased
by about 13% and 5% since August 2020, respectively, and have
doubled since the transaction closed (in June 2019). The pool
factor has decreased to 46% from 68% since August 2020. Fitch
considers the available CE compensates for the potential additional
portfolio losses related to loans exiting the moratoria period in
July 2021, which could emerge late in 2021.

Improved Macro-economic Landscape: Macroeconomic uncertainties have
reduced since Fitch's last review and are reflected in the revised
GDP and unemployment rate forecasts for 2021, which also take into
account the vaccination roll-out in Italy. This compares positively
with 2020, when Fitch implemented additional stress scenario
analysis with the expectation that the pandemic would cause severe
recessions in Europe, with a significant increase in unemployment
and resultant loan underperformance.

Fitch now expects this deterioration to be less significant and
believe that the stress included in the assumptions is sufficient
to account for the remaining uncertainty. This is supported by
improved macroeconomic forecasts and by the limited performance
deterioration observed so far.

Extended Payment Holiday: As at June 2021, about 30% of the
securitised pool was still suspended, in line with the August 2020
data. In June 2021, the government further extended its payment
holiday scheme to December 2021 from June 2021. According to the
most recent decree, payment holidays can only apply for principal,
different from the previous framework when the interest component
could also be suspended at the borrower's discretion. Following the
implementation of this new scheme, the share of loans under
moratoria as of August 2021 dropped to about 12%. This mainly
relates to borrowers that benefit from the extension of the scheme
until end-2021.

Fitch understands that the application deadline for the new scheme
has expired and therefore does not expect new payment holidays
under this scheme, unless it is further renewed. The percentage of
loans on payment holidays in the transaction pool can only increase
as a result of the fast amortisation of the portfolio, particularly
of loans that are not in moratoria. However, Fitch notes that the
share of moratoria in the transaction remains higher than the
Italian market and therefore as envisaged in its SME CDO Rating
Criteria, has deviated from the model-implied rating for the class
C notes by three notches.

Loan Book Performance: The updated default frequencies provided by
the originator as of end-2020 showed improving loan book
performance. However, Fitch has maintained the bank benchmark at
5.5%, as macroeconomic conditions will take time to return to
pre-pandemic levels. The default rate expectation increased to
16.9% from 15.7% at the previous review, mainly reflecting the
increased portfolio weighted average life.

SME Loan Recovery Rates: When analysing the collateral available to
the securitised loans, Fitch gave credit only to real estate
collateral with a first-lien mortgage (38.5% of the portfolio from
30% as of last review). Fitch treated loans with no real estate
collateral, and loans secured by second or higher lien as
unsecured. This leads to a recovery rate expectation of 63.5%, up
from 58.0%.

Granular and Diversified Portfolio: The pool is amortising and
broadly maintaining its granularity. The largest obligor accounts
for 0.70% (up from 0.55% as of last review) of the pool balance,
and the largest 10 account for 4.6% (up from 3.9%). The impact of
obligor concentration is taken into consideration in the Portfolio
Credit Model derived rating default rate levels. Industry
concentration is also limited, with the largest sector (real
estate) accounting for less than 30% of the outstanding pool.

RATING SENSITIVITIES

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

-- Fitch carried out a sensitivity analysis (assuming an increase
    of 25% to default rates) on the current portfolio to address
    potential short-term performance deterioration linked to loans
    that recently exited the moratoria period. Fitch notes that
    the class B and C notes' CE may be sufficient to compensate
    for additional projected losses on the portfolio and could
    face greater liquidity risk and result in delayed structural
    protections designed for more senior bonds (cumulative default
    triggers that can postpone interest payments on the mezzanine
    tranches). Fitch also notes that the asset assumptions already
    embedded a wide cushion compared with the current actual
    portfolio performance.

-- A downgrade of the Italian sovereign Long-Term Issuer Default
    Rating (IDR) could reduce the maximum achievable rating for
    Italian structured finance transactions.

-- A longer-than-expected recessionary period that weakens
    macroeconomic fundamentals beyond Fitch's current base case as
    long as CE cannot fully compensates the credit losses and
    cash-flow stresses associated with the current rating
    scenarios, all else being equal.

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

-- An upgrade of the Italian sovereign Long-Term IDR could
    increase the maximum achievable rating for Italian structured
    finance transactions.

-- If the transaction deleverages more quickly than the
    performance deterioration expected in the near future, CE
    ratios for the mezzanine tranches could offset credit losses
    and cash-flow stresses associated with the current and higher
    rating scenarios, all else being equal.

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

Siena PMI 2016 S.r.l - Series 2

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.

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

Prior to the transaction closing, Fitch reviewed the results of a
third party assessment conducted on the asset portfolio information
and concluded that there were no findings that affected the rating
analysis.

Prior to the transaction closing, Fitch conducted a review of a
small targeted sample of the originator's origination files and
found the information contained in the reviewed files to be
adequately consistent with the originator's policies and practices
and the other information provided to the agency about the asset
portfolio.

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.

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.



=============
M O L D O V A
=============

ARAGVI FINANCE: Fitch Affirms B Rating on USD50MM Tap Issue
-----------------------------------------------------------
Fitch Ratings has affirmed Aragvi Finance International DAC's
long-term senior secured debt rating at 'B' with a Recovery Rating
of 'RR4' on completion of a USD50 million tap. Aragvi Finance
International DAC is a 100% subsidiary of Aragvi Holding
International Limited (Trans-Oil; B/Stable).

The incremental USD50 million debt will be used to fund working
capital and will lead to lower utilisation of the commodities
trader's pre-export finance (PXF) facility.

The 'B' Issuer Default Ratings (IDRs) of Trans-Oil reflect its
small scale in the global agricultural commodity processing and
trading market. The ratings also incorporate Fitch's expectation of
moderate leverage despite a larger debt quantum in connection with
the acquisition of Serbian Victoria Oil and the 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.

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 financial year to end-June 2020
(FY20) total, 43% in 1HFY21 and Fitch estimates an even higher
contribution for FY21. This helped Trans-Oil to grow its EBITDA in
FY21, despite harvest in Moldova being 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: Based on preliminary figures, Trans-Oil's revenue
increased 68% in FY21 after growing 48% in FY20. Improved liquidity
after a debut Eurobond placement in 2019 enabled the company to
finance the purchase of greater volumes 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 the USD50 million tap 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. Its EBITDA of
USD94 million in FY20 was around 5x lower than Ukrainian peer
Kernel Holding S.A.'s (BB-/ Stable).

Expansion into Serbia: Trans-Oil consolidated Serbian bottled
sunflower oil producer Victoria Oil in June 2021, which was
acquired by its shareholders in December 2020. The acquisition was
cashless but Trans-Oil consolidated 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 company's
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.

Higher EBITDA Balances Debt Increase: Fitch estimates that high
agricultural commodity prices and significant growth in origination
outside Moldova has led to an increase in Trans-Oil's EBITDA in
FY21. Fitch expects this to offset the increase in debt from both
the enlarged Eurobond placement and consolidation of Victoria Oil.
Fitch calculates that the net effect is a mild increase in readily
marketable inventories (RMI)-adjusted funds from operations (FFO)
net leverage to 3.5x in FY21 (FY20: 3.3x). Additional investments
in inventory and potential normalisation of commodity prices may
lead to higher leverage in FY22-FY23 but Fitch expects Trans-Oil to
retain sufficient headroom under its 'B' rating.

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.

Limited 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
greater 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 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
their 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

-- Increasing sunflower seeds crushing volumes over FY22-FY24,
    due to construction of a high-oleic and organic seed-crushing
    plant with capacity coming onstream in FY22, the successful
    integration of Victoria Oil in FY22, 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 9%-10% 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 volumes traded;

-- No dividends.

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 accounted for
approximately 81% and 85% of Trans-Oil's EBITDA and assets,
respectively, in FY20.

Fitch has applied a liquidation value approach as it results in a
higher return for 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
enlarged USD500 million senior secured Eurobond, indicating a 'B'
rating. The waterfall analysis output percentage on current metrics
and assumptions is 37%, down from 40%, following the tap issue.

RATING SENSITIVITIES

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

Positive rating action is currently not envisaged. Nevertheless,
factors that Fitch would consider 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; and

-- RMI-adjusted FFO net leverage above 4.5x and RMI-adjusted FFO
    interest coverage 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.

Fitch believes that refinancing risks are manageable due to
projected moderate leverage and Trans-Oil's good record of renewing
the company's 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).

ESG CONSIDERATIONS

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



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

LC EUROPLAN PJSC: Fitch Affirms Then Withdraws 'BB' IDR
-------------------------------------------------------
Fitch Ratings has affirmed PJSC LC Europlan's Long-Term Issuer
Default Rating (IDR) at 'BB' with a Positive Outlook and
subsequently withdrawn all ratings.

Europlan is a monoline autoleasing company and a leader in its
niche. It has a nationwide sales network and a market share in
autoleasing of 13%. The company focuses on financial leasing,
predominantly to SMEs.

Fitch has chosen to withdraw Europlan's ratings for commercial
reasons. Fitch will no longer provide ratings or analytical
coverage of the company.

KEY RATING DRIVERS

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

Europlan continued strong growth in 2H20 and 1H21, while
maintaining solid financial performance and risk controls. This was
supported by a stabilisation of the operating environment. However,
a reversal of this trend could put pressure on the company's asset
quality and constrain growth and profitability.

Europlan's historically strong asset quality proved resilient in
2020-1H21. Due to rapid growth in 2H20-1H21, a sizable portion of
the lease book has yet to season, although this risk is mitigated
by monthly repayment and low loan-to-value (LTV) on core lease
products. Fitch therefore expects that the company will control
credit costs in the medium term.

Very strong profitability was maintained in 2020-1H21 (with a
return on average assets around 7%) and across the economic cycle
(6% on average in 2015-2020). Fitch expects profitability to
moderate, largely due to ongoing margin compression. However, solid
growth in commission income in recent years has underpinned
Europlan's profitability and contributes towards revenue
diversification.

While Europlan's growth put pressure on leverage, this is mitigated
by historically healthy internal capital generation and a balanced
dividend pay-out ratio. Leverage (defined as gross debt-to-tangible
equity) increased to 4.9x at end-1H21 from 4.4x at end-2020 due to
a RUB1.2 billion dividend payment and 25% growth of the lease book.
Fitch expects growth to moderate and the company's leverage to
stabilise at around 4.5x, in line with management's target.

Funding is wholesale, predominantly by Russian banks, while local
bonds contributed 31% of end-1H21 borrowings. Refinancing risk is
limited, mitigated by a record of continued market access,
including in stressed environments, and by the short tenor of the
lease book, which largely matches Europlan's funding maturities. A
debt amortisation schedule with no significant quarterly spikes
matches the company's asset duration.

RATING SENSITIVITIES

Rating sensitivities are no longer relevant given the rating
withdrawal.

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

Following the withdrawal of ratings for Europlan, Fitch will no
longer be providing the associated ESG Relevance Scores.



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

IBERCAJA SA: Fitch Affirms 'BB+' LT IDR, Alters Outlook  to Pos.
----------------------------------------------------------------
Fitch Ratings has revised Ibercaja S.A.'s Outlook to Positive from
Negative, while affirming the bank's Long-Term Issuer Default
Ratings (IDRs) at 'BB+' and Viability Rating (VR) at 'bb+'.

The Outlook revision reflects Fitch's views that Ibercaja's
improved capital levels and progress in asset- quality clean-up and
cost restructuring will likely strengthen the bank's credit profile
to investment- grade level, despite expected pressure from the
pandemic in 2021 and 2022. The Outlook revision also reflects
Fitch's expectation that Ibercaja should be able to deliver on its
strategic plans despite residual short-term risks to Spain's
improved economic prospects.

Fitch expects Spain's GDP to grow 6% in 2021, after the economy
suffered more than other developed economies from the pandemic in
2020. However, Fitch believes that risks to the Spanish economy
from the pandemic have not yet subsided sufficiently to stabilise
the operating environment score of 'bbb+'. The main short-term risk
to Fitch's projections is that a rise in coronavirus infections
could result in renewed restrictions, albeit of a softer nature but
potentially affecting business activity, or in a
weaker-than-expected performance of the summer tourism season. A
further risk is the impact of the pandemic on the labour market
once state-support measures expire, in particular the furlough
scheme.

KEY RATING DRIVERS

IDRS AND VR

Ibercaja's ratings reflect improved capital levels, which are now
more in line with peers', stable funding mainly based on a stable
customer deposits base, and accelerated de-risking in the past few
years. Profitability is a rating weakness, despite a more
diversified revenue profile than most of its peers', although Fitch
expects this to improve in 2021-2023.

Ibercaja has continued improving its asset quality in 2020-1H21,
reducing its problem asset ratio (which includes impaired loans and
net foreclosed assets) to 3.8% at end-June 2021 from 8% at
end-2018. Fitch expects some asset-quality deterioration in
2H21-2022, although the bank's large proportion of retail mortgage
loans and strengthened impaired loans coverage ratio (68% at
end-June 2021) provides protection in the current environment.
Asset-quality performance has been better than expected to date,
also benefiting from borrower-support measures.

The bank's operating profitability has been affected in recent
years by low interest rates, meaningful restructuring costs, loan
impairment charges (LICs) and provisions related to the
acceleration of its asset-quality clean-up, resulting in a low
operating profitability by Spanish and international standards.
Ibercaja, however, benefits from a meaningful insurance and
asset-management business that provides some revenue
diversification and resilience and potential for growth as the
economic recovery gathers pace.

Our assessment assumes that operating profit to risk-weighted
assets (RWAs) will improve to levels close to 1.5% in 2021-2022
(from 0.4% in 2020, including restructuring costs), due to
increased economic activity, lower LICs and cost reduction, which
supports the positive outlook on the earnings and profitability
score of 'bb'.

Ibercaja's capitalisation is maintained with satisfactory buffers
over regulatory minimum requirements, with the regulatory Common
Equity Tier 1 (CET1) ratio at 13.5% at end-June 2021 (12.7% on a
fully loaded basis). The improvement in the bank's capitalisation
and asset-quality coverage has materially reduced Ibercaja's
capital encumbrance from unreserved problem assets (23% of end-June
2021 fully loaded CET1 capital). The positive outlook on the
capitalisation score of 'bb+' reflects Fitch's expectation that the
bank will maintain a fully loaded CET1 at about 12.5%, while
significantly improving its internal capital generation on improved
earnings generation.

The bank's main funding source is a stable and granular retail
deposit base that fully funds the loan book. Wholesale funding is
mostly in the form of covered bonds and ECB funding, which has
further strengthened the bank's ample liquidity.

SUPPORT RATING AND SUPPORT RATING FLOOR

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

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

Ibercaja's Tier 2 subordinated debt is rated two notches below the
bank's VR to reflect the notes' poor recovery prospects arising
from subordination in case the bank becomes non-viable.

The rating of the bank's additional Tier 1 notes is four notches
below Ibercaja's VR, in accordance with Fitch's criteria for rating
hybrid instruments. This notching comprises two notches for loss
severity in light of the notes' deep subordination, and two notches
for additional non-performance risk relative to the VR, given fully
discretionary coupon payments.

RATING SENSITIVITIES

IDRs AND VR

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

-- An improvement in Ibercaja's operating profitability to about
    1.5% of RWAs and four-year average problem asset ratio towards
    below 4% on a sustained basis, while maintaining a fully
    loaded CET1 ratio in line with its target of 12.5%, could
    support an upgrade. A stronger-than-expected economic recovery
    in Spain could also be rating-positive.

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

-- The Outlook could be revised to Stable if the bank does not
    deliver the planned improvement in operating profitability or
    the inflows of new impaired loans are higher than Fitch
    currently expects.

-- Triggers for a downgrade would be structural deterioration in
    profitability as a result of more permanently subdued business
    activity or larger-than-expected credit losses, resulting in a
    decline in the bank's fully loaded CET1 ratio to below the
    current levels with no prospect to restore it in the near to
    medium term. Material changes in risk appetite or management
    of market risks could also be rating- negative.

SUPPORT RATING AND SUPPORT RATING FLOOR

An upgrade of the SR and upward revision of the SRF would be
contingent on a positive change in the sovereign's propensity to
support Ibercaja. While not impossible, this is highly unlikely, in
Fitch's view.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

The ratings of the subordinated and AT1 notes are primarily
sensitive to changes in Ibercaja's VR. The ratings are also
sensitive to a change in notching should Fitch change its
assessment of loss severity or relative non-performance risk.

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.

MADRILENA RED: Fitch Affirms Then Withdraws 'BB+' IDR
-----------------------------------------------------
Fitch Ratings has affirmed Spain-based Madrilena Red de Gas S.A.U.
(MRG) Long-Term Issuer Default Ratings (IDR) at 'BB+' with Stable
Outlook and senior unsecured rating at 'BBB-'. The ratings have
simultaneously been withdrawn.

The affirmation reflects Fitch's view of regulatory stability until
2026 with a less punitive remuneration haircut than initially
expected. It also factors in MRG's enlarged capex plan and
flexibility on dividend distributions to protect credit metrics.
Fitch projects an average funds from operations (FFO) net leverage
of 7.5x for 2021-2026, which is consistent with a 'BB+' rating.

The ratings and Stable Outlook reflect the low business risk of MRG
as the owner and operator of the third-largest gas distribution
network in Spain, which benefits from a fairly supportive
regulatory framework. It also considers high leverage, an
aggressive dividend policy, as well as efficient capital and
operating costs.

The ratings have been withdrawn for commercial reasons. Fitch will
no longer provide ratings or analytical coverage of MRG.

KEY RATING DRIVERS

Final Revenue Adjustment: The National Commission of Markets and
Competition has set the final remuneration haircut for MRG at
EUR24.5 million by 2026, below the preliminary EUR34 million used
in Fitch's previous Fitch case. This considerably reduces the
impact on revenue with a total reduction of EUR90 million for
2021-2026 versus the EUR125 million previously expected. The final
haircut, equivalent to around 17% of its 2021 base remuneration, is
consistent with the outcome of other peers. The final resolution
provides regulatory certainty and cash flow visibility for the next
six years, although some risks remain over the long term of harsher
regulatory scrutiny and limited growth prospects for the sector.

Higher Capex: MRG's updated capex for 2021-2026 is EUR96 million
(EUR16 million/year), of which EUR52 million (EUR9 million/year)
relates mainly to investments for organic growth in gas-connection
points. The remainder is maintenance and IT investments. Fitch does
not expect these initiatives to fully compensate the revenue
decline but to smooth the final impact. Fitch forecasts EBITDA to
decline 12% by 2026 from 2020 levels versus a 25% drop in Fitch's
previous Fitch case.

Non-Regulated Activities Growth: MRG's shareholders are targeting
additional growth in relevant sectors adjacent to core activities,
related to the installation of natural gas vehicles (NGV) stations
and energy solutions (ie use of gas central boilers) that are
developed under MRG's sister company, Aliara Energia. These sectors
play a role in energy transition and provide synergies for MRG's
core activities. Fitch expects growth in the non-regulated business
to be executed largely through Aliara, and for MRG's revenue
profile to remain largely regulated through to 2026.

Independent Operations: Fitch does not include additional revenues
and capex related to Aliara in MRG's projections, as Aliara
operates independently and is outside MRG's ringfenced scope.
Aliara's debt is negligible, which is essentially financing of gas
boilers for customers. Fitch does not expect MRG's cash flows to be
used to finance Aliara's activity.

Stable Financial Policy: Following a one-notch downgrade in 2020
driven by a higher leverage tolerance, MRG shareholders have
confirmed their commitment to keep credit metrics at a level
consistent with its current ratings. Fitch therefore expects MRG to
make distributions based on capex expectations and credit-rating
considerations. Fitch projects MRG to maintain an average FFO net
leverage of 7.5x for 2021-2026, within the limits for a 'BB+' IDR.

Uplift to Senior Unsecured Debt Rating: Under Fitch's methodology,
Fitch applies a one-notch uplift to the senior unsecured rating
from the Long-Term IDR when there is a large share of regulated
network earnings, which is the case for MRG, to reflect Fitch's
expectations of above-average recoveries. Therefore, MRG' Finance
BV's instruments are rated 'BBB-'.

DERIVATION SUMMARY

MRG has a solid business profile comparable with that of Spanish
gas distributor Redexis Gas, S.A., but has no exposure to regional
transmission, and is concentrated in the Madrid region. MRG is
rated lower than the Italian distribution system operator Italgas
S.p.A. (BBB+/Stable), due to the long record of a fully independent
regulator in Italy and Italgas's much larger size, which creates
more room for efficiencies.

E-netz Suedhessen AG, (formerly ENTEGA Netz; BBB+/Stable), a small
gas and electricity German distribution systems operator, compares
favourably with MRG, notwithstanding its smaller size. The rating
differential is mainly due to E-netz's lower leverage (around 3.0x
difference in FFO net leverage), while debt capacity for both
companies is similar. Another peer is the Slovak gas player SPP
-distribucia, a.s. (SPPD; A-/Stable). SPPD's IDR is constrained by
parent-and-subsidiary linkage considerations. Its Standalone Credit
Profile (SCP) is assessed at 'a', due to a conservative capital
structure. Its FFO adjusted net leverage is under 3.0x.

KEY ASSUMPTIONS

-- Revenue in 2021 based on the final methodology approved in
    circular 4/2020 published in the Official Spanish Gazette
    (BOE) (3 April 2020);

-- Final remuneration adjustment of EUR24 million for 2021-2026
    published in BOE (28 December 2020);

-- Expected average annual EBITDA of about EUR130 million in
    2021-2024;

-- Growth in gas natural distribution supply points of about 0.3%
    a year until 2024;

-- Demand to grow on average 2.6% for 2020-2024 (6.7% in 2021);

-- Average annual capex of around EUR15 million in 2021-2024; and

-- Free cash flow (FCF) net of both debt drawdowns and
    acquisitions (cash available after debt service as per MRG's
    reporting) distributed to shareholders, but within the limit
    of Fitch's negative leverage sensitivity for a 'BB+' IDR.

RATING SENSITIVITIES

Not applicable

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: As of end-2020, MRG had cash and cash
equivalents of around EUR47million and undrawn revolving credit
facilities (RCF) totalling EUR75 million maturing in April 2022
(reduced from EUR200 million in March 2020) and no meaningful debt
maturities until December 2023. The RCFs are available for
operating purposes, while cash generated after debt service is
fully dedicated to dividend distribution.

ISSUER PROFILE

MRG owns and operates the third-largest gas distribution grid in
Spain, and is responsible for the development, ownership,
maintenance and operation of its regulated distribution network
across 61 municipalities (as at end-2020). MRG is a pure unbundled
regulated grid company and does not engage in gas trading or
supply.

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
===========================

CONVATEC GROUP: Moody's Ups CFR to Ba2 & Alters Outlook to Stable
-----------------------------------------------------------------
Moody's Investors Service has upgraded the corporate family rating
of UK chronic care products provider Convatec Group PLC to Ba2 from
Ba3 and its probability of default rating to Ba2-PD from Ba3-PD.
Concurrently, Moody's has changed ConvaTec's outlook to stable from
positive.

The rating action primarily reflects:

Material progress in ConvaTec's transformation and its track
record of improved sales execution

Moody's expectation that the company's EBITDA will sustain a
return to growth, which will speed up deleveraging, alongside
amortising debt

The company's solid and consistent cash flow generation

RATINGS RATIONALE

Since 2019, ConvaTec has been implementing a far-reaching business
transformation which has enabled it to improve its sales execution
and bring its organic revenue growth in line with market levels.
While this programme has not yielded consistent improvements in
EBITDA so far, earnings have been stable despite material costs in
undertaking the transformation (which are expensed in ConvaTec's
and Moody's EBITDA calculations). At the same time, the company
continues to generate healthy cash flow allowing it to address its
debt amortisation schedule. The rating agency forecasts that a
combination of debt repayments and a return to EBITDA growth in
2022 will accelerate deleveraging and boost ConvaTec's credit
profile, while it is also supported by relatively prudent financial
policies.

In the last two years, ConvaTec has reported organic revenue growth
at or above 4%, in line with its markets. This performance is
testament to the company's improved sales execution following the
reorganisation and expansion of its sales teams. However,
differences remain across the company's business units. In addition
to some underperformance historically, the Advanced Wound Care
franchise has faced volume declines during the pandemic on the back
of reductions in surgical procedures but its bounce back in the
first half of 2021 has been ahead of the market. Ostomy Care has
long been challenged in the US following manufacturing issues and
market share recovery is difficult given the recurring nature of
revenues in this segment but other geographies are performing well
while the company is simplifying its product portfolio. Continence
and critical care has likely been the most consistent performer,
also benefitting from increased demand for critical care products
in the pandemic. Lastly, Infusion Care has grown strongly in 2020
and 2021 thanks to some weak comparables and a growth acceleration
in infusion sets for smart glycemic control, where ConvaTec is a
leader.

Alongside commercial excellence, the company's transformation has
also focused on simplifying its organisation through supply chain
improvements, lean manufacturing, and a global business service
centre. Between 2019 and June 2021, ConvaTec incurred $113 million
in non-recurring transformation costs and has ramped up recurring
investments. They have weighed on its EBITDA but have allowed the
company to start catching up in R&D investment, where it has been
lagging peers historically. ConvaTec has already realised more than
$100 million of gross benefits compared to its target of $130
million - $150 million by the end of 2021. While Moody's expects
broadly stable EBITDA this year, the company will have
substantially completed its transformation therefore non-recurring
costs will start to decrease from 2022. After factoring in savings
yet to be realised and against a higher cost base in 2021 versus
2020, the rating agency projects EBITDA growth in the high
single-digit percentages in 2022, generating margin improvement
too. However, ConvaTec's margins generally remain below peers' by
several percentage points.

ConvaTec's forecast return to EBITDA growth will spur deleveraging
below 3.0x in 2022 on a Moody's adjusted basis, helped by increased
mandatory debt amortisation of $150 million next year. This
compares to projected Moody's adjusted gross debt/EBITDA of just
below 3.5x in 2021 and $90 million of debt repayments.

The company's credit profile is also supported by its track record
of consistent free cash flow (FCF) generation of around $200
million annually (cash flow from operations after capex, dividends
and interest). ConvaTec is increasing capital investment, however,
and projected revenue growth should lead to consistent working
capital outflows as well as sustained increases in dividend
payments. As a result, Moody's forecasts a modest reduction in
annual FCF to a range of $150 million - $200 million from 2022
following a likely dip to below $150 million this year.

Governance considerations most relevant to ConvaTec include
financial policies and risk management as well as management
credibility and track record. The rating agency believes that the
group's policies in terms of (i) leverage (management-adjusted net
leverage at or below 2.0x); (ii) shareholder remuneration (dividend
payout ratio of 35% - 45% of management-adjusted net income, of
which up to 30% is typically paid in scrips); and (iii)
acquisitions are relatively prudent and consistent with an upgrade
to Ba2. While the company's track record still lacks consistent
EBITDA growth, the current management team is contributing to
improvements in the company's credibility. Moody's assessment of
ConvaTec's governance also takes into account the reduction in
execution risks attached to the transformation plan which is
nearing substantial completion.

Social risks that Moody's considers in ConvaTec's credit profile
principally relate to demographic and societal trends as well as
responsible production. The group faces the risk of downward price
pressure, which are more prevalent in the more commoditised and
competitive parts of ConvaTec's portfolio. ConvaTec is also exposed
to reputational damage, additional costs and the risk of customer
loss associated with product recalls, safety and manufacturing
compliance issues and litigation. Some of these risks have
materialised in the past for ConvaTec and have been addressed with
a good degree of success.

LIQUIDITY

ConvaTec has good liquidity. It is supported by a cash balance of
$501 million as of June 30, 2021, forecast cash flow from operating
activities of around $320 million in 2021 (before capex and
dividends) and full availability under the company's $200 million
equivalent revolving credit facility (RCF). The rating agency
anticipates that headroom under the two maintenance covenants (net
leverage and interest cover) on the term loans and RCF will be
sufficient at all times. ConvaTec does not face any significant
debt maturities in the next 12-18 months but has mandatory debt
amortisation on its term loan A and will repay $90 million and $150
million in the fourth quarters of 2021 and 2022 respectively.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectation that ConvaTec will
generate sustained organic revenue growth broadly in line with its
markets, with EBITDA growing at least at the level of revenue from
2022. The outlook further assumes that the company will maintain
good liquidity and will not pursue debt-funded acquisitions or
increase its dividend payout ratio.

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

ConvaTec's ratings could experience positive pressure should (1)
the group record consistent organic growth in revenue and EBITDA
across its business lines, combined with a material improvement in
its Moody's adjusted EBITDA margin to at least 25%, and (2)
Moody's-adjusted gross debt/EBITDA sustainably decrease below 2.5x.
Maintenance of solid cash generation and prudent financial policies
would also be a pre-requisite to any positive rating action.

Conversely, ConvaTec's ratings could come under downward pressure
if (1) operating performance deteriorated, or (2) Moody's adjusted
gross debt/EBITDA was sustained materially above 3.5x, or (3)
FCF/debt fell sustainably below 10%, or (4) the group adopted a
more aggressive financial policy including breaches of its leverage
policy (management-adjusted net leverage at or below 2.0x),
debt-funded acquisitions or dividend payout ratio increases.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Convatec Group PLC, headquartered in Reading, UK and listed on the
London Stock Exchange, is a global medical products provider
focused on therapies for the management of chronic conditions. The
company offers products in the areas of advanced wound care, ostomy
care, continence and critical care and infusion care. In the twelve
months ended June 2021, ConvaTec reported revenue of $2.0 billion
and EBITDA of $475 million. As of September 7, 2021, ConvaTec had a
market capitalisation of GBP4.5 billion.

DUNNE GROUP: Boss Faces Charges of "Financial Irregularities"
-------------------------------------------------------------
Gordon Blackstock at Daily Record reports that a man linked to a
hospital ­construction scandal is facing charges of "financial
irregularities" in connection with one of his companies.

According to Daily Record, Gordon Dunne's firm the Dunne Group was
given a GBP4 million injection to stay afloat while it carried out
ground work on -- Edinburgh Sick Kids hospital.

But the firm went bust months later, triggering ­construction
delays, Daily Record recounts.

Dunne and wife Johanna have now been charged by police and a report
sent to the Crown Office (COPFS) in relation to DWS, Building and
Civil Engineering -- a firm he was linked to after Dunne Group
crashed into administration, Daily Record discloses.

Mr. Dunne, 54, from Falkirk, has been a director of four dissolved
firms, three of which were liquidated, and five companies that went
into administration, Daily Record notes.


HERITAGE HOTELS: Couple Buys Langdon Court Hotel After Closure
--------------------------------------------------------------
William Telford at BusinessLive reports that Plymouth's Grade II*
listed Langdon Court hotel has been bought by Britain's "jean
queen" fashion designer and her well-connected restaurateur husband
and is set to be reopened as a "top level" venue.

According to BusinessLive, Donna Ida Thornton, founder of London's
Donna Ida fashion brand, and her spouse Robert Walton have
purchased the 16th Century Jacobean manor, which has been closed
for 18 months after the previous owner went into administration.

The purchase price of Langdon Court, in Wembury, has not been
revealed, but it was put on sale in 2020 with a guide price of
GBP1.85 million, BusinessLive notes.  It will now need investment
to "restore and revive" the building and business but the purchase
is expected to secure its future, BusinessLive states.

When former owner Heritage Hotels, part of the troubled Carlauren
group of companies, went into administration, in December 2019, it
was hoped that Langdon Court Hotel could continue to operate as a
hotel and wedding venue but that proved not to be the case and the
hotel closed in April 2020 with the cancellation of 27 weddings and
the loss of 20 jobs, BusinessLive relates.

The sale of Langdon Court was handled by South West property
consultancy Vickery Holman, BusinessLive discloses.  Six of the
hotel's rooms had been sold as "care studios" by the previous
owner, but these are understood to no longer exist and the hotel
was sold in its entirety, according to BusinessLive.


LENDY: Administrator Set to Produce Fee Proposal After Court Loss
-----------------------------------------------------------------
Michael Lloyd at Peer2Peer Finance News reports that Lendy
administrator RSM is set to produce a fee proposal that it will
share with the Lendy Action Group (LAG), after losing its court
case against the collapsed peer-to-peer lending platform's
investors.

Last month, the LAG won its case against RSM, with the judge ruling
for model 2 (M2) investors to be given priority in distribution
payments over model 1 (M1) investors, Peer2Peer Finance News
recounts.

M1 investors are defined as creditors, meaning their eventual
payouts will be pooled with other creditors, including the Lendy
directors, while M2 lenders are defined as investors, which means
that they may be able to recover funds directly from the loans that
they helped to fund, Peer2Peer Finance News discloses.

In an investor update, RSM noted the court's ruling that M2 loan
realisations fall outside of the Lendy estate and are held by the
platform solely for the benefit of the M2 investors, Peer2Peer
Finance News relates.

However, it said that the final amount of M2 loan realisations is
not yet certain because the costs which Lendy incurred in
collecting and realising these funds still needs to be agreed,
Peer2Peer Finance News notes.

According to Peer2Peer Finance News, RSM said it is currently
reviewing the current and historic cost structure of the platform
with the Lendy team and advisers in light of the judgement.  As
part of this review, RSM will consider how the costs of M2 loans
will be met in line with the court's direction and with the
interests of Lendy's creditors in mind, Peer2Peer Finance News
discloses.

After completing the analysis, RSM said it intends to produce a fee
proposal which will be shared and discussed with the LAG and the
conflict administrators of Saving Stream Security Holding Limited
(SSHL), a legal entity of Lendy that was responsible for enforcing
security on behalf of lenders under instruction from the platform,
Peer2Peer Finance News relays.

RSM said it is likely it will also consult with the City regulator
and Lendy's creditors committee on the fee proposal, Peer2Peer
Finance News notes.

There are three categories of costs which the fee proposal will
consider: direct costs and expenses of the M2 loans; costs of
realising the M2 loans that cannot be directly attributed to a
particular M2 loan, for example, general staffing costs; and the
costs of the Lendy administration, such as general enforcement and
recovery costs, and investor correspondence, Peer2Peer Finance News
states.

Lendy entered into administration in 2019, with more than GBP160
million outstanding on its loanbook and at least GBP90 million of
those funds in default, Peer2Peer Finance News recounts.  Since
then, the administration costs have passed the GBP3 million mark,
Peer2Peer Finance News notes.


PATISSERIE VALERIE: Ex-Auditor Faces GBP4MM Fine Over Collapse
--------------------------------------------------------------
Mark Kleinman at Sky News reports that the former auditor of
Patisserie Valerie is facing a multimillion pound fine nearly three
years after the cafe chain collapsed in one of Britain's biggest
recent accounting scandals.

Sky News has learnt that Grant Thornton is in advanced discussions
with the Financial Reporting Council (FRC) about a settlement that
could be finalized as soon as this month.

According to Sky News, a source close to the firm said a fine of
approximately GBP4 million had been raised during recent
correspondence with the audit regulator, although the details and
timing were subject to change.

If confirmed, it is likely to be the biggest financial penalty ever
imposed by the FRC on an accountancy firm outside the big four of
Deloitte, EY, KPMG and PricewaterhouseCoopers, Sky News notes.

It was unclear whether any other sanctions would be imposed on
Grant Thornton or any individuals as part of the FRC settlement,
Sky News states.

It was also unclear whether the roughly GBP4 million penalty would
be discounted to take into account the firm's co-operation with the
probe, Sky News discloses.

Patisserie Holdings, the listed parent company of the bakery chain,
plunged into administration in January 2019, several months after
the discovery of "significant and potentially fraudulent accounting
irregularities", Sky News recounts.


TRICORN: Set to Enter Administration Following Cash Woes
--------------------------------------------------------
Sam Metcalf at TheBusinessDesk.com reports that
Worcestershire-based tubing manufacturer Tricorn could be placed
into administration after running out of cash.

The firm announced to the London Stock Exchange on Sept. 13 that
after weeks of speculation, it has extended a notice of intention
to call in administrators, TheBusinessDesk.com relates.

According to TheBusinessDesk.com, Tricorn says it has received
offers for the company and/or its subsidiaries on a going concern
basis -- which may cut the chances of wholesale redundancies.

Tricorn was first put up for sale in July after bosses at the
company admitted that it didn’t have enough cash in the bank to
implement a turnaround plan, TheBusinessDesk.com recounts.

In August trading in shares at the AIM-listed Malvern firm was
suspended, TheBusinessDesk.com discloses.


[*] UK: Government to Phase Out Temporary Insolvency Measures
-------------------------------------------------------------
Business Sale reports that the Insolvency Service has announced
that temporary measures introduced last year to help viable
businesses avoid being forced into unnecessary insolvency during
the COVID-19 pandemic will be phased out from Oct. 1.

The end of the previous legislation will occur alongside the
introduction of new measures to help businesses recover, Business
Sale notes.

The Corporate Insolvency and Governance Act, which came into force
in June 2020, introduced several temporary measures designed to
help businesses through the COVID-19 crisis, Business Sale
recounts.  These included temporary changes to prevent statutory
demands and winding up petitions, as well as the suspension of
wrongful trading provisions, Business Sale states.

During the COVID-19 pandemic, measures such as the Corporate
Insolvency and Governance Act, along with government financial
support, have caused a sharp decline in administrations and
insolvencies, Business Sale relays.  According to one analysis of
government figures, UK corporate insolvencies fell by more than
half in the first half of this year (301), compared to the same
period in 2020 (655), Business Sale discloses.

While such measures have undoubtedly helped many viable businesses
survive the pandemic, they have also led to fears that "zombie"
companies are being kept alive solely by government support,
Business Sale states.  This has prompted forecasts that the
withdrawal of measures such as government-backed financing and
insolvency protection, alongside the debts accrued by businesses
from government loans and rent arrears, could cause a huge wave of
company insolvencies, Business Sale notes.

Indeed, the second quarter of this year saw a 31% increase in
insolvencies compared to Q1, coinciding with the first repayments
being due for the Bounce Back scheme and Coronavirus Business
Interruption Loan Scheme (CBILS), according to Business Sale.

As the government looks to continue to support businesses recover
from the pandemic, it will introduce new temporary protections as
the old measures are phased out, Business Sale discloses.  The new
measures, which will be in place until March 31 2022, are intended
to help smaller companies trade their way to an improved financial
situation by giving them more time before creditors can take
action, Business Sale states.

According to Business Sale, under the new legislation, the current
debt threshold for the issuing of a winding up petition will be
temporarily increased to GBP10,000 or more, protecting businesses
from creditors that insist on repayment of smaller debts.

Secondly, creditors will be required to seek proposals regarding
repayment from debtor businesses, with the business being given 21
days to respond before the creditor can proceed with a winding-up
order, Business Sale notes.

Additionally, the restriction on winding up petitions with regard
to commercial rent will continue, in line with the government's
previous announcement that commercial tenants will continue to
receive protection from eviction up to March 31, 2022, Business
Sale discloses.  This will give the government time to implement a
rent arbitration scheme to deal with the vast commercial rent debts
that have been accrued since the start of the pandemic, Business
Sale states.

Despite these new measures, it seems likely that the phasing out of
the old protections could lead to a potentially significant uptick
in UK company insolvencies over the coming months, according to
Business Sale.



                           *********


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

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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
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